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www.autofile.co.nz AUGUST 2018 THE TRUSTED VOICE OF THE AUTO INDUSTRY FOR MORE THAN 30 YEARS Changes in shipping Specialised training that’s fuel to hike up costs proven to increase profits Overheads are to jump substantially in 2020 with a global cap on sulphur levels applying to vessels – including car carriers Agency tackles Takata recall shipping company warns price increases to customers. not exceeding 0.5 per cent – down there will be a major The regulatory change has from the current maximum of increase in charges been reconfirmed by the IMO as 3.5 per cent. becauseA of a mandatory change in going ahead on schedule despite Low-sulphur fuel costs about p 6 the type of fuel that can be used continuing concerns as to whether 50 per cent more than bunker fuel, across the industry. sufficient quantities of compliant which is also known as residual International Maritime fuel will be available. fuel oil. It is most commonly used Highlights from Organisation (IMO) by vessels within ECAs speed festival A pure car carrier with its rules being adopted by unloaded vehicles dockside in North America and 174 member states – of at Ports of Auckland north-west Europe which New Zealand is with a sulphur content one – mean there will a of 0.1 per cent or less. p 18 global cap on sulphur Hans Corporaal, in marine fuel from group general January 1, 2020. manager at Armacup Early adopters There are likely Maritime Services, told share data to be severe knock- Autofile: “We need to on effects for many do more research in industries, including terms of IMO 2020, automotive, because which is the agreement p 20 of the costs involved. The worldwide sulphur cap is the majority of countries must The enforced use of low- required under amendments to comply with and use low-sulphur p 22 sulphur fuel, which is vastly the Marpol Convention, which was fuel in international waters. more expensive and in short agreed a decade ago. “At the moment, bunker fuel supply compared to “bunker” fuel They require all ships trading has high sulphur levels and is a side currently used, means operators outside emission control areas product from the oil-refinery process. of all ships – including pure car (ECAs), which are near coastlines, It’s literally bottom of the barrel with carriers – will have to pass on to use fuel with a sulphur content lower grades being asphalt. What From shop floor to boss [continued on page 4] GLOBAL VEHICLE LOGISTICS NZ - JAPAN - AUSTRALIA - UK - EUROPE Tel: +64 9 825 0888 www.jacanna.co.nz Call Steve Owens now on 021 947 752 GUEST EDITORIAL It’s time to throw the book at them DIRECTORS EdITOR Brian McCutcheon Darren Risby [email protected] [email protected] ph. 021 455 775 Greig Epps says enforcing existing law JOURNALISTS Darren Wiltshire Sue Brebner-Fox is better than bringing in new legislation [email protected] [email protected] ph. 021 0284 7428 Lucy Pink bviously, when will eventually spot a [email protected] DESIGNER we refer to problem and make the call Adrian Payne MOTORSPORT “them”, we mean for a review of legislation. [email protected] Mark Baker theO “bad guys”. In many cases, adequate [email protected] Most dealers are laws already exist. But Autofile magazine is also available online as a readable file or downloadable as a PDF. law-abiding and try their rather than move to apply Subscriptions are available at Autofile Online – www.autofile.co.nz. Back copies are best to comply with greater enforcement also available on the website. a vast range of legal action, it often seems the Copyright: Published monthly by 4Media Ltd, PO Box 6222, Dunedin 9059. GREIG EPPS requirements. They are preferred option is to draft All statements made, although based on information believed to be accurate and Motor Trade Association good corporate citizens, new laws. And so the cycle reliable, cannot be guaranteed, and no liability can be accepted for any errors or omissions. Reproduction of Autofile in print or digital format in whole or part without paying wages and taxes, repeats itself. written permission, whether by copying or any other means, is strictly forbidden. and doing their best to run good, This scenario is playing out All rights reserved. ethical businesses. to some extent with yet another ISSN 0112-3475 (print) ISSN 2350-3181 (online) But some aren’t so review of the Credit Contracts and conscientious and push the limits. Consumer Finance Act. It came into It could be a mix of being unaware effect in 2004 and the latest review or a calculated strategy. is the third attempt to get it right. And here lies the problem – The current problem is there low enforcement levels mean are many people who are being perpetrators often get away with “preyed