• 2019 October 21 14:13

    Sulphur 2020: stakeholders prepare for a sea change from 1 January 2020

    From 1 January 2020, sulphur oxide emissions from ships will be reduced considerably under a forthcoming International Maritime Organization (IMO) rule. This will have significant benefits for human health and the environment – but also represents a challenge for the industry, IMO said in its release.

    The preparedness of all stakeholders for this significant change - as well as its challenges – were highlighted during a Symposium on IMO 2020 and Alternative Fuels, held at IMO, on Thursday 17 and Friday 18 October. The symposium brought together a range of speakers, including those from Member Governments, as well as from shipping, refineries, fuel oil suppliers and legal professionals.

    "Collaboration among key stakeholders is essential for the smooth landing of IMO 2020," IMO Secretary-General Kitack Lim said, opening the symposium, which was attended by over 300 delegates. He highlighted the tremendous amount of work undertaken to prepare for IMO 2020 by all stakeholders, since the 2020 date was confirmed in 2016, including a series of guidance and guidelines for shipowners as well as flag and port States.

    From 1 January 2020, the "IMO 2020" rule means that the limit for sulphur in fuel oil used on board ships operating outside designated emission control areas will be reduced to 0.50% m/m (mass by mass) – while in designated emission control areas (ECAs) the limit will remain at 0.10%. The current limit is 3.50% so the change is significant and - for most ships – will mean a switch to new types of compliant fuel oils, so-called very low sulphur fuel oil (VLSFO), or marine gas/diesel oil. The VLSFO blends are new to the market.

    Member States speaking at the symposium, including representatives from Denmark, Japan, Marshall Islands and Singapore, said that they were ready as flag and port States to implement and enforce the sulphur 2020 limit. Stakeholder meetings were a feature in many countries, bringing together industry and government officials to ensure preparedness.

    In terms of supply of the new fuel oil needed to meet the 2020 limit, representatives from IPIECA, representing the oil and gas industry, and IBIA, representing the bunker industry, confirmed that supply of the low sulphur fuel oil was expected to be readily available in most locations and is already available in some. Many ships will be looking to load complaint fuel oil well before the end of 2019. However, there was an expectation of price volatility and supply and demand would have to find a new balance which could take time – especially given that this involves many different actors, from refiners, to bunker suppliers, to ships and the shipping industry.

    "It is all going to be about market dynamics - but supply and demand will get in balance. It will not be an easy transition, but we will get there," said Eddy van Bouwel, Chair, marine fuels committee, IPIECA.

    Speakers touched on the challenges new blends of fuel oil might bring, including potential quality issues providing challenges, in particular to the ship's engineers, and the need for preparedness was reiterated, including crew training and reviewing clauses in charter parties.

    Simon Bennett, Deputy Secretary-General of the International Chamber of Shipping (ICS) said that the shipowner organisation was confident that IMO 2020 will be a success. "However, the huge enormity of such a regulatory game changer has never been attempted before and needs to be understood by all stakeholders."

    A representative from the International Standardization Organization (ISO) outlined the recently-issued standard: ISO/PAS 23263:2019, which addresses quality considerations that apply to marine fuels in view of the implementation of the sulphur 2020 limit and the range of marine fuels that will be placed on the market in response.

    Other speakers explained how scrubbers (which will be installed on around 4,000 ships) and - to a lesser extent – LNG, are being used to meet the sulphur 2020 limit as well as the potential to reduce other emissions from ships.

    Summing up the first day, IMO's Hiroyuki Yamada, Director of Marine Environment Division, reiterated the importance of cooperation among all stakeholders and encouraged Member Governments, shipping, refinery, fuel oil supply and relevant industries, as well as charterers, to finalize their preparations for IMO 2020. IMO will make every effort to support the consistent implementation of IMO 2020 on Sulphur limit.
     
    IMO – the International Maritime Organization – is the United Nations specialized agency with responsibility for the safety and security of shipping and the prevention of marine pollution by ships.




2019 November 17

16:12 Port of Dover wins ESPO Award 2019
14:47 Aker Solutions and leading operators join forces to qualify subsea gas separation
14:12 Wight Shipyard Co to build an innovative hybrid CTV for CWind
12:42 PSA Marine and Wartsila join hands to tackle climate emergency
11:38 A.P. Moller-Maersk improves operational profitability
10:15 ABS and Arista launch smart shipping journey

2019 November 16

16:42 Team Tankers International Ltd. announces Q3 2019 results
15:02 GasLog places NOK 900M of senior unsecured bonds due 2024
14:23 BTG and GoodFuels preparing for major investment in bio-refinery to support shipping’s low carbon fuels demands
13:41 Third L-class delivered in China
12:32 Seaspan to purchase a fleet of six containerships on long-term charter for $380 million
11:28 Mammoet inks agreement with Port of Coeymans Marine Terminal to strengthen presence along East Coast
10:18 Metal Sharks delivers pilot boat duo to BCMT

