International Chamber of Shipping backs emission reporting, challenges proposed new accounting standards - Transportation and Logistcs

Posted - Daily News - September 26, 2013 

The International Chamber of Shipping (ICS) has reiterated its support for the development of a global system of monitoring, reporting and verification (MRV) of green house gases from ships but said support for the UN's International Maritime Organization plan depends on making it simple, based on fuel consumption and that it not become a compulsory market-based scheme of mandatory energy indexing for all ships.
ICS stated it has concerns about the recent proposal by the European Commission for a regulation mandating a regional system.
In related news the ICS has submitted detailed comments to the International Accounting Standards Board (IASB) on its controversial proposals to overhaul international accounting rules for leases, which could have an impact on contracts used in international shipping, including those governing operational arrangements.
Following intensive discussion amongst its member national shipowners’ associations during the last few weeks, the ICS comments represent the consensus view of the world’s shipowners. 
“ICS has again tried to explain to IASB that the use of a variety of shipping contracts, including time and voyage charters, reflects the long-established modus operandi of the shipping industry. These arrangements are transportation service contracts. They are not an attempt to disguise the use of financial leases, or the ‘Enron’ scale abuses which the new IASB standards are intended to prevent," Isaid CS Secretary General, Peter Hinchliffe. 
He added “Shipowners have no problem with being transparent about such arrangements which can be dealt with through notes in company accounts, but they should not be treated as balance sheet liabilities.”
“The majority of our members still have concerns about the latest IASB proposals, which, if ever implemented, could even result with some companies becoming in technical breach of existing covenants with financial institutions,” Hinchliffe added.
 In its latest comments, ICS objects to the IASB proposals in principle and highlights their complexity and the difficulties that many shipping companies would face in complying with them. ICS seriously questions the benefits to third parties’ understanding of the financial position of shipping companies relative to the cost and complexity involved with implementing the proposals. ICS therefore requests that the IASB drops its proposals and instead, if felt necessary, make improvements to the classification of leases in existing IASB standards.


Post to be found at:
http://www.ctl.ca/news/international-chamber-of-shipping-backs-emission-reporting-challenges-proposed-new-accounting/1002614773/

Historic Sea Route Opens Through Canadian Arctic Waters - Maritime Executive

Posted - September 25, 2013 -  Maritime Executive

For the first time ever, a bulk carrier is using the North West Passage as a transit trade lane, when transporting coal from Vancouver in Canada to Finland. The historic transit is shorter than traditional shipping routes and will not only save time, fuel and CO2, but also increase the load of cargo with 25% compared to the Panama Canal. Nordic Bulk Carriers A/S, the Danish pioneer, is once again behind a new business adventure.

The international shipping industry is these days witness to a historic event, when a vessel for the first time ever is sailing from Vancouver in Canada to Finland through Arctic waters. One of the world’s few modern ice-class bulk carriers - MV NORDIC ORION - will carry a cargo of 73,500 tons of coal via the so called North West Passage through Arctic waters to Finland. A Danish pioneer in operating ice-classed bulk carriers Nordic Bulk Carriers A/S is behind the historic North West Journey.

“We are very excited about this historic voyage, which has been a dream and ambition for several years,” says Christian Bonfils, Managing director in Nordic Bulk Carriers A/S. “We have deep respect towards these important Arctic waters and have planned this voyage in close coordination with Transport Canada and the Canadian Coast Guard to ensure a safe execution. 

Reducing time, fuel and CO2 emissions 

The North West Passage across the Arctic is shorter than the traditional route through the Panama Canal and thereby has the potential to generate important saving in both time, fuel and CO2 emissions. 

Christian Bonfils, explains. “The North West Passage shortens the distance with 1.000 nautical miles. This results in a reduction in fuel consumption and transportation time – and it also means lower CO2 emissions. The fuel savings alone add up to approximately USD 80,000.” In addition this new route allows full utilisation of the ships capacity and thereby carries 25% more cargo than through the Panama Canal.

It takes more than an average ship to sail the North West Passage. The trip across the Arctic is a challenging task that requires great experience, navigational skills and modern world class ships. In fact, there are only a few vessels which can handle the task. 

“MV NORDIC ORION is an ice-class 1A ship,” explains Christian Bonfils. “These ships are designed and built to operate in the harsh conditions of the Arctic.

It is estimated that the North West Passage will be open for transit voyages for approximately two months per year depending on the weather and ice conditions.

Nordic navigation takes a historical step 

The Danish company Nordic Bulk Carriers A/S opens another chapter in the proud tradition of Nordic navigation.

“We follow the MV NORDIC ORION expedition closely and with great interest. This expedition once again emphasizes the strength, quality and long history of the Nordic maritime traditions. We are of course also very proud that a Danish company is the pioneers behind this voyage of discovery,” says Jan Fritz Hansen, Executive Vice President of the Danish Shipowners’ Association. 

Background

The vessel departed from the Port of Vancouver on September 6th. The route was planned in close coordination with Transport Canada and the Canadian Coast Guard to ensure a safe execution. The ship was issued an Arctic Pollution Prevention Certificate by Transport Canada before departure to ensure compliance with Canadian regulations. 

The opening of the North West Passage as a commercially predictable trade lane opens up new opportunities for the important Arctic region and for the coal, minerals and shipping industries.

MV NORDIC ORION is an ice-class 1A ship. This is the highest conventional ice-class, and it is one of the only ships that can sail the route due to ice filed waters. She was built in 2011 at Oshima Shipyard in Japan, and her sister ship MV NORDIC ODYSSEY, which also has performed several Arctic trips, was the first Panamax bulk carrier on the Northern Sea Route.

Post to be found at:
http://www.maritime-executive.com/article/Historic-Sea-Route-Opens-Through-Canadian-Arctic-Waters-2013-09-25/

MCA calls for seabird pollutant PIB reclassification - BBC News England

Posted: 24 September 2013 Last updated at 19:27 ET - BBC News

UK maritime chiefs are to ask the international governing body to reclassify a pollutant that affected thousands of birds on the south coast.

More than 4,000 birds were killed or injured by the chemical polyisobutene (PIB) between Cornwall and Sussex, and on the Channel Islands.
The Maritime and Coastguard Agency will submit its request to the International Maritime Organization (IMO) later in the year.
The move has been welcomed by the RSPB.
The wildlife charity hopes the review of the hazard classification of the substance - found on seabirds in two separate instances between January and May - will lead to a ban on discharges at sea.
'Glue-like' substance It is currently legal for discharges of PIB, a lubricant used to improve the engine performance of ships, to be made when vessels wash out their tanks.
However, restrictions include them having to be made further than 12 nautical miles from the nearest point of land.

An MCA spokeswoman said the reclassification of PIB "could take some time" because it is regulated internationally, but added the MCA was "taking steps to see if things can change".

