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.
|
|
Saturday, 30 November 19
PANAMAX: LEVELS IMPROVED IN THE PACIFIC MARKET TOO WITH $11,000 BEING CONCLUDED ON AN 81,000DWT SHIP FOR AN INDONESIA TO CHINA COAL TRIP - BALTIC BRIEFING
Capesize
The market has been well supported over the past week, led primarily by the Atlantic Basin. After bottoming last week, sentiment was s ...
Friday, 29 November 19
FITCHRATINGS MAINTAINS NEGATIVE 2020 OUTLOOK ON SHIPPING, AS TIGHTER SUPPLY HELPS, BUT SOFTER DEMAND DRAGS
Fitch’s Sector Outlook: Negative
We maintain a negative sector outlook for global shipping because of the forecast slowdown of ...
Friday, 29 November 19
INDONESIA PRODUCES 390 MLN TONNES OF COAL IN JAN-SEPT: MINISTER - REUTERS
Indonesia’s production of coal for the January-September period was 390 million tonnes, Energy and Mineral Resources Minister Arifin Tasrif s ...
Wednesday, 27 November 19
SHIPPING MARKET INSIGHT - INTERMODAL
As the end of the fourth quarter is approaching, one could say that the wet market has maintained the strong pace observed during the third qu ...
Tuesday, 26 November 19
PREPARATIONS INTENSIFY AS 1 JANUARY 2020 GLOBAL CUT IN SULPHUR IN SHIP'S FUEL OIL LOOMS: IMO
“IMO 2020” requirements for ships to cut sulphur oxide emissions enter into effect in just over one month’s time. This will signi ...
|
|
|
Showing 1266 to 1270 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- LBH Netherlands Bv - Netherlands
- GAC Shipping (India) Pvt Ltd
- Commonwealth Bank - Australia
- Wilmar Investment Holdings
- Pipit Mutiara Jaya. PT, Indonesia
- Therma Luzon, Inc, Philippines
- Siam City Cement PLC, Thailand
- Indian Oil Corporation Limited
- Pendopo Energi Batubara - Indonesia
- IEA Clean Coal Centre - UK
- IHS Mccloskey Coal Group - USA
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indika Energy - Indonesia
- CIMB Investment Bank - Malaysia
- Aditya Birla Group - India
- Independent Power Producers Association of India
- Port Waratah Coal Services - Australia
- Ambuja Cements Ltd - India
- Bhoruka Overseas - Indonesia
- Kartika Selabumi Mining - Indonesia
- Globalindo Alam Lestari - Indonesia
- Agrawal Coal Company - India
- Asmin Koalindo Tuhup - Indonesia
- London Commodity Brokers - England
- Coastal Gujarat Power Limited - India
- Semirara Mining and Power Corporation, Philippines
- GVK Power & Infra Limited - India
- PowerSource Philippines DevCo
- Aboitiz Power Corporation - Philippines
- Bharathi Cement Corporation - India
- Directorate Of Revenue Intelligence - India
- Straits Asia Resources Limited - Singapore
- Posco Energy - South Korea
- Edison Trading Spa - Italy
- Meralco Power Generation, Philippines
- Electricity Generating Authority of Thailand
- Petrochimia International Co. Ltd.- Taiwan
- PNOC Exploration Corporation - Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- International Coal Ventures Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- Attock Cement Pakistan Limited
- The University of Queensland
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- GMR Energy Limited - India
- Larsen & Toubro Limited - India
- Timah Investasi Mineral - Indoneisa
- Gujarat Electricity Regulatory Commission - India
- Coalindo Energy - Indonesia
- Videocon Industries ltd - India
- Energy Development Corp, Philippines
- Heidelberg Cement - Germany
- MS Steel International - UAE
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- TNB Fuel Sdn Bhd - Malaysia
- Ceylon Electricity Board - Sri Lanka
- White Energy Company Limited
- Gujarat Sidhee Cement - India
- Directorate General of MIneral and Coal - Indonesia
- Metalloyd Limited - United Kingdom
- Vedanta Resources Plc - India
- Standard Chartered Bank - UAE
- Dalmia Cement Bharat India
- Thiess Contractors Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Ministry of Finance - Indonesia
- Planning Commission, India
- Krishnapatnam Port Company Ltd. - India
- Vijayanagar Sugar Pvt Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Manunggal Multi Energi - Indonesia
- The Treasury - Australian Government
- Riau Bara Harum - Indonesia
- Bhatia International Limited - India
- Orica Australia Pty. Ltd.
