Shipping must be open to sharing the risks associated with emissions reduction to enable the uptake of energy savings devices and technologies (ESDs/ESTs) and digital applications, stated classification society Lloyd’s Register (LR) representatives during a presentation at Athens during early December.

The responsibility of investing in and driving the uptake of new solutions must be borne by all relevant stakeholders and not sit solely with the shipowner. This extends not only to financial exposure, but also new vessel design and data sharing.

When major change is introduced on a ship, there are numerous aspects to consider by all stakeholders involved which all add risk. Energy producers, the energy consumers, the associated supply chains, and the investors, insurers, regulators, class societies and governments – all have critical, but different and highly inter-related roles to play within the transition.

“We are in a new era of shipping that comes with a different set of rules, including shipping companies’ approach risk and risk sharing,” shared Elina Papageorgiou, Global Strategic Growth Director and VP Greece and Cyprus at LR at the Powering Progress: Innovation and Energy in Maritime event.

“Longer-term investment decisions should also be informed by the decisions of shipping’s clients’, clients – the cargo owners – and align with their emissions reduction ambitions.”

David Lloyd, Director, Energy Transition at LR, meanwhile noted: “Smart vessel operation and well-informed, data-led investment decisions can significantly support vessel compliance. What’s more, investments don’t have to be extensive to achieve results.”

“Whilst uncertainties around bigger challenges such as alternative fuels and future requirements are resolved, ESDs and digital solutions can support the commercial viability of vessels as we approach 2030 with often surprisingly low levels of investment. But these investments should be shared across all stakeholders and not be limited to owners and financiers.”

Fotis Belexis, Technical Director of Starbulk Carriers, were amongst speakers discussing risk sharing across stakeholders for complex capital investments.

He pointed out that as existing vessels age, they cannot be replaced by newbuilds as there is insufficient global shipbuilding capacity to replenish the fleet with newer tonnage.

As such, older vessels may therefore remain in the market for longer than expected and not depreciate in value as has been the case in the past. Banks and other lenders must realise this and adjust their depreciation and lending models to suit when ship owners want to finance retrofits of ESDs on their older ships.

Moving forward, the room agreed energy saving devices (ESDs), such as wind-assisted ship propulsion, digital solutions and smart operations should all be considered as the in-service fleet using traditional marine fuels seeks to shave its bunker fuel consumption to comply with IMO’s Carbon Intensity Indicator, EU ETS (Emissions Trading Scheme) and FuelEU regulations – the latter will which be in effect as of 1 January 2025.

As emissions reduction targets increase, with steeper increments than currently planned potentially being announced at the Marine Environment Protection Committee meeting in May next year, data-led insight and scenario planning will become more important to understand where efficiencies can be gained.

Photo credit: Lloyd’s Register
Published: 31 December 2024

ExxonMobil on Friday (20 December) said it has successfully completed over 100 bunker deliveries using electronic bunker delivery notes (eBDNs) in collaboration with Singapore-based Bunkerchain, its first approved eBDN vendor. 

“As the first accredited bunker fuel supplier to introduce MFMS in Singapore, we are proud to lead the way in implementing eBDNs,” the company said in a social media post.

Ognjen Plakalovic, Head of Asia Pacific Aviation and Marine Sales, ExxonMobil, said: “Our implementation of eBDNs is expected to help drive efficiency, enhance trust, and boost productivity. We continue to advocate for transparency and value the advantages of digitisation.”

Starting from April 1, 2025, marine fuel suppliers in Singapore must offer digital bunkering services, including electronic bunker delivery notes (eBDNs). The Maritime and Port Authority of Singapore (MPA) expects this initiative to save the industry up to 40,000 man-days annually. 

According to the MPA, the move will also enable more efficient data sharing between bunker buyers and suppliers, which will help streamline administrative processes, improve accountability, and facilitate regulatory compliance. 

“Integrating eBDNs with mass flow metering systems (MFMS) greatly minimizes the risk of manual errors or intentional tampering with fuel quantity figures, thereby enhancing integrity and trust in fuel transactions,” the company added.

Related: SIBCON 2024: Singapore bunker suppliers must provide e-BDN from 1 April 2025
Related: Singapore set to become first port in the world to debut electronic bunker delivery notes
Related: MPA Chief Executive: Port of Singapore begins digital bunkering initiative today
Related: Singapore: MPA publishes guidelines for bunker suppliers in preparation of e-BDN launch

Photo credit: Manifold Times
Published: 23 December, 2024

Japanese shipping firm Nippon Yusen Kabushiki Kaisha (NYK) on Thursday (19 December) introduced a digital platform with Yusen Logistics Co., Ltd. (YL) for managing greenhouse gas (GHG) emission reductions. 

The platform is provided by 123Carbon B.V. (123Carbon), a Netherlands-based startup working on decarbonising the logistics sector. 

NYK and YL, a comprehensive logistics group, will use the platform to support the reduction of Scope 3 GHG emissions by allocating to platform customers the GHG-emission reductions achieved through the use of alternative fuels in their ocean, air, and land transport services and issuing certificates confirming those reductions.

Process for Managing and Allocating GHG-Emission Reductions

NYK

Generates and manages GHG-emission reductions through the use of biofuels in its bulk shipping business, recognises the environmental value of these reductions, then allocates them to YL and issues a certificate of confirmation. The first allocation will be completed on the platform after verification by a third-party certification organisation.

YL

Procures GHG-emission reductions generated by ocean shipping companies like NYK and its airline partners and provides accompanying certificates. Additionally, for land transport, YL will utilise sustainable fuels derived from waste cooking oil and other renewable materials to power its own trucks in some countries and areas, actively creating and managing GHG-emission reductions as a transport operator. A one-stop service on the platform will be officially launched by YL shortly.

Key Features of the Platform

• Customers can monitor GHG-emission reduction methods and the alternative fuels used to generate the reductions.
• The management and allocation of GHG-emission reductions are secured using blockchain technology to prevent data tampering.
• The entire process, from calculating GHG-emission reductions to allocating, is verified by a third-party certification organisation to ensure the platform's reliability and transparency.

Photo credit: NYK
Published: 23 December, 2024