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IMO 2020 - 22% unable to comply - Palau Registry survey

An IMO 2020 survey by Palau International Ship Registry (PISR) provides insight into the readiness of smaller owners for the sulphur cap with some 22% saying there is no way they can comply.

The survey conducted in recent months by the registry saw 337 responses in total and 219 from shipowners and managers. Of the shipowners and manager the majority 68% had small fleets of 1 to 7 vessels, 8.68% had 8 -10 vessels, and 22.37% of respondents a fleet of 10 or more vessels.

While PISR painted a positive picture of the results the survey revealed that many owners and manager were either waiting to see in terms of compliance or simply would be unable to comply.

In answer to a question as which described their intention about the IMO 2020 regulation just 33.96% said their vessel(s) would definitely comply with the regulation. The largest proportion 44.03% said they would “wait and see how the market reacts”. Some 22.01% said there was “no way we can comply” and their vessel(s) would not be commercially viable under regulation.

The wait and see approach would seem to be reflected in a surprisingly high number of respondents who expected the sulphur cap to be delayed from its 1 January 2020 implementation date despite repeated statements by the IMO there will be no delay.

Some 47.29% of respondents said they thought the 1 January 2020 date for the regulation to come into force "might change", while 52.71% said the date would not change.

In terms of those that have decided in terms of compliance the vast majority – 83.06% plan to use compliant low sulphur fuels, some 14.52% have installed scrubbers, while 2.42% plan for some other unspecified form of compliance.

Panos Kirnidis, ceo of PISR commented: “Our recent PISR survey, conducted among ship owners, managers and operators produced some interesting results, none more so than strong indication from more than 86% of the respondents saying they will comply with the forthcoming new regulation by using gas as a fuel or low-sulphur compliant fuel oil.”

Full results of the survey can be viewed here

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