If approved she said it could affect the way the substance is discharged in the future.
The MCA is expected to present a paper to the IMO in either October or November.
The IMO is the United Nations agency responsible for the safety and security of shipping and the prevention of marine pollution by ships. It consists of 170 member states, of which the UK is one.
The organisation has confirmed a number of European countries, including the UK, have been investigating the discharge of "high viscosity products" by chemical tankers, including PIBs.
The application by the MCA is expected to be approved unless any of the member states lodges an objection.
The RSPB is planning its own campaign strategy on the matter and will give evidence to the government about PIBs at a meeting of the transport select committee in November.
It said the substance becomes "glue-like" in the sea, covering birds and restricting their movements and ability to feed "causing immobilisation, hypothermia, starvation and eventually death".
In August, the MCA said it had been unable to trace the vessel the contamination spill had come from and closed its investigation.

Post to  be found at:
http://www.bbc.co.uk/news/uk-england-24228469

IMO needs to provide more clarity on ship emissions rules: industry - Platts

Posted - Dubai (Platts)--24Sep2013/852 am EDT/1252 GMT - Goh Shu Hui, Edited by Jonathan Dart,
The International Maritime Organization needs to provide greater clarity and direction to the global shipping industry on ship emission regulations t, said several panelists at a conference in Dubai Tuesday.

The panel discussion, which took place at the Red Sea and Gulf Bunkering Conference (RESCON) 2013, consisted of shipowners and industry association leaders.

If the IMO is to impose stringent emission regulations on the shipping industry, it should be clear about what types of fuel shipowners should use in order to comply with regulations, said the general manager of Mur Shipping's bunker department, Morten Dehn.

"From a shipowner's perspective, it is extremely frustrating...and the question is if shipowners should be using gasoil or fuel oil to meet any requirement of less than 0.1% sulfur levels... no one knows and the IMO has also not been clear on that," he added.IMO should conduct "some help studies to [help shipowners] understand their regulations...and if the emissions level is less than 0.5% or 0.1%, then IMO should tell shipowners what types of fuel to use," Dehn said.

There has been "enormous pressure" on the global shipping market in terms of coping with the ever increasingly stringent regulations being imposed on the shipping industry and "every dollar" that shipowners earn have been channeled towards compliance efforts, as opposed to making any money at all, said UK Petroleum Industry Association director general Chris Hunt at the conference.

The International Maritime Organization's mandate, under the revised MARPOL Annex VI, that reduced the global sulfur cap to 3.5% from 4.5%, effective from January 1, 2012. This is expected to be reduced to 0.5% from January 1, 2020, subject to a feasibility review to be completed no later than 2018.

Also, the limits applicable in Emission Control Areas for sulfur and particulate matter were reduced to 1% from 1.5%, from July 1, 2010, and this is being further reduced to 0.1%, effective from January 1, 2015.

It certainly looks like the industry will be guided by refiners' production output at this point in time because many refiners are choosing to maximize gasoil output which has higher profit margins than fuel oil, so the question will eventually be, "where will shipowners source fuel oil to burn as bunker fuel, when the shipping industry bounces back from depression in two years' time," said Sharaf Shipping Agency general manager, Captain Farhad Patel.

The other question is also if shipowners should adhere to ISO standards which are just industry guidelines, which then differ slightly from IMO's mandated standards.

But the key issue remains: "What specifications of bunker fuel should shipowners aim for in 2018, when the IMO review comes up, and if IMO continues to "not consider the finer details of their regulations," said another panelist.

Another issue the panelists touched on was how IMO would enforce these regulations, come 2018 and 2020, especially in the Gulf and Middle East region.

While it is not a problem to enforce ocean-going vessels, who would then police coastal bunker ships, asked Sharaf Shipping Agency's Patel.

Post to be found at:
http://www.platts.com/latest-news/shipping/dubai/imo-needs-to-provide-more-clarity-on-ship-emissions-26303246

Carbon Pollution is the Biggest Threat to Ocean Health Says Ocean Leader - The Daily Catch

Posted -by The Daily Catch September 24, 2013 

Global Ocean Commission Co-chair and former President of Costa Rica,  José María Figueres, says that climate change threatens to greatly undermine the health of the ocean.

“There is, in truth, just one profound question we have to answer: Do we want a sick ocean, or a healthy one? And if our answer is “healthy”, we cannot pretend that we can achieve it without urgent action on climate change,” José Maria Figueres.

Next Friday (Sept. 27), the Intergovernmental Panel on Climate Change (IPCC) will issue the finalized summary of its latest assessment of climate change science, observed and projected. One of its main conclusions will be that the ocean is acting as a major defense against temperature rise in the atmosphere — but is paying a considerable price in terms of its own health. A week later, the International Programme on the State of the Ocean (IPSO), an independent, interdisciplinary group of scientists, will enumerate some of the consequences in detail, including impacts on many of the iconic marine species that Americans, and all of us in Costa Rica, care about.

The IPCC can say a lot about the ocean this time around because of scientific advances, not least the 3,000-strong flotilla of Argo floats now patrolling the globe that are programmed to record and send back basic information on parameters such as ocean temperature, salinity and alkalinity. Before Argo deployment began in 2000, there was no methodical tool for monitoring ocean conditions across the world. Now, thanks largely to the program’s successes — for which American institutions such as Woods Hole and Scripps must take huge credit — this IPCC report is able to tell us that fully 93 percent of the extra heat that greenhouse gases are trapping in the Earth system is being stored in the ocean. The share for the atmosphere, where we’ve tended to concentrate our attention, is just 1 percent. This explains the “slowdown” in atmospheric temperatures that climate deniers interpret as “global warming has stopped.” A tiny increase in heat absorption by the ocean means a significant drop in the rate of atmospheric warming. But equally a tiny decrease would mean atmospheric temperatures soaring again.

In addition to heat, the ocean is soaking up our carbon dioxide emissions. About a quarter of the CO2 emitted today by factories, power stations and automobiles will end up in the ocean, cheek by jowl with sharks, whales and turtles.

The IPCC will also detail impacts of this heat and CO2 storage. Increasing acidity (a consequence of CO2 absorption), changes in salinity, changes in currents, and a decrease in oxygen concentrations are among the profound transformations that will be outlined in dry scientific prose.

For what this protection of life on land is costing the ocean, we open the IPSO file. Research assessed inside will show that species from coral and krill at one end of the scale to polar bears and tuna at the other are already feeling the impacts of a “deadly trio” — warming, acidification and de-oxygenation of seawater.

Together with Trevor Manuel, the very influential Minister of Planning and former Finance Minister of South Africa, and David Miliband, newly arrived on U.S. shores as CEO of the International Rescue Committee and former UK Foreign Secretary, we launched earlier this year the Global Ocean Commission — a new initiative aiming to plot a path to ocean sustainability in the interests of nature, sound business and future generations. In our deliberations so far we have debated all kinds of issues, from marine reserves and fishing subsidies to security on the high seas.

