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Hong Kong bureaucratic activists drive ships and cargo to Shenzhen
THOSE guilty of not burning low-sulphur fuel aboard ships of more than 500 tons berthed in Hong Kong face six months in jail and/or fines of HK$200,000 (US$25,801), warns UK P&I Club loss prevention director Stuart Edmonston.
Hong Kong's bureaucratic activists are diverting ships to Shenzhen as a result where there is only a voluntary scheme to burn low-sulphur fuel, which is 40 per cent more expensive.
"The Hong Kong requirements impose criminal sanctions against the owners including any bareboat charterers, shipmanagers and masters," said Mr Edmonston.
"Shipowners need to be aware of the differing rules and costs across jurisdictions as they face significant fines for non-compliance. Hong Kong and Australia are the latest to introduce their own requirements," said Mr Edmonston.
Since 2013, Shenzhen has become the third largest container port in the world. After 12 months of steady tonnage declines in 2015, Hong Kong fell behind Ningbo in the rankings last month.
Most ocean-going vessels calling at Shenzhen burn standard bunker because it is cheaper and better.
Said Mr Edmonston: "Industry concerns include low viscosity, lack of lubricity and low density of the new fuels. Other issues are the higher costs of these fuels, as well as difficulties in obtaining them in some parts of the world."
He suggested owners consult their engine and boiler manufacturers for advice on operating with low-sulphur fuels and the need for equipment and systems.
Now another local measure, the Competition Ordinance, to ensure fairplay in the market, threatens to divert even more tonnage to Shenzhen.
The ordinance makes no allowance for vessel sharing agreements. From January 1, all vessel-sharing alliances [VSA] will be illegal in Hong Kong.
"Fines are huge - 10 per cent of turnover, which for us is US$2.7 billion if we do not comply. The way it is going, we will be breaking the law from January 1," said Maersk's man in China Tim Smith.
"Ninety-five per cent of the container throughput in Hong Kong comes in or goes out in VSAs and that could be quite problematic," he said.
Hong Kong's bureaucratic activists are diverting ships to Shenzhen as a result where there is only a voluntary scheme to burn low-sulphur fuel, which is 40 per cent more expensive.
"The Hong Kong requirements impose criminal sanctions against the owners including any bareboat charterers, shipmanagers and masters," said Mr Edmonston.
"Shipowners need to be aware of the differing rules and costs across jurisdictions as they face significant fines for non-compliance. Hong Kong and Australia are the latest to introduce their own requirements," said Mr Edmonston.
Since 2013, Shenzhen has become the third largest container port in the world. After 12 months of steady tonnage declines in 2015, Hong Kong fell behind Ningbo in the rankings last month.
Most ocean-going vessels calling at Shenzhen burn standard bunker because it is cheaper and better.
Said Mr Edmonston: "Industry concerns include low viscosity, lack of lubricity and low density of the new fuels. Other issues are the higher costs of these fuels, as well as difficulties in obtaining them in some parts of the world."
He suggested owners consult their engine and boiler manufacturers for advice on operating with low-sulphur fuels and the need for equipment and systems.
Now another local measure, the Competition Ordinance, to ensure fairplay in the market, threatens to divert even more tonnage to Shenzhen.
The ordinance makes no allowance for vessel sharing agreements. From January 1, all vessel-sharing alliances [VSA] will be illegal in Hong Kong.
"Fines are huge - 10 per cent of turnover, which for us is US$2.7 billion if we do not comply. The way it is going, we will be breaking the law from January 1," said Maersk's man in China Tim Smith.
"Ninety-five per cent of the container throughput in Hong Kong comes in or goes out in VSAs and that could be quite problematic," he said.
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