Biofuel regulations threaten tanker productivity

The requirement for shipboard oil discharge monitoring systems to be capable of monitoring discharges of biofuels, blends of biofuels and oil product cargoes is part of IMO resolution MEPC.108(49), as amended by MEPC.204(65). The requirement comes into effect on 1 January next year.

The measure means that biofuel cargo discharge will be monitored in a similar way to oil cargoes. Under current regulations tankers can discharge waste oily water in volumes of 30 litres per nautical mile at more than seven knots, or up to 1/30,000 of the total cargo carried, whichever limit is reached first.

Product tankers that cannot comply risk severely limiting their trading flexibility, as they will not be eligible to carry biofuel cargoes. Mike Coomber, managing director of Rivertrace Engineering, added: “Tanker owners are sleep-walking into a situation in which the employment opportunities for their ships will become seriously jeopardised.

“It is usually a relatively simple matter to upgrade equipment on board, but it will require careful planning. On straightforward upgrades, all that is likely to be required is replacement of the measuring cell and a new circuit board. You can do this work at sea and, with travel time, it’s likely to cost about US$10-12,000.

“But on pre-2005 units [when monitoring regulations where less stringent] you will have to start again. This could mean a new monitoring system, seven to ten days’ sailing time for installation, and a bill of US$30-40,000.”

There may also be a bottleneck on installation work, Coomber noted, with just six months to go and only five major suppliers – and limited qualified technical teams – carrying out installations.

According to Clarkson figures the product tanker fleet consists of about 2,600 vessels. Although there are still a significant number of ships built before 2005, most of the fleet is less than ten years’ old.