GI-2026-25-reg5: Regulations Amending the Vessel Pollution and Dangerous Chemicals Regulations (Part 2, Division 1 — Oil) and the Administrative Monetary Penalties and Notices (CSA 2001) Regulations

The rules directly affect four large Canadian shipping companies that own or operate 25 vessels — mainly cargo ships, tankers, and one bulk carrier — running regular routes in Canadian Arctic waters. These operators will need to switch from cheaper heavy fuel oil (VLSFO) to pricier marine diesel oil (MDO), which costs roughly 14-15% more per unit of energy, adding an estimated $10.4 million in total fuel costs over 10 years (about $1.1 million per year across all affected operators). Cargo vessel operators face the biggest hit at $9.1 million total, and they are likely to pass some of those costs on to the Arctic and Indigenous communities that depend on marine resupply shipping — potentially adding around $61 per household per year on average. Vessels with double-hull or otherwise protected fuel tanks get a transition period and don't need to switch fuels until July 1, 2029, while seven cargo vessels operating under a temporary waiver must comply by July 1, 2026. No small businesses are affected — all impacted companies are large enterprises — and no new paperwork or reporting requirements are introduced.