#RisingFares – According to Hellenic Shipping News, as of New Year's Day, ferry passengers are being warned to expect a sharp increase in fares in 2015 after rules curbing 'dirty fuel'.

Freight and passenger rates will jump as ferry operators pass on the costs incurred by having to meet the new regulations.

Ships in the English Channel, North Sea and Baltic Sea have been ordered by Brussels to meet strict limits on emissions, meaning that they will either have to use expensive low-sulphur fuel or install costly sulphur filters.

Emissions limit: New EU regulations on emissions could lead to a sharp increase in fares for passengers. Fuel accounts for about a third of a ferry company's overall operating costs. Industry reports say that the change in legislation could double fuel bills.

Experts have estimated the additional cost to the marine industry at about £300 million a year.

Shipping companies are making no secret of the fact that they are going to be clawing back the costs by charging their passengers higher fares.

Carsten Jensen, senior vice president at DFDS Seaways, told The Mail on Sunday that his company has already invested millions of pounds in preparing to comply with the changes. He said: 'The incoming legislation will inevitably lead to an increase in fuel costs for all shipping organisations operating in the Channel, North and Baltic Seas. 'The increase in costs will, unfortunately, need to be passed on to customers.'

P&O Ferries has estimated that its annual fuel bill will soar by about £30 million a year. The company has already announced that it is planning to recover this cost from those using its services.

Swedish shipping company Stena Line, which operates 35 vessels on 19 routes in the areas covered by the new rules, has attacked the imposition of the legislation, describing it as 'one of the largest negative political decisions taken since duty-free shopping was discontinued'.
Chief executive Carl-Johan Hagman estimated that having to use low-sulphur fuel would push up his firm's fuel bill by £41 million a year.

The UK Chamber of Shipping has warned that some ferry routes could be axed as they could cease to be economically viable. DFDS is closing its Portsmouth to Le Havre route this week.

There are additional fears that supplies of low-sulphur marine gas oil will be too low to meet the suddenly increased demand.