China ECAs Will Have Limited Impact For Operators, Says Shipbroker

Operators at Chinese ports like Tianjin should have little problem with new rules for ECAs, says Banchero Costa.

Italian shipbroker Banchero Costa says that new Emission Control Area (ECA) rules set to come into force in China over the coming years will have a limited impact on the shipping industry compared to existing regulations elsewhere in the world, IHS FairPlay reports.

"It becomes apparent when comparing the Chinese ECAs to the already existing ECAs that the scope of the regulation and the potential impact of the newly instituted ECAs is more limited," Banchero Costa was quoted as saying.

"The two main reasons being the increased sulfur limit in the fuel allowed and the focus on vessels only when they are berthed until 2019."

Banchero Costa notes that rules for Chinese ECAs are not based on existing International Maritime Organization (IMO) MARPOL Annex VI ECA regulations, which cover the Baltic Sea, North Sea, and the North American Coast and require fuel with a sulfur content of 0.10 percent or less.

By contrast, vessels within Chinese ECAs will require fuel with a sulfur content of 0.50 percent or less.

As previously noted by Ship & Bunker, pending the outcome of an International Maritime Organisation (IMO) fuel availability study, in 2020 a global 0.50 percent maximum sulfur cap will be brought into force, meaning the Chinese ECA may be in-line with the new global rules after just one year.

Banchero Costa also pointed out the current, and potentially ongoing, environment of low bunker prices.

"The cost of complying at present is not excessive thanks to the depressed bunker prices, however this does not provide any future guarantees," the group said.

Last week, Ship & Bunker reported that Shanghai was the only port considering voluntary regulations next year, before mandatory regulations enter into force in 2017.