Additional regulations on the implementation of sulfur cap are issued by MARINA

In order to enforce the International Maritime Organization’s (IMO) 0.50% fuel oil sulfur cap on domestic ships, the Maritime Industry Authority (MARINA) has released new regulations. Additional guidelines for the implementation, monitoring, and enforcement of Memorandum Circular No. SR-2020-06, which requires that all Philippine-registered ships operating in the domestic market adhere to the 0.50% per mass by mass (m/m) fuel oil sulfur content limit by January 1, 2025, are provided in MARINA Advisory (MA) No. 2024-35.

MA 2024-35 specifies that ships using heavy sulfur fuel oil are covered by MC SR 2020-06 thus mandated to shift to fuel oil with low sulfur content of 0.50% m/m or below, effective January 1.

Under MC SR-2020-06, MARINA allows alternative measures for compliance, such as the use of alternative fuel such as liquefied natural gas, installation of exhaust gas cleaning system, or compliant marine diesel oil that has sulfur content of 0.50% per m/m or less.

Ships already using distillates or blends may shift to fuel oil with 0.50% m/m sulfur content, according to MA 2024-35, and are required to accomplish a ship-specific implementation plan (SIP) to be attached to the ship’s Safety Management System Manual (SMS).

SIP refers to the ship’s transition plan in preparation for compliance with the use of low-sulfur fuel oil (LSFO). It forms part of documents to be audited by MARINA.

The SIP is mandatory for all ships that will change from heavy sulfur fuel oil to LSFO, stated MA 2024-35. The SIP should include risk assessment and management and this should be integrated in the ship’s SMS.

The survey and certification will be conducted by MARINA for domestic ships or by its recognized organizations for overseas ships.

Shipping companies will be required at all times to keep a record of fuel oil documentation issued by their Department of Energy (DOE)-accredited supplier.

The sulfur content of the fuel oil delivered direct to the ship or through fuel oil storage tank/facility of the shipping company should be documented through a Bunker Delivery Note (BDN) compliant with Regulation 14.5 of International Convention for the Prevention of Pollution from Ships (MARPOL) Annex VI as a standard document required by MARINA that contains information on fuel oil delivery.

The BDN should be kept safe within one year from the date of issuance.

The BDN should be accompanied by a representative sample of the fuel oil delivered, also known as MARPOL Delivered Sample, to be retained by the vessel/shipping company. Recognizing the inherent level of test variability for in-use and on-board samples, MARINA adopts the IMO’s maximum limit of 0.53% sulfur content for samples drawn on-board.

In case of non-availability of LSFO, the shipping company should submit a Fuel Oil Non-Availability Report duly certified by their supplier.

On information sharing on non-compliance, MA 2024-35 said the information of non-compliance of domestic ships and/or fuel oil suppliers should be reported to MARINA, copy furnished to the Oil Industry Management Bureau of the DOE.

For overseas ships, the report on non-compliance will be reported by MARINA or its recognized organizations to the IMO’s Global Integrated Shipping Information System Module of the MARPOL Annex VI.

MARINA may extend the compliance deadline based on the SIP timelines, but not to exceed five years. No extension of deadline will be allowed if there is no SIP submitted as of July 1, 2024.

Last April, MARINA gave domestic shipping operators a final notice to submit their SIP on June 30, 2024.

On fines and penalties, MA 2024-35 clarified that the “No sail condition until compliance” means that the ship cannot proceed to its next port of destination until the non-compliant fuel oil has been removed from the ship.

Under MC SR 2020-06, a company or person that violates or contravenes the circular, particularly by using fuel oil with more than the prescribed sulfur content, stands to face an administrative fine of P3 million plus suspension of the Authority to Operate.

MC SR-2020-06 is in compliance with IMO’s International Convention for the Prevention of Pollution from Ships (MARPOL Convention) Annex VI, which requires all ships in non-emission control area zones to limit the sulfur content of their fuels from 3.50% to 0.50% by January 1, 2020. The Philippines ratified MARPOL Annex VI in 2018.

The regulation applies to all ships, whether they are on international voyages between two or more countries, or on domestic voyages solely within the waters of a party to the MARPOL Annex.

The sulfur cap policy, also known as IMO 2020, aims to reduce the amount of sulfur oxides emanating from ships in order to gain health and environmental benefits for the world, particularly for populations living close to ports and coasts.

The policy is already being enforced on foreign-flagged ships and Philippine-flagged vessels plying international trade since January 1, 2020, in compliance with the global implementation schedule.

For domestic ships, MARINA has decided to implement the rule in January 2025 to help ease the cost impact on domestic shipping companies and give oil suppliers time to acquire their supplies of compliant fuels.

Tags: IMO, Marina, Regulations, Sulphur