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Thursday, 25 October 18
WHAT DOES THE "IMO 2020" REGULATION REALLY SAY? A QUICK GUIDE - BIMCO
 KNOWLEDGE TO ELEVATE
The shipping industry has all eyes firmly fixed on the topic, but what exactly do the “IMO 2020” global sulphur cap regulations say? This guide looks at five highly relevant topics, how to comply and how the regulation will be enforced.
The right fuel
As of 1 January 2020, all ships are required to burn fuel with a sulphur content of no more than 0.5% (Regulation 14.1.3, MARPOL Annex VI) unless fitted with an exhaust gas emissions cleaner (scrubber) capable of reducing sulphur emissions to 0.5% or less (Regulation 4, MARPOL Annex VI). Regulation 4 also allows for the use of alternative fuels. This means that before midnight on 31 December 2019, ships must take on board enough 0.5% fuel to be able to reach their next bunkering port after the new regulation comes into force.
The carriage ban
Apart from ships that have scrubbers, all other ships that have “residual” fuel with a sulphur content higher than 0.5% on board will have to remove it. A total ban on the carriage of residual fuel (excluding ships operating scrubbers) will come in to force during the first half of 2020 – most likely on 1 March. After this date port state control will check ships’ bunker tanks for non-compliant fuel.
The scrubbers
Scrubbers are permitted by Regulation 4 of MARPOL Annex VI, but no technical requirements are given. Three main designs are available: open, closed and hybrid. Open loop scrubbers use and discharge seawater as part of the scrubber process and their use may be restricted in some waters. This means that a ship will need to carry a stock of compliant 0.5% fuel when the scrubber cannot be used.
The enforcement
The 2020 global cap will apply to all ships flying the flag of a state that has ratified MARPOL Annex VI and/or calling at a port or passing through the waters of a state that has ratified the Convention. In real terms this means that the Sulphur cap will apply to 96% of the world’s fleet. How the cap will be enforced will vary from jurisdiction to jurisdiction and it will be left to each port state to determine the level of fines imposed and if ships will be detained. Ships should monitor and maintain a log of exhaust emissions. A failure to properly maintain the log or make false entries is likely to be considered a non-compliance by port state control and other authorities, even if exhaust emission levels are within limits. After the ban on ships carrying fuel with a sulphur content greater than 0.5% comes into force in 2020, port state control is likely to survey bunker tanks to check compliance.
What to keep in mind
Developing a ship-specific implementation plan is necessary to prepare for 1 January 2020. Such a plan should cover issues such as:
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Having a minimum quantity of 0.5% fuel on board by the end of December 2019
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Fuel management on board the ship – co-mingling, compatibility and separation
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Availability of compliant fuel
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Tank cleaning after switching to new fuels
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De-bunkering of non-compliant and residual fuel before the carriage ban
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Monitoring and logging emissions
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Charter party issues
Source: BIMCO
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Monday, 29 October 18
IMPLEMENTATION OF SULPHUR 2020 LIMIT - CARRIAGE BAN ADOPTED - IMO
An amendment to support consistent implementation of the forthcoming 0.50% limit on sulphur in ships fuel oil was adopted by the International Mari ...
Monday, 29 October 18
SUPRAMAX: THE ASIAN AREA SAW FALLING RATES, WITH A 61,000DWT FIXING DELIVERY KOHSICHANG TRIP VIA INDONESIA, REDELIVERY INDIA, AT $10,500 - BALTIC BRIEFING
Capesize
A market of two halves for most of the week with rates in the Atlantic firming and easing in the East for most of the week, but then, ...
Friday, 26 October 18
SHIP OPERATING COSTS EXPECTED TO RISE IN 2018 AND 2019 - MOORE STEPHENS
Total vessel operating costs in the shipping industry are expected to rise by 2.7% in 2018 and by 3.1% in 2019, according to our latest survey.
...
Friday, 26 October 18
SEVERAL CONTRACTIONS IN GLOBAL STEEL PRODUCTION - JEFFREY LANDSBERG
World Steel Association data released today shows that global crude steel production totaled approximately 151.7 million tons in September. T ...
