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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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Tuesday, 26 February 19
THE RELATIVELY DISAPPOINTING SCENE PORTRAYED IN THE DRY BULK MARKET RIGHT NOW - ALLIED SHIPBROKING
The relatively disappointing scene portrayed in the dry bulk market right now (especially in the Capesize segment) is undoubtedly one of the prevai ...
Friday, 22 February 19
AUSTRALIAN HIGH CV THERMAL COAL PRICES AT 19-MONTH LOW, BUT NOT FOR LONG - WOOD MACKENZIE
The benchmark Newcastle high energy thermal coal price has fallen from US$100/tonne at the turn of the new year to US$88/tonne. Thermal coal has be ...
Wednesday, 20 February 19
EFFECTIVE NOTICES OF ARBITRATION - AVOIDING WASTED COSTS AND A POTENTIALLY TIME-BARRED CLAIM
KNOWLEDGE TO ELEVATE
In a recent case, The Amity [2017], charterers successfully set aside an arbitration award on the basis that ow ...
Wednesday, 20 February 19
SHIPPING MARKET INSIGHT - INERMODAL
Market experts mostly agree that the recent dry bulk market downtrend was caused by seasonal slowdown amid the Chinese New Year celebrations in com ...
Tuesday, 19 February 19
AUSTRALIA'S COAL FUTURE UNDER THREAT AS MORE CHANGES HIT FOSSIL FUELS GLOBALLY - ABC
Two disparate decisions from opposite corners of the world have sounded warnings for the future of Australia’s coal industry.
...
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- Semirara Mining and Power Corporation, Philippines
- Africa Commodities Group - South Africa
- Tata Chemicals Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- London Commodity Brokers - England
- Renaissance Capital - South Africa
- Mercuria Energy - Indonesia
- Kepco SPC Power Corporation, Philippines
- Australian Commodity Traders Exchange
- Siam City Cement - Thailand
- Posco Energy - South Korea
- Interocean Group of Companies - India
- Barasentosa Lestari - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Sindya Power Generating Company Private Ltd
- Energy Link Ltd, New Zealand
- Meenaskhi Energy Private Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Salva Resources Pvt Ltd - India
- Rio Tinto Coal - Australia
- Independent Power Producers Association of India
- GAC Shipping (India) Pvt Ltd
- Pendopo Energi Batubara - Indonesia
- Medco Energi Mining Internasional
- South Luzon Thermal Energy Corporation
- Malabar Cements Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Merrill Lynch Commodities Europe
- Gujarat Sidhee Cement - India
- Tamil Nadu electricity Board
- Grasim Industreis Ltd - India
- Kartika Selabumi Mining - Indonesia
- GMR Energy Limited - India
- Metalloyd Limited - United Kingdom
- Sarangani Energy Corporation, Philippines
- The Treasury - Australian Government
- Heidelberg Cement - Germany
- Bhushan Steel Limited - India
- Kapuas Tunggal Persada - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Semirara Mining Corp, Philippines
- Altura Mining Limited, Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Sakthi Sugars Limited - India
- Parliament of New Zealand
- Indian Energy Exchange, India
- Vijayanagar Sugar Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Sree Jayajothi Cements Limited - India
- Anglo American - United Kingdom
- Thai Mozambique Logistica
- Karaikal Port Pvt Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Formosa Plastics Group - Taiwan
- Larsen & Toubro Limited - India
- Ministry of Transport, Egypt
- SMG Consultants - Indonesia
- Georgia Ports Authority, United States
- Uttam Galva Steels Limited - India
- San Jose City I Power Corp, Philippines
- Asmin Koalindo Tuhup - Indonesia
- LBH Netherlands Bv - Netherlands
- Orica Mining Services - Indonesia
- Aditya Birla Group - India
- Kideco Jaya Agung - Indonesia
- Banpu Public Company Limited - Thailand
- Aboitiz Power Corporation - Philippines
- The University of Queensland
- Indo Tambangraya Megah - Indonesia
- Lanco Infratech Ltd - India
- Binh Thuan Hamico - Vietnam
- Goldman Sachs - Singapore
- Bhoruka Overseas - Indonesia
- PowerSource Philippines DevCo
- Bayan Resources Tbk. - Indonesia
- Cement Manufacturers Association - India
- Latin American Coal - Colombia
- Straits Asia Resources Limited - Singapore
- Bharathi Cement Corporation - India
- Savvy Resources Ltd - HongKong
- Eastern Energy - Thailand
- Oldendorff Carriers - Singapore
- Global Green Power PLC Corporation, Philippines
- SMC Global Power, Philippines
- The State Trading Corporation of India Ltd
- Global Coal Blending Company Limited - Australia
- Coal and Oil Company - UAE
- Jaiprakash Power Ventures ltd
- Indika Energy - Indonesia
- Kobexindo Tractors - Indoneisa
- Port Waratah Coal Services - Australia
- Thiess Contractors Indonesia
- SN Aboitiz Power Inc, Philippines
- Commonwealth Bank - Australia
- Singapore Mercantile Exchange
- Antam Resourcindo - Indonesia
- PNOC Exploration Corporation - Philippines
- Vedanta Resources Plc - India
- PetroVietnam Power Coal Import and Supply Company
- Coastal Gujarat Power Limited - India
- Eastern Coal Council - USA
- Central Java Power - Indonesia
- Madhucon Powers Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Samtan Co., Ltd - South Korea
- Chettinad Cement Corporation Ltd - India
- Parry Sugars Refinery, India
- Sical Logistics Limited - India
- Toyota Tsusho Corporation, Japan
- Planning Commission, India
- Siam City Cement PLC, Thailand
- Orica Australia Pty. Ltd.
