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KPI OceanConnect: Counterparty risk assessment in an era of market transformations

Partnering with a transparent, innovative partner is beneficial for shipowners and operators looking to be guided through the evolving market towards decarbonise.
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Charley Davies, Director at international bunkering firm KPI OceanConnect, on Tuesday (14 December) published an opinion piece about the underappreciated challenge of counterparty risk during the market transformation towards decarbonisation. The article covers four core areas: counterparty risk, digitalization, future fuels and sustainability; and carbon offsetting.

Counterparty risk and the role of the trader

There is already a growing portfolio of fuels for shipowners to choose from, and picking the right one for each vessel requires financial and technical analysis. Alongside this evolution, there’s an increased need for counterparty risk assessment.

For some, it will be mostly related to capital access or claims handling and while for others there will be a greater focus on the transparency requirements that enable access to credit and insurance. There’s no doubt that the importance of working with a trusted partner and – most importantly – asking them the right questions is becoming more prominent in this era of marine decarbonization and as we continue to innovate with digital tools.

Digitalisation and the era of advanced technology

Digitalisation will be an important contributor to success moving forward. One of the core advantages of digitalization is its ability to streamline processes and enhance productivity. Though electronic workflows are commonplace in many areas of shipping, there are still endless opportunities in the marine fuels space.

At the forefront of this technology is our digital marketplace for marine fuels: KPI AuctionConnect. The platform provides full transparency to our counterparts. Buyers see prices drop in real time, and they can choose the most suitable fuel for their vessel.

The whole auction lasts up to 15 minutes, and the buyer has full access to the quality certificates and fuel analysis. 

The instant messaging between counterparts builds further on transparency, while ensuring clear communication between both sides.

With many countries continuing to prioritise remote working and relying upon online shopping, KPI AuctionConnect has achieved good traction. 

This further reinforces the need for digital tools, and KPI OceanConnect is in a leading position to provide the right solutions to support the bunkering industry on its journey towards a greener future. Digitalisation can support the transition towards a low-carbon future by enabling transparency and trust between counterparts, especially at a time where we start to explore different marine fuels.

Future fuels

There’s unlikely to be one dominant fuel in the coming transition. Container lines will have a much clearer sense of where and when they will need to bunker because they often operate on fixed routes, and can invest accordingly. However, those in the tramp trades are likely to face substantially more complexity in their marine fuels procurement and planning.

To thrive in this new market transformation, ship owners and operators will need to work with experienced marine fuels services providers and trusted counterparties that know their markets inside and out. Moreover, they’ll want to prioritise a partner that has a consultative approach, as well as the financial strength, independence, and flexibility to provide the right solutions to meet their current and future demands.

We’re fully committed to this sustainable transition, and are the first marine fuels company to set up an Alternative Fuels and Special Projects division. This has already been acknowledged by several clients and prospective partners who have recognised the need to augment their in-house knowledge. It’s been an exciting year for KPI OceanConnect as we have continued to recognise and implement impactful solutions that reduce carbon emissions from the shipping industry.

Carbon offsetting

In our conversations with clients, there’s an almost uniform desire to reduce their carbon footprint. However, in many cases, it’s not yet operationally feasible for them to decarbonize as rapidly as they would like. Green fuels, for example, are only available at scale in a small number of ports. Similarly, many vessels’ engines are only capable of using traditional marine fuels.

The shipping industry will become incrementally subject to the EU’s Emissions Trading System (ETS) under its “Fit for 55” proposals, possibly as early as 2023. The ETS will apply to intra-EU shipping as well as to ships calling at EU ports whose voyages start or end outside of the EU. Under the current proposals, shipping companies will need to surrender allowances for all intra-EU voyages and half for those which are global.

To meet this demand for progress, we launched our carbon offset program. Carbon offsets enable emissions and CO2 output to be balanced with the purchase of an equivalent offset that funds certified projects that generate clean and renewable energy. Moreover, it’s a “now” and “then” strategy because it supports the scale-up of renewable energy projects that can lead to the production of zero-carbon fuels.

