Baltic Exchange launches free FuelEU Maritime calculator to help shipowners

The following is an article by Baltic Exchange, which was shared to Singapore-based bunkering publication Manifold Times, on the launch of its new free FuelEU Maritime calculator for the maritime industry.

Martin Crawford-Brunt, CEO of Lookout Maritime and Emissions Lead of Baltic Exchange, also discusses the complexity of the regulatory and the need for greater benchmarks:

​​From 1 January 2025, voyages that include port calls in the European Union will have to account for the new FuelEU Maritime regulation. This new regulation is designed to accelerate the uptake of renewable and low-carbon fuels in maritime transport to drastically reduce onboard greenhouse gas (GHG) emissions in Europe. 

FuelEU Maritime is the latest regulation designed to help shipping’s decarbonisation journey. However, these types of emissions regulations are becoming increasingly complex and increasingly regional. Due to the sheer number of new regulations, tightening goals and deadlines, access to reliable data and insights to inform decision making is increasingly requested. Furthermore, the regulations may not consistently address the nuances of different trade patterns or vessel types, thereby introducing ambiguity which increases the uncertainty and challenges for the shipping industry.

In order for shipowners to better understand the financial costs, as well as the wider commercial impacts of complying with FuelEU Maritime, particularly when it comes to the specific regulations of their own fleets, what is needed is a clear market benchmark for defining good emissions performance. Crucially, this type of standard needs to come from a trusted source in the market. This is where Baltic Exchange and its Emissions Calculators have a vital role to play. 

“While the latest emissions regulations are a net positive for the industry, there is a degree of ambiguity around what constitutes strong commercial performance in this evolving landscape. It all gets very real when you put dollar numbers on the penalties and fuel alternatives. What is needed right now is an clearer understanding of the commercial implications of the various regulations and how these will affect the operational decisions of shipowners,” said Martin Crawford-Brunt, Emissions Lead at Baltic Exchange.

“Baltic Exchange is offering market-related baselines to help educate and inform the market on the financial implications of the cost of emissions in freight for shipping players who need to factor them into their business decisions.

“This includes providing the means to calculate the cost and potential penalties of carbon emission regulations, such as EU ETS and FuelEU Maritime, so these can be included into voyage costs,” he added.

Baltic Exchange FuelEU Calculator

Launched earlier this year ahead of the regulation coming into force, Baltic Exchange’s Emissions Calculator now includes a specific FuelEU Maritime feature. This tool helps shipowners understand the potential cost implications for their vessels, while also enabling operators and charterers to evaluate whether they are being charged fairly. By offering insights based on Baltic standard ships and standard route data, it creates a win-win scenario for all parties involved.

This new tool provides a vital comparison for a vessel’s journey and fuel consumption, comparing standard low sulphur heavy fuel oil to other greener options such as LNG or methanol. By entering the vessel’s deadweight tonnage, type, speed and consumption against Baltic standard ship data, shipowners are able to quickly understand the potential financial penalties of operating that vessel on voyages which include EU port calls. This will enable the market them to factor these additional costs into the cost of freight, expressed in dollar per tonne,  or the target time charter rate. 

Only fossil-based variants of alternative fuels are included in the calculator, for the time being, as these will be available first and are expected to be more competitively priced, than green alternatives. The tool is set to include bio-fuel blends, for diesel and LNG, which have a known well-to-wake factor, in future updates. 

Note: The full article by Baltic Exchange can be read here.

Photo credit: CHUTTERSNAP from Unsplash
Published: 17 December, 2024