Guidance on low-sulphur fuel oil now available
28 August 2019BIMCO has contributed to a guidance on the supply and use of 0.50% sulphur marine fuel.
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BIMCO has contributed to a guidance on the supply and use of 0.50% sulphur marine fuel.
BIMCO has produced two clauses for time charter parties to address key contractual issues relating to the switch to fuel with a maximum sulphur content of 0.50% as of 1 January 2020. The two clauses are the 2020 Marine Fuel Sulphur Content Clause, which replaces the BIMCO Fuel Sulphur Content Clause 2005, and the 2020 Fuel Transition Clause, which deals with switching between fuel with a maximum sulphur content of 3.50% and fuel with a maximum sulphur content of 0.50% by 1 January 2020. Both clauses should be incorporated into time charter parties. This clause was published on 10 December 2018.
It is a daunting task so prepare a fleet of ships for the sulphur regulations. Therefore, BIMCO has, together with the partners behind a new IMO-proposal, made a draft for an implementation plan for achieving compliance with the 0.5% global sulphur cap. The plan has the additional purpose of showing the good faith of the ship operator during inspections.
Latest version of this clause is the 2020 Marine Fuel Sulphur Content Clause for Time Charter Parties .
BIMCO and partners have submitted a paper to the International Maritime Organization (IMO), proposing ways to secure a uniform and more accurate way of interpreting results, when measuring the level of sulphur in fuel oil.
BIMCO argues for clear regulations for when and where the samples for fuel in use are taken. The current proposal for sulphur content sampling of fuel on ships would require extensive fitting of new sampling points.
The 2020 0.50% sulphur limit for fuel oil used outside emission control areas will undoubtedly create operational issues for crews onboard ships. The International Organization for Standardization (ISO) has now issued a letter in this regard rebutting these claims.
From 1 September 2021, ship owners and operators calling at ports in Sierra Leone risk penalties of up to USD 15,000 if they carry fuel with a sulphur content exceeding 0.5 percent. Ships or members experiencing problems related to enforcement of MARPOL Annex V or unavailability of compliant fuel are encouraged to inform BIMCO via email hsse@bimco.org with “IMO 2020” in the subject field.
The safety challenges connected with the implementation of the 0.50% sulphur cap are numerous, but not insurmountable. The issues are to some extent known from the implementation of the sulphur emission control areas (SECA) in 2015, among others loss of power, leaking fuel and lower flashpoints. Other issues have to be managed by digging out the experience from the 1980’s with very bad fuel oil quality e.g. instability and incompatibility.
In the first quarter of 2021 high-sulphur fuel oil (HSFO) has been the only bunker fuel to experience year-on-year growth in Singapore, the world's largest bunkering hub.
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+45 44 36 68 00Lines are open Mon-Thurs 08:30-17:00 (CET) Fri 08:30-16:00 (CET)