External Costs of Maritime Transport

09.14
From 2009 to 2010
Transport & Mobility Leuven & the Institute of Transport and Maritime Management (ITMMA) of the University of Antwerp was asked by the European Community of Ship owners' Associations (ECSA) to evaluate the consequences of new environmental legislation: the revised MARPOL Annex VI in 2015, on the sulphur content of fuel. This regulation foresees in a reduction to 0.1% sulphur content in the Emission Control Areas - ECAs (Baltic Sea, North Sea and English Channel).

The study particularly focused on three research questions:
1. What is the expected impact of the new requirements of the International Maritime Organisation (IMO) on costs and prices of short sea traffic in the ECAs?
2. What is the expected impact of the new requirements of IMO on the modal split in the ECAs?
3. What is the expected impact of the new requirements of IMO on external costs?

In summary, the study showed that the use of Marine gas Oil (MGO) (0.1%) in order to comply with the new requirements is expected to have a negative effect on freight rates and the modal split on a large set of origin-destination relations. On some trade routes the short sea option might lose its appeal to customers. This will lead to traffic losses for the short sea option in favour of trucking or shorter short sea sections. Obviously, the use of MGO will have a positive impact on external costs generated by short sea vessels alone. Depending on the actual modal back shift the overall outcome for the environmental performance might well be negative.

Period

From 2009 to 2010

Client

European Community of Ship owners' Associations (ECSA)

Partner

University of Antwerp, the Institute of Transport and Maritime Management (ITMMA)

Our team

Eef Delhaye, Kris Vanherle
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