16/10/06 (NSTP)  - THE impending entry of the MARPOL Annex II and the International Bulk Chemicals Code effective 1 January 2007 that will affect all vessels engaged in the carriage of chemicals and vegetable oil is expected to create severe shortage of shipping space for palm oil shippers in Malaysia.

Effective 1 January 2007, all vessels that carry chemicals and oil like substances including vegetable oils in bulk will be subjected to substantive revisions of MARPOL 73/78 Annex II and the International Bulk Chemicals (IBC) Code.

Vegetable oil shippers, including shippers of palm oil in Malaysia are bracing themselves for potential shortage of shipping space as shipowners are also likely shift their preference to the carriage of chemicals with the entry of the new International Maritime Organisation-mandated regulation.

Freight rates for shipping palm oil are also likely to increase on account of the new regulations which shipowners must comply with added cost and well as because of short supply of ships.

Also, shipowners are also likely to deploy their ships in the trade to carry more chemicals that offers premium freight rates compared with the carriage of vegetable oils, including palm oil. - PortsWorld