Asia/Pacific News
Asia Ready for IMO2020, Conference Hears
Asia is very much prepared for IMO 2020 but the region could prove tricky for operators of scrubber-equipped tonnage, says industry veteran Simon Neo, currently CEO of consultancy SDE International.
The comments were made at the recent Asia Pacific Maritime (APM) 2020 exhibition and conference half-day Vietnam Maritime Event, that touched on various issues including the environmental regulations, digitalisation, and shipbuilding.
Asia is a key market for the bunker industry, with Singapore alone accounting for some 17% of global marine fuel sales.
The region has also been the most active as part of the debate on scrubbers; Singapore, China, and most recently Malaysia have also all come out against the use of open-loop scrubbers as a compliance solution. Fujairah is the only other major bunkering port where such restrictions will be in place on January 1, 2020 when the new sulfur rules come into force.
Japan, meanwhile, believes the use of HSFO and scrubbers is actually a superior solution to using compliant fuel with respect to the impact on human health. It is the only nation so far to take such a stance.
But as Neo notes, there will be issues for users of closed and hybrid scrubbers too.
"Major ports, apart from Japan, do not allow open loop scrubbers to operate within their territorial waters. And vessels using the closed loop or hybrid system will also face some problems with the disposal of the waste products produced by these scrubbers, because not many port states have announced their readiness to receive this waste for treatment and safe disposal,” Neo said.
Operational considerations aside, both analysts and owners who have retrofitted vessels with the technology have said open-loop restrictions will not impact the economics of using scrubbers.
