Declining SECA Levels

Changes in SECA prices over the last 12 months

On the 1st January 2020 the Sulphur Emission Controlled Area (SECA) was introduced to the Irish Sea this came from a IMO regulation in order to reduce the amount of sulphur in shipping to 0.5% – the SECA mechanism and charge was based not only on Marine Oil prices but includes the extra cost for using low sulphur fuels with the additives needed to be within the sulphur limit and is set individually by each shipping line.

With the Ukraine war and fuel price increase this caused SECA to increase at a much higher level in percentage terms than fuel did due to higher price for the additives and shortage of supply at one stage a major fuel supplier to the shipping industry was also on the verge of liquidation

As you can see from the below there has been a huge change in SECA over the last 12 months

At the high of July 2022 to June 2023 there has been a over 300% decrease with Stena and 180% with Seatruck.

 

The below came as a shock to most customers as such a variance was difficult to predict and likewise budget for.

CAIRNRYAN STENA  BIRKENHEAD STENA   HEYSHAM STENA   HOLYHEAD STENA  HEYSHAM SEATRUCK   LIVERPOOL SEATRUCK 
SECA SECA SECA SECA SECA SECA
Jun-22£                        62.44 £                       106.26 £                        86.10 £                        69.16 £                               54.88 £                               54.88
Jul-22£                       75.88 £                       129.08 £                     104.58 £                        81.90 £                               65.38 £                               65.38
Aug-22£                        68.46 £                        116.34 £                        94.36 £                        75.88 £                               58.38 £                               58.38
Sep-22£                        53.48 £                         91.14 £                       73.78 £                        59.78 £                               48.58 £                               48.58
Oct-22£                        49.14 £                         83.44 £                        67.62 £                       55.16 £                               45.78 £                               45.78
Nov-22£                        44.66 £                         75.88 £                        61.60 £                        48.30 £                              44.38 £                               44.38
Dec-22£                        38.64 £                         65.80 £                        53.34 £                        43.26 £                               38.08 £                              38.08
Jan-23£                        20.86 £                         35.42 £                        28.70 £                        22.96 £                               38.08 £                               38.08
Feb-23£                        22.26 £                         37.94 £                        30.80 £                        25.06 £                               29.68 £                               29.68
Mar-23£                        28.28 £                         48.02 £                        38.92 £                        29.82 £                               32.48 £                               32.48
Apr-23£                        25.34 £                         42.98 £                        34.86 £                        26.74 £                               28.98 £                               28.98
May-23£                        23.80 £                         40.46 £                        32.76 £                        25.06 £                               28.28 £                               28.28
Jun-23£                        17.78 £                         30.38 £                        26.64 £                        18.62 £                               23.38 £                               23.38
HIGHEST  £                        75.88  £                       129.08  £                     104.58  £                        81.90  £                               65.38  £                               65.38
LOWEST  £                        17.78  £                         30.38  £                        26.64  £                        18.62  £                               23.38  £                              23.38
% DIFFERNCE 326.77%324.88%292.57%339.85%179.64%179.64%
Average Difference 273.89%

 

Maxi worked with customers to keep up coms when the increase and decreases were occurring and continue to monitor the situation closely.