From July 1, 2010 in accordance with MARPOL Annex VI regulations, ships operating in the North Sea and Baltic Sea Emissions Control Areas (ECAs) will be required to use lower Sulfur Oxide (SOx) bunker fuel not exceeding 1.00% instead of the existing requirement of 1.50%.

However, a smooth and fully compliant transition to the 1.00% ECA is far from assured. What is guaranteed is that bunker fuel buyers will need to start preparing their fuel sourcing now as demand for low sulfur bunker fuel will increase significantly as July approaches and the new limit comes into force.

For Chemoil - one of the largest supplier of low sulfur fuel in the European Amsterdam-Rotterdam-Antwerp (ARA) region - and the bunker supply industry, it is important to ensure that compliant “on spec” fuel reaches shipping customers from July 1. Chemoil is already well prepared to meet customers’ demand for 1.00% sulfur RMG380 when the new regulation comes into force.

The transition from 1.50% to 1.00% will have knock-on effects across the supply chain – with pricing likely to rise in line with the requirement for increased blended distillate or “clean” product, while segregated bunker fuel barges and storage facilities will continue to be a key requirement for bunker suppliers retailing 1.00% sulfur bunker fuel.

While good preparation is the key for ship operators and owners to a smooth transition to 1.00% sulfur bunker fuel, supplies should fall closely into line with supplies of 1.50% product, however it is worth being aware of which supply ports have good availability.

Of course, the current phase is merely a prelude to what will be a considerable shift in the way ships operate in 2015 and the reduction of sulfur levels to 0.10% in Europe, and – as from late March and IMO approval – in North America.

For the ship owner and operator, it will be about meeting the challenge this new low sulfur fuel regulation will present for them in the North Sea and Baltic Sea ECAs as they strive to maintain proportional operational costs.

For Chemoil, the necessary steps have been taken with the adjustment of its integrated supply chain to ensure that its customers have the reliable availability of bunker fuel of the same quality and value that they have come to expect from Chemoil.