1. PHASE – OUT OF SINGLE HULL TANKERS INTERTANKO LATIN AMERICAN PANEL
November 16, 2005
Miami Beach, Florida
Good morning

2. PHASE–OUT OF S.H. TANKERS
USA – OPA 90 unchanged/clear/simple
2010 drop date for all US ports
2015 final drop date for all offshore & lightering areas
IMO – many rule changes /2001/2003
Reg. 13G – initial clear/complex after amendments
Reg. 13H – restricts # of cargoes on SH tankers

3. REG. 13G/20 (as amended 2001/2003)
the ”25/30 years” criterion replaced with
a (similar to) OPA 90 phase-out type schedule
phase-out by ship type & ship delivery date
type 1 (pre-MARPOL) – out by end 2005
type 2 (PL/SBT) S.H. - out by end 2010 except when Administration allows until the 25th anniverssary but not later that 2015 (13G(7))
type 2 - DS/DB (as of 07/01/2001) – 25th anniverssary (pending Adminsitration approval; 13G(5))
type 3 (all tankers under 20K DWT) – as ship type 2
CAS – ships 15 years and over – survey planning compulsory (work with your Flag/RO well before due time)
BUT, 13G(8) gives Port State the right to deny entry

4. NEW REG. 13H/21 (amended 2005) ”heavy grade of oil” (HGO)
HGO is any oil with
density 900 kg/cub.m and over (at 15 Celsius) OR
kinematic viscosity 180 sq.mm/s (at 50 Celsiuis)
plus bitumen, tar and their emulssions
Application:
04/05/2005 in DH only for ships above 5,000 dwt
ship’s anniverssary date in 2008 in DB/double containment for ships between 600 dwt and 5,000 dwt

5. NEW REG. 13H/21 (possible) Exemptions
DS/DB (as was 12/4/2003) may transport HGO up to 25th anniverssary if Administration allows (13H(5))
SH tankers over 5,000 dwt may transport crude oil with density up to kg/cub.m up to 25th anniverssary if Adminsitration allows (13H(6)(a))
SH tankers between 600 dwt and 5,000 dwt may transport HGOs up to 25th anniversary if Administration allows (13H86)(b))
SH tankers or FPSO/FSU may transport/store HGOs in one country’s waters, if allowed (13H(7))
BUT Port States can deny entry of any of the above (13H(8))

6. INTERTANKO Service http://www.intertanko.com/phaseout/
phase-out calculator
implementation policies (Flag & Port States)
table with crude oil densities
list of Parties to MARPOL

7. 2 - 2015 or 20th anniversary which one is earliest
Flag / Port States
13G (5)
13G (7)
13G (8)(b)
13H (5)
13H (6)(a)
13H (6)(b)
13H (7)
13H (8)(b)
Australia Y1 N Y
Bahamas
N/A
Barbados 7
EU Member States
Greece
Hong Kong Y2
India
Japan Y3 - N4
Liberia
Marshall Islands
Mexico
Panama Canal Authority
Panama Maritime Authority
case by case basis
People's Republic of China
Republic of Korea N5
Romania
Singapore
United States
1 – not later than 2015
or 20th anniversary which one is earliest
3 - Japanese flag tankers until 2015 only if they have DB or DS
4 – SH foreign flag tankers until 2008; DB or DS foreign flag tankers until their 25th anniversary
5 – Korean and foreign flag tankers will not be allowed to enter Korean ports with HGOs as from 5 April 2006

8. DH Tankers - Age Distribution
Source: Joint Tanker Project

9. Tanker fleet double-hull development%
Source: Fearnleys/INTERTANKO

10. Tanker incidents and age development%
Source:LMIS/Informa/INTERTANKO

11. Tanker pollution and age development
Years
000 ts
Source:LMIS/Informa/INTERTANKO

12. MARPOL Annex VI Regulations for
the Prevention of Air Pollution from Ships
INTERTANKO LATIN AMERICAN PANEL
November 16, 2005
Miami Beach, Florida
Good morning

13. RATIFICATION Ratification by:
Ratified by 22 Governments that have a combined tonnage over 50% of World tonnage
ENTERED INTO FORCE on MAY 19th, 2005
Ratification by:
Azerbaijan, Bahamas, Bangladesh, Barbados, Bulgaria, Cyprus, Denmark, Finland, Germany, Greece, Japan, Liberia, Marshall Islands, Norway, Panama, St. Kitts and Nevis, Samoa, Singapore, Spain, Sweden, United Kingdom, Vanuatu.