But clearly, neither we, nor any other body aiming to secure ocean health in the long-term, can ignore the present and future impacts of greenhouse gas emissions.

There are two major takeaways from the IPCC and IPSO assessments. One is that all the marine protection measures that can be taken (and that have been taken under both Republican and Democrat administrations) are absolutely valuable. Curbing land-based pollution, restoring depleted fish stocks, barring invasive species, opening marine reserves — all of these improve resilience to climate change, acidification and hypoxia. The current U.S. Administration and its peers around the world must redouble their efforts in these areas in the face of climate change.

The second takeaway is that in the long run, you cannot have a meaningful ocean policy without a meaningful climate change policy. As one of its final acts, the second administration of George W. Bush established marine protected areas around 195,274 square miles (505,757 square kilometers) of U.S. territory in the Pacific Ocean. It remains one of the largest single acts of marine protection by any government at any time. However, water inside the protected zones is warming and acidifying just as fast as that outside — and this trend continues in large part due to President Bush’s intransigence on climate change.

In the last two decades, we have tended to put all the factors affecting the ocean in separate silos. Over here is climate change; over there is fishing, and over there is chemical pollution. The distinctions are maintained through the structures of governments, in multilateral institutions, and even in civil society. The reality, which the IPCC and IPSO reports will demonstrate powerfully in the coming weeks, is that all of these issues are intimately related.

There is, in truth, just one profound question we have to answer: Do we want a sick ocean, or a healthy one? And if our answer is “healthy”, we cannot pretend that we can achieve it without urgent action on climate change.

Source: Huffington Post 

Post to be found at:
http://theterramarproject.org/thedailycatch/ocean-leader-says-carbon-pollution-is-the-urgent-threat-to-ocean-health/

Cuba Bids to Lure Foreign Investment With New Port - Maritime Executive

Posted - September 23, 2013 -  Maritime Executive

Cuba published rules and regulations on Monday governing its first special development zone, touting new port facilities in Mariel Bay in a bid to attract investors and take advantage of a renovated Panama Canal.

The decree establishing the zone and related rules takes effect on Nov. 1 and includes significant tax and customs breaks for foreign and Cuban companies while maintaining restrictive policies, including for labor.

Cuba hopes the zone, and others it plans for the future, will "increase exports, the effective substitution of imports, (spur) high-technology and local development projects, as well as contribute to the creation of new jobs," according to reform plans issued by the ruling Communist Party in 2011.

The plan spoke positively of foreign investment, promised a review of the cumbersome approval process and said special economic zones, joint venture golf courses, marinas and new manufacturing projects were planned.

Most experts believe large flows of direct investment will be needed for development and to create jobs if the government follows through with plans to lay off up to a million workers in an attempt to lift the country out of its economic malaise.

The Mariel special development zone covers 180 square miles (466 square km) west of Havana and is centered around a new container terminal under construction in Mariel Bay, 28 miles (45 km) from the Cuban capital.

The zone will be administered by a new state entity under the Council of Ministers, and investors will be given up to 50-year contracts, compared with the current 25 years, with the possibility of renewal.

They can have up to 100 percent ownership during the contract, according to Cuba's foreign investment law.

Investors will be charged virtually no labor or local taxes and will be granted a 10-year reprieve from paying a 12 percent tax on profits. They will, however, pay a 14 percent social security tax, a 1 percent sales or service tax for local transactions, and 0.5 percent of income to a zone maintenance and development fund.

Foreign managers and technicians will be subject to local income taxes.

All equipment and materials brought in to set up shop will be duty free, with low import and export rates for material brought in to produce for export.

However, one of the main complaints of foreign investors in Cuba has not changed: that they must hire and fire through a state-run labor company which pays employees in near worthless pesos while investors pay the company in hard currency.

Investors complain they have little control over their labor force and must find ways to stimulate their workers, who often receive the equivalent of around $20 a month for services that the labor company charges up to twenty times more for.

And investors will still face a complicated approval policy, tough supervision, and conflict resolution through Cuban entities unless stipulated otherwise in their contracts. And they must be insured through Cuban state companies.

MARIEL PORT

The Mariel container terminal and logistical rail and highway support, a $900 million project, is largely being financed by Brazil and built in conjunction with Brazil's Grupo Odebrecht SA. The container facility will be operated by Singaporean port operator PSA International Pte Ltd.

The terminal is scheduled to open in January.

Future plans call for increasing the terminal's capacity, developing light manufacturing, storage and other facilities near the port, and building hotels, golf courses and condominiums in the broader area that runs along the northern coast and 30 miles (48 km) inland.

Mariel Bay is one of Cuba's finest along the northern coast, and the port is destined to replace Havana, the country's main port, over the coming years.

The Mariel terminal, which will have an initial 765 yards (700 meters) of berth, is ideally situated to handle U.S. cargo if the American trade embargo is eventually lifted, and will receive U.S. food exports already flowing into the country under a 2000 amendment to sanctions.

Plans through 2022 call for Mariel to house logistics facilities for offshore oil exploration and development, the container terminal, general cargo and bulk foods facilities.

Mariel Port will handle vessels with up drafts up to 49 feet (15 meters) compared with 36 feet (11 meters) at Havana Bay due to a tunnel under the channel leading into the Cuban capital's port.

The terminal will have an initial capacity of 850,000 to 1 million containers, compared with Havana's 350,000.

By Marc Frank; Editing by Tom Brown and Jim Marshall (C) Reuters 2013.

Post to be found at:
http://www.maritime-executive.com/article/Cuba-Bids-to-Lure-Foreign-Investment-With-New-Port-2013-09-23/

Bunker Trends: What Are Eco-Ships Up Against? - Hellenic Shipping News Worldwide

Posted - September 22, 2013 - Hellenic Shipping News Worldwide

The big issue (well, one of them) floating around the shipping market at the moment is the move to eco-ships. These technological marvels promise a step change in cost savings and environmental friendliness compared with their pre-crisis competitors. For example the latest Japanese Supramax offering does 14.5 knots on 28 tonnes per day. That sounds good, but how big a step up is that?
Thirsty Old Ladies?
The key is not so much out-performing modern ships; it's the thirsty old ladies that investors hope the new super-ships will drive from the market, accelerating the return to balance. But this depends on whether the eco-ships are really that much better than the old ladies. To find out we analysed 1298

