|
The impending entry of the MARPOL
Annex II and the International Bulk Chemicals
Code effective 1 January 2007 that will affect
all vessels engaged in the carriage of chemicals
and vegetable oil is expected to create severe
shortage of shipping space for palm oil shippers
in Malaysia.
Effective 1 January 2007, all vessels, that
carry chemicals and oil like substances
including vegetable oils in bulk will be subject
to substantive revisions of MARPOL 73/78 Annex
II and the International Bulk Chemicals (IBC)
Code.
Vegetable oil shippers, including shippers of
palm oil in Malaysia are bracing themselves of
potential shortage of shipping space as
shipowners are also likely shift their
preference to the carriage of chemicals with the
entry of the new International Maritime
Organisation-mandated regulation.
Freight rates for shipping palm oil is also
likely to increase on account of the new
regulations which shipowners must comply with
added cost and well as because of short supply
of ships.
Also, shipowners are also likely to deploy their
ships in the trade to carry more chemicals that
offers premium freight rates compared with the
carriage of vegetable oils, including palm oil.
It is estimated that trade in vegetable oil
involves the carriage of about 35 million tones
moved by about 1.500 tankers of sizes between
15,000 dwt – 25,000 dwt from various markets
worldwide.
“Impending revisions to MARPOL Annex II
effecting the reclassification of chemicals and
vegetable oils and fats will bring about changes
in the trading possibilities for the chemical
and products tanker fleets,” reported the
Independent Tanker Operators Organisation (INTERTANKO).
INTERTANKO has made a study of these trades and
of the availability of tonnage, involving over
1,100 vessels.
It concludes that there will be a significant
impact on both the product tanker and chemical
tanker trades, and that there will be a nominal
surplus of about 5.7m deadweight (about 20%) of
IMO Type 2/3 tankers from 2007 onwards after the
reclassification comes into effect.
However it should be borne in mind that whatever
the final decision is on cargo reclassification,
the market forces of the day will ultimately
decide the actual, physical tonnage availability
in each ship type.
The chemical and products tanker operators will
decide how they can best trade their tonnage
between the regulated and the unregulated
cargoes and therefore which tankers end up in
which trades.
The revisions to MARPOL Annex II, have been
under review and discussion at the IMO and
elsewhere for over 10 years, and have been
driven by the desire of various Flag States to
regulate all Annex II products, including
Vegetable Oils, according to their physical
properties and their carriage and discharge
requirements Regulating chemicals, oils and fats
that are presently unregulated will have an
effect on the products tanker market as well as
on the chemical tanker market.
This is because today many of the "easy"
chemicals and all the vegetable oils & fats can
be carried by product tankers as well as
chemical tankers, whereas the proposed
reclassification means that the majority of
these cargoes may only be carried on specific
IMO tanker types.
Industry sources noted that once the revisions
are implemented a severe shortage of tonnage
(approved to carry vegetable oils) will result. |
