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US coastal shipping could see ECA exemptions

Exemptions to affect North American vessels with engines lesser than 32,000 horsepower.

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The US Environmental Protection Agency (EPA) is planning to host a workshop on 30 July to discuss the impacts of compliance with the emission control area (ECA) fuel sulphur limits on U.S. coastal shipping industry.

The meeting revolves around Senate Report 114-281 (June 16, 2016) which suggested an ECA exemption for certain vessels due to negative impacts of the ECA.

“The Committee is concerned the mandate for fuel with a sulphur content of 0.1% in the North American Emission Control Area is having a disproportionately negative impact on vessels which have engines that generate less than 32,000 horsepower [and] this impact may cause some shippers to shift from marine based transport to less efficient, higher emitting modes,” says the report.

“To avoid negative environmental consequences and modal shifting, the Committee directs the Agency to consider exempting vessels with engines that generate less than 32,000 horsepower and operate more than 50 miles from the coastline.”

In response, EPA intends to perform a study of the economic impacts of compliance with the North American ECA fuel sulphur limits on coastal shipping.

The study will be based on the approach the Agency used for a similar study carried out in 2012 examining the impacts of the application of the ECA fuel sulphur limits on the Great Lakes shipping industry.

“That study used a combination of geospatial transportation route modelling and cost modelling to examine the impacts of the ECA fuel sulphur requirements for a specific set of transportation routes identified by stakeholders as being at risk for transportation mode shift,” it says.

“Input from coastal transportation industry stakeholders and other industries involved in alternative transportation modes will be essential to identify the transportation routes to be studied: those routes that may be at risk of transportation mode shift as a result of increased operating costs due to the use of ECA fuel.

“Stakeholder input also will be important for essential data, including ship characteristics.”

A notice of the workshop can be found here.

Published: 11 July 2018
 

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Port & Regulatory

IMO: Outcomes of Marine Environment Protection Committee (MEPC 83)

IMO releases a detailed meeting summary of MEPC which met for its 83rd session from 7 to 11 April 2025 including on IMO Net-zero Framework and North-East Atlantic Ocean Emissions Control Area.

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The International Maritime Organization (IMO) on Wednesday (16 April) released a detailed meeting summary of the Marine Environment Protection Committee (MEPC) which met for its 83rd session in person at IMO Headquarters in London from 7 to 11 April 2025. 

The meeting approved the draft legal text for the IMO Net-Zero Framework, which is the first in the world to combine mandatory emissions limits and GHG pricing across an entire industry sector.  The measures include a new fuel standard for ships and a global pricing mechanism for emissions.  

These measures, set to be formally adopted in October 2025 before entry into force in 2027, will become mandatory for large ocean-going ships over 5,000 gross tonnage, which emit 85% of the total CO2 emissions from international shipping.  

MEPC 83 was preceded by the 19th meeting of the Intersessional Working Group on Reduction of Greenhouse Gas Emissions from Ships (ISWG-GHG 19), from 31 March to 1 April and the first meeting of the Intersessional Working Group on Air Pollution and Energy Efficiency (ISWG-APEE 1), from 2 to 4 April.

MEPC 83 highlights:

  • Tackling climate change – Mid-term measures to reduce GHG emissions from international shipping approved
  • Review of the short-term GHG reduction measures – Phase 1 completed
  • Report on the annual carbon intensity and energy efficiency of the fleet
  • Onboard Carbon Capture and Storage (OCCS) and other energy efficiency matters
  • Addressing marine plastic litter – Action Plan approved
  • North-East Atlantic Ocean Emissions Control Area approved and Particularly Sensitive Sea Areas off Peru agreed in principle
  • Review of the Ballast Water Management Convention - ongoing
  • Air pollution prevention – various developments
  • Amendments to NOx Technical Code adopted
  • Pollution prevention and response – actions taken
  • Reports from other Sub-Committees approved
  • New outputs approved - including development of a legally binding instrument on biofouling as well as assessment of the implementation of the Hong Kong Ship Recycling Convention and development of amendments and clarifications as appropriate.

