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Tuesday, 04 June 19
MARPOL ANNEX VI - SULPHUR CAP 2020 - DEMYSTIFYING THE FONAR - SKULD
 KNOWLEDGE TO ELEVATE
Fuel Oil Non-Availability Report (FONAR) is primarily a discretionary tool for a Member State to lessen the breach of MARPOL Annex VI, it is not an exemption but rather a self-declaration by owners that a breach has or is about to occur.
IMO’s Marine Environment Protection Committee (“MEPC”) 74 published its resolutions on 20 May 2019 and specifically Section 5 deals with the ramifications of the aforementioned report.
The concerns over non-availability of globally compliant bunkers of 0.5% bear identical hallmarks of the implementation of the ECA zones and availability of 0.1% back in 2015.
There has been much discussion on whether owners may rely on the FONAR due to non-availability of compliant fuel.
However, how it will be applied by each Member State remains to be seen.
The FONAR consists of an immensely detailed questionnaire. Owners who find themselves in breach of Regulation 18 can make use of a FONAR. However, the evidential threshold is high and succeeding on a dispensation or reduction of a fine will depend on whether best efforts were made to:
Source compliant fuel;
Source local alternative sources.
That said, even unavailability is not a carte blanche to breaching MARPOL since alternative compliant fuels could have, most likely, been purchased such as 0.1% distillates.
To support a claim that all efforts were made to source complaint fuel, owners will need to furnish exhaustive evidence that a voyage plan was in place, that there were valid reasons for being unable to source compliant bunkers and/or operational issues which would have endangered the vessel had the non-compliant bunkers been burnt.
Owners can be sure that the Port State Control (PSC) inspectors will investigate other vessels which called at a port which allegedly did not have compliant fuel available in order to verify the truth of the statements contained within the report.
The PSC will also look for evidence of any fuel changeovers conducted outside of the jurisdiction of the Member States and whether the vessel had working emission control equipment during its visit.
Interestingly, the PSC will keep record of how many FONARs a vessel and/or their operators have requested in a period of twelve months. Any patterns of non-compliance by a fleet will be found out, sanctioned and prevented from submitting future FONARs.
Stringent investigations are likely to ensue following the submission of a FONAR and the information will be shared between Member States to report on compliant fuel oil supply issues.
Owners should beware that only a small quantity of non-compliant bunkers should be stemmed, if at all, as entering a Member State will result in the entirety of the non-compliant bunkers being debunkered at owners’ expense to bring the vessel within compliance.
The new FONAR wording is set out at Annex 1 of MEPC 74.
Source: SKULD
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Saturday, 06 April 19
SUPRAMAX: IT WAS A POOR WEEK OVERALL FOR THE BALTIC SUPRAMAX INDEX, WHICH LOST GROUND - BALTIC BRIEFING
Capesize
The Capesize market over the past week looked to have found a floor on Tuesday with the BCI 5TC at $3460 before firming into the rest ...
Thursday, 04 April 19
OVERSUPPLY STILL MAJOR CHALLENGE WARNS ICS
Speaking in Istanbul, Simon Bennett, Deputy Secretary General of the International Chamber of Shipping (ICS) warned that avoiding overcapacity and ...
Thursday, 04 April 19
GLENCORE, TOHOKU ELECTRIC SET COAL CONTRACT PRICE AT $94.75/T - SOURCE, REUTERS REPORTED
Global miner Glencore and Japan’s Tohoku Electric Power agreed on a price of $94.75 per tonne for supplies of thermal coal from Australia for ...
Monday, 01 April 19
FORCE MAJEURE SUCCESS NOT A SEA CHANGE - BALTIC EXCHANGE
KNOWLEDGE TO ELEVATE
It is difficult to successfully argue that contractual performance has been prevented or delayed by force majeure. This i ...
Monday, 01 April 19
AUSTRALIAN COAL AT RISK FROM CHINA MOVE, WARNS GOVERNMENT REPORT - SYDNEY MORNING HERALD
A new government report warns China’s restrictions on coal imports is the number one risk for Australian coal this year and could lead to a s ...