In July 2021, we were one of the first marine fuels companies to complete a carbon offset transaction, which we did with an American seismic research vessel owner and long-term client. The voluntary carbon units were derived from a wind farm in Texas and verified by Verra Registry.

We expect more ship operators to offset their fossil fuel use while new fuel availability is limited. In the medium-term, we anticipate that offsets will remain important as the global fleet gradually transitions to engines that are future fuel compatible, and because many new fuels are likely to not be fully carbon neutral.

This reinforces the need to work with a trusted partner as we transition towards low-carbon energy to meet our 2030 and 2050 targets. Partnering with a transparent, innovative partner is hugely beneficial for shipowners and operators looking to be guided through the evolving market on the journey to decarbonisation. 

 

Photo credit: KPI OceanConnect
Published: 15 December, 2021

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Alternative Fuels

MPA and MSC ink MoU to support adoption of alternative bunker fuels

MPA and MSC will explore new routes and services to strengthen connectivity, support the adoption of alternative marine fuels such as bio-LNG, and advance technologies to improve vessel energy efficiency.
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MPA and MSC ink MoU to support adoption of alternative bunker fuels

The Maritime and Port Authority of Singapore (MPA) on Wednesday (3 June) said it signed a Memorandum of Understanding (MoU) with MSC Mediterranean Shipping Company to strengthen collaboration in maritime decarbonisation, digitalisation, innovation, and manpower development. 

The MoU was signed on 25 May 2026 by Mr Ang Wee Keong, Chief Executive of MPA, and Mr Soren Toft, Chief Executive Officer of MSC.

The MoU underscores the shared commitment of MPA and MSC to foster a sustainable, digital, and future-ready maritime sector, while enhancing MSC’s operational and business activities in Singapore. This year also marks the 30th anniversary of MSC establishing its Asia Regional Office and local office in Singapore.

Under the MoU, MPA and MSC will explore new routes and services to strengthen connectivity, support the adoption of alternative marine fuels such as bio-LNG, and advance technologies to improve vessel energy efficiency and operational performance.

MPA and MSC will also collaborate on maritime digitalisation initiatives to improve operational efficiency, including streamlining vessel arrivals and port operations. 

On manpower development, MSC will support internship and scholarship opportunities through Singapore Maritime Foundation’s Maritime Outreach Network (MaritimeONE) platform, an industry-led tripartite partnership comprising industry, government and institutes of higher learning that aims to raise awareness of the maritime industry and attract quality talent into the maritime sector.

Mr Ang Wee Keong, Chief Executive of MPA, said: “This partnership reflects the strong collaboration between MPA and MSC in driving sustainability and digitalisation in the maritime sector. By working together on decarbonisation, operational efficiency and talent development, we aim to strengthen Maritime Singapore’s position as a trusted and future-ready global maritime hub.”

Mr Soren Toft, Chief Executive Officer of MSC, said: “Singapore is a strategically important hub for MSC and a key gateway to the broader Asia region. As we mark 30 years in Singapore, this MOU reinforces our long-term commitment to strengthening our presence here. MSC and Singapore are closely aligned on the priorities shaping the future of global shipping, and we look forward to deepening this partnership to drive the continued growth and resilience of the maritime industry.”

 

Photo credit: Maritime and Port Authority of Singapore
Published: 4 June, 2026

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Methanol

Seaspan and Hapag-Lloyd complete first of five methanol vessel retrofit

Following “Seaspan Yangtze”, the remaining vessels planned for retrofit under the methanol retrofit programme are “Seaspan Amazon”, “Seaspan Ganges”, “Seaspan Thames”, and “Seaspan Zambezi”.
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Seaspan and Hapag-Lloyd complete first of five methanol vessel retrofit

Seaspan Corporation (Seaspan) and Hapag-Lloyd on Wednesday (3 June) announced the successful completion of the first of the five vessel conversions under their methanol retrofit programme with the delivery of Seaspan Yangtze.

