Assessing court’s ruling on VGP ballast water requirements

An “action item” alert from law firm Blank Rome sheds some light onto the significance of this decision.

Blank Rome notes that the Second Circuit Court of Appeals remanded the issue to the EPA to redraft the ballast water sections of the VGP.

The firm says that “the differences between the VGP ballast water provisions, International Maritime Organization (“IMO”) Ballast Water Management Convention, and U.S. Coast Guard’s ballast water regulations have posed a number of compliance challenges thus far, which may be further exacerbated by possible new VGP requirements. While substantive changes to the VGP ballast provisions, if any, are likely years away, shipowners and operators should be aware, closely monitor, and be prepared to comment on a new draft VGP in the future.”

“Most notably,” says Blank Rome, “the court stated that the EPA failed to adequately explain why stricter technology-based effluent standards should not be applied, failed to give fair and thorough consideration to onshore treatment options, and failed to adequately explain why pre-2009 Lakers were exempted. The court instructed the EPA to reconsider the VGP ballast water provisions in accordance with its ruling. In the meantime, the 2013 VGP will remain in effect.”

“The possibility that the EPA may alter its VGP ballast water provisions does, however, create uncertainty for those striving to comply with both the VGP and U.S. Coast Guard ballast water requirements,” notes Blank Rome. “The U.S. Coast Guard’s ballast water regulations, like the current VGP ballast water requirements, for the most part mirror the IMO Ballast Water Management Convention, though there are some differences. Ship owners and operators have struggled to understand and comply with these overlapping requirements. Any changes to the EPA’s ballast water requirements will require extensive discussion with the U.S. Coast Guard to ensure any new VGP ballast water requirements can co-exist with the U.S. Coast Guard and IMO regimes.

“The ruling does not impact the U.S. Coast Guard’s ballast water management system type approval process. That said, should the EPA create stricter technology-based effluent limitations (TBELs) than the U.S. Coast Guard and IMO standards, it will be even more challenging for vessels to comply with both the U.S. Coast Guard and EPA standards because the systems approved by the U.S. Coast Guard and required to be installed may or may not meet the stricter VGP TBELs. It is also unclear how the EPA would enforce stricter TBELs as the Coast Guard generally conducts the vessel inspections and passes information on possible violations to the EPA.”

Read the full text of the Blank Rome action item HERE

Navy tug on way to seek El Faro wreckage and VDR

The tug is deploying to a search area northeast of Crooked Island in the Bahamas island chain, which is the last known location of the vessel.

The initial search area is 100 square miles, and water depth is estimated to be 15,000 feet across the expected search area. Transit to this search area is expected to take four-to-five days due to weather.

Apache is equipped with several pieces of underwater search equipment, including a voyage data recorder locator, side-scan sonar and an underwater remote operated vehicle.

The Navy’s mission will be to first locate the ship and then, if possible, to retrieve the voyage data recorder (VDR) – commonly known as a black box.

The U.S. Navy operates some of the world’s most advanced underwater search and salvage systems. Though this equipment is typically used to search for and recover downed military ships and aircraft, the Navy has a long history in assisting other federal agencies in underwater search and salvage operations, including the search and recovery of TWA 800 and the space shuttle Challenger. In 2013, the Navy assisted the government of Australia in its search for missing Malaysian Airliner MH 370.

USN Apache is a fleet ocean tug operated by the Military Sealift Command. The ship provides towing, diving and standby submarine rescue services for the Navy.

The ship is 226 feet long and has a crew of approximately 22 civilian mariners and uniformed Navy personnel.
The crew will be joined by a team from the Navy’s Supervisor of Diving and Salvage.

Also on board is the NTSB Investigator-in-Charge, Tom Roth-Roffy, and representatives from the USCG, TOTE and ABS, all parties to the NTSB investigation (see new story).

Euro MPs want to fast track setting of shipping GHG target

 

Specifically, the resolution “calls for all the Parties to work through the International Civil Aviation Organization (ICAO) and the International Maritime Organization (IMO) to develop a global policy framework to enable an effective response, and to take measures to set adequate targets before the end of 2016 for achieving the necessary reductions in the light of the 2 °C target [for a limit on global warming].”

The resolution has drawn a very guarded response from European shipowners.

