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AAL to Introduce Low Sulphur Surcharge Ahead of IMO 2020

first_imgzoomIllustration. Image Courtesy: AAL Kobe/ Flickr-Kees Torn under CC BY-SA 2.0 license Singapore-based multipurpose shipping company AAL Shipping revealed its plans to become fully compliant with the new IMO sulphur regulation that comes into effect on January 1, 2020.“Over the past year, we’ve been researching the options available and decided that migration to the use of low sulphur fuel … will best meet the interests of the customers, trades and industries we service globally,” AAL Shipping said.This fuel — with sulphur content of 0.5% or less — comprises variants such as low sulphur fuel oil (LSFO), ultra low sulphur fuel oil (ULSFO) and low sulphur marine gasoil (LS-MGO).As all of the variants are currently more expensive than standard marine fuel, AAL expects significant implications on the economics of its daily operations.“In the multipurpose shipping sector, we know well that one size does not fit all. Therefore, in consideration of the wide variety of cargo and trades that we handle and manage worldwide, we will be implementing various calculation methodologies to fairly share the increased cost of low sulphur fuel usage with our customers,” the company added.According to AAL, the new measure will be implemented from September 1, 2019, as the company starts to prepare its fleet for the low sulphur fuel and begin bunkering same.The purpose of the new regulation is to reduce sulphur oxide (SOx) levels produced across the entire shipping industry, resulting in more sustainable air quality conditions.AAL is joining a number of companies that have already implemented low fuel surcharge as a means of compensating for the rising fuel costs stemming from the 2020 low-sulphur fuel regime. Maersk, CMA CGM, OOCL, HMM, Hapag-Lloyd and MSC are among the companies which have already started introducing the new measures to mitigate their exposure to higher costs.last_img read more

 

Patched up ferry restores lifeline for First Nation without safe drinking water

first_imgThe Canadian PressSHOAL LAKE, Ont. – A reserve under one of Canada’s longest boil-water advisories has patched up its aging ferry and is lifting its state of emergency after being cut off from the outside world two weeks ago.Shoal Lake 40 First Nation declared a state of emergency after the ferry connecting it to the mainland failed a federal inspection at the end of April.Chief Erwin Redsky says the ferry has been repaired and is back in the water, but only in a limited capacity. Nonetheless, he said, it’s a relief to everyone in the community, especially elders who had been moved when the ferry was pulled out of service.“They’re anxious to get home. A lot of community members are anxiously waiting for the official word,” Redsky said Wednesday. “Any kind of service right now is huge. It’s very, very critical that this ferry is allowed to operate, at least on a restricted-load basis, so we’re very happy.”The community will be watching closely for leaks and the ferry will have to undergo extensive repairs in the fall, he said.Shoal Lake 40 was cut off from the mainland a century ago to build an aqueduct which supplies the city of Winnipeg with fresh water. The reserve, which straddles the Ontario-Manitoba boundary, has no all-weather road and has been under a boil-water advisory for 17 years.When the ferry failed to pass its four-year Transport Canada inspection due to a leaky and rusty hull, people in the community had no access to bottled water, groceries or immediate medical attention.The reserve has been lobbying for years for construction of an all-weather road residents call Freedom Road. The federal government, Manitoba and Winnipeg have chipped in $1 million each for a feasibility study, but there are no firm commitments beyond that.The loss of ferry service was a “wake-up call” for many and highlighted the reserve’s vulnerability without a reliable connection to the mainland, Redsky said.“I think everybody is aware of the long-term solution that needs to be committed to and I think we’re on the right track.”last_img read more