Tackling climate change – Mid-term measures to reduce GHG emissions approved

The Committee finalized and approved the draft legal text for the "IMO Net-Zero Framework", to be included as a new chapter in Annex VI to the International Convention for the Prevention of Pollution from Ships (MARPOL). The draft amendments to MARPOL Annex VI were circulated to Member States immediately after the meeting, with a view to adoption at an extra-ordinary session of MEPC in October 2025. (See Circular Letter: CL No.5005 - Draft Revised MARPOL Annex VI )

The IMO Net-Zero Framework includes a set of "mid-term measures" aimed at reducing greenhouse gas emissions from international shipping, in line with the reduction targets set out in the 2023 IMO GHG Strategy. These measures consist of:

  • a technical element: a goal-based marine fuel standard designed to gradually lower the GHG intensity of marine fuels; 
  • and an economic element: a pricing mechanism for maritime GHG emissions.

Following adoption, the measures are expected to enter into force 16 months later, under the "tacit acceptance" procedure, in accordance with the amendment provisions in MARPOL. (More details: IMO approves net-zero regulations for global shipping)

Food security

The Committee agreed that in the period between the adoption of the IMO Net-Zero Framework and its entry into force, further assessment (qualitative and quantitative, as appropriate) of the potential impacts of an increase in maritime transport costs on food security resulting from the adopted framework should be conducted. The Committee agreed to keep the potential impact on food security under continuous review.

Review of the short-term measure to reduce GHG emissions – Phase 1 completed

The Committee finalized Phase 1 of the review of IMO's short-term GHG reduction measures, which were adopted in 2021 and entered into force in 2022. Key elements of the short-term measures include: Energy Efficiency Existing Ship Index (EEXI), enhanced Ship Energy Efficiency Management Plan (SEEMP), and Carbon Intensity Indicator (CII) rating scheme. The measures aim to improve ship energy efficiency and reduce carbon intensity by at least 40% by 2030 compared to 2008.

The review of the effectiveness of the short-term measures began in July 2023 (MEPC 80). Under Phase 1, the Committee gathered data from Member States about their experience implementing the short-term measures, analyzed this data and identified a list of challenges and/or gaps. At MEPC 83, the Committee took the following actions:

  • Carbon intensity (CII) reduction factors for 2027-2030 – amendments adopted

The Committee adopted amendments to the 2021 Guidelines on the operational carbon intensity reduction factors relative to reference lines (CII reduction factors guidelines, G3). These Guidelines outline the methods for determining the annual operational carbon intensity reduction factors and their values from 2023 to 2030 (indicating how much carbon intensity need to be reduced by ships over this period to meet targets), as referred to in Regulation 28 of MARPOL Annex VI. The amendments include newly defined CII reduction factors for 2027 to 2030.

  • Access to the IMO Data Collection System for ship fuel consumption – amendments approved

The Committee approved draft amendments to Regulation 27 of MARPOL Annex VI to make the IMO's data collection system (IMO DCS) on ship fuel consumption more accessible to the public. The IMO DCS requires ships to record and report their fuel oil consumption, which is then used to calculate ships' operational carbon intensity (CII). The amendments will ensure that all reported data in the IMO DCS are accessible to Parties to Annex VI, in a non-anonymized form. An anonymized database (i.e., identification of a specific ship will not be possible) will be made accessible to public users.

  • Workplan for Phase 2 of the review of short-term GHG reduction measures agreed

The Committee agreed on a work plan for Phase 2 of the review of the short-term GHG reduction measures, to run from Spring 2026 to Spring 2028. Phase 2 will look at enhancing the SEEMP framework, further developing CII metrics, as well as ensuring synergies between the IMO carbon intensity/energy efficiency framework and the IMO Net-Zero Framework.

  • Ship Energy Efficiency Management Plan (SEEMP) framework – amendments adopted

The Committee adopted Amendments to the 2024 Guidelines for the development of a Ship Energy Efficiency Management Plan (SEEMP) (resolution MEPC.395(82)), to allow the possible development of other CII metrics at future MEPC sessions, as envisaged in the work plan for the review of the short-term GHG reduction measures.

