Thu 10 Jul 2008, 08:02 GMT

Shipping lines sign up to low-sulphur initiative


Cargo vessel operators agree to take part in San Pedro Bay low-sulphur incentive program.



A number of shipping lines have already agreed to take part in the San Pedro Bay Ports' incentive program, which aims to reduce ship emissions within the vicinity of the ports of Long Beach and Los Angeles.

The new Vessel Main Engine Fuel Incentive Program, which began on July 1st, will pay vessel operators for the extra cost of switching to cleaner-burning low sulphur marine fuel (0.2 percent sulphur or less) within the San Pedro Bay area in an initiative which aims to reduce vessel emissions.

Vessels participating in the project will use low sulphur marine gasoil (MGO) in their main engines during their approach to or departure from the ports of Long Beach and Los Angeles, out to 20 or 40 nautical miles from Point Fermin. The ports will provide funding to cover the cost differential between the cleaner burning low-sulfur fuel and the heavy bunker fuel typically used.

According to Port of Los Angeles Executive Director Geraldine Knatz, the number of participating companies has increased significantly since the end of May, when only two shipping lines had committed to the program. Knatz credited Michele Grubbs of the Pacific Merchant Shipping Association for promoting the voluntary Clean Air Action Plan initiative.

The 12 participating shipping lines represent 119 of 247 ship calls, Knatz said.

The one-year program will come to an end on June 30th 2009, unless extended by the harbour commissions of Long Beach and Los Angeles. The California Air Resources Board (CARB) main engine regulation is then expected to come into effect after the incentive programme expires. Long Beach has budgeted $9.9 million a year for the project whilst Los Angeles has allocated $8.6 million.

To receive the incentive, vessel operators must also be complaint with the Vessel Speed Reduction Program, where ships voluntarily slow down to 12 knots near the harbor, thereby reducing their fuel consumption and emissions.

In order to be eligible for the incentive, vessel operators must first enroll in the program and register the specific vessels that will be participating in the project. Enrollments will be accepted at any time, whilst the program is in effect.

The various enrollment forms can be found at the San Pedro Bay Ports Clean Action Plan website, which is located at www.cleanairactionplan.org.

All documents should be submitted to the ports by email to shipfuel@cleanairactionplan.org. Vessel Operators will be notified when they have been enrolled in the program.


Arctic Tern vessel. Wallenius Wilhelmsen takes delivery of first methanol-ready Shaper Class vessel  

The dual-fuel Arctic Tern will enter service on the Asia–Europe trade almost immediately.

Al Muraykh vessel. Hapag-Lloyd signs shore power agreement with Hamburg Port Authority  

Deal commits the carrier to using onshore power supply at all Hamburg terminals.

Dorthe Karin Bendtsen, KPI OceanConnect. KPI OceanConnect reports 21% rise in pre-tax earnings for 2025/26  

Marine fuel firm delivers 13 million tonnes and expands carbon markets capabilities amid geopolitical turbulence.

VTTI logo. VTTI Dalian completes first large-scale 'green methanol' vessel loading  

Cargo to be supplied as marine fuel in Shanghai.

Steff Tan, Oilmar. Oilmar appoints Steff Tan as marine fuels trader in Singapore  

New hire's background spans bunker operations, logistics, commercial trading, marketing, and business development.

Feng Da Hai vessel. Cosco Shipping adds methanol-ready bulk carrier Feng Da Hai to fleet  

The 64,000-tonne vessel is equipped with a methanol fuel system for future low-carbon operations.

Oilmar office in Dubai. Oilmar welcomes summer intern to Dubai branch  

Arpit Aryan will rotate across the bunker fuel trading, finance and operations departments.

Aerial view of the Dubai skyline. Oilmar takes on trading and finance intern in Dubai  

New intern to rotate across trading, operations and finance teams.

Seaspan and Maersk signing. Seaspan and Maersk deepen fleet efficiency collaboration with $75m upgrade programme  

Retrofit package for four 13,000-teu vessels includes installation of shaft generator to reduce auxiliary engine fuel consumption.

European Parliament building in Brussels. EU Parliament vote on soy biofuels could expose bloc to $5.6bn a year in trade sanctions  

MEPs reject regulation that would have phased out soy biofuels, risking WTO retaliation penalties.