$440K in Fines for Carriers Over Fuel Violations

by Ship & Bunker News Team
Tuesday August 13, 2013

Three international shipping companies have been fined a total of $440,250 for failing to switch to distillate fuel in waters off the U.S. West Coast, according to enforcement agency California Air Resources Board (CARB).

CARB issued a $299,500 fine to Norway's Hoeg Autoliners Shipping AS Co. (Hoeg Autoliners) after an investigation found that a company vessel, Hoegh Inchon, used marine fuel that was in violation of state law during 17 visits to California ports between November 2009 and July 2011.

The board fined N.C.N. Corporation Panama $87,750 after its Ikan Bawal failed to switch to distillate fuel on a February 2013 visit, and Twin Phoenix Shipping S.A. of Singapore got a $53,000 fine for the same reason.

"Ships en route to California ports emit thousands of tons of diesel exhaust each year," said CARB Enforcement Chief Jim Ryden.

"Our regulation requiring ocean-going vessels to switch to cleaner fuel within 24 nautical miles of our shoreline protects all California residents, especially those in port communities, from this air pollution."

CARB said the three companies complied with its investigation and agreed to follow regulation in the future.

Compliance rates with CARB's regulation, which was adopted in 2008, is around 95 percent, the board said.

The California regulations differ from the North American Emissions Control Area (ECA) rules that went into force last year, requiring the use of distillate fuel with a sulfur content of 1.0 percent or less for marine gas oil (MGO) or 0.5 percent or less for marine diesel oil (MDO), while the ECA rules allow for the use of fuel oil bunkers with 1.0 percent sulfur or less, according to an ARB notice.