Is enforcement failing new maritime regulations?

Speaking to Seatrade Maritime News following the Capital Link conference at Posidonia, Martin Crawford-Brunt, the CEO at maritime consultancy Lookout Maritime, explained that regulations are becoming increasingly complex and difficult to decipher, even for those tasked with enforcing the new rules.

“From 1 January 2025, anyone burning conventional fuels will be paying an additional $70 per tonne for all FuelEU related voyages,” said Crawford-Brunt, who, talking more broadly about regulation added, “With the level of complexity, I’d question its impact and how will it be driving change? What you need is a blend of market forces and regulation to solve the decarbonisation challenge,” said Crawford-Brunt.

Regulation is changing and it requires a different response from the traditional "compliance at minimum cost" approach.

However, the complex rule changes “could defy ‘commercial gravity’ because it incentivises people to find workarounds,” claimed Crawford-Brunt.

He further pointed out that even comparatively simple regulations are challenging to implement.

“Ending the practice of “sail fast to wait” by slowing ships down to reach the port at an optimal time while ensuring a buffer for the terminal, is so simple a five-year-old will get it immediately. However, we don’t seem to have the appetite or willingness to implement this practice which would reduce operational emissions by 10-15%.

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Perhaps slow steaming could be considered one workaround. George Procopiou, founder of Dynacom Tankers, told the Capital Link audience: “I mentioned that seven years ago, but that's why I said that is a great policy. If seven years ago they said that we reduce speeds by two knots we would have saved millions of tonnes of CO2 emissions over these years and our friends from Scandinavia would have a better market for their ships.”

Andrian Dacy, MD and group head global transportation group JP Morgan Asset Management, and on the same panel as Procopiou, believes: “The industry needs some ways to group together to have a dialogue with regulators. I think some goals, while they're great and aspirational, may be difficult to achieve if we don't have that dialogue.”

Even so, Procopiou argues that there is “a great hypocrisy in the world regarding emissions and the way to go.” He believes that shipping should be applauded for its efficiency compared to other industries.

Crawford-Brunt, however, believes: “The commercial side of the business needs to have greater awareness and understanding of the new trading and market elements that EU ETS and FuelEU introduce, beyond avoiding cost surprises, to the opportunities they present to position oneself favourably.” 

Related:Act today to reduce emissions ahead of new fuels says Shell