Barriers to Alternative Transportation

Fuels: IMO 2020 Briefing

SUBMITTED BY-

GROUP- 4
Date
Christina Cherian- MM22GL093
Parth Shah- MM22GL095
01-03-2023
Kaushil Garodia- MM22GL096
Sreenidhi Vidyasagar- MM22GL098
Course title
Supply Chain and Sustainability
INTRODUCTION

IMO 2020 which is set by International Maritime Organization, regulation to reduce the emissions of Sulphur
oxide (Sox) from the ships which was first came in effect in 2005. The main aim of this regulation was to
reduce the use of Sulphur oxide in ships from 3.50% m/m which was the previous limit to 0.50% m/m in all the
ships regardless of the country they are operating. The introduction of IMO 202 in maritime sector is one of the
more significant changes that were introduced in the history.

This was done its negative impact on the environment by using low Sulphur fuels like marine diesel oil or
marine gas oil which will lead to improved air quality etc. lowering the use of Sulphur oxide will also lead to a
decrease in air pollutants like nitrogen oxide etc.

The maritime sector has largely embraced the IMO 2020 legislation, and its implementation has been mainly
effective. However, there have been some issues with low-Sulphur fuel availability and cost, as well as worries
about how scrubber systems may affect the environment.

CURRENT STATUS OF IMO EMISSIONS REGULATION

The International Maritime Organization (IMO) is a specialized UN organization in charge of overseeing

worldwide shipping regulations. With the aim of cutting emissions from shipping by at least 50% by 2050
compared to 2008 levels, the IMO has set aggressive targets to do so. A large reduction in the sulfur content of
marine fuels is also required under a new standard established by the IMO called IMO 2020.

The IMO 2020 standard, which went into effect on January 1, 2020, lowers the previous maximum for sulfur
content in marine fuels from 3.5% to 0.5% by weight. The regulation's goal is to lessen ship emissions of sulfur
oxide, which are a substantial source of air pollution and have a negative impact on both human health and the
environment.

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Some experts have compared the implementation of IMO 2020 to the year 2000 of ocean shipping because of
its substantial effects on the shipping sector. Low-sulfur marine fuel prices have significantly increased as a
result of the law, and demand for other alternative fuels including liquefied natural gas (LNG) and methanol
has also surged.

IMPACT OF IMO 2020 SHIP EMISSION REGULATION

It is critical to comprehend the rationale for the passage of these new laws and the impact IMO 2020 will have
on the international maritime industry and the countless lives it will save. Sulphur oxides (SOx) are colorless
and suffocating. VLSFO reduces vessel sulphur oxide emissions, improving global health and the environment.

Ports and coasts will experience this change more. Airborne SOx residues cause significant pulmonary and
cardiovascular illnesses. Acid rain from sulphur oxide emissions harms crops, forests, and marine life. Ocean-
going vessels contribute 90% of transportation sector sulphur emissions despite using 7% of fuel. VLSFO
produces less smoky air, reducing respiratory health issues, hence the International Maritime Organization
estimates that the new restrictions will save over 5,70,000 premature lives by 2025.

Most marine vessels used HSFO, a by-product from crude oil distillation, before this new legislation. Heavy
fuel oil releases sulphur in ship emissions from combustion engines. To comply with current requirements, most
ships now use VLSFO.

Ship fuel oil mixes are new. Mixing gas oil with heavy petroleum products lowers its sulphur concentration.
Ships can also switch fuels. The new law requires them to install "scrubbers" to reduce SOx emissions if they
use heavy fuel oil. Some vessels had already upgraded to Low Sulphur Fuel Oil to satisfy the stricter 0.10%
m/m Emission Control Area limits. Such fuels can comply with the fresh 0.50% m/m limitations in other places.

Shipping transports about 80% of global trade and is cost-effective. The IMO prioritizes sustainable shipping
operations that safeguard the natural world and the wellness of coastal residents. Low-sulphur fuel oils will cut
emissions of greenhouse gases by 50% by 2050 compared to 2008 standards. This reduces 8.5 million MT
annually.

Industry sources expect the new law to raise ship fuel prices by 50%, which will increase sea freight expenses
by 10–20%. The shippers will pass on these hikes, but the end-customer will pay.

Shippers must carefully negotiate with shipping companies to guarantee that revised rates be justified simply to
account for the new fuel prices while absorbing these freight expenses. While carriers must exercise caution
when revising freight prices, container leasing companies—strong foundations in the logistics chain—must
commit to remain consistent and do all they can to serve consumers.

