A related development that affects the shipping
industry is the coming into force on 1 January 2015
of the requirement under the International Convention
for the Prevention of Pollution from Ships, 1973, as
modified by the Protocol of 1978 (MARPOL) annex VI (Regulations for the Prevention of Air Pollution from
Ships), specifically under regulation 14, which covers
emissions of sulphur oxides (SOX) and particulate
matter from ships. The ECAs were established under
MARPOL annex VI for SOX and include the Baltic Sea
area, the North Sea area, the North American Atlantic
area, and the United States Caribbean Sea area. Ships
trading in ECAs are required to use fuel oil with a sulphur
content of no more than 0.10 per cent from 1 January
2015. The previous limit was 1.00 per cent (IMO, 2015).
The current limit applied in waters other than ECAs is
3.50 per cent and is set to drop to 0.50 per cent on and
after 1 January 2020; however, the coming into force
of this latter limit is subject to a review to be completed
by 2018 regarding the availability of the required fuel oil
(IMO, 2015). Although ship operators were concerned
about the cost of using more expensive lower sulphur
fuels, the lower oil price environment has helped
offset the price premium, with the cost of cleaner fuel
remaining reasonable given the general lower oil prices
and bunker fuel costs (Barnard, 2015). However, in
anticipation of the potential increase in bunker fuel
costs, some carriers have announced some surcharges
that will be applied if necessary.
A related development that affects the shippingindustry is the coming into force on 1 January 2015of the requirement under the International Conventionfor the Prevention of Pollution from Ships, 1973, asmodified by the Protocol of 1978 (MARPOL) annex VI (Regulations for the Prevention of Air Pollution fromShips), specifically under regulation 14, which coversemissions of sulphur oxides (SOX) and particulatematter from ships. The ECAs were established underMARPOL annex VI for SOX and include the Baltic Seaarea, the North Sea area, the North American Atlanticarea, and the United States Caribbean Sea area. Shipstrading in ECAs are required to use fuel oil with a sulphurcontent of no more than 0.10 per cent from 1 January2015. The previous limit was 1.00 per cent (IMO, 2015).The current limit applied in waters other than ECAs is3.50 per cent and is set to drop to 0.50 per cent on andafter 1 January 2020; however, the coming into forceof this latter limit is subject to a review to be completedby 2018 regarding the availability of the required fuel oil(IMO, 2015). Although ship operators were concernedabout the cost of using more expensive lower sulphurfuels, the lower oil price environment has helpedoffset the price premium, with the cost of cleaner fuelremaining reasonable given the general lower oil pricesand bunker fuel costs (Barnard, 2015). However, inanticipation of the potential increase in bunker fuelcosts, some carriers have announced some surchargesthat will be applied if necessary.
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