Global Sulphur Cap 2020 – Circular #2

09.17.2019

Global Sulphur Cap 2020 – Circular #2

September 17. 2019

Cuxhaven, 17.09.2019

Global Sulphur Cap 2020 – Circular #2

Dear valued Customer & Partner,

More than 60,000 vessels worldwide will have to comply by 1st January 2020 with a limit of sul-phur content of 0.5% in ship´s fuels. In order to reach this global target, new cracking processes and yet unknown low sulphur blending fuel oil components will be introduced in the fuel oil pool. As a result new VLSFO 0.5% fuels will have a much different chemical composition compared to the existing fuels, which were obtained from traditional thermal cracking processes, and conse-quently this will lead to an increased risk of operational problems.

The International Maritime Organisation (IMO is part of United Nations) is currently discussing how to identify any potential safety issues related to new blends of fuel oil as it is recognized that if these fuels are not managed appropriately, there could be technical problems. Although the 0.5% blended fuels are not yet widely available, Ship Owners do not only need to be aware of the correct sulphur content but also of the right fuel oil technical standards for their vessels. Knowledge of supply chain and product sourcing becomes far more important due to increased complexity.

Increasing Fuel Costs are the natural consequence – the question in this connection may only be how much the costs will rise. Costs are not even the main challenge: IMO will enforce the reg-ulation without any exception worldwide. Fines and penalties will vary between member states but Port State Control will prosecute any vessel directly, rather than just reporting to the respective flag state. Singapore for example will seek prison for Captains and Owners.

All BREB-vessels have a Global Sulphur Cap 2020 Ship Implementation Plan approved by Class Society. Presently we are working on a “Bunkering & Fuel Management System” for our fleet with the purpose to ensure that our vessels are always supplied with fuel oil according to the new sul-phur regulations and the special technical demand of our vessels to deliver reliable service to our clients. Our “Bunkering & Fuel Management System” shall also include a tool to minimize the risk of extremely rising costs for the benefit of or clients.

We will keep you duly posted on all developments in the next weeks and remain

with best regards

BREB GmbH & Co. KG

Your BREB-Team

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