Seatrade Maritime is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Shipping’s low sulphur fuel challenges

Shipping’s low sulphur fuel challenges
While the shipping industry scored a significant victory in terms of regulation with the IMO agreeing to review the Ballast Water Management Convention, however, it continues to face many other issues in areas such as emissions.

At Denmark's recent maritime week, Danish Maritime Days, the issue of the upcoming 0.1% sulphur cap from 1 January 2015 in North Europe and North America was high on the agenda. While the biggest impact will be owners in domestic and regional trade it will also impact shipowners and managers from around the world whose vessels trade into these regions and will have to cope with issues such as fuel switching.

In Asia there is also a gradual move towards ECAs in Hong Kong and South China, although at a 0.5% sulphur limit, and possibly in other locations as well.

But it is not just ECAs where low sulphur is a concern, as early as 2020 the global sulphur cap could be 0.5%, a huge reduction from 3.5%. This was certainly a major issue at last week's mega-bunker confab Sibcon 2014 in Singapore. APL, Bimco and BP all flagged concerns over when the transition date, either 2020 or 2025, will be known. At present the implementation date is subject to a study on low sulphur fuel availability by the IMO, which will only be completed in 2018. Shaj Thayil, speaking for both APL and Bimco, said they want the study brought forward so as to provide more certainty for the industry.

Worryingly for the industry Marco Antonio Costa Tritto, global bunker business manager and residuals and feedstocks deputy general manager at Petrobas told our correspondent that they would not have enough low sulphur fuel oil to supply the number of ships that would require it under a 0.5% global sulphur cap be it in 2020 or 2025.

With the uncertainties that exist around low sulphur fuel and future regulations it is little surprise to see LNG as a marine fuel gaining further traction. Last week saw the official launch of the new industry body Society of Gas as a Marine Fuel, while the Port of Sohar in Oman also announced its LNG bunkering plans. The age of gas-fuelled ships traversing the world's oceans may well arrive quicker than many expected.