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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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- Antam Resourcindo - Indonesia
- Sical Logistics Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Sarangani Energy Corporation, Philippines
- Energy Development Corp, Philippines
- Semirara Mining Corp, Philippines
- Economic Council, Georgia
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- Star Paper Mills Limited - India
- Essar Steel Hazira Ltd - India
- Tata Chemicals Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Commonwealth Bank - Australia
- McConnell Dowell - Australia
- Marubeni Corporation - India
- Wood Mackenzie - Singapore
- Planning Commission, India
- Therma Luzon, Inc, Philippines
- GAC Shipping (India) Pvt Ltd
- Altura Mining Limited, Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kepco SPC Power Corporation, Philippines
- India Bulls Power Limited - India
- Mintek Dendrill Indonesia
- Binh Thuan Hamico - Vietnam
- Ambuja Cements Ltd - India
- Madhucon Powers Ltd - India
- Bayan Resources Tbk. - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- New Zealand Coal & Carbon
- SMC Global Power, Philippines
- Salva Resources Pvt Ltd - India
- Grasim Industreis Ltd - India
- Power Finance Corporation Ltd., India
- TeaM Sual Corporation - Philippines
- Dalmia Cement Bharat India
- IEA Clean Coal Centre - UK
- CNBM International Corporation - China
- Siam City Cement PLC, Thailand
- Aboitiz Power Corporation - Philippines
- Singapore Mercantile Exchange
- Parry Sugars Refinery, India
- Bharathi Cement Corporation - India
- Jaiprakash Power Ventures ltd
- Parliament of New Zealand
- Sojitz Corporation - Japan
- Intertek Mineral Services - Indonesia
- Petron Corporation, Philippines
- Bangladesh Power Developement Board
- Anglo American - United Kingdom
- Holcim Trading Pte Ltd - Singapore
- Banpu Public Company Limited - Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Uttam Galva Steels Limited - India
- Sinarmas Energy and Mining - Indonesia
- Wilmar Investment Holdings
- Straits Asia Resources Limited - Singapore
- Indo Tambangraya Megah - Indonesia
- Xindia Steels Limited - India
- Indika Energy - Indonesia
- Kobexindo Tractors - Indoneisa
- Gujarat Mineral Development Corp Ltd - India
- Georgia Ports Authority, United States
- Pipit Mutiara Jaya. PT, Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Bulk Trading Sa - Switzerland
- Indonesian Coal Mining Association
- Formosa Plastics Group - Taiwan
- Bhatia International Limited - India
- Billiton Holdings Pty Ltd - Australia
- Sindya Power Generating Company Private Ltd
- San Jose City I Power Corp, Philippines
- Standard Chartered Bank - UAE
- SN Aboitiz Power Inc, Philippines
- Rio Tinto Coal - Australia
- Riau Bara Harum - Indonesia
- Aditya Birla Group - India
- Barasentosa Lestari - Indonesia
- Eastern Coal Council - USA
- Semirara Mining and Power Corporation, Philippines
- White Energy Company Limited
- Trasteel International SA, Italy
- Coalindo Energy - Indonesia
- Ministry of Finance - Indonesia
- Simpson Spence & Young - Indonesia
- Eastern Energy - Thailand
- Jindal Steel & Power Ltd - India
- Maheswari Brothers Coal Limited - India
- The Treasury - Australian Government
- Samtan Co., Ltd - South Korea
- Bukit Makmur.PT - Indonesia
- Thiess Contractors Indonesia
- OPG Power Generation Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Ministry of Transport, Egypt
- Agrawal Coal Company - India
- Pendopo Energi Batubara - Indonesia
- Heidelberg Cement - Germany
- Kapuas Tunggal Persada - Indonesia
- Orica Mining Services - Indonesia
- Goldman Sachs - Singapore
- Price Waterhouse Coopers - Russia
- Jorong Barutama Greston.PT - Indonesia
- International Coal Ventures Pvt Ltd - India
- Indian Energy Exchange, India
- South Luzon Thermal Energy Corporation
- Savvy Resources Ltd - HongKong
- AsiaOL BioFuels Corp., Philippines
- GMR Energy Limited - India