Report on the annual carbon intensity and efficiency of the fleet

The Committee noted the report by the IMO Secretariat on the carbon intensity of the international shipping fleet for the year 2023 (both demand- and supply-based), including a summary of carbon intensity developments of the fleet from 2019 to 2023. The report showed reductions in the carbon intensity of shipping ranging from 4.8% to 9.9% (depending on the method of calculation) from 2019 to 2023, and a decrease in total fuel consumption from 213 million tonnes in 2019 to 211 million tonnes in 2023.

The report also indicated that, compared to 2008 levels, the average carbon intensity of shipping in 2023 has fallen by 31.0% (calculated based on supply measurement) and by 36.5% (based on demand measurement). Download the report here.

North-East Atlantic Ocean Emissions Control Area approved and Particularly Sensitive Sea Areas off Peru agreed in principle

The Committee approved a proposal to designate the North-East Atlantic Ocean as an Emissions Control Area for Sulphur oxide emissions (SOX), particulate matter (PM) and nitrogen oxide emissions (NOX). The associated draft amendments to MARPOL Annex VI will be submitted to the extraordinary MEPC session in October 2025, with a view to adoption as part of the revised MARPOL Annex VI.

The Committee agreed in principle to the designation of the "Reserva Nacional Dorsal de Nasca" (Nasca Ridge National Reserve) and the "Reserva Nacional Mar Tropical de Grau" (Grau Tropical Sea National Reserve) as Particularly Sensitive Sea Areas (PSSAs). The Committee invited Peru to further develop the proposed associated protective measures and submit them to MEPC for consideration and approval at MEPC 84.

Note: The full meeting summary of MEPC 83 can be viewed here

Related: IMO MPEC 83 approves net-zero regulations for global shipping

 

Photo credit: International Maritime Organization
Published: 17 April, 2025

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Biofuel

New FOBAS report flags ‘significant concern’ over off-spec bunker fuel issues

Almost 2.5% of tested VLSFO samples, particularly ISO8217 RMG380 grade, recorded sulphur levels between 0.50% mass and 0.53% mass while a further 0.8% of VLSFO samples exceeded 0.53% mass.

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Lloyd’s Register’s Fuel Oil Bunkering Analysis and Advisory Service (FOBAS) on Thursday (27 February) highlighted rising biofuel uptake, ongoing issues with off-specification fuels and the impact of new regulatory measures in its latest report. 

Mirroring trends from the first half of 2024, the FOBAS Fuel Quality Report H2 2024 identified off-specification sulphur content results as a significant concern.  

Almost 2.5% of tested Very Low Sulphur Fuel Oil (VLSFO) samples, particularly ISO8217 RMG380 grade, recorded sulphur levels between 0.50% mass and 0.53% mass. 

“Although these fuels technically comply with MARPOL Annex VI regulations when accounting for test precision allowances, they continue to create uncertainty for ship operators,” it said. 

A further 0.8% of VLSFO samples exceeded 0.53% mass, placing vessels at risk of non-compliance. 

“The data shows some improvement from 2023, but suppliers are urged to aim for stricter adherence to the 0.50% limit to avoid compliance disputes,” it added.

The report also highlighted that total sediment remained a major issue, with 2024 seeing a rise after previous improvements. Asphaltene instability in fuel blends is a common cause, with Houston and Antwerp identified as high-risk areas in this respect.  

Distillate fuels, while generally of higher quality, also presented issues, particularly in cold flow properties and compliance with the SOLAS flash point requirement of minimum 60oC. The number of marine gas oil (MGO) samples with flash points below 60oC increased in 2024, a trend that poses both statutory compliance and safety risks. This can partly be attributed to unintentional or intentional mixing with automotive diesel in some countries which has a lower flash point limit.  

Looking ahead, the report anticipated that the Mediterranean SOx (Sulphur Oxides) Emission Control Area (SECA), may alter bunkering patterns and fuel quality in specific ports. Ships operating in the Mediterranean will need to use fuels with a sulphur content of 0.10% mass or lower, unless using approved SOx abatement technology. This regulatory shift may drive changes in fuel availability and pricing across key Mediterranean ports, requiring careful planning by ship operators.

