Bunker Sector Not Ready for 0.5% Sulfur Cap in 2020, Says KPI Bridge Oil

KPI Bridge Oil says the bunker industry is not ready for a 2020 0.5 percent global cap on sulfur content in marine fuels.

Mark Emmett, managing director of KPI Bridge Oil Singapore, says that the bunker industry is not ready for a 0.5 percent global cap on the sulfur content of marine fuels to be implemented in 2020.

As Ship & Bunker has previously reported, the International Maritime Organization (IMO) is expected to decide on a 2020 or 2025 start for the new cap at the Marine Environmental Protection Committee's (MEPC's) 70th session (MEPC 70) in October.

"For the sake of the environment, a global regulation is the right thing to do, that's essential. However if you ask my children they'll say that the regulation should come into force tomorrow but it's not that simple, it will take time to implement," said Emmett.

"There are major geographic differences worldwide, in a country such as Indonesia, for instance, with 4,000 islands, how would they be able to monitor the regulation?"

In addition to the implementation and enforcement of such a regulation, Emmett further questions if there will sufficient amounts of compliant low sulfur fuel available, and what the regulation would mean for vessels that call a port where low sulfur bunkers are not available.

"I've had several conversations with inspection authorities from various nations, and it is safe to say that they admit to be currently lacking the resources for enforcement," said Emmett, who also asked: "who would police this and check if the regulations are complied with?"

Emmett points to the Indian Ocean as an example of a region where the lack of available fuel means that economic considerations could outweigh the environmental considerations of the sulfur cap regulation.

With the possibility of a 2020 implementation date, Emmett further suggests that KPI Bridge Oil offices should map out which fuel is available in different regions in order to ascertain overall availability and share that information with clients.

"If we have to choose between 2020 and 2025, then possibly 2025 would be the best alternative," concluded Emmett.

Last month, Ship & Bunker reported that findings of an independent fuel availability study contradict those of the official IMO study in concluding that should the new cap come into effect in 2020 then refiners could have "extreme difficulty" in meeting demand for low sulfur fuels.