Tag: 2020 sulphur cap

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REMINDER: Sulphur Content in bunkers to be 3.50% from 1 January 2012

Fuel oil will be reduced from 4.5% m/m to 3.5% m/m Normal 0 false false false MicrosoftInternetExplorer4 The MARPOL Annex VI global fuel sulphur limit for fuel oil will be reduced from 4.5% m/m to 3.5% m/m as of 1 January 2012 and, as a result, it is important to carefully plan your bunker orders in case these may not be fully consumed before this date.Every Operator should consider specifying to the bunker supplier a maximum fuel sulphur limit of 3.5% m/m ahead of the due date to help prevent any problems.Source: INTERTANKO

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The Unintended Consequences of the sulphur cap

EU has proposed 0.1% sulphur cap to take effect in 2015 New regulations really need to be thought over carefully and exposed to the most rigorous cost-benefit analysis. It is often said that legislation concocted in haste will be inevitably regretted by its recipients and that those making regulations need always to consider "the Law of Unintended Consequences", which will often catch out those who have allowed their enthusiasm for legislation to get the better of them.Perhaps it has been taking rather too long to build up a head of steam, but the opposition to the proposed EU 0.1% sulphur cap due to take effect in 2015 within the European Emission Control Areas seems to be growing very fast. Ferry and short sea operators in particular have been doing their research and are, as a result, better equipped to forecast the consequences of this drastic reduction of sulphur content in fuel oil, due to become mandatory.Speaking to the UK House of Commons Transport Committee recently, the UK interest group Maritime UK told MPs that the proposals are likely to increase bunker costs by nearly 90% and will almost certainly add some GBP 3.6 billion per annum to the operating costs ...

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2015 sulphur cap in IBIA spotlight

Owners and EMSA disagree at industry convention The IBIA Convention in Barcelona opened on Tuesday with two keynote speakers putting forward opposing views on impact of the 2015 0.1% sulphur cap in emission control areas (ECAs). Manuel Carlier, director general of the Spanish Shipowners' Association (ANAVE), and a director of the European Community Shipowners' Association (ECSA), put forward owners' concerns. Arnaud Leroy Senior Project officer European Maritime Safety Agency, and working with the European Commission (ECs) on the Marine Fuels countered with the case for continuing with its proposals which in some respects exceed IMO ECA requirements.Mr Carlier said that it was likely that bunker costs for ship operators would increase by between 70% and 100% while operating in ECAs and that there would be a total increase in operating costs 25% to 40%. He asked: "Can this cost be passed to customers in the freight market?He said that while scrubber equipment suppliers claimed success in pilot applications and tests installing this equipment would only be cost efficient for new ships operating exclusively or mainly in ECAs.He noted the possibility of using LNG and that dual fuel engines had proved successful in large LNG tankers. He said that the methane ...

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Cruise lines will ‘call at fewer ports’

Carnival UK backs 'averaging' proposal to meet ECA regulations David Dingle, chief executive of Carnival UK, said that, in response to the 0.1% sulphur content cap in emission-controlled areas (ECAs) in 2015, cruise ships would sail more slowly and would need to call at new and fewer portsIn an interview with Travel Trade Gazette he is quoted as saying: New ships will go down the route of creating more variety onboard, as calling at lots of ports becomes less possible . If you look at our order bookings across our brands for new ships, you can see that they are bigger than the existing ships we have.Mr Dingle also said he backed a proposal by the Cruise Lines International Association which has proposed a way of allowing ships to use higher sulphur fuels in once the 0.1% sulphur content cap comes in to force.According to Mr Dingle, the director of environmental and health programmes at CLIA, Bud Darr, is proposing an interpretation of the IMOs fuel rules that advocates the averaging principle - where ships would be able to burn higher-sulphur fuels as long as the average emission impact for the entire journey does not surpass the overall limit. Travel ...

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UK probe into sulphur cap impact

House of Commons Transport Select Committee will hold an inquiry The UK's House of Commons Transport Select Committee has announced it will hold an inquiry into the impact of regulations limiting sulphur emissions from ships.The organisation bringing together the shipping, ports and maritime business services sectors, Maritime UK, says the move is in repsonse to its lobbying on the issue. The news or an inquiry follows a meeting between the select committee and senior Maritime UK members earlier this year, where committee chairman Louise Ellman MP heard of the detrimental impact the IMO's sulphur regulations, and the EU sulphur directive, will have on the maritime services sector.The maximum permitted sulphur content in fuel burnt within IMO-designated Emissions Control Areas was reduced to 1% from 1 July last year but there will be a further reduction to 0, 1% from 1 January 2015 which is widely seen as problematic as it probably mean a large-scale switch-over to distillate fuel which already much expensive than heavy fuel oil bunkers. It is generally believed that the cost of distillate will increase significantly as the refineries struggle to meet demand.In a submission to the Committee, Maritime UK says: "The main effect of the revised ...

