Freight News, Sea

Stena to hike freight rates by 15% in 2015

[ September 25, 2014   //   ]

Stena Line warns that the new sulphur directive in North European waters will have a significant economic impact on its business when it comes into force on 1 January 2015. It was one of the key drivers behind Stena Line’s decision to implement a company-wide two year Change Programme in 2013, to improve performance by £100m and included an increase in freight rates. For Stena Line, the changes mean a direct increase in fuel costs of more than £100, 000 per day, or around £41M per year as a result of having to use the more expensive low sulphur fuel.

The move would have the biggest impact on the ferry business since the withdrawal of duty free in the EU, Stena calculates. CEO Carl-Johan Hagman said Stena would have to increase prices by around 15%.  “Unfortunately we are left with no alternative but to pass on the imposed increase in costs to our freight customers”, he added.

Stena will start trials of methanol as a potential fuel on one of its ferries and taking a closer look at deploying scrubber technologies and using LNG as a possible fuel. But converting and rebuilding our ferries will both take time and require a significant investment.