Tough decisions for tanker owners as environment concerns grow

Trouble is that the number of ECAs is likely to grow as nations express their concerns about emissions as London broker EA Gibson points out.

Turkey has ratified Marpol Annexe VI and is planning to apply in 2015 to have the Turkish Strait and Marmara Sea declared an ECA, while Hong Kong has announced plans for a voluntary reduction in sulphur content at berth incentivised by reductions in port dues with a long term goal of creating another ECA. Other nations are also reviewing their positions regarding ECAs.

If owners are to continue to burn higher sulphur fuel they are going to have to install scrubber kits to clean exhaust gases, which is expensive and unproven because although the technology has been around for years, few ships have it installed, or burn distillates requiring modifications to engine technology and additional bunker tanks, and likely additional fuel costs.

Although the IMO might postpone the 2020 deadline to 2025 because of problems with the availability of distillates until 2025, the 2020 deadline is already enshrined in European Union law.

Meanwhile tanker owners have to come to grips with Ballast Water Management. For owners with tankers coming up to third special survey, the complications of having to deal with these separate strands of legislation may prove a bridge too far. Retrofitting two unproven technologies at a cost of million dollars may persuade them to get out of the game. That might help reduce the tanker surplus.

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