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EU’s CO2 regulation of maritime and road transport must be aligned for level playing field

Ships transporting goods between European ports will be included in European ETS prior to the road haulage the short sea shipping sector competes with, says Danish Shipping.

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The EU’s CO2 regulation of maritime and road transport must be aligned to ensure a level playing field between the two transport modes, according to maritime trade and employer organisation Danish Shipping on Friday (2 December). 

Ships transporting goods between European ports will be included in European Emission Trading System (ETS) prior to the road haulage the short sea shipping sector competes with.

By choosing this approach the decision makers challenge the short sea shipping sector’s competitiveness, Danish Shipping said. 

Commercial road transport has an advantage when it comes to transporting cargo with respect to speed, logistics, flexibility, and door-to-door delivery. A price increase on maritime transport due to the ETS carries the risk of leading customers to choose transport via road instead of sea.

”We fully support the EU’s initiative on reducing emissions from the transport sector, but we need to maintain a level-playing field by ensuring that the inclusion of commercial road  transport and short sea shipping is synchronised. This would also be consistent with the EU’s ambition to shift more cargo from land to sea  as to prevent congestion, wear and tear and accidents on the European roads”, says Maria Skipper Schwenn, Director of Climate, Environment and Security at Danish Shipping.

Shipping will be included in the ETS from 2024, while road transport will be included in the ETS a few years later. This will, all things considered, make it less attractive to choose transport by sea.

”The EU strategy on short sea shipping aims at a growth in seaborne trade by25 percent in 2030 and 50 percent in 2050. Hence it seems completely counterproductive  to include short sea shipping in the ETS before the commercial road transport. Thus, we recommend the EU to take this challenge seriously and make sure that the split between shipping and road transport does not take turn in the wrong direction”, said Maria Skipper Schwenn.

As to solutions, the Innovation Fund based on ETS revenue could for instance give  special consideration for sea routes that are competing directly with road transport. Currently 1.5 billion euros are to be dedicated  to the maritime sector. A part of these funds should assist in closing the price gap between the fossil and new green fuels in addition  strengthening the uptake of e-fuels for the shipping sector through the proposals FuelEU Maritime and RED III”, Maria Skipper Schwenn finishes.

EU’s future legal climate requirements:

  • Shipping’s emission will be included in ETS from 2024 with payment of 40% of the emissions in 2025, 70% in 2026 and 100% in 2027
  • ETS II, which covers road transport, is still under negotiation but is expected to enter into force in 2027 depending on the negotiations. There is no phase-in period for road transport.
  • With ETS, expenses will increase with 42% from today until the full phase-in. In comparison, expenses for road transport will increase with 3% when ETS II enters into force.
  • FuelEU Maritime sets standards for the fuel used on ships.
  • RED III sets requirements on member states on the supply of green fuels.

 

Photo credit: Danish Shipping
Published: 5 December, 2022

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Bunker Fuel

SIBCON 2024: Singapore bunker suppliers must provide e-BDN from 1 April 2025

Senior Minister of State Amy Khor also announced MPA will reduce the frequency of verification checks for mass flow meters from twice a year currently, to once a year, from 1 April 2025.

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SIBCON 2024: Singapore bunker suppliers must provide e-BDN from 1 April 2025

From 1 April 2025, all bunker suppliers in the Port of Singapore will be required to provide digital bunkering services as a default, said Senior Minister of State for Transport and Sustainability and the Environment Amy Khor on Wednesday (9 October).

Khor said Singapore will be the first port globally to implement digital bunkering at scale. MPA launched the digital bunkering initiative on 1 November 2023, becoming the first port in the world to implement electronic bunker delivery notes (e-BDN).

“This initiative is expected to save the industry close to 40,000 man-days annually. In addition, MPA will introduce a centralised electronic Bunker Delivery Note record verification facility to enhance the transparency and integrity of transactions in bunkering operations,” she said in her speech at the 23rd Singapore International Bunkering Conference and Exhibition (SIBCON). 

She emphasised that the Maritime and Port Authority of Singapore (MPA) will work closely with industry partners and the unions to digitalise and streamline processes to improve efficiency in our port; strengthen our capabilities for the bunkering of future fuels and encourage adoption of these fuels; and upskill our workforce to facilitate the green transition. 

