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ARTICLE · 13 JANUARY 2010

Cat Fines: A New Issue For Hull Insurers?

In recent years, environmental regulatory requirements have dictated that marine fuels should be low in sulphur, a major pollutant, largely responsible for "acid rain".

United KingdomTransport

Originally published October 2009

Article by Captain John L David of Marine Professionals and Benjamin Macfarlane of B.J.Macfarlane & Co.

In recent years, environmental regulatory requirements have dictated that marine fuels should be low in sulphur, a major pollutant, largely responsible for "acid rain". For example, in 2006 the US Environmental Protection Agency (EPA) promulgated its final rule implementing requirements for sulphur, cetane, and aromatics for highway, non road, locomotive, and marine diesel fuel produced in, imported into, and distributed or used in the rural areas of Alaska. Beginning June 1, 2010, diesel fuel used in these applications must meet the 15 ppm (maximum) sulphur content standard. Similar requirements exist in California and in the European Union. While this is good news for the environment, low-sulphur fuels present a twofold challenge to the shipping and insurance industries. Not only are they more expensive since they are the

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