We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Thursday, 02 January 20
SULPHUR 2020 COMPENDIUM - HOW ARE INDIVIDUAL PORT STATES EXPECTED TO REACT? - STANDARD CLUB
 KNOWLEDGE TO ELEVATE
With the new sulphur limits soon to be in force, Standard Club has been investigating the ways in which certain jurisdictions are expected to react to violations.
We contacted our local correspondents from a variety of different ports, including Brazil, China, Denmark, Norway, Panama, Spain and Sweden, to build a compilation of what we believe is useful and practical knowledge for dealing with future sulphur claims.
We asked our correspondents the following series of questions:
-
Will compliant bunkers be available in your jurisdiction?
-
Which government body or organisation issues fines for sulphur violations?
-
What is the estimated potential value of fines?
-
Is there a possibility of criminal action for sulphur violations?
-
Can a ship be detained for violations? If so, will a club LOU be accepted to secure its release?
-
Is it possible to appeal fines?
-
What contingency measures are available for ships carrying non-compliant fuel?
The answers to these questions are as follows. If you have questions about any of these jurisdictions, or any jurisdictions which are not listed below, please contact your usual claims handler at the club for further assistance.
Brazil
-
Compliant bunkers will be available in Salvador, Sao Luis, Belem and Macapa.
-
Fines may be issued by the ANP, IBAMA (the Environmental Authority) or the Harbour Master´s Office at each port.
-
The estimated potential fines range from BRL 5,000 to BRL 2,000,000.
-
There is a possibility of criminal action for sulphur violations in Brazil.
-
A ship may be detained for sulphur violations until it is proved that there are bunkers within specification on board. Acceptance of a club LOU will depend on each individual case.
-
It is possible to appeal fines.
-
In the event of non-compliance, the Authorities will need to verify that the off-spec bunkers have been segregated on board.
China
-
Compliant bunkers should be available in China. However, members should check with local agents and the port authority before calling to confirm availability.
-
The local marine authority (the MSA) issues fines for sulphur violations.
-
According to the PRC Air Pollution Prevention and Control Law, shipowners may face administrative penalties ranging from RMB10,000 to RMB100,000.
-
While this is unlikely, there is a possibility for criminal action in the event of serious violations.
-
Ships can be detained, depending on the seriousness of the violation. It is not known whether a club LOU would be accepted.
-
Appeals of fines are unlikely to be successful if a violation has in fact occurred. However, owners may apply for a review of the fine if they suspect that the administrative procedures have been incorrectly applied (i.e. there has been no violation).
-
From 1 January 2020 if a ship is unable to obtain compliant bunkers she should submit a FONAR to the MSA before entering Chinese waters. From 1 March 2020 if a ship is carrying non-compliant bunkers in Chinese waters they can discharge the non-compliant bunkers, or (subject to MSA approval) retain the non-compliant bunkers on board after providing a letter of commitment not to use these bunkers in Chinese waters.
Denmark
-
Compliant bunkers will be available in Denmark.
-
The Port State Control and the police both administer fines for sulphur violations.
-
Fines for non-compliance can range from DKK 30,000 to DKK 300,000.
-
Criminal action may in some cases be brought for non-compliance. Fines are imposed by the police, following penalty proceedings and public court hearings. In cases of gross negligence, or of continuous violation of the sulphur cap, there is the possibility of imprisonment for up to two years.
-
A ship can be detained until it has taken the necessary steps to ensure compliance with the sulphur content regulations. Club LOUs will not be accepted to secure release of the ship.
-
Fines can be appealed through the usual judicial channels (at the Court of Appeal and potentially at the Supreme Court).
-
If the ship is not compliant with the sulphur regulations, it will be asked by officials to demonstrate that it has taken adequate steps to be compliant. The owner will have to demonstrate that they have established procedures on board the ship to ensure compliance. The owner will also have to provide documentation showing their attempts to obtain compliant bunkers.
Norway
-
Compliant bunkers will be available in Norway.
-
The Norwegian Maritime Authority (Sjøfartsdirektoratet) issues fines for violations.
