Connect with us

FuelEU

DNV: How FuelEU Maritime is changing commercial negotiations

DNV offers a look into its partnership with Exmar Ship Management to navigate FuelEU Maritime risks as the regulation reshapes commercial negotiations, exposing independent ship managers to new financial risks.

Admin

Published

on

DNV: How FuelEU Maritime is changing commercial negotiations

Classification society DNV on Thursday (27 November) published a Maritime Impact article highlighting Exmar Ship Management’s partnership with DNV and Veracity to navigate FuelEU Maritime risks as the regulation reshapes commercial negotiations, exposing independent ship managers to new financial risks. 

By using Emissions Connect as a single source of verified data, Exmar streamlined compliance, improved risk management, and built greater trust with owners and charterers: 

The FuelEU Maritime regulation differs from the EU Emissions Trading System in terms of reporting responsibilities and financial liabilities. DNV’s Emissions Connect can function as a trusted single source of truth for all stakeholders that supports fair cost allocation.

The reporting requirements stipulated by the FuelEU Maritime (FEUM) regulation add another level of complexity to emission management. While under the EU Emissions Trading System (EU ETS), shipowners must submit annual emissions reports, the new FEUM regulation in effect since 1 January 2025 assigns the emissions reporting responsibility to the ship manager as the holder of the document of compliance (DoC), with consequences for the business relationship between the owner, charterer, and independent ship manager (ISM). Nevertheless, Arne Lippens, Head of Technical Compliance at Exmar Ship Management, believes that monetarizing emissions is a good thing: “It finally opens up the dialogue between the partners,” he says. “In the past, there was always a split incentive: the charterer was paying the fuel costs, whereas any investments by the owner in efficiency improvements or fuel and emission monitoring technology would benefit the charterer, not the owner. 

Document of compliance holder has legal responsibility

Shipowners with ship management divisions of their own can handle the consequences relatively smoothly, but third-party, independent ship management companies (ISM) are exposed to the full financial risk arising from emissions liabilities, a fact that needs to be addressed in their commercial negotiations with owners, who must monitor and manage the FEUM compliance balances for specific charter periods. This constellation must be adequately accounted for in the charter party negotiations between the owner and charterer to achieve fair allocation of the financial exposure.

There are far-reaching implications for the legal relationship between the contractual parties involved in the ownership and operation of a vessel. “Charter parties rarely line up with the annual compliance cycle,” explains Helge Hermundsgård, Head of Business Development for DNV’s Emissions Connect services. “This means that charter parties must ensure that the incurred liabilities are addressed as charters start and end during the reporting year.” The ISM in charge at year’s end is responsible for compliance with the reporting requirements during the entire calendar year – a responsibility that cannot be assigned to a third party.

Charter parties must reflect “polluter pays” principle

However, the ISM has virtually no influence on the factors determining FuelEU Maritime exposure, such as the fuel used and the ship’s trade, continues Hermundsgård. “ In other words, the financial consequences should be assigned to the party that can influence those factors, based on the principle that the polluter pays.”

The FEUM regulation leaves the contractual details of these arrangements up to the commercial partners. On 19 December 2024, the Baltic and International Maritime Council published a FuelEU Maritime clause for its SHIPMAN standard contract, which is widely used as a basis for ship management contract negotiations. Other bodies are offering similar contract amendments.

Charter parties must clearly allocate financial responsibilities

There are certain intricacies and details that the SHIPMAN FEUM or similar clauses cannot cover. “Independent ship managers, charterers, and owners must understand the regulations clearly and find ways to allocate the financial consequences in their charter parties fairly, including provisions for hypothetical events or situations,” explains Lars Nyfløt, Global Sales Manager Emissions Connect Business Development at DNV. “They need a clear understanding of who is in charge of what.” Questions such as how the responsibility for FEUM will be reallocated to the owner and how the ISM is guaranteed compensation for any additional liabilities must be answered in advance. “An ISM must be highly aware of its risk and ensure that the commercial agreement with the owner provides for suitable mechanisms to manage that risk,” says Nyfløt.

For companies like Exmar, which manages its own fleet as well as third-party vessels as an ISM, there is a silver lining to this, says Arne Lippens, because the need for the commercial partners to cooperate more closely gives the ISM a stronger position as a provider of regulatory know-how and related services: “The emission penalties resulting from EU ETS, FEUM, and the forthcoming IMO regulation might double the cost of fuel in the foreseeable future, making it crucial for the party paying the bill that their operational expense and fuel spend are managed well. So they have to reach out to us, which creates an extra bond, a new level of trust between ourselves and our partners, and an enhanced role for us as an ISM.”

