From the CSA president, Juan Carlos Croston

Maintaining stability in times of uncertainty

As the world focuses its attention on the climate emergency emanating from the threat of global warming, efforts to reduce greenhouse gas emissions continue to have a significant impact on the shipping industry. Although shipping is currently the most efficient and emission-friendly mode of moving cargo, compared with other modes such as aviation, road trucks and railways, it still accounts for roughly 3 per cent of the world’s carbon dioxide emissions. Estimates by the International Maritime Organization (IMO) suggest that if this situation goes unchecked, carbon dioxide emissions from international shipping could increase by as much as 250 per cent over the next three decades.

With this pressing issue in mind, the start of the new year has greeted us with the global implementation of IMO 2020 – a regulation that prohibits ships from using fuels containing more than 0.5 per cent sulfur unless they are equipped with approved exhaust-cleaning “scrubbers”. The previous maximum fuel oil sulfur limit was 3.5 per cent, which makes this 80 per cent reduction the largest undertaken at any one time. While this rule has been in the making for many years, its implementation on 1 January still represents a seismic shift that comes with some degree of uncertainty as to how the change will play out in the short and long term.

Burning Concerns

Among the burning concerns facing the industry at this juncture are bunker availability and supply, fuel quality, compatibility and pricing, the readiness of vessels and enforcement and compliance. As a region, we have gone to great lengths to prepare ourselves for the repercussions of IMO 2020. Reports coming out of the International Bunker Industry Association (IBIA) Caribbean Bunker Conference held in Jamaica last September indicate that several territories are well-positioned to meet the new demands for compliant fuel.

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