Connect with us

Alternative Fuels

IBIA Convention 2020: Session summary of the APAC – Legal, Compliance and Regulations Panel

Representatives of INTERTANKO, Helmsman and Rajah & Tann gather to discuss IMO 2020, legal frameworks for the purchase and supply of alternative marine fuels, and the handling of bunker claims.
Admin

Published

5 years ago

on

APAC Legal Compliance and Regulations Panel final

Discussions at the Asia-Pacific edition of the Legal, Compliance and Regulations Panel took place on the second day of the International Bunker Industry Association (IBIA) Convention on Wednesday (11 November, 2020).

Representatives from INTERTANKO, Helmsman and Rajah & Tann spoke about the implementation of IMO 2020, legal frameworks for the purchase and physical supply of new and alternative marine fuels, and the handling of bunker claims in a session moderated by Singapore bunker publication Manifold Times.

INTERTANKO – IMO 2020 implementation and regulation of bunker suppliers

Elfian Harun, the Environment Manager and Assistant Regional Manager for Asia-Pacific at the International Association of Independent Tanker Owners (INTERTANKO), believes the implementation of IMO 2020 was not without problem, but the industry seems to have sorted out the issues based on the declining number of issues being reported.

“This is no thanks to the tremendous amount of work put in by the shipping industry, oil producers, International Maritime Organization (IMO), Member States and fuel standard setting organisations, not forgetting that the IMO 2020 regulation was first passed in 2008 by the IMO,” he said.

“Overall, at INTERTANKO we think more could be done in terms of regulating the bunker suppliers.”

Harun notes the MARPOL regulations seems to unfairly target ships, and believes this treatment to be unfair as bunker fuel related issues often stem from the supply side; this can be solved if bunker suppliers were regulated.

“INTERTANKO has been campaigning for the regulation of bunker suppliers,” he adds.

“In a simple analogy, if you stop suppliers from offering bad fuel into the market you won’t have any issues on the ship.

“Using the Houston contamination case as an example, if we knew the source of the cargo we could have prevented contaminated fuel from reaching Singapore. We feel this is something which a licensing regime could help.”

Helmsman – Bunker procurement contracts and ‘unfair’ treatment of shipowners

Maureen Poh, Director of international law firm Helmsman, shared shipping companies are increasing seeking advice from external lawyers to update their current bunker supply contracts.

“Bunker procurement contracts shouldn’t be created with just input from the commercial guys; advise should also be sorted from the technical personnel and legal teams as well,” recommends Poh.

“This year, I’ve actually advised on quite a number of bunker procurement contracts for owners and charterers.

“Now, we are observing bunker contracts adjusting to include greater timelines for quality disputes; bunker contamination due to the Houston problem; and maritime liens as a result of the OW Bunker debacle.”

Poh echoed INTERTANKO’s view of the parity between shipowner and bunker suppliers, where shipowners are being blamed for non-compliance of IMO 2020 related marine fuel regulations.

“It really seems that owners are bearing the brunt of all these regulations regarding low sulphur fuel and that is something quite unfortunate because I think shipping is really a cooperation between owners and charterers,” she says.

“And I guess it really depends on the bargaining power between both parties. We have seen many contracts where owners tried to allocate some of the risk regarding bunkers to charterers; but that doesn’t always work when you have well-balanced counterparties involved.

“Earlier in October, a number of big global traders came together to make a commitment towards lowering greenhouse gases emissions by implementing a transparent reporting system.

“So, I think that’s a way of making parties in the shipping chain more involved and more responsible. Regarding, greenhouse gas emissions, we surely cannot put most of the blame on owners, because that’s pretty unfair, my opinion. It needs collaborative efforts between owners, traders, bunker suppliers and regulators.”

Rajah & Tann – TSP & flashpoint cases, and the settlement of bunker claims

Max Lim, Partner at law firm Rajah & Tann Singapore, said he has encountered several bunker claims regarding total sediment potential (TSP) and flashpoints this year.

“However, thankfully, in my experience, many of these cases have actually reached settlement at a very early stage. I believe that the onset of the Covid-19 pandemic has greatly reduce any impetus or desire for long legal fights, be in arbitration or in the courts,” shared Lim.

“What has proven to be very instrumental in the outcome of these cases, is evidence.