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- Bayan Resources Tbk. - Indonesia
- Gujarat Sidhee Cement - India
- Sarangani Energy Corporation, Philippines
- Cigading International Bulk Terminal - Indonesia
- Economic Council, Georgia
- Standard Chartered Bank - UAE
- Tata Chemicals Ltd - India
- Sindya Power Generating Company Private Ltd
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Intertek Mineral Services - Indonesia
- SMC Global Power, Philippines
- Ambuja Cements Ltd - India
- Energy Development Corp, Philippines
- Bharathi Cement Corporation - India
- Petrochimia International Co. Ltd.- Taiwan
- Offshore Bulk Terminal Pte Ltd, Singapore
- Petron Corporation, Philippines
- Independent Power Producers Association of India
- AsiaOL BioFuels Corp., Philippines
- Rashtriya Ispat Nigam Limited - India
- Siam City Cement PLC, Thailand
- Bukit Baiduri Energy - Indonesia
- Energy Link Ltd, New Zealand
- Sical Logistics Limited - India
- PTC India Limited - India
- CIMB Investment Bank - Malaysia
- Eastern Coal Council - USA
- Iligan Light & Power Inc, Philippines
- Videocon Industries ltd - India
- Coalindo Energy - Indonesia
- Parliament of New Zealand
- GN Power Mariveles Coal Plant, Philippines
- Karaikal Port Pvt Ltd - India
- Electricity Generating Authority of Thailand
- Rio Tinto Coal - Australia
- Timah Investasi Mineral - Indoneisa
- Renaissance Capital - South Africa
- Oldendorff Carriers - Singapore
- Interocean Group of Companies - India
- White Energy Company Limited
- Kartika Selabumi Mining - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Global Business Power Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- GVK Power & Infra Limited - India
- Thai Mozambique Logistica
- Gujarat Electricity Regulatory Commission - India
- Globalindo Alam Lestari - Indonesia
- Minerals Council of Australia
- Bhoruka Overseas - Indonesia
- IHS Mccloskey Coal Group - USA
- London Commodity Brokers - England
- Anglo American - United Kingdom
- Holcim Trading Pte Ltd - Singapore
- Xindia Steels Limited - India
- Semirara Mining Corp, Philippines
- Aditya Birla Group - India
- OPG Power Generation Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Carbofer General Trading SA - India
- Makarim & Taira - Indonesia
- Chamber of Mines of South Africa
- Savvy Resources Ltd - HongKong
- Antam Resourcindo - Indonesia
- Romanian Commodities Exchange
- Kobexindo Tractors - Indoneisa
- Borneo Indobara - Indonesia
- Bangladesh Power Developement Board
- Lanco Infratech Ltd - India
- Samtan Co., Ltd - South Korea
- Kalimantan Lumbung Energi - Indonesia
- Indian Energy Exchange, India
- Bukit Asam (Persero) Tbk - Indonesia
- Heidelberg Cement - Germany
- Indian Oil Corporation Limited
- Coal and Oil Company - UAE
- The State Trading Corporation of India Ltd
- Riau Bara Harum - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- SN Aboitiz Power Inc, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Orica Mining Services - Indonesia
- Meralco Power Generation, Philippines
- Price Waterhouse Coopers - Russia
- Baramulti Group, Indonesia
- Marubeni Corporation - India
- VISA Power Limited - India
- Central Electricity Authority - India
- Electricity Authority, New Zealand
- Eastern Energy - Thailand
- Billiton Holdings Pty Ltd - Australia
- GAC Shipping (India) Pvt Ltd
- Manunggal Multi Energi - Indonesia
- Australian Commodity Traders Exchange
- Commonwealth Bank - Australia
- Vijayanagar Sugar Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Maharashtra Electricity Regulatory Commission - India
- Vizag Seaport Private Limited - India
- Posco Energy - South Korea
- Indika Energy - Indonesia
- IEA Clean Coal Centre - UK
- Indonesian Coal Mining Association
- Bhushan Steel Limited - India
- Therma Luzon, Inc, Philippines
- Ceylon Electricity Board - Sri Lanka
- Miang Besar Coal Terminal - Indonesia
- New Zealand Coal & Carbon
- Indo Tambangraya Megah - Indonesia