-
The lowest possible fine is around NOK 79,886. Fines are typically around NOK 250,000, although this figure may be higher depending on the degree of negligence and/or guilt.
-
Criminal action may be brought for violations.
-
Arrest of the ship for violation of the sulphur limits is possible.
-
It is possible to appeal fines to the Norwegian Ministry of Climate and Environment.
-
In the event of non-compliance, compliant bunkers are available so that the non-compliant bunkers can be replaced.
Panama
-
Compliant bunkers will be available in Panama.
-
Fines will be administered by the Panama Maritime Authority (PMA) and the Panama Canal Authority (PCA).
-
The PMA and PCA will calculate fines based on the perceived seriousness of the violation. To date, there have been no known fines by the PMA or PCA, so it is difficult to say how they will deal with these incidents.
-
Currently there have not been any known criminal proceedings relating to sulphur violations.
-
A ship can be detained by both the PMA and PCA for violations, although this is seen to be unlikely. The PMA has in the past been vague regarding club LOU’s but the PCA regularly accepts them for other issues.
-
Administrative fines are generally unappealable.
-
There are limited options for ships to debunker non-compliant fuel at Panama.
Spain
-
Compliant bunkers will be available in Spain.
-
The Spanish Central Government Authority issues fines for sulphur violations. The Harbour Master’s office belongs to Merchant Marine General Management, which itself belongs to the Government Ministry in charge of public work.
-
There is no set figure for fines. Fines are usually around EUR 22,000 although they could be as high as EUR 180,000. In case of wilful actions, the fine could be as high as EUR 600,000. The Harbour Master will ask for a guarantee to permit the ship to sail (club LOUs are not accepted).
-
In theory there is a possibility of criminal action, but only if the use of off-spec bunkers was deliberate.
-
A ship can be detained for sulphur violations. In such a case, a club LOU will not be accepted. Authorities will only accept a cash deposit, a bond or a bank security issued by a Spanish Insurer or Bank.
-
It is possible to appeal fines, but success is unlikely.
-
Any non-compliant bunkers on board will be banned, even if not in use, and similar sanctions will be imposed unless the ship has a scrubber in good operational condition. In addition to the sampling of storage tanks, evidence of tank cleaning and a bunker delivery note will also be required on board.
Sweden
-
Compliant bunkers will be available in Sweden.
-
The Coast Guard will issue fines for sulphur violations.
-
The estimated value of fines is still under discussion. However, there is a risk that fines may be high value to deter non-compliance with the sulphur limits.
-
There are not expected to be any criminal repercussions for non-compliance, only fines.
-
In very extreme cases, ships can be detained for sulphur violations. It is difficult to predict whether the authorities will accept a club LOU in this situation.
-
It is possible to appeal fines.
-
In the event of non-compliance, there are many well established bunker operators in the region who can handle non-compliant bunkers.
Source: Standard Club
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Wednesday, 19 February 20
MINERS WELCOME INDONESIA'S NEW JOBS BILL THAT COULD SPUR COAL GROWTH - REUTERS
Miners have welcomed proposed changes to Indonesian mining rules under a new law aimed at boosting investment, though critics are concerned that th ...
Wednesday, 19 February 20
AS OCEAN TEMPERATURES RISE, SHIPOWNERS LOOK FOR WAYS TO COPE - WARTSILA
The world is heating up, and its oceans are no exception. According to the International Panel on Climate Change (IPCC), the oceans absorb the majo ...
Wednesday, 19 February 20
MARKET INSIGHT - INTERMODAL
The coronavirus outbreak is estimated to negatively affect global economy by at least EUR400bn this year, representing around the 0.4% of global GD ...
Tuesday, 18 February 20
WEEKLY MARKET ANALYSIS - ALLIED
Under such poorly performing market circumstances, many usually take the historical approach, in order to better understand and further analyze the ...
