INSIGHT-Shipping industry sails into unknown with new pollution rules

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Oct 15 (Reuters) – The U.S. Environmental Protection Agency on Friday said it would investigate the Texas air regulator over allegations of racial bias in rulings involving pollution in Black neighborhoods by a refinery waste recycler.

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Norwegian ship insurer Gard cited a few cases where sparks from welding or cutting fell into a scrubber through uncovered openings: in one case it spread to the engine room through glass reinforced epoxy piping.

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Before the deadline, ship operators rushed to buy large quantities of compliant fuels to ensure adequate supplies, piling pressure on bunker suppliers and pushing premiums for delivered fuels to record highs.

Neither option has been fully tested for long, and some problems have already been reported, both with the more expensive new fuels and with devices known as scrubbers which extract the sulphur on board.

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Around 172 ships have avoided the problem because they are powered by sulphur-free liquefied natural gas (LNG), data from Norwegian risk management and certification company DNV GL showed, but this in an expensive option.

Alvin Forster, deputy director with North P&I club, cited possible engine failure in busy shipping lanes, while Precious Shipping’s Hashim said members investing in expensive low-sulphur fuel should not have to share the loss on any scrubber claims.

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Installations have been delayed chiefly by material shortages and limited shipyard capacity further complicated by the shortage of personnel at Chinese yards from the recent coronavirus outbreak, said Kock.

“There are low-income African-American community members living on the fence line of the Valero Norco Refinery and are being negatively impacted by the cumulative impacts of emissions being released by the Valero refinery,” Subra said.
Regulators should require the refinery to cut those emissions to “improve the quality of life for the fence-line community members.” (Reporting By Tim McLaughlin in Boston; Editing by Andrea Ricci)

Since the start of the year, the International Maritime Organization (IMO) has banned ships from using fuels with a sulphur content exceeding 0.5%, from 3.5% earlier, unless they are equipped with sulphur-stripping devices known as scrubbers.

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Cooling VLSFO prices are also an early sign of stabilizing market fundamentals after months of volatility sparked by adoption of new global marine fuel rules in one of the biggest shake-ups in decades for the shipping and oil industries.

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