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Nautilus Labs, BIMCO white paper: Charter parties holding back industry decarbonisation efforts

Study outlines potential for 15 to 20% of maritime industry’s emissions to be eliminated by changing current approaches to charter party frameworks without a negative impact on fleet capacity.
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Nautilus Labs and BIMCO on Thursday (25 May) released a white paper imploring the maritime industry to rethink prevailing charter party frameworks.

The white paper, titled ‘The Wrong Speed for All the Wrong Reasons’,  explores how current ways of working in the shipping industry have entrenched “sail-fast-then-wait” behaviours, resulting in major inefficiencies that produce excess emissions and increased costs. Using data from live charter agreements, the white paper demonstrates that this “sail-fast-then-wait” behaviour can produce substantial excess fuel consumption and emissions even on a single voyage.

The white paper outlines the potential for 15-20% of the industry’s emissions to be eliminated by changing current approaches to charter party frameworks without a negative impact on fleet capacity. For an industry that emits approximately 1 billion tonnes of carbon emissions annually, these savings equate to approximately 150-200 million metric tonnes of emissions and tens of billions of dollars in fuel.

To hasten emissions reduction, the white paper proposes key changes in charter party terms to drive better alignment of incentives between owners and charterers, removing the focus on claims and encouraging collaborative ways of working towards vessel efficiency. 

This new approach to charter parties and dynamic performance tables is now possible due to advances in machine learning software and high-frequency data from ships. With these foundational technologies in place, the industry can then optimise berth planning to reimagine “first-come, first-served” port operations that drive operators to race to queue up for a berth, leading to fuel waste and unnecessary emissions.

“In the age of decarbonisation, traditional key charter party clauses are no longer fit for purpose and need to be reviewed to address these systemic inefficiencies,” said Grant Hunter, Director of Standards, Innovation and Research at BIMCO. 

“BIMCO is committed to helping our industry achieve its Net Zero targets. By realigning incentives between owners and charterers and removing the barriers to collaboration, we can ensure we’re all on course towards a more sustainable future for the maritime industry.”

“Charter party agreements create misaligned incentives between owners and charterers; with financial penalties at the centre of their relationship, a zero-sum dynamic emerges,” explained Matt Heider, CEO, Nautilus Labs. 

“Voyage charters do not incentivise optimal arrival times. Instead, they encourage sail-fast-then-wait behaviour or require uneconomic static speeds.”

“On the other hand, time charters often result in suboptimal performance: owners are not incentivised to make proactive improvements to vessel efficiency, while charterers are constrained by static speed clauses. Across all charter party agreements, the need for more data-driven collaboration is core to our industry achieving Net Zero.”

Note: The white paper, titled ‘The Wrong Speed for All the Wrong Reasons’ can be downloaded here.

 

Photo credit: Nautilus Labs, BIMCO
Published: 26 May, 2023

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Legal

Singapore withdraws remaining 127 charges against Hin Leong founder OK Lim

Lim Oon Kuin, also known as OK Lim, was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges on 17 July.

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July 21, 2026

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RESIZED Sora Shimazaki on Pexels

Founder of collapsed oil trader Hin Leong Trading, Lim Oon Kuin, also known as OK Lim, has had the remaining 127 charges against him withdrawn, according to The Straits Times on Monday (20 July). 

OK Lim was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges, including those for cheating, on 17 July. The discharge means Lim cannot be prosecuted again for the same offences.

Lim, 84, is currently serving a 13½-year prison sentence after the High Court reduced his original 17½-year jail term in March 2026. He was convicted in 2024 on two cheating charges and one count of abetting forgery in a case prosecutors described as one of Singapore’s most serious trade finance frauds.

Lim was convicted in May 2024 of two charges of cheating the Hongkong and Shanghai Banking Corporation (HSBC) and one count of abetting forgery that proceeded to trial out of a total of 130 criminal charges.

He was first charged in court on 14 August 2020, and was subsequently handed further charges in court on 25 September 2020, 30 April 2021 and 24 June 2021 for his role in perpetuating fraud on various financial institutions. 

A total of 130 charges were eventually brought against him for cheating and forgery-related offences.

Related: Singapore: Hin Leong Founder OK Lim gets jail term slashed to 13.5 years

 

Photo credit: Sora Shimazaki
Published: 21 July, 2026

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Winding up

Singapore: Coastal Logistics Pte Ltd to be wound up voluntarily

Coastal Logistics was reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

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July 21, 2026

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RESIZED Drew Beamer

Several resolutions for Coastal Logistics Pte Ltd were made during an extraordinary general meeting held on 14 July, according to a notice in the Government Gazette on Friday (4 July).

The following resolutions were duly passed during the meeting:

As Special Resolution

  • That it has been proved to the satisfaction of the meeting that the Company cannot by reason of its liabilities continue its business and accordingly the Company be wound up voluntarily pursuant to Section 160(1)(b) of the Insolvency, Restructuring and Dissolution Act 2018 (No. 40 of 2018);

As Ordinary Resolutions

  • that Mr. Wong Pheng Cheong Martin and Ms. Koay May Yee, both care of FTI Consulting (Singapore) Pte Ltd, One Raffles Quay, #27-10 South Tower, Singapore 048583 be appointed as the joint and several Liquidators of the Company for the purpose of such winding up; and
  • that the Liquidators be at liberty to open, maintain and operate any bank account(s) or account(s) for monies received by them as Liquidators with such bank(s) as they deem fit; and
  • that a Committee of Inspection will not be formed.

Manifold Times previously reported Nicholas James Gronow, director of Heng Tong Fuels & Shipping and Coastal Logistics, filed statutory declarations for both companies stating the firms cannot continue their businesses due to liabilities.

Both companies were reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd. 

In 2019, several vessels owned by both firms entered the sale & purchase (S&P) market in Singapore.

Related: Singapore: Director declares Heng Tong Fuels & Shipping’s inability to continue business
Related: Heng Tong Fuels & Shipping in court over DBS Bank bunker tanker loan
Related: Singapore: Bunker tanker “Coastal Neptune” arrested
Related: Heng Tong Fuels & Shipping, Coastal Logistics tankers enter S&P market

 

Photo credit: Drew Beamer
Published: 21 July, 2026

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LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

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July 21, 2026

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PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions. 

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post. 

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024. 

 

Photo credit: Pacific International Lines
Published: 21 July, 2026

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