Thu 16 May 2013, 06:45 GMT

Shipper achieves 'C' efficiency rating


Rating puts shipping firm in the top one-third for energy efficiency.



Hudson Shipping Lines, Inc., a US-based dry bulk supply chain management company operating a fleet of 42 dry bulk vessels, has announced that its fleet has achieved an average carbon dioxide efficiency rating of 'C' using RightShip’s Existing Vessel Design Index (EVDIä) and Greenhouse Gas (GHG) Emissions Rating.

This puts Hudson in the top one-third of the global fleet for energy efficiency and greatly improves Hudson’s competitiveness with charterers who consider energy efficiency as part of their vessel selection process.

Presently, ten RightShip charterers, who collectively ship over one billion tonnes of cargo (15% of world’s annual bulk movements), include the GHG Emissions Rating as part of their vessel selection process – this equates to around 15,000 voyages each year.

Commenting on the achievement, Hudson’s Global Operations Director, Chad Meade said: “Vessels with higher environmental ratings standout from other vessels in the same deadweight class as the fuel savings really add up without any additional equipment or retrofitting. This makes them much more attractive to charterers who are seeking to cut bunker costs while demonstrating their sustainability credentials. This is a ‘win-win’ scenario where the environmental and commercial interests unite to everyone’s benefit.

Hudson said it was constantly looking for ways to increase sustainability and reduce the carbon footprint by decreasing the burning of fuel and carbon emissions.

"We regularly review the vessels we have on charter and proactively look to develop opportunities with owners who have an upgraded and efficient fleet of vessels to charter. This is an ongoing effort that involves educating owners to understand that efficiencies and the environment go hand-in-hand and are good for all our businesses," Meade added.

Commenting on the energy efficiency of Hudson’s fleet, Warwick Norman, CEO, RightShip said: "Hudson has recognised the importance of environmental credentials in today’s market by embracing the EVDI as an effective method of measuring the efficiency of the existing fleet. Not only are their vessels more likely to be selected by charterers who factor efficiency into their vetting process, but several of our banking customers consider the A – G Greenhouse Gas Emissions Rating scale as part of their loan underwriting process. In addition, financial institutions consider fuel efficiency as part of the discounted cash flow analysis in vessel valuation.

"More than 50% of Hudson’s fleet has an GHG Emissions Rating of A, B or C and these vessels qualify for discounted harbor due rates through Port Metro Vancouver.

“There is a growing acceptance among industry that while the carbon dioxide emissions from shipping are low compared to other transportation modes, collectively they are significant. Reducing emissions will involve a co-ordinated approach across all sectors. Due to competing industry interests it is challenging to get consensus on the issue and this means market forces will always move faster than legislation.

"It is also important to separate the debate about what can be measured and what can be legislated and an optimal industry outcome will only be achieved if it is unilateral. Many regional solutions such as taxes, Emission Control Areas and exemptions for developing countries have been canvassed but they only add complexity, compliance and cost to industry without achieving a meaningful reduction in COS22; emissions. Hudson recognises that informed vessel selection is the simplest form of a market based solution and that it is already working to reduce emissions and save industry money,” Norman remarked.


Bermuda Container Line (BCL) logo. Bermuda Container Line imposes emergency bunker surcharge citing Iran War fuel price spike  

Shipping operator to add $150 per TEU charge from 1 May amid geopolitical fuel cost pressures.

China flag. Zhejiang’s first methanol-powered container ship launches in Jiaxing  

Vessel uses methanol propulsion technology to reduce carbon dioxide emissions by 90%.

TES flag with a model vessel in the background. TES joins SEA-LNG coalition to advance e-methane as marine fuel  

Green energy company targets 1m tonnes annual e-methane production by 2030 for shipping decarbonisation.

Ethanol and methanol workshop graphic. IBIA to host workshop on ethanol