Countdown to IMO sulphur 2020: States and shipowners must stay the course

Countdown to IMO sulphur 2020: States and shipowners must stay the course

With barely a hundred days until the IMO 2020 sulphur cap takes effect, shipowners and IMO
Member States are making final preparations. Shipowners have a clear role in preparing their crew,
networks and vessels. Member States, as flag-States and as port-States, also have a vital role in
securing the successful implementation of these rules. However, reports indicate some States may
opt not to fully meet their enforcement obligations. In response, the Trident Alliance today has published a statement outlining the negative legal (and other) consequences of such an approach, both for States and shipping companies.

CSL Group, Oldendorff Carriers join Trident Alliance  

Global support for effective Sulphur enforcement continues to grow across shipping industry .

 The Trident Alliance, a network of shipping companies and other stakeholders with a shared interest in robust and transparent enforcement of environmental regulations, is delighted to welcome CSL Group and Oldendorff Carrieras our newest members.   

As members of The Trident Alliance, the CSL Group and Oldendorff Carriers have committed to compliance with the new IMO 2020 maritime Sulphur regulations and support robust and transparent enforcement of these regulations.   

“Safety and environmental stewardship are fundamental corporate objectives and core values at CSL,” explained Louis Martel, President and CEO of CSL Group, a Canadian-based provider of marine dry bulk cargo handling and delivery services. “So we are thrilled to join the Trident Alliance and add our voice to the growing calls for fair enforcement of environmental compliance.”  

“At Oldendorff Carriers we live and work on the oceans and we are dedicated to preserving and maintaining our environment,“ said Peter Bagh, Chief Operating Officer at Oldendorff Carriers. “We are pleased to join the Trident Alliance to broaden support for effective regulatory enforcement, and we look forward to working with other industry stakeholders to reach our shared objectives.” 

“I am very happy to welcome CSL Group and Oldendorff Carriers to the Trident Alliance,” said Roger Strevens, the Chair of the Trident Alliance and VP of Global Sustainability for Wallenius Wilhelmsen. “Our coalition has swelled to include 49 shipping owners and operators from around the globe, all sharing a common interest in effective enforcement of maritime Sulphur regulations and the will to collaborate to help bring it about. I applaud the strong commitment and visionary leadership from each of our members.” 

Is there really a risk of non-compliance ?

With only a handful of months left until the IMO’s new sulphur regulations kick in, it’s a good time to reflect on how the Trident Alliance has already made a lasting impact, and chances are improving that the IMO’s new rules will be fairly and consistently enforced around the world.

Starting back in 2015, the IMO has made good progress with the development of regulations that help ensure a complete and successful implementation:

  • A ‘Carriage ban’ prohibiting vessels from having >0.50%S fuel onboard, unless equipped with a scrubber, or where the fuel is being carried as cargo. This regulation helps authorities enforce because it makes it possible to determine a vessel’s compliance based on the fuels onboard, without having to prove what fuels have been consumed where. The regulation takes effect on March 1st, 2020, but all vessels must comply with the regulation from the 1st of January 2020.

  • A new Bunker Delivery Note format puts an obligation on the fuel suppliers to be satisfied that the fuel that they provide can be used in a compliant manner.  In effect, it means if they supply high sulphur fuel (HSFO), they need to be satisfied that the vessel is equipped with a scrubber.

  • The IMO has also adopted several other regulatory measures for ensuring compliance with the 2020 sulphur limit, including a so-called FONAR (Fuel Oil Non-Availability Report) template which ships must use if they encounter non-availability in a port. A non-mandatory template for a 2020 Ship-Implementation-Plan was also agreed upon, which can be shown during a PSC. It will be up to each port State to decide which emphasis, if any, it will place on such a plan onboard. Finally, the guidelines for Exhaust Gas Cleaning Systems (e.g. scrubbers) were updated in a circular regarding what to do in case of scrubber breakdown.  

These regulations raise the stakes for any company that might try to cut corners on compliance. The risk of getting caught is increasing significantly. However, although these regulatory tools strengthen the hand of the enforcement authorities, a critical question remains: will they be put to the best possible use?

Much remains to be done

Adopting sulphur regulation is not enough by itself to achieve better environmental or health outcomes – as the cost of compliance rises it is increasingly important for regulations to be enforced for them to achieve their full benefit. Authorities have a key part to play in implementing regulation. That includes specifying the roles and responsibilities around monitoring and inspecting, making the necessary legal preparations, determining non-compliance penalties, etc. Enough resources to train staff, conduct inspections and develop effective detection methods must also be allocated, and investments in the associated equipment and infrastructure must be made.

