Beruflich Dokumente
Kultur Dokumente
Authors:
Eugene van Rynbach (M), Herbert Engineering Corp.
Karl Briers (M), Herbert Engineering Corp.
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
1. Introduction
With the approval of the North American ECA at MEPC 60 last month and the one already in
effect in the Baltic Sea and most of the North Sea, ECAs have become a reality for ship owners
and operators and the impacts on ship design and operation will need to be considered going
forward. The North American ECA, illustrated above, will be along the coasts of Canada and the
USA, out to 200 NM. This ECA will go into effect on 1 August 2011, but fuel requirements will
not be enforced until 1 August 2012.
Since operation on heavy fuel oil (HFO) offered a significant cost savings most ships in the world
in the last few decades became unifuel ships that operated all the principal machinery full time on
a single heavy fuel with marine diesel oil (MDO) used only in special circumstances. While the
fuel processing and heating equipment necessary to operate full time on HFO was complex and
expensive, the savings were clear. That era will now be over as ECAs become adopted more
widely around the world. Ships in the future will need to become dual fuel ships, able to operate
equally on high viscosity, high density HFO outside the ECA, and low viscosity, low sulfur MGO
in the ECA. The change to dual fuel operation will affect all ships that operate on heavy fuel and
enter an ECA, both existing and new ships. Further impacts will likely occur when the allowed
sulfur limit for all fuels reduces to 0.50% sulfur in 2020, as currently required by Annex VI of
MARPOL.
Because of the need to change to lower sulfur fuel in the ECA, its implementation will have an
immediate effect on fuel costs and vessel routing, particularly in later years when distillate fuel
Operating Ships within Emission Control Areas (ECAs)
SNAME Symposium, 29 April 2010
pg 2
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
may be the only option to meet the 0.1% sulfur limit in ECAs. The first part of this paper
discusses the impacts of the ECA on vessel fuel costs. Besides the direct cost of burning higher
priced fuels, operation in an ECA also impacts the design of ships. The two main impacts are the
effect on fuel storage capacity and the effect on the design of the fuel transfer, purifying and
service systems and the equipment contained in those systems. This paper will discuss the design
impacts of both. Most ships today lack adequate storage capacity for a second fuel and guidance
will be provided on how much capacity is needed and on how to keep the two fuels properly
segregated. Besides having the proper fuels onboard, the fuel transfer, purifying and service
systems must have the proper fittings and equipment to operate safely and effectively with two
fuels onboard, particularly when the second fuel is a low viscosity, low sulfur fuel. Discussed
will be the required changes in fuel settling and service tanks, fuel transfer piping, fuel purifiers,
fuel service piping, fuel changeover valves and what equipment can be installed to reduce the
impact of low viscosity fuel. Other papers at this symposium cover the effects of the required low
viscosity, low sulfur fuels on the fuel switching process and its impact on operation and
maintenance of machinery. It should be noted that ships trading in California waters are already
required to burn distillate fuel within 24 miles of Californias coast. This has a similar affect on
the fuel service system equipment, but a relatively minor affect on the fuel storage issues.
pg 3
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
North American ECA
4.50% Sulfur prior to 1 January 2012 per Annex VI (prior to ECA)
3.50% Sulfur on and after 1 January 2012 per Annex VI (prior to ECA)
1.00% Sulfur on and after 1 August 2012 (enforcement date for ECA)
0.10% Sulfur on and after 1 January 2015
As can be seen, starting this year in the existing ECA and in mid 2012 when the North American
ECA becomes effective, Low Sulfur HFO (LSHFO) with sulfur content up to 1% can still be
used. This fuel may be hard to find in many ports and will cost more than conventional HFO,
however, operation using LSHFO will not have much of an impact on machinery and fuel system
operation. Regulation 14 contains requirements that low sulfur fuels be segregated from normal
fuels and that documentation be retained onboard indicating the sulfur content of the fuel and
records kept of the fuel quantities onboard at entering and leaving the ECA, time of fuel
switching, and written procedures on how to carry out switching. Therefore, starting with the first
effective dates of an ECA, a ship will have to start operating as a dual fuel ship, even though both
fuels are heavy fuel oil. Initially, this will impact fuel storage, segregation and capacity and fuel
transfer piping, but will not greatly affect machinery operation since viscosity and characteristics
of both fuels are similar.
Starting in January 2015 when the 0.1% sulfur limit comes into effect, besides the dual fuel
storage, segregation and capacity issues, there will also be a need to address the many issues
relating to operation of machinery on very low sulfur and low viscosity fuel.
Transatlantic
The following figures illustrate the mileages in the ECA for some sample transatlantic voyages
for both the normal great circle route and a revised route that minimizes mileage within the ECA.
In the tables following the figures are listed the total distance and distance within the ECA for the
Operating Ships within Emission Control Areas (ECAs)
SNAME Symposium, 29 April 2010
pg 4
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
great circle route and for the minimized ECA route, plus the difference in mileage between the
two routes. It should be noted the mileages given are single passage mileage and for a round trip
voyage the distance within the ECA will be double the indicated distance. As can be seen,
substantial reductions in mileage within the ECA are possible for US East Coast routes by revised
routing without a substantial penalty in increased distance. For US Gulf ports there is no easy
alternative routing to shorten the distance in the ECA because Cuba blocks entering the ECA
from the south. There are two ways a ship could reduce distance n the ECA on passage to the US
Gulf ports. It could potentially pass through the Bahamas and travel along the coast of Cuba
south of the ECA boundary to reduce distance in the ECA, but this may not be safe navigation
and will probably not be adopted. Secondly, to the west of Florida it could head south of the ECA
line, travel parallel to the boundary and then re-enter the ECA due south of its destination to cross
the ECA in the shortest manner. It is also considered unlikely this strategy will be adopted
because it means the ship will be switching fuel four times in a short period of time as it enters the
ECA to pass Florida, leaves the ECA in the Gulf and re-enters to arrive at its destination port.
