BIMCO: Laggards could pay more for ballast water systems
Bottlenecks could lead to higher prices for ballast water management systems for vessels that wait to install systems, BIMCO warns. Compliance dates vary among ships, which was intended to spread out installations over time, but for ships that manage to delay compliance, September 8, 2024 is the final deadline.
Few industry players have installed a system so far, said BIMCO, and a last-minute rush could lead to bottlenecks and higher prices.
AS shipowners postpone the installation of ballast water management systems, it raises the likelihood of bottlenecks and higher prices when industry players are forced to comply with ballast water regulation’s final deadline in 2024, says BIMCO.
“Few players in the industry have installed ballast water management systems so far,” said Ashok Srinivasan, BIMCO’s manager of maritime technology and regulation, in the organisation’s monthly bulletin.
“Not only may the industry face bottlenecks if there is a last-minute rush to the yards or retrofitting locations, but it may also be much more expensive, as a sharp rise in demand could drive up prices,” he added.
Compliance dates under the International Maritime Organization's BWM Convention are linked to each ship’s International Oil Pollution Prevention Certificate renewal, which should be completed every five years.
Some ships have managed to postpone that renewal, pushing their installation of ballast water management systems back with it.
All ships will be required to comply with the convention before September 8, 2024, however, and the postponements signal a higher load at the tail end of the timeframe.