Shipping industry sails into unknown with new pollution rules

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LONDON: Faced with imminent new global marine pollution rules, shipping companies and insurers are puzzling over the risks. To reduce emissions ...

LONDON: Faced with imminent new global marine pollution rules, shipping companies and insurers are puzzling over the risks.

If different types of the new, cleaner fuel are mixed, for example, they may produce a residue which could eventually clog up an engine and, in a worst-case scenario, damage or break it.Several large ship owners said handling the new fuels correctly and making sure the scrubbers were properly deployed would minimise danger, but that if care was not taken, problems could arise.

"Of course this costs us annually around US$100,000, but we prefer that cost than to use untested bunker oil based solely on the Bunker Delivery Receipt and find that we have a massive problem on our ship," he said. Some ship owners have balked at paying for the new 0.5 per cent sulphur fuel, which is quoted at more than twice the price of the 3.5 per cent high-sulphur grade in northern Europe at the moment.

If corrosion was legally deemed to be inevitable, underwriters might try to deny related claims, said Stephen Harris, senior vice president with insurance broker Marsh.

 

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