Exhaust Gas Emissions – Impact on Cruise Industry

Press Release
Tuesday, April 24, 2012

New report to analyse potential impact of IMO fuel emission regulations upon cruise ship operators

Limits set out by the Marine Environment Protection Committee will reduce the maximum levels of sulphur in marine fuels to 0.1% and will come in to force in 2015.

This regulation is a positive step towards improving the environmental reputation of the maritime industry.  However it also presents a significant challenge to the cruise industry, which has enjoyed an exceptional rate of growth in recent years.

The costs of low-sulphur fuels are set to rise and it remains to be seen what, if any, market-based mechanisms and incentives will be put into place to encourage emission reductions and soften the economic impact on operators.  Cruise lines now have three years to come up with a technological solution to the dilemma of regulations which will be expensive to adhere to.  Most major cruise lines already use fuel efficiency monitoring systems to maximise their fuel consumption, and unless a similar method of reducing and regulating the emission levels of high-sulphur bunker fuels is discovered cruise lines will be forced to purchase and use more lightweight fuels, causing prices to skyrocket and resulting in massively elevated expenditure.

Cruise lines will be left with little option if a technological miracle is not achieved and will be forced to significantly adjust their business models, perhaps even passing on this reduction in profits to the consumer.

It is of high importance to understand how the industry will respond to these new regulations.  Tony Peisley, an expert cruise industry consultant, has produced a report at the centre of which is an evaluation of the impact of the new low-sulphur fuel requirements on the industry as well as projecting the industry’s plans for the second half of this decade.

Cruising Through the Perfect Storm will be published on May 31st and will feature 300 pages of analysis, including 200 pages of industry statistics.  As well as its focus on the impact of fuel regulations, chapters will include an evaluation of the financial performances of the major cruise companies; a survey of shipyard cruise ship orderbooks; detailed reviews of source markets; comparisons of economic impact studies for cruise industries and destinations; and an overview of global cruise infrastructure developments.  Along with this are three new chapters on: the potential of China; river cruising; and also the implications for the industry in light of the Costa Concordia tragedy.

Copies of the report can be ordered here.

 

Maritime Reporter January 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Tauber Oil Opens West Calcasieu Port Operations

Tauber Oil Company of Houston has become the West Calcasieu Port’s newest tenant.    “Tauber Oil is a service-oriented wholesale energy marketing company with

NewLead Expands Fleet to 10 Vessels

NewLead Holdings Ltd. announced that it recently added five bitumen tanker vessels, expanding its fleet to 10 vessels in less than a year while performing on its

SKF Expands Electric Motor Repair Network

Electric motors are among the highest in reliability incident reports, said SKF Canada, noting that for many companies, electric motor failures lead to a continual

Cruise Ship Trends

GE Powers Diadema Cruise Ship

Fincantieri shipyard to equip in-board propulsion for Carnival and Costa vessels, GE’s Power Conversion business has helped the shipyard successfully deliver the

Carnival, China Merchants Sign MOU

MOU will explore both Port & Destination Development and Ship-Owning joint ventures with the goal of potentially launching China’s first world-class domestic cruise brand.

ms Veendam Rescues Pilot Off Maui Coast, Hawaii

On Sunday, Jan. 25, 2015, at 5:21 p.m. local time while en route to Lahaina, Hawaii, Holland America Line’s ms Veendam answered a request for assistance from

Environmental

US Proposes Allowing Oil, Gas Drilling off Atlantic Coast

The Obama administration on Tuesday proposed allowing for the first time oil and gas exploration in a wide swath of U.S. waters off the Atlantic Coast.   The

NOIA: Draft Offshore Lease Program Both Hits and Misses

National Ocean Industries Association (NOIA) President Randall Luthi issued a statement on the 2017-2022 Draft Proposed OCS Oil and Gas Leasing Program, stating the U.

Marine Power

SKF Expands Electric Motor Repair Network

Electric motors are among the highest in reliability incident reports, said SKF Canada, noting that for many companies, electric motor failures lead to a continual

GE Powers Diadema Cruise Ship

Fincantieri shipyard to equip in-board propulsion for Carnival and Costa vessels, GE’s Power Conversion business has helped the shipyard successfully deliver the

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1969 sec (5 req/sec)