CircularsNews
January 2016

Bahrain - Restrictions on the Movement of Vessels between Bahrain and Iran

The European Union’s Emissions Trading System (EU ETS) was extended to cover emissions from shipping as of 1st January 2024.

The EU ETS is limited by a 'cap' on the number of emission allowances. Within the cap, companies receive or buy emission allowances, which they can trade as needed. The cap decreases every year, ensuring that total emissions fall.

Each allowance gives the holder the right to emit:

  • One tonne of carbon dioxide (CO2), or;
  • The equivalent amount of other powerful greenhouse gases, nitrous oxide (N2O) and perfluorocarbons (PFCs).
  • The price of one ton of CO2 allowance under the EU ETS has fluctuated between EUR 60 and almost EUR 100 in the past two years. The total cost of emissions will vary based on the cost of the allowance at the time of purchase, the vessel’s emissions profile and the total volume of voyages performed within the EU ETS area. The below is for illustration purposes:
  • ~A 30.000 GT passenger ship has total emissions of 20.000 tonnes in a reporting year, of which 9.000 are within the EU, 7.000 at berth within the EU and 4.000 are between the EU and an outside port. The average price of the allowance is EUR 75 per tonne. The total cost would be as follows:
  • ~~9.000 * EUR 75 = EUR 675.000
  • ~~7.000 * EUR 75 = EUR 525.000
  • ~~4.000 * EUR 75 * 50% = EUR 150.000
  • ~~Total = EUR 1.350.000 (of which 40% is payable in 2024)
  • For 2024, a 60% rebate is admitted to the vessels involved. However, this is reduced to 30% in 2025, before payment is due for 100% with effect from 2026.
  • Emissions reporting is done for each individual ship, where the ship submits their data to a verifier (such as a class society) which in turns allows the shipowner to issue a verified company emissions report. This report is then submitted to the administering authority, and it is this data that informs what emission allowances need to be surrendered to the authority.
  • The sanctions for non- compliance are severe, and in the case of a ship that has failed to comply with the monitoring and reporting obligations for two or more consecutive reporting periods, and where other enforcement measures have failed to ensure compliance, the competent authority of an EEA port of entry may issue an expulsion order. Where such a ship flies the flag of an EEA country and enters or is found in one of its ports, the country concerned will, after giving the opportunity to the company concerned to submit its observations, detain the ship until the company fulfils its monitoring and reporting obligations.
  • Per the EU’s Implementing Regulation, it is the Shipowner who remains ultimately responsible for complying with the EU ETS system.

There are a number of great resources on the regulatory and practical aspects of the system – none better than the EU’s own:

https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02003L0087-20230605

https://climate.ec.europa.eu/eu-action/transport/reducing-emissions-shipping-sector_en

https://climate.ec.europa.eu/eu-action/eu-emissions-trading-system-eu-ets/what-eu-ets_en

Sayın Yetkili,

Asagida Grup Kluplerinden West of England tarafindan yayinlanmis sirkuleri bulabilirsiniz. Tum klupler benzer sirkuler gondermistir.

Aralık 2015’de Suudi Arabistan, Iran ile diplomatik iliskilerini askıya alması sonrasında, Bahreyn Makamlarında 07 Ocak 2016 tarihinde bir bildirim yayınlamıstır.

Bu bildirim geregi yine aynı tarihten itibaren Iran Bayraklı gemiler ile Bahreyn Limanları’na gelecek diger gemiler icin ikinci bir bildirime kadar asagıdaki yaptırımları uygulamaya koymustur;

1.       Bahreyn Bayraklı gemilerin Iran Limanları’na ugraması yasaklanmıstır.

2.       Iran Bayraklı gemilerin Bahreyn Limanları’na girisi yasaklanmıstır.

3.       Baska ulke bayraklı gemilerin bir onceki ugragı Iran Limanı ise, Bahreyn Limanları’na girisi yasaklanmıstır.

4.       Baska ulke bayraklı gemilerin son uc ugragı Iran Limanı ise, Bahreyn Limanları’na girisi, yine Bahreyn Guvenlik Makamları’nın iznine vabeste olacaktır.  

Nitekim, bir geminin iki onceki ugrak limanının Iran Limanı oldugu tespit edilmis ve bu geminin  Bahreyn Limanı’na girisine müsaade edilmemistir. Netice olarak gemi seferden dusurulmustur.  Uyelerin yapacakları sefer baglantılarında bu yeni uygulama ve mueyyideyi dikkate alması onemle tavsiye edilmistir.

Konuya ait gurup P&I klupleri uyelerini bilgilendirmek için benzer bir bulten hazırlamıs olup bultene asagıdaki URL baglantısından da ulasılabilmektedir. Herhangi bir soru olması halinde klubun “loss prevention” bolumune basvurulabilir.  

http://www.westpandi.com/Publications/News/bahrain---restrictions-on-the-movement-of-vessels-between-bahrain-and-iran/  

On 7 January 2016 the authorities in Bahrain issued an Administrative Order stating that due to the recent severance of diplomatic relations between the Kingdom of Bahrain and Iran, the movement of vessels between these two countries has been restricted.

The Administrative Order states that:

- See more at: http://www.westpandi.com/Publications/News/bahrain---restrictions-on-the-movement-of-vessels-between-bahrain-and-iran/#sthash.HkpgMgif.dpuf

  • ll Bahraini flagged vessels are prohibited from visiting any Iranian ports.
  • Iranian flagged vessels are prohibited from entering any ports in the Kingdom of Bahrain.
  • Vessels of any flag are prohibited from proceeding directly from an Iranian to a Bahraini port.
  • A vessel of any flag which visited an Iranian port as one of its last three port calls requires approval from the Bahrain Security Authorities prior to entering Bahraini waters.

An entered vessel has since been denied entry to Bahrain after visiting an Iranian port two port calls earlier, resulting in the fixture being cancelled.

Members with vessels due to call at Bahrain or contemplating such a fixture are advised to take account of the new restrictions. Members requiring further guidance should contact their P&I Club’s loss prevention department.

- See more at: http://www.westpandi.com/Publications/News/bahrain---restrictions-on-the-movement-of-vessels-between-bahrain-and-iran/  

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