Manager fined for violating ECA regulations

IONIAN M was sentenced to pay a fine of US$250,000 and placed on probation for one year.

Between 3 January 2017, and 10 July 2018, the company’s managed vessel M/T Ocean Princess entered and operated within the US Caribbean Emission Control Area (ECA) using fuel that contained excessive sulphur (exceeding 0.10% sulphur by weight) on 26 separate occasions.

The fuel was petroleum cargo that had been transferred to the bunker tanks under authorisation by IONIAN M.

U.S. Coast Guard inspectors discovered the violation when they boarded the M/T Ocean Princess on 10 July 2018, to conduct an inspection.

The M/T Ocean Princess was owned by Lily Shipping Ltd. and operated by Ionian Shipping and Trading, both Greece-domiciled companies. These two companies previously pleaded guilty to felony violations related to the use of non-compliant fuel and falsification of records and were sentenced to pay a combined criminal fine of US$3 million, serve a three-year period of probation, and implement an Environmental Compliance Plan. The sentencing of IONIAN M is the final chapter in this multi-year investigation and prosecution of the companies and individuals involved in the use of non-compliant, high-sulphur fuel in the operation and management of the M/T Ocean Princess.

“The sentence imposed on this commercial vessel manager for intentionally violating environmental laws designed to protect the air quality of the United States sends a strong message that the United States will not tolerate such violations and will hold violators accountable,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division.