- Vizag Seaport Private Limited - India
- Electricity Authority, New Zealand
- Dalmia Cement Bharat India
- Jorong Barutama Greston.PT - Indonesia
- Trasteel International SA, Italy
- Simpson Spence & Young - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bukit Makmur.PT - Indonesia
- Edison Trading Spa - Italy
- TeaM Sual Corporation - Philippines
- Chamber of Mines of South Africa
- Directorate Of Revenue Intelligence - India
- Coalindo Energy - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sinarmas Energy and Mining - Indonesia
- Petron Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- CIMB Investment Bank - Malaysia
- Borneo Indobara - Indonesia
- International Coal Ventures Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- Rashtriya Ispat Nigam Limited - India
- Bangladesh Power Developement Board
- Economic Council, Georgia
- PTC India Limited - India
- Iligan Light & Power Inc, Philippines
- Videocon Industries ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bulk Trading Sa - Switzerland
- Mercator Lines Limited - India
- Holcim Trading Pte Ltd - Singapore
- White Energy Company Limited
- Miang Besar Coal Terminal - Indonesia
- Manunggal Multi Energi - Indonesia
- VISA Power Limited - India
- Alfred C Toepfer International GmbH - Germany
- Jindal Steel & Power Ltd - India
- MS Steel International - UAE
- Makarim & Taira - Indonesia
- European Bulk Services B.V. - Netherlands
- GVK Power & Infra Limited - India
- Energy Development Corp, Philippines
- IEA Clean Coal Centre - UK
- Gujarat Mineral Development Corp Ltd - India
- Wilmar Investment Holdings
- Minerals Council of Australia
- Sojitz Corporation - Japan
- Billiton Holdings Pty Ltd - Australia
- Ceylon Electricity Board - Sri Lanka
- Globalindo Alam Lestari - Indonesia
- Essar Steel Hazira Ltd - India
- Global Business Power Corporation, Philippines
- Ministry of Mines - Canada
- Xindia Steels Limited - India
- Ambuja Cements Ltd - India
- Kumho Petrochemical, South Korea
- Neyveli Lignite Corporation Ltd, - India
- New Zealand Coal & Carbon
- Central Electricity Authority - India
- Bukit Baiduri Energy - Indonesia
- ASAPP Information Group - India
- Karbindo Abesyapradhi - Indoneisa
- Kalimantan Lumbung Energi - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Power Finance Corporation Ltd., India
- Price Waterhouse Coopers - Russia
- Attock Cement Pakistan Limited
- Maheswari Brothers Coal Limited - India
- Marubeni Corporation - India
- ICICI Bank Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Deloitte Consulting - India
- Australian Coal Association
- Standard Chartered Bank - UAE
- Mintek Dendrill Indonesia
- Riau Bara Harum - Indonesia
- Ministry of Finance - Indonesia
- IHS Mccloskey Coal Group - USA
- AsiaOL BioFuels Corp., Philippines
- Electricity Generating Authority of Thailand
- Baramulti Group, Indonesia
- CNBM International Corporation - China
- Ind-Barath Power Infra Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Mjunction Services Limited - India
- Intertek Mineral Services - Indonesia
- Indonesian Coal Mining Association
- Kaltim Prima Coal - Indonesia
- Wood Mackenzie - Singapore
- Bhatia International Limited - India
- India Bulls Power Limited - India
- Carbofer General Trading SA - India
- Agrawal Coal Company - India
- Petrochimia International Co. Ltd.- Taiwan
- McConnell Dowell - Australia
- Meralco Power Generation, Philippines
- OPG Power Generation Pvt Ltd - India
- Indogreen Group - Indonesia
- Romanian Commodities Exchange
- Indian Oil Corporation Limited
- Timah Investasi Mineral - Indoneisa
- Star Paper Mills Limited - India
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