Furthermore, the deviation distance will be significant, reducing the benefit of this deviation.
Figures 1 and 2 show routes that originate in the English Channel and go to the indicated US East
Coast ports. These routes cover most voyages from Northern Europe since most would pass
through the English Channel. The data for these routes are presented in Table 1. Table 2 has data
for routes originating from Gibraltar, which would cover most routes from Southern Europe. The
Gibraltar routes are not illustrated because they are similar to the English Channel routes.
pg 5
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
Distances
Distance
Distance Differences
Increase
Reduction
Total
Inside ECA
Total
Inside ECA
Total Dist.
ECA Dist.
[NM]
[NM]
[NM]
[NM]
[NM]
[NM]
New York, NY
2937
1212
3007
375
70
-837
Norfolk, VA
3101
1378
3151
225
50
-1153
Charleston, SC
3368
1672
3443
300
75
-1372
Houston, TX
4604
1309
4604
1309
Destination
Gibraltar
Total
Destination
Distance
Inside ECA
Total
Distance
Inside ECA
Distance Differences
Increase
Total Dist.
Reduction
ECA Dist.
[NM]
[NM]
[NM]
[NM]
[NM]
[NM]
New York, NY
3180
1090
3200
375
20
-715
Norfolk, VA
3335
417
3385
300
50
-117
Charleston, SC
3594
400
3735
290
141
-110
Houston, TX
4754
1261
4754
1261
pg 6
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
Transpacific
Similar to transatlantic routes, for transpacific routes to the US West Coast distance traveled
within the ECA can be reduced by a course deviation. Figures 3 and 4 below show the routes
from Shanghai to US West Coast ports, both the nominal great circle route and a revised route
with minimized ECA distance. The data for these routes are presented in Table 3 and similar data
for the route from Yokohama to US West Coast ports are given in Table 4. As can be seen, there
is much smaller reduction in ECA mileage to be gained by deviation to minimize ECA distance
for West Coast ports than for East Coast ports because ships approach the coast in a more
perpendicular direction. The reason for this is the configuration of the coast and the larger Pacific
Ocean changes the great circle route. Therefore, the deviation is a substantial percentage of the
reduced miles and this will affect whether it pays to travel the extra miles as will be discussed in
the fuel consumption and cost analysis.
pg 7
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
Distance
Distance
Shanghai
Distance Differences
Increase
Reduction
Total
Inside ECA
Total
Inside ECA
Total Dist.
ECA Dist.
[NM]
[NM]
[NM]
[NM]
[NM]
[NM]
Seattle, WA
5131
620
5156
400
25
-220
San Francisco, CA
5396
343
5446
250
50
-93
Los Angeles, CA
5699
491
5749
325
50
-166
Destination
Yokohama
Distance
Distance
Distance Differences
Increase
Reduction
Total
Inside ECA
Total
Inside ECA
Total Dist.
ECA Dist.
[NM]
[NM]
[NM]
[NM]
[NM]
[NM]
Seattle, WA
4276
666
4301
400
25
-266
San Francisco, CA
4536
353
4561
275
25
-78
Los Angeles, CA
4839
527
4864
350
25
-177
Destination
pg 8
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
pg 9
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
accept the later arrival. Later in the section there is discussion of how much of a speed up, if it
were possible, is needed to keep the same arrival time and the impact of the speed up on fuel cost.
It will be seen that speed up can also have a significant cost penalty. This analysis is based on the
cost impacts of using MGO in the ECA and will cover operation starting on 1 Jan. 2015. Up until
then operation on LSHFO is possible in the ECA, if available at 1.00% sulfur level, except in
coastal California. The cost difference between regular HFO and LSHFO is much smaller than
between regular HFO and MGO, so the below cost estimates would not apply. The cost impacts
of using scrubbers to allow continued operation on HFO, even after the implementation of the
ECA, are outside the scope of this analysis.
pg 10
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
Table 5 Small Ship - Impact of ECA on Fuel Consumption & Cost - English Channel
Vessel Speed
14 kts
Vessel Daily
Consumption
35.0 t/d
33.3 t/d
HFO
MGO
Impacts of ECA on Vessel Fuel Consumption and Cost from English Channel
Destination
New York, NY
Distance
Time
Consumption
(NM)
(hrs)
(tons)
($)
GC ECA Mileage
1212
86.6
120
$86,955
MGO
375
26.8
37
$26,904
MGO
Mileage Shifted to
outside ECA
837
59.8
87
$43,594
HFO
70
5.0
$3,646
HFO
70
12
-$12,811
MGO
1212
86.6
126
$63,125
HFO
70
5.0
$11,019
MGO
GC ECA Mileage
1672
119.4
165
$119,957
MGO
300
21.4
30
$21,523
MGO
Mileage Shifted to
outside ECA
1372
98.0
143
$71,458
HFO
75
5.4
$3,906
HFO
75
5.4
15
-$23,069
MGO
1672
119.4
174
$87,083
HFO
75
5.4
$9,805
MGO
GC ECA Mileage
1309
93.5
130
$93,914
MGO
1309
93.5
130
$93,914
MGO
Mileage Shifted to
outside ECA
0.0
$0
HFO
0.0
$0
HFO
$0
MGO
1309
93.5
136
$68,177
HFO
0.0
-7
$25,737
MGO
Item
If No ECA
Comparison- Min ECA
Route to no ECA
Charleston, SC
If No ECA
Comparison- Min ECA
Route to no ECA
Houston, TX
If No ECA
Comparison- Min ECA
Route to no ECA
Notes:
1.
