MEMBER ALERT Shipowners Claims Bureau, Inc., Manager One Battery Park Plaza 31 st Fl., New York, NY 10004 USA Tel: +1 212 847 4500 Fax: +1 212 847 4599 www.american-club.com American Club Member Alert – Ju ly 1 , 2019 1 JULY 1, 2019 UPDATED INTERNATIONAL CHAMBER OF SHIPPING (ICS) GUIDANCE ON 2020 GLOBAL SULFUR CAP The ICS has today issued the attached updated guidance document on compliance with the 2020 global sulfur cap. Members may be interested in reviewing its contents. Guidance to Shipping Companies and Crews on Preparing for Compliance with the 2020 ‘Global Sulphur Cap’ for Ships’ Fuel Oil in Accordance with MARPOL Annex VI UPDATED 1 July 2019 Supported by The International Chamber of Shipping (ICS) is the global trade association representing national shipowners’ associations from Asia, the Americas and Europe and more than 80% of the world merchant fleet. Established in 1921, ICS is concerned with all aspects of maritime affairs particularly maritime safety, environmental protection, maritime law and employment affairs. ICS enjoys consultative status with the UN International Maritime Organization (IMO). Guidance to Shipping Companies and Crews on Preparing for Compliance with the 2020 ‘Global Sulphur Cap’ for Ships’ Fuel Oil in Accordance with MARPOL Annex VI Published by Marisec Publications 38 St Mary Axe London EC3A 8BH Version 1 September 2018 Version 2 January 2019 Version 3 July 2019 Tel +44 20 7090 1460 Email publications@marisec.org Web www.ics-shipping.org © Marisec Publications 2019 While the advice given in this Guidance has been developed using the best information available, it is intended purely as guidance to be used at the user’s own risk. No responsibility is accepted by Marisec Publications or by the International Chamber of Shipping or by any person, firm, corporation or organisation who or which has been in any way concerned with the furnishing of information or data, the compilation, publication or any translation, supply or sale of this Guidance for the accuracy of any information or advice given herein or for any omission herefrom or from any consequences whatsoever resulting directly or indirectly from compliance with or adoption of guidance contained therein even if caused by a failure to exercise reasonable care. Guidance to Shipping Companies and Crews on Preparing for Compliance with the 2020 ‘Global Sulphur Cap’ for Ships’ Fuel Oil in Accordance with MARPOL Annex VI Supported by Compliance with the 2020 ‘Global Sulphur Cap’4 Introduction This ICS Guidance was first issued in September 2018 and was updated in January 2019 to take account of decisions at International Maritime Organization (IMO) committee meetings. This current version has been updated after the IMO Marine Environment Protection Committee (MEPC) in May 2019 and the IMO Marine Safety Committee (MSC) in June 2019. From 1 January 2020, in accordance with MARPOL Annex VI 1 , the sulphur content of fuel oil used on board commercial ships trading outside sulphur Emission Control Areas (ECAs) 2 must not exceed 0.50% m/m. The 0.50% sulphur limit is a significant reduction from the current global limit of 3.50% m/m which has been in place since 2012. The worldwide implementation of this important new IMO requirement – referred to in this Guidance as the ‘Global Sulphur Cap’ – therefore represents a regulatory game changer. Apart from the significant additional cost of compliant fuel, implementation will be far more complex than for the previo