In an article published on Alkagesta Market Insights, Darren Lee Axisa, Malta Country Manager of Alkagesta, on Monday (20 July) discussed the key trends influencing Malta’s bunkering market and the factors that will determine Malta’s long-term competitiveness as a regional bunkering hub: 

Malta’s bunkering and energy market is moving through a period of structural adjustment. The disruptions that defined the first half of 2026 have accelerated shifts in product demand, terminal strategy, and the competitive dynamics of one of the Mediterranean’s most strategically positioned bunkering hubs. For Alkagesta, whose storage footprint on the island approaches 300,000 cubic metres, the period has tested operational flexibility while reinforcing the value of diversified infrastructure access.

A Market Shifting in Two Directions

Malta’s broader economy has remained resilient — GDP growth reached 3.9% in Q1 2026 — but the bunkering market has undergone a significant product mix shift, the roots of which predate the current geopolitical disruption.

The Mediterranean Emission Control Area, which came into force on 1 May 2025, triggered an immediate and measurable realignment in fuel demand across the region. VPS data covering the first six months post-ECA implementation shows that across the top ten Mediterranean bunkering ports, VLSFO volumes fell 23%, MGO more than doubled, ULSFO quadrupled, and biofuels increased fivefold. In Valletta specifically, the shift was even more pronounced: VLSFO dropped 57% from 111,641 mt to 47,732 mt, while MGO volumes more than tripled from 33,299 mt to 103,445 mt, and ULSFO rose from 2,821 mt to 34,535 mt over the same period.

This structural rotation has been further accelerated by the broader regulatory environment. FuelEU Maritime and EU ETS requirements are pushing shipowners toward cleaner, verifiable fuel options at every port call — a direction Alkagesta had already positioned itself ahead of, having been among the first movers in the Mediterranean to support the transition to 0.1% sulphur fuel oil following the ECA’s introduction.

Layered on top of this regulatory shift has been a period of reduced terminal capacity affecting bunkering market availability across the island. Fuel oil volumes dropped roughly 35% year-on-year between January and May 2026, falling from approximately 382,000 mt in 2025 to 247,000 mt. DMA demand moved sharply in the opposite direction, rising from around 150,000 mt in January to April 2025 to 247,000 mt over the same period in 2026 — a trend consistent with both the ECA-driven product mix shift and the disruption to heavier fuel availability during the constrained period.

Note: The full article can be read here. 

Photo credit: Alkagesta
Published: 22 July, 2026

Jordan Hatch, Loss Prevention Executive of global marine insurer NorthStandard, on Thursday (2 July) issued guidance for vessels operating in Emission Control Areas (ECAs):

The IMO addresses air pollution through MARPOL Annex VI, regulating the emissions of sulphur oxides (SOx), nitrogen oxides (NOx), and particulate matter from ships.

NOx requirements set limits on emissions from marine diesel engines through certification and tiered standards, whilst SOx regulations limit the sulphur content of fuel used onboard ships.

On 1 January 2020, the global sulphur limit for marine fuel was reduced from 3.50% to 0.50% by mass (m/m). However, some areas, known as SOx Emission Control Areas (ECAs), enforce stricter limits of 0.10% sulphur content. There are also dedicated NOx ECAs which impose tighter NOx emission standards for marine engines, particularly on newer vessels.

To meet the stricter SOx limits, ships must ensure they are burning compliant 0.10% sulphur fuel before entering an ECA. If a vessel is changing over from a 0.50% sulphur fuel, this requires a ship-specific calculation based on system volume, sulphur content, and current consumption to determine changeover time. Fuel changeover details, including quantities, date, time, and position, must be logged. Switching back to higher sulphur fuel should only begin after exiting the ECA.

To meet NOx requirements, vessels must demonstrate that their marine engines are certified to the applicable emission tier, and that they continue to operate within those limits through proper maintenance of combustion-related components.

Local Requirements

Some countries apply stricter local requirements in addition to MARPOL Annex VI. For example, Türkiye and Iceland have introduced a 0.10% sulphur limit in their territorial waters, while China has established its own dedicated ECAs.  

Members should check all applicable local requirements before entry and ensure that compliant fuel is available onboard, with sufficient time allowed for fuel changeover.

Scrubber Use

MARPOL allows for equivalent measures in the SOx regulations which means vessels can use exhaust gas cleaning systems (scrubbers) to meet both the global and ECA sulphur caps. Scrubbers remove sulphur from exhaust gases, with wash water as a byproduct, allowing the use of higher-sulphur fuels when operated and maintained according to IMO guidelines in MEPC.340(77).

