Marine Link
Tuesday, October 16, 2018

ICS Chairman on Implementation of Global Sulphur Cap

Maritime Activity Reports, Inc.

May 8, 2018

Esben Poulsson. Photo: Elaborate Communications

Esben Poulsson. Photo: Elaborate Communications

 “Time is fast running out” for implementation by IMO Member States of the 0.5% global sulphur in fuel cap by 1 January 2020, says Esben Poulsson, Chairman of the International Chamber of Shipping (ICS).

 
The IMO global sulphur cap for marine fuel is expected to see shipping’s bunker prices increase significantly.
 
“While ICS fully supports the objectives of the IMO cap, the overnight introduction of this regulatory game-changer will have enormous implications for ship operations.  It will be vital to get the implementation right.” 
 
“As well as concerns as to whether sufficient quantities of compliant low sulphur fuels will be available in every port, there are a number of complex practical issues which IMO needs to urgently resolve within the next 18 months if the unfair treatment of ships is to be avoided.”
 
In the absence of agreed standards for new fuels including blends, that will be compliant with the 0.5% sulphur limit but which may differ in their composition from port to port, ICS is very concerned this could lead to serious compatibility and mechanical problems.
 
While the industry is fully committed to immediate implementation, there could possibly be an initial period of ‘teething problems’ when suitable compliant fuel might not always be available in every port until it can be shipped in from elsewhere.  This is more likely to be a significant problem for ships in tramp trades which call at diverse port destinations which are not always known long in advance.
 
If 0.5% sulphur fuel is not available in every port worldwide, ICS notes that ships may still bunker and use other compliant fuels, such as 0.1% distillate, but warns this raises other serious issues not least those relating to compatibility.
 
Mr Poulsson emphasised “It is vital that ship operators, charterers and fuel purchasers start making the necessary preparations to be ready for this major change.  This also means that oil refiners and bunker suppliers will need to ensure that compliant fuels are actually available for ships to purchase well in advance of January 2020.”
 
The ICS Chairman made these comments in his introduction to the new ICS Annual Review, published in advance of the ICS AGM in Hong Kong next week.    
 
The ICS Annual Review 2018 is a comprehensive overview of the many regulatory and policy issues confronting ship operators, which is being distributed by ICS member national shipowners’ associations and can be downloaded free of charge via the ICS website.
 
The ICS Annual Review is required reading for all shipping companies and government policy makers, containing in depth analysis of issues such as the ground breaking IMO agreement on reducing CO2 emissions, as well as the many safety, legal and trade policy developments affecting international shipping in which ICS is engaged on behalf of the global industry.
 
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