‘PH domestic sector may not be ready for IMO regulation on sulphur cap’

THE Filipino Shipowners Association ( FSA) said that the Philippines’ domestic sector may not be ready to comply with the International Maritime Organization’s (IMO) regulations governing sulphur cap beginning Jan. 2020.

FSA Chairman and President Dario Alampay, said the problem on the implementation of the 2020 global sulphur cap is mainly for the domestic ship owners, because oil companies were not ready for the supply of compliant fuel oil.

“I sit with the Marina board. Knowing that oil companies in the Philippines will not be ready to have this compliant- fuel, I told Marina to ask the IMO to give us allowance to comply with it,” he said.

“If we import, there are resources available. That’s what oil companies supplying bunker fuel will do, eventually, if Marina would say they should comply, otherwise it will impose penalties,” he added.

He said ship owners would force oil suppliers to provide compliant -fuel by importing from other countries.

For ship owners with ships in the overseas trade, they can meet the compliant fuel by sourcing it from foreign ports, like in the ports of Singapore, Japan, Korea, China and Taiwan for ships trading in Asian route.

For ships trading worldwide, it is also available in major bunkering ports, so there’s no problem with the supply.

The Philippines has signed the International Convention for the Prevention of Pollution from ships (MARPOL Convention). Annex VI sets progressive stricter regulations in order to control emissions from ships, including sulphur oxides (SOx) and nitrous oxides ( NOx) - which present major risks to both the environment and human health.

Under the new global cap, ships would have to use fuel oil on board with a sulphur content of no more than 0.50 percent mass by mass (m/m), against the current limit of 3.50 percent, which has been in effect since 1 January 2012.

“If for a considerable length of time, Philippines cannot implement it in the domestic shipping, the IMO may cite Philippines as a non-complying nation because the convention covers both ships in the domestic trade and overseas trade,” he said.

Alampay said the fuel oilcompliant is more expensive. “From our experience it’s higher by $ 200 per ton compared with the regular fuel that we are using. In domestic trade, I have heard ship-owners that in terms of price, they estimate the compliant fuel would cost an additional P10 per liter.”

For overseas vessel, if you’re carrying a non-compliant fuel, the port authority has the power to hold your ship and impose a fine. If a ship cannot depart in the said port, that would be a big financial loss for the ship.

For domestic, it would depend, on what the government through Marina would impose on ships not using compliant fuel.

Other nations have already given incentives to ship owners of green ships to lessen the emission of harmful gasses that led to global warming.

“In Europe, if a ship is recognized as green ship, your port dues are lower. To make a ship a green ship, the owner has to make bigger investment,” he said.

According to Marina, there were 110 Philippine registered ships in the overseas trade. FSA has 28 members that operate a handful of international ships. FSA has 30 to 40 ships, which are basically bulk carriers. NonNSA members have tankers carrying crude oil.