Business

IBIA: ‘Dark fleet’ STS transfers discussed at IMO

Shipping organisations pointed out at MEPC 80 that while there should be no furtive STS operations, distinctions need to be made between legitimate and illicit STS operations.

Published

1 year ago

July 17, 2023

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The International Bunker Industry Association (IBIA) on Thursday (13 July) released an article on concerns raised at IMO meetings including MEPC 80 regarding the increase in ship-to-ship (STS) transfers at sea:

Multiple concerns have been raised at IMO meetings regarding an increase in ship-to-ship (STS) transfers at sea, in particular instances of ships using “dark operations” to hide their whereabouts. The subject was discussed at the IMO’s Legal Committee (LEG 110) in March, and again at the 80th session of the Marine Environment Protection Committee (MEPC 80) in July.

The risks highlighted include that such practices may be used to circumvent sanctions and high insurance costs. From an environmental perspective, if there is a spill, there will be no pollution prevention and the responsible parties may evade liability under relevant liability and compensation regimes. LEG 110 was informed that a fleet of between 300 and 600 tankers, primarily comprised of older ships with poor maintenance, unclear ownership and a severe lack of insurance, was currently operated as a ‘dark fleet’ or ‘shadow fleet’ to circumvent sanctions and high insurance costs.

A document submitted to MEPC 80, MEPC 80/16/4, raised awareness of these issues and proposed a draft Assembly resolution urging Member States and all relevant stakeholders to promote actions to prevent illicit operations of “dark shipping” in the maritime sector.

There was a long discussion on the subject at MEPC 80, during which shipping organisations pointed out that while there should be no furtive STS operations, distinctions need to be made between legitimate and illicit STS operations. As such, care should be taken about the term “going dark” and “dark fleet” as there can be legitimate operational reasons for AIS not working properly, or being switched off due to security concerns. AIS signals have been used by pirates to target tankers.

Following discussion, MEPC 80 agreed to forward the draft Assembly resolution set out MEPC 80/16/4 to the thirty-third session of the Assembly (A 33), together with the comments and views expressed, for further consideration with a view to finalisation and adoption. A 33 meets in late November 2023.

Member States or international organisations that have further comments or proposals in connection to this matter can submit documents to A 33 accordingly.

Photo credit: International Bunker Industry Association
Published: 17 July, 2023

Related Topics:Legal - Crime Legal - Sanctions

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Argus Media organises free admission ‘Argus Asia B24 Forum’ for bunkering sector

Ahead of Argus Asia B24 Forum, Manifold Times interviewed Mahua Chakravarty, Head of Marine Fuels Pricing (Asia) of independent global energy and commodity market intelligence provider Argus Media; she explains the growing prominence of B24 bunker fuel in the marine sector and believes it is imperative for the bunkering sector to deepen its knowledge on it:

MT: Why is it important for the bunkering sector to know more about the B24 bunker fuel market?

B24 has emerged as the first alternative marine fuel that allows ship-owners and charterers a drop-in fuel option, and make greenhouse gas (GHG) savings, for their voyages into EU and territorial waters.

It has proved to be the most practical solution for ship-owners that eliminates costly retrofitting charges. The easy availability of used cooking oil methyl ester (UCOME) as a blendstock from China and southeast Asia, also adds to its overall attractiveness as an alternative fuel.

B24 consumption in the port of Singapore recorded multi-fold jumps to touch 518,000t in 2023 as ship-owners fuelled for trials in preparation for the implementation of EU-led mandates like the EU Emissions Trading Scheme (ETS) and the Carbon Intensity Index (CII) rating. In 2024, B24 demand has continued to grow with 377,800t of consumption seen up to August, according to statistics from the Maritime and Port Authority of Singapore (MPA).

As we advance into 2025, the need to understand how B24 matures in terms of market fundamentals, pricing and dynamics will be a key indicator for the marine sector. Being the first generation of new marine fuels, B24 has shown the way that biofuel blends can provide a solution for ship-owners/charterers to meet compliance mandates set by the EU and IMO.