bulkers of 55-70,000 dwt delivered between 1965 and 2013. Some have been scrapped, but they help plot the long-term trend. To make the comparison more consistent, each ship’s fuel consumption was adjusted to a standard 14.5 knots, using the cube rule. The resulting bunker consumption for each ship is plotted against its delivery date. The dates run from 1965 to 2013, and the consumption levels range from below 25tpd to well over 60tpd.
Easy Pickings?
Back in the 1960s, when oil cost just $1.80/bbl and bunkers were only $17/tonne, ships were thirsty and getting thirstier. By 1973 the average consumption of a 60,000 dwt bulker was 49.3tpd. So when the oil price shot up to $10/bbl in 1973 and $40/bbl in 1979 improvement was essential and easily achievable. By 1987 consumption by new ships was down by one third to 35.5tpd at 14.5 knots. Then unexpectedly in 1986 oil prices slumped to $10/bbl and fuel economy was no longer such an issue. Consumption edged down to 33tpd in 1990, briefly touched 30.9tpd in 2005 as new Japanese Supramaxes came in, then shot back to 36 tpd in 2010 as top of the market Chinese-built ships were delivered.
The Bottom Line
These trends highlight three eco-ship issues. Firstly, the fuel consumption in the last 20 years was pretty flat and on paper at least, many of the modern ships are less efficient than older generations. Secondly the big improvement 1975-88 which started from $2/bbl gas guzzlers will be difficult to repeat because the technology has been squeezed so hard over the last 25 years. Thirdly the big fuel saver is slower speed and good old ships can play this game as well as new ships.
Bunker Bonus vs Big Balance Sheet
So there you have it. Most of the old fleet was built to operate in the 32-35tpd band, giving the 28tpd eco-ship a 15-20% advantage. But these new ships carry a lot of capital costs and in the long-term the return on capital counts, not who you beat at the loading point today. Against this background, and the many uncertainties over the true performance of the new eco-technology, it's no wonder investors are struggling. Eco-features are definitely a nice bonus if you need a new ship, but it's the need issue that's tricky.
Source: Clarksons

Post to be found at:
http://www.hellenicshippingnews.com/News.aspx?ElementId=fc1d5fe6-67ee-490c-8cb2-a2ba075fc619&utm_source=newsletter&utm_medium=email&utm_campaign=daily

On-Board Testing Services Emerge - MarineLink.com

Posted - September 20, 2013 -  MarineLink.com

Testing delivers data needed to clean up tugs and workboats.

As increasingly strict government and international maritime regulations are phased in to reduce harmful emissions produced by workboats and tugs, the need for on board, in-use testing services capable of delivering accurate, continuous emissions data needed has also come about. Monitoring emissions such as NOx, SO2 and particulate matter is fast becoming not just the right thing to do; it will soon become a requirement, as well. Although much work has been done to clean up ports and marine terminals, the next big target involves vessels, harbor-craft, offshore drilling rigs and all manners of workboats. These efforts will require retrofitting existing engines with aftermarket emissions control products or replacement with newer, low emission “green” engines.

The primary regulatory agencies driving this change include the U.S. Environmental Protection Agency (EPA), International Maritime Organization (IMO) with its MARPOL guidelines, and the California Air Resources Board (CARB). CARB, in particular, has taken a leadership role with some of the most stringent emission reduction measures and deadlines. Although similar to the paths taken by other industries targeted by the EPA to clean up diesel engines, the absence of testing services and products specific to the maritime industry has been a roadblock to progress. Until recently, a comprehensive testing service that meets the requirements of every existing regulation has not been available to maritime companies. Neither have the commercial devices required to conduct the testing.

• Nuts & Bolts

To meet all the regulations laid out by CARB, IMO and the EPA, an on-board testing service would not just be a snapshot of engine performance, but would include ongoing “in-use” performance testing over time to meet the ISO 8178 testing protocols. This is where difficulty comes in, says Mark Adair, an emissions control product expert for the past 28 years. “The type of technologies used to clean up those industries will essentially be same we use to clean up ships,” says Adair.  “The difference is all those emission control technologies were developed in laboratory test cells under controlled conditions with engines removed from equipment and sent to the lab. You can’t pull an engine off the ship.” This means the testing service has to include devices that remain on a ship over time, constantly monitoring emissions ideally with minimal disruption to ships’ crew. 

• Testing Services Emerge

GreenLink Systems, a company that produces high-tech emission monitoring and control products for heavy duty diesel engines, is now offering a comprehensive On-Board Emissions Testing (OBET) service along with the commercial testing products required to conduct such tests. OBET provides CARB, IMO and EPA “acceptable emissions data” that also meets the ISO 8178 standards for in-use emission testing. It can also be used to perform the International Air Pollution Prevention (IAPP) engine re-certification required by the IMO and the EPA.

The OBET testing service utilizes several new commercial testing products from GreenLink Systems to perform these tests: an emission testing analyzer and a continuous NOx emissions monitoring unit that remains on the vessel over time. Information from these units is relayed wirelessly via built-in 4G wireless modems to a secure, online database accessible over the Internet. The emissions testing unit (ETU) component measures eight gaseous emissions, including Hydrocarbons (HC), Nitrogen oxide, (NOx), Nitric Oxide (NO), Nitrogen dioxide (NO2), Oxygen (O2), Carbon dioxide (CO2), Carbon Monoxide (CO) and Sulfur dioxide (SO2).

A key advantage is that the ETU does not need a laboratory technician to perform analyzer calibrations since it is programmed to run in an automatic calibration mode.  It can be operated by a crew member after initial set up. The continuous NOx emission monitoring unit (EMU) is installed directly on the engine and exhaust system utilizing sophisticated sensors. The EMU remains on the engine to measure, record and transmit data 24/7, with new updates uploaded every few seconds. According to Greenlink, theirs is the first unit on the market that meets the IMO NOx Technical Code requirements for all on board maritime engines, including auxiliary engines.

The continuous monitoring unit has been designed with both upstream and downstream sensors to satisfy CARB’s Title 13 Div. 3 “Verification Procedure, Warranty and In-use Compliance Requirements for In-Use Strategies to Control emissions from Diesel Engines.” The Verification Procedure calls for measurements of exhaust before and after treatment by a NOx emission reduction device while establishing in-use performance and durability over an established time period. According to Adair, a testing system that transmits data wirelessly with remote access capabilities is critical to reduce the time, crew labor costs, equipment transportation and access to a vessel that may only be infrequently docked in port.

Consistent with the rapid penetration of satellite communications into the busy workboat markets, emissions data is acquired and can be uploaded in a secure database that can be accessed through the Internet. The emission data assists in bookkeeping and reporting required by the regulatory agencies, reducing costs. The ability to monitor results is particularly important during the durability step of CARB’s verification process.

Testing services will also play a key role in identifying emerging emission control technologies that can be retrofitted on marine platforms. A testing service that can measure emissions before and after the device will allow ship owners to separate emission control products that work as advertised from those that don’t.

