World News
Small Shipowners Face Complexity Without Clear Climate Rules: ICS
The International Chamber of Shipping (ICS) has reaffirmed its support for the IMO's Net-Zero Framework (NZF) but warned that smaller and medium-sized shipowners could struggle with the complexity and compliance costs of upcoming regulations.
While supporting the IMO's upcoming regulations, ICS warns that overlapping emissions rules like the EU ETS could create costly confusion, it said in an emailed statement on Thursday.
ICS also stressed that the current focus has been too heavily on penalties rather than incentives.
"So far, the focus has been on the penalties for emissions ('the sticks'), but clear incentives ('the carrots') for cleaner fuels will be just as important," it said.
"It is these incentives that will motivate fuel producers to deliver the new fuels and infrastructure that will enable shipping to meet the targets."
ICS has recommended that the European Commission replace the EU ETS with the IMO's NZF once it is adopted, arguing that clear, global rules are essential for a smooth transition to net-zero shipping.
"We also call on those with unilateral and regional schemes, such as the EU ETS, to agree to having one clear and transparent system under the IMO. This is critical if we are to meet the time frames set out," Thomas A. Kazakos, Secretary General at ICS, said.
Member states of the IMO are expected to formally adopt the NZF in October, with the rules potentially entering into force by 2028.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 516.50 | 3.00 | 692.50 | 3.50 |
| Rotterdam | 506.00 | 1.50 | 713.50 | 14.00 |
| Houston | 501.50 | 0.00 | 732.50 | 10.00 |
| Fujairah | 511.00 | 3.00 | 750.00 | 2.50 |
| Global 20 Ports Average | 550.00 | 0.50 | 775.00 | 1.50 |
| Global 4 Ports Average | 508.50 | 2.00 | 722.00 | 1.50 |
| Global Average Bunker Price | 588.00 | 0.00 | 818.50 | 2.50 |
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