UK P&I CLUB - Low sulphur fuel requirements

On the 1st January this year the EU implemented its requirement that ships burn fuel of 0.1 per cent sulphur content or less when they are within EU ports or within EU inland waterways.

On the 1st July this requirement will be extended offshore into Emissions Control Areas (ECA) which include the North Sea and the Baltic Sea.

The latest UK Club loss prevention

bulletin 671

provides important guidance on the recent 'Commission Recommendation' to permit an eight month transitional period for ships which do not have the necessary technical modifications for burning such low sulphur fuels. We encourage all Members to read this bulletin as there are significant restrictions on the application of this transitional period to ships visiting EU ports.

Two other bulletins on this issue have been published since December 2009.

Bulletin 669

provide an overview of the technical and commercial issues that may arise for shipowners and charterers.

Bulletin 670

provides clarification from the European Commission in a useful question and answer format.

In the United States, the California Air Resource Board is implementing a corresponding directive on low sulphur fuels with effect from 1st January. Phase II of that directive, imposing stricter levels of sulphur content, is scheduled for 2012.

The US Emissions Control Area would include the entire coastline of the lower 48 states, south-eastern Alaska and the main Hawaiian Islands, extending 200 nautical miles from the coastline.

Staff Author

Thomas Miller Group