Post to be found at:
http://www.marinelink.com/news/services-testing-onboard358958.aspx

Oil spills in flood-hit Colorado raise concerns over industry regulation - EINNewsdesk

Posted - September 19, 2013 - Renee Lewis - EINNewsdesk

As you know it all flows to the Sea

Oil spills in flood-hit Colorado raise concerns over industry regulation

Residents of a town in hard-hit Weld County, with 20,000 active wells, say industry is booming out of control

At least two large oil spills have been confirmed in the wake of Colorado's historic floods -- with almost 20,000 gallons of oil being spilled into Colorado rivers -- raising fears of contamination and questions about the regulation of the state's growing oil and gas industry.
On Wednesday, Anadarko Petroleum Corp. said that a 5,000 gallon tank had spilled oil into the South Platte River near the town of Millikin in flood-ravaged Weld County -- the most heavily drilled county in the state, with around 20,000 active oil and gas wells. Thursday, the company announced a second, larger leak of over 13,000 gallons of oil on the nearby St. Vrain River.
Videos and photos uploaded to social media sites showed toppled tanks, flooded wells and ruptured pipelines. One video allegedly showed a destroyed storage tank in Weld County with green fluid leaking out.
Just over 10 miles from the spill site at Millikin is the town of Greeley, the countyseat and Weld's biggest city.


Weld County, Colorado, has over 20,000 active oil and gas industry wells -- many of which are located in areas affected by the flood, raising questions about the state's regulations.

Greeley has been on the front lines of the battle over regulation of the oil and gas industry. Though the city council said they have stayed within the state's regulations, many residents say an industry they once tolerated has gotten out of control.
In the mid-1980s, the city of Greeley banned the oil and gas industry drilling within its limits. But that decision was overturned in 1992 by Colorado's Supreme Court after a long, costly battle with energy companies.
Now the economy of the town is dependent on the industry. Greeley achieved boomtown-status during Colorado's recent oil and gas industry explosion and has more than 400 wells within city limits. That number is expected to grow 1,600 in coming years thanks largely to the industry's powerful influence in city government, residents say.
"They've drilled up the entire (Weld) county, so there's no more places left to drill and all of a sudden they're doing it within Greeley city limits," Dr. Mark Schreibman, founder of Greeley Communities United, told Al Jazeera.
Greeley Mayor Tom Norton says the city council doesn't have the authority to decide when and where drilling occurs -- that is an individual property right. The council's job is simply to determine whether or not drilling activity is within state regulations. And if it is, there's nothing the council can do to stop it.
"They think we have the authority. We don't. We have the authority to regulate how it's done."
But the state regulations allowed drilling and storage in flood plains, and Carl Ericson of Weld Air and Water, said it's the speed at which the regulations were developed in Weld County that's the biggest obstacle to responsible regulation.
"When a disaster like the flood happens, they're stretched beyond comprehension," Ericson said. "It points to the inadequacy of our regulation system."
In Colorado, regulators rely on reports from the industry itself as to what it's doing wrong. "You've got the fox guarding the hen house," Ericson said.
Despite the risks, some residents enjoy the royalty checks they get from leasing their land to drilling companies and the extra money coming into a town that had a 10 percent unemployment rate before the boom.
"It's a good thing for everybody. … The industry is providing millions and millions of dollars and producing labor opportunities,” City Councilman Charles Archibeque told Al Jazeera.
"You can't deprive people the right to minerals on their property. … I leased out some of my land."

Oil rush

Regardless of whether they feel the economic benefits are worth the risk, many residents say they feel the industry’s encroachment on their town is unstoppable.
“We’ve gotten letters asking about leasing out our land for drilling,” Fred Cleader, co-founder of Weld Air and Water told Al Jazeera. “We haven’t leased it out, but we expect to be forced – it’s some kind of ‘oil company socialism.’”
Synergy and Mineral Resources, two industry companies working in Greeley, have been called "very aggressive" by residents, citing the plans to quadruple the number of active wells in the city.
Mineral Resources did not respond to a request for a statement at the time this article was published.
Synergy spokesman Craig Raspesin told Al Jazeera “we’ve met all the state requirements … and we’ve worked diligently with air and water groups that have brought forth concerns.”
“Everyone has a different level of tolerance … but we feel like we can coexist with municipal operations and we’re working hard to show that. We’ve got hundreds of wells within municipalities and we don’t have any issues.”
Residents, however, tell a different story.
“The City Council is what is really allowing drilling in people’s backyards, and near schools, there’s this rush to get oil and gas wells in every little piece of land that’s open,” Ericson said.
Residents complain that their city council is not representative of their concerns, adding that Mineral Resources is hosting a “real shindig” of a party for the current mayor’s reelection campaign.
“We have a very old guard in our city council and right now 25 percent of the council’s budget comes from oil and gas revenues,” Schreibman said. “The more you pick the pockets of the oil and gas folks, the greater their influence becomes.”
To see that the residents don’t agree with the pace of industry expansion in their town, Schreibman suggested attending one of the city council meetings when projects are open for discussion.
“Over 200 people show up against, maybe four or five for.”
Greeley’s mayor, Tom Norton, tells a different story: “We’ve had hearings where we spend many hours listening to them.”
Norton referenced the Colorado Supreme Court decision that reversed Greeley’s decision to ban drilling within city limits. The court decision cites oil and gas resources as a property right that cannot be denied as long as the drilling is carried out within the state’s regulatory process.
“What they’re saying is they don’t like the fact that we don’t have the constitutional authority to change access to minerals,” Norton told Al Jazeera.
“The only authority we have is to regulate how it’s done in a way that doesn’t limit it.”
A project approved by city planners in Greeley’s Fox Run neighborhood would allow 16 wells to be placed under the area, with wellheads and tanks 350 feet from porches.
“I know a family from Fox Run who sold their house and left town because of this,” Schreibman said. “People are starting to move away, property values are going down.”
Mayor Norton said that residents had appealed the city’s decision to allow drilling in the Fox Run neighborhood, but in the end “it was determined that the original decision to allow it was made in accordance with our ordinances and because of that we approved it.”
Colorado’s multi-billion dollar oil and gas industry has mushroomed over the past decade. In June, oil production increased nearly 30 percent above the same period last year – to 161,000 barrels per day.

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Matson Takes Responsibility for Honolulu Harbor Molasses Spill - Maritime Executive

Posted - September 17, 2013 -Maritime Executive

Matson to Cover Response Costs, Not Hawaii Taxpayers or Customers

Matson, Inc. will cover the costs associated with the Honolulu Harbor molasses spill response, not Hawaii taxpayers. That was the commitment reaffirmed by Matson President and CEO, Matt Cox, at a news conference, held at Pier 34. He also stated that customer rates would not be affected by the incident.

The Honolulu molasses spill refers to a spill of 1,400 tons of molasses into Honolulu Harbor in  September 2013. Divers in the harbor area reported that all sea life was killed by the molasses, which instantly sank to the bottom of the harbor and caused widespread de-oxygenation

"We operate the pipeline and it is our transfer operation," Cox said. "Matson is taking responsibility and we'll continue to fully cooperate with the state on this response.  We'll be here as long as it takes to get it right." 

