January 1st 2020 saw the implementation of IMO’s MARPOL Annex VI (colloquially known as IMO2020) regulated to lower the current global limit for sulphur content of marine fuels from 3.50% to 0.50%.. VLSFO (Very Low Sulphur Fuel Oil) is one of the options suggested by IMO to achieve this reduction..
Shipping lines and fuel companies have been trying and several blended fuels that would help achieve these levels..
But the one month old VLSFO is already facing issues relating to emissions..
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..
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..
Hapag-Lloyd has a container capacity of approximately 2.6 million TEUs including one of the largest and most modern fleets of reefer containers operated on the back of 120 liner services worldwide connecting more than 600 ports on all the continents..
Hapag-Lloyd is also one of the leading operators in the Transatlantic, Middle East, Latin America and Intra-America trades..
As per Hapag-Lloyd, their container shipping makes a significant contribution to a well-functioning global trade and as such bears a special responsibility for the environment, its customers and shareholders, and its employees..
In line with this, they have released their current sustainability report, titled “Gathering Pace Together”, which gives an insight into the broad spectrum of Hapag-Lloyd’s sustainability-related activities, which deals with topics such as combating corruption, employee training and data protection..
In 2016, at the 70th session of the Marine Environment Protection Committee (MEPC) meeting in London, the International Maritime Organization (IMO) took a landmark decision setting 1st January 2020 as the implementation date for a significant reduction in the sulphur content of the fuel oil used by ships..
As per this decision, MARPOL Annex VI has been revised, lowering the current global limit for sulphur content of marine fuels from 3.50% to 0.50% as from the 1st of January 2020..
IMO advised several methods through which ships can meet lower sulphur emission standards..
As part of the effective implementation of IMO2020 0.50% Sulphur Cap, South African Maritime and Safety Authority (SAMSA) announced that South Africa has approved the use of all types of approved scrubbers..
Maritime transport (sea transport) accounts for around 90% of the global trade.. While the greenhouse gas emissions from shipping is much lower than other modes of transport at around 2.6% of total global emissions, this share could more than triple by 2050 if additional measures are not taken to reduce these emissions..
The International Maritime Organization (IMO) has been working to reduce the harmful impacts of shipping on the environment since the 1960’s and in 2016 adopted a new regulation commonly termed IMO 2020..
In line with this requirement and in an effort to reach its net zero CO2 target by 2050, Maersk Line will be teaming up with a group known as Dutch Sustainable Growth Coalition (DSGC) consisting of Dutch multinationals – Friesland Campina, Heineken, Philips, DSM, Shell and Unilever (many of them Maersk Line’s customers) on a pilot project to test the use of second-generation biofuels.
The regulations surrounding the IMO 2020 sulphur cap are here to stay..
Several shipping lines like Maersk, MSC, CMA-CGM, ONE, OOCL and APL had announced in late 2018 that these costs for compliance will have to be passed on to customers/trade through the implementation of new or adjustment to existing fuel surcharges, which may vary based on the trade lanes..
These new bunker surcharges are set to kick in as of this week..
Well, another year has gone.. 2018 has been consigned to the annals of history..
2019 is here, all shiny, sparkling and new ready to carry the world of global trade, its cargo, its ships, its burdens, its struggles and bear the fruits or consequences of the developments and actions that took place in the industry in 2018..
As with every year, in 2018 as well, our world and our industry went through a lot of changes both good and bad..
From the entry of ONE into the container shipping market to all major lines preparing for the IMO 2020 Sulphur Cap, it has been an eventful year for the shipping and freight industry..
Here is my review of 2018 and the year that it was, for the shipping and freight industry..
In April 2018, more than 100 Member States met at the United Nations International Maritime Organization (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..
It was reported previously, that as from 1st of January 2020 the new global limit on the sulphur content will be 0.50% m/m..
More and more shipowners seem to be going the route of using vegetable oil as fuel..