CircularsNews
January 2020

Corona Outbreak

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

Corona virusu dunya gundemi ile birlikte global bir sektor olan denizciligi de mesgul etmekte ve endise yaratmakta. Konuyu farkli acilardan ele alan muhtelif sirkulerleri sizin icin derlemeye calistik.

Sirkulerler iceriginde lokal Klup muhabirlerinden alinan bilgi notlari oldugu gibi muhtemel “safe port” ihtilaflarini degerlendiren hukuki bir makale de bulacaksiniz.

https://www.themecogroup.co.uk/charterers-liability-insurance/wp-content/uploads/sites/2/kalins-pdf/singles/coronavirus-wuhan-flu.pdf

https://www.swedishclub.com/news/member-alert/members-advice-regarding-corona-virus

https://www.hilldickinson.com/insights/articles/new-%E2%80%98wuhan%E2%80%99-coronavirus-%E2%80%93-issues-and-effects-shipping-market

https://maritime-executive.com/article/six-seafarers-fall-ill-as-coronavirus-outbreak-continues

https://www.londonpandi.com/knowledge/news-alerts/china-coronavirus/

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Prevention of coronavirus for onboard crew

Ships have large mobility, small areas on board, intensive crew activities, and lack of effective medical protection. Therefore, once an outbreak occurs, it will be difficult to obtain effective treatment. With reference to the World Health Organization's "Interim Guide to the Prevention and Control of Epidemic and Pandemic Acute Respiratory Disease Infection in Health Care" and the experience of ships in 2002 against SARS, the Association proposes the following precautions to member companies and member ships Suggest:

1. Prompt notification

Member companies should promptly inform the shore-based and ships of the progress of the epidemic, so that employees and crew fully understand the risks of the new coronavirus, and during the spring passenger traffic and the epidemic is not effectively controlled, try not to replace the crew.

2. Reduce ship-shore communication

Member companies should formulate temporary security policies. In the near future, try not to arrange ship-shore exchanges, boarding inspections, internal audits, external audits, maintenance and other activities, and prohibit all boarding visits and family visits.

3. Strengthen ladder control

During the berthing operation of the ship, the captain shall urge the stairway duty to strengthen the stairway control, strictly check the credentials of all boarding personnel, and all unrelated personnel are prohibited from boarding. At the same time, in countries and ports reporting the epidemic situation, it is forbidden for crew members to leave the ship during berthing.

4. Restricted areas

The ship shall strictly control the movement area of foreigners boarding the ship, set up tally rooms and reception rooms on the main deck, and control the entry of agents, tally, foremen, suppliers and other foreign personnel into the crew living area.

5. Pay attention to food safety

Ship meals should be purchased from regular suppliers to avoid buying meals from the ports and areas where the epidemic is found. In the near future, more fresh vegetables and fruits should be added to reduce the intake of meat and poultry meat products. Separate cutting boards and knives for raw and cooked foods. Avoid raw foods, especially raw meat and seafood.

6. Focus on personal hygiene

The crew should wash their hands frequently, take a shower, change their clothes frequently, use soap or healthy hand sanitizer when washing their hands, put the clothes working outside in the locker room, don't wear them back to your room, and wash the work clothes with disinfectant. When coughing and sneezing, use paper towels or elbow to cover the nose and mouth to prevent droplets from spraying. The used paper towels should preferably be incinerated.

7. Strengthen self-prevention

The company should take the initiative to provide protective masks to the ship. The crew should wear masks during berthing to avoid close contact with anyone with cold or flu-like symptoms, and try to avoid going out to public places and contacting livestock and wildlife during berthing.

8. Suspect investigation

The master of the ship should strengthen the safety investigation of suspected cases of the ship. When any foreigner finds similar cold, cough, fever and other symptoms during berthing, he should immediately leave the ship and notify the agent and foreman or relevant management organization at the same time; if the crew members are found to have similar symptoms. During the berthing period, an outpatient treatment should be arranged immediately; if quarantine should be arranged during the voyage, do not allow symptomatic crew members to participate in collective activities, and notify the company of the crew symptoms in a timely manner.

9. In addition, the crew should especially maintain good working habits during this period

Ensuring adequate sleep: Insufficient sleep harms the function of the seafarer's brain and nervous system. Not only will it have difficulty remembering, emotional instability, low work efficiency, but also reduce the body's immunity, which in turn reduces the body's defense ability against coronavirus.

Strengthen physical exercise: develop the habit of consciously exercising on the boat, actively exercise, maintain a suitable weight, and strengthen your physique.

Quit smoking and drink less: Regarding the online transmission that "smoking can prevent coronavirus infection", People's Daily solemnly rumors, "Smoking not only reduces physical resistance, increases the chance of infection, but also increases the risk of severe infection in the event of infection.

Besides, we provide the Sina news website for your reference, you are free to check the latest updates regarding the coronavirus from http://english.sina.com/index.html

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