Cox announced that Matson immediately ceased its molasses operations following the incident and will not resume operations until the company is assured that it can do it in a safe and responsible manner. 

"Our goal always is to conduct cargo loading operations safely and in an environmentally responsible manner," he said.

He added that his pipeline operations team is already working on a report that will provide him with information needed to determine the future of Matson's molasses cargo business.

"If it is determined that the system cannot be operated safely or in an environmentally responsible manner, and that repairing and replacing the system would be impractical, we will discontinue our molasses operations," he said.

Cox said the report would be provided to the Department of Health and other agencies once it is complete.

At the news briefing, Cox also acknowledged the agencies that have lead the response, including the Hawaii Department of Health (DOH), Hawaii Department of Land and Natural Resources (DLNR), and the Hawaii Department of Transportation (DOT), and the other agencies that are supporting the effort.

He also acknowledged his own company's response team, which has been working together with the agencies since the incident occurred last week.

"The Matson response team will continue to be a critical part of the response.  I'm proud of their efforts.  They are fully cooperating with the state and will continue to cooperate as the response moves forward," he said.

Founded in 1882, Matson is a leading U.S. carrier in the Pacific. Matson provides a vital lifeline to the island economies of Hawaii, Guam, Micronesiaand select South Pacific islands, and operates a premium, expedited service from China to Southern California. The Company owns a fleet of 18 vessels including containerships, combination container and roll-on/roll-off ships and custom-designed barges. 

Post to be found at:
http://www.maritime-executive.com/article/Matson-Takes-Responsibility-for-Honolulu-Harbor-Molasses-Spill-2013-09-17/

Not Guilty: Parties in Norfolk "Magic Pipe" Pollution Trial Acquitted - Maritime Executive

Posted - September 16, 2013 -  Maritime Executive

A federal jury in the Eastern District of Virginia has acquitted both Angelex Ltd. and Kassian Maritime Navigation Agency, Ltd., Owner and the ISM Manager of the ANTONIS G. PAPPADAKIS, of sixteen (16) felony charges alleging that they, through their agents and employees, engaged in illegal discharging of bilge water in violation of the Act to Prevent Pollution from Ships (“APPS”) and then attempted to hide the illegal discharges from the U.S. Coast Guard. United States v. Kassian Maritime Navigation Agency, Ltd., et al., Criminal No. 2:13-cr-70 (E.D. Va. 2013). Both Angelex and Kassian were represented by magic pipe specialist, George M. Chalos and Briton Sparkman of Chalos & Co, P.C. – International Law Firm and Patrick Brogan of Davey & Brogan, P.C., of Norfolk Virginia.

The jury’s verdict came after two (2) days of deliberations following a nine (9) day trial before District Judge Mark Davis. In finding Angelex and Kassian not guilty, the jury rejected claims by the Department of Justice that the alleged illegal conduct was performed by the Vessel’s crewmembers in the course and scope of their employment, and with the intent to benefit Angelex and Kassian.  Notably, all of the witnesses in the case confirmed that any illegal conduct occurring on board the Vessel was hidden from Angelex, Kassian, and even the Master of the Vessel, and was done without any intent to benefit either company.  The defense further established that such conduct was in violation of the Vessel’s “zero tolerance” pollution prevention policies and procedures, which strictly prohibited crewmembers from taking any “shortcuts” to bypass the Vessel’s pollution prevention equipment.

For more information about this matter, please contact info@chaloslaw.com. 

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Hong Kong aims to limit sulfur in bunker fuel to 0.5% from January 2015 - Pratts

Posted - September 13, 2013 - Atsuko Kawasaki -Edited by Irene Tang - Platts

Hong Kong's Environmental Protection Department aims to lower the maximum allowable sulfur content in bunker fuel to 0.5% from January 2015, an official at the department said Friday. The department plans to submit the legislative proposal on the issue to the 2013-2014 legislative session that will start later in September, another EPD official said in an email.

Under the proposal, ocean-going vessels will need to use bunker fuel with a maximum sulfur content of 0.5% while they are in Hong Kong waters from January 2015, he added.

At present, vessels are using maximum 3.5% sulfur bunker fuel in Hong Kong waters under regulations set by the International Maritime Organization, while ISO standards have set a maximum sulfur content of 1.5% for marine gasoil, which is used at berthing.

The EPD had earlier considered limiting the maximum sulfur content at 0.1% and had sought views from the industry in an exercise that ended April 8, Platts reported previously.But the reason behind the EPD's eventual push for maximum 0.5% sulfur limit instead of 0.1% was not immediately clear.

The Hong Kong government is tackling with air pollution and it takes sulfur limits as one of the means to resolve the problem.

Separately, the Hong Kong government plans to lower the sulfur content of marine fuel used by coastal vessels that ply within Hong Kong waters to 0.05% from 0.5%.

"For local marine trades, we completed in January 2013 a technical study, which confirmed the technical feasibility of tightening the sulfur content of local marine diesel from 0.5% to 0.05%," EPD said.

The department plans to submit the legislative proposal by end-2013 for implementation in early-2014.

Post to be found at:
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NOAA Releases Millions of Chemical Analyses from Deepwater Horizon Oil Spill - Maritime Executive

Posted - September 12, 2013 -  Maritime Executive

Includes data on underwater hydrocarbon plume, dispersants

NOAA announced the release of a comprehensive, quality-controlled dataset that gives ready access to millions of chemical analyses and other data on the massive Deepwater Horizon Oil Spill. The dataset, collected to support oil removal activities and assess the presence of dispersants, wraps up a three year process that began with the gathering of water samples and measurements by ships in the Gulf of Mexico during and after the oil release in 2010. 

NOAA was one of the principal agencies responding to the Macondo well explosion in the Gulf of Mexico, and is the official ocean data archivist for the federal government. While earlier versions of the data were made available during and shortly after the response, it took three years for NOAA employees and contractors to painstakingly catalog each piece of data into this final form.

This Deepwater Horizon Oil Spill dataset, including more than two million chemical analyses of sediment, tissue, water, and oil, as well as toxicity testing results and related documentation, is available to the public online at: http://www.nodc.noaa.gov/deepwaterhorizon/specialcollections.html.

A companion dataset, including ocean temperature and salinity data, currents, preliminary chemical results and other properties collected and made available during the response can be found at: http://www.nodc.noaa.gov/deepwaterhorizon/insitu.html.

The Deepwater Horizon Oil Spill response involved the collection of an enormous dataset. The underwater plume of hydrocarbon -- a chemical compound that consists only of the elements carbon and hydrogen -- was a unique feature of the spill, resulting from a combination of high-pressure discharge from the well near the seafloor and the underwater application of chemical dispersant to break up the oil. 