- Merrill Lynch Commodities Europe
- Chettinad Cement Corporation Ltd - India
- Sakthi Sugars Limited - India
- Bukit Baiduri Energy - Indonesia
- Central Java Power - Indonesia
- PNOC Exploration Corporation - Philippines
- Karaikal Port Pvt Ltd - India
- Sree Jayajothi Cements Limited - India
- Alfred C Toepfer International GmbH - Germany
- Central Electricity Authority - India
- Medco Energi Mining Internasional
- Chamber of Mines of South Africa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- CIMB Investment Bank - Malaysia
- Minerals Council of Australia
- ASAPP Information Group - India
- Ind-Barath Power Infra Limited - India
- ICICI Bank Limited - India
- Meenaskhi Energy Private Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Global Business Power Corporation, Philippines
- IHS Mccloskey Coal Group - USA
- Neyveli Lignite Corporation Ltd, - India
- Toyota Tsusho Corporation, Japan
- Cigading International Bulk Terminal - Indonesia
- Larsen & Toubro Limited - India
- Rashtriya Ispat Nigam Limited - India
- Electricity Generating Authority of Thailand
- Electricity Authority, New Zealand
- Global Green Power PLC Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Makarim & Taira - Indonesia
- Indian Oil Corporation Limited
- GVK Power & Infra Limited - India
- Interocean Group of Companies - India
- Orica Australia Pty. Ltd.
- Globalindo Alam Lestari - Indonesia
- Ministry of Mines - Canada
- Thai Mozambique Logistica
- Energy Link Ltd, New Zealand
- Kideco Jaya Agung - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Africa Commodities Group - South Africa
- Lanco Infratech Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Mjunction Services Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Leighton Contractors Pty Ltd - Australia
- The University of Queensland
- Australian Coal Association
- Kumho Petrochemical, South Korea
- Vijayanagar Sugar Pvt Ltd - India
- Australian Commodity Traders Exchange
- Vizag Seaport Private Limited - India
- The State Trading Corporation of India Ltd
- Meralco Power Generation, Philippines
- Baramulti Group, Indonesia
- Renaissance Capital - South Africa
- Coal and Oil Company - UAE
- Port Waratah Coal Services - Australia
- Gujarat Electricity Regulatory Commission - India
- European Bulk Services B.V. - Netherlands
- Kartika Selabumi Mining - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Tamil Nadu electricity Board
- Latin American Coal - Colombia
- Mercuria Energy - Indonesia
- Oldendorff Carriers - Singapore
- Timah Investasi Mineral - Indoneisa
- Carbofer General Trading SA - India
- PTC India Limited - India
- Edison Trading Spa - Italy
- MS Steel International - UAE
- Coastal Gujarat Power Limited - India
- SMG Consultants - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Miang Besar Coal Terminal - Indonesia
- Gujarat Sidhee Cement - India
- Borneo Indobara - Indonesia
- Siam City Cement - Thailand
- PowerSource Philippines DevCo
- Bahari Cakrawala Sebuku - Indonesia
- Mercator Lines Limited - India
- Global Coal Blending Company Limited - Australia
- Kaltim Prima Coal - Indonesia
- Independent Power Producers Association of India
- Metalloyd Limited - United Kingdom
- Vedanta Resources Plc - India
- VISA Power Limited - India
- Maharashtra Electricity Regulatory Commission - India
- LBH Netherlands Bv - Netherlands
- Bhushan Steel Limited - India
- Directorate Of Revenue Intelligence - India
- TNB Fuel Sdn Bhd - Malaysia
- Videocon Industries ltd - India
- London Commodity Brokers - England
- Manunggal Multi Energi - Indonesia
- Romanian Commodities Exchange
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Attock Cement Pakistan Limited
- Bhoruka Overseas - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Posco Energy - South Korea
- Malabar Cements Ltd - India
- Indogreen Group - Indonesia
- Deloitte Consulting - India
- Cement Manufacturers Association - India
- Asmin Koalindo Tuhup - Indonesia
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