Asia/Pacific News
Few Changes Seen in Shanghai Market Ahead of April 1 ECA Implementation, Say Bunker Traders
Bunker traders in Shanghai say that they have seen little changes within the local bunker market ahead of new Emissions Control Area (ECA) regulations set to come into force on April 1, 2016 at China's Yangtze River Delta core ports , Platts reports.
As Ship & Bunker has previously reported, China's Ministry of Transport announced that the new rules requiring fuel with a maximum 0.5 percent sulfur content to be used when at-berth in Yangtze River Delta core ports beginning April, including Shanghai, Zhoushan, Ningbo, Suzhou, Zhanjiagang, and Nantong.
"We've talked to shipowners about it and they are aware of it," a Shanghai-based trader is reported to have said.
"There is ample time to prepare ahead of the April 1 implementation, so there's no big issue."
Many traders are said to believe that it is unlikely that other ports in the Pearl River Delta and Bohai Rim ECAs would follow suit by the core ports' April 1 implementation date.
"This will be a sort of experiment, particularly in the case of Shanghai, which they will watch closely," said another trader.
"They will probably trial it for three months or so to see what reaction there will be and then gradually roll it out to other areas."
As Ship & Bunker reported last week, the China Maritime Safety Administration (MSA) issued a guidance notice to local MSA offices on supervision and administration of China's new ECAs, detailing the requirements for ships calling ports within zones and consequences of non-compliance.
"I believe they will be strict about enforcing these regulations," said one trader, adding "Because this is the first time that they are doing this, they probably don't have much experience, so they won't go too hard on the vessels that run foul of the regulations... but I think they will progressively tighten and have loopholes plugged as time goes on."
In early February, Ship & Bunker reported that new ECA rules at core Yangtze River Delta ports are expected to reduce fine particulate matter (PM2.5) emissions by 10 percent and sulfur oxide (SOx) emissions by 18 percent in the region during implementation of the regulations' first phase.
