Asia/Pacific News
Australia: Shipowners Voice Post 2020 Supply Fears
Bunker fuel in the Australian market could be in short supply after the new sulfur cap comes into force from the start of 2020, local shipowners fear.
Angela Gillham, deputy chief executive of shipowners' body Maritime Industry Australia, has said that blended fuel oil probably will not be supplied to Australia because its marine fuel market is considered too small.
"That would force operators to use automotive diesel, which is ultra-low sulphur fuel and significantly more expensive," Gillham was quoted as saying by local news provider the Australian.
Ports are landlords and it is their tenants that supply fuel to vessels via direct contracts. Also, the new sulphur requirements will be policed by the Australian Maritime Safety Authority rather than state-controlled port authorities.
"It is really difficult to pin down which party will be responsible for ensuring compliant fuel is available. The market will take care of some of these issues eventually but in the short term, there are a lot of unknowns," Gillham said.
However, while acknowledging shipowner concerns, Ports Australia policy director Ashween Sinha said that "failure to guarantee supply is not an option".
"As set out by the International Maritime Organisation, every port will have to be able to provide low-sulphur fuel by 2020. Ports will have to engage with suppliers to ensure its availability," Sinha was quoted as saying.
In many cases, foreign vessels making Australian port calls tend to refuel overseas where prices are lower.
