Coal Freight To Turn Costly As IMO2020 Set To Kick In
Coal Insights|December 2019
Global shipping industry impact likely to be $50-60 billion in 1st year
Sumit Maitra
Coal Freight To Turn Costly As IMO2020 Set To Kick In

Come January 1, 2020, International Maritime Organization (IMO) requirement will reduce the sulphur content permitted in vessel fuel globally from 3.5 percent to 0.5 percent, except in Sulphur Dioxide emission control areas (SOx ECAs) where ships are required to use fuel with just 0.10 percent Sulphur.

A study commissioned by Regional Marine Pollution Emergency Response Centre for the Mediterranean Sea (REMPEC) showed that the designation of the Mediterranean Sea area, as a SOx ECA (the proposed Med ECA) would lower emissions by 78.7 percent for SOx and 23.7 percent for PM2.5.

In October 2016, the IMO confirmed a global limit for sulphur in fuel oil used on board ships of 0.50 percent m/m (mass by mass) to become effective on 1 January 2020.

“The new rule presents a unique challenge, as majority of ships are expected to choose new types of compliant fuel oils, so-called Very Low Sulphur Fuel Oil (VLSFO), or marine gas/diesel oil. Sufficient availability of such compliant fuels on the global market, which should be compatible with the existing engines, is essential. Therefore, preparation, well before 2020, is the key to success of IMO 2020,” IMO Secretary-General Kitack Lim said while addressing a meeting on the new norms.

Furthermore, it has required shipowners to consider how and when to procure this fuel oil and to prepare their ships to receive, store and use this fuel oil on board.

“This is a significant logistical and technical challenge and indeed IMO has sought to support this process through the development of specific guidelines, including the development of a ship implementation plan,” he said.

This story is from the December 2019 edition of Coal Insights.

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This story is from the December 2019 edition of Coal Insights.

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