UPDATE: Environmental Regulation IMPACTING Bunker Fuel Cost EFFECTIVE August 1, 2012

2012-05-31

Dear Valued Customer,

As follow-up to the announcement of April 25, 2012.  Crowley would like to remind you that on August 1, 2012 the IMO’s (International Maritime Organization) North American Emission Control Area (ECA) rules will become effective. This regulation governs the allowable air pollution by limiting nitrogen and sulphur emissions from ship exhaust (MARPOL 73/78-Annex VI). In order to comply, ocean carriers will have stricter requirements for vessels operating in these areas. It will require all vessels within 200 nautical miles (with some exceptions) from United States coast lines, to use low sulphur fuel according to MARPOL Annex VI.
 
The ECA limit of 1% sulphur content of fuel will force ship owners and operators to switch to low sulphur fuels at significant cost increases. At this time, due to the limited amount of information being provided by US refineries that will be supplying this fuel, the cost impact on bunker fuel is unknown but could increase as much as 20%, even though the required use of this fuel is effectively right around the corner. Preliminary indications are that fuel cost will increase significantly. We are hopeful that clarification of this cost will be available shortly, and we will advise accordingly in turn. 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