A new maritime fuel regulation from the EPA could crowd roads and increase onshore air pollution, according to a shipping group.
The rule requires the use of high-cost, ultra-low sulfur fuels in ships operating within the 200 nautical mile boundary of the North American Emission Control Area (ECA).
The EPA failed to consider all sectors of the shipping industry in setting this new standard, particularly vessels engaged in short sea shipping, according to short-sea shipper CSL Group. It maintains EPA calculated anticipated cost increases at 3 percent, but focused only on trans-oceanic shipping. For short sea shipping vessels, which spend nearly all of their time within the ECA, the new fuel requirement means cost increases 10 times that of the EPA's estimates.
Higher prices would increase reliance on less environmentally-friendly land-based shipping modes, like truck and rail.
CSL calculated that, on average, each ship would bear about $815,000 of additional annual fuel costs.
