EU’s cleaner marine fuel rules are inflationary, shipbrokers say

European Union marine fuel rules, effective from Jan 1 as part of efforts to cut emissions, will raise shipping costs, although firms with vessels that can run on alternative fuels, such as biodiesel and LNG, will benefit, two shipbrokers said.

The policy is the second major EU regulation focused on cutting the shipping industry's carbon emissions in as many years. Shipping transports over 80% of all traded goods and causes nearly 3% of greenhouse gas emissions.

The FuelEU Maritime regulation requires commercial ships above 5,000 gross tonnage operating in EU ports to cut emissions from marine fuels, also called bunker fuels, or pay penalties.

Biofuels and other alternative fuels for ships are in short supply, and there is competition from aviation and other sectors. That means shipping companies' costs will rise - and ultimately, the increase will be passed...