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Skuld advice on North American ECA Zones and Compliance

On 1 January 2015 North America will implement a switch from the use of 1% sulphur content fuel to 0.10% sulphur content fuel, pursuant to MARPOL Annex VI regulations.  The Skuld P&I Club has a dedicated loss prevention section for resources on air emissions regulations and compliance.  There is now very little time left before the upcoming new regulations under MARPOL Annex VI enter in to force on 1 January 2015. Therefore, the Club strongly advises operators who have no immediate plans to trade to or from an ECA, to familiarize themselves with the new regulations and ensure they are able to comply with them. Vessels on worldwide trading may get new voyage orders that will see them go to an ECA and a shipowner that did not have business in an ECA zone before may suddenly see a lucrative opportunity appear. In such cases it will pay a great dividend to have prepared in advance. As for regulatory compliance with US laws, the Association can only urge operators to seek to be always in strict compliance. Large fines, other penalties and even prison terms have resulted not infrequently from violating US laws, in particular those relating to MARPOL offences. There is no ...

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World’s first low emission gas carriers to cut the environmental impact of chemical transport

Two new liquefied natural gas (LNG) powered sea vessels have recently been named on Teesside .  Operated by ship owner Anthony Veder, the new ships will carry Liquefied Ethylene Gas (LEG) from SABIC’s Wilton facility on Teesside to manufacturing plants in North-West Europe and Scandinavia.  The chemicals will be used to make a range of everyday items such as food packaging, PVC, detergents and adhesives.  The state of the art ships will drastically cut both sulphur oxides (SOx) and nitrogen oxides (NOx) emissions compared to the vessels they are replacing.  Switching to alternative fuels for ships, such as LNG, instead of traditional fuel oils is one of the solutions identified by Anthony Veder to help SABIC further improve its environmental performance.  “As a responsible global company, SABIC is committed to providing high-quality products to its customers while doing all it reasonably can in order to reduce the environmental impact of its operations,” said SABIC’s European Supply Chain Director of Chemicals Wouter Vermijs while attending the naming ceremony.  “We are proud to be the first chemical company in the world to be transporting our products on carriers running on LNG and to have an innovative partner in Anthony Veder.” The new ...

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CMA CGM to implement Low Sulphur Surcharge on all ECAs

CMA CGM has announced that from January 1st, 2015 the Group will implement a Low Sulphur Surcharge on all its trades in the Emission Control Areas (ECAs) and for all cargoes.  CMA CGM enforces its long-term commitment to protect the environment with a focus on sustainable development. The Group will do its outmost to comply with the new regulation as from January 1st, 2015. This directive will require ships to use fuel with a maximum allowed sulphur content of 0.1% in the ECA. Impacts of SOx limit reduction on shipping lines Extra costs Marine Diesel Fuel with no more than 0.1% sulphur content is more expensive than Low Sulphur Fuel Oil (with 1.0% sulphur content). This higher price represents an additional cost of more than USD 100 million every year for CMA CGM, inflating expenditure. Furthermore, technical issues when running the main engine with DO (Diesel Oil), such as temperature, viscosity or the size of the DO tank, will command to upgrade of some vessels to comply with the new rules. This will also generate extra costs. As a consequence : CMA CGM will implement a Low Sulphur Surcharge as from January 1st, 2015.  Experts keep on working on technical innovations to ...

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TSA Lines Develop Westbound Low-Sulfur Fuel Guideline

New formula addresses changes to vessel and sailing characteristics, and the shift to more costly 0.1%-emission marine gas oil.  U.S. exporters shipping container cargo to Asia will see changes in their overall freight costs beginning January 1, 2015, as current low-sulfur fuel charges are adjusted to reflect larger vessels, slow-steaming and stricter sulfur oxide (SOx) emissions standards. Member shipping lines in the Transpacific Stabilization Agreement (TSA)’s westbound section are recommending a quarterly low-sulfur charge of US$47 per 40-foot container (FEU) and $38 per 20-foot container (TEU) from the U.S. West Coast, and $95 per FEU and $76 per TEU from the East and Gulf Coasts, effective January 1. The modified charge – which may appear as an adjusted low-sulfur component within the bunker charge in some contracts during a transition period until those contracts expire – reflects both changes in per container operating costs from larger ships, improved fuel consumption and longer transit times, and the shift to burning cleaner, costlier marine gas oil (MGO) mandated within North American coastal waters as of January 1. TSA’s current recommended low-sulfur fuel charge in effect through December 31, 2014 is $21 per FEU and $17 per TEU from the West Coast, and ...

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Thermo King’s reefers offer choices to reduce GHG emissions

Thermo King, a manufacturer of transport temperature control solutions for a variety of mobile applications and a brand of Ingersoll Rand, announced that it will offer its intermodal and marine transport refrigeration customers a choice on how and when to reduce their own greenhouse gas (GHG) footprint. In 2015, Thermo King will offer marine reefer units with a next generation refrigerant that is equally energy efficient and reliable as the current refrigerant yet has about half the global warming potential (GWP). At the same time, customers who want to transition their existing reefer units can do so without any technical adjustments. Thermo King will offer replacement service on existing reefers through its dealer network. "Marine transportation is unique from other forms of transport because of the global nature of the business," said Michel van Roozendaal, vice president, global marine, rail and bus for Thermo King. "Refrigeration technology must be reliable, safe and efficient through a variety of extreme climates. This next generation refrigerant solution reduces GWP without sacrificing these factors.This new offering allows shipping lines to have peace of mind with a high performing unit while also reducing environmental impact." In anticipation of the European Union F-Gas Regulation, which requires ...

