The Chairpersons of the Round Table of international shipping associations (RT) met in Rome in February to exchange their members’ experiences with the implementation of IMO’s 2020 global sulphur regulations.
From January 1, fuels used by vessels have been required to contain a maximum Sulphur content on 0.5%, down from 3.5%. The IMO expects that the new limit will mean a 77% drop in overall SOx emissions from ships, equivalent to an annual reduction of approximately 8.5 million metric tons of SOx. The four shipping associations welcomed implementation of the regulation.
With the introduction of the new limits, initial strong price differentials for various fuel options were noticed, with in places cheaper marine gasoil, in comparison to low-sulphur fuel oils. At the same time, uncertainty remained about the global supply of compliant fuels and concern about the safety and compatibility of fuel options.
Two months after the introduction of the sulphur cap for fuel used by ships, BIMCO, INTERCARGO, International Chamber of Shipping (ICS) and INTERTANKO are all cautiously optimistic about the capability of shipowners to adapt to the new regulations.
Dimitris Fafalios, Chairperson of INTERCARGO, commented on the occasion:
We cannot forget that we are reliant on cooperation from across the entire supply chain. This includes fuel suppliers to standardise fuel blends, Flag States to report issues to the IMO as appropriate and for Coastal States to properly train their Port State Control (PSC) personnel
Another point made was that despite announcements regarding how few FONARs had been issued by Flag States, this did not represent a true measure of the lack of worldwide VLSFO availability, as it did not reflect situations where owners had to wait or divert to find fuel. It does not also reflects the extreme efforts shipowners were making to plan and find compliant fuels at their intended trading ports.
The “Round Table” leaders agreed that continued sharing of experience is vital and will be reported to IMO as appropriate. Flag States should also be encouraged to enhance their reporting to IMO.
The four associations have also launched a survey to gain a greater understanding of fuel oil quality and possible safety implications and encourage shipowners and operators to participate.
