“While we welcome all (environmental) proposals and initiatives, it is important that what we propose has to be fairly executed and transparent,” SSA President S.S. Teo told a press conference last week.
“To begin with, exactly how would would such a tax be collected, where exactly will the money be going to, and on what basis would you charge the levy?"
“Do you charge a levy for the Baltic Sea, or do you even charge ships on intra-island routes within the Indonesian Archipelago?” he added.
In the face of such unresolved issues, Teo said the proposal had to be “evaluated by the IMO (International Maritime Organization) which is the ultimate body for the world's shipping”.
Teo said the IMO was due to meet soon in Oslo, focusing on ship-generated greenhouse gas emissions. They will also discuss in detail the bunker levy proposal, which was first mooted by the Danish delegation in a previous IMO meeting as a means of cutting such emissions.
SSA Executive Director Daniel Tan added that “we have to take into consideration that the bunker levy was proposed as part of a whole package of measures. The IMO will in fact looking at the tax not in isolation but as part of a whole series of ideas.”
A Singapore-based shipping superintendent told Bunkerworld and Sustainable Shipping last week he was concerned that a bunker levy “could open the door for authorities to tax additional fees such as administrative charges on top of the main bunker surcharge”.
“It would also be preferable that authorities globally share a fair system when taxing liners. However, I think it is a near-impossible task,” he added.