2.
3.
4.
5.
Fuel Type
pg 11
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
Table 6 Mid-Size Ship - Impact of ECA on Fuel Consumption & Cost - English Channel
Vessel Speed
18 kts
Vessel Daily
Consumption
75.0 t/d
HFO
71.3 t/d
MGO
Impacts of ECA on Vessel Fuel Consumption and Cost from English Channel
Destination
New York, NY
Charleston, SC
Houston, TX
Item
Comparison - Min ECA
Route to GC ECA Route
Comparison- Min ECA
Route to no ECA
Comparison - Min ECA
Route to GC ECA Route
Comparison- Min ECA
Route to no ECA
Comparison - Min ECA
Route to GC ECA Route
Comparison- Min ECA
Route to no ECA
Distance
Time
Consumption
Fuel Type
(NM)
(hrs)
(tons)
($)
70
3.9
19
-$21,351
MGO
70
3.9
$18,365
MGO
75
4.2
25
-$38,449
MGO
75
4.2
10
$16,341
MGO
MGO
0.0
-11
$42,895
MGO
Table 7 Large Ship - Impact of ECA on Fuel Consumption & Cost - English Channel
Vessel Speed
22 kts
Vessel Daily
Consumption
125.0 t/d
HFO
118.8 t/d
MGO
Impacts of ECA on Vessel Fuel Consumption and Cost from English Channel
Destination
New York, NY
Charleston, SC
Houston, TX
Item
Comparison - Min ECA
Route to GC ECA Route
Comparison- Min ECA
Route to no ECA
Comparison - Min ECA
Route to GC ECA Route
Comparison- Min ECA
Route to no ECA
Comparison - Min ECA
Route to GC ECA Route
Comparison- Min ECA
Route to no ECA
Distance
Time
Consumption
Fuel Type
(NM)
(hrs)
(tons)
($)
70
3.2
26
-$29,115
MGO
70
3.2
12
$25,043
MGO
75
3.4
34
-$52,430
MGO
75
3.4
14
$22,283
MGO
MGO
0.0
-15
$58,493
MGO
pg 12
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
Table 8 Transatlantic Voyages Annual Impact of ECA Fuel Costs & Time for Deviation
Vessel Speed
14 kts
Vessel Daily
Consumption
35.0 t/d
HFO
33.3 t/d
MGO
Voyages
per year
Annual Fuel
Cost Impact
Extra time
per passage
Extra Time
per year
New York, NY
$11,019
$176,302
5.0
80.0 hrs
Charleston, SC
$9,805
$156,875
5.4
85.7 hrs
Houston, TX
$25,737
$411,790
0.0
0.0 hrs
Vessel Speed
18 kts
Vessel Daily
Consumption
75.0 t/d
HFO
71.3 t/d
MGO
Destination
Voyages
per year
Annual Fuel
Cost Impact
Extra time
per passage
Extra Time
per year
New York, NY
$18,365
$293,837
3.9
62.2 hrs
Charleston, SC
$16,341
$261,458
4.2
66.7 hrs
Houston, TX
$42,895
$686,316
0.0
0.0 hrs
Vessel Speed
22 kts
Vessel Daily
Consumption
125.0 t/d
HFO
118.8 t/d
MGO
Destination
Voyages
per year
Annual Fuel
Cost Impact
Extra time
per passage
Extra Time
per year
New York, NY
$25,043
$400,687
3.2
50.9 hrs
Charleston, SC
$22,283
$356,534
3.4
54.5 hrs
Houston, TX
$58,493
$935,885
0.0
0.0 hrs
Destination
Notes:
1. Based on fuel cost of $500 per ton for HFO and $725 per ton for MGO.
2. A round trip voyage has two passages in the ECA, one arriving in the USA and one departing from the USA.
An order of magnitude estimate can be made of the annual fuel impact costs of an ECA and the
annual extra passage time incurred because of the need to make a deviation to reduce the distance
traveled in the ECA. This information is shown in Table 8. The cost and time impacts for
passages originating from the English Channel are the basis for the annual cost calculations, but
the mileages in the ECA are similar for most transatlantic voyages so these numbers can be
generalized as order of magnitude estimates for most transatlantic voyages to a single port in the
US East Coast. Voyages to multiple ports within the ECA will have higher costs. The number of
transatlantic voyages a ship will make is very trade dependent, but for purposes of this analysis a
Operating Ships within Emission Control Areas (ECAs)
SNAME Symposium, 29 April 2010
pg 13
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
6 week round trip voyage is assumed or 8 voyages per year. Note that there are two ECA
passages in each round trip voyage (arriving in the USA and departing from the USA) so the
number of passages is 16 per year. This type of operation on a regular schedule is typical of
containerships, but can apply to other types of ships that may not go to the same ports but do have
regular voyages to and from the USA. The extra voyage time caused by a deviation to reduce
distance in the ECA has a cost as well, but since the daily costs of ships varies so much it is hard
to make an estimate that is applicable to most ships. Depending on the route, ship type and flag,
it can be on the order of no impact (where there is no extra time such as Houston) to about 50% of
the fuel cost for ships with high daily cost.
