19 June 2019
The 101st session of the IMO’s Maritime Safety Committee (MSC 101) has held initial discussions in London on how to address the safety of ships when using fuel oil.
06 August 2019
Join 150 market representatives at the 39th Argus Fuel Oil Summit taking place in Miami this October. The deadline for IMO 2020 is quickly approaching and the industry is bracing for change. You can network with senior representatives across the fuel oil supply chain and understand how to best prepare your business for the first year of compliance.
06 April 2018
The International Maritime Organization (IMO) Marine Environment Protection Committee (MEPC 72) will meet next week, where a prohibition on the carriage of non-compliant fuel oil with a sulphur content exceeding 0.50% is on the agenda.
20 August 2019
Use of fuel:
As provided by the directive 1999/32/ce as amended by directive 2005/33/ce of the european parliament and as per italian law too, we would draw your kind attention to the following: as from jan. 1st 2010 any vessel, in EC port or within the italian territorial waters using marine gasoil, are under the obligation to use, fuels with a percentage of sulphur less than0,10%. by mass (while at anchorage, in port, at berth). Vsl to have on board sample of fuels supplied and relative delivery receipt showing the percentage of sulphur. Harbour Master reserves his rights to perform inspections on board the vessel to ascertain the quantity of sulphur and in case the percentage will exceed the 0,10%, the Master or owners could be fined from minimum 15.000 euro to maximum 150.000 euro.
19 February 2019
28 August 2019
BIMCO has contributed to a guidance on the supply and use of 0.50% sulphur marine fuel.
18 July 2018
The 2020 0.50% sulphur limit for fuel oil used outside emission control areas will undoubtedly create operational issues for crews onboard ships. The International Organization for Standardization (ISO) has now issued a letter in this regard rebutting these claims.
07 August 2019
The International Maritime Organization (IMO) has approved and published the revised guidelines for on board sampling for the verification of the sulphur content of the fuel oil used on board ships. Furthermore, guidance on verification procedures for fuel oil samples drawn in accordance with MARPOL Annex VI has also been released.
22 May 2019
The International Maritime Organization (IMO) has approved new guidelines on how shipowners can prepare for the global 0.50% sulphur limit, addressing potential compliant fuels safety issues and how to report Fuel Oil Non-Availability (FONAR).
23 May 2019
These Q&As have been produced jointly by INTERTANKO and BIMCO with the assistance of the North of England P&I Club. They focus on the potential contractual issues that parties should be aware of when chartering scrubber-fitted ships. The objective is to highlight and address the relevant clauses and concepts charterers and owners should take into consideration during their negotiations.
Much has been written about the introduction of the ‘Global Sulphur Cap’ of 0.50% m/m (mass for mass) for fuel oil under MARPOL Annex VI which comes into force on 1 January 2020; also the 0.10% m/m sulphur limit within emission control areas. Many owners have also already chosen their route to MARPOL Annex VI Regulations 14.1, 14.3 and 18 compliance which can be achieved in one of two ways:
By using fuel oil with a sulphur content that does not exceed 0.50% m/m, or 0.10% m/m while the ship is operating (‘low sulphur fuel oil’).
By using ‘equivalents’ which are alternative methods that are at least as effective in terms of emission reductions as using low sulphur fuel oil. ‘Equivalents’ includes the installation of exhaust gas cleaning systems, or ‘scrubber(s)’. See MARPOL Annex VI Regulation 4 and the 2015 Guidelines for exhaust gas cleaning systems, adopted by resolution MEPC.259(68) (currently under review). Fuel oil cleaned by scrubbers will have a sulphur content above 0.50% m/m (‘high sulphur fuel oil’).
Both BIMCO and INTERTANKO are neutral as to which option should be chosen. It is up to each individual owner to decide which option is best for their ship’s operation after conducting a proper assessment of the pros and cons of each option including safety and operational issues, price differentials between low and high sulphur fuel oil, fuel availability, capital investment, payback time, trading patterns and charter rates. International, regional and national regulatory requirements may also play a part in this decision.
However, both Associations have been faced with a series of questions from Members who have fitted or are contemplating fitting scrubbers concerning how the use of a scrubber may impact on their contractual arrangements. These questions on both time and voyage chartering issues form the basis of the Q&A section below. They do not address questions relating to the technical and operational impact of installing a scrubber. Such information is available from numerous online sources.
Both Associations have decided, for the time being at least, not to develop a “standard” scrubber clause for time or voyage charter parties. The decision to install and operate a scrubber is seen primarily as a matter of commercial negotiation between owners and charterers relating to the division of costs and benefits. The need for a clause will, however, be kept under regular review.
We suggest that you consider the recommendations in this document to assess the need for a bespoke scrubber clause and/or any amendments to existing charter party terms. You may need to seek independent legal advice on a case-by-case basis to suit your particular chartering arrangements and trading patterns.
This document will be updated to include any new Q&As which will affect the contractual issues for scrubber-fitted ships.
BIMCO and INTERTANKO - 23rd May 2019