From the early SAVER (Seaspan Action for Vessel Energy Reduction) programme to today’s CleanBlue initiative, Seaspan has committed over USD 230 USD million across 86 vessels, executing more than 550 efficiency and retrofit projects.

Following Seaspan Yangtze, the remaining vessels planned for retrofit under the programme are Seaspan Amazon, Seaspan Ganges, Seaspan Thames, and Seaspan Zambezi. Each retrofit is expected to reduce well-to-wake CO₂e emissions by approximately 30,000 to 50,000 metric tonnes per vessel annually when operating on low-carbon methanol, while also extending vessel lifespan and enhancing fuel flexibility.

“Decarbonisation is not just about building the fleet of tomorrow, it is also about unlocking the full potential of the fleet we have today. Retrofitting and upgrades on existing fleets play a practical, immediate, and economical role in accelerating shipping’s decarbonization journey,” said Bing Chen, Chairman, President and CEO of Seaspan. 

“Project SAVER CleanBlue highlights Seaspan’s strong customer partnerships, deep technical expertise, and unique platform integrated with JV partners, such as WattSpan Maritime Technology, in executing complex and large-scale retrofit projects.”

“The successful conversion of the Seaspan Yangtze together with the planned retrofit of its four sister vessels is another important step on our ambitious path towards net-zero fleet operations by 2045,” said Silke Lehmköster, Managing Director, Fleet, Hapag-Lloyd. 

“Together with Seaspan, we are demonstrating that retrofitting existing vessels for low-carbon methanol can be a practical way to reduce emissions in shipping.”

 

Photo credit: Seaspan
Published: 4 June, 2026

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Nuclear

South Korean-led nuclear car carrier design secures LR backing

LR is working with HHI, KSOE, Hyundai Glovis, G- Marine Service and KAERI on a joint development project exploring an advanced small modular reactor (SMR) installation on a PCTC.

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South Korean-led nuclear car carrier design secures LR backing

Classification society Lloyd’s Register (LR) on Tuesday (2 June) said it has teamed up with South Korean shipbuilding, marine services and nuclear research organisations to advance the development of a nuclear‑assisted car carrier concept. 

LR is working with Hyundai Heavy Industries, Korea Shipbuilding & Offshore Engineering (KSOE), Hyundai Glovis, G- Marine Service and the Korea Atomic Energy Research Institute (KAERI) on a joint development project (JDP) exploring an advanced small modular reactor (SMR) installation on a pure car and truck carrier (PCTC). 

The study focused on how a Molten Salt Reactor (MSR) could be physically and operationally integrated into a large vehicle carrier. Work examined the internal arrangement and segregation of the reactor system, shielding requirements, and the impact on cargo deck layout and vehicle capacity, alongside stability and trim implications linked to the reactor’s weight and positioning. 

The partners also assessed propulsion system configuration and power delivery, as well as operational flexibility compared with conventionally fuelled PCTCs, where trade routes and port calls can be tightly constrained. 

A key focus of the project has been safety. LR led hazard identification (HAZID) and preliminary risk assessment work, focusing on containment, onboard safety systems and potential operability constraints tied to nuclear technology at sea. 

The partners will mark the project milestone with an Approval in Principle (AiP) granting ceremony on 2 June at the LR stand during Posidonia 2026. 

Sung-Gu Park, President – North East Asia, Lloyd’s Register, said: “While nuclear propulsion is still at an early stage of development, this project shows the importance of building technical understanding now to support future progress. 

“Establishing feasibility at concept stage is a valuable step forward, particularly in areas such as cargo optimisation, vessel stability and integrated safety design.” 

Hong-Ryeul Ryu, CTO and Senior Executive Vice President at HD HHI, said: “With global environmental regulations becoming increasingly stringent and no definitive net-zero fuel yet available, SMR-powered ships can serve as a highly effective alternative, representing a pioneering next-generation maritime technology capable of complying with GHG emission regulations while allowing lifetime operation without refuelling, and HD HHI will remain at the forefront of sustainable maritime technology development.”

 

Photo credit: Lloyd’s Register
Published: 4 June, 2026

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