Wednesday, 24 October 18
MARKET INSIGHT - NASSOS SOULAKIS
Looking at 2018 SnP activity, it is evident that Greek, Chinese and North European (German and Norwegian) owners are the top buying nationalities, ...
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- PowerSource Philippines DevCo
- Kobexindo Tractors - Indoneisa
- IEA Clean Coal Centre - UK
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- Chamber of Mines of South Africa
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- Trasteel International SA, Italy
- Tamil Nadu electricity Board
- Port Waratah Coal Services - Australia
- Bhoruka Overseas - Indonesia
- Indika Energy - Indonesia
- Larsen & Toubro Limited - India
- White Energy Company Limited
- Ind-Barath Power Infra Limited - India
- Bhatia International Limited - India
- Ambuja Cements Ltd - India
- Meenaskhi Energy Private Limited - India
- Krishnapatnam Port Company Ltd. - India
- Karaikal Port Pvt Ltd - India
- Energy Development Corp, Philippines
- Parliament of New Zealand
- Star Paper Mills Limited - India
- Mercator Lines Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bhushan Steel Limited - India
- Videocon Industries ltd - India
- Coastal Gujarat Power Limited - India
- Timah Investasi Mineral - Indoneisa
- Altura Mining Limited, Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Global Business Power Corporation, Philippines
- Kartika Selabumi Mining - Indonesia
- Toyota Tsusho Corporation, Japan
- Essar Steel Hazira Ltd - India
- Bukit Makmur.PT - Indonesia
- Deloitte Consulting - India
- Indian Energy Exchange, India
- Siam City Cement - Thailand
- Bharathi Cement Corporation - India
- Bayan Resources Tbk. - Indonesia
- Metalloyd Limited - United Kingdom
- Indian Oil Corporation Limited
- Kumho Petrochemical, South Korea
- Cement Manufacturers Association - India
- International Coal Ventures Pvt Ltd - India
- Vizag Seaport Private Limited - India
- Indo Tambangraya Megah - Indonesia
- Coalindo Energy - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Goldman Sachs - Singapore
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- Eastern Energy - Thailand
- The University of Queensland
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- Indonesian Coal Mining Association
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- Global Green Power PLC Corporation, Philippines
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- PetroVietnam Power Coal Import and Supply Company
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- Ministry of Transport, Egypt
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- Merrill Lynch Commodities Europe
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- Sakthi Sugars Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Lanco Infratech Ltd - India
- Wilmar Investment Holdings
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- MS Steel International - UAE
- Siam City Cement PLC, Thailand
- Baramulti Group, Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Jaiprakash Power Ventures ltd
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Samtan Co., Ltd - South Korea
- Cigading International Bulk Terminal - Indonesia
- Wood Mackenzie - Singapore
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- GMR Energy Limited - India
- India Bulls Power Limited - India
- CNBM International Corporation - China
- Heidelberg Cement - Germany
- Latin American Coal - Colombia
- SMG Consultants - Indonesia
- Parry Sugars Refinery, India
- Standard Chartered Bank - UAE
- Asmin Koalindo Tuhup - Indonesia
- Energy Link Ltd, New Zealand
- Barasentosa Lestari - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- TeaM Sual Corporation - Philippines
- ICICI Bank Limited - India
- Planning Commission, India
- Banpu Public Company Limited - Thailand
- Intertek Mineral Services - Indonesia
- Xindia Steels Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Sojitz Corporation - Japan
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Directorate General of MIneral and Coal - Indonesia
- Mjunction Services Limited - India
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- Miang Besar Coal Terminal - Indonesia
- Madhucon Powers Ltd - India
- Petron Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Ministry of Mines - Canada
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- Bangladesh Power Developement Board
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- Australian Coal Association
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- Rashtriya Ispat Nigam Limited - India
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- OPG Power Generation Pvt Ltd - India
- Eastern Coal Council - USA
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- New Zealand Coal & Carbon
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- Chettinad Cement Corporation Ltd - India
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- Thiess Contractors Indonesia
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- Malabar Cements Ltd - India
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- Simpson Spence & Young - Indonesia
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