- VISA Power Limited - India
- Simpson Spence & Young - Indonesia
- SMG Consultants - Indonesia
- Latin American Coal - Colombia
- PTC India Limited - India
- Anglo American - United Kingdom
- Binh Thuan Hamico - Vietnam
- ASAPP Information Group - India
- Uttam Galva Steels Limited - India
- Antam Resourcindo - Indonesia
- Bulk Trading Sa - Switzerland
- Tamil Nadu electricity Board
- Bayan Resources Tbk. - Indonesia
- Mercator Lines Limited - India
- Star Paper Mills Limited - India
- Marubeni Corporation - India
- Neyveli Lignite Corporation Ltd, - India
- India Bulls Power Limited - India
- Central Java Power - Indonesia
- Indogreen Group - Indonesia
- Bangladesh Power Developement Board
- Leighton Contractors Pty Ltd - Australia
- Mercuria Energy - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Electricity Authority, New Zealand
- Baramulti Group, Indonesia
- Kepco SPC Power Corporation, Philippines
- Central Electricity Authority - India
- Karaikal Port Pvt Ltd - India
- Africa Commodities Group - South Africa
- Kapuas Tunggal Persada - Indonesia
- Essar Steel Hazira Ltd - India
- Orica Mining Services - Indonesia
- Siam City Cement - Thailand
- South Luzon Thermal Energy Corporation
- Bukit Makmur.PT - Indonesia
- Economic Council, Georgia
- SN Aboitiz Power Inc, Philippines
- Chamber of Mines of South Africa
- Ministry of Mines - Canada
- Eastern Energy - Thailand
- Ind-Barath Power Infra Limited - India
- Carbofer General Trading SA - India
- Energy Link Ltd, New Zealand
- Bahari Cakrawala Sebuku - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Bhushan Steel Limited - India
- Sarangani Energy Corporation, Philippines
- Parliament of New Zealand
- Petron Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Power Finance Corporation Ltd., India
- CNBM International Corporation - China
- OPG Power Generation Pvt Ltd - India
- Meenaskhi Energy Private Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Wood Mackenzie - Singapore
- Maharashtra Electricity Regulatory Commission - India
- Australian Commodity Traders Exchange
- Semirara Mining Corp, Philippines
- Xindia Steels Limited - India
- Intertek Mineral Services - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Australian Coal Association
- Sojitz Corporation - Japan
- Savvy Resources Ltd - HongKong
- Lanco Infratech Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Samtan Co., Ltd - South Korea
- Interocean Group of Companies - India
- Makarim & Taira - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Minerals Council of Australia
- Kideco Jaya Agung - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Ministry of Transport, Egypt
- SMC Global Power, Philippines
- Kumho Petrochemical, South Korea
- Thai Mozambique Logistica
- Indian Energy Exchange, India
- McConnell Dowell - Australia
- The State Trading Corporation of India Ltd
- Altura Mining Limited, Indonesia
- Sindya Power Generating Company Private Ltd
- Jorong Barutama Greston.PT - Indonesia
- Toyota Tsusho Corporation, Japan
- Georgia Ports Authority, United States
- Global Green Power PLC Corporation, Philippines
- Malabar Cements Ltd - India
- Sical Logistics Limited - India
- Parry Sugars Refinery, India
- TeaM Sual Corporation - Philippines
- Global Business Power Corporation, Philippines
- Alfred C Toepfer International GmbH - Germany
- San Jose City I Power Corp, Philippines
- Bukit Baiduri Energy - Indonesia
- Kobexindo Tractors - Indoneisa
- PetroVietnam Power Coal Import and Supply Company
- Mintek Dendrill Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Madhucon Powers Ltd - India
- Mjunction Services Limited - India
- Goldman Sachs - Singapore
- Eastern Coal Council - USA
- Cigading International Bulk Terminal - Indonesia
- Barasentosa Lestari - Indonesia
- European Bulk Services B.V. - Netherlands
- Iligan Light & Power Inc, Philippines
- Medco Energi Mining Internasional
- Bukit Asam (Persero) Tbk - Indonesia
- Renaissance Capital - South Africa
- New Zealand Coal & Carbon
- Vizag Seaport Private Limited - India
- Singapore Mercantile Exchange
- Formosa Plastics Group - Taiwan
- Cement Manufacturers Association - India
- Oldendorff Carriers - Singapore
- Maheswari Brothers Coal Limited - India
- ICICI Bank Limited - India
- Romanian Commodities Exchange
- Banpu Public Company Limited - Thailand
- Karbindo Abesyapradhi - Indoneisa
- Sree Jayajothi Cements Limited - India
- Deloitte Consulting - India
- Price Waterhouse Coopers - Russia
- Trasteel International SA, Italy
- Indonesian Coal Mining Association
- Tata Chemicals Ltd - India
- Indo Tambangraya Megah - Indonesia
- Borneo Indobara - Indonesia
- Rio Tinto Coal - Australia
- Salva Resources Pvt Ltd - India
- Kaltim Prima Coal - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Grasim Industreis Ltd - India
- Merrill Lynch Commodities Europe
- Billiton Holdings Pty Ltd - Australia
- Jindal Steel & Power Ltd - India
- Chettinad Cement Corporation Ltd - India
- Sakthi Sugars Limited - India
- Coal and Oil Company - UAE
|
| |
| |
|
