Environmental Regulation IMPACTING Bunker Fuel Cost EFFECTIVE August 1, 2012 Update #3

2012-07-13

Dear Valued Customer,

As previously communicated on May 2nd 2012 and May 31st 2012, the North American Emission Control Area (ECA) under MARPOL Annex VI will become enforceable on August 1st, 2012.  On this day, the sulfur content of the fuel oil used on board ships operating within the ECA may not exceed 1.00 percent m/m (10,000 ppm).  Ships will be required to maintain and, upon request, make available to Port State Control authorities the information regarding compliance of this regulation.  The boundaries of the North American ECA are defined in IMO MEPC.1/Circ.723 and outlined below: 

Image Credit: EPA

Currently, the information that is available by US refineries that will be supplying this fuel, and the cost impact on bunker fuel is unknown, but could result in a significant increase. Once clarification of this cost is available we will advise accordingly. For good orders sake and to be clear, this does not affect our San Juan service as our tugs deployed here already use low sulphur gasoil.  For Crowley, these regulations apply for our ships only deployed in our International trades.

For further information on this subject, please refer to the below links:

• North American Emission Control Area

• Emission Control Area to Reduce Emissions from Ships in the U.S. Caribbean

• ECA Enforcement

If you have any questions please do not hesitate to contact your Crowley sales executive. In the challenging economic times that we all face, the specter of additional costs are certainly not welcomed, and of significant concern for us all. We will try to furnish as much information as possible in the days and weeks ahead leading up to this milestone date of August first and the government imposed implementation of these regulations.

If you have any questions please, contact your sales representative or the Customer Care Department at 1-800-276-9539.

Please visit Crowley.com for schedule changes and operational updates. Crowley’s current sailing schedules are always available by visiting https://www.crowley.com/What-We-Do/Shipping-and-Logistics/Liner-Container-Shipping/Routes-Sailing-Schedules-and-Locations/Liner-Route-Details-and-Sailing-Schedules.

Thank you for your continued support,

Crowley