PHASE OUT OF SINGLE HULL TANKERS

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• PHASE OUT OF SINGLE HULL TANKERS
• INTERTANKO LATIN AMERICAN PANEL
• November 16, 2005
• Miami Beach, Florida

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PHASEOUT OF S.H. TANKERS

• USA OPA 90 unchanged/clear/simple
• 2010 drop date for all US ports
• 2015 final drop date for all offshore
  lightering areas
• IMO many rule changes - 1992/2001/2003
• Reg. 13G initial clear/complex after amendments
• Reg. 13H restricts of cargoes on SH tankers

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REG. 13G/20 (as amended 2001/2003)

• the 25/30 years criterion replaced with
• a (similar to) OPA 90 phase-out type schedule
• phase-out by ship type ship delivery date
• type 1 (pre-MARPOL) out by end 2005
• type 2 (PL/SBT) S.H. - out by end 2010 except
  when Administration allows until the 25th
  anniverssary but not later that 2015 (13G(7))
• type 2 - DS/DB (as of 07/01/2001) 25th
  anniverssary (pending Adminsitration approval
  13G(5))
• type 3 (all tankers under 20K DWT) as ship type
  2
• CAS ships 15 years and over survey planning
  compulsory (work with your Flag/RO well before
  due time)
• BUT, 13G(8) gives Port State the right to deny
  entry

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NEW REG. 13H/21 (amended 2005)

• heavy grade of oil (HGO)
• HGO is any oil with
• density 900 kg/cub.m and over (at 15 Celsius) OR
• kinematic viscosity 180 sq.mm/s (at 50 Celsiuis)
• plus bitumen, tar and their emulssions
• Application
• 04/05/2005 in DH only for ships above 5,000 dwt
• ships anniverssary date in 2008 in DB/double
  containment for ships between 600 dwt and 5,000
  dwt

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NEW REG. 13H/21(possible) Exemptions

• DS/DB (as was 12/4/2003) may transport HGO up to
  25th anniverssary if Administration allows
  (13H(5))
• SH tankers over 5,000 dwt may transport crude oil
  with density up to 944.9 kg/cub.m up to 25th
  anniverssary if Adminsitration allows (13H(6)(a))
• SH tankers between 600 dwt and 5,000 dwt may
  transport HGOs up to 25th anniversary if
  Administration allows (13H86)(b))
• SH tankers or FPSO/FSU may transport/store HGOs
  in one countrys waters, if allowed (13H(7))
• BUT Port States can deny entry of any of the
  above (13H(8))

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INTERTANKO Service

• http//www.intertanko.com/phaseout/
• phase-out calculator
• implementation policies (Flag Port States)
• table with crude oil densities
• list of Parties to MARPOL

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1 not later than 2015 2 - 2015 or 20th
anniversary which one is earliest 3 - Japanese
flag tankers until 2015 only if they have DB or
DS 4 SH foreign flag tankers until 2008 DB or
DS foreign flag tankers until their 25th
anniversary 5 Korean and foreign flag tankers
will not be allowed to enter Korean ports with
HGOs as from 5 April 2006
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DH Tankers - Age Distribution
Source Joint Tanker Project
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Tanker fleet double-hull development

Source Fearnleys/INTERTANKO
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Tanker incidents and age development

SourceLMIS/Informa/INTERTANKO
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Tanker pollution and age development
Years
000 ts
SourceLMIS/Informa/INTERTANKO
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• MARPOL Annex VI
• Regulations for
• the Prevention of Air Pollution from Ships
• INTERTANKO LATIN AMERICAN PANEL
• November 16, 2005
• Miami Beach, Florida

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RATIFICATION

• Ratified by 22 Governments that have a combined
  tonnage over 50 of World tonnage
• ENTERED INTO FORCE on MAY 19th, 2005
• Ratification by
• Azerbaijan, Bahamas, Bangladesh, Barbados,
  Bulgaria, Cyprus, Denmark, Finland, Germany,
  Greece, Japan, Liberia, Marshall Islands, Norway,
  Panama, St. Kitts and Nevis, Samoa, Singapore,
  Spain, Sweden, United Kingdom, Vanuatu.

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IMPLEMENTATIONMission impossible?