“We are happy to see that the European Parliament recognizes the importance of a global solution for international shipping and gives a vote of confidence to the IMO, which should be allowed to pursue its efforts,” said Patrick Verhoeven, Secretary General of ECSA, the European Community Shipowners Association. “We are however also concerned by the deadline adopted by MEPs on Wednesday. 2016 is right around the corner and as such it is rather unrealistic to expect the IMO to come up with a solution in a matter of months. A unilateral European push for a hard deadline may be counterproductive.”

ECSA calls IMO’s track record in developing technical CO2 energy efficiency measures for the maritime sector “impressive.”

Following the adoption of the amendments to MARPOL Annex VI, which came into force worldwide in 2011 and which now apply to about 95% of the global merchant fleet, international shipping is the only industrial sector already covered by mandatory and binding global measures, notes ECSA. IMO also recently adopted the Energy Efficiency Design Index (EEDI), which requires all ships constructed after 2025 to be 30% more efficient that those built in the 2000s, with further efficiency improvements going forward. Finally, the shipping industry itself, prompted by an increase in bunker prices, has made strides in increasing its energy efficiency and curbing its CO2 emissions.

As a result of recent efforts, the contribution of shipping to global CO2 emissions has in fact dropped, says ECSA.

According to the latest IMO Green House Gas study, published in 2014, international shipping (while transporting about 90% of world trade) produces about 2.2% of the world’s total CO2 emissions. This figure was 2.8% in 2007, and the total CO2 emissions from shipping went down by over 10% between 2007 and 2012. This was despite continuing growth in maritime trade which means that shipping is already delivering carbon neutral growth.

“The 2016 deadline is not consistent with the steps already taken at EU level” commented Benoit Loicq, ECSA Safety and Environment Director. “By pushing for an extremely tight deadline, the EU would essentially undermine the IMO procedure. If the EU would then focus on regional measures, it would be backtracking on its own policy.”

ECSA says the EU Monitoring, Reporting and Verification (MRV) Regulation is intended to be the first phase of a stepwise approach geared towards a global (read IMO) solution by allowing to determine the real contribution of shipping to global CO2 emissions.

“The course of action that has been agreed is to start with an accurate picture of the shipping industry’s CO2 emissions in 2018 (i.e. two years after the MEP-backed deadline),” says Mr. Loicq. “If we now backtrack and skip the data collection phase altogether, how would it be possible to set realistic and fair targets?”

Crowley in strategic partnership for BWTS retrofits

The agreement includes technical services, engineering, integration, commissioning, training, scheduled delivery and spare parts.

The GloEn-Patrol treatment system utilizes a filter to remove 50 micron or larger size organisms and medium-pressure UV lamps to disinfect smaller organisms.

GloEn-Patrol models treat from 50 to 6,000 cubic meters of ballast water per hour. They have IMO-type approval and certification from many classification societies including American Bureau of Shipping (ABS) and DNV GL, and U.S. Coast Guard Alternate Management Systems (USCG AMS) for non-hazardous areas such as engine rooms, and explosion proof models for installation in areas such as the main decks of articulated tug barges (ATBs) and tankers.  

“We found Panasia ballast water treatment systems to be a good operational and functional fit for our vessels, backed with a level of commitment and service we require,” said Bill Metcalf, Crowley vice president of strategic engineering. “Panasia and its management team is fully committed to our vessels’ safety and the environmental performance of our ballast water systems, and we are pleased to have them as our partner.”

Crowley says that DNV GL is completing the required tasks for the Panasia system to secure USCG type approval will provide its report by October, 2016.

DHI Group has been chosen for shipboard tests and Golden Bear Facilities has begun the work on the land-based tests, all under DNV GL’s guidance, and supervision to comply with the Environmental Technology Verification (ETV) Program.

Shipping fights proposed $26 billion a year CO2 tax

 

The aim of COP 21 is to achieve a new international agreement on the climate, applicable to all countries, with the aim of keeping global warming below 2°C. This will mean a big reduction in Greenhouse Gas (GHG) emissions. International shipping is a major generator of GHG and IMO, the UN agency that covers shipping, has been working steadily on measures to reduce them.

At COP 21, however, shipping will be in the cross-hairs of any number of interests that want to see it cut GHG even further and that will be pushing for various tough measures to see that this happens.