- Kideco Jaya Agung - Indonesia
- Kepco SPC Power Corporation, Philippines
- The Treasury - Australian Government
- Sojitz Corporation - Japan
- Latin American Coal - Colombia
- Pipit Mutiara Jaya. PT, Indonesia
- Bulk Trading Sa - Switzerland
- Edison Trading Spa - Italy
- Larsen & Toubro Limited - India
- Jaiprakash Power Ventures ltd
- Attock Cement Pakistan Limited
- Meenaskhi Energy Private Limited - India
- Straits Asia Resources Limited - Singapore
- Karbindo Abesyapradhi - Indoneisa
- Kaltim Prima Coal - Indonesia
- The University of Queensland
- Port Waratah Coal Services - Australia
- Directorate Of Revenue Intelligence - India
- India Bulls Power Limited - India
- Banpu Public Company Limited - Thailand
- Cement Manufacturers Association - India
- Medco Energi Mining Internasional
- Planning Commission, India
- Pendopo Energi Batubara - Indonesia
- Tamil Nadu electricity Board
- Singapore Mercantile Exchange
- Mjunction Services Limited - India
- Parry Sugars Refinery, India
- Metalloyd Limited - United Kingdom
- Global Coal Blending Company Limited - Australia
- Essar Steel Hazira Ltd - India
- Salva Resources Pvt Ltd - India
- Ind-Barath Power Infra Limited - India
- MS Steel International - UAE
- Krishnapatnam Port Company Ltd. - India
- Jindal Steel & Power Ltd - India
- Indogreen Group - Indonesia
- Wilmar Investment Holdings
- LBH Netherlands Bv - Netherlands
- Chettinad Cement Corporation Ltd - India
- Kumho Petrochemical, South Korea
- Ministry of Mines - Canada
- Wood Mackenzie - Singapore
- Malabar Cements Ltd - India
- Orica Australia Pty. Ltd.
- Global Green Power PLC Corporation, Philippines
- Mercator Lines Limited - India
- Africa Commodities Group - South Africa
- Coastal Gujarat Power Limited - India
- South Luzon Thermal Energy Corporation
- Star Paper Mills Limited - India
- Semirara Mining and Power Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Australian Coal Association
- Asmin Koalindo Tuhup - Indonesia
- Kapuas Tunggal Persada - Indonesia
- ASAPP Information Group - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Central Java Power - Indonesia
- Binh Thuan Hamico - Vietnam
- Vedanta Resources Plc - India
- European Bulk Services B.V. - Netherlands
- Ministry of Finance - Indonesia
- Sinarmas Energy and Mining - Indonesia
- SMG Consultants - Indonesia
- Madhucon Powers Ltd - India
- PNOC Exploration Corporation - Philippines
- Bukit Makmur.PT - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Ministry of Transport, Egypt
- Dalmia Cement Bharat India
- Alfred C Toepfer International GmbH - Germany
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- GMR Energy Limited - India
- Simpson Spence & Young - Indonesia
- Mercuria Energy - Indonesia
- Power Finance Corporation Ltd., India
- Aboitiz Power Corporation - Philippines
- Thiess Contractors Indonesia
- Sree Jayajothi Cements Limited - India
- Agrawal Coal Company - India
- Leighton Contractors Pty Ltd - Australia
- Jorong Barutama Greston.PT - Indonesia
- Goldman Sachs - Singapore
- Trasteel International SA, Italy
- Georgia Ports Authority, United States
- Bhatia International Limited - India
- McConnell Dowell - Australia
- Directorate General of MIneral and Coal - Indonesia
- Altura Mining Limited, Indonesia
- Siam City Cement - Thailand
- Sakthi Sugars Limited - India
- Uttam Galva Steels Limited - India
- Grasim Industreis Ltd - India
- Formosa Plastics Group - Taiwan
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- International Coal Ventures Pvt Ltd - India
- TeaM Sual Corporation - Philippines
- CNBM International Corporation - China
- Gujarat Mineral Development Corp Ltd - India
- San Jose City I Power Corp, Philippines
- Toyota Tsusho Corporation, Japan
- ICICI Bank Limited - India
- PowerSource Philippines DevCo
- Deloitte Consulting - India
- Mintek Dendrill Indonesia
- Merrill Lynch Commodities Europe
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