As the 2020 sulphur cap entered into force, the shipping industry saw the introduction of Very Low Sulphur Fuel Oils (VLSFOs), which has been increasing since October 2019. However, VPS notes that a rise has been observed in fuel instability leading to sediment formation from these fuels.
2020 sulphur cap
The Standard club has received reports that low sulfur fuel is not currently readily available in all Indonesian ports and that there are local shortages. Considering this situation, it is recommended that members take necessary precautions to source sufficient compliant bunkers prior to calling at Indonesian ports.
Chinese oil refiners are not very possible to advance their output of cleaner marine fuels until at least Q2 of 2020, due to the fact that they must upgrade their facilities, even after the government granted tax waivers to enhance output.
Reuters reports that China has approved a long-awaited tax waiver on exports of cleaner ship fuel, helping refiners to boost output. Yet, Beijing may initially limit shipments with the aim to focus on growing its coastal marine fuel market.
During a visit to Copenhagen in mid-January, IBIA met with several global shipping and bunkering companies who had all started their planning and preparations to be “IMO 2020 ready” at least two years ago, validating a smooth transition to IMO 2020.
Marfin Management, Monaco-based ship manager, signed up as the first commercial partner to use the BunkerTrace system to track marine fuels, to manage any possible non-compliant or contaminated fuel. Marfin will use the system to track marine fuel, using synthetic DNA markers at specific points of the supply chain and record each transaction in a blockchain-based solution.
The entry into force of the sulphur cap in the beginning of 2020 is – and will be – the highlight of the year. However, at the end of 2020, ships must comply with another very important requirement. Specifically, starting from 31 December 2020, ships above 500 GT and flying the flag of an EU/EEA member state, or third-party flagged vessels calling at European ports, must carry an Inventory Hazardous Materials (IHM) certificate on board. To shed light on this matter, DNV GL hosted a webinar, providing more information about the subject.
Maersk is now increasing fuel surcharge imposed on the transport of boxloads of goods as the implementation of the new environmental rules sent the industry’s costs soaring.
The sale of HSFO heavily declined while low-sulphur fuels skyrocketed in the final quarter of 2019, as the industry transitioned into compliance with 2020 sulphur cap. This shift in bunker sales underlines the massive transition that the industry has been faced with at the turn of the decade, argues Peter Sand, Chief Shipping Analyst of BIMCO.
Steamship Mutual attempts to examine how compliance to the Global Sulphur Cap is to be determined; what procedures will apply and what will be used to ascertain whether bunkers on board and the operation of the ship are compliant, in relation to vessels without scrubbers or other equivalent means of compliance by reference to the IMO Guidelines available.
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