2019 November 15

18:09 Coast Guard medevacs cruise ship Aida Perla passenger just off Ponce, Puerto Rico
17:48 Sovcomflot reports its results for third quarter and nine months of 2019
17:23 Wärtsilä and PSA Marine collaborate to achieve clean energy shipping
17:15 Bollinger Shipyards contracted to build ocean transport barge
17:00 Composit supports 7th International Forum of Dredging Companies as its Sponsor
16:57 Ulstein unveils its concept of the first hydrogen powered offshore vessel
16:36 RF Government separates positions of Deputy Transport Minister and head of Rosmorrechflot
16:14 IMO holds training on impacts of anti-fouling systems and ships’ biofouling on marine environment
15:39 Norway boosts IMO's GreenVoyage-2050 GHG project
15:11 New Wärtsilä Expertise Centre provides value-adding lifecycle support
14:57 LUKOIL commissions phase three facilities at Filanovsky field
14:30 NSR cargo traffic totaled 26 million tonnes year-to-date, up 63.5% YoY
14:13 Georgia Ports Authority up 3.5 percent to 428,400 TEU in October 2019
13:13 Diana Shipping announces direct continuation of time charter contract for m/v Medusa with Cargill
12:51 Multipurpose Reloading Complex reports 4-fold increase of allocations for environment protection to RUB 11.5 million
12:32 ABI Research: Commercial fleets looking to tech to accelerate ROI in the face of rising costs, competition, and uncertainty
12:13 Port of Oakland names Danny Wan Executive Director
11:28 ESL Shipping participates in Intelligence Hunt
11:00 CMA CGM to apply GRI from Canada West Coast to worldwide destinations (Excluding EU, Russia & USA)
10:41 Delft Dynamics, Next Ocean and Damen perform qualification test in North Sea
10:40 Gremyashii corvette of RF Navy’s Nothern Fleet to be tested in White Sea
10:16 Training ship Perekop of RF Navy's Baltic Fleet arrives in Republic of Myanmar
09:54 Bunker prices go down at the port of Saint-Petersburg, Russia (graph)
09:39 MABUX: Bunker market this morning, Nov 15
09:32 Brent Crude futures price is up 0.45% to $62.56, Light Sweet Crude – up 0.51% to $57.06
09:13 Baltic Dry Index is up to 1,364 points

2019 November 14

18:19 French Prime Minister Edouard Philippe inaugurates CEVA Logistics’ new headquarters in Marseille
18:00 Boosting handling of cargo bound for Arctic considered as strategic development vector of Murmansk Commercial Seaport
17:41 Port of Liepaja (Latvia) handled 5.92 million tonnes of cargo in 10M'2019, down 5.1% Y-o-Y
17:20 Gasunie, EBN, Port of Amsterdam and Tata Steel work together on the development of a CCUS project in the North Sea Canal area
16:49 Hung Hua Construction of Taiwan orders third Fast Crew Supplier this year to support offshore wind ambitions
16:36 Main engines loaded onto second serial ship of PV22 project at Nevsky Shipyard
16:15 Hapag-Lloyd announces rates from East Asia to North Europe and Mediterranean
15:59 Yevgeny Savkin appointed as General Director of Novyie Kommunalnyie Tehnologii in Ust-Luga port
15:15 The ICS and ECSA call for immediate and effective intervention after yet another attack in the Gulf of Guinea
15:12 Restoration of 90 year old Amsterdam bridge by Niron Staal
14:43 Expert forecasts scrubbers to consume some 600,000 barrels of heavy fuel per day in 2020
14:14 Norway boosts IMO's GreenVoyage-2050 GHG project
13:32 Sea Port of Saint-Petersburg invested RUB 630 million in development in 9M’19, up 53% YoY
13:11 MOL earns AIP for design of bow wind-shield, ultra-large containership
12:30 Bunker prices are flat at the Far East ports of Russia (graph)
12:04 CMA CGM announces FAK rates from Asia to the Middle East Gulf
11:23 Aleksey Rykovanov appointed as General Director of Murmansk Commercial Seaport
11:01 Arista Shipping starts the path to smart shipping operations with an ocean data agreement with ABS
10:39 RF Government supports expansion of Murmansk Transport Hub capacity to 65 million tonnes by 2035
10:16 MABUX: Bunker market this morning, Nov 14
10:02 WesCom Signal and Rescue goes green at METSTRADE 2019