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BARRIERS OF INTRODUCING ALTERNATIVE SHIP FUEL

 LNG infrastructure and supply chain are still underdeveloped in some areas, and this solution may not
be practical for all ships.
 Installation of scrubbers requires significant investment and may not be practical for all vessels.
 Use of low Sulphur marine fuel comes with higher fuel costs and potential availability issues, which
may increase operating expenses.
 The lack of infrastructure for alternative fuels can be expensive to install and maintained.
 There are concerns about the safety and environmental impact of alternative fuels.
 As the legal framework for alternative fuels is still being developed, it is challenging for shipowners to
make long-term plans.
 As all ships must switch to using alternative fuels, this can be difficult for older ships in terms of
expense and technical difficulty because they may need to change some elements of the ship.

SHORT & LONG TERM STRATEGIES TO ALLEVIATE SHIP FUEL RISK

Short term strategies:

 One strategy for reducing the emission would be to switch to lesser use of sulphur marine fuels, which
can be done by installing scrubbers to lessen the emission or even by low Sulphur emitting fuels.
However, this purchasing of fuels can be expensive and might have issues with availability of the fuels.
 Using of Liquid Natural Gas fuel can be another option that can be implemented, since it has lesser
amount of sulphur oxide and nitrogen oxide in it comparing to the normal fuels that the shipping sector
is currently using.
 Installation of scrubbers can be used as to clean the exhaust gas cleaning system which can remove the
sulphur oxides and any other pollutants produced by usifn the fuels in the ship. Thus this will help the

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 shipping sector to use fuels which have high sulphur content and yet comply with the regulationgs og
IMO.

Long term strategies:

 Developing or finding alternative fuels can be a strategy that can be implemented by the sector which
can help them in a long term, like hydrogen, ammonia, biofuels, since these can actually help in
reducing the emissions of Sulphur oxide. This implementation can help the sector in reducing their
dependance on fossil fuels as well.
 A long-term solution for lowering emissions can also be found in the implementation of energy-saving
measures, such as optimizing ship design, enhancing engine efficiency, or reducing cargo weight.
 partnering with fuel suppliers to guarantee the availability and high quality of low sulfur marine
gasoline, building infrastructure for alternative fuels in partnership with ports.

Technical Solutions:

 Using digitalization tools like artificial intelligence and data analytics may assist to streamline shipping
routes, increase fuel economy, cut emissions, and monitor and enhance ship performance and cargo
operations.
 the utilization of renewable energy sources like wind or solar power, the mounting of solar or wind-
powered propulsion systems aboard ships, etc.
 Ship emissions can also be decreased through the use of battery technology, such as hybrid or
completely electric propulsion systems.

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REFERENCE

 IMO 2020 - cleaner shipping for cleaner air. (n.d.).

https://www.imo.org/en/MediaCentre/PressBriefings/pages/34-IMO-2020-sulphur-limit-.aspx

 IMO 2020 sulphur limit implementation - carriage ban enters into force. (n.d.).
https://www.imo.org/en/MediaCentre/PressBriefings/pages/03-1-March-carriage-ban-.aspx#:~:text=The
%20IMO%202020%20regulation%20limits,sulphur%20oxides%20in%20the%20air

 Lee, S. (2022, September 27). IMO 2020: What’s at stake. DHL Logistics of Things.
https://lot.dhl.com/imo-2020-whats-at-stake/

 The Effects of Changes to Marine Fuel Sulfur Limits in 2020 on Energy Markets. (n.d.). Retrieved
March 1, 2019, from https://www.eia.gov/outlooks/studies/imo/pdf/IMO.pdf

 THE IMO 2020 REGULATIONS AND ITS IMPACT ON HUMAN HEALTH & THE SHIPPING
INDUSTRY | VS&B Containers. (n.d.). https://www.vsnb.com/imo-2020-regulations-and-its-impact-
human-health-shipping-industry

 United Nations [Pixabay]. (n.d.). Initial IMO Strategy for Reducing Shipping Emissions Set for
Adoption. Retrieved April 10, 2018, from https://unfccc.int/news/initial-imo-strategy-for-reducing-
shipping-emissions-set-for-adoption?
gclid=CjwKCAiAjPyfBhBMEiwAB2CCIk_YGIBcFMqHe7VA16DssTZvg7UQ8VCR7TJeYs59vt7dx
wwTcHQMTRoCiUUQAvD_BwE

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