The 2020 global sulphur cap is a daunting challenge for the shipping industry and one that requires a harmonised approach. Now more than ever, it is crucial to equip shipowners and PSC with reliable data to check and prove compliance quickly and onsite
In his opening address at IMO’s Sub-committee on Pollution Prevention and Response (PPR) meeting in February, secretary general Kitack[ds_preview] Lim reiterated that the IMO is standing its ground on the implementation of the 2020 sulphur cap, and that there would be »no turning back«. With just 19 months to the implementation date, most shipowners are scrambling to find a cost-effective and reliable solution that will ensure compliance in the most efficient manner. The industry continues to be inundated with conflicting opinion and endless reports and speculation on the viability of the various routes to compliance, and while shipowners and operators are clearly most concerned about achieving the most economically feasible option for compliance, what’s becoming clearly apparent is the keen focus that the regulators have on driving the global implementation of the regulation, and how compliance will be policed.
Despite the short window until the directive becomes mandatory, significant questions remain around compliance testing and the enforcement of the sulphur cap on a global basis. Who is responsible for ensuring that the fuel on board the vessel is compliant? What impact will this have on insurance policies? Will there be formal processes in place to ensure both shipowners and port authorities can effectively test and prove compliance with the sulphur cap regulation? Will there be any guidance issued on compliance testing?
One thing that is undoubtedly clear is the need to ensure a harmonised, global enforcement process for the 0.5% sulphur limit that will deter non-compliance, thereby ensuring that the directive is implemented successfully and achieves its desired effect of significantly reducing sulphur emissions from shipping. As Anne H. Steffensen, Director General of the Danish Shipowners’ Association, rightly warns, »we must get sulphur enforcement right otherwise there will be distortions in the market«.
Fines and penalties for non-compliance with current sulphur regulations vary in severity. For example, the highest fine in Denmark is currently 60,000$ for vessels operating in the special environmental control areas. However, a recently reported breach by a cruise vessel in French waters could result in a fine of up to 200,000$ and a potential prison sentence for the shipowner. Looking ahead to 2020, the lack of clarity around enforcement and the significant variation in potential penalties is generating widespread debate and conjecture. Non-compliance of competitors is an issue for those companies that intend to comply with the regulations, and the additional costs associated with meeting the sulphur cap regulation will mean those who do not comply could gain a significant and unfair pricing advantage.
To address this, various measures and initiatives are currently being addressed by the regulators. The PPR is currently working on measures to ensure the consistent implementation of the sulphur cap, and these guidelines will also look to cover the shipowners’ plans for implementation, verification and control issues, as well as fuel non-availability reporting. The PPR has also agreed to the proposed draft amendments to MARPOL Annex VI that will prohibit the carriage of non-compliant fuel oil. To further support a uniformed approach to compliance, China submitted its proposal to IMO’s MEPC72, suggesting that the analysis of sulphur content in fuel oil should be made mandatory to avoid disputes, and that testing methods should be measured against ISO 8754 or ISO 14596 standards.
PSC takes regulations seriously
More recently, the Paris MoU has agreed to issue a »Letter of Warning« from port state control (PSC) inspectors, beginning January 1, 2019, to encourage timely compliance. According to Richard Schiferli, secretary general of the Paris MoU, the move serves as a signal to the industry that PSC takes enforcement of the new sulphur regulations seriously, right from the start.
While on-going efforts to beef up enforcement are happening in the background, it is vital to provide PSC and shipowners with easy access to the data they need to accurately check and prove compliance. Traditional methods for confirming compliance rely on paperwork requirements such as the Bunker Delivery Note (BDN). This not only significantly increases the risk of non-compliance and subsequent penalties for shipowners, but also heightens the environmental impact of burning fuel with a higher sulphur content. In addition, the delay incurred by laboratory analysis creates the risk that the vessel may have left port with non-compliant fuel onboard, or may require non-compliant fuel to be de-bunkered and compliant fuel re-bunkered, incurring significant delays and additional cost. Accurate and reliable portable sulphur testing allows for a »spot check« analysis of the sulphur content in fuel. For PSC, it gives them the ability to easily ascertain the sulphur content of fuel in-situ and efficiently target vessels for sampling and compliance testing, before the vessel leaves port with non-compliant fuel onboard. And for shipowners, portable sulphur testing allows them to quickly and easily determine if the fuel is compliant, and to »spot check« fuel before it’s bunkered, preventing them from bunkering – and potentially then needing to de-bunker – non-compliant fuel, incurring penalties and significant delays.
The Parker Kittiwake XRF analyser provides on-site analysis of the sulphur content in fuel onboard a vessel, allowing PSC to ascertain compliance almost instantly, and allowing shipowners the opportunity to avoid fines, plus the time, expense and operational impact of bunkering non-compliant fuel. The XRF analyser provides an accurate indication of sulphur content through the analysis of a small fuel sample in less than three minutes, and test results can be printed out with a time stamp from a bespoke tamper proof printer, allowing operators to manage compliance audits more efficiently. Furthermore, the portable device can also be used to measure a range of wear metals in lubricating oil, allowing operators to quickly identify potential damage in cylinder liners, bearings, piston rings, gears, stern lubes and hydraulic systems.
The enforcement of the 2020 global sulphur cap is a daunting challenge for the global shipping industry and one that requires a harmonised approach. Now more than ever, it is crucial to equip shipowners and PSC with reliable data they need to check and prove compliance quickly and onsite, allowing them to take timely and appropriate action. This will ensure a level playing field that will not only benefit shipowners, but will also facilitate the successful implementation of the global sulphur cap.
Author: Larry Rumbol
