Two stories this week about Sulphur 2020 highlighting key concerns
From Tanker Operator website.
The International Chamber of Shipping (ICS) has warned of ‘chaos and confusion’ unless the IMO urgently resolves some serious issues concerning the implementation of the forthcoming 0.5% sulfur in marine fuel cap.
This was the principal conclusion of ICS’s member national shipowner associations’ AGM held in Hong Kong last week. Read more
North P&I said that shipowners will have some very difficult and important decisions to make on how to comply with the 1st January 2020 sulfur cap.
There are several options open to shipowners, with the majority currently opting for distillates, perhaps keeping an eye on the development of cheaper hybrid fuels, blends or compliant residual fuels.
The choice will come down to what is right for the vessel and what is economically viable, the mutual said.
Speaking broadly, there are five options available to a shipowner that allow compliance with the 2020 global sulphur cap – distillates, hybrid blends, scrubbers (EGCS), LNG and other emerging fuels. Read more
Tell us your thoughts on these stories
The Paris Memorandum of Understanding on Port State Control (Paris MoU) held its 51st Committee meeting in Cascais, Portugal, from the 7-11 May 2018. The Paris MoU agreed to an information campaign by issuing a “Letter of Warning” starting 1 January 2019, to encourage timely compliance.
Ahead of the new maximum limits for sulphur in ships fuel oil, entering into force on 1 January 2020, the Paris MoU agreed to issue a “Letter of Warning”, starting 1 January 2019, to encourage timely compliance.
Great article on Safety at Sea Read more here
So is the cost the real inhibitor or is it more that most shipping companies haven’t made up their minds yet to what they are going to commit to?
The real deadline is last quarter 2019 so it is fast approaching and businesses need to be setting out their strategies to meet the IMO Sulphur Cap.
Read more here
IMO 2020 Rule: Enforcement
A good read and puts the situation very well
“Time is fast running out” for implementation by IMO Member States of the 0.5% global sulphur fuel cap by 1 January 2020, says Esben Poulsson (pictured above), chairman of the International Chamber of Shipping (ICS).
In a statement, ICS says that the IMO global sulphur cap is expected to see shipping’s bunker prices increase significantly.
“While ICS fully supports the objectives of the IMO cap, the overnight introduction of this regulatory game-changer will have enormous implications for ship operations. It will be vital to get the implementation right.”
The statement also highlighted concerns about: “Whether sufficient quantities of compliant low sulphur fuels will be available in every port, there are a number of complex practical issues which IMO needs to urgently resolve within the next 18 months if the unfair treatment of ships is to be avoided.”
In the absence of agreed standards for new fuels, including blends that will be compliant with the 0.5% sulphur limit but which may differ in their composition from port to port, ICS is very concerned this could lead to serious compatibility and mechanical problems.
While the industry is fully committed to immediate implementation, there could possibly be an initial period of ‘teething problems’ when suitable compliant fuel might not always be available in every port until it can be shipped in from elsewhere. This is more likely to be a significant problem for ships in tramp trades which call at diverse port destinations; destinations which are not always known long in advance.
If 0.5% sulphur fuel is not available in every port worldwide, ICS notes that ships may still bunker and use other compliant fuels, such as 0.1% distillate, but warns this raises other serious issues not least those relating to compatibility.
Esben Poulsson emphasised: “It is vital that ship operators, charterers and fuel purchasers start making the necessary preparations to be ready for this major change. This also means that oil refiners and bunker suppliers will need to ensure that compliant fuels are actually available for ships to purchase well in advance of January 2020.”