Coast Guard Study Reveals Double Hulls Will Raise Shipping Costs

The Coast Guard recently conducted a draft Regulatory Impact Analysis (RIA) of the proposal it made to implement the requirement of double hulls in OPA 90. The study found that the costs of double hulls, double bottoms, double sides, and smaller tanks would cost the operator more, causing a decrease in allowable profits.

The Coast Guard stated that by mandating this requirement it would increase the cost of transporting petroleum by about $350 million.

The increased transportation costs would result from higher construction costs, increased maintenance and repair costs, and a reduction in the cargo capacity of the vessel.

The double hull requirement will affect small inland barge operators, coastal barge operators, and tanker operators not in the Alaska trade more than large barge operators since double hulled vessels are already in generalized use.

The draft RIA is available from the Coast Guard at a cost of $25, payable to the U.S. Treasury. To obtain a copy, call Bruce Novak of the OPA 90 staff at (202)267-6189.

Maritime Reporter Magazine, page 96, Mar 1992

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