Abstract

"jats:p"EU Directive of MARPOL Annex VI and its economic impact on the Nordic paper industry is theme of this research work. Empirical data for analysis purposes was gained from a large Nordic paper mill that exports bulk products mainly to Europe (70 % of its volume). The study shows that in the end the industry’s location still has an economical effect, and that the location has a distinct impact on competition through rising transportation costs. Environmental regulation continues and fosters long-term upwards trajectory of transportation cost, which has been experienced by the paper mill earlier during years 2001-2009. Sulphur regulation change to cleaner grades of maritime diesel did not turn as heavy cost increase in the 2015, however, possibility to gain cost benefits in rapidly deteriorating oil markets were not reached either. Therefore, in depressed industrial product markets, like paper industry, implications were such that margins of export industry remained low. Document type: Article

Abstract

Introduction The International Maritime Organization and the European Parliament (EP) have stated that ships must lower sulphur emissions significantly in a specific region in Northern Europe, that is, in the Sulphur Emission Control Area (SECA), where sulphur content in bunkers is not allowed to exceed 0.1 percent. The Nordic companies have been examined somewhat marginally from the point of view of the SECA-directive, and how it will affect the cost-efficiency of the industry. Document type: Article