pg 14
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
Table 9 Small Ship - Impact of ECA on Fuel Consumption & Cost Shanghai
Vessel Speed
14 kts
Vessel Daily
Consumption
35.0 t/d
HFO
33.3 t/d
MGO
Time
Consumption
(NM)
(hrs)
(tons)
($)
25
1.8
-$3,023
MGO
25
1.8
$9,167
MGO
50
3.6
$776
MGO
-2
$6,744
MGO
50
3.6
-$660
MGO
50
3.6
$8,994
MGO
Destination
Item
Seattle, WA
San Francisco,
CA
Los Angeles,
CA
Fuel Type
Notes:
1. For San Francisco, lowest cost is direct route, not deviation to minimize ECA, so no mileage or time impact of ECA
2. Other notes same as Table 5.
Table 10 Mid-Size Ship - Impact of ECA on Fuel Consumption & Cost Shanghai
Vessel Speed
18 kts
Vessel Daily
Consumptio
n
75.0 t/d
HFO
71.3 t/d
MGO
Seattle, WA
San Francisco,
CA
Los Angeles,
CA
Distance
Time
Consumption
(NM)
(hrs)
(tons)
($)
25
1.4
-$5,039
MGO
25
1.4
$15,278
MGO
50
2.8
$1,293
MGO
-3
$11,240
MGO
50
2.8
10
-$1,099
MGO
50
2.8
$14,990
MGO
Item
Fuel Type
Notes:
1. For San Francisco, lowest cost is direct route, not deviation to minimize ECA, so no mileage or time impact of ECA
2. Other notes same as Table 5.
pg 15
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
Table 11 Large Ship - Impact of ECA on Fuel Consumption & Cost - Shanghai- Summary
125.0 t/d
HFO
Vessel Daily
Consumption
118.8 t/d
MGO
Impacts of ECA on Vessel Fuel Consumption and Cost from Shanghai
Vessel Speed
Destination
Seattle, WA
San Francisco,
CA
Los Angeles,
CA
22 kts
Item
Comparison - Min ECA
Route to GC ECA Route
Comparison- Min ECA
Route to no ECA
Comparison - Min ECA
Route to GC ECA Route
Comparison- Min ECA
Route to no ECA
Comparison - Min ECA
Route to GC ECA Route
Comparison- Min ECA
Route to no ECA
Distance
Time
Consumption
Fuel Type
(NM)
(hrs)
(tons)
($)
25
1.1
-$6,871
MGO
25
1.1
$20,833
MGO
50
2.3
13
$1,763
MGO
-4
$15,327
MGO
50
2.3
14
-$1,499
MGO
50
2.3
$20,441
MGO
Notes:
1. For San Francisco, lowest cost is direct route, not deviation to minimize ECA so no mileage or time impact of ECA
2. Other notes same as Table 5.
Table 12 Transpacific Voyage Annual Impact of ECA Fuel Costs &Time for Deviation
Vessel Speed
14 kts
Vessel Daily
Consumption
35.0 t/d
33.3 t/d
HFO
MGO
Voyages
per year
Annual Fuel
Cost Impact
Extra time
per passage
Extra Time
per year
Seattle, WA
$9,167
$110,000
1.8
21.4 hrs
San Francisco, CA
$6,744
$80,927
Los Angeles, CA
$8,994
$107,930
3.6
42.9 hrs
Vessel Speed
18 kts
Vessel Daily
Consumption
75.0 t/d
HFO
71.3 t/d
MGO
Voyages
per year
Annual Fuel
Cost Impact
Extra time
per passage
Extra Time
per year
Seattle, WA
$15,278
$183,333
1.4
16.7 hrs
San Francisco, CA
$11,240
$134,878
Los Angeles, CA
$14,990
$179,883
2.8
33.3 hrs
pg 16
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
Vessel Speed
22 kts
Vessel Daily
Consumption
125.0 t/d
HFO
118.8 t/d
MGO
Voyages
per year
Annual Fuel
Cost Impact
Extra time
per passage
Extra Time
per year
Seattle, WA
$20,833
$250,000
1.1
13.6 hrs
San Francisco, CA
$15,327
$183,924
Los Angeles, CA
$20,441
$245,295
2.3
27.3 hrs
Notes:
