The reduction of the MARPOL Annex VI global fuel sulphur cap to 0.5% will come into force on the 1st of January, 2020

It is reminded that the International Maritime Organisation “IMO” (MEPC 70 – October 2016) agreed to “1 January 2020” as the effective date of implementation for ships to comply with global 0.50% m/m sulphur content of fuel oil requirement, and adopted resolution MEPC.280(70) on the effective date of implementation of the fuel oil standard in regulation 14.1.3 of MARPOL Annex VI.

Under the new global limit, ships will have to use fuel oil on board with a sulphur content of no more than 0.50% m/m, against the current limit of 3.50%, which has been in effect since 1 January 2012. The interpretation of “fuel oil used on board” includes use in main and auxiliary engines and boilers. Exemptions are provided for situations involving the safety of the ship or saving life at sea, or if a ship or its equipment is damaged.

There are multiple options for complying with IMO 2020 that enable operators to adhere to the requirements by either selecting the right fuel or deploying sulphur mitigation technologies. The options are as follows:

1. Marine gas oil (low sulphur distillate fuel)
2. Heavy fuel oil
    a) 0.1% ultra low sulphur fuel oil (ULSFO)
    b) 0.5% very low sulphur fuel oil (VLSFO)
3. Exhaust gas cleaning system (scrubber) with high-sulphur fuel oil (HSFO) >0.5% sulphur
4. LNG
5. Alternative fuels, for example, liquefied petroleum gas, methanol, compressed natural gas, biofuel, solar power and fuel cells.

As is seen, although many options are available, it is anticipated that most vessels will choose to use ULSFO or VLSFO by considering the scrubber costs on the one hand and the costs of other fuels on the other. Therefore, it seems obligatory for shipowners to carry out a study on generating the most suitable solutions for their fleet.

In addition to the above, it should not be overlooked that any ship may be faced with administrative investigations and fines as a result of inspections to be made by port state or flag state. While this is the case, it is very important to know the terms and exceptions of the implementation, in order to prevent any administrative sanction or commercial disputes that may arise between Owners and Charterers or any related parties.

We would like to inform yourselves that we are ready to provide legal advice and assistance to our clients within the scope of the new requirement and please click below link to find answers to some of the frequently asked questions about the sulphur limit penned by IMO.

http://www.imo.org/en/MediaCentre/HotTopics/Pages/Sulphur-2020.aspx