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Commission unveils plan to assist shipping in meeting new sulphur limits

Pollutant emission reduction from maritime transport The European Commission adopted a Staff Working Paper "Pollutant emission reduction from maritime transport and the sustainable waterborne transport toolbox". The Commission Staff Working Document is accompanying the legal proposal for an amendment of Directive 1999/32/EC and the Communication on the review of the implementation of Directive 1999/32/EC related to the sulphur content of certain liquid fuels. The proposed legislation aligns EU law with the latest IMO requirements. As of 1 January 2015 a new limit of 0.1 % on the maximum allowable sulphur content of any fuel oil used on board ships within the European designated Suphur Emission Control Areas (SECAs) is introduced. Other areas are to achieve an cut, from 4.5 % down to 0.5 % by 1 January 2020.In view of the foreseen technical and operational challenges for the shipping industry to comply with the new standards, the Staff Working Paper outlines a series of assisting measures to foster sustainable shipping. In the short term the Paper highlights the existing frameworks that may be of assistance such as the TEN-T Work programme 2011, the Marco Pollo II Work programme for 2011 and the European Investment Bank's policy and instruments in support ...

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UK P&I Club issues bulletin regarding fuel switching safety

Sulphur Emissions Control Area has helped with the reduction of harmful emissions The UK P&I Club issues bulletin regarding fuel switching safety as follows:With reference to the United States Coast Guard (USCG) Marine Safety Alert 11-01 the Club wishes to reiterate advice given in the previous Bulletin 645 to increase awareness to potential claims that may arise from fuel switching issues. The Sulphur Emissions Control Area (SECA) off the European North West coast has been in effect for many years and has helped with the reduction of harmful emissions in that area. Following on from that success a joint United States, Canadian and French effort to develop a similar Emission Control Area (ECA) extending 200 miles off the coast of the North American continent is underway. It is probable that similar ECAs may appear elsewhere around the world in the future.A vessel entering and exiting such an area will be required by law to switch between heavy or intermediate bunker fuels and a more refined distillate fuel. This process carries with it certain risks which can lead to claimsIt is possible that complications may occur to the vessel's main power plant during this switch over period resulting in the vessel ...

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Finland is calling for easier terms aimed at reducing the sulphur content of fuels

Minister asks for flexibility in the implementation of 0.10% sulphur cap Finland is calling for easier terms in a proposed directive aimed at reducing the sulphur content of fuels used by ships at sea, according to a report in the Finnish newspaper Helsingin Sanomat.According to the report, a letter sent to the Commission asks for assurances that sufficient 0.10% fuel fuel be available by the time the directive takes effect in 2015. Environment minister Ville Niinistö is quoted as saying: "If these measures do not succeed Finland feels that the scheduling of the directive needs to be reconsidered. If the Commission raises its hands in the air, saying that it doesn't have enough time to do this in three years, then it needs to draw its own conclusions."The Finnish move reflect widespread concern among ferries and and short sea operators in the Baltic and North Sea areas who fear that even if sufficient compliant fuel is available the increased cost is likely to cause a modal shift away from sea transport.Helsingin Sanomat says that Finland's forest industry is especially worried by the prospect of increased sea transportation costs while the Confederation of Finnish Industry (EK) estimates that the directive could ...

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Implementing IMO sulphur limit proposals by 2020 is virtually impossible

A new report by Robin Meech and FGE A new report by Robin Meech and FGE says that implementing the IMO sulphur limit proposals by 2020 would be virtually impossible, requiring the refining industry to invest in more than 4 million b/d of extra secondary processing capacity, above that already scheduled. The reports findings add to a growing industry perception that abatement technology will be increasingly attractive.Outlook for Marine Bunkers and Fuel Oil to 2030 concludes that under pressure from the impending marine emissions legislation, the mix of fuels used in the shipping industry will proliferate, that on‐board scrubbing will become viable, initially for vessels operating in ECA areas, but subsequently for all newbuilds.The report contains around 105 pages with over 50 tables/charts and provides a comprehensive update of the current legislation, how the shipping and refining industries are likely to respond , as well as the implications in terms of bunker demand, price differentials and investments.Bunker demand has been forecast independently, built up from a region‐by‐region base with a particular focus on the anticipated effect of recent technical advances in scrubber design and fuel efficiency.On the refining side, the analysis is based on the detailed build up of capacity ...

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Guidelines to Port State Control regarding the enforcement of low-sulphur rules

The European Commission tightens up the guidelines for member states Brussels will give new guidelines to Port State Control regarding the enforcement of the low-sulphur rules while the European Commission will put forward the revision of the European Unions 2005 sulphur directive, which it will be in accordance with the 2015 and 2020 emission deadlines made by the IMO.A member state which has transposed the directive into its own laws then it is has to inform the commission and prove conformity. A tick box approach will ensure if the general meaning of the directive is the same in any national legislative text. This text has to be in accordance with the EU and the IMO. The percentage of sulphur in a fuel used in the emission control areas is below 0.1%and the other waters of Europe below 3.5% as of next year, and 0.5% as of 2020. The commission will then begin to ensure that member states properly enforce this text. It is now producing stricter guidelines to ensure that any non-compliance by vessels is detected.The commission is also looking to produce guidelines on how each member state reports its data. Brussels now wants to tighten up to ensure that ...

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