• 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.




2020 July 3

18:37 DistriRail adds its rail schedules to the Port of Rotterdam Authority’s Navigate tool
18:07 ClassNK releases amendments to class rules
17:44 Possibilities of digital transformation of military shipbuilding to be discussed at "ARMY-2020" forum
17:05 ECSA welcomes study on social aspects within the maritime transport sector
16:50 Rosmorrechflot warns about Russia’s risk to move from White to Grey list of Paris MoU
16:24 11 major international companies join forces to accelerate the energy transition in transport and logistics
15:48 Hydrographic Company and MRTS sign contract on construction of Utrenny terminal facilities
15:10 CMA CGM announces rates from Asia to Red Sea
14:43 ABP publishes its Annual Review 2020
14:10 Port of Savannah’s Ocean Terminal takes delivery of two mobile harbor cranes
13:12 Alfa Laval wins SEK 130 million offshore order in China
12:26 Throughput of port Azov in 6M’2020 fell by 15% YoY
12:01 ICS launches Guidance for Engine Room Safety
11:47 North-Western Shipping Company merges into Volga-Fleet
11:15 CMA CGM announces FAK rates from Asia to North Europe
10:59 Finnlines announces bunker surcharge for Malmö-Travemünde-Malmö
10:13 Ocean Yield takes delivery of newcastlemax dry bulk newbuilding
10:12 GTT and Zvezda Shipbuilding Complex sign a Technical Assistance and License Agreement for the construction of LNG carriers incorporating membrane tank systems
09:52 Bunker prices changed slightly at the Port of Saint-Petersburg, Russia (graph)
09:34 Baltic Dry Index as of July 2
09:20 MABUX: Bunker market this morning, July 03
09:16 Oil prices start decreasing
09:09 Baleària presents a proposal for the construction and operation of the new passenger terminal in the Port of Valencia

2020 July 2

18:37 CMA CGM announces FAK rates from Asia to the Mediterranean
18:04 ClassNK releases Annual Report on Port State Control
18:04 CMA CGM updates PSS for Reefer Cargo from North Europe, Scandinavia, Poland & Baltic, West Med & Adriatic to the Indian Subcontinent, Middle East Gulf & Red Sea
17:52 Glavgosexpertiza approves expansion of access canal to Sabetta port
17:35 Royal Niestern Sander delivers the hydrographic survey vessel ‘Geo Ranger’ to Geo Plus B.V.
17:21 Oil shipments via CPC Marine Terminal in 6M’20 climbed by 2.2% YoY
17:04 Kongsberg Digital acquires Danish maritime software company COACH Solutions
16:55 Federal government waives the traffic dues for the Kiel Canal until 31.12.2020
16:45 Fincantieri subsidiary INSIS acquired a majority share in Support Logistic Services
16:23 Webinar “Pusher-tugs as a pivot of river transportation chain. Will we have them built?” slated for 8 July 2020
16:04 IPCSA launches the Network of Trusted Networks
15:42 Shipbuilding facility of Neptun CDB in Novaya Ladoga lays down two cruise ships of Project PV20S
15:20 New transshipment terminal soon to become operational at the Port of Gothenburg
15:04 250,000 m2 of rooftop solar panels to be installed in the port of Amsterdam by 2024
14:23 MABUX releases weekly review of global bunker market
14:03 Nippon Paint Marine completes the extensive re-coating of the 1911-built cargo ship
13:29 Cargo traffic within Azov-Don Basin of Russia’s IWWs fell by 5% in 6M’20
13:05 Premiere for Rolls-Royce's first MTU gas engines in new Doeksen ferry
12:44 Bunker prices are slightly up at the Far East ports of Russia (graph)
12:22 Rosmorport announced tender for construction of LNG transshipment facility in Kamchatka
12:00 APM Terminals introduces APIs to transform the next generation of terminal data
11:21 Russian Railways' network loading fell by 4.5% in 6M’ 2020
11:03 ECSA calls on the German Presidency to support a stronger European shipping industry
10:47 Bunker sales at Vladivostok port in 6M’2020 fell by 23% YoY
10:29 Damen Maaskant Shipyards Stellendam delivers trawler Jonge Johannes
10:24 Tallink Grupp makes strategic future investment and purchases ro-pax vessel Sailor
10:02 Oil prices continue rising
09:59 Yang Ming fulfills green promise carbon emission reduced 51% in 2019
09:45 Tallink Grupp adds more departures to Helsinki-Riga and Turku-Tallinn routes for August 2020
09:28 MABUX: Bunker market this morning, July 02
09:23 Inaugural meeting of the international advisory panel on maritime decarbonisation
09:18 Baltic Dry Index as of July 1

2020 July 1

16:18 COVID-19 dampens long-term energy demand and highlights scale of climate emergency
15:52 Konecranes receives order from Louisiana for two portal harbor cranes
14:26 Panama emphasises its support for seafarers' rights
13:43 DNV GL grants type approval for Aquarius UV / EC BWMS
12:36 ICS: Global shipping fleet to sound horns on 8 July to remind governments over need for urgent crew change