MT: Why has Argus developed its own B24 Singapore price index? What's so special about it and why should the industry adopt it as a benchmark?

Argus was the first to launch its spot B24 delivered on board (DOB) Singapore assessment in January 2023, thus introducing price discovery for this market at its point of inception. The past 1.5 years of daily price assessments of B24, using a robust market survey approach, has built Argus’ understanding of this market from the start.

We have seen the growth of liquidity and the quest among refiners, traders, ship-owners to find pricing solutions for a nascent market. We have been at the forefront of capturing spot liquidity growth and in assessing prices for this market.

This index is now considered a key price assessment by key refiners, traders, ship-owners and other stakeholders in the market.

MT: What takeaways can each segment of the bunkering sector such as bunker buyers, bunker traders, and shipowners receive from the upcoming Argus B24 forum?

The Argus B24 Asia Forum is aimed at showcasing some of these learnings by a global team that covers key markets like Singapore, China and Europe. Our global team will present their insights on the key trends driving demand for marine biodiesel globally.

As the marine sector marches onwards with the bunkering of higher biofuel blends, this forum will allow the audience to reflect on the key factors that have driven the marine biodiesel sector. It will provide insights to make better decisions about infrastructure, pricing, feedstock-related issues and what blends are likely to be prevalent in the coming year.

We will be hosting a panel discussion at this forum that will include key players driving the marine biodiesel space in Singapore and other regions.

The Argus Asia B24 Forum will be held in The Village Hotel (The Events Centre by Far East Hospitality), Sentosa, Singapore (Google Maps) on 8 October between 4.00pm to 7.00pm Singapore Time.

Participants are encouraged to register for the free event via the custom link here.

Photo credit: Argus Media
Published: 4 October 2024

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Brazil: Raízen launches new bunkering operation in Itaqui

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Brazil: Raízen launches new bunkering operation in Itaqui

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“The new bunkering operation will support both coastal and oceangoing vessels with different sizes and class at the Off Port Limits, allowing our customers to avoid full port call fees and unnecessary deviations at different bunkering ports,” she said in a social media post.

In September last year, Bunker Holding subsidiary Bunker One announced that it partnered with Acelen, the largest bunker producer in the Brazilian state of Bahia, to offer the only outer anchorage bunkering operation in Brazil at the time.

Starting September 2023, vessels such as large cargo ships and tankers can be supplied in the anchorage area of the Port of Itaqui in São Marcos Bay (MA).

Photo credit: Raízen
Published: 4 October, 2024

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Rahim Oberholtzer named as new Infineum Chief Financial and Strategy Officer

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Rahim Oberholtzer named as new Infineum Chief Financial and Strategy Officer

International fuel additives company Infineum on Thursday (3 October) announced the appointment of Mr. Rahim Oberholtzer as the new Chief Financial and Strategy Officer, effective 1 October.

Oberholtzer will succeed Mr. Philippe Creteur, who has retired at the end of September 2024, after 18 years of dedicated service to Infineum.

Oberholtzer, a seasoned finance executive with over 25 years of diverse experience, joins Infineum from Shell, where he has held various senior positions. His most recent role was Senior Vice President of Shell Finance for Chemicals and Products.

During his career, Oberholtzer has acquired extensive expertise in public accounting, investment banking, and trading. He began his professional journey at KPMG in San Francisco as an auditor. He then moved on to Merrill Lynch, focusing on mergers and acquisitions and equity offerings within the energy sector, ultimately serving as Head of Structured Finance at Merrill Lynch Commodities.

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Infineum CEO Aldo Govi, said: “We are deeply grateful for Philippe’s years of dedication and excellent contribution to Infineum. At the same time, I am thrilled to welcome Rahim to our corporate leadership team.”

Photo credit: Infineum
Published: 4 October, 2024