On Wednesday, October 24, MEPC 73 rejected a proposal for a soft rollout of the 2020 sulphur cap implementation. BIMCO, Intercargo, Intertanko, the Marshall Islands, Liberia, Panama, the Bahamas and the US suggested this ‘experience building phase’.
The coalition suggested this phased implementation in order to prevent punishing ships for not complying as from January 1, 2020. MEPC decided not to accept the proposals and stood firm on the initial deadline. However, more proposal are expected relating to fuel quality in May.
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MEPC has also rejected a proposal to the relevant ban on the carriage of high sulphur fuels. Namely, if a ship does not have an approved SOx scrubber or another solution, the sulphur content of its fuel which will be used on board must not be over the 0.50% after March 1, 2020.
Recently, there were reports that the US government is trying to delay the implementation date of the upcoming sulphur cap regulation, as President Trump is worried that this regulation will increase the costs of fuels for consumers and businesses.
According to Wall Street Journal, the US administration fears that the 2020 sulphur cap will drive costs over $100 a barrel.
US is not planning to withdraw from the agreement, however it noted that a phasing implementation of the regulation will build experience both for the shipping industry and the energy sector.
