INTERTANKO and ICS call on EU to modify fuel directive

ICS (the International Chamber of Shipping) and INTERTANKO have welcomed the recent ratification of MARPOL 73/78 Annex VI, that it will enter into force on 19 May 2005, and the two organisations have already indicated their willingness to join in the debate to update Annex VI to modern expectations of environmental protection.

An integral and important part of the provisions is the concept of the SOx Emissions Control Area (SECA) which requires the use of 1.5% sulphur in fuel in the Baltic Sea and the North Sea. Possible changes that could be tabled for discussion include much wider use of the SECA concept to provide greater protection from sulphur deposition where it is environmentally justified.

The two organisations believe that the proposed amendments to the EU Fuel Directive (the EU Directive on Sulphur Content in Marine Fuel 1999/32/EC) should be reviewed in light of the changed circumstances brought about by the entry-into-force of Annex VI. The combination of the two regulations will give rise to extraordinary requirements on ships in international trade, requirements that impose commercial and practical difficulties.

The implementation of amendments to the Fuel Directive will imply that vessels coming from third counties will be required to carry three fuel types onboard:

– the fuel used in the international seas (on average 2.6% sulphur content)

– the 1.5% sulphur content fuel to be used in SECAs.

– the maximum of 0.1% sulphur content “when at berth”

Three different fuels will introduce the necessity for significant adaptation and enhancement of engine room systems and modifications to vessels engines. The requirement for the sulphur content in the EU Directive, where it deviates from Annex VI, therefore contradicts the provisions of the MARPOL and SOLAS Conventions and the provisions of the UN Convention on the Law of the Sea (ratified by EU Member States) stipulating what regulatory actions coastal states can take in relation to third party flag vessels.

ICS and INTERTANKO once again call for the requirement for 0.1% sulphur content at berth to be removed from the Directive or that a derogation be provided for vessels flagged outside the European Union. The oil and bunker industries have expressed doubt that sufficient low sulphur fuel can be made available in the appropriate locations. The creation of a European based market for low sulphur fuel has the potential to de-stabilise the established bunker markets. Therefore both organisations also propose that the Fuel

Directive should take into account the availability of fuel through the following measures:

– provide dispensation to ships that can document that compliant fuel has been ordered in a specific EU port but that supplies were unavailable within the necessary operational time to meet the requirements of the Directive

– or, alternatively, provide consequential action against the relevant authority that was unable to meet the supply requirements of this proposed Directive.

INTERTANKO and ICS maintain that the only solution for emission reduction from international shipping is through global measures. The guaranteed availability of fuel of the correct quality is a vital part of the facilitation of maritime trade and the preservation of safety at sea. A global regulatory system facilitated by the IMO is safer and more efficient than disparate regulatory structures and requirements. ICS and INTERTANKO also support the attached ECSA position paper.