Even before COP 21 gets underway, an OECD think tank called the International Transport Forum has produced a policy brief calling for shipping to pay a carbon tax of around $25 per ton of CO2 generated. The policy brief doesn’t get into how the CO2 emissions would be measured or the tax collected, but it does suggest that the considerable revenues generated (around $26 billion a year) could go to the Green Climate Fund, which has been set up to finance climate mitigation projects in developing countries.

The International Chamber of Shipping (ICS), argues that the $25 a ton suggested by the International Transport Forum would be almost three times higher than the carbon price paid by shore based industries in developed nations. About 70% of the world merchant fleet is registered in UNFCCC “non-Annex I” developing countries, and maritime trade is of vital benefit to rich and emerging economies alike.

ICS emphasizes that shipping is committed to reducing CO2 and has a responsibility to contribute to the achievement of the United Nations 2°C climate change goal. But the UNFCCC recognizes that developed and developing nations should accept differing commitments, and shipping is no different, especially in view of its vital role in the movement of about 90% of global trade.

While China and India, for example, have already made positive CO2 reduction commitments to COP 21, says ICS, these will not deliver absolute CO2 reductions for several years. Some richer nations, however, consistent with the UNFCCC CBDR principle, have made more ambitious commitments. Shipping meanwhile has already reduced its total CO2 emissions by more than 10% (2007- 2012) and CO2 per tonne-mile by around 20% (2005 – 2015). It is therefore on course for carbon neutral growth.

“While shipping may currently have CO2 emissions comparable to a major OECD economy, it is inappropriate for the ITF to propose that the industry should be treated like an OECD economy,” said ICS Secretary General, Peter Hinchliffe.

The position of ICS remains that if IMO Member States should decide to adopt a shipping MBM (Market Based Measure) , the industry’s clear preference is for a fuel levy, rather than an emissions trading scheme or other complex alternatives that would distort global shipping markets. However, if a levy was developed by IMO, ICS believes that any money collected should be proportionate to international shipping’s share of the world’s total CO2 emissions (2.2% in 2012 compared to 2.8% in 2007), not the $26 billion dollars a year that a $25 per ton CO2 tax would raise.

Read the ITF Policy Brief HERE

Read the full ICS response HEREMBM

ABS offers guide for “SOx Scrubber Ready” ships

 

Instead, when ordering a newbuilding they may prefer to order a ship that is “SOx scrubber ready.”

Classification society ABS says that, Iin order to facilitate future modifications, ship buyers and shipbuilders must make a significant effort to figure out what features should be incorporated on a vessel and incorporate these in the shipbuilding contract.

To support shipowners taking this path, ABS has published the ABS Guide for SOx Scrubber Ready Vessels to support members and clients in preparing newbuilds for future outfitting with a SOx exhaust gas cleaning system (EGCS).

The guide supports the ABS classification notation for SOx Scrubber Ready Vessels by formalizing the process for clients who wish to plan for retrofit of a SOx scrubber at a future date by providing a detailed review and approval and an associated notation.

The SOx Scrubber Ready notation is in addition to ABS EGCS notations that may be assigned for vessels fitted with an exhaust emission abatement system, including SOx scrubbers, selective catalytic reduction systems and exhaust gas recirculation arrangements for NOx emission control, in accordance with the ABS Guide for Exhaust Emission Abatement.

More HERE and HERE

 

MarAd project to convert towboat engine to burn LNG

OCTOBER 8, 2015—The U.S. Department of Transportation’s Maritime Administration (MARAD) has announced that it will provide over $1 million to support the development of two new emission-reducing maritime solutions.  The first is

Updates to DNVGL’s ECO Insight driven by user feedback

OCTOBER 8, 2015—Classification society DNV GL has recently released an update to its fleet performance solution ECO Insight. DNVGL says that the new features in the updated version draw on the feedback

Sulfur in Danish air halved since ship fuel limits imposed

 

Evidence for the dramatic reduction comes from measurements taken by a technologically advanced “nose” or “sniffer” installed on the Great Belt Bridge to monitor ships’ compliance with the new rules. Installed by the Danish Ministry of the Environment and Food, the sniffercan detect the use of illegal fuels by ships sailing under the bridge. 

The first air measurements performed by the sniffer show that 98% of ships comply with the sulfur standards and, according to a new report by the Danish Center for Environment and Energy at Aarhus University (DCE), the total content of airborne sulfur has been reduced by up to 60% since the new year. 

