In an effort to improve the environment, the International Marine Organization (IMO) in 2011 took an important step towards addressing the shipping industry’s carbon footprint, setting targets for greenhouse gas emission cuts. Since then, the IMO has been making further amendments through the years with the aim of moving towards a carbon neutral future by 2050.
The introduction of these IMO regulations can be considered as one of the biggest challenges faced by the bunkering industry at present. Therefore, it is vital to have a thorough understanding of the IMO regulations and what it entails.
Targets Of IMO 2030 Towards A Carbon Neutral Future
IMO adopted the initial mandatory strategy on the reduction of GHG emissions from shipping in April 2018. This policy framework outlined major objectives,which included working towards phasing out GHG emissions from shipping completely as soon as practicable in this century, and cutting yearly greenhouse gas emissions from international shipping in half by 2050 compared to their level in 2008. Furthermore, lowering the carbon intensity of international shipping (to lower CO2 emissions per transport task) by at least 40% by 2030 and working toward a reduction of 70% by 2050, compared to 2008 was also seen as an initial target.
Instead of putting a limit on the industry’s overall emissions, the IMO 2030 targets on carbon intensity, or the amount of carbon produced for every piece of freight moved around the world, thus aiming to aid the shipping industry’s decarbonization efforts, before moving on to the more ambitious goal of reducing the industry’s total emissions in the years leading up to 2050.
Challenges Faced by the Marine Bunkering Industry due to IMO Regulations
With the established IMO 2020 regulations requiring shippers to switch to low-sulfur fuels, three main strategies had to be met in order to complete it.
- Run on low-sulfur fuels
- Install scrubbers or systems for cleansing exhaust gasses.
- Switch to dual-fuel engines or liquid natural gas (LNG) vessels.
The ship owners have to spend more to utilize low-sulfur fuels in order to comply with these standards. Additionally, smaller business credit lines frequently find it challenging to keep up with the high prices of the new very low sulfur fuel oil (VLSFO) blends. With the usage of low and very low sulfur fuel potentially causing system and engine damage, ship managers are also seeing the increase in operating costs as a huge challenge for them to continue with the bunkering services. Therefore, refineries will need to find cost-effective ways to successfully resolve these issues while also finding ways to increase the production of low sulfur bunker fuels on time in order to meet the demand of the current market.
Winson Oil working Towards Overcoming Marine Bunkering Challenges
The largest international oil trading hub in Asia, Winson Oil, began operating in the Global Marine Bunkering sector in 1998 and has seen significant growth in recent years, covering areas from South Pacific Ocean, Indian Ocean, Atlantic Ocean, to Peruvian fishing areas.
With an annual bunkering volume of more than 15 million MT, Winson Oil is well-known among its clients, which include significant fisheries in the United States, Japan, Korea, China mainland, and Taiwan, as well as industry partners. We were able to develop into one of the most extensive bunkering corporations because of this business network.
Winson Oil is always looking into new initiatives and making improvements to its bunkering facilities so that it can meet the challenges that lie ahead.
- Making a Marine Bunkering Station network (MBS)
Winson Oil has invested heavily in assembling a sizable fleet of ocean-going ships that are placed in close proximity to areas where its clients are. When our customers need our services, these vessels provide transportable fuel storage with refilling capabilities that can also follow or travel to new sites. This marine bunkering station was established to meet the needs of the various fishing grounds, thereby ensuring that each major fishing ground is supported by one of Winson Oil small tankers. We are able to meet our clients’ refueling requirements in a timely manner so they may make the most of their operational time at sea. This method can be thought of as a dependable and efficient way to refuel in order to face future challenges.
- Employing the MBS 3S shuttle supply system
Winson Oil also implemented a fuel shuttling system where it sourced refined oil products globally, buying in bulk volume, and shipping them to our fleet of ocean-going vessels, ensuring that the vessels are adequately stocked with supplies and minimizing any downtime. This was done in order to achieve our motto of catering to our customers needs, which involved a continuous presence in the oceans where our customers are located.
As traders, we offer much more than fuels; we offer solutions and intelligence. It is our duty to support our partners as they make the switch to sustainable shipping and navigate the accompanying difficulties. Numerous prominent fisheries in Asia are choosing these cutting-edge marine bunkering services as their preferred option. They rely on our efficient oil supply to sustain their enterprises globally while also attaining cost-effectiveness.
To learn more about our marine bunkering facilities, visit Winson Oil on marine bunkering.