Impact of ECA Regulation on the Shipping Sector

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 ECA – One Year Later

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The use of distillate fuels is currently regarded as the easiest compliance method, both from a technical and financial point of view (86% of the ECA vessels use distillates).  LNG and scrubbers are considered secondary solutions.  Approximately 160 vessels have been equipped with scrubbers worldwide and 83 of them are cruising the European ECA.  Further, 69 of these vessels are part of the ro-ro and ferry fleet (43.1%), making it the key target for implementing the scrubber technology.

Interesting Read: 6 Ways a Ship can Lose Propulsion!

A radical drop in the oil prices in 2015 and the consequent changes to the bunkering market made the distillates an attractive option to shipping operators.  The costs of bunkering, after switching to MDO, did not increase during the first year of ECA implementation.  The report examines the structures and levels of sulphur surcharge levels, implemented by shipping lines operating in the Baltic ECA.

Additionally, the report provides a brief rundown of the actions undertaken by the EU Member States, with the European Maritime Safety Agency (EMSA) as a coordinating body in terms of controlling the vessels sailing in the Baltic SECA as well as other EU seas.  A rather high level of compliance was noticed during the first 12 months of implementing the 0.1 sulphur limits in marine fuel.  The majority of non-compliance cases are associated with erroneous entries in ship log books, regarding fuel changeover procedures as well as bunker delivery notes. However, a significant part of the non-compliance results is associated with fuel used by ship operators.

Interesting Read: Ship’s Fuel Samples Revealed Sulfur Violations

The North and Baltic Seas are two of world’s busiest shipping areas.  The implementation of the SECA regulation is a complex process in need of careful analysis.  The report, prepared by Dr. Maciej Matczak and Monika Rozmarynowska-Mrozek, adds to the line of expert studies published by the BPO over the years, serving as a go-to source of insight on a topic vital to the development of the Baltic market.

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Source: Baltic Ports Organization