• All Ships are to comply irrespective of Flag
  State Article 5(4) of MARPOL Convention no
  more favourable treatment
• But no obligation for non party Governments
• Many major ports still non-parties (e.g USA,
  The Netherlands, etc.)
• Bunkering in a non party port followed by a
  call in a party port source of trouble out of
  ships control
• Bunker Delivery documentation and Sample here
  is the difficulty FSI 13 MEPC 53

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Certification Survey under Annex VI

• Certification application any ship of 400 GT and
  above
• New ships before enter into service (built on
  or after 05/19/2005)
• Existing ships not later that the first
  scheduled dry-docking but not later than
  05/18/2008
• Survey
• Intial
• Periodical (5 years)
• Intermediate
• Annual

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MARPOL Annex VI

• Scope Control of exhaust gas emissions from
  ships
• Regulations for limiting/eliminating emissions
  of
• Ozon-depleting substances
• Nitrogen oxides (NOx)
• Sulphur oxides (SOx)
• Volatile organic compunds (VOC)
• Shipboard incinerators
• Additinal requirements for
• Reception facilities
• Fuel oil quality

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Ozone-depleting substances

• Any deliberate emissions shall be prohibited
• New installation containing HCFCs
  (hydrochlorofluorocarbons) are permitted until
  January 1st, 2020
• These substances, when removed from ships, must
  be delivered to reception facilities

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Nitrogen Oxides (NOx)

• New engines (i.e. power gt 130 kW, installed on
  ships with buildng contract as from 01/01/2000)
  need to be compliant
• The NOx emission is limited to 17 g/kW h for
  engines operating at max. 130 rpm but reducing to
  9.8 g/kW h for 2000 rpm and more. Between these
  revs the limit is designated by equation
• 45 n(-0.2) g/kW h
• Existing engines can be run, but
• Major Conversion
• engine replacement after January 1st, 2000
• substantial modification as defines in the NOx
  Tech. Code
• the MCR of the engine is increased by more than
  10

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Technical File

• Identification of components, settings and
  operating values which influences NOx
• Identification of the full range of allowable
  adjustments of alternatives for the components
• Full records of the engines peformance
• Onboard NOx verification method

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Sulphur Oxides (SOx)

• Sulphur content of bunkers should not exceed
• World wide trade 4.5
• Baltic Sea (from 05/19/2006) 1.5
• North Sea (from 10/2007 or 08/2007) 1.5
• Alternative exhaust gas cleaning on
• funnel
• IG scrubbers

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Shipboard Procedures for SECAs

• Plan in advance for entry and enter commencement
  date/time of preparation in Logbook together with
  bunker type quantities onboard.
• Logbook record when entry requirements met and
  when ship enters SECA - remember Lat. Long.,
  date/time, together with bunker figures for each
  tank.
• Maintain daily record of bunker used and
  quantification of bunker tanks whilst in SECA.
• DO NOT COMMENCE SHIFT TO HIGH SULPHUR FUEL UNTIL
  EXIT FROM SECA. Log existing conditions for
  bunkers and Lat. Long. with date/time.

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ALTERNATIVES for SECAs
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Volatile Organic Compounds (VOC)

• Specific control of VOC emissons in ports and
  terminals
• Tankers to have and use vapour collection systems
  (return lines) at the loading ports (VOC return
  manifold and operation standards in MSC/Circ.585)
  
• Ports/terminals to provide reception facilities
  for VOCs
• So far, very few terminals have such facilities
• New technologies

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Incinerators

• Incinerators installed after Jan. 1st, 2000 to
  meet regulations and must be certified to meet
  the specifications in MEPC Resolution 76(40)
  (Appendix IV of Annex VI).
• Each incinerator must have a manufacturers
  operations manual.
• Crew responsible for the incinerator operation
  shall be trained and follow the operation manual.

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Operation of Incinerators

• The following substances are prohibited from
  incineration
• Annex I, II and III cargo residues and related
  packing material.
• PCBs.
• Garbage as defined by Annex V containing heavy
  metals.
• Petroleum Products containing halogens.
• PVC can only be incinerated in type approved
  incinerators.
• Flue gas temperatures shall be monitored and not
  less than 850 deg C for continuous feed and reach
  600 deg C within 5 minutes for batch feed.

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Fuel Oil Quality

• Fuel oil shall be blends of hydrocarbons derived
  from petroleum refining
• Fuel oil shall be free from inorganic acid
• Fuel oil shall not include any added substance
  or chemical waste which either
• jeopardises the safety of ships or adversely
  affects the performance of the machinery, or
• is harmful to personnel, or
• contributes overall to additional air pollution

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Fuel Oil Quality

• Bunker Delivery Note (BDN)
• Becomes a Statutory document
• Must be kept on board for 3 years for inspection
  and a copy may be taken for further examination
  by PSC.
• Must contain all data required by Appendix V
• Name and IMO number of vessel
• Port
• Date of Commencement of delivery
• Details of fuel oil supplier
• Product name, quantity , Density at 15 0C and
  Sulphur content m/m
• A declaration that fuel supplied meets Regulation
  14 and 18 requirements

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Declaration on Fuel Oil Quality

• bunker suppliers should make the certification in
  the BDN in the column provided for suppliers
  confirmation, as follows
• We certify that the bunker fuel oil delivered
  meets the requirements of regulations 14 and 18
  of Annex VI of MARPOL 73/78.

