ICS Calls for Caution on Environmental Rules

Morooka said operational efficiency indexing could lead to market distortions

The International Chamber of Shipping (ICS) is calling for caution in the implementation of new environmental rules affecting the shipping industry.

With a meeting at the UN International Maritime Organisation (IMO) coming next month, ICS said member states should consider the effect on fuel markets of new limits on sulfur emissions in Emissions Control Areas (ECAs) next year and worldwide in 2020.

“The shipping industry is not in any way questioning the need for these important new IMO rules and is fully committed to implementation. But governments need to address some very important issues if they wish to avoid confusion and market distortion,” said ICS Chairman Masamichi Morooka.

"With respect to the issue of fuel availability and the impact on price, there is perhaps even greater concern about the 0.5% global cap in 2020."

"The increased demand for diesel grade fuel from shipping may have an impact on land based industry too."

The industry group said it is "disappointed" that the IMO seems unlikely to push a study on fuel availability forward from 2018, "when it will be far too late to encourage any action needed from governments to help ensure that refiners produce sufficient quantities of fuel, so that ship operators are able to comply."

ICS also said that, while it supports mandatory carbon dioxide (CO2) data collection from ships, the system should be mainly based on fuel consumption and should not involve mandatory operational efficiency indexing that could penalise less-efficient ships.

"No two voyages are the same due to factors such as weather and ocean conditions and many of our members think there is a danger that the development of such an operational indexing system would lead to serious market distortion," Morooka said.

ICS also called for "relatively simple changes" in the implementation of the Ballast Convention to address shipowners' need for confidence that the treatment systems they install will be regarded as compliant.

In July, ICS called for a consistent approach to enforcement of sulfur limits in ECAs.