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.
|
|
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.
...
|
|
|
Showing 1461 to 1465 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Borneo Indobara - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Straits Asia Resources Limited - Singapore
- Siam City Cement PLC, Thailand
- Global Business Power Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Essar Steel Hazira Ltd - India
- Price Waterhouse Coopers - Russia
- Pendopo Energi Batubara - Indonesia
- IHS Mccloskey Coal Group - USA
- Kobexindo Tractors - Indoneisa
- Global Coal Blending Company Limited - Australia
- OPG Power Generation Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Dalmia Cement Bharat India
- Kideco Jaya Agung - Indonesia
- London Commodity Brokers - England
- SMC Global Power, Philippines
- Mintek Dendrill Indonesia
- Heidelberg Cement - Germany
- Vijayanagar Sugar Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Madhucon Powers Ltd - India
- Indonesian Coal Mining Association
- Riau Bara Harum - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Oldendorff Carriers - Singapore
- PNOC Exploration Corporation - Philippines
- MS Steel International - UAE
- Kaltim Prima Coal - Indonesia
- Renaissance Capital - South Africa
- Bukit Baiduri Energy - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Ind-Barath Power Infra Limited - India
- Star Paper Mills Limited - India
- Kepco SPC Power Corporation, Philippines
- Tata Chemicals Ltd - India
- Thiess Contractors Indonesia
- Kartika Selabumi Mining - Indonesia
- Coastal Gujarat Power Limited - India
- Sree Jayajothi Cements Limited - India
- Rio Tinto Coal - Australia
- Australian Coal Association
- Tamil Nadu electricity Board
- VISA Power Limited - India
- Attock Cement Pakistan Limited
- Electricity Authority, New Zealand
- Minerals Council of Australia
- SN Aboitiz Power Inc, Philippines
- Merrill Lynch Commodities Europe
- Meralco Power Generation, Philippines
- Orica Mining Services - Indonesia
- Aboitiz Power Corporation - Philippines
- Holcim Trading Pte Ltd - Singapore
- Electricity Generating Authority of Thailand
- Coalindo Energy - Indonesia
- Thai Mozambique Logistica
- Central Java Power - Indonesia
- Indian Energy Exchange, India
- Intertek Mineral Services - Indonesia
- Coal and Oil Company - UAE
- Banpu Public Company Limited - Thailand
- Mercator Lines Limited - India
- Karaikal Port Pvt Ltd - India
- Port Waratah Coal Services - Australia
- PetroVietnam Power Coal Import and Supply Company
- Commonwealth Bank - Australia
- PowerSource Philippines DevCo
- Medco Energi Mining Internasional
- Lanco Infratech Ltd - India
- Agrawal Coal Company - India
- Bukit Makmur.PT - Indonesia
- Vedanta Resources Plc - India
- ASAPP Information Group - India
- Bulk Trading Sa - Switzerland
- TeaM Sual Corporation - Philippines
- Ministry of Finance - Indonesia
- Anglo American - United Kingdom
- Global Green Power PLC Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- Ceylon Electricity Board - Sri Lanka
- Maheswari Brothers Coal Limited - India
- Central Electricity Authority - India
- Maharashtra Electricity Regulatory Commission - India
- Carbofer General Trading SA - India
- Posco Energy - South Korea
- Indo Tambangraya Megah - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Trasteel International SA, Italy
- Mercuria Energy - Indonesia
- Bhatia International Limited - India
- PTC India Limited - India
- Sarangani Energy Corporation, Philippines
- Bayan Resources Tbk. - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indika Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Barasentosa Lestari - Indonesia
- Energy Link Ltd, New Zealand
- Uttam Galva Steels Limited - India
- Metalloyd Limited - United Kingdom
- Singapore Mercantile Exchange
- Chamber of Mines of South Africa
- Videocon Industries ltd - India
- Bhushan Steel Limited - India
- New Zealand Coal & Carbon
- Petron Corporation, Philippines