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Fuel Oil Quality - Sampling

• A sealed sample meeting the requirements in
  associated guidelines has to be supplied to the
  ship by the bunker supplier
• For each individual BDN a sample has to be taken
  at the vessels bunker receiving manifold. (see
  procedure in associated guidelines) ISM
  Manuals !!??
• The sample label has to be signed by both the
  bunker suppliers representative and the vessels
  Chief Engineer.
• The sample size shall be not less than 400 mls
• The sample is not to be used for any commercial
  purpose
• The sample is to be retained on board for at
  least 1 year for inspection by PSC as required

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Shipboard Procedures for BDN and Samples

• Adequate bunker manifold location for sampler
  attachment
• External safe storage location for samples for 1
  year period
• Log book for sample retention and custody
  transfer
• Safe storage for BDNs and other documents
  relating to bunkering onboard

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Bunker Emission Clause for time charters

• Owners warrant that the vessel shall comply with
  the emission control and other requirements of
  Regulations 14 and 18 of MARPOL Annex VI and any
  other laws or regulations relating to bunker
  specification and bunkering procedures applicable
  in any areas to which the vessel is ordered.
• Charterers warrant that they will supply bunkers
• of sufficient quantity and quality to enable the
  vessel to meet the emission control and other
  requirements of Regulations 14 and 18 of MARPOL
  Annex VI and any other laws or regulations
  relating to bunker specification and bunkering
  procedures applicable in any areas to which the
  vessel is ordered, and
• in accordance with the specifications in the
  latest version of ISO 8217 as at the time of
  supply and any other specifications contained
  elsewhere in this charter party.
• Charterers further warrant that all bunker
  suppliers shall comply with the requirements of
  MARPOL Annex VI and MEPC96(47) in respect of
  sampling and the provision of a bunker delivery
  notes and, where bunkers are supplied in a state
  where MARPOL Annex VI is in force, that suppliers
  shall be registered in accordance therewith.

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Port State Control

• IMO Guidelines for PSCO adopted at MEPC53
• Initial inspections and Primary survey parameters
  then Clear Grounds required for in-depth
  inspections
• In depth inspection parameters
• Detainable deficiencies
• Non-Party ship inspections

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Onboard certificates documentation

• EIAPP Cert. And Technical File for each D/E
• Record of Engine Parameters
• Manual for onboard direct measurement and
  monitoring (if applicable)
• Official Log Book
• Operation manual of Vapour collection system
• Operation manual for Incinerator
• Bunker Delivery Note - Ships Note to Flag States
  reports on non-compliance

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INTERTANKO Guide to bunkering of ships for the
purposes of Annex VI to MARPOL, June 2004

• ANNEX VI OF MARPOL - REGULATIONS
• NOx Emissions Regulation 13
• SOx Emissions Regulation 14
• Fuel Quality requirements - Regulation 18
• The Bunker Delivery Note (BDN)
• Bunker Sampling Procedure and Method to comply
  with Regulation 18
• The Bunker Manifold Construction and Location
• Prescribed sampling methods or system
• Method for sub-sampling for Retention sample
• Retention Sample Storage
• NECESSARY ALTERATIONS TO MEET ANNEX VI
  REQUIREMENTS
• Pre-bunkering meeting and check list
• Sampling and Measurement procedures
• Post-bunkering documentation process

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MARPOL Annex VIfuture developments/amendments

• MEPC 53 July 2005 decided to open Annex VI for
  revision
• Possible revisions on
• World and SECA sulphur cap
• New SECAs
• Lower NOx limits
• Possible new requirements
• Include limits for PM
• Require specific technologies to contain VOCs

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Regional Requirements

• EU Sulphur Directive
• 2000 if used, MGO/MDO max. 0.2 sulphur content
• 2010 as Annex VI use of 0.1 sulphur content
  fuels for ships at berth
• EU to promote its policies to IMO but will go its
  way if IMO too slow or not receptive to new
  proposals
• USA
• Federal - EPA
• State legislations