Contracting parties need a trusted common source of emission data

Nyfløt, who held various commercial functions in the shipping industry on both the shipowners’ and the charterers’ side for about 30 years and took part in countless charter party negotiations before joining DNV, says it is crucial for all players in the value chain, including the technical manager, the owner, the charterer, the cargo owner if different, the management company, and others, to have a clear picture of how emissions affect pricing. “This will support good-faith negotiations with the understanding that all parties are ultimately in the same boat, as it were, bearing a shared responsibility for compliance, each side with its own part to play.

“In my experience,” adds Nyfløt, “one of the most important assets in charter negotiations is a trusted source of emission data. Proper documentation and a single source of truth accepted by all stakeholders are key to negotiations that deliver satisfactory results.”

Note: The full article by DNV can be read here

 

Photo credit: Exmar Ship Management
Published: 1 December, 2025

Continue Reading

FuelEU

Ahti Climate and DNV connect verified emissions data to FuelEU pooling platform

New integration connects Ahti’s FuelEU pooling platform with DNV’s verification services, Veracity, helping customers reduce manual administration and streamline compliance.

Admin

Published

on

By

Ahti Climate brings DNV-verified emissions data into FuelEU pooling platform

Ahti Climate on Monday (31 August) announced a new integration with Veracity, DNV’s independent industry cloud platform, enabling shipowners and operators to seamlessly transfer DNV-verified emissions data into Ahti’s FuelEU pooling platform. 

The integration simplifies emissions reporting by connecting operational data verification with FuelEU compliance workflows, helping customers reduce manual administration, improve data quality and confidently meet regulatory requirements.

For customers such as shipping company Bore Ltd, the integration streamlines the flow of emissions data between verification and compliance systems. Raw fuel consumption data is automatically converted into the required OVD format and submitted for DNV verification through Veracity. Once verified, the emissions figures are securely shared with Ahti’s FuelEU pooling platform, creating a more efficient workflow with less manual administration and greater confidence in reported emissions data.

“Being on one of the surplus generators of the pool, trust in the data is everything for us – we need to know the numbers we’re selling hold up to scrutiny. With verified emissions data flowing straight from Veracity by DNV into the Ahti Pooling Platform, we no longer have to manually cross-check figures before every transaction. It gives us confidence that what we’re bringing to the pool is accurate, and that our partners can rely on it too,” said Marcus Strand ICT Manager at Bore Ltd. 

The integration enables customers to:

  • Reduce manual data entry and administrative workload
  • Improve data quality and reduce the risk of reporting errors
  • Securely exchange verified emissions data across systems and stakeholders
  • Increase transparency and confidence in compliance reporting
  • Connect commercial, operational and compliance workflows
  • Reduce turnaround times for reporting and voyage settlements

“Every partnership we build comes back to the same question: does this make compliance easier for shipowners? With Veracity by DNV, the answer is clearly yes – verified data, connected systems, and one less thing for our customers to worry about,” said Risto-Juhani Kariranta, CEO of Ahti Climate. 

With connectivity to the majority of the world fleet, Veracity’s trusted partner ecosystem, combined with Ahti’s expertise in FuelEU pooling, gives shipowners a more connected approach to emissions verification and compliance. By enabling verified data to flow securely between systems, the partnership helps customers reduce complexity and get greater value from their data and access a growing network of digital solutions.

 

Photo credit: Ahti Climate
Published: 1 September, 2026

Continue Reading

Decarbonisation

NAPA: Why operational efficiency remains shipping’s golden ticket

With regulation tightening and alternative fuels still evolving, Pekka Pakkanen says operational efficiency offers shipping an immediate, scalable way to cut fuel use, emissions and costs.

Admin

Published

on

By

NAPA: Why operational efficiency remains shipping’s golden ticket

Shipping’s decarbonisation ambitions are clear but turning that ambition into commercially viable emissions reductions at scale remains a challenge.

As regulatory requirements tighten and fuel markets remain volatile, Pekka Pakkanen, Executive Vice President, Shipping Solutions, NAPA, says operational efficiency is emerging as one of the most immediate and scalable levers available to shipowners, with digital tools increasingly helping to maximise the benefits of energy efficiency technologies: 

The shipping industry’s decarbonization drive does not lack ambition – that is visible in the pace of innovation and research we see around us. But translating that ambition into action at scale and in a commercially viable way remains a different challenge altogether. The International Maritime Organization’s MEPC 84, which concluded in April 2026, reminded us of both how far we have come and how much complexity still remains.