“The size and scope of this project -- the sheer number of ships and platforms collecting data, and the broad range of data types -- was a real challenge. In the end, it was a great example of what can be accomplished when you bring together the expertise across NOAA, making this quality-controlled information easily available to the general public for the first time,” said Margarita Gregg, Ph. D., director of the National Oceanographic Data Center, which is part of NOAA's Satellite and Information Service.

The effort to detect and track the plume was given to the Deepwater Horizon Response Subsurface Monitoring Unit (SMU), led by NOAA’s Office of Response and Restoration, and included responders from many federal and state agencies and British Petroleum (BP). Between May and November 2010, the SMU coordinated data collection from 24 ships on 129 cruises.  

The SMU data archived at NOAA’s National Oceanographic Data Center (NODC) is already being used by researchers at NOAA and in academia for a range of studies, including models of oil plume movement and investigations of subsurface oxygen anomalies. In addition to NODC, other parts of the NOAA archive system such as NOAA’s National Geophysical Data Center and the NOAA Central Library contain important holdings. Recently, the library‘s Deepwater Horizon Centralized Repository won recognition from the Department of Justice “as one of the best successes in the Freedom of Information Act (FOIA) world last year.”

By law, these data will remain available through NOAA’s archive systems for at least 75 years. Additional data from the Deepwater Horizon/Macondo spill can be found at the NOAA oil spill archive website: http://www.noaa.gov/deepwaterhorizon/ and data collected in the on-going Natural Resource Damages Assessment can be found at: http://www.gulfspillrestoration.noaa.gov/.

Post to be found at:
http://www.maritime-executive.com/article/NOAA-Releases-Millions-of-Chemical-Analyses-from-Deepwater-Horizon-Oil-Spill-2013-09-12/

Denmark's DFDS sees shipping hit by sulfur regulation - Reuters

Posted - September 10, 2013 - By Ole Mikkelsen - Copenhagen - Reuters

Some shipping firms will likely go out of business and others will be forced to close routes in 2015 when environmental rules on fuel oil are tightened in parts of Europe, a senior executive told Reuters.
"Low-sulfur regulation can change the industry fundamentally," Niels Smedegaard, chief executive of Danish shipping group DFDS A/S, said.
"If the politicians maintain these plans, we'll see routes being shut ... and companies fail," said Smedegaard, interviewed in his office with views over Copenhagen Harbour and which is decorated with pictures of steam boats and sailing vessels.
Smedegaard, born in 1962, was relaxed in discussing the impact of International Maritime Organisation rules that will from 2015 dictate that shipping fuel sulfur content should be cut to 0.1 percent from 1.0 percent in coastal waters such as the North Sea, the Baltic and the English channel.
The European Union adopted the regulations last September.
DFDS, best known for its passenger ferries but whose main business is transporting trailers and trucks, has most of its 50 vessels deployed in these Emission Control Areas where the new rules will have a major impact, as cleaner replacement fuels are around 40 percent more expensive.
DFDS spends around 1.8 billion Danish crowns ($320 million) a year on fuel and has invested 400 million equipping eight of its ships with scrubbers - 70 ton devices that remove sulfur from exhaust gases.
The new regulations allow for such solutions as long as they have the same environmental effect as using low-sulfur fuel.
But not all ships are able to use a scrubber and some are just too old to be worth lavishing millions of crowns on. DFDS is therefore considering relocating some vessels to southern Europe, where the regulations come into effect only from 2020.
MORE ROUTES
DFDS - which has a stock market value of just over $1 billion - has only one route in the Mediterranean, operating between Marseilles in southern France and Tunis in north Africa.
"The ships not equipped with a scrubber could be recycled to other areas, but we would need more routes," said Smedegaard, who was casually dressed in a light colored open-necked shirt and no jacket.
Oil and shipping group A.P. Moller-Maersk last week sold its 31.3 percent stake in DFDS to a group of institutional investors and to DFDS itself.
Despite buying shares worth 628 million crowns, DFDS says it still has a war chest which could be used for buying rivals. "If we find something that fits into our strategy and creates value for shareholders we are ready," Smedegaard said.
DFDS earlier this year made a bid for private equity- controlled ferry company Scandlines, which operates routes from Denmark to Sweden and Germany. Smedegaard said he had been ready to pay more than 1 billion euros, but owners 3i Group and Allianz Capital Partners turned down the offer.
"It could have been a considerable investment for DFDS," Smedegaard said. Scandlines and its owners are now set to strike a refinancing deal, several people familiar with the process said.
After buying 12 percent of its own share capital from Moller-Maersk, DFDS's ratio of net interest-bearing debt to operating profit increased to 2.4 from 1.8.
"Two to three is a good range to be in, but we can go up to four times operating profit ... without problems because we have a very strong cash flow," Smedegaard said. ($1 = 5.6281 Danish crowns)
(Editing by Geert De Clercq and David Holmes)


Post to be fund at:
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Port of Rotterdam Sees Arrival of First Commercial Ship via Northern Sea Route - gCaptain

Posted  September 11, 2013 - gCaptain

A Chinese cargo ship has become the first commercial vessel to reach Rotterdam from Asia via the Northern Sea Route.
According to reports, the Chinese-flagged MV Yong Sheng arrived at the Port of Rotterdam on Tuesday following a 33 day voyage from the Port of Dalian in northeastern China.
The transit also marks the first time a Chinese commercial vessel has sailed the famed arctic sea route, linking Europe with ports in East Asia by way of the Bearing Sea and Arctic Ocean north of Russia.
Using the Northern Sea Route saves about two weeks time compared to the southern alternative; sailing around southeast Asia, past India, through the pirate infested waters of the Indian Ocean and Gulf of Aden, through the Suez Canal, into the Mediterranean Sea and past the Strait of Gibraltar.
In recent years the Northern Sea Route has become increasingly popular in terms of commercial shipping due to melting sea ice.
A recent Reuters report said that 46 ships carrying around 1.25 million tons of cargo traversed the route in 2012 -a far cry from the 740 million tons of cargo that went through the Suez Canal- but said that that number is predicted to rise to 1.5 million tons in 2013 and 40 million tons by 2021.



SEE: Opportunity Ripe for Shipping Boom Along Arctic Northern Sea Route
Still, the significance of the MV Yong Sheng’s transit remains to be seen and the idea of a ‘shipping boom’ along the Northern Sea Route is not shared by all.
“In contrast to recent reports, Arctic shipping will remain of limited importance to China,” said Malte Humpert, Executive Director of The Arctic Institute. “The geographic distribution of China’s main trade partners and its substantial and ongoing investments in port infrastructure along existing trade routes speak counter to the idea of large-scale Chinese trans-Arctic shipping.”
“With the melting of Arctic sea ice, Arctic shipping has become part of today’s maritime landscape,” added Andreas Raspotnik, an analyst at the Institute. ”Large-scale trans-Arctic shipping and a shift in global trade patterns towards the Arctic, however, are far from becoming a reality. Traffic along the NSR will continue to be dominated by regional – primarily Russian – traffic and remain a seasonal and niche trade route.”

