Understanding the 2020 sulphur cap and recent developments

Article from Seanews.co.uk

There are only two years and two month left until IMO’s global sulphur cap comes into force. Much has been discussed over the last months but still there are some open questions. Here is a good article to read in order to get an understanding of the current issues.
http://seanews.co.uk/understanding-the-2020-sulphur-cap-recent-developments/

http://seanews.co.uk/understanding-the-2020-sulphur-cap-recent-developments/

2020 noncompliance may play an important role in the industry’s response to new regs

Whilst much has been said about shifting to buying low sulphur bunker oil, investing in emissions-cleaning technology or alternative fuels – there are several options for shippers to deal with the upcoming regulations of sulphur 2020 cap.

But there is an optioned that isn’t really being addressed and should not be underestimated that is cheating and ignoring the rules entirely, according to a report from the Center of Global Energy Policy. Latter is becoming an urgent issue as there are currently no solutions in place enabling authorities to monitor these ships. The report also indicates that larger companies are less likely to choose noncompliance than smaller operators.

Read more here: Ship & Bunker
Find the full report here: Center of Global Energy Policy

 

Where do you think will be the biggest risk for noncompliance?

Weekly summary CW41

The global sulphur cap for 2020 is coming closer. Therefore, not surprisingly, shipping news sites have been and will be focussing more and more on the impact of the directive on the marine industry. Only this week there have been more than 25 stories concerning the sulphur cap. The stories covered a range of topics including further consolidation in the bunker industry, the technology of scrubbers, uncertainty in the industry and noncompliance were discussed.

Consolidation. As tightening emissions regulations impose greater costs and test credit lines, the bunker industry can expect to undergo further consolidation in preliminary stage to 2020, according to global supplier Bomin Group. Smaller bunker traders could, as a consequence, be devoured by larger players across the industry as the increase in costs for fuel will put pressure on credit conditions across both the bunker and shipping industries.

Scrubbers. Another frequent topic this week was scrubbers. Although using scrubbers would be one solution for meeting the requirements of lower sulphur emission standards, at this point in time, only around 500 ships have installed scrubbers. Also featuring this was a story this week on a survey by ExxonMobil which revealed that many vessel operators are insecure in selecting the best route to comply with the 2020 0.5% global fuel sulphur limit set by the IMO. Results showed that 68% of the respondents believed the marine sector is not ready for the deadline. The future for the marine industry might be multi-fuel and it will be vital for operators and fuel suppliers to work closely, according to Iain White, Global Marine Marketing Manager at ExxonMobil.

Cheating. As there are still a huge number of ship operators that have not made up their mind about how best to comply with the upcoming low sulphur regulations, the possibility of cheating and ignoring the rules completely should be not underestimated. Especially in times where currently there are no solutions in place to enable authorities to find cheating ships, the issue is becoming urgent. But Norway might be meeting these concerns by presenting an IMO proposal introducing a ban against fuel that does not comply with the directive.

Sulphur 2020 is monitoring all the relevant press and bringing all the stories into one portal, so it is easy for you to find out what is being said and happening. Subscribe to the portal here.

Norway proposes IMO fuel ban to prevent sulphur cheating

There are several options for shippers to deal with the upcoming regulations of sulphur 2020 cap; shifting to buying low sulphur bunker oil, investing in emissions-cleaning technology or alternative fuels.

One option that should not be underestimated is cheating and ignoring the rules entirely. Latter is becoming an urgent issue as there are currently no solutions in place enabling authorities to monitor these ships.

But Norway is now looking for a solution to this issue by presenting an IMO proposal  introducing a ban against fuel that does not comply with the directive. By this ban vessels that fail to comply with the environmental regulations could be sanctioned and cheating could be prevented.

Read more here:
www.shippingwatch.com