Tag: IMO 2020

According to Reuters, the tighten rules on ship's sulphur emissions set by IMO from 1st January 2020, burden the profit outlook for Germany's container shipping line "Hapag-Lloyd" for this year, after its successful year of 2019.

The price of VLSFO has increased in recent months, indicating worries that there is not enough of the fuel to comply with sulphur cap, Reuters reports. Namely, VLSFO has began trading at levels that can be compared with marine gasoil.

As the global clean-fuel started to coming into effect from 1st of January, several tests have been carried out by AmSpec Services along with a unit of Lloyd’s Register. Specifically the testing companies examined newer, low-sulfur marine blends acquired in Antwerp, Belgium, Houston and Singapore.

As we are approaching the end of another exciting year for shipping, without a doubt the focus of everyone ahead of 2020 will be on IMO sulphur cap. This issue, along with decarbonization in general, has emerged as a main priority for the sector, with companies trying to find ways to cut their emissions. In this article, we take a look back at 2019, and we identify the key environmental moments that left their mark.

If we had to choose one - or maybe two - words to describe 2019 for the shipping industry, these would be: human-focused. Despite the fact that 2020 sulphur cap was on everyone’s mind this year, we saw many significant developments in key human areas. From mental health issues, to women in shipping and safety culture, the industry seems to be putting its people first, trying to boost equality and – most importantly – safety.

During the second SAFETY4SEA Singapore Forum, Mr. Nick Makar, Senior Vice President, Maritime Administration / Regulatory Affairs, International Registries, Inc., which provides administrative and technical support to the Republic of the Marshall Islands (RMI) Maritime and Corporate Registries,  gave his insight on the RMI Perspective of IMO 2020. Mr. Makar discussed the existing regulatory framework for the enforcement of air emission standards under MARPOL Annex VI, and looked at the various measures incorporated into national maritime policies for achieving 2020 compliance.

Compliance is a major concern in light of the new regulations concerning pollution from shipping; whatsoever, no central policing agency as well as several countries have not signed up to them yet. Reuters reports that refiners and shipping companies are expected to spend billions of dollars in the following years in order to ensure fuel and engine compliance. Yet, as enforcement of MARPOL Annex VI, set by the UN rests with individual countries and flag states, means that for some routes and regions, compliance may be inconsistent.

In light of the soon approaching Sulphur cap, both shipowners and charterers should prepare to comply with the SOx regulations and potentially deal with the risks and responsibilities of each party associated with the new regulations in chartering contracts, the Japan P&I Club advises.

In fact, the International Chamber of Shipping (ICS), the European Community Shipowners’ Associations (ECSA), as well as the Spanish Shipowners’ Association (ANAVE) organized an event dedicated to the decarbonization of shipping, during COP 25, the UN Climate Change Conference, in Madrid.

The Clean Shipping Alliance (CSA) 2020 is advising those shipowners looking to install scrubbers in order to meet global sulphur cap requirements, to make sure that manufacturers, shipyards and installers are using quality, high-end materials.