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Thursday, April 26, 2018

Single-hulled tanker phase-out – proposed EU regulation

Analysis of the proposed EU amendment of (EC) no. 417/2002 concerning the phase-out of single-hulled tankers and a comparison with IMO MARPOL Annex I 13G and OPA 90.

As advised in Weekly NEWS 51 of 20 December 2002, the European Commission issued on 20 December a proposal for the accelerated phase-out of single-hulled tankers. A copy of the proposal can be downloaded from the INTERTANKO’s web site.

INTERTANKO has analysed the proposed EU amendment of (EC) no. 417/2002 concerning the phase-out of single-hulled tankers and made a comparison with that under IMO MARPOL Annex I 13G and under the OPA ’90.

Under MARPOL 13G the single-hulled tanker fleet is evenly phased out in the period 2003-2014 with the remaining MARPOL tankers (SBT/PL) being phased out in 2015. Under the OPA ’90 single-hulled tankers are also evenly phased-out in the period 2003-2009 with the bulk of the tonnage set for phase-out in 2010. However, single-hulled tankers can sail to LOOP and dedicated lightering areas until 2015. The proposed EU regulation, however, would lead to the bulk of the tonnage being phased out in 2003 and 2010. Single-hulled tankers in the segment 600-5,000 dwt, not covered by MARPOL (lower limit 5,000 dwt), and OPA ’90 (lower limit 5,000 gt), are also set to be covered by the proposed EU regulation with the bulk of tankers set for phase-out in 2003 and 2015. The proposed new regulation would have the strongest impact on this segment as it contains few double-hulled tankers. For example, a considerable number of bunker tankers in European trades are not double-hulled.

The proposed EU regulation will cover single-hulled tankers under EU members’ flags and single-hulled tankers entering EU ports, but this analysis has looked at the consequences for the total world-wide single-hulled fleet.

INTERTANKO has estimated that the phase-out of the total single-hulled tanker fleet above 5,000 dwt as proposed in the EU regulation would cost the industry close to USD 5 billion more than the phase-out according to MARPOL 13G. INTERTANKO carried out a similar estimate of the consequences of the original EU proposal after the Erika accident and arrived at some USD 11 billion dollars, but then a great deal of tonnage would have been phased out in 2002 and the costs were based on the 25-year limit that applied for single-hulled ships at that time. The phase-out of the world tanker fleet 600-5,000 dwt according to the EU proposal would also cost several billion dollars. These smaller tankers would normally have a considerably longer lifetime than large tankers. INTERTANKO has complained that no impact analyses were carried out before the Commission issued its proposed new phase-out schedule.

A graphical comparison between the single-hulled tanker phase-out under MARPOL 13G, in the proposed EU regulation and under OPA 90 can be viewed on the INTERTANKO web site.

The whole analysis is available on request to the INTERTANKO office. INTERTANKO will also help members with particular cases if needed.

Contact:Erik Ranheim Tel: 22 12 26 75
or Jan Svenne Tel: 22 12 26 77