Since January 1, 2020, the International Maritime Organization’s (IMO) sulphur cap regulations have required ships to use fuel oil with a maximum sulphur content of 0.5% outside designated emission control areas. While the goal is clear—reduce air pollution and protect the environment—the path to compliance has introduced significant legal and operational challenges for shipowners and operators.
Understanding these challenges is essential for companies seeking to maintain compliance while minimizing legal exposure and operational disruption.
Key Legal Challenges in IMO 2020 Compliance
- Fuel Switching and Operational Complexity
Ships often switch between high-sulphur and low-sulphur fuels depending on the region. Fuel switching requires careful planning, precise execution, and crew training to prevent engine damage or non-compliance.
From a legal standpoint, improper switching or inadequate documentation can result in penalties if authorities cannot verify compliance through bunker delivery notes or logbook records.
- Fuel Quality and Supplier Risks
Low-sulphur fuels vary widely in quality. Fuel contamination, incorrect blends, or incompatible grades can create compliance issues and engine problems.
Shipowners must ensure contracts with fuel suppliers clearly define fuel specifications and responsibilities. Failure to verify supplier compliance may result in legal disputes or regulatory penalties.
- Scrubber Installation and Regulatory Approval
Some vessels install exhaust gas cleaning systems (scrubbers) to continue using high-sulphur fuel. While scrubbers allow regulatory compliance, installation requires prior approval, periodic maintenance, and monitoring.
Non-compliance with scrubber operation requirements—such as improper wash water discharge—can trigger enforcement actions and legal challenges, especially in jurisdictions with stricter environmental regulations.
- Documentation and Compliance Audits
Authorities routinely inspect vessels for IMO 2020 compliance. Essential documentation includes bunker delivery notes, fuel logs, and engine records.
Incomplete, inconsistent, or inaccurate documentation can lead to fines, detentions, or even litigation. Companies must maintain robust internal audit systems to ensure records are accurate and accessible.
- Enforcement and Penalties
Legal exposure arises from the complex patchwork of international, national, and port state regulations. Penalties for non-compliance can include fines, vessel detention, or reputational damage.
Operators must stay updated on enforcement practices in different regions and ensure that internal policies meet or exceed local regulatory requirements.
Strategies to Mitigate Legal Risks
- Establish strict fuel procurement protocols with verified suppliers.
- Train crew in proper fuel switching procedures and scrubber operations.
- Maintain comprehensive and accurate fuel records, including bunker delivery notes and logbook entries.
- Conduct regular internal audits and compliance reviews.
- Seek legal guidance for contract clauses, liability allocation, and jurisdictional enforcement issues.
Proactive measures reduce the risk of regulatory violations and strengthen the company’s position in case of disputes.
Concluding Thoughts
IMO 2020 compliance is not just an operational challenge—it is a legal obligation. By managing fuel quality, switching practices, documentation, and scrubber operations carefully, shipowners and operators can reduce legal exposure while maintaining safe, compliant, and environmentally responsible maritime operations.
