Low Sulfur Requirement
Commencing January 1
Image Credit: EPA
Crowley, as a steward of the Environment will comply fully with this new regulation and welcomes the initiative. The ability to comply with this reduced sulfur emission requires the conversion from low sulfur fuel oil to ultra-low sulfur diesel, which comes with substantially higher cost.
Currently, the per container cost impact to our bunker fuel levels is uncertain, however we anticipate that increased demand of ultra-low sulfur diesel (essentially the same fuel currently used today in tractor trailers) could drive the price per metric ton upwards and increase cost significantly. This would be in addition to the premium already paid on low sulfur fuel oil. Once clarification of this cost is available we will advise accordingly.
Our San Juan service has been using ultra-low sulfur diesel since 2012. However, the purchase price of that fuel could also be affected by increased demand.
For further information on this subject, please refer to the below links:
Similar to the 2012 conversion from IFO (intermediate fuel oil) to low sulfur fuel oil, we anticipate the additional costs of purchasing this fuel to be realized weeks or perhaps months ahead of the January 2015 implementation date. This transition period is required to remove higher sulfur fuel from storage tanks in advance of implementation date. We will try to furnish as much information as possible in the days and weeks ahead leading up to this milestone date of January 1
If you have any questions please, contact your sales representative or the Customer Care Department at 1-800-276-9539.