Company: ASC
Filing Date: 2025-03-07
Form Type: 20-F
Source: 0001558370-25-002500
Chunk: 35

Company: Ardmore Shipping Corp
Filing Date: 2025-03-07
Form: 20-F
Item: Item 3
Chunk 35
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 by vessels (the “ IMO”) has imposed updated guidelines for ballast water management systems specifying the maximum amount of viable organisms allowed to be discharged from a vessel’s ballast water. All of our vessels currently comply with the updated guidelines of compliance. The cost of any non-compliance with these regulations may be substantial and may adversely affect our results of operation and financial condition.

In addition, United States regulations regulating ballast discharge are changing. In September 2024, the U. S. Environmental Protection Agency (the “ EPA”) finalized its rules specifying standards of performance for approximately 30 discharges. Prior to September 2026, the U. S. Coast Guard (the “ USCG” must develop corresponding implementation, compliance and enforcement regulations to those adopted by the EPA in 2024. The new regulations could require the installation of new equipment, which may cause us to incur substantial costs.

If we fail to comply with international safety regulations, we may be subject to increased liability, which may adversely affect our insurance coverage and may result in a denial of access to, or detention in, certain ports.

The operation of our vessels is affected by the requirements set forth in the IMO’s International Management Code for the Safe Operation of Ships and Pollution Prevention (“ ISM Code”). The ISM Code requires ship owners, ship managers and bareboat charterers to develop and maintain an extensive “ Safety Management System” that includes the adoption of safety and environmental protection policies setting forth instructions and procedures for safe operation and describing procedures for dealing with emergencies. If we fail to comply with the ISM Code or similar regulations, we may be subject to increased liability or our existing insurance coverage may be invalidated or decreased for our affected vessels. Such failure may also result in a denial of access to, or detention of our vessels in, certain ports. The United States Coast Guard and European Union authorities have indicated that vessels not in compliance with the ISM Code will be prohibited from trading in U. S. and EU ports, which could have an adverse effect on our business, results of operations and financial condition.

Our failure to comply with data privacy laws or misconduct by employees could damage our customer relationships and expose us to litigation risks and potential fines.

Data privacy is subject to frequently changing rules and regulations, which sometimes conflict among the various jurisdictions and countries in which we provide services and continue to develop in ways which we cannot predict. For example, the EU’s 2018 General Data Privacy Regulation (“ GDPR”), a comprehensive legal framework to govern data collection, processing, use, transfer and sharing