MOL Liner implements Low Sulfur Fuel Charge effective January 2015
From January 2015, MOL Liner will engage in full compliance in the implementation of new Low Sulfur Fuel Policy set by the International Maritime Organization (IMO) in which the new policy requires every ship operating within the Emission Control Areas (ECAs) to use fuel with a maximum allowed sulfur content of 0.1% (current limit: 1.0%), the company said in its press release.
Above charges are per TEU (20 foot equivalent units) and will be applied equally to dry and reefer containers as well as trade direction.
MOL BAF (Bunker Adjustment Factor) formula does already include low sulfur fuel portion in it. The Q1 2015 BAF shall be announced by the end of November 2014 that includes new low sulfur charge effective January 2015.
Today’s IMO definition of ECA includes the Baltic Sea, North Sea, North America (West Coast and East Coast), Hawaii, and US Caribbean Sea areas.
The North American ECA zone includes waters adjacent to the Pacific coast, the Atlantic/Gulf coast and the eight main Hawaiian Islands. It extends up to 200 nautical miles from coasts of the United States, Canada and the French territories, except that it does not extend into marine areas subject to the sovereignty or jurisdiction of other States.
The Europe ECA zone includes the North Sea and the Baltic Sea, which are North Sea southwards of the latitude 62° N and eastwards of longitude 4° W; Skagerrak, the southern limit of which is determined east of the Skaw by latitude 57° 44.8' N; and the English Channel and its approaches eastwards of longitude 5° W and northwards of latitude 48°30' N.
The IMO and approved 3rd parties will monitor the sulfur content of vessels operating within the ECA zones and would assess penalties to carriers not adhering to the regulations.
Based on current scope defined by IMO, Transpacific, Asia Europe (excluding Mediterranean), Trans-Atlantic, North America / South America, North America / Central America, and Hawaii trades are impacted. Cargo transported on trades from/to ECAs will be affected by the low sulfur fuel charge while cargo transported in other parts of the world will not be affected.
The European Union established an EU Directive 2012/33/EU amending Directive 1999/32/EC. The amended Sulfur Directive will be enforced as from 1 January 2015 in the North Sea and Baltic ECAs. The revision directive was an instigation to bring EU regulations in line with current IMO regulations for sulfur emissions from ships under MARPOL Annex VI. In U.S.A., the US EPA issued Regulatory Announcement under EPA-420-F-09-068 in December 2009 confirming the United States intention to implement the MARPOL treaty. In Canada, "The Regulations Amending the Vessel Pollution and Dangerous Chemicals Regulations (the Amendments)" was published on Part II of the Canada Gazette on 8th of May 2013.
