CircularsNews
August 2011

Londra P&I Kulübü'nden Haber Uyarısı: Hindistan Açıklarında Geçiş Planlaması ve Ek Premium Alan

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

Degerli Ilgili,

Grup Kluplerinden London Steamship, asagida yayinlamis oldugu sirkuler ile klup muhabiri olan James Mackintosh & Co Private firmasinin ekteki goruslerini sirkule etmistir.

Hatirlanacagi uzere Korsanlik faaliyetlerinden dolayi Harp policelerindeki tehlikeli bolgelerden Hint Okyanusunun koordinatlari genisleyip Hindistan’in 12 miline dayanmis vaziyettedir. Bundan dolayi, ek prim gerektiren bu bolgeye girmemek icin Hindistan 12 mil icersinde kalmaya çalisan gemileri bekleyen diger tehlikelere (dusuk draft, trafik, balik ciftlikleri gibi) dikkat cekilmeye calisilmaktadir.

Ayrica Mumbai limanina yaklasirken trafik ve demirleme bolgelerinden dolayi Harp ek prim bolgesine zorunlu olarak gecmek gerekecegi dolayisi ile ek prim hususunun kiraci ile muhakkak gorusulmesi gerektigi hatirlatilmaktadir.

QTE

19 August 2011

Passage Planning Offshore India and the Additional Premium Area

Members will be aware that, due to the continuing pirate attacks on merchant ships traversing the Gulf of Aden area and the widening geographical range of attacks despite the presence of a number of international navies, the Additional Premium Area for War Risks in the Indian Ocean (“the AP Area”) has been extended to up to 12 miles offshore from the Indian Coast.

In the light of this extension, James Mackintosh & Co Pvt Ltd, a Mumbai Correspondent, has written to the Association (see attached) highlighting the dangers of trying to avoid the AP Area by navigating the inshore route (i.e. within 12 miles of the Indian coast), especially with regard to passage planning in and around the Mumbai area. As Members will note from the attached advice, their conclusion is that, given all the dangers (including crossing traffic lanes in contravention of accepted practice around Mumbai, navigating around offshore installations, and avoiding shallows), a prudent Master would in their view be within his rights to refuse to navigate the inshore route as it is arguable that any risk of piracy is outweighed by the risks of proceeding on the inshore route. Additionally, they indicate that “while approaching bigger ports like Mumbai, it will not be feasible to navigate through outer anchorages and traffic lanes” thus necessitating an offshore route through the AP Area in any event.

Further investigation has shown that there may also be navigational safety issues at the start of the AP Area at the southern tip of India at the approach to Cape Cormorin. At this point there is shallower water nearer the coast which narrows the possible area through which a ship can safely pass, which could cause heightened risks particularly if traffic flow is heavy.

Given the above, and the almost certain need to enter the AP Zone when transiting the Indian Ocean, Members should carefully consider the issue of additional premium and who will be responsible for it before entering into new charterparties.

Best regards

The News Alerts Team

The London P&I Club

UQTE

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