New US environmental rules will result in a rise of the cost of shipping containers to Bermuda.

The laws mean the Island’s three container ships will have to burn more expensive ‘eco-fuel’ when they get within 200 miles of the US shore.

Local shipping lines say the regulations, which take effect at the start of 2015, could mean a $50 to $55 increase in the cost of bringing a single container into Bermuda.

Barry Brewer, President of Neptune Ltd, which owns Bermuda Container Line and operates the Oleander, said the increase was ‘unfortunate’ but would not jeapardize the line.

“This new policy does not just affect ships in Bermuda, this has effects to the shipping industry across the globe,” he said. “For some of the bigger shipping companies that have lots of vessels these new laws will not have a major impact.

“But for smaller carriers like the ones in Bermuda, the impact is more significant. We believe it will result in a $50 to $55 dollar increase in the cost of shipping a container to Bermuda.

“Having said that it is something we have to deal with, this is an international industry where circumstances change and we have to adapt as best we can. But, this change will not jeapardize the line.”

The overall, global result of the new laws is expected to be millions of dollars in additional costs to shipping companies trading into the US.

The regulations are designed to reduce the sulphur content in the fuel used by ships by 90 percent in Emission Control Areas (ECA).

The cost of sulphur reduced fuel is significantly higher than the fuel currently being used.

As a result using this new fuel will increase costs to carriers and the cost will then trickle down to shippers in the form of higher freight rate prices.

Joe Simas, vice president of Meyer Agencies Ltd. which are local agents for the Bermuda Islander, said: “To comply with new cleaner fuel requirements the Bermuda Islander will begin using more expensive Marine Diesel Oil (MDO) on January 1, 2015 and BISL will be altering its Fuel Surcharge calculation to compensate for this change.”