New Sulphur rules a worry for the shipping industry

 

New legislation designed to help reduce CO2 emissions comes into force next year, and it looks like causing a headache for the shipping industry. The 0.1 percent sulphur in fuel requirements in Emission Control Areas regulation will come into effect on 1 January 2015.

The maximum sulphur content in bunker fuel permitted in ECA zones will reduce from 1 per cent to 0.1 per cent, which means that ship operators will be forced to switch to tanks of distillate fuel, which is around 50 per cent more expensive.

The International Chamber of Shipping (ICS) estimates that total greenhouse gas emissions from global maritime transport have already reduced by around 20 per cent between 2007 and 2012, but the sector is still looking at the implementation of mandatory global regulations for CO2 emissions, which are targeted at reducing CO2 in the future.

International Chamber of Shipping Secretary general Peter Hinchliffe said,

"The shipping industry fully recognises that governments expect even greater CO2 efficiency improvements in the future. Given the very high cost of fuel which is soon set to increase by around 50% due to separate new rules on sulphur the industry already has every incentive to deliver this,"

The introduction of these strict regulations is problematic for the shipping industry, with regulations banning ships from burning sulphur port in due to the environmental impact. This is likely to have an even greater effect on large vessels with more 4000 containers.

 Some ships are finding fuelling to be a big problem already; there have been reports of vessels actually plugging into power sources when arrive at shore – this also proves to be an expensive option so it’s not a viable solution. Other ships have been turning to LPG instead of diesel in order to cut costs, or other fuels, but this is only possible when a ship runs on a line - there is no guarantee that alternative fuels will be available at all ports.

On top of this, there are even greater worries ahead about availability of fuel, and the impact of legislation on the cost, with a  0.5 percent global cap on sulphur due to take effect in 2020. Experts believe that an increase from the shipping industry in the demand for diesel grade fuel could even have an impact on land based industry .

Badly packed and stowed cargo causes most insurance claims

The packing of Cargo Transport Units (CTUs) is high on the agenda for the shipping industry, and correctly stowing your freight is absolutely imperative – you might have thought that was obvious, perhaps, but according to The TT Club, a leading provider of insurance for the international transport and logistics industry, a staggering 65 per cent of damage to freight is simply down to bad loading, packaging and stowing. That’s an awful lot of expense and damage which could be avoided with the correct training or expert assistance.

The Cargo Incident Notification System (CINS) backs up the statistics, showing that more than 30 per cent of cases investigated through the system were caused by bad stowage and poor packaging.
In an attempt to reduce the amount of claims, the TT Club has developed a brand new online e-learning course which aims to focus attention on the many problems that bad packing can cause, and provide up to date guidance.

The course, which launched in January, is a useful online training tool for anyone who is involved with packing and unpacking cargo transport units (CTU) and the first release of the foundation course has just been launched.

There are modules looking at cargo, transport, packing and arrival and the course also covers relevant issues such as the forces and stresses encountered during transport, and the careful consideration that needs to be taken when packing and securing cargo.

• Cargo – covers the types and physical characteristics of cargo and looks at the problems that badly packed cargo can cause.
• Transport - the main modes of transport, different types of equipment, and the forces and stresses encountered during transport. Also looks at choosing CTU and route considerations.
• Packing - covers preparation for packing, the basic principles and rules which apply to packing and securing, manual and mechanical handling, cargo securing materials, closing the CTU and securing it, in addition to correct documentation.
• Arrival – what precautions to take when opening the CTU at arrival.

T Ward Shipping has a variety of services available to ensure that your cargo loading takes place smoothly, and avoiding unnecessary damage during transit. We can provide clients with a range of equipment,  mobile cranes, fork lifts, special heavy lift equipment, low loaders, MAFI’s, Stevedoring and any other equipment necessary to get the job done professionally and as quickly as possible.

If you think you may need help with cargo lashing and securing, we can organise that on your behalf too, making sure that you have complete peace of mind at all times.

This video gives you an idea about why packing is so important!