[051012.EN.SEA] IMO Ignores Call For Sulphur Fuel Cost Study, But Shipowners Say It's Vital

THE International Chamber of Shipping (ICS), which represents 80 per cent of the world's merchant shipping, has expressed disappointment at the UN's International Maritime Organisation's (IMO) refusal to conduct a study on the availability of eco-friendly low-sulphur fuel and the cost of regulatory compliance.

"It's essential that a global fuel study is carried out in advance of 2020 to give the refiners time to invest and react. The major refinery upgrading required could take a minimum of four or five years. Completing the study in 2018 would be too late," said ICS secretary general Peter Hinchliffe.

"Shipowners are worried about whether fuel will be available to comply with IMO regulations on sulphur emissions, and whether the costs are prohibitively expensive, said the statement from the chamber that represents 80 per cent of the world's merchant tonnage through membership of shipowners associations.

"In some trades this could lead to significant modal shift to shore-based transport, with negative consequences for congestion and the environment. These are issues that were not anticipated when the regulations were agreed," said the ICS statement.

ICS said its proposal had been upheld by some major shipping countries, including China, several open registers and some EU member states, reports American Shipper. However, it said: "A small majority of IMO members states, led by the United States, rejected an ICS submission to the IMO Marine Environment Protection Committee (MEPC), which was debated this week in London. Nevertheless, the IMO vote was very close indeed."

ICS believes the IMO study is more important than ever, "especially as the European Union has already decided it will definitely implement the 0.5 per cent sulphur requirements in 2020, even if the IMO study results suggest, as permitted by MARPOL, that full implementation should be postponed until 2025."

As fuel is currently the largest operations cost for shipowners and its price has increased by about 400 per cent since 2000, Mr Hinchliffe said: "ICS has not given up, and we will bring the issue back to IMO next year."

Source : HKSG.