Passengers could face higher cruise prices as the NSW Government enforces law on low-sulphur fuel.
From October 1 this year, every cruise ship that berths overnight in Sydney will be required to use fuels containing no more than 0.1 per cent sulphur after Greens-dominated Balmain complained of pollution from vessels using high-sulphur fuel.
Then, once July 2016 comes around, every cruise ship that enters Sydney’s harbour will need to be using low-sulphur fuel, which costs $250 a tonne more than the ‘toxic’ alternative.
However, the price for not following the rules is much steeper. If found to be in violation of the new policy, cruise companies could be fined up to $44,000, while the captains will be charged half that.
As a result, companies may be looking to cover their costs by enforcing a surcharge for those sailing to or from Sydney.
Derek Luxford, an international shipping, transport and trade lawyer, told The Daily Telegraph it’s more than likely cruise operators will pass the cost on to passengers.
“These costs are part of the ever increasing compliance costs hitting the shipping industry,” says Derek.