upon” by unscrupulous Vehicle Inspection NZ it. Others around them see their lenders, but rather than focus on activities and in the absence of boosting enforcement across the any visible controls they may problem area the government be tempted to follow the same is again going down the track of Entry Certification practices. Poor practice can looking to tighten the laws. become common place. A downside of regulatory specialists In the vehicle sales space, an change is that it takes time to example of this can be found in a complete and sometimes new laws recent decision against a dealer, result in unintended consequences. who was using the phrase “as An example of this is where is, where is” to avoid Consumer some commentators are now Guarantees Act obligations. saying that efforts to tighten the Such use isn’t that unusual. It’s lending rules during the prior surprisingly common how often review served to restrict access for dealers have called our offices people with poor credit profiles, seeking clarification about whether and unintentionally pushed those the phrase can indeed be used for borrowers toward the high-risk and that purpose. high-cost part of the market. Obviously, it can’t. But the mere Why not enforce the existing fact they have called suggests they laws with a focus on the may have been so influenced by unscrupulous sector? After all, the practices occurring around them mainstream credit market is not • Entry Certification for imported cars • Vehicle Appraisals • Pre-Purchase Inspections • WoF • CoF • Road User Charges and have started to question their littered with complaints or stories • Registration & relicencing • Exhaust emission testing own understandings. of abuse, and – needless to say – The law needs to be seen to be similar criticisms about a lack of enforced, otherwise it loses effect. visible enforcement are also evident 0800 GO VINZ VINZ.CO.NZ Tel: +64 9 825 0888 www.jacanna.co.nz Often someone in government in the repair and service sectors. www.autofile.co.nz 3 news [continued from page 1] we burn in ships cannot be put into t diesel cars, for example.” Corporaal notes 0.1 per cent low-sulphur fuel currently trades at about US$200 a tonne more than standard bunker fuel, but is unavailable in the vast quantities that will be required post January 1, 2020. “At this point in time, we have no idea what the impact on the fuel market will be,” he adds. An Armacup vessel berthed at Ports of Auckland One of the bottom lines is that importers of new and used motor from happening. If there’s no plan or middle distillate, which is facilities are thin on the ground. vehicles will have higher shipping in place by mid-2019, we all will essentially automotive diesel. While zero-emissions fees to build into their business have a challenge. That will require about two technologies, such as hydrogen fuel models – in addition to the extra “Ultimately, costs will have million barrels of lower-sulphur cells and battery-electric systems, cost of protecting New Zealand’s to come out of the cargo side fuel a day more. It’s unclear if the are powering ferries and research border from biosecurity threats. because shipping companies world’s refiners can shift so fast. vessels, they aren’t yet ready to be All of this will be on top of cannot absorb them. When A small percentage of ships deployed on the massive scale of higher compliance costs caused low-sulphur fuel is required to are expected to run on liquefied ocean-going freighters. by the import health standard in be used, a number of countries, natural gas (LNG), which has only Another option to using the wake of the stink-bug crisis. including New Zealand, may be recently made in-roads in the low-sulphur fuel is for shipping “IMO 2020 is definitely going unable to supply it.” marine market. companies to have scrubbers ahead and January 2020’s not The new rules won’t make Replacing bunker fuel with LNG installed in their vessels to hit far away,” says Corporaal. “If bunker-fuel production dry may reduce sulphur and nitrogen- the 0.5 per cent target. These something is, let’s say, four years up. Instead, refiners may blend oxide emissions by 90-95 per cent use water to wash exhaust gases away, it’s not so urgent. each barrel with about three of and carbon-dioxide emissions from on-board systems to remove “But this is only 17 months lower sulphur – principally gasoil by 20-25 per cent, but supply sulphur dioxide. Background Check Give potential buyers peace of mind. Link your MotorWeb VIRs to your Trade Me listings today! Call 0800 668 679 or email us at [email protected] www.motorweb.co.nz 4 www.autofile.co.nz news t While potentially cost-effective, Vehicles dockside at Ports of Auckland EXTRA FEES FOR FUEL it seems unlikely.