Ships at all major commercial ports in emission control areas (ECAs) set up by China last year are now required to burn low sulphur fuel for the majority of the period while at berth.

Although requirements were already mandatory at some ports in 2016, enforcement was limited, though not unheard of, as authorities gave ship owners the chance to prepare for the changes under laws that were developed and announced with very little lead time.

Enforcement is widely expected to be stepped up this year, particularly in the wake of recent pollution levels that prompted red alerts and closed businesses and schools across the north of the country. The port city of Tianjin was one of the locations hit most severely by pollution, to the point where port operations were suspended due to safety concerns over poor visibility and excessive particles in the air.

Under the timetable issued by the ministry of transport, since 1 January, ships at berth in the ports of Tianjin, Qinhuangdao, Tangshan, Huanghua, Shenzhen, Guangzhou, Zhuhai, Shanghai, Ningbo-Zhoushan, Suzhou and Nantong are required by law to burn fuel with a sulphur content of equal to or less than 0.5mm for the berthing period, excluding one hour after berthing and one hour before departure.

The Yangtze River Delta (YRD) ports of Shanghai, Ningbo-Zhoushan, Suzhou and Nantong had already made it mandatory for ships to burn low sulphur fuel from 1 April last year. They were joined on 1 October by Shenzhen, where authorities issued a local directive covering the terminals of Yantian, Shekou, Mawan and DaChan Bay.

The next key deadline under the national regulation is January 2018, when ships will be required to burn low sulphur fuel at all ports in the three ECAs for the entire berthing period. In January of 2019, all ships entering the ECAs, whether at berth or not, will be required to burn low sulphur fuel.

Huatai Insurance Agency, a mainland-based company that specialises in helping the private sector navigate China’s maritime environment, said the government may introduce stricter requirements at later date.
“The government will evaluate the effect of the requirements in order to determine whether to take the following steps in the future: (i) when entering the ECAs, ship shall be required to use fuel with the sulphur content of no more than 0.1% m/m; (ii) enlarge the geographical scope of ECAs; (iii) other further measures.”

Ships in breach of the rules are liable for fines of between USD1,500 and USD15,000 under the Law of Prevention of Air Pollution of the Peoples’ Republic of China. Ships are required to keep bunker delivery documents on board for three years and a sample of fuel for one year, under the Regulation of Prevention and Control of Marine Pollution Act. Fines up to USD1,500 can be imposed on owners that fail meet the fuel record keeping requirements.

The China Maritime Safety Administration (MSA) issued guidelines on the implementation and supervision of ECAs that state how compliance with emission control measures will be verified.

For ships using low sulphur fuel, verification will be made by check of bunker delivery notes, fuel changeover procedures, engine room logbook records and fuel oil quality/samples. For ships using alternative measures to reduce emissions, such as shore power, LNG or exhaust gas scrubbers, checks will center on the International Air Pollution Prevention (IAPP) Certificate/Record and engine room log book records.

Analysts said the availability of low sulphur fuel for vessels and support of the national oil companies that dominate oil and gas upstream and downstream sectors would be critical to ensure the success of the new regulations.

Local authorities in Shenzhen said ships could apply for immunity and exemption from the regulation in certain cases, including supply of sufficient proof that they made every effort but did not succeed to obtain low sulphur fuel.

The Shenzhen order said shipowners could also take alternative measures to reduce pollutants while at berth, including use of liquefied natural gas and other clean energy sources. Alternative measures need to be approved in advance by the Shenzhen Residential Environment Committee and the Shenzhen Maritime Safety Administration.

The Shanghai Maritime Safety Administration also launched an exemption scheme that allows shipping companies or agencies to apply for an exemption if using low sulphur fuel oil is unsafe for vessels.