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Tanker Damaged by Ice in Northern Sea Route, Remains Stuck - gCaptain

Posted - September 10, 2013 - Mike Schuler - gCaptain

UPDATE: Conflicting reports exist over whether or not the tanker remains stuck in the ice floe.
A tanker fully laden with diesel fuel has found out first hand that the Northern Sea Route is no place for taking chances.
According to reports, the 6,403 dwt tanker Nordvik sustained damage and was taking on water following a September 4th run-in with an ice floe on the Arctic Northern Sea Route. So far there have been no reports of an oil spill or injuries, but it would seem that the tanker remains stuck in the floe and is awaiting the arrival of another ice-strengthened tanker to come discharge her cargo.
A report by the Northern Sea Route Administration says that the Nordvik was sailing from Ob Bay to Khatanga with 4,944 tons of diesel fuel when it ran into ice in the Matisen Strait.
The Nordvik sustained damage to one her ballast tanks and was taking on water, but the ingress was stopped after crews plugged the hole.

Tanker Nordvik, pictured here, is only rated to operate in the lightest of ice conditions.

The Barents Observer, citing information from the NSR Administration, reported that the vessel had permission to sail in the Kara Sea and the Laptev Sea in light ice conditions and only under escort by an icebreaker.
The owners of Nordvik, identified as Khatanga Commercial Port, is reportedly negotiating with a Russian icebreaker to come escort the vessel to Khatanga.
The incident underscores the threats and concerns held by authorities and shippers alike over increased shipping in the Arctic region.
“[This] accident was a direct threat to the lives of sailors and the ecology of the Arctic,” a representative for the Seafarer’s Union of Russia said on the union’s website, according to the Barents Observer report. “Vessels like that should not be sailing on the NSR, simply because they are not capable of withstanding the ice conditions.”


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Future of low-sulphur shipping fuel under the spotlight - Noodls

Posted 10, 2013, Noodls

Press Release - DFT - UK Department for Transport 

DFT - UK Department for Transport

DFT - UK Department for Transport

Governments and industry representatives met in London today (10 September 2013) to discuss the future availability of low-sulphur fuel which will drive down pollution from shipping.
In 2008 the UN's International Maritime Organization (IMO) agreed measures to limit polluting sulphur emissions from shipping.
The sulphur limit for fuel used in seas other than specially designated emission control areas, which have stricter limits, is currently 3.50%, and will be reduced to 0.50% from 1 January 2020 - subject to a review of the availability of 0.50% sulphur fuel.
As part of London International Shipping Week, Secretary-General of the IMO, Koji Sekimizu, and Shipping Minister Stephen Hammond hosted an event today (10 September 2013) for invited representatives of maritime nations and international industry associations at which the hosts stressed the importance of dispelling the uncertainty which surrounds the start date for the review and highlighted a way forward.
Mr Sekimizu said:
IMO has set a goal for sulphur regulations in 2008 and the current global target is set for 2020. It is important for IMO to act now to have a clear picture on the availability of the required quantity of the low-sulphur fuel as soon as possible.
- See more at: http://www.noodls.com/view/3D85378D6BD67DE77DD8A7C0489DB35150197D42#sthash.eeSgwhqu.dpuf

Governments and industry representatives met in London today (10 September 2013) to discuss the future availability of low-sulphur fuel which will drive down pollution from shipping.

In 2008 the UN's International Maritime Organization (IMO) agreed measures to limit polluting sulphur emissions from shipping.

The sulphur limit for fuel used in seas other than specially designated emission control areas, which have stricter limits, is currently 3.50%, and will be reduced to 0.50% from 1 January 2020 - subject to a review of the availability of 0.50% sulphur fuel.

As part of London International Shipping Week, Secretary-General of the IMO, Koji Sekimizu, and Shipping Minister Stephen Hammond hosted an event today (10 September 2013) for invited representatives of maritime nations and international industry associations at which the hosts stressed the importance of dispelling the uncertainty which surrounds the start date for the review and highlighted a way forward.

Mr Sekimizu said:

IMO has set a goal for sulphur regulations in 2008 and the current global target is set for 2020. It is important for IMO to act now to have a clear picture on the availability of the required quantity of the low-sulphur fuel as soon as possible.

Annex VI stipulates that the review must be completed by 2018, but there is nothing to say that it cannot be completed earlier. Indeed, there is a strong argument that early completion of the review of the availability of low sulphur fuel will give more time for all concerned, including the refinery industry, to take the necessary action and react in time to meet the requirements if such a need is identified.

Mr Hammond said that the review should start at the earliest realistic date consistent with adequate information being practically available, which the UK considers to be January 2015:

Mr Hammond said:

Reaching agreement on the new sulphur limits in 2008 was a notable achievement, and as a consequence enhanced the reputation of the IMO. Now it is vital to agree the timing of this review.

Uncertainty around dates is likely to delay crucial investment decisions and industry needs a clear steer. All sectors of the shipping and petro-chemical industry would be better able to plan, control costs and manage the transition once we have a date for the review.

Mr Hammond said that the UK plans to submit a paper on the subject for the consideration of the next session of the IMO's Marine Environment Protection Committee next spring.

Pollutant emissions from ships are regulated by Annex VI to the International Convention for the Prevention of Pollution from Ships (commonly known as the MARPOL convention). In October 2008, the IMO formally adopted the revised Annex VI, which imposes phased stringent requirements for sulphur emissions from ships:

• in emission control areas (ECAs), with the most stringent requirements coming into effect on 1 January 2015
• in waters which are not ECAs, with the most stringent requirements coming into effect in 2020 unless a review of the availability of 0.50% sulphur fuel (which must be completed by 2018) indicates that sufficient fuel will not be available, in which case the requirement may be deferred to 2025

The IMO has designated 3 ECAs which are currently in effect: the Baltic Sea ECA (sulphur oxides only); the North Sea ECA (sulphur oxides only), which includes the English Channel; and the North American ECA (sulphur oxides, nitrogen oxides and particulate matter). The IMO has also designated the United States Caribbean Sea ECA (sulphur oxides, nitrogen oxides and particulate matter), which will take effect on 1 January 2014. 

MARPOL requires the review of the availability of 0.50% sulphur fuel to have been completed by 2018. The start date of the review has been considered by an IMO correspondence group. The correspondence group reported to the 62nd session of the IMO's Marine Environment Protection Committee in 2011 that the start date should be between 2015 and 2017 for the review. The correspondence group's report did not favour a start date before 2015. The committee has yet to take a decision on the appropriate date for the start of the review.


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