The 2020 Sulphur Cap –Loss Prevention PerspectiveJune 2021 Hosted by Neale Rodrigues, Divisional Director, Loss Prevention, Britannia: •Jacob Damgaard, Associate Director, Loss Prevention, Britannia •Christian Bækmark Schiolborg, Manager Marine Environment, BIMCO •Wing Wai, Divisional Director, Claims, Britannia SPEAKERS Jacob Damgaard The 2020 Sulphur Cap –Loss Prevention PerspectiveJune 2021 Introduction ▪The global fuel sulphur limit of 0.50% (VLSFO) entered into force on 1 January 2020 ▪Does not apply to ECA areas where Sulphur limit remains at 0.10% ▪Carriage ban for HSFO as of 1 March 2020 ▪Ships equipped with Exhaust Gas Cleaning Systems (scrubbers) are exempted Use of VLSFO –What have we seen? ▪Issues relating to high Total Sediment values -stability ▪Exceedance of the sulphur content ▪Discrepancies between the stated sulphur content on the BDN and Members’ own fuel quality analysis ▪Reported increase in sludge accumulation and clogged fuel oil filters ▪Experience with high amounts of catalytic fines resulting in increased wear of cylinder liners, broken piston rings or other components Use of VLSFO –Any Conclusions? ▪Claims largely involve different circumstances ▪Difficult to determine a conclusive trend ▪Makes it all more complex for Members ▪Requires Members to take appropriate operational steps to mitigate risks How Can Risks Be Mitigated? ▪Perform Due Diligence -When selecting new bunker supplier ▪Conduct Fuel quality analysis -ISO8217 and maybe additional GC/MStesting ▪Fuel Management -To be robust. Include training for engineers to understand the characteristics and behaviour of VLSFO ▪Retain Representative Samples ▪Commercial sample -ISO 1373:2020 requires the representative samples to be taken at the ship’s manifold ▪MARPOL Sample -Not to be removed without prior authorisation of a competent authority If The Fuel is Non-Compliant? ▪Report and involve proper authorities ▪FONAR –IMO Resolution MEPC.320(74) provides guidance. Not an exemption!! ▪Onboard treatment –To be done with extreme care ▪Consult experts, possibly including the engine maker ▪Be aware of MARPOL sample Marine fuel: Impact of IMO2020 and future developments Britannia P&I Loss Prevention Webinar -The 2020 Global Sulphur Cap –Impact And Future Developments 22 June 2021 Christian Bækmark Schiolborg Manager, Marine Environment What does BIMCO do? Secure a level playing field for the global shipping industry and to deliver practical tools, advice and guidance to its members across the main shipping sectors. BIMCO works to promote and secure global standards and regulation for the maritime industry. How: •The world leader in developing standard contracts and clauses in shipping •Speak up on behalf of members to achieve workable and realistic global regulations •A range of concrete services directly supporting members business.