“For shipowners, it is highly essential that evidence and samples are retained, and proper records are kept. Apart from seeking legal advice early in the game, shipowners will also benefit from retaining technical experts from the get go.

“So at the end of the day, really, this is all about having all your ducks in a row and being ready.”

Lim noted the Covid-19 pandemic has reduced the demand for air travel and this has resulted in jet fuel becoming a fairly popular blending component in the production of low sulphur bunker fuel for the marine industry.

The development has caused more off-spec claims due to lower flashpoint generated; the higher flammability of marine fuel may lead to a very serious safety risk for ships, he says.

Lastly, Lim noted mediation – a fairly popular and effective mechanism of dispute settlement between businesses – has not been as widely accepted by the bunkering industry as one would expect.

“Based on my personal experience as far as bunker claims go, be it for contamination or others, mediation somehow is not so common,” he notes.

“My personal take is this: For bunker players, given the network of relationships between the traders, they perhaps find it easier to resolve matters amongst themselves without having to resort to a neutral third party.

“So, if I may just summarise. Really, I think that at the end of the day the lesson learnt is all things in life is about finding the right mix and blending in.”

 

Photo credit: International Bunker Industry Association
Published: 16 November, 2020

Related Topics:
Continue Reading

Methanol

China: Stolthaven collaborates with ITOCHU Corporation for green methanol bunkering and export ops

Partnership will focus on development of a methanol bunkering system and enhancing methanol export capabilities.
Admin

Published

3 days ago

on

June 13, 2025

By

Stolthaven logo MT

Stolthaven Terminals, through its joint venture Tianjin Stolthaven Lingang Terminal (Stolthaven Lingang), on Thursday (12 June) said it has signed a Memorandum of Understanding (MoU) with Itochu Corporation to collaborate on storage and logistics solutions for green methanol.

This strategic partnership will focus on supporting the growing demand for low-carbon fuels through the development of a methanol bunkering system and enhancing methanol export capabilities.

Stolthaven Lingang has world-class terminal infrastructure and a strategic location in the Tianjin Lingang Industrial Zone in China. Through this MoU with Itochu, Stolthaven Lingang will seek to strengthen the supply chain infrastructure needed for alternative fuels.

Methanol is emerging as a viable marine fuel due to its lower carbon intensity and existing ease of handling, and the development of methanol bunkering services is expected to serve the increasing demand from the shipping sector.

Selenna Xu, general manager, Tianjin Stolthaven Lingang Terminal says: “This strategic partnership represents a pivotal step in building a green energy storage and transportation ecosystem in Northern China. By combining our terminal network and service innovation with Itochu’s global expertise, we aim to drive forward the development of a green energy hub for the region, with export capabilities beyond China.”

Satoshi Tojo, general manager at Itochu Corporation comments: “Itochu Corporation is committed to advancing the green methanol value chain through strategic partnerships and innovation. By leveraging our extensive global network and expertise in the energy and chemicals sectors, we are well-positioned to significantly contribute to the transition towards cleaner fuels.”

 

Photo credit: Stolthaven Terminals
Published: 13 June 2025

Continue Reading

Biofuel

LR: “Whitchampion” becomes first bunker tanker certified to load, carry and blend FAME B100 onboard

Second Whitaker tanker, Whitchallenger, will be undergoing a similar approval process and is expected to be certified later this year.
Admin

Published

3 days ago

on

June 13, 2025

By

Whttaker Whitchampion MT

Classification society Lloyd’s Register (LR) on Thursday (12 June) claim UK-based bunker operator John H. Whitaker (Tankers) Limited’s bunker tanker Whitchampion has become the first in the industry to load, carry and blend Fatty Acid Methyl Esters (FAME B100) onboard under IBC Code and MARPOL Annex II regulations.

The development occurred after LR issued a chemical certification to allow Whitchampion to perform onboard blending of biofuels with petroleum distillates and residual fuel oils. The operation is authorised within UK coastal waters under a Tri-Partite Agreement between the Isle of Man Flag and the UK Maritime and Coastguard Agency (UKMCA).

A second Whitaker tanker, Whitchallenger, will be undergoing a similar approval process and is expected to be certified later this year.

