20 Point Checklist for IMO 2020 Readiness

By
Mfame Team
-
2170

The NSI reportedly released a 20 point checklist that helps shipowners better prepare for the upcoming IMO 2020 sulphur cap.

  1. Analyse your historic lifting patterns. Take into account any drastic changes you might be facing in the near future.
  2. Decide whether to burn distillate or 0.5% fuel oil.
  3. Check the availability of each type of product.
  4. Check the compatibility of each type of product.
  5. Contract a viable and legal tank cleaning service. 
  6. Make plans to stagger the tank cleaning.
  7. Carefully scrutinize the contract structures in major ports.
  8. Plan a hedging programme to mitigate price risk.
  9. Plan operationally for the segregation of tanks for differing products and check how it will effect lifting schedules.
  10. Get the extra manpower in place to handle the additional requirements for planning and implementation of IMO 2020 programme.
  11. Prepare for claims due to reproducibility of sample on 0.5% sulphur product? (The product will most likely be blended as close to the limit as possible)
  12. Have a procedure in place if there is co-mingling of products and there are operational problems.
  13. Check engine warranties for newer vessels and/or equipment guarantee terms and periods.
  14. Factored in the operational cost models of the potential scarcity of different products.
  15. Consider pooling your volume in major ports with other owners.
  16. Secure barging in your main lifting ports where there might be scarcity due to increased segregation of products on board the barge.
  17. Make a plan to increase the lead times for enquiries and to maximise the stems.
  18. Talk to suppliers about increasing credit lines (conservatively you will need 40-50% more credit)
  19. Factor in your budget, the need for increased capital requirements.
  20. Fully assess scrubbers as an alternative.

By following these few things one can plan viably for the 2020 sulphur and in case anyone requires planning services, the NSI is here to help and advise on any of the above areas of concern.

Did you subscribe for our daily newsletter?

It’s Free! Click here to Subscribe!

Source: NSI