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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

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

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

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Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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