On 1 January 2020 the much-anticipated regulations to reduce limits on sulphur in fuel oil came into force and brought about a significant cut in sulphur emissions from shipping. The upper limit of the sulphur content of ships' fuel oil was reduced to 0.5% (from 3.5% previously). One year on, the transition to the new fuel types seems to have gone fairly smoothly and without bringing major disruptions to the maritime industry.
In the run-up to the new rules a major concern was insufficient availability of the very low sulphur fuel oil (VLSFO). This proved not to be a problem. According to Roel Hoenders, Head of Air Pollution and Energy Efficiency at the International Maritime Organization (IMO), only 55 cases of 0.50% compliant fuel being unavailable had been reported in IMO's Global Integrated Shipping Information System (GISIS) throughout 2020. This remarkably small number of ships facing difficulties to obtain low sulphur fuel is evidence of the thorough preparation by all stakeholders to ensure that fuel availability would not be problematic.
An alternative means to reduce air pollutants is the installation of exhaust gas cleaning systems (or so-called "scrubbers"). According to the IMO, around 3,100 of such systems have formally been reported as an approved "equivalent method" by flag administrations in the course of 2020. However, many ports and coastal states around the world have moved to ban open loop scrubber systems due to concerns about adverse effects of the wash water on the marine environment. Hence, those who chose this option to comply with the IMO 2020 rules are now facing significant challenges.
A second concern were the potential safety issues linked to the new fuel types. In this regard the IMO reported that no safety issues or catastrophic damages were submitted to the organisation throughout the first year of the new rules. While this is reassuring, Charlotte Røjgaard from Bureau Veritas’ VeriFuel, noted that there were a few “bumps on the way but that the industry is stabilising post IMO 2020”. In a recent IUMI webinar, she highlighted viscosity variations and geographical variations as significant factors of the new fuel blends: VLSFO characteristics showed a wider viscosity distribution and generally lower viscosity. George Margetis from Margetis Maritime Consulting added that the new blends require an extremely careful onboard fuel management. A greater awareness of the fuel properties with regard to managing storage, treatment and onboard fuel handling temperatures is therefore required, thus adding to the complexity of the fuel handling.
The webinar recording and slides are available HERE.
