Emergency Contact Legal Costs Cover and IMO 2020 Home Latest updates News Legal Costs Cover and IMO 2020 5 Mar 2020 Download Sign up for alerts Members will be aware, that from 1 January 2020, the MARPOL permitted limits for sulphur content in vessels’ bunker fuel were reduced from 3.50% mass by mass (m/m) to 0.50% m/m for vessels operating outside designated Emission Control Areas ('Global Sulphur Cap'). The Club anticipates that the implementation of the Global Sulphur Cap will result in an increased number of commercial disputes between Members and associated parties, including charterers, bunker suppliers, and fitters of scrubbers and the costs associated with such disputes can be high. The Club’s Legal Costs Cover (LCC) provides cover for Members’ legal fees and other related costs, in pursuing or resisting claims which arise out of these disputes. This article highlights some of the potential types of disputes that the Club expects to arise over the coming months and outlines how LCC can respond. Disputes over bunker quality With the 2020 Global Sulphur Cap now in force, the demand for low sulphur fuel has increased. Inevitably, there have been concerns about the quality of certain blends of low sulphur fuel. The blends often have increased levels of catalytic fines (cat fines), which can embed in the soft metal surfaces in engines and act as an abrasive, escalating the rate of wear of engine components.  Furthermore, there are also concerns about the stability levels of blended low sulphur fuel and the risk that asphaltene content may precipitate out of solution. This can form sludge in engines, which can block engine filters and pipes. Typically, under most time charterparties, it is time-charterers’ “absolute” obligation to provide bunkers that are of reasonable general quality and suitable for the vessel’s engines. The charterparty may also include an express provision stipulating the grade and type of fuel to be supplied is to be in conformance with