May 2016

Stowing heavy on top of light containers

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

Dear Sirs,

Attached please kindly find circulars by the Standard P&I Club and Law Firm Freehill Hogan and Mahar LLP in respect of the above new SOLAS requirement coming into effect from 1 July 2016. All International Group Clubs have issued similar circular.

Sayin yetkili,

Malumunuz oldugu uzere SOLAS’ın konteynerler icin mevcut duzenlemelerine ilave olarak 1 Temmuz 2016 itibariyle SOLAS kurallarinda yapilan değisiklikle gemilere yuklenmeden once yukleyiciler tarafindan konteynerlerin agirliklarinin belirlenmesi sarti getirilmistir. Bundan maksat gemiye yuklenecek konteynerlerin yuk cinslerinin yani sira agirlik bazinda da siniflandirilmesi yapilarak geminlerin gerek emniyetli yuklenmesi gerekse emniyetli operasyolarin yapilmasi amaclanmistir.

US Coast Guard, sektor ilgililerini (yukleyiciler, terminaller, tasıyanlar ve denizcilik teskilatlarina), konteynerlerin yeni yururluge alinacak uygulamanin geregi olan yukleme oncesi burut agirligini tespit icin (verified gross weight VGM) asagidaki metodlarin uygulanabilecegini bildirmistir.

(1) Yukleyicilerin kendi nami ve hesabina yetki vermeleri halinde konteynerlerin VGM agirlikleri terminaller tarfindan tespit edilebilir,

(2) Yukleyici ve tasiyanin anlasmalari halinde, tasiyan konteynerin darasini ve kullanilacak dunnage vs malzeme agirliklerini dogrulayip yükleyicilere vermeleri halinde, yukleyiciler de yukun agirligini dogrulamasi seklinde yuklu konteynerin VGM agirligi tespit edilebilir.

Ekteki Standard P&I klubun ilgi bulteninde de belirtildigi uzere,

a. Burut agirligini tespit edilmemis olan konteynerlerin yuklenmemesi tavsiye edilmektedir.

b. Murettebatin, yuklenen konteynerlerin VGM agirliginida dikkate alarak stabilite, stress ve yuk baglama hesaplarinin musaade edilen sinirlar dahilinde oldugundan emin olmasi tavsiye edilmektedir.

c. Geminin, yuklenen konteynerlerin VGM agirligini belirleme gibi bir imkani olmadigi icin, kendilerine bildirilen VGM agirlik degerlerine itibar etmek durumundadir. Sayet gerek gemi murettebati, gerekse terminal ilgilileri, yukleyici tarafindan bildirilen VGM degerlerinin dogurulugunda emin olamazlar ise, tehrardan olculmede dahil VGM agirliginin dogrulugunun teyidi icin uygun olan tedbirleri alabilirler,

d. Malum olundugu uzere gemi kaptani gemiye yuklenecek yuklerde son karari veren kisi olarak, yuk istif planinda yer alan beher konteynerin dogru VGM agirliklerinin belirtildiginden emin olmalidir. Aksi halde veya VGM agirliginin belirtilmedigi konteynerlerin yuklenmesi halinde SOLAS kurallari ihlal edilmis olunacaktir.

e. Armatorlerinde gereken itinayi gostermeleri ve bu maksatla

- is ortaklari yerel ofisler, acenteler ve gemi murettebatini yeni uygulamayla ilgili gereken egitim ve bilgilendirmeleri yapmasi;
yukleme oncesi tum konteynerlerin gecerli ve dogru VGM agirlik belgelerinin hazir oldugundan emin olmasi

- Dogru ve gecerli VGM belgelerinin yine gecikmeye sebebiyet vermemek maksadiyla yeterli bir sure oncesi gemiye, sunuldugundan emin olmasi,

- VGM agirliklarinin ve belgelerinin eksikliginden veya yanlis sunumundan dolayi maruz kalinabilecek direk ve bagli maddi kayiplara karsin (ilave yuk elleclemesi, konteynerlerin tekrardan agirliginin olculmesi masraflari, maruz kalinacak zaman kayiplari ve dogacak demoraj alacaklari vs) yapilacak kira sözlesmelerinde armatoru ve gemiyi koruyucu ve haklarina halel gelmeyecek sekilde gereken anlasma maddelerinin ilave edildiginden emin olmasi onemle tavsiye edilmeketdir.

Daha detayli bilgi IG uyesi UK P&I, Skuld P&I Klup ve Standard P&I klubun asagidaki yer alan URL baglantilarinda ve yerel muhabirinin ekteki sirkülerinde mevcuttur.

http://www.ukpandi.com/knowledge/article/1098-05-16-uscg-addresses-industry-concerns-regarding-the-forthcoming-implementation-of-the-solas-container-verified-gross-mass-requirements-usa-135062/?dm_i=33T,47JE2,JV0U6Z,FBWLV,1

http://www.skuld.com/topics/cargo/containers/container-weight-verification/

http://www.standard-club.com/media/2111360/loss-prevention-implementation-of-the-solas-chapter-vi-amendments-%E2%80%93-vgm.pdf

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Stowing heavy on top of light containers

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

NYDOCS1-449918-v1-Client_Alert_5-3-15.pdf

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