- Sojitz Corporation - Japan
- LBH Netherlands Bv - Netherlands
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- SMG Consultants - Indonesia
- Edison Trading Spa - Italy
- Larsen & Toubro Limited - India
- Parliament of New Zealand
- The University of Queensland
- Jindal Steel & Power Ltd - India
- International Coal Ventures Pvt Ltd - India
- Australian Commodity Traders Exchange
- Ministry of Transport, Egypt
- European Bulk Services B.V. - Netherlands
- Krishnapatnam Port Company Ltd. - India
- South Luzon Thermal Energy Corporation
- Petrochimia International Co. Ltd.- Taiwan
- Parry Sugars Refinery, India
- Wilmar Investment Holdings
- Gujarat Electricity Regulatory Commission - India
- CNBM International Corporation - China
- India Bulls Power Limited - India
- Latin American Coal - Colombia
- Sakthi Sugars Limited - India
- Samtan Co., Ltd - South Korea
- CIMB Investment Bank - Malaysia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Malabar Cements Ltd - India
- Economic Council, Georgia
- Karbindo Abesyapradhi - Indoneisa
- Baramulti Group, Indonesia
- Africa Commodities Group - South Africa
- ICICI Bank Limited - India
- Therma Luzon, Inc, Philippines
- McConnell Dowell - Australia
- Vizag Seaport Private Limited - India
- Antam Resourcindo - Indonesia
- Interocean Group of Companies - India
- The Treasury - Australian Government
- Simpson Spence & Young - Indonesia
- Savvy Resources Ltd - HongKong
- The State Trading Corporation of India Ltd
- Salva Resources Pvt Ltd - India
- Gujarat Sidhee Cement - India
- Alfred C Toepfer International GmbH - Germany
- Meenaskhi Energy Private Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Semirara Mining Corp, Philippines
- Manunggal Multi Energi - Indonesia
- Bhoruka Overseas - Indonesia
- GVK Power & Infra Limited - India
- Bangladesh Power Developement Board
- Kumho Petrochemical, South Korea
- Romanian Commodities Exchange
- Mjunction Services Limited - India
- Makarim & Taira - Indonesia
- Toyota Tsusho Corporation, Japan
- Power Finance Corporation Ltd., India
- White Energy Company Limited
- Bharathi Cement Corporation - India
- Ambuja Cements Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Grasim Industreis Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Semirara Mining and Power Corporation, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- GAC Shipping (India) Pvt Ltd
- Pipit Mutiara Jaya. PT, Indonesia
- IEA Clean Coal Centre - UK
- Jaiprakash Power Ventures ltd
- Formosa Plastics Group - Taiwan
- Altura Mining Limited, Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Chettinad Cement Corporation Ltd - India
- Goldman Sachs - Singapore
- Eastern Energy - Thailand
- Wood Mackenzie - Singapore
- Georgia Ports Authority, United States
- Sindya Power Generating Company Private Ltd
- Energy Development Corp, Philippines
- Deloitte Consulting - India
- Ministry of Mines - Canada
- Miang Besar Coal Terminal - Indonesia
- Globalindo Alam Lestari - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Timah Investasi Mineral - Indoneisa
- Eastern Coal Council - USA
- GN Power Mariveles Coal Plant, Philippines
- Standard Chartered Bank - UAE
- Aditya Birla Group - India
- Sical Logistics Limited - India
- Indian Oil Corporation Limited
- Kalimantan Lumbung Energi - Indonesia
- Binh Thuan Hamico - Vietnam
- Xindia Steels Limited - India
- San Jose City I Power Corp, Philippines
- Independent Power Producers Association of India
- Kapuas Tunggal Persada - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Planning Commission, India
- Orica Australia Pty. Ltd.
- Iligan Light & Power Inc, Philippines
- Marubeni Corporation - India
- GMR Energy Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Cement Manufacturers Association - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Indogreen Group - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Siam City Cement - Thailand
- AsiaOL BioFuels Corp., Philippines
|
| |
| |
|
