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