The International Maritime Organization (IMO) has proposed a new regulation, Sulfur Cap, which will see that the sulfur content in fuels be reduced to less than 0.5 percent globally from its current levels of 3.5 percent in international waters. The goal is to reduce the poisonous sulfur oxide gas emitted from ships.
Although the IMO does not enforce the regulations themselves, it is up to member states affiliated to the United Nations’ maritime regulator. In order to do so it is required that each national jurisdiction applies the regulation by establishing it as law through its own legal system. This would allow each jurisdiction to take legal action against those who do not comply.
Worries about non compliance in cross border shipments will cause issues in the industry among many other legal and regulatory ramifications between buyers and suppliers. Many of the questions hope to be answered at the Maine Environment Protection Committee of the International Maritime Organization meet on May 13.
FOBAS (Fuel Oil Bunker and Analysis Advisory) has developed a system that will monitor the transactions between supplier and buyer through a blockchain system. The fuel supply process was developed by BLOC (Blockchain Labs Open Collaboration), based in Denmark in partnership with representatives from every element of the ship fuel supply process, including testing services, suppliers, ship operators and port authorities oil traders.