Skuld Warns on MGO, HFO Fuel Switchover Procedures for 2015 ECA Compliance

California, which has had 0.10 percent regulations since the beginning of 2014, has had problems with ships losing propulsion power.

Switching from heavy fuel oil (HFO) to lower sulfur content marine gas oil (MGO) to comply with Emission Control Areas (ECA) may cause losses in propulsion power for some ships if not done carefully, warned marine insurance provider Skuld. 

Beginning in 2015, all sulfur content in marine fuels used in ECAs will be limited to 0.10 percent by weight, but those same restrictions have already been in place off the coast of California since the beginning of 2014, and the state has been managing sulfur content in marine fuel since 2009.

In California waters, there have been 121 incidents of ships suddenly losing power since 2009, with the first half of 2014 seeing nine confirmed related cases and another 19 that are only suspected to be related to the fuel switchover, according to a report by Christian Ott, vice president head of claims at Skuld.

"When comparing to overall traffic levels, this may seem like a small figure, for each affected vessel it was a significant issue," said Ott.

"Indeed the Association is aware of serious incidents following leading to significant liabilities."

The cause of the incidents is reportedly due to the differences in temperature between hot HFO and cooler MGO, which sent ship engines into "thermal shock." 

Ott also speculated that the lower viscosity of MGO may have led to more engine wear and tear. 

"A loss of power is a serious event for a vessel in any circumstance, but should this occur when experiencing heavy weather, restricted navigation and/or other vessel traffic then it can quickly develop in to a serious emergency," he said. 

Skuld said that heading into widespread implementation of ECAs in 2015, engine room teams would have to be "more than familiar" with the switchover process in order to ensure that using MGO presented no safety hazards. 

It is predicted that a vast majority of shippers will convert to MGO for ECA compliance, which in the short term is cheaper than alternatives such as liquefied natural gas (LNG) or scrubbers.