A container vessel docks at Cai Mep-Thi Vai Port in Ba Ria-Vung Tau Province. From January 1, 2020, ships, both international and domestic, must use 0.5% sulphur limit fuels

Accordingly, all sea transport firms must reduce the maximum amount of sulphur in their fuel from 3.5% to 0.5% to reduce emissions. This is beneficial for the environment as it helps reduce sulphur dioxide emissions from ships.

Talking to the Saigon Times, Nguyen Vu Hai, deputy director of the Vietnam Register Department, noted that the department had informed Vietnamese shipping enterprises of the new regulation, giving them enough time to prepare for the change.

He confirmed that both international and domestic ships must meet the requirement. Any ship found to have excessive sulfur in its fuel, beyond the prescribed limit, will be detained by port authorities and the changes will have to be made before they can continue their journeys.

The department pointed out that ship owners are responsible for executing the new regulation. Therefore, enterprises renting ships must check that ship owners are complying with the regulation. For chartered voyages, ship owners are responsible for supplying fuels and recording all necessary information and evidence related to the use of fuels with 0.5% sulphur content.

Switching to clean fuels at a higher cost also drives up freight rates. IMO estimated that some 70,000 ships are affected by this new regulation, costing an additional US$50 billion per year.

Dao Trong Khoa, chairman of T&M Forwarding Company, noted that when switching to 0.5% sulphur marine fuel oil, the surcharge can increase by some US$100 per TEU (depending on the calculation of each shipping line). When carrying out the switch, fuel costs will make up 10%-15% of total shipping revenue. In the short term, the revenues and profits of importers and exporters will be greatly affected. SGT

Le Anh

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