1. Based on fuel cost of $500 per ton for HFO and $725 per ton for MGO.
2. A round trip voyage has two passages in the ECA, one arriving in the USA and one departing from the USA
pg 17
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
Table 13 US West Coast to South Alaska & Hawaii - Impact of ECA on Fuel Costs
Vessel
Speed
Route
14 kts
Vessel Daily
Consumption
35.0 t/d
HFO
33.3 t/d
MGO
25
Impacts of ECA on Vessel Fuel Consumption and Cost US West Coast to South Alaska & Hawaii
Cost for
Annual
Distance
Time
Consumption
Fuel
Fuel Cost
Item
US West
Coast to
Hawaii &
South Alaska
(hrs)
(tons)
($)
($)
Short ECA
Route, no ECA
525
37.5
54.7
$27,344
$683,594
HFO
Short ECA
Route, with ECA
525
37.5
52.0
$37,666
$941,650
MGO
$10,322
$258,057
Cost Increase
for ECA
Medium ECA
Route, no ECA
700
50.0
72.9
$36,458
$911,458
HFO
700
50.0
69.3
$50,221
$1,255,534
MGO
$13,763
$344,076
Cost Increase
for ECA
Vessel
Speed
22 kts
Vessel Daily
Consumption
125.0 t/d
HFO
118.8 t/d
MGO
Voyages
per year
25
Impacts of ECA on Vessel Fuel Consumption and Cost US West Coast to South Alaska & Hawaii
Cost for
Annual
Distance
Time
Consumption
Fuel
Fuel
Cost
Item
US West
Coast to
Hawaii &
South Alaska
Fuel
Type
(NM)
Medium ECA
Route, with ECA
Route
Voyages
per year
Fuel
Type
(NM)
(hrs)
(tons)
($)
($)
Short ECA
Route, no ECA
525
23.9
124.3
$62,145
$1,553,622
HFO
Short ECA
Route, with ECA
525
23.9
118.1
$85,605
$2,140,115
MGO
$23,460
$586,492
Cost Increase
for ECA
Medium ECA
Route, no ECA
Medium ECA
Route, with ECA
700
31.8
165.7
$82,860
$2,071,496
HFO
700
31.8
157.4
$114,139
$2,853,486
MGO
$31,280
$781,990
Cost Increase
for ECA
pg 18
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
such as a need for timely arrival versus the ship will wait for the berth could outweigh the fuel
cost differences between the direct route and the minimal distance in ECA route. Typical ship
operators for whom schedule is of great importance are containership operators, who operate on
fixed schedules and may not be able to add hours to their passage times and maintain the same
overall voyage schedule. If possible, they may opt to speed up ships to make up the difference,
but many ships may already be operating at near full power and this would not be possible. There
is also the cost of the delay in terms of ship overall daily cost, such that there may be an overall
savings in vessel operating costs if it is sped up to maintain schedule because the extra cost of fuel
is less than the cost for the extra hours of ship time. The additional fuel costs to speed up a ship
to maintain schedule can be estimated and are presented for transatlantic voyages in Table 14. It
covers representative passages for the three sample ships for voyages between the English
Channel and New York, considered representative of transatlantic voyages. The additional power
required by speeding up the ship is calculated assuming a cubic speed power relationship. For
transpacific service there is little need to speed up the ship since the deviations are small.
Table 14 Transatlantic - Fuel Cost Impact when Speeding Up Vessel to Maintain Schedule
Route
English
Channel to
New York
Daily FO
Cons
FO Cons
Fuel Cost
(t/day)
(tons)
($)
209.8
35.0
306
$152,969
HFO
14.3
183.6
37.6
287
$143,696
HFO
14.3
26.2
35.7
39
$28,202
MGO
326
$171,898
Mileage
Speed
(NM)
(kts)
Without ECA
2937
14.0
2632
Inside ECA
375
Item
Hours
209.8
ECA Totals
Extra Cost of Fuel same arrival
English
Channel to
New York
$18,929
Without ECA
2937
18.0
163.2
75.0
510
$254,948
HFO
2632
18.4
142.8
80.5
479
$239,493
HFO
Inside ECA
375
18.4
20.3
76.5
65
$47,003
MGO
544
$286,496
163.2
ECA Totals
Extra Cost of Fuel same arrival
English
Channel to
New York
Fuel
Type
$31,548
Without ECA
2937
22.0
133.5
125.0
695
$347,656
HFO
2632
22.5
116.9
134.2
653
$326,581
HFO
Inside ECA
375
22.5
16.6
127.4
88
$64,096
MGO
742
$390,677
ECA Totals
133.5
$43,020
pg 19
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
A comparison is made in Table 15 between the extra costs of fuel for the three operating schemes
considered in this analysis. The first is taking a direct route through the ECA, the second is
deviating to minimize distance in the ECA while keeping constant speed and the third is deviating
the ship to minimize ECA distance, but speeding up to maintain schedule. The outcome of the
analysis is different for transatlantic and transpacific voyages. For transatlantic voyages, the
lowest cost option is clearly to make the deviation and accept the somewhat later arrival. If delay
is not acceptable, then the best option for keeping arrival time is to speed up the ship. For
transpacific voyages, the gain from deviation to minimize ECA distance is small, and if same time
arrival is needed, it is best to take the direct route through the ECA, rather than deviating and
speeding up to compensate. There may be intermediate solutions consisting of partial deviation to
save some on ECA fuel, while delaying the vessel less, that may be optimum for a particular
voyage. Since what is the best course of action is so dependent on circumstances, it is expected
there will soon be computer programs available where you can input much of the data considered
in this analysis, plus whatever ship hourly costs apply and the impacts of schedule changes on
port costs, to calculate the optimum solution for how to route the ship through the ECA and at
what speed.
