TransAtlantic presents solutions

TransAtlantic has taken the first step in opening up to new solutions and partnerships in order to meet the new 0.1 per cent sulphur limits entering into effect from January 1st 2015. Under the pressure of the new SECA-directive there will be no room for rivalry. Ship-owners battling on their own are likely to lose whereas those who stand together will survive and eventually thrive.

Ship-owners and service providers alike are facing great challenges as a result of the new 0.1 per cent sulphur limits, regulating the maximum sulphur emissions for all ships operating in the Sulphur Emission Control Areas (SECA) comprising the Baltic Sea, North Sea and the English Channel.
“Since up to 90 per cent of all merchandise to and from Sweden is shipped by sea, it is clear that the Maritime sector is one of our most important industries. Despite this evident fact, it is at the same time an industry that has been at a disadvantage for many years with unfavourable tax rates and ever-increasing environmental demands. It is high time to act and to think differently. We must consider how future transport solutions should be evolved in order to stay competitive”, says Morten Brühl, TransAtlantic Chief Operating Officer.

Solutions available today
The new directive has most certainly not escaped anyone in the industry. Although the time to adapt is running out, few solutions have been presented so far. It is clear that the new SECA-directive will mean an increase in cost throughout the industry as ship-owners are forced to invest in new technology or run on MGO. Whichever solution is chosen to meet the requirements, the price levels will rise by between 15 to 25 per cent based on today’s oil rates.
Morten Brühl is faced with the significant question of how we together can prevent a single industry from having to shoulder the entire increase in costs. He carefully points out that the technical means available to date are not yet commercially viable. These solutions often require investments that are so substantial that they in many cases are greater than the trade-in value of the vessel.
“For around 90 per cent of the existing tonnage, comprising the smaller vessels of under 10 000 dwt, the available technologies are simply not an option. The solution as we see it is that the shipping industry has to be consolidated. Organising larger freight flows and applying larger vessels is a solution, but it also presents a new challenge in itself as it requires the base industry to work together and not design their own transport systems”.

Taking the first step
TransAtlantic has taken the first step and is open to new solutions and partnerships. Increased collaboration among customers requires a neutral and independent partner. TransAtlantic intends to meet the new challenges of the future and come up with solutions that benefit all parties.
“We propose a business model where the risks are spread across different industries and players. Clients and partners who choose to comply and follow the new model will be favoured with more beneficial rates. This could possibly be a turning point for the entire shipping industry, where total costs are optimised in a new way”, Morten Brühl emphasises.

Saving the entire industry
TransAtlantic is looking to identify solutions to a problem that affects an entire industry. Morten Brühl continues: “The key issue is to bring down costs as much as possible when the new sulphur directives are in place. By linking different modes and promoting increased collaboration between partners, clients and other transport modes, the cost issue can be tackled”.
TransAtlantic intends to create opportunities for multimodal transports while keeping costs down by focusing on larger chains in logistics. To collect larger freight loads will be a solution that is viable for the future, while at the same time applying eco-driving and increasing awareness of the benefits.

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