What Are Bunker Suppliers Doing to Prepare for IMO2020?

Monjasa Group COO Svend Stenberg Mølholt. Image Credit: Monjasa

While there has been considerable discussion on the need to prepare for the upcoming "IMO 2020" global 0.50% sulfur cap on marine fuel, what bunker suppliers have actually been doing to date has varied considerably.

One suppler happy to talk about its IMO 2020 planning is Monjasa, who recently told Ship & Bunker it has already been engaged in a wide variety of preparations ranging from engagement with customers to maritime authorities, on both a global and local scale.

"We have been preparing for IMO 2020 in many ways, for example, Monjasa has been in discussions with the Danish Ministry of Environment to understand what compliance measures they will be taking in Denmark, how they will work with the IMO, and how we can become part of making sure these new regulations achieve their desired effect in Denmark," says Svend Stenberg Mølholt, Group COO at Monjasa.

"Then based on our input to them on how we see IMO 2020 being governed in Denmark, we also hope they bring this to the IMO and potentially this can have some broader, global consequences."

Monjasa has also been working with Danish Maritime authorities for round table discussions to gain a better understanding on topics such as enforcement.

"This is important particularly for when we do bunker deliveries offshore, because as with any maritime authority they usually do audits at port calls," says Mølholt.

"So we've been in dialogue to see what then happens when we do bunker operations for ships off-anchorage that never call at a Danish port. How do you make sure to govern that? What are our ideas to govern that? This is important because we not only want to be ready as a supplier, but we want to play a role in making sure that by 2020 we are ready as a country to comply with the rules and work together to ensure there is compliance."

Compliance

Compliance is fundamental to the success of IMO 2020, and the new rules will create a multitude of new challenges in this area.

"Take for example if after 2020 we were to supply a ship with 3.5% sulfur fuel. As long as we're notified they have a scrubber then we are off the hook, we have no further liability," says Mølholt.

"But if we look at a ship built in say 1990 and they are saying we can deliver HSFO because they have a scrubber, we can think to ourselves that probably doesn't make sense! But what shall we do in these circumstances? These are the types of examples we have brought to the ministry and authorities."

Among the solutions to such a problem, Mølholt suggests, is including the international air pollution prevention (IPP) certificate as part of the vessel's documentation chain.

"That would show if the vessel has a scrubber or not, and when we run compliance on a ship we already have the IMO number to check its whereabouts and where it's heading to ensure it is not in breach of sanctions," he says.

"We could easily ask them to submit a copy of the IPP and we can scan and document that to make sure they are in compliance. That is just one example of the types of dialogue we are having."

Mølholt says Monjasa has also been in workshops with the wider Danish Shipping community, including players such as Maersk and Torm, to discuss how they can mutually cooperate on IMO 2020.

"This also helps us get feedback on what their customers need, which has helped us understand the growing importance of compliance right across the global supply chain," he says.

While the new rules come into effect on January 1, 2020, Mølholt expects the market shift to begin in the second half of 2019.

"If you do it much later than Q3 you're going to run into problems as there's no grace or transition period. So in Q3 you'll see actual volume being supplied and we'll get a feel for the whole logistics and infrastructure of the new world of bunkers," he says.