Khor also made the following announcements:

  • From 1 April 2025, MPA will reduce the frequency of verification checks for mass flow meters from twice a year currently, to once a year. Singapore was the first port globally to adopt mass flow meters in 2017, and this new move is expected to help the industry save approximately $300,000 annually.
  • From 1 January 2025, MPA will roll out two innovative AI applications, DocuMind and DocuMatch, developed in collaboration with cloud service providers to drive greater efficiency in our port. These are expected to accelerate certificate processing time from up to three days currently, to a few minutes for most transactions.
  • Two ammonia bunkering proposals by Mitsui and Fortescue-Equatorial Marine Fuels have been selected by the consortia for the next round of Request for Proposal to provide a low- or zero-carbon ammonia solution on Jurong Island for power generation and bunkering.
  • MPA will commit $50 million to support the implementation of the refreshed Maritime Singapore Green Initiative, to further encourage the early adoption of green fuels and technologies across the maritime industry.
  • Singapore will continue to strengthen international partnerships through initiatives like the Green and Digital Shipping Corridors (GDSCs) to enable the digitalisation and decarbonisation of shipping. On 9 October, MPA and the Shandong Provincial Transport Department will be signing the Singapore-Shandong GDSC at the sidelines of the 25th Singapore-Shandong Business Council co-chaired by Mr Chee Hong Tat, Minister for Transport and Second Minister for Finance, and Mr Zhou Naixiang, Governor of the Shandong Provincial Government.

 

Photo credit: Singapore Ministry of Transport
Published: 9 October, 2024

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Mass Flowmeter

Singapore-based Metcore and LR team up for MFM certification service

Both launched an independent accredited certification service to certify the accuracy and reliability of bunker fuel quantity received via Mass Flow Meters.

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Metcore master MFM ops

Singapore-based MFM system measurement solutions provider, Metcore International Pte Ltd (Metcore), and classification society Lloyd’s Register (LR) on Tuesday (8 October) launched an independent accredited certification service to certify the accuracy and reliability of the quantity of fuel received via Mass Flow Meters (MFM). 

The service provides an additional conformity assessment of the installed meters, positioned, used, maintained and continually certified to the ISO 22192:2021 standard.

The demand for greater accuracy in delivered bunker quantities, coupled with the need for greater transparency, security and process automation, is fuelling the widespread adoption of MFMs across the bunker industry. In 2017, the Maritime and Port Authority (MPA) of Singapore mandated the use of MFM for bunkering operations. SOHAR Port and Freezone has announced a mandate from the start of 2025 and the Port of Rotterdam and Antwerp-Bruges are also set to introduce mandatory use of MFMs in 2026.

To help address the concerns that shipowners and bunker buyers have with the use of MFM on bunker tankers, the LR-Metcore MFM certification service aims to minimise the likely causes of measurement error and ensure that the MFM system serviceability extends beyond its initial qualification at installation. Its post-approval conformity assessment program includes metering-data analysis to monitor crew competency to help maintain secure integrity for continual measurement performance. 

In the event of a dispute, the service also offers an independent bunker delivery MFM digital data review as part of the investigation process, helping ensure all parties can carry out a detailed review of the data.

Lewis Cox, LR’s FOBAS Business Development Area Manager, said: “With the potential to eliminate bunker quantity disputes, minimise turnaround time and boost confidence in delivery data – particularly as ship operators seek to account for emissions from the fuel they consume – using Mass Flow Meters seems to be a win for all stakeholders.”

“But the reality of adopting them is not necessarily as straightforward. With the new LR-Metcore MFM certification service, bunkering stakeholders will have peace of mind that their installed meters are certified in conformity with internationally recognised standards for enhanced transparency and trust.”

 

Photo credit: Metcore International
Published: 9 October, 2024

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LNG Bunkering

Seaspan Energy takes delivery of first LNG bunkering vessel

“Seaspan Garibaldi” will take first cargo and finalise commissioning in Vancouver before its first ship-to-ship bunkering in Long Beach, where Seaspan will bunker a series of vessels.

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Seaspan Energy takes delivery of first LNG bunkering vessel “Seaspan Garibaldi”

Seaspan Energy on Monday (7 October) said it took delivery of its first LNG bunkering vessel, the Seaspan Garibaldi and is currently sailing to Vancouver.

Manifold Times previously reported that the vessel is the first of three 7,600m3 LNG bunkering vessels and it is named after Mount Garibaldi, or “Nch'ḵay̓”.

The Garibaldi will take first cargo and finalise commissioning in Vancouver before its first ship-to-ship bunkering in Long Beach, where Seaspan will provide Simultaneous Operations to bunker a series of vessels.

Following its first bunkering, the Seaspan Garibaldi will continue to provide low-carbon solutions to vessels on the West Coast of North America and will soon be joined by Seaspan Energy’s second LNG bunkering vessel, the Seaspan Lions (Ch’ich’iyúy Elxwíkn).

The Seaspan Garibaldi is 112.8 metres in length, 18.6 metres in width, 5 metres in draft, with a design speed of 13 knots.

CIMC Sinopacific Offshore & Engineering (CIMC SOE), a small-scale gas carrier shipyard in the world, was appointed to build all three LNG bunkering vessels.

Related: Seaspan launches “Seaspan Garibaldi”, first of three LNG bunkering vessels

 

Photo credit: Seaspan
Published: 9 October, 2024

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