Major companies in East Yorkshire are warning that new European Union rules on shipping fuels could affect the local economy.

In order to reduce the environmental impact of shipping, EU governments have agreed to limit the amount of sulphur allowed in ship fuels from 2015.

In a letter to the Government, the Humber Chamber of Commerce's Shipping Committee warned that the changes could damage business in the region.

Committee chairman Graham Cross, of GXD Logistics, said: "The regulation will lead to increased costs on the North Sea, which are becoming intolerable, not only for ship operators but also for exporters, thus leading to a detrimental effect on our regions exporters.

"We estimate that the introduction of the 0.1% sulphur fuel will lead to increases in fuel costs of up to 87% for ships operating in emissions control areas off the southern and eastern coasts."

Mr Cross also said that the increase in fuel would lead to higher ferry prices, which would impact on the areas tourism. Other companies on the committee include Associated British Ports, LV Shipping, CILT and Finnlines UK.

Copyright Press Association 2012