Today, only about 30 countries have experience with enforcing sulphur regulations – mostly the nations with Sulphur Emission Control Areas (SECAs). Evidence from the introduction of the ECAs in 2010 and the tightening of the ECA limit 2015 shows that even with generous warning, proper preparation for and implementation of regulation takes time. It is crucial that all states work to ensure the necessary regulatory and enforcement frameworks are ready for January 1, 2020. On that point, it is important to note that there is an existing legal basis within the United Nations Convention on Law of the Sea which allows for port States to assert jurisdiction over SOx violations on the high seas when dealing with flag States that do not enforce Annex VI effectively, hereby providing a legal basis for imposing fines of such a magnitude that they can deter future violations.

The range and quality of enforcement tools and techniques have improved since the ECAs were introduced, but the 2020 global sulphur cap, which also applies to the high seas, presents new challenges. Among the enforcement tools being further developed are remote sensing technologies. The Trident Alliance welcomes this focus and supports the adoption of reliable, existing and new compliance detection techniques and technologies. Effective compliance detection and enforcement tools, when used in conjunction with the carriage ban, will be an important deterrent for anyone considering noncompliance.

Transparency as a deterrent

It is important that all nations, including all of those without previous sulphur enforcement experience, are ready by January 1, 2020. Even for those with prior experience in national waters (incl. Exclusive Economic Zones), it is unclear how they will they will meet their enforcement obligations on the high seas. One of the reasons it is unclear is because it is often difficult to determine how far nations have come in their 2020 preparations. There is a concerning lack of transparency from too many authorities on their enforcement arrangements. Authorities should share information on enforcement with one another. In fact, UNCLOS stipulates that this is an obligation for flag States.

Transparency can be a formidable enforcement tool, especially if combined with penalties for noncompliance which, to borrow from MARPOL, are “adequate to discourage violations”. Knowing that nations are prepared and that there are grave consequences for gross, deliberate non-compliance will focus minds and make very clear that there is simply no business case for choosing to be noncompliant.

Trident Alliance believes it is in the interest of responsible industry and other stakeholder groups for authorities to publicise the main points of their enforcement approach, including details of how penalties for non-compliance are determined.

Will there really be non-compliance?

The level of enforcement of the 2020 global cap and the level of compliance with it remain unknown.  If carriers are at risk of having to compete against the ‘one bad apple’, nothing but full compliance can be the goal of enforcement authorities. While doubt remains, there is an unacceptable risk to responsible businesses.  Fines for non-compliance should be sufficient to discourage violations.

What’s certain is the temptation for non-compliance will be significant, so if optimal levels of compliance with all its benefits are really to be expected, enforcement must be robust -- right from the start.



Trident Alliance calls for adoption without delay of IMO Carriage ban for fuel with sulphur content over 0.5%

Adoption without delay of IMO’s ‘Carriage ban’ on non-compliant fuel is critical to the successful implementation of the 2020 0.50% global sulphur cap

The Trident Alliance believes robust and effective enforcement is vital if the full health and environmental benefits of the 2020 sulphur cap are to be achieved while also preserving fair competition. At MEPC 73 in October IMO Member States must formally adopt the carriage ban on non-compliant fuels for implementation in 2020, as it is a fundamental tool for securing strong global enforcement.

The entry into force date of the 2020 global 0.50% sulphur cap is set in stone. From the 1st of January 2020 the maximum permissible sulphur content for marine fuel will be reduced from 3.50% to 0.50% for all vessels that are not equipped with a scrubber.

The 2020 regulation change will provide a reduction in the global sulphur cap of more than 80%, with considerable environmental and health benefits. The new regulation will also significantly increase shipowners’ operating costs. Therefore, robust and effective enforcement is vital to ensure fair competition is maintained.

At the next IMO MEPC meeting in October, the carriage ban on non-compliant fuel is on the agenda for formal adoption, to take effect in March 2020. There are now attempts to defer implementation due to uncertainty over fuel attributes, matters that are already being addressed by the relevant IMO bodies, and which well-prepared shipowners have already taken into consideration.

The Trident Alliance believes that the IMO carriage ban on non-compliant fuels is a crucial enforcement tool in the successful implementation of the global 2020 sulphur cap. Trident Alliance Chair, Roger Strevens, says:

“The Trident Alliance stands firm on the need for robust and effective enforcement and views the carriage ban on non-compliant fuel as a very strong tool to secure that outcome.”

