Impact of IMO 2020 on the maritime landscape of South Africa

IMO 2020 - shipping and freight resource

The International Maritime Organization (IMO) has been working to reduce harmful impacts of shipping on the environment since the 1960s..

The regulations for the Prevention of Air Pollution from Ships (Annex VI) seek to control airborne emissions from ships (sulphur oxides (SOx), nitrogen oxides (NOx), ozone depleting substances (ODS), volatile organic compounds (VOC) and shipboard incineration) and their contribution to local and global air pollution, human health issues and environmental problems..

In April 2018, more than 100 Member States met at the United Nations IMO in London and adopted an initial strategy on the reduction of greenhouse gas emissions from ships by at least 50% by 2050 compared to 2008 levels..

Below is a perspective from Durand Richard of Linsen Nambi Bunker Services on the impact of IMO 2020 on the South African maritime landscape..

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Maersk to test a containerised battery system to improve on board performance

maersk battery system

I for one, am quite pleased with the many initiatives that the shipping and freight industry has been taking to combat climate change and reduce CO2 emissions..

Implementing IMO 2020 sulphur cap, testing the usage of bio-fuels to run ships, using scrubbers, avoiding north sea route, changing ships technology to use less fuel, etc etc etc.. While what is being done is commendable, there is still a LOT left to do in order to reach the goals set..

For its part, Maersk has announced that it will pilot a battery system to improve power production on board ships..

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Intermodal Europe 2019 to showcase the best of innovation and technology in the container industry

The world of shipping and freight is getting bigger and bigger but thanks to all the technological advances and digitalisation it is also bring all players in the industry closer than ever before..

However, meeting people face to face, sharing issues of mutual interest and benefit and thrashing out common problems and finding solutions has a special flavour and charm to it.. Not to mention the experience you gain out of meeting experienced people..

Intermodal Europe 2019 to be held between the 5th and 7th of November at Hamburg Messe promises to bring out the best in terms of its offering to the industry..

Some of the interesting topics presented include………………………….

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5 adverse effects of climate change on maritime transport

climate change in maritime transport

The maritime sector is a major global industry. In fact, an article published by the World Bank reports that shipping accounts for 80% of all world trade’s total volume. However, like other lucrative industries, it doesn’t only deal with accommodating a high demand for services, but also constantly faces numerous environmental issues.

Why exactly should shipping companies be involved with battling climate change? There are countless reasons, but one that stands out the most—if we assess matters through an economic perspective—is that climate change is a large threat to the industry itself.

Below, we’ll discuss several impacts of climate change on maritime transport, specifically on its efficiency and profitability.

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World’s largest LNG-Powered containership launched

LNG powered containership

Climate change has been and is at the heart of many initiatives within the shipping and freight industry.. Whether it is IMO’s proposed implementation of IMO 2020 regulations 98 days down the road, or the use of bio fuels to run ships or the use of scrubbers or LNG powered ships, there are several initiatives being followed by the industry..

In line with this, Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group announced in 2017 that the group would be ordering a series of 23,000-TEU containerships that would be the world’s first ever to be powered by LNG (liquefied natural gas)..

This decision became a reality when the group announced the launch of the world’s largest LNG powered containership..

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Cost impact of IMO 2020

IMO2020 - shipping and freight resource

IMO2020 is getting serious commercially..

As everyone may have read, as of January 2020, all ships are required to use fuel with a sulphur content of 0.5% or less on all of the world’s oceans..

The ship owners have a few options to ensure compliance and meet lower sulphur emission standards, each with some pros and cons..

Let’s look at the cost impact of IMO2020..

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Maersk Honam becomes Maersk Halifax

shipping and freight news

Like the proverbial Phoenix rising from the ashes, Maersk Honam has a new lease on life as Maersk Halifax.. As has been reported quite elaborately here, on the 6th of March 2018, Maersk Honam, one of Maersk’s ultra-large container ships caught fire in the Arabian Sea between India’s West Coast and Oman while en-route from Singapore to Egypt..

Five crew members perished in this incident which was one of several maritime disasters which have container ships in recent history..

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Incoterms® 2020 release date announced

Incoterms 2020 Rules - Shipping and Freight Resource

The Incoterms® rules were developed by the International Chamber of Commerce to facilitate international trade and for the interpretation of the trade terms that the parties to a contract of sale could agree to apply..

Incoterms® were first introduced in 1936 and were revised in 1957, 1967, 1976, 1980, 1990, 2000 and 2010 to accommodate changes as global trade developed and evolved..

Currently, in its 8th version (Incoterms® 2010), the Incoterms® rules have become an internationally recognized and accepted standard and are used worldwide in international and domestic contracts for the sale of goods and have become an essential part of the day-to-day international trade and domestic trade..

The ICC which is celebrating its centenary year recently announced the release date for the latest version of these rules which is the Incoterms® 2020..

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Maersk pilots carbon-netural shipping

shipping and freight news

With #IMO2020 fast approaching – 194 days away as of this article – shipping lines, customers and ship owners are working hard on finding ways to be compliant (whether they like it or not)..

This is especially important in the wake of recent comments from IMO’s Frederick Kenney about the possibility of a postponement of the IMO2020 deadline “The chance is really zero. Procedurally, there is no mechanism that would allow the 0.50% regulation, as it stands right now, to change from 1 January 2020.”

There are still some questions over the use of open loop scrubbers which have been identified by the IMO as one of the several methods through which ships can meet lower sulphur emission standards.. Some of the main bunkering ports like Singapore and Fujairah have banned open loop scrubbers in their waters whereas some countries like South Africa have said yes to all types of approved scrubbers..

Then there are also the usage of bio fuels to power ships and shipments..

In what is termed as a first of its kind in the industry, a new carbon neutral product is being piloted by Maersk Line – the world’s largest container shipping line..

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No agreement on minimum speed requirements for ships @ MEPC74

minimum speed requirements - shipping and freight resource

224 days to go as of this post before #IMO2020 comes into effect.. I wrote recently about an open letter to IMO Member States by NGOs which states that the shipping industry must take appropriate measures to address climate change urgently..

As an initial step, these NGOs expressed their strong support for the IMO’s proposal to regulate ship speeds across various ship type and size categories.. In the letter, the NGOs said their preference would be to set maximum annual average speeds for container ships, and maximum absolute speeds for the remaining ship types, which take account of minimum speed requirements..

Of course, this was not welcomed by all, least of all by container carriers as it would result in them having to increase their fleet size to meet the delivery schedules imposed on them by the trade.. As per the carriers, this would defeat the purpose of trying to reduce GHG (greenhouse gas emissions) emissions..

The letter said that this regulation should be implemented as soon as possible and the obligation for compliance should be placed both on shipowners and operators, including charterers and called on all parties at the forthcoming IMO’s Marine Environment Protection Committee (MEPC74) to support this move..

Well, #MEPC74 has come and gone but there has been no agreement or deal on any of the proposals put forward to reduce GHG emissions..

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