---

Regulations for the restriction of air pollution from ships will mean extra costs and responsibilities for shipowners, a leading expert at UK-headquartered BMT Marine & Offshore Surveys Ltd has warned.

Speaking at a London insurance market seminar organised by the marine consultancy, principal surveyor Gerry Williams said: "Burning ships' fuel in an environmental manner is a huge challenge."

Mr Williams said that fuel technology is a discipline, and a science, on its own. Most shipowners currently use a fuel mix containing on average worldwide 2.6% sulphur, but Marpol Annex VI regulations specify a reduction in July 2010 for ships to 1%, and in 2015 to 0.1% in so-called "Environmental Control Areas," or ECAs. The control areas are the English Channel, North Sea and Baltic Sea. Ships can still burn 1.5% sulphur in the Mediterranean and potentially 4.5% outside the European Union.

The US has similar legislation pending, which would create control areas 200 nautical miles off its coastlines. A control area 24 nautical miles off California is already in force and has its own separate controls, one of which sets all fuels to or below 0.1% by January 1, 2012.

"Potentially, this could result in some ships carrying four different fuel types at any one time. The complex changeovers will inevitably increase the opportunity for errors which in turn may lead to costly claims," explained Mr Williams.

In order to comply with the legislation, a ship's officer will have to demonstrate in his record-keeping that he has changed fuel in sufficient time before crossing into a control area. The changeover can be done in approximately one hour, but if it is done too quickly Williams says there is a danger you can "gas up the engine." A rapid change of temperature could also cause thermal shock or seizure of the fuel pumps, Williams added.

Over the next few years a raft of legislation limiting sulphur in marine fuels to 0.1% will come into force. This includes EU Sulphur Directive (2005/33/EC) for most ships ‘at berth' in EU ports (1/1/2010), CARB Regulated California Waters regulations, mandating the use of ISO8217: 2005 DMA or DMB grade fuels in main and auxiliary engines and auxiliary boilers (1/1/2012) and MARPOL Annex VI for fuel oils to be used inside Emission Control Areas (1/1/2015).

Currently, according to a survey, the average sulphur content in heavy fuel oil is 2.46%, although some environmentally conscious owners already have a sulphur limit of 1.5% in their specification. Yet there is little experience around of the likely effects of using 0.1% sulphur, said Mr Williams, adding that this experience may come at a premium as this legislation comes into force.

Turning to other fuel concerns, Mr Williams said that what was described as 'bad fuel' in casualties was more to do with poor handling, rather than sub-standard fuel. In one example, a chief engineer experiencing severe purification problems, such as heavy sludging, forced through the out of specification fuel rather than reporting a problem, and as a result wrecked the engine.

Poor management of even above average specification fuel could cause a very costly failure. In fact, since 2001, BMT surveyors had dealt with at least 30 instances of engine damage caused by fuel problems related to catalytic fines. The problem is increasing and is likely to get worse with the additional demands for low sulphur fuels, according to BMT Marine. Each of these casualties required a complete renewal of pistons, liners and injectors, at a cost of $1m to $3m each. One resulted in a vessel failing to keep up with a convoy and falling victim to Somali pirates.

Mr Williams also referred to the problem of unscrupulous suppliers adding waste to their product, inflicting serious damage. Chemical and other wastes had found their way into fuel selling at $500 a ton. On one occasion fuel was contaminated by waste from the cosmetics industry. "The engineer surveyor had a difficult time explaining to his wife when he came back from survey why he smelt of perfume when he usually smelt of the engineroom!" said Mr Williams amid laughter.

Calling for strict controls by shipping companies over their use of fuel, he urged that they institute or improve fuel management programmes to ensure sampling before use and regular inspection of handling. Mr Williams said that exemplary care was shown by managers of the Maersk fleet, which includes one of the world's biggest containerships, the Emma Maersk.

He said the company does not allow its ships to use any fuel until thoroughly analysed and confirmed by the technical management ashore that it can be used. He also praised the new Lab-on-a-Ship concept developed by Danish company NanoNord and classification society Lloyd's Register, which checks the fuel and lubes before use.

BMT Marine & Offshore Surveys will be running further CII accredited seminars in New York, Greece and Hong Kong in the first half of 2010. These will address topics such as lay-up problems, new bunker fuel regulations, polar ice operations as well as the Chinese newbuilding and components market.