“Sulfur and particles are harmful to people, so it is good news that the new environmental requirements are having an effect. As the first country in the world, Denmark has implemented new technology to monitor ships’ emissions and ensure full compliance with the requirements. Significant economic savings are possible by circumventing the law, so monitoring and enforcement are important to avoid harmful pollution from the ships and an unfair competitive situation for the law-abiding shipowners,” says Minister for Environment and Food Eva Kjer Hansen.

The additional costs of fuel depend on the size and speed of the ship, but they can be up to DKK 1 million for a round trip journey between the English Channel and Baltic Sea.

Monitoring at the Great Belt Bridge is not the only measure. A sniffer is also installed on a small plane that monitors ships sailing along major shipping routes through Danish waters. If the sniffer measurements show that a ship is using illegal fuel, the authorities at the next port are notified so that they can stop the violation.  

Chalmers University developed the sniffer technology. The Ministry of the Environment and Food is funding the monitoring efforts, which cost DKK 6.3 million. 

“The Danish shipowners fully support the new requirements and there is a positive, close cooperation regarding monitoring and enforcement between the Ministry of the Environment and Food and the Danish Shipowners’ Association, under the auspices of the Partnership for Green Shipping,” says Director General Anne H. Steffesen of the Danish Shipowners’ Association. “Effective international enforcement is crucial to the industry and ensuring equal competitive conditions for all. Remote monitoring from bridges and aircraft can be an important part of ensuring compliance with the rules – especially when stricter requirements take effect worldwide by 2025, making international enforcement even more important.”

A joint international effort to ensure that ships comply with environmental requirements is important. Therefore, Denmark is currently working in the EU and the UN International Maritime Organization to ensure effective and uniform monitoring and enforcement.

New Eco-Ships launched at Hyundai Vinashin for d’Amico

The energy efficient design of two vessels, the 39,000 dwt Ice Class handysize tanker Cielo di Ulsan, and the 50,000 dwt product tanker High Trader, allow them to already meet IMO standards that will come into force in 2025.

With the addition of the two ships, the DIS fleet now controls through ownership, charters and joint ventures 51.83 double-hull tankers, with an average age of 7.6 years. It owns 25.33 vessels and charters another 26.50. The two eco-ships, worth a total of over $62 million, are a part of $755 million investment plan that DIS started in 2012 and which includes, to date, a total of 22 high performance vessels, 10 of which have already delivered.

Marco Fiori, CEO, d’Amico International Shipping S.A., says, “We have added two more ships of great construction quality to our young fleet, which are capable of offering our customers safety, efficiency and profitability.”

Both of these new tankers are under time charter contracts to two major international oil companies, one lasting 30 months and the other three years, managing to anticipate the extraordinary global demand in the transport of refined petroleum products, today favored both by the transfer of refineries (from the main consuming regions to oil production areas) and the decreasing of crude oil prices.

The 183m x 29m Ice Class Cielo di UIsan is equipped to operate in temperatures as low as -20°C. It will operate in routes in Northern Europe, the Arctic and the Northern Sea. This is the first model of a group of four ships that will join the DIS fleet, resulting from the joint work of the company’s engineers and Hyundai Vinashin.

The 183m x 32m High Trader is the sister ship of two other vessels already delivered to DIS. One of its selling points is that it can guarantee an average savings of 6 tons of fuel per day (with ship fully loaded and a constant speed of 14 knots) and consequently a 20% reduction in CO2 emissions. Moreover, the profitability of the ship is driven by its great commercial versatility: High Trader can carry up to nine different types of cargo during the same trip. Cielo di Ulsan and High Trader are equipped with systems for the treatment of ballast water so as to minimize the impact on marine ecosystems and comply with IMO3 and IMO2 requirements.

DIS has an extensive newbuilding program underway, with 12 new eco-ships on order, including three Handysize, three Medium-Range and six LR1, tankers under construction.

“This extremely positive moment on the market,” says Fiori, “and increasingly close relations with major oil companies and multinational manufacturers of vegetable oils, which request our ships more and more often, confirm that DIS has taken the right route. With the addition of other 12 eco-ships currently under construction by 2018, we will further consolidate our competitive position on the global shipping market that today already sees us among the leaders.”

 

 

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