Discussions around the Net-Zero Framework continued, with delegates agreeing to seek further consensus on key adjustments later in October 2026, while progress was made across several other fronts. Separately, the adoption of amendments designating the North-East Atlantic as a new Emission Control Area for Sulphur Oxides (Sox), particulate matter and nitrogen oxides (Nox) is a significant achievement. At the same time, the second phase of the review of the Ship Energy Efficiency Management Plan (SEEMP) and the Carbon Intensity Indicator (CII) began, focusing mainly on enhancing the SEEMP.

Progress, though incremental, is still being made in an environment defined by mounting regulatory obligations, volatile fuel markets, and a clean technology landscape still maturing. All these factors create a backdrop of uncertainty. It’s a word used often to describe shipping’s operating environment and still stands the test of time.

Why energy efficiency technologies remain key

Despite knowing this, the argument I want to put forward is a simple one that can help cut through the uncertainty. The single most accessible, most immediate, commercially viable and scalable lever available to shipping today for managing decarbonization is operational efficiency. Not instead of alternative fuels or new vessel technologies, but as the foundation on which everything else must be built.

Fuel price volatility has made efficiency a financial necessity as much as an environmental one. The European Union Emissions Trading System (EU ETS) and FuelEU Maritime are already in effect and tightening year on year. Add to this the second phase of the CII and SEEMP review, which MEPC 84 formally commenced, and all signs point to the need for operational performance data, optimization and reporting.

In today’s market, efficiency is both a sustainability metric and a margin protection strategy. Every tonne of fuel saved reduces exposure to volatile fuel prices, emissions costs, and operational uncertainty. The question for shipping executives is, therefore, is how to maximize the impact of efficiency.

The answer increasingly lies in the intelligent combination of digital tools and energy efficiency technologies. One development that has captured significant industry attention is the growing integration of wind-assisted propulsion systems (WAPS) with voyage optimization software. Harnessing the power of the wind is not just about installing sails, wings, or kites – it is also about navigating the inherent challenges that come with wind propulsion, from complex and fast-evolving weather patterns to training crew. Operating wind-assisted propulsion vessels requires both careful pre-planning and adjustments throughout a ship’s journey. Fast-evolving wind speed and direction, as well as waves and currents, must be assessed and constantly re-assessed throughout the voyage to determine the best possible route. Wind-assisted vessels need to catch winds at the right speeds and angles to make the most of their wings, rotors, or sails, which demands continuous route and speed modelling throughout the voyage not just before it. Relying on traditional means and manual methods alone risks leaving a lot of savings on the table. Instead, understanding changes in wind patterns and using this to the vessel’s advantage requires advanced digital tools.

Classification societies have also been responding to the increase in WAPS on the market and have included specific stability rule checks, which digital tools can help comply with. WAPS typically add weight to a vessel’s upper structure, shifting its center of gravity and creating additional stability considerations to be managed. Digital tools, within NAPA Design, can be used to calculate vessel stability characteristics and help users check their design’s performance against multiple classification society rules as well. These are all essential considerations to ensure the solution continues performing optimally.

Whether the technology is wind-assisted propulsion or air lubrication technology, digital technologies can help maximize the savings they deliver. Users can measure performance, adapt operations continuously and make decisions based on reliable data, which can then inform future investments in energy efficiency technologies.

MEPC 84 makes progress on the foundations underpinning global decarbonization 

The expansion of ECAs at MEPC 84 – including the newly designated North-East Atlantic zone – adds another layer of complexity. Research has consistently shown that ECA avoidance through route deviation is rarely the optimal commercial or environmental response; the fuel costs and schedule implications of detours frequently outweigh the cost of sailing through the zone with compliant fuel. Voyage optimization tools model these trade-offs in real time to help make better decisions than human assumptions alone.

MEPC 84 also progressed a review of the SEEMP framework, which remains central to how vessels document and demonstrate their carbon intensity management. The direction of travel is towards increased expectations around the quality, granularity, and integration of performance data. As regulatory frameworks increasingly rely on verifiable performance data, the quality of operational data becomes just as important as the technologies being measured. Poor data quality can undermine both compliance confidence and optimization efforts. Shipowners who have already invested in the digital infrastructure to capture and act on operational data will find themselves significantly better positioned, both for compliance and for commercial advantage.

The case for integrated data systems – platforms that bring together performance analytics, voyage planning, regulatory compliance, and reporting in a coherent interface – is a response to genuine operational needs. When data from signals, noon reports, and logbook entries can be brought together on one platform to produce clear, actionable insights, crews spend less time managing information and more time using it. The same shared source of operational truth also supports better ship to shore collaboration to support real-time route and speed optimization, continuous hull performance monitoring, and integrated compliance management.