The latest analysis from FOBAS also highlighted a significant increase in biofuel usage, primarily driven by EU and IMO regulations, including the Mediterranean SECA coming into effect on 1 May 2025. 

Biofuels continue their rise in the marine fuel mix, driven by regulatory incentives and industry decarbonisation commitments. 

The report noted the increasing use of Fatty Acid Methyl Ester (FAME) residual blends (RF grade), particularly in Singapore, Algeciras, and the ARA region. 

“While many vessels have successfully adopted biofuels without reported issues, concerns remain regarding transparency in composition and the potential risk of unknown quality biofuel stocks entering the supply chain,” it said.

 Usman Muhammad, FOBAS Product Manager, said: “Fuel quality continues to be a key operational concern for the maritime industry. While we see some improvements in certain areas, the recurrence of high sediment levels, sulphur compliance issues, and emerging challenges with biofuels underline the need for rigorous fuel testing, reassessment of onboard fuel management and supply chain transparency.”

“As the regulatory landscapes evolve and alternative fuels gain traction, ship operators must remain proactive in assessing fuel quality to ensure compliance and maintain high operational efficiency.”

Note: The latest FOBAS Fuel Quality Report can be found here

 

Photo credit: Hans Reniers on Unsplash
Published: 28 February, 2025

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Alternative Fuels

Argus Media: California aims to expand alternative bunker fuels

State senate bill 298, introduced by state senator Anna Caballero, would require a plan to be developed by 31 December 2030 for use and deployment of alternative marine fuels at California’s public seaports.

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California lawmakers will consider expanding alternative marine fuels use by ocean-going vessels on the state's coast.

12 February 2025

State senate bill 298, introduced by state senator Anna Caballero (D), would require the California State Energy Resources Conservation and Development Commission (Energy Commission), the California Transportation Agency and the state board to develop a plan by 31 December 2030 for the use and deployment of alternative fuels at California's public seaports.

The plan should identify significant alternative fuel infrastructure and equipment trends, needs, and issues and describe how the state will facilitate permitting and construction of infrastructure to support alternative fuels. The plan should also identify locations for alternative fuel infrastructure, provide a reasonable timeline for its installment and estimate the costs, including public or private financing opportunities.

The bill also calls for the Energy Commission to convene a working group consisting of representatives of seaports, marine terminal operators, ocean carriers, waterfront labor, cargo owners, environmental and community advocacy groups, the Transportation Agency, the state board, the Public Utilities Commission, and air quality management and air pollution control districts. The working group will advise the commission.

The US territorial waters, including California's, are designated as emission control areas (ECAs). In the ECAs, the sulphur content of marine fuel burned by ocean-going vessels is capped at 0.1pc. Thus ocean-going vessels within 24 nautical miles of California burn 0.1pc sulphur maximum marine gasoil (MGO). Ocean-going vessels could achieve the equivalent of 0.1pc sulphur marine fuel emissions by installing marine exhaust scrubbers. But California has banned their use. California is the only US state that has banned the outright use of marine scrubbers.

California also requires that ocean-going vessels while at berth in California ports must either use shore power or use alternative technology such as batteries. The regulation came into force for container ships, reefers and cruise ships in 2023. It came into force this January for tankers visiting Los Angeles and Long beach and for roll on roll off vessels. Starting on 1 January 2027, it will apply to all tankers at berth in all California's ports.

US harbor craft vessels (such as barges, commercial fishing vessels, excursion vessels, dredgers, pilot vessels, tugboats and workboats) in California's waters are required to burn renewable diesel (R99 or R100). By comparison, elsewhere in the US, harbor craft vessels are required to burn ultra-low sulphur diesel (ULSD). In January, Los Angeles ULSD averaged at $773/t and R99 at $962/t.

By Stefka Wechsler

 

Photo credit and source: Argus Media
Published: 12 February, 2025

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