Tuesday, 18 February 20
ADARO SHIPPED 27 PERCENT OF ITS TOTAL COAL PRODUCTION IN 2019 TO INDIA AND CHINA
PT Adaro Energy Tbk (AE) produced 58.03 Mt of coal from PT Adaro Indonesia (AI), Balangan Coal Companies and Adaro Me ...
|
|
|
Showing 1121 to 1125 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Anglo American - United Kingdom
- Manunggal Multi Energi - Indonesia
- Simpson Spence & Young - Indonesia
- Attock Cement Pakistan Limited
- Gujarat Mineral Development Corp Ltd - India
- Antam Resourcindo - Indonesia
- SMC Global Power, Philippines
- Independent Power Producers Association of India
- Jaiprakash Power Ventures ltd
- Borneo Indobara - Indonesia
- Bhoruka Overseas - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Indo Tambangraya Megah - Indonesia
- Sindya Power Generating Company Private Ltd
- Vizag Seaport Private Limited - India
- Standard Chartered Bank - UAE
- Timah Investasi Mineral - Indoneisa
- Siam City Cement - Thailand
- Bukit Asam (Persero) Tbk - Indonesia
- Carbofer General Trading SA - India
- Wilmar Investment Holdings
- Binh Thuan Hamico - Vietnam
- Bulk Trading Sa - Switzerland
- SMG Consultants - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Coal and Oil Company - UAE
- Asmin Koalindo Tuhup - Indonesia
- Tata Chemicals Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Kapuas Tunggal Persada - Indonesia
- OPG Power Generation Pvt Ltd - India
- Kaltim Prima Coal - Indonesia
- Medco Energi Mining Internasional
- Bharathi Cement Corporation - India
- Sree Jayajothi Cements Limited - India
- Indian Energy Exchange, India
- Thiess Contractors Indonesia
- Videocon Industries ltd - India
- San Jose City I Power Corp, Philippines
- Dalmia Cement Bharat India
- Mjunction Services Limited - India
- Energy Development Corp, Philippines
- Eastern Coal Council - USA
- Planning Commission, India
- Mercator Lines Limited - India
- CIMB Investment Bank - Malaysia
- Mintek Dendrill Indonesia
- Central Electricity Authority - India
- Trasteel International SA, Italy
- Interocean Group of Companies - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Intertek Mineral Services - Indonesia
- Meralco Power Generation, Philippines
- Karaikal Port Pvt Ltd - India
- Economic Council, Georgia
- International Coal Ventures Pvt Ltd - India
- Wood Mackenzie - Singapore
- Formosa Plastics Group - Taiwan
- Aboitiz Power Corporation - Philippines
- Metalloyd Limited - United Kingdom
- Pendopo Energi Batubara - Indonesia
- GAC Shipping (India) Pvt Ltd
- Merrill Lynch Commodities Europe
- Kartika Selabumi Mining - Indonesia
- Petron Corporation, Philippines
- Rio Tinto Coal - Australia
- Eastern Energy - Thailand
- Toyota Tsusho Corporation, Japan
- LBH Netherlands Bv - Netherlands
- ICICI Bank Limited - India
- Alfred C Toepfer International GmbH - Germany
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- VISA Power Limited - India
- Georgia Ports Authority, United States
- Global Business Power Corporation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Kideco Jaya Agung - Indonesia
- Riau Bara Harum - Indonesia
- Salva Resources Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Indogreen Group - Indonesia
- Parliament of New Zealand
- Jindal Steel & Power Ltd - India
- Xindia Steels Limited - India
- Straits Asia Resources Limited - Singapore
- Port Waratah Coal Services - Australia
- European Bulk Services B.V. - Netherlands
- Pipit Mutiara Jaya. PT, Indonesia
- Romanian Commodities Exchange
- White Energy Company Limited
- Minerals Council of Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Coalindo Energy - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Iligan Light & Power Inc, Philippines
- Bangladesh Power Developement Board
- Bukit Baiduri Energy - Indonesia
- Indika Energy - Indonesia
- Singapore Mercantile Exchange
- Sojitz Corporation - Japan
- Sarangani Energy Corporation, Philippines
- McConnell Dowell - Australia