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Shipping’s CO2 emissions to rise despite improved efficiency

Trade growth and better market conditions for international shipping could undermine any improvements made in fuel efficiency, both recent fuel saving efforts and those achieved as future ships become increasingly energy efficient. This was the key message from authors of the updated greenhouse gas (GHG) study commissioned by the International Maritime Organization (IMO) as they presented the 2014 study to the IMO’s 67th Marine Environment Protection Committee (MEPC) meeting last week. Looking further ahead, CO2 emissions from international shipping are projected to rise by at least 50% to 2050 despite fleet average efficiency improvements of about 40%, according to Dr. Jasper Faber from CE Delft. The 50% increase to 2050 was the lowest business as usual (BAU) scenario, while the highest in the study projected a 250% increase in CO2 emissions from shipping to 2050. Source: CE DelftIn the onset, I was open with you propecia before and after has changed my existence. It has become much more fun, and now I have to run. Just as it is incredible to sit.

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Parker Kittiwake doubles production of the Procal Emissions Analyser

Parker Kittiwake has doubled its manufacturing capacity in direct response to a sizeable increase in industry demand ahead of the imminent 2015 ECA deadline. As a result of the exponential increase in orders over the last year, the company has doubled its revenue. In-situ CEMS are the most effective method for measuring emissions, and continuous monitoring of sulphur emissions is one of two methods that can be used to verify the scrubbers' performance, according to IMO guidelines. Exhaust gases from the combustion of residual and distillate fuels can be analysed, demonstrating compliance to the relevant authorities in a receiving port both in ECAs and in international waters. In contrast to extractive sampling where a gas sample needs to be physically extracted from the system for analysis, ‘in-situ' monitoring provides a continuous, real time measurement of the content of your exhaust gases, with data provided instantaneously on a display that can be installed in the engine room and on the bridge. Procal has made significant investment in production equipment and database automation, streamlining its manufacturing process and enabling the company to reduce lead-times to ensure that CEMS analysers can be supplied to a rapidly growing global customer base. Additional capacity has ...

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Industry considers challenges of the new sulphur regulation

IMO regulators have arrived at the next stage of cleaner shipping regulation, sulphur cap in hand, and will alter the face of shipping as a result. Shipowners fear that the new regulation will create an uneven environment with the new sulphur regulations offering an incentive for unscrupulous ship operators to ignore the regulation allowing them to undercut operators who do comply. "When you have a very high compliance cost, coupled with a weak enforcement environment the temptation not to comply is created," argues Roger Strevens, VP global head of environment at Wallenius Wilhelmsen Logistics and a member of the Trident Alliance, an owners group formed in July this year to offer an owners’ view on the regulation. Strevens is under no illusions how the industry will be affected by the new operating landscape. Up to now, he says, fuel has comprised 50% of an owner’s costs, from January that will leap by another 50% as compliant owners will need to either use scrubbers, if they are fitted, or buy low sulphur fuel (LSF) at around US$900/tonne. "Few industries could absorb that level of cost increase and shipowners are not used to passing on such costs to customers," claims Strevens. According ...

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Alfa Laval PureSOx to be installed aboard EXMAR newbuilds

Alfa Laval PureSOx systems will soon be installed by Hanjin Heavy Industries and Construction aboard two LPG carriers for Belgian owner/operator EXMAR. Because these vessels are newbuilds, the installations place Alfa Laval’s planning, documentation and delivery capabilities in the spotlight. Hanjin Heavy Industries and Construction recently was contracted by Belgian energy logistics company EXMAR for newbuild LPG carriers that will join EXMAR’s existing LPG fleet of around 30 vessels. The new LPG carriers, each with a capacity of 38,000 m3, will be built at Hanjin’s Subic Shipyard in the Philippines and delivered to EXMAR in Q1 and Q2 of 2016. Two of these vessels will be equipped with Alfa Laval PureSOx scrubber systems for exhaust gas cleaning, which will be delivered to the Subic Shipyard in December 2014 and March 2015. The systems will be configured as hybrids, able to operate in an open loop with seawater or in a closed loop with circulation water. Each multiple-inlet system will serve a two-stroke Doosan MDT 6S59ME-B 9.3 main engine and three Doosan MAN 8L23/30H Mk2 auxiliary engines. As newbuilds, these installations place especially high focus on Alfa Laval’s order execution capabilities. “The choice of exhaust gas cleaning from Alfa Laval is ...

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Hamburg Sud increases goal for CO2 reduction

Hamburg Süd has achieved its environmental goal of reducing the CO2e emissions of its fleet by 26 percent by the year 2020, compared to 2009, well ahead of schedule. This is due to a number of measures, including investments in the energy efficiency of the shipping company’s own ships, the expansion of the average ship size within the newbuilding programme, the chartering of energy-efficient ships and the further optimisation of vessel deployment. All in all, these activities together have led to a significantly more positive effect on CO2e emissions reduction than originally forecasted. The newly formulated CO2e goal specifies a reduction of emissions by 45 percent between 2009 and 2020 and encompasses the shipping company’s own and chartered container ships per unit of transport performance (TEUxkm). The CO2e unit of measurement, carbon dioxide equivalent, not only considers carbon dioxide but also other emissions produced during the combustion process (e.g. methane gas) in terms of their impact on the climate. More detailed information, particularly regarding the environmental balance sheet of the entire shipping group, can be found on Hamburg Süd’s newly restructured and redesigned website under the area. Source and Image Credit: Hamburg Sud GroupIn the onset, I was explicit with ...

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