Table 15Fuel Cost Impact Comparison of Speeding Up Vessel versus Constant Speed
Route
English
Channel to
New York
Shanghai to
Los Angeles
Nominal Speed
Deviation at
Constant
Speed - Hrs
14.0
Min ECA w/
Speed Up Same Arrival
5.0
$11,019
$23,830
$18,929
18.0
3.9
$18,365
$39,716
$31,548
22.0
3.2
$25,043
$54,158
$43,020
14.0
3.6
$8,994
$9,654
$14,384
18.0
2.8
$14,990
$16,090
$23,973
22.0
2.3
$20,441
$21,940
$32,691
pg 20
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
capacity to make at least two round trip voyages to North America (four passages), with the
possible exception of voyages to US Gulf ports, such as Houston. To reach Houston and other
US Gulf ports from the Atlantic requires a long passage within the ECA, and if a ship is only
making occasional calls at one of these ports, it seems unnecessary to store so much ECA fuel
onboard, and so minimum storage is based on two passages (voyage to and from the US port).
For ships which trade regularly to the US Gulf, having capacity for four passages would make
sense. That is why for Houston there are two recommended storage capacities shown in Table 16,
one based on two passages and one based on four passages.
Table 16 - Storage Capacity for LSHFO and MGO for North American ECA Operation
Route
English
Channel to
New York
English
Channel to
Houston
English
Channel to
Houston
Shanghai to
Seattle
Shanghai to
Los Angeles
US West
Coast to
South
Alaska &
Hawaii
Nominal
Speed
Per Passage
ECA LSHFO
Consumption
ECA MGO
Consumption
(kts)
(tons)
(tons)
14
39.1
37.1
18
65.1
22
No. of Passages
for Storage
Capacity
Minimum
Reserve
Recommended Storage
LSHFO
MGO
(tons)
(tons)
(tons)
105
261
253
61.8
225
485
472
88.8
84.3
375
730
712
14
136.4
129.5
105
650
623
18
227.3
215.9
225
1134
1089
22
309.9
294.4
375
1615
1553
14
136.4
129.5
105
378
364
18
227.3
215.9
225
680
657
22
309.9
294.4
375
995
964
14
41.7
39.6
105
272
263
18
69.4
66.0
225
503
489
22
94.7
90.0
375
754
735
14
33.9
32.2
105
240
234
18
56.4
53.6
225
451
439
22
76.9
73.1
375
683
667
14
54.7
52.0
70
289
278
22
165.7
157.4
250
913
880
Notes:
1. Minimum Reserve is 3 days daily fuel consumption except for Alaska & Hawaii where 2 days consumption is used as
reserve
The minimum required reserve and frequency of bunkering is up to operator requirements and
judgment. The figures listed in the table are just illustrative estimates. Minimum reserve of ECA
fuel for three days FO consumption is recommended for most ships because there may be a need
to extend operation within the ECA and to supply generators while in port. For ships in regular
Operating Ships within Emission Control Areas (ECAs)
SNAME Symposium, 29 April 2010
pg 21
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
trade to Alaska and Hawaii, minimum reserve is estimated as two days since those ships are
regularly in ports where bunkering is available.
In considering how the ECA fuel requirements will impact existing ships, Table 17 lists typical
fuel capacities for existing tankers, containerships and bulk carriers. Most existing ships are
designed to use MDO as the distillate fuel. As the requirement to use 0.1% low sulfur fuel comes
into effect, this can currently only be met by using MGO.
Table 17Typical Existing Ship Fuel Storage Capacities and Estimated ECA Fuel Required
Capacity
HFO
Ship Type/Size
Description
2500 TEU
Feeder Containership
6 HFO stor +
10 HFO stor +
Post-Panamax Containership
2 Sett + 2 Serv
9000 TEU
12 HFO stor +
Post-Panamax Containership
2 Sett + 2 Serv
50,000 DWT
2 HFO stor +
Panamax Tanker
1 Sett + 1 Serv
110,000 DWT
4 HFO stor +
Aframax Tanker
1 Sett + 1 Serv
160,000 DWT
4 HFO stor +
Suezmax Tanker
1 Sett + 1 Serv
300,000 DWT
4 HFO stor +
VLCC Tanker
2 Sett + 2 Serv
35,000 DWT
4 HFO +
Bulk Carrier
1 Sett + 1 Serv
Capesize
4 HFO +
Bulk Carrier
1 Sett + 1 Serv
3,200
1 Sett + 1 Serv
6000 TEU
Estimated LSHFO
(1)
or MGO for ECA
MDO
8,000
10,000
1,500
3,000
4,000
5,500
1, 500
4,000
Description
1 DO Stor
+ 1 Serv
2 DO Stor
+ 1 Serv
2 DO Stor
+ 1 Serv
1 DO Stor
+ 1 Serv
1 DO Stor
+ 1 Serv
1 DO Stor
+ 1 Serv
1 DO Stor
+ 1 Serv
1 DO Stor
+ 1 Serv
2 DO Stor
+ 1 Serv
300
600-800
400
800-1000
800
1200
150
250-400
250
400-600
350
500-750
450
600-850
100
250-450
350
500-750
(1): Lower capacity is for traveling to US East and West Coasts only. Larger capacity is for travel to US Gulf ports and for
occasional travel to multiple ports along the coast. Larger capacities also apply for Hawaii and Alaska because ships encounter the
ECA at both ends of the passage.