None of this diminishes the importance of the longer-term energy transition. Alternative fuels, new energy efficiency technologies, and next-generation vessel design all have a critical role to play in reaching net zero by 2050. But those transitions take time, capital, and regulatory frameworks that are still being finalized. In the interim, and complementing those transitions, operational efficiency represents a proven, scalable, and commercially viable path to meaningful emissions reduction. The industry does not need to wait for its decarbonization ‘golden ticket’ to arrive from future technology. It already holds one. The challenge now is not identifying opportunities for efficiency but capturing them consistently across fleets and voyages.

 

Photo credit: NAPA
Published: 28 August, 2026

Continue Reading

Alternative Fuels

Peninsula: Bio-LNG offers practical route to shipping decarbonisation

Company outlines why bio-LNG is emerging as a key fuel pathway in the maritime energy transition including playing a role in helping operators manage their emissions profile.

Admin

Published

on

By

Peninsula

Marine fuels supplier Peninsula recently published an article on why bio-LNG is emerging as a key fuel pathway in the maritime energy transition:

As the maritime industry accelerates its decarbonisation journey, operators face a growing challenge: reducing emissions while maintaining operational efficiency and commercial viability. While no single fuel offers a universal solution, Bio-LNG is increasingly attracting attention as a practical pathway for LNG-fuelled vessels seeking immediate emissions reductions without major infrastructure changes. 

The conversation around alternative fuels often focuses on future technologies and long-term investments. However, for many operators, the more pressing question is how to reduce emissions today using solutions that can be implemented within existing operations. This is where Bio-LNG presents a compelling proposition. 

“As operators look to balance compliance, cost and operational performance, Bio-LNG offers a practical solution that can be integrated into existing LNG infrastructure today. Increasing availability across key bunkering locations is helping turn decarbonisation ambitions into operational reality.” Cristina Danes, LNG Supply Trader, Peninsula. 

Building on Existing LNG Infrastructure 

BioLNG is a renewable marine fuel produced from certified biogenic waste feedstocks. While its origin differs from conventional LNG, it remains chemically equivalent, allowing it to be used within existing LNG infrastructure and dual-fuel engines. This compatibility eliminates the need for costly vessel modifications or extensive retrofitting programmes, reducing both complexity and investment requirements. 

For operators that have already invested in LNG-capable vessels, bioLNG offers a clear route to further improve environmental performance while leveraging existing assets and supply chains. 

The increasing availability of bioLNG across key bunkering hubs is helping remove barriers to adoption. Recent supply operations, including Peninsula’s first Bio-LNG delivery in the Port of Cadiz, illustrate how renewable marine fuels are becoming more accessible through existing LNG supply chains. 

Delivering Meaningful Emissions Reductions 

As regulatory requirements continue to evolve, the ability to demonstrate measurable emissions reductions is becoming increasingly important. BioLNG can achieve lifecycle greenhouse gas emissions reductions of up to 90% compared with conventional marine fuels when produced from certified waste-based feedstocks. 

These reductions represent a significant opportunity for vessel operators looking to improve their environmental performance while balancing commercial considerations and operational requirements. 

Supporting Regulatory Compliance 

Alongside emissions reduction targets, compliance is becoming an increasingly central consideration in fuel procurement decisions. 

Frameworks such as FuelEU Maritime are creating new incentives for lower-carbon fuel adoption while introducing additional complexity into compliance planning. In this environment, BioLNG can play an important role in helping operators manage their emissions profile and support broader compliance strategies, including participation in mechanisms such as FuelEU pooling. 

As regulations continue to develop, flexibility will become an increasingly valuable asset. Fuels that can deliver both environmental and compliance benefits are likely to play a growing role in operators’ fuel strategies. 

A Practical Step Forward 

The maritime energy transition will require a mix of solutions, technologies and fuel pathways. While longer-term alternatives continue to develop, BioLNG provides an immediately available option for LNG-fuelled vessels seeking to reduce emissions and prepare for a more carbon-conscious operating environment. 

For many operators, the transition to lower-carbon shipping will not be defined by a single transformational change, but by a series of practical steps. BioLNG represents one such step: leveraging existing infrastructure, supporting regulatory compliance and helping bridge the gap between today’s operations and the future of shipping.

 

Photo credit: Peninsula
Published: 11 August, 2026

Continue Reading
Advertisement

OUR INDUSTRY PARTNERS



Trending