, and are included in Annex VI of the Convention.
MARPOL Annex VI sets limits to sulphur oxide and nitrogen oxide emissions from ship exhausts, and prohibits deliberate emissions of ozone depleting substances.
Annex VI equally contains provisions allowing for special SOx Emission Control Areas (SECAS) to be established with more stringent controls on sulphur emissions. In these areas, the sulphur content of fuel oil used on board ships must not exceed 1.5% m/m. The North Sea Area is designated as a SOx Emission Control area in the Protocol.
The implementation of the Marpol Convention will lead to considerable increases of the fuel costs for the vessels operating in the designated areas, and as a consequence we shall be forced to introduce a SECA surcharge, applicable as of 11th of August 2007, to partially cover this extraordinary expense.
The low sulphur fuel quality is available in the market and a price structure has been established, but we do not know the impact the additional demand will have on the prices and are not able, at this point in time, to assess the actual financial impact.
We have, however, in other SECAS experienced, that the oil costs have increased by 8 -10%, in which case the new SECA surcharge would amount to 1,5 -2 % of the sea freight.
We shall announce the actual surcharge late July 2007 and hope for your understanding and acceptance of this necessary step.
DFDS Lys Line AS,
Jan Rune Løvlie
Director
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