Most ship owners do not want to carry three types of fuel on the ship, so once the requirement to
operate on MGO comes into effect, the ship will convert to using only MGO as ECA fuel. This
means for all times when HFO is not used the ship should be capable of using MGO. In the right
hand column of Table 17 are estimated amounts of MGO or LSHFO (during initial years of the
ECA) required for operation in the ECA for these ships. The indicated quantities are derived
from the route specific estimates given in Table 16. The lower values are for operation
exclusively to the US East and West Coast ports and the larger values are for occasional operation
Operating Ships within Emission Control Areas (ECAs)
SNAME Symposium, 29 April 2010
pg 22
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
to US Gulf ports or if the vessel will call at multiple ports within the ECA. The higher values
would also apply for vessels that trade regularly between the US West Coast and Hawaii or
Alaska because they encounter the ECA twice each voyage. The estimated quantities for LSHFO
and MGO in Table 17 can also be used as guidance for new ships.
Existing Ships
Finding ways to achieve the required ECA fuel capacity on existing ships may be a challenge for
many. If a ship is not already set up for LSHFO capacity, existing HFO tanks can be converted to
LSHFO storage since existing fill and transfer piping and pumps can be used for both fuels.
Existing HFO storage tank heating capacity should be adequate for LSHFO. The use of LSHFO
is particularly easy when there are two HFO Settling and Service tanks, since one can be used for
regular HFO and the other for LSHFO. However, some ships have only single HFO Settling and
Service tanks, with the backup provided by MDO Settling and Service tanks. For those ships,
adding a second HFO Settling and Service tank is not normally feasible, and considering the use
of LSHFO will be allowed in the ECA for only 2.5 years (Aug 2012 to Jan 2015), it may not be
cost effective to add a tank. For ships with single HFO Settling and Service Tanks fuel switching
is still possible, but is more time consuming. For those ships the normal method is to reduce the
level of regular HFO in the Settling and Service Tanks to a low value, such as 20% of capacity,
and then refill with LSHFO prior to entering the ECA. The switch should be made far enough in
advance that the regular HFO is consumed prior to entry in the ECA. This will consume extra
LSHFO because of the need to start well ahead of the ECA. As required by the ECA regulations,
a procedure should be prepared describing the fuel switching process and careful documentation
maintained of fuel switching times and tank levels since it will not be obvious when the ship has
fully changed over to LSHFO. Starting in 2015 only distillate fuel will meet the ECA
requirements, so LSHFO will no longer be needed in the ECA, and the key issue will become the
distillate capacity of the ship.
Ships which are currently set up for storage and use of MDO can be converted to the storage of
MGO relatively easily. The difficulty arises with the operation of the machinery plant on MGO,
Operating Ships within Emission Control Areas (ECAs)
SNAME Symposium, 29 April 2010
pg 23
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
not with its storage. MDO filling, storage and transfer systems can be used for MGO. If there is
inadequate existing storage onboard, this becomes more difficult to address. The primary way to
do this is to convert some tanks from some other liquid to MGO. Since MGO does not require
heating non-fuel tanks can be changed to MGO storage or new tanks created from voids or holds.
HFO fuel tanks can also be changed over to MGO storage or designed for dual use, either HFO or
MGO. Particularly when planning to fill a tank with MGO that was previously filled with HFO,
adequate safeguards should be put in place to segregate the MGO from HFO contamination (such
as separate suction/fill connections to the tank for HFO and MGO). After emptying HFO from a
tank to be converted to MGO, thorough cleaning of the tank and any piping used with both fuels
should be carried out before bunkering MGO. When adding storage capacity to a ship for
sustained operation on MGO the following issues should be considered:
1. Evaluate whether the diesel oil (DO) transfer pump has adequate capacity for the larger
quantity of DO to be stored onboard.
2. Evaluate whether the diesel oil fill pipes are large enough for the larger quantities to be
taken onboard.
3. Evaluate whether a DO purifier is needed because of sustained operation on MGO.
Having a single HFO purifier suitable for DO purification may not be suitable since if it
fails there is no way to purify MGO. While MGO is a relatively clean fuel, it is still risky
to operate without purification.
4. Evaluate how a second DO service tank can be added as a backup in case of
contamination of the primary DO service tank. One of the existing DO storage tanks can
probably be converted to a second service tank or to act as a settling tank for purification
purposes. Class rules require two DO fuel service tanks for dual fuel ships. This rule is
intended for ships which operate diesel generators on distillate fuel only and its
interpretation for ships operating with dual fuels in an ECA needs to be clarified.
However, depending on the HFO service tank as the standby fuel source when in an ECA
can lead to fines for the ship if it is forced to change to HFO because of problems with the
MGO, so it is not recommended. It should also be remembered that switching from MGO
to HFO cannot be done rapidly, and will not allow for the immediate response that may be
necessary when in coastwise/harbor areas to avoid collisions or groundings.
5. Any new MGO tanks should not have more than limited contact area with heated HFO
tanks, since heating the MGO can excessively reduce its viscosity and generate excessive
amounts of fumes from the tank vents.
pg 24
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
the fuel switch was completed (outside the ECA). It also allows better demonstration that the fuel
was uncontaminated and met the required sulfur level since only the sulfur level as bunkered need
be considered, without any consideration of the effects of mixing beyond the short period of time
for switching. The following changes to the engine fuel systems should be considered before
starting sustained operation on MGO in an ECA. These are only a few of the issues involved and
knowledgeable and experienced persons should be brought in to make an evaluation on what
changes are needed for any particular ship. For boilers the change to MGO raises other issues and
changes in fuel system design and boiler operation need to be separately considered.
