Lisa Jenkins, Claims Executive and Maria Mourtzanou, Claims Assistant of The Standard Club on Friday (21 February) published a news update regarding a draft proposal issued by the China Shipowners’ Association (CSOA) to Beijing for requesting a temporary reprieve from IMO Rules:
As a result of the ongoing financial and logistical difficulties arising from coronavirus, Chinese shipping entities have raised concerns of their ability to comply with the more stringent IMO Sulphur Rules introduced in January 2020.
China Shipowners’ Association (CSOA), a group of more than 200 member companies, have issued a draft proposal to Beijing requesting a temporary reprieve from the IMO Rules, which require the use of fuels with a sulphur content of no more than 0.5%. Such submission is in anticipation of a potential shortage of low-sulphur fuel oil provisions in China, alongside ongoing financial concerns as coronavirus’ impact on the economy continues to deepen. Any suspension is likely to be part of a series of other measures, including tax cuts, which are being recommended by the Association to ease the financial pressure of coronavirus on the shipping industry.
Despite such application, there are concerns within the wider industry that any suspension of the sulphur cap could cause long term difficulties in respect of China’s reputation and status as a key country in the LSFO supply chain.
It is not clear whether the suspension, if granted, would apply to non-Chinese entities. As previously raised, members should continue to check with local agents and club correspondents for the latest information.
The top three positive movers in the 2020 bunker supplier list are Hong Lam Fuels Pte Ltd (+13); Chevron Singapore Pte Ltd (+12); and SK Energy International (+8), according to MPA list.
‘We will operate in the Singapore bunkering market from the Tokyo, with support from local staff at Sumitomo Corporation Singapore,’ source tells Manifold Times.
Changes include abolishing advance declaration of bunkers as dangerous cargo, reducing pilotage fees on vessels receiving bunkers, and a ‘whitelist’ system for bunker tankers.
Claim relates to deliveries of MGO to the vessels Pacific Diligence, Pacific Valkyrie, Pacific Defiance, Crest Alpha 1, and Pacific Warlock between March 2020 to April 2020.
3,490 mt of LSFO from Itochu Enex was lifted at Universal Terminal; the same bunker stem was bought by Global Marine Logistics and delivered by bunker tanker Juma to receiving vessel Kirana Nawa.
Representatives of Veritas Petroleum Services, Maersk, INTERTANKO, ElbOil Singapore, and SDE International provide insight from their respective fields of expertise on what lies ahead.