Length: 3200 words ± 10%
Task description & requirements
From 1 January 2020, all ships operating anywhere in the world will be required to use fuel which contains a maximum sulphur content of 0.5% m/m (mass by mass), as agreed by the International Maritime Organisation (IMO).
Consider the impact of the new IMO requirement on three shipping companies listed below.
1.
Pelican Shipping Australia (PSA)
is an Australian company engaged in coastal trade between ports in Northern Territory, Queensland and Western Australia. The company operates a fleet of five general cargo ships. All five ships are under 2000 gross tons each.
2.
Hercules Bulk Carriers (HBC)
is a Greek company operating a fleet of 15 Capesize bulk carriers. The ships operate worldwide under individual voyage and time charters.
3.
Orchard Container Line (OCL)
is a Singaporean company operating a fleet of 60 container ships of various sizes. The company is part of a global alliance and operates its ships mainly in line-haul east-west trades between East Asia, Europe and North America.
Complete the following two tasks with reference to PSA, HBC and OCL.
Task 1 (Value 17%)
Identify the likely
technical management
and
commercial management
challenges faced by the three shipping companies in meeting the new sulphur content requirement.
Task 2 (Value 18%)
Recommend an appropriate strategy for each of the three shipping companies to ensure compliance with the new sulphur content requirement. Your answer must include justification for each recommendation.