A4 Refereed article in a conference publication
Implications of sulphur regulation on vessel use in Finnish seaborne trade
Authors: Tuomas Kiiski, Sini Laari, Tomi Solakivi, Juuso Töyli, Lauri Ojala
Editors: Jan Stentoft
Conference name: Annual NOFOMA conference
Publication year: 2018
Book title : Proceedings of the 30th Annual NOFOMA Conference: Relevant Logistics and Supply Chain Management Research
eISBN: 978-87-91070-93-8
Self-archived copy’s web address: https://research.utu.fi/converis/portal/detail/Publication/36527917
Purpose
Shipping is facing
tightening regulations to mitigate its environmental footprint. For example,
the policy to restrict ships’ fuel sulphur content to 0.1 % became effective
in the Baltic Sea on 1.1.2015. The consequences of this policy – initially
suggested to lead to modal shifts and substantial increase in costs – are
still much debated. The objective of this paper is to find out how do ships
calling Finnish ports in 2010-2017 have reacted on the implementation of the
Sulphur Emission Control Area (SECA) by IMO in the Baltic Sea.
Design/methodology/approach
Annual list of all
vessel port calls in Finnish ports together with vessel-by-vessel technical
data obtained from Clarkson World Fleet Register comprise the research data. Descriptive
statistical analysis is the main research method.
Findings
The results
indicate that Roll on - Roll off
vessels are mostly affected by SECA regulation in terms of scrubber
installations, while majority of ships calling at Finnish ports have switched
to cleaner fuel grade. LNG appears to be an option involving only
newbuildings.
Research
limitations/implications
The implications
of the SECA are analysed from the Finnish perspective. In the future, the
analysis should be extended to other SECA countries to confirm the
generalizability of the results.
Practical
implications
The results provide
insights to shippers and ship owners on how the transport flows in the Baltic
Sea region have evolved in 2010-2017 in order to plan for future vessel
investments.
Social
implications
The results
provide empirical evidence for policymakers on how the shipping market has
adjusted on stricter sulphur regulations. These findings can be utilized when
preparing for the global cap of 0.5% sulphur content in ships’ fuel, which
will be effective by 2020.
Originality/value
The paper
contributes to the discussion of economic impacts of environmental regulation
in shipping by analysing how the implementation of the SECA has affected
vessel distribution used in Finnish seaborne trade.
Keywords: Shipping,
Sulphur Emission Control Area, Baltic Sea, Finland
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