14. IMPLEMENTATION Mission impossible?
All Ships are to comply irrespective of Flag State – Article 5(4) of MARPOL Convention – “no more favourable treatment”
But no obligation for ”non party” Governments
Many major ports still ”non-parties” (e.g USA, The Netherlands, etc.)
Bunkering in a “non party” port followed by a call in a “party” port – source of trouble out of ship’s control
Bunker Delivery documentation and Sample – here is the difficulty – FSI 13 & MEPC 53

15. Certification & Survey under Annex VI
Certification application: any ship of 400 GT and above
New ships – before enter into service (built on or after 05/19/2005)
Existing ships – not later that the first scheduled dry-docking but not later than 05/18/2008
Survey
Intial
Periodical (5 years)
Intermediate
Annual

17. MARPOL Annex VI Scope: Control of exhaust gas emissions from ships
Regulations for limiting/eliminating emissions of:
Ozon-depleting substances
Nitrogen oxides (NOx)
Sulphur oxides (SOx)
Volatile organic compunds (VOC)
Shipboard incinerators
Additinal requirements for:
Reception facilities
Fuel oil quality

18. Ozone-depleting substances
Any deliberate emissions shall be prohibited
New installation containing HCFCs (hydrochlorofluorocarbons) are permitted until January 1st, 2020
These substances, when removed from ships, must be delivered to reception facilities

19. Nitrogen Oxides (NOx)
New engines (i.e. power > 130 kW, installed on ships with buildng contract as from 01/01/2000) need to be compliant
The NOx emission is limited to 17 g/kW h for engines operating at max. 130 rpm but reducing to 9.8 g/kW h for 2000 rpm and more. Between these revs the limit is designated by equation:
45 * n(-0.2) g/kW h
Existing engines can be run, but
Major Conversion:
engine replacement after January 1st, 2000
substantial modification as defines in the NOx Tech. Code
the MCR of the engine is increased by more than 10%

20. Technical File
Identification of components, settings and operating values which influences NOx
Identification of the full range of allowable adjustments of alternatives for the components
Full records of the engine’s peformance
Onboard NOx verification method

21. Sulphur Oxides (SOx) Sulphur content of bunkers should not exceed
World wide trade %
Baltic Sea (from 05/19/2006) %
North Sea (from 10/2007 or 08/2007) 1.5%
Alternative exhaust gas cleaning on:
funnel
IG scrubbers

22. Shipboard Procedures for SECAs
Plan in advance for entry and enter commencement date/time of preparation in Logbook together with bunker type quantities onboard.
Logbook record when entry requirements met and when ship enters SECA - remember Lat. & Long., date/time, together with bunker figures for each tank.
Maintain daily record of bunker used and quantification of bunker tanks whilst in SECA.
DO NOT COMMENCE SHIFT TO HIGH SULPHUR FUEL UNTIL EXIT FROM SECA. Log existing conditions for bunkers and Lat. & Long. with date/time.

23. ALTERNATIVES for SECAs
Action
Advantage
Disadvantage
Timely switch over
No equipment
Excessive use of LSF
HFO & LSF in segregated tanks
Rapid change over
Lower LSF consumption
Retrofitting needed
Use of scrubbers
Reduction 90% of SOx
Use of HFO only
Technology yet to be approved
Ship to demonstrate no environmental impact
Initial costs
Sludge deposits
Onboard blending
Keeps costs down
Simpler tank arrangement
Liability of compliance on the ship
Need for a blending plant
Emission Trading
If often operating in SECAs
Use of HFO
System not in place
Questionable whether allowed for a long period
ALTERNATIVES for SECAs

24. Volatile Organic Compounds (VOC)
Specific control of VOC emissons in ports and terminals
Tankers to have and use vapour collection systems (return lines) at the loading ports (VOC return manifold and operation standards in MSC/Circ.585)
Ports/terminals to provide reception facilities for VOCs
So far, very few terminals have such facilities
New technologies

25. Incinerators
Incinerators installed after Jan. 1st, 2000 to meet regulations and must be certified to meet the specifications in MEPC Resolution 76(40) (Appendix IV of Annex VI).
Each incinerator must have a manufacturer’s operations manual.
Crew responsible for the incinerator operation shall be trained and follow the operation manual.

26. Operation of Incinerators
The following substances are prohibited from incineration:
Annex I, II and III cargo residues and related packing material.
PCBs.
Garbage as defined by Annex V containing heavy metals.
Petroleum Products containing halogens.
PVC can only be incinerated in type approved incinerators.
Flue gas temperatures shall be monitored and not less than 850 deg C for continuous feed and reach 600 deg C within 5 minutes for batch feed.