1. Fuel supply and circulating pump capacities need to be checked for their ability to pump
low viscosity fuel. Many pumps lose capacity with low viscosity fuel and may need to be
replaced to allow full power operation. Proper lubrication of rotating parts must also be
considered.
2. Consider adding an MGO Chiller or Cooler for operation on low viscosity MGO,
particularly while in summer or tropical conditions. A means of cooling MGO is needed
because its viscosity can become less than engine maker allowed lower limits at
temperatures above 40 C at the engine inlet, which is possible in high ambient conditions
considering fuel is recirculated through the hot engine (except on common rail engines).
An MGO Cooler that uses the central fresh water cooling water as the cooling medium
may not be adequate, since the cooling water temperature is usually set to 36 C, which is
too high when trying to cool fuel below 40 C. A Chiller with a refrigeration system is
better, since it can cool the fuel down to 20 C to 25 C. It should also be noted that a new
revision of the ISO Fuel Specification 8217 has modified the minimum viscosity of MGO
Category ISO-F-DMA to be 2.0 cSt at 40 C (was 1.5 cSt at 40 C) and added a new
MGO category ISO-F-DMZ that is identical to DMA, except that it has a minimum
viscosity of 3 cSt at 40 C. If DMZ fuel becomes widely available there may not be a
need for an MGO Chiller.
3. Consider if the size of the fuel mixing tank is adequate since a small tank, as used on
newer ships, means the fuel is quickly recirculated through the tank so changes in
viscosity will happen quickly when changing from high viscosity HFO to low viscosity
MGO or vice versa. This can cause viscosity shock to the engine unless the main engine is
slowed down significantly to extend the time for fuel switchover.
4. A similar issue is the rate of fuel temperature change that occurs during the switching
process. Engine makers recommend 2 C per minute as the maximum rate of fuel
temperature change, and if fuel switching is done too quickly the rate of temperature
change will exceed that value as fuel temperature is rapidly adjusted by the viscometer to
keep the quickly changing viscosity within limits.
5. For the reasons discussed in the previous two items, a simple 3 way valve for fuel
switching may be difficult to properly manage manually and an automated fuel switching
system, such as the MAN diesel switch or similar, is needed. This type of system controls
the fuel source changeover and slowly switches from one to the other, while it keeps the
Operating Ships within Emission Control Areas (ECAs)
SNAME Symposium, 29 April 2010
pg 25
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
temperature rate of change and viscosity within limits by also controlling the fuel heaters
and MGO chiller, if provided.
6. As a separate but similar issue, for a slow speed engine a dual cylinder oil system should
be considered so two types of cylinder oil can be stored and supplied to the engine to suit
the two types of fuel.
pg 26
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
Figure 5 Fuel Transfer System for the New Dual Fuel Ship
Figure 6 shows the recommended fuel purification system for a new ship. A DO purifier is
indicated, since just depending on one HFO purifier to also purify MGO is probably not adequate
since no MGO purification will be available if it fails. There may also be a need for operating
both HFO purifiers for HFO purification, leaving neither available for MGO purification.
Regarding the fuel service system, all the items discussed for existing ships in the previous
section should be incorporated into a new ship. They should be easier to install as there are fewer
restrictions in adopting them.
pg 27
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
Figure 6 Fuel Purifying & Service System for the New Dual Fuel Ship
8. Conclusions
The following summarizes some of the key impacts of the adoption of the ECA on ship operation,
fuel costs and fuel storage and handling systems:
Vessel Routing will need to be optimized to minimize distance traveled in the ECA,
considering impacts on vessel schedule and operating costs of any deviations.
When 0.1% sulfur fuel is required starting in 2015, per voyage fuel cost impacts (into and
out of the ECA) can be on the order of $10,000 to $80,000 depending on port, route and
ship daily consumption. In the period of 2012 to 2015, when LSHFO is permitted in the
ECA, except California, the cost impact will be much less.
Annual fuel cost impact can be on the order of $75,000 to $900,000 for ships on regular
voyages into and out of the ECA starting in 2015.
pg 28
Fuel Storage & Handling Costs and the Costs of Operating in ECAs
For ships with multiple port calls in the ECA or in coastwise trade fuel cost impact will be
higher.
The Unifuel ship of the recent past will have to become the Dual Fuel ship of the future.
Substantial increases in ECA compliant fuel storage capacity will be needed on most
ships, both existing and new.
Changes will be needed to most ships fuel transfer, purifying and service systems to
operate on the newly required low sulfur, low viscosity fuels.
The analysis presented in this report shows how the advent of ECAs will impact ship operations
including vessel routing, schedules and machinery operation and will require increased focus on
safety and training so crews can carry out the potentially risky fuel switching process when
entering and leaving the ECA and safely operate with the newly required low sulfur fuels. These
are the realities of a modern world ever more focused on maintaining environmental standards as
the pressure of increasing world population and pace of business place ever greater strain on the
environment. The ship designer, owner and operator need to be aware of the impacts of these
changes and plan ahead to address them in a timely and efficient manner in order to successfully
make the transition to the new era of heightened environmental awareness at sea.
pg 29