IBIA Seeks 'Achievable' Ship Fuel Sulfur Targets
The International Bunker Industry Association (IBIA) will continue to lobby regulators to set achievable ship fuel sulphur targets. Speaking at the association’s seminar “Asian Growth: Global Recovery? How should London respond to the challenge?" at the Baltic Exchange during London International Shipping Week, former IBIA chairman Nigel Draffin outlined the key issues facing the bunkering sector.
Noting that shipowners need to cope with the impact of European and North American Emission Control Areas from 2015 and the European adoption of a 0.5% sulphur limit from 2020, Nigel Draffin gave an overview of the alternatives to heavy fuel oil available to the industry.
Looking at how the shipping industry is reacting to environmental legislative changes Nigel Draffin said: “Buyers will take the least cost route and suppliers will only respond to demand. Port authorities will look for competitive advantage whilst laboratories and surveyors will have to learn new skills. IBIA will continue to lobby and persuade regulators to set achievable targets and give us flexibility in how we meet those targets.”
According to IBIA, bunker fuel growth looks set to grow at about 1.5% per annum as China, Hong Kong and other Asian countries continue their growth in marine fuel sales. Whilst Singapore remains dominant in the supply of bunkers, other Asian countries are eating into its market share. However, bunker quality remains a big issue as suppliers look to reduce costs.
Nigel Draffin predicted that all bunker growth will be in Asia, the Middle East and Africa whilst sales in the Mediterranean, Europe and South America will be flat and North America will shrink. London and the UK have seen a drop in the number of bunker brokers based there, but the former IBIA chairman noted that the city “remains the powerhouse of international shipping commerce, with an unrivalled core of technical, legal and commercial shipping expertise.”
The sell-out seminar was attended by 80 shipowners and bunker industry professionals.
The products and services herein described in this press release are not endorsed by The Maritime Executive.