- Chettinad Cement Corporation Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Orica Mining Services - Indonesia
- Goldman Sachs - Singapore
- Grasim Industreis Ltd - India
- Renaissance Capital - South Africa
- Electricity Authority, New Zealand
- ASAPP Information Group - India
- Savvy Resources Ltd - HongKong
- Kumho Petrochemical, South Korea
- Bhushan Steel Limited - India
- Maheswari Brothers Coal Limited - India
- Africa Commodities Group - South Africa
- Leighton Contractors Pty Ltd - Australia
- Holcim Trading Pte Ltd - Singapore
- Vedanta Resources Plc - India
- Gujarat Sidhee Cement - India
- Barasentosa Lestari - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- South Luzon Thermal Energy Corporation
- Mercuria Energy - Indonesia
- Power Finance Corporation Ltd., India
- Electricity Generating Authority of Thailand
- PTC India Limited - India
- IHS Mccloskey Coal Group - USA
- Directorate General of MIneral and Coal - Indonesia
- Parry Sugars Refinery, India
- Petrochimia International Co. Ltd.- Taiwan
- Essar Steel Hazira Ltd - India
- CNBM International Corporation - China
- GMR Energy Limited - India
- Marubeni Corporation - India
- Malabar Cements Ltd - India
- The State Trading Corporation of India Ltd
- Coastal Gujarat Power Limited - India
- Sical Logistics Limited - India
- Madhucon Powers Ltd - India
- Oldendorff Carriers - Singapore
- Heidelberg Cement - Germany
- Ambuja Cements Ltd - India
- Miang Besar Coal Terminal - Indonesia
- India Bulls Power Limited - India
- Ministry of Transport, Egypt
- Bayan Resources Tbk. - Indonesia
- Tamil Nadu electricity Board
- Central Java Power - Indonesia
- The University of Queensland
- Australian Commodity Traders Exchange
- PetroVietnam Power Coal Import and Supply Company
- MS Steel International - UAE
- Maharashtra Electricity Regulatory Commission - India
- Ind-Barath Power Infra Limited - India
- Thai Mozambique Logistica
- Kepco SPC Power Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Billiton Holdings Pty Ltd - Australia
- Samtan Co., Ltd - South Korea
- TNB Fuel Sdn Bhd - Malaysia
- Sakthi Sugars Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- The Treasury - Australian Government
- Chamber of Mines of South Africa
- Cement Manufacturers Association - India
- Orica Australia Pty. Ltd.
- Deloitte Consulting - India
- Globalindo Alam Lestari - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Altura Mining Limited, Indonesia
- Sinarmas Energy and Mining - Indonesia
- Baramulti Group, Indonesia
- Edison Trading Spa - Italy
- New Zealand Coal & Carbon
- IEA Clean Coal Centre - UK
- SN Aboitiz Power Inc, Philippines
- Semirara Mining and Power Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Makarim & Taira - Indonesia
- London Commodity Brokers - England
- Uttam Galva Steels Limited - India
- Lanco Infratech Ltd - India
- Agrawal Coal Company - India
- Bukit Makmur.PT - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Global Green Power PLC Corporation, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Directorate Of Revenue Intelligence - India
- Indonesian Coal Mining Association
- Latin American Coal - Colombia
- Indian Oil Corporation Limited
- Ministry of Mines - Canada
- Australian Coal Association
- Bhatia International Limited - India
- Therma Luzon, Inc, Philippines
- Semirara Mining Corp, Philippines
- Gujarat Electricity Regulatory Commission - India
- Star Paper Mills Limited - India
- Ministry of Finance - Indonesia
- Energy Link Ltd, New Zealand
- GVK Power & Infra Limited - India
- Global Coal Blending Company Limited - Australia
- Aditya Birla Group - India
- AsiaOL BioFuels Corp., Philippines
- Siam City Cement PLC, Thailand
- Meenaskhi Energy Private Limited - India
- Price Waterhouse Coopers - Russia
- Larsen & Toubro Limited - India
- Rashtriya Ispat Nigam Limited - India
- Posco Energy - South Korea
- PowerSource Philippines DevCo
- TeaM Sual Corporation - Philippines
- Kobexindo Tractors - Indoneisa
- Commonwealth Bank - Australia
|
| |
| |
|