At present, bunker tankers certified under MARPOL Annex I are limited to carrying blends no more than 30% FAME under IMO regulations. Oil Fuels with higher bio-content fall under International Bulk Chemical Code (IBC Code) and MARPOL Annex II, typically requiring full chemical tanker status. That regulation has, in effect, frozen out a significant portion of the conventional bunker tanker fleet from supporting mid-to-high-range biofuel blending.

Whitaker’s Whitchampion is the first LR-classed vessel to bridge that gap. Through comprehensive Gap Analysis and Risk Assessment against the IBC Code and MARPOL Annex II requirements, LR developed an approach which involved mitigation of the assessed risks. This led to obtaining waivers/exemptions from the Flag Administration allowing this Annex I bunker tanker to gain chemical certification to carry FAME as cargo, without needing to convert to full chemical tanker status.

The successful delivery of dedicated onboard training on the safe handling of FAME has also led to UKMCA approval and a FAME Restricted endorsement to the existing Oil Tanker Dangerous Cargo Endorsement (DCE) for the crew.

Tim Wilson, Principal Specialist Fuels and Emissions, LR, said: “This certification demonstrates a credible and commercially viable route for existing bunker tankers to participate in the energy transition. It sets a clear blueprint for others to follow, enabling owners to consider the possibility of adapting existing bunker tankers for sustainable fuel delivery without resorting to prohibitively expensive conversions or replacement with a chemical tanker.”

Peter Howard, Technical Director at Whitaker Tankers, added: “This certification is the result of focused determination from all involved and underlines Whitaker’s commitment to providing clients with the flexibility they need to meet their decarbonisation goals. We’re proud to lead the way in this space with Whitchampion and look forward to progressing a similar certification with LR for her sister ship Whitchallenger later this year.”

 

Photo credit: Lloyd’s Register
Published: 13 June 2025

Continue Reading

Alternative Fuels

China’s SDARI receives AiPs for alternative-fuelled ships including ammonia bunker vessel

CSSC’s SDARI obtained Approval in Principle (AiP) certificates from classification societies ABS, RINA and LR for four vessel designs including a 50,000 cubic metre ammonia bunkering vessel.

Admin

Published

4 days ago

on

June 12, 2025

By

China’s SDARI receives AiPs for alternative-fuelled ships including ammonia bunker vessel

China State Shipbuilding Corporation’s (CSSC) Shanghai Merchant Ship Design and Research Institute (SDARI) recently obtained Approval in Principle (AiP) certificates from several classification societies for four vessel designs. 

Among the four is a 50,000 cubic metre (m3) ammonia bunkering vessel, which received AiP certificate from American Bureau of Shipping (ABS). 

It integrates liquid ammonia transportation and bunkering functions and can meet the long-distance transportation needs of liquefied gas goods such as liquefied petroleum gas (LPG) and liquid ammonia. 

The ship is equipped with three IMO Type A independent liquid cargo tanks, and uses zero-carbon ammonia fuel to drive the main engine and generator, meeting the IMO greenhouse gas emission reduction strategy and actively responding to the latest greenhouse gas intensity (GFI) requirements of the 83rd meeting of the IMO Marine Environment Protection Committee (MEPC 83). 

The entire ship is equipped with two independent 1,000 m3 deck liquid ammonia storage tanks, taking into account the ammonia fuel endurance requirements under multi-cargo loading and unloading, significantly improving operational economy and flexibility. 

In response to the needs of bunkering operations, it is specially equipped with a retractable bow thruster, side thruster and adjustable propellers to meet ABS’ DPS-1 notation and adapt to the complex port environment of bunkering operations. 

China’s SDARI receives AiPs for alternative-fuelled ships including ammonia bunker vessel

Meanwhile, a dual-fuel LNG/hydrogen-powered Ultramax bulker design and a 30,000 GT Roll-On/Roll-Off Passenger (ROPAX) ship designed to sail in the Mediterranean Sea received AiP certificates from RINA. 

SDARI also received AiP from Lloyd’s Register (LR) for a 113,000 dwt ammonia dual-fuel liquid cargo ship. The optimised propulsion system, specially configured with an ammonia dual-fuel power system and a wind-assisted propulsion system, is expected to save more than 10% energy, especially at low speeds. 

 

Photo credit: Shanghai Merchant Ship Design and Research Institute
Published: 12 June, 2025

Continue Reading

Trending