27. Fuel Oil Quality
“Fuel oil shall be blends of hydrocarbons derived from petroleum refining”
“Fuel oil shall be free from inorganic acid”
“Fuel oil shall not include any added substance or chemical waste which either:
jeopardises the safety of ships or adversely affects the performance of the machinery, or
is harmful to personnel, or
contributes overall to additional air pollution”

28. Fuel Oil Quality Bunker Delivery Note (BDN)
Becomes a Statutory document
Must be kept on board for 3 years for inspection and a copy may be taken for further examination by PSC.
Must contain all data required by Appendix V
Name and IMO number of vessel
Port
Date of Commencement of delivery
Details of fuel oil supplier
Product name, quantity , Density at 15 0C and Sulphur content % m/m
A declaration that fuel supplied meets Regulation 14 and 18 requirements

30. Declaration on Fuel Oil Quality
bunker suppliers should make the certification in the BDN in the column provided for supplier’s confirmation, as follows:
“We certify that the bunker fuel oil delivered meets the requirements of regulations 14 and 18 of Annex VI of MARPOL 73/78.”

31. Fuel Oil Quality - Sampling
A sealed sample meeting the requirements in associated guidelines has to be supplied to the ship by the bunker supplier
For each individual BDN a sample has to be taken at the vessel’s bunker receiving manifold. (see procedure in associated guidelines) – ISM Manuals !!??
The sample label has to be signed by both the bunker supplier’s representative and the vessel’s Chief Engineer.
The sample size shall be not less than 400 mls
The sample is not to be used for any commercial purpose
The sample is to be retained on board for at least 1 year for inspection by PSC as required

32. Shipboard Procedures for BDN and Samples
Adequate bunker manifold location for sampler attachment
External safe storage location for samples for 1 year period
Log book for sample retention and custody transfer
Safe storage for BDNs and other documents relating to bunkering onboard

33. Bunker Emission Clause for time charters
Owners warrant that the vessel shall comply with the emission control and other requirements of Regulations 14 and 18 of MARPOL Annex VI and any other laws or regulations relating to bunker specification and bunkering procedures applicable in any areas to which the vessel is ordered.
Charterers warrant that they will supply bunkers:
of sufficient quantity and quality to enable the vessel to meet the emission control and other requirements of Regulations 14 and 18 of MARPOL Annex VI and any other laws or regulations relating to bunker specification and bunkering procedures applicable in any areas to which the vessel is ordered, and
in accordance with the specifications in the latest version of ISO 8217 as at the time of supply and any other specifications contained elsewhere in this charter party.
Charterers further warrant that all bunker suppliers shall comply with the requirements of MARPOL Annex VI and MEPC96(47) in respect of sampling and the provision of a bunker delivery notes and, where bunkers are supplied in a state where MARPOL Annex VI is in force, that suppliers shall be registered in accordance therewith.

34. Port State Control IMO Guidelines for PSCO adopted at MEPC53
Initial inspections and Primary survey parameters – then “Clear Grounds” required for in-depth inspections
“In depth” inspection parameters
Detainable deficiencies
Non-Party ship inspections

35. Onboard certificates & documentation
EIAPP Cert. And Technical File for each D/E
Record of Engine Parameters
Manual for onboard direct measurement and monitoring (if applicable)
Official Log Book
Operation manual of Vapour collection system
Operation manual for Incinerator
Bunker Delivery Note - Ship’s Note to Flag States – reports on non-compliance

37. INTERTANKO Guide to bunkering of ships for the purposes of Annex VI to MARPOL, June 2004
ANNEX VI OF MARPOL - REGULATIONS
NOx Emissions; Regulation 13
SOx Emissions; Regulation 14
Fuel Quality requirements - Regulation 18
The Bunker Delivery Note (BDN)
Bunker Sampling Procedure and Method to comply with Regulation 18
The Bunker Manifold Construction and Location
Prescribed sampling methods or system
Method for sub-sampling for Retention sample
Retention Sample Storage
NECESSARY ALTERATIONS TO MEET ANNEX VI REQUIREMENTS
Pre-bunkering meeting and check list
Sampling and Measurement procedures
Post-bunkering documentation process

38. MARPOL Annex VI future developments/amendments
MEPC 53 – July 2005 decided to open Annex VI for revision
Possible revisions on:
World and SECA sulphur cap
New SECAs
Lower NOx limits
Possible new requirements:
Include limits for PM
Require specific technologies to contain VOCs

39. Regional Requirements
EU Sulphur Directive
2000 – if used, MGO/MDO max. 0.2% sulphur content
2010 – as Annex VI + use of 0.1% sulphur content fuels for ships ”at berth”
EU to promote its policies to IMO but will go its way if IMO too slow or not receptive to new proposals
USA
Federal - EPA
State legislations