“After 1st January 2020 it is not necessary to have high sulphur fuel in the fuel tanks of vessels without scrubbers installed. Therefore, the Trident Alliance cannot accept any postponement of the carriage ban. We strongly urge all Member States to stand firm on this.”

The carriage ban on non-compliant fuel strengthens the hand of enforcement authorities  by removing the requirement to prove that a vessel has been using non-compliant fuel.  Just having it in any fuel tank on board, unless the vessel has a scrubber, will be a breach of the regulation. This provides a needed shift in the burden of proof, making enforcement easier and stronger.

“With 450 days to 2020, preparation and commitment is the only way forward for all parties now. The industry needs to focus on the big change-over and make robust plans for this. Member states, on their side, need to focus on effective enforcement to guarantee a level playing field in 2020,” says Roger Strevens.

MEDIA CONTACT:
Roger Strevens, Chair Trident Alliance
email: roger.strevens@walleniuswilhelmsen.com
Tel: +47 410 43 864

Bunkerspot: Senior member of Trident Alliance raises 2020 concerns

The first year of the global 0.5% sulphur cap ‘will be a $72 billion free ride,’ says Trident Alliance steering committee member Poul Woodall.

Speaking at the S&P Global Platts European Bunker Conference, Woodall, who is director, environment & sustainability, DFDS, said 180 million tonnes of marine fuel would have to change from high sulphur products to low sulphur products by 2020, which would result in $72 billion in additional costs.

‘This figure is so big...it’s a significant amount of money for every day you avoid this additional cost,’ said Woodall.

Read the full article here: https://www.bunkerspot.com/europe/44106-global-senior-member-of-trident-alliance-raises-2020-concerns

Robust implementation is key to success of 2020 0.5% Global Sulphur Cap

The Trident Alliance has welcomed IMO’s decision on introduction date of the 0.5% Global Sulphur Cap, but stresses the need for a robust implementation plan. 

The Trident Alliance believes that effective enforcement of the Global Sulphur Cap promises to be even more challenging than enforcing the ECA zones currently in effect. For effective implementation, the signatories to Marpol Annex VI must adopt clear legal frameworks, together with a plan to ensure consistent implementation internationally, guidelines for robust enforcement and sanction schemes that are a real deterrent to non-compliance.

“Strong engagement by the IMO member nations on effective implementation of the Global Sulphur Cap is as important as the committee’s decision this week,” said Anna Larsson, Chair of the Trident Alliance.

As part of its decision to adhere to the 2020 implementation date, the MEPC also agreed to discuss measures needed to implement the 0.50% sulphur limit. Those discussions will begin at IMO’s PPR Sub-Committee when it meets in January 2017.

“A lot of work remains to ensure a level playing field for the industry and before the 0.5% Global Sulphur Cap will begin to have the intended impact on human health and the environment. Trident Alliance members will contribute as much as possible in this process, sharing their experience and insights from the implementation of sulphur regulations across the globe,” added Larsson. 

The Trident Alliance coalition of 39 ship owners and operators have worked since 2014 to ensure robust implementation of sulphur regulations across the globe. 

ENDS

About the Trident Alliance
The Trident Alliance (www.tridentalliance.org) is a coalition of ship owners and operators who share a common interest in robust enforcement of maritime sulphur regulation as a means to ensure fair competition and are willing to collaborate to help bring it about. The Trident Alliance partners with other stakeholder groups, who share the interest in robust enforcement, to work on specific initiatives that support this objective.

The organisations focus is on communication to raise awareness of the issue, supported by compliance transparency measures, as well as on initiatives to foster innovation in enforcement technology.

The Trident Alliance Members: American RORO Carrier, Ardmore Shipping Corporation, Biglift,  Cargill, Crowley, DFDS, EUKOR, Euro Marine Logistics, Fjord Line, Flinter, Grieg Star, Hamburg Sud, Hapag-Lloyd, Höegh Autoliners, Intermarine, Ionic Shipping, J. Lauritzen, Maersk Line, Maersk Tankers, Marinvest, Nordic Tankers, Rickmers Linie, Scandlines, Scorpio, Seatrade, Solvang, Spliethoff, Stena, Torvald Klaveness, Transfennica, UECC, Ultrabulk, Ultragas, Ultratank, Unifeeder, Wallenius Wilhelmsen Logistics and Wijnne Barends.

For regular updates on sulphur regulations and their enforcement, join the Trident Alliance Group on LinkedIn.

