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Charterers and shipowners can use bunker adjustment factor (BAF) clauses to manage rising fuel cost and the possible volatility in prices due to the 2020 sulphur limit. In this article, BIMCO provides an overview of potential solutions.
You won’t find many – if any – who disagree that the higher the speed of a ship, the higher the level of greenhouse gas emissions. So why would I argue that, while imposing speed limits may have a popular ring to it, it is not the answer as the industry seeks to cut emissions? After all, our mission is to do exactly that: cut emissions.
Poor quality bunkers and the incident of contaminated fuel in Houston last year has sparked fears of this happening to any shipowner and operator, as 1 January 2020 approaches. But, with seven months to go before the deadline, planning how to maintain segregation when the new 0.50% fuel starts coming on board, ought to be a more immediate concern.
The Bulletin met with Frederick Kenney, Director of Legal and External Affairs at the International Maritime Organization (IMO), to talk about why there is no chance that the 2020 sulphur limit deadline will be pushed, what will happen if ships experience operational problems because of the new fuels, and why regulation of open-loop scrubbers should be consistent rather than regional.
BIMCO's position on "greenhouse gases emissions" has been approved by the BIMCO Board of Directors.
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