CircularsNews
August 2014

Circular Ebola & Stowaways - Outbreak in West Africa including Sierra Leone, Guinea and Liberia

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

Sayin Ilgili,

Kluplerden bahse konu ile ilgili çesitli sirkuler yayinlanmaktadir. Bati Afrika ülkelerine giden gemilerin dikkat etmesi, özellikle gemiye girebilecek kaçak yolcular vasitasi ile hastaligin yayilma endisesi bildirilmektedir.  Hastalikla mücadele için www.internationalsos.com/en/ adresi önerilmektedir.

Konu ile ilgili olarak asagidaki sirkuler Lodestar P&I’dan alinmis olup ekteki sirkuler ise Steamship Mutual’dan olmaktadir.

EBOLA VIRUS AND STOWAWAYS

We have just been made aware of a new case involving stowaways that boarded a vessel in West Africa by our correspondents in South Africa.

The vessel arrived in South Africa with 6 stowaways on board and the vessel was not allowed to berth because local health authorities were concerned about the identity of the stowaways and their nationality and whether the stowaways could be infected with the Ebola virus. The vessel suffered considerable delays as well as additional costs because the authorities in South Africa are adopting very rigorous procedures for any ships that may be carrying stowaways (or of course crew) on board that may be carrying the virus and no doubt other countries will be doing the same.

No doubt all ship owners are aware of the outbreak of Ebola and are taking appropriate precautions when vessels are scheduled to call at W African ports. The vessels will be boarded by numerous people who could have come into contact with people with the virus. No doubt vessels are adopting safeguards to protect the crew from such exposure to the virus.

We attach a link to International SOS which has a lot of very useful information on the outbreak in West Africa and is regularly updated. ( https://www.internationalsos.com/en/ )

Vessels calling at West African ports also need to exercise greater diligence with regard to stowaways gaining access to the vessel and should the vessel then depart with stowaways on board, the vessel may be delayed or detained at her next port whilst local health officials check all the individuals on board.

The vessels may be further delayed if there are stowaways on board the vessel as local health officials will want a full investigation carried out as to the nationality of the stowaways and whether they are from areas which have been declared hotspots by the World Health Organization.

Please click on the link below to download the circular as a PDF.

http://www.lodestar-marine.com/claims-loss-prevention/ebola-virus-and-stowaways

______________________________

carl.gill@lodestar-marine.com

+44 (0)207 068 8316 (Direct)  

+44 (0)758  5304006 (Mobile)

www.lodestar-marine.com

Steamship Mutual circular

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