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by crew members without the knowledge of the shipowners. However, except
for cases where the OWS has been bypassed deliberately, P&I Clubs have a
discretionary right to cover some or all liabilities and costs incurred in relation
to a breach of MARPOL if their Board or Committee of shipowners deems it is
appropriate to do so, taking account of all the circumstances.
Sulphur emission control areas (SECAs)
The number of areas that limit sulphur emissions as a result of consuming ship
fuel has expanded significantly in recent years. For example, since 2015, ships
sailing in the North Sea, Baltic Sea and North American waters are required
only to consume fuel with a sulphur content of 0.1% or less. SECAs now cover
or are planned to cover many parts of the world.
The violation of sulphur emission requirements gives rise to numerous
potential costs for shipowners. Not all of them will necessarily give rise to
insurance costs – however, they will create operational costs for shipowners.
So, deviation and delays could be a concern – extra thought will need to be
given about the voyages that a vessel may be required to perform under a
charter party if they involve calling at a port in a SECA or passing through SECA
waters. Off-spec bunkers could be another concern. A specification, in the
form of maximum sulphur content, increases the need to ensure that bunkers
are reliably sourced and that their specification is accurately described in
charter parties. There is also an increased risk of charter party disputes,
due to the added complication of ensuring that low sulphur fuel – both its
availability and the vessel’s capacity to store and consume it – is adequately
dealt with in the charter party terms so as to avoid costly risks such as retro-
fitting the ship.
My final point on this issue relates to fines for the violation of sulphur emission
requirements. The level of fines depends on the jurisdiction in which the
violation takes place or in which it is prosecuted. However, as examples,
Britannia has recently seen fines imposed in East European countries of
between about Euros 12-17,000 for the consumption of non-compliant fuel.
Club cover for such fines is a matter of discretion for the Club’s Board or
Committee depending on all the circumstances of the case.
Ballast Water Management (BWM)
BWM is another example of the way in which shipowners are increasingly
expected to act as a “good citizen”: this time aimed at preventing the
introduction of water borne invasive species.