On enforcement of sulphur regulations
Over the past years, significant steps have been taken to implement regulations to limit sulphur emissions from shipping. Whilst necessary, these regulations pose a significant cost and compliance challenge to the shipping industry. If the regulations are robustly implemented then compliance is the norm and competition is not distorted. However, when enforcement is weak a temptation is created to cut corners on compliance. The result is that regulations will not have the intended effect of protecting the environment and human health. Also, responsible shipping companies are put at a disadvantage relative to those who are intentionally noncompliant.

Media Contact

Anna Larsson
Chair, Trident Alliance
Tel +47 484 06 919
Email: anna.larsson@2wglobal.com

Twitter: @Alarsso

Trident Alliance welcomes new members Cargill and Fjord Line

September 7, 2016 – The Trident Alliance, a coalition of ship owners and operators working to ensure robust implementation of sulphur regulations, continues to grow with new members Cargill and Fjord Line.  

More than 1 year and 8 months after the introduction of the 0.1% sulphur limit in the North America and European ECA zones, the implementation and enforcement of the regulations remain patchy and more ship owners and operators are joining in the work for more robust enforcement of sulphur regulations.

Cargill is one of the world's largest privately-owned companies, providing food, agricultural, risk management, financial, and industrial products and services around the globe. Cargill charters and operates a global fleet of 500 dry-bulk vessels and approximately 60 tankers.  

“At Cargill, efficient operations has always been part of our business and we are committed to creating a more sustainable shipping industry. As part of the Trident Alliance, we are pleased to charter vessels that comply with maritime sulphur regulations to reduce our environmental impact and increase efficiency,” says Jan Dieleman, president of Cargill’s Ocean Transportation.

Fjord Line is a ferry and cargo shipping company with 600 employees who operate between Denmark, Norway and Sweden. The company operates completely within the European ECA zone, and today have two vessels running on LNG. 

“Fjord Line has been a pioneer with our green innovative strategy by using LNG on our two Cruise and cargo vessels. Joining Trident Alliance we support that all shipping companies shall comply with the new environmental regulations and common actions against those who may not comply to secure a fair competitive business,” says Morten Larsen, CTO of Fjord Line.

The Trident Alliance was founded in 2014, with a focus on improving enforcement of sulphur regulations in ECA zones.  

“We have seen an increased level of enforcement activity in several countries in Northern Europe, with some promising development in the area of airborne sensors which would enable monitoring of sulphur levels at sea and not just in port. Whilst these methods have exposed some sulphur-culprits, the legal framework in several countries appears not to be robust enough to bring them to justice,” says Anna Larsson, Chair of the Trident Alliance.

“Even more concerning is the sea of question marks that remain around the introduction of the Global Sulphur Cap. A decision on the date of implementation is expected to take place this October, and it is imperative that the members of the IMO consider how to ensure effective and robust enforcement on the high seas.”

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More about the Trident Alliance

The Trident Alliance (www.tridentalliance.org) is a coalition of ship owners and operators who share a common interest in robust enforcement of maritime sulphur regulation as a means to ensure fair competition and are willing to collaborate to help bring it about. The Trident Alliance partners with other stakeholder groups, who share the interest in robust enforcement, to work on specific initiatives that support this objective.

The organisations focus is on communication to raise awareness of the issue, supported by compliance transparency measures, as well as on initiatives to foster innovation in enforcement technology.

The Trident Alliance Members: American RORO Carrier, Ardmore Shipping Corporation, Biglift,  Cargill, Crowley, DFDS, EUKOR, Euro Marine Logistics, Fjord Line, Flinter, Grieg Star, Hamburg Sud, Hapag-Lloyd, Höegh Autoliners, Intermarine, Ionic Shipping, J. Lauritzen, Maersk Line, Maersk Tankers, Marinvest, Nordic Tankers, Rickmers Linie, Scandlines, Scorpio, Seatrade, Solvang, Spliethoff, Stena, Torvald Klaveness, Transfennica, UECC, Ultrabulk, Ultragas, Ultratank, Unifeeder, Wallenius Wilhelmsen Logistics and Wijnne Barends.

For regular updates on sulphur regulations and their enforcement, join the Trident Alliance Group on LinkedIn.

Media Contacts

Anna Larsson

Chair, Trident Alliance

Tel +47 484 06 919

Email: anna.larsson@2wglobal.com

Twitter: @Alarsso

 

Iwona Lapinska

Exernal Communications Lead

Cargill Energy, Transportation and Metals

Tel +41-22-703-2111

Email: iwona_lapinska@cargill.com