Scrubbers are available as open-loop (discharging wash water directly into the sea), closed-loop (treating and recirculating the wash water) or hybrid systems. Local regulations vary by country, so members should consult specific guidelines on open or closed-loop usage; our resource here can be used as a guide.

New ECAs

The coverage of ECAs continues to expand, with MEPC 84 adopting the largest ECA to date in the North-East Atlantic.

Mediterranean Sea ECA

Entering into force on 1 May 2025, the Mediterranean Sea is now designated as an ECA, with the 0.10% sulphur limit in effect. Further details can be found here.

The Canadian Arctic and the Norwegian Sea ECA

The amendments to MARPOL Annex VI that designated the Canadian Arctic and the Norwegian Sea as new ECAs entered in to force on 1 March 2026. Both the Canadian Arctic and the Norwegian Sea ECAs for SOx will take effect on 1 March 2027, one year after these amendments came into force.

North-East Atlantic Ocean ECA

At MEPC 84 in 2026, the IMO adopted the North-East Atlantic Ocean as a new Emission Control Area, now the largest ECA designated to date.

This ECA covers a wide area including the waters of Greenland, Iceland, the Faroe Islands, and the western coasts of the United Kingdom and Ireland, extending south to Spain and Portugal, and effectively linking existing ECAs across Europe with the Canadian Arctic region.

The amendments enter into force on 1 September 2027, with SOx limits of 0.10% applying from 1 September 2028. NOx requirements will apply to new ships constructed on or after 1 January 2027 when operating within the area.

With most European and North American waters now designated as ECAs, ship operators should ensure that fuel procurement, changeover procedures, and crew awareness remain aligned with evolving MARPOL requirements when trading in these regions.

A useful infographic and further guidance on ECAs can be found here.

Photo credit: Venti Views on Unsplash
Published: 7 July, 2026

Lloyd’s Register Fuel Oil Bunkering Analysis and Advisory Service (FOBAS) on Wednesday (24 June) published a bulletin to provide ship operators with an updated reminder of marine fuel oil sulphur regulations under various regulatory frameworks: 

MARPOL Annex VI

Ships operating inside or outside Emission Control Areas (ECA) for Sulphur Oxides (SOx) i.e., ECA-SOx, are

required to comply with specific sulphur limits in respect of the fuel oils as used unless the particular

combustion systems (engine, boiler, other) in use have in operation an approved exhaust gas cleaning system as per MARPOL Annex VI regulation 4. These fuel oil limits are as follows;

• Inside ECA-SOx: Max sulphur content of 0.10% m/m
• Outside ECA-SOx: Max sulphur content of 0.50% m/m

MARPOL Annex VI regulation 14.3 currently gives the following as ECA-SOx together with the respective geographic limits:

• Baltic Sea;
• North Sea;
• North American (which includes an area around the Hawaiian Islands);
• US Caribbean Sea;
• Mediterranean Sea;
• Canadian Arctic; and
• Norwegian Sea

Additionally, MEPC 84 adopted the North-East Atlantic as an ECA-SOx which will come into effect from 1 September 2028.

European initiatives

For EU, UK, and Turkish ports situated outside ECA-SOx, ships must switchover to a fuel with a maximum sulphur content of 0.10% m/m when at berth. Similarly, Norway and Iceland have also 0.10% m/m requirements for ships at berth and operating in Fjords (territorial / internal waters).

Other initiatives

Due to increasing concerns around the environmental impact from shipping on local air quality, there are a number of national and local regulations which require the use of low sulphur fuel oils, typically maximum sulphur content 0.10% m/m, or other measures by all or certain ships within defined areas. Examples of these are China, California (CARB), South Korea and Sydney. Furthermore, there can be other related restrictions, for example, on the discharges to sea from exhaust gas cleaning systems.

However, whereas with the MARPOL Annex VI ECA-SOx, there is a single point of reference as to which areas are covered, there is no such central registry for these regional, national or local initiatives taken outside MARPOL Annex VI. Consequently, in all the cases, it is important for ships to check with the relevant authorities beforehand in order to confirm the current status as regards SOx and related emission requirements in order to avoid any penalties – which can be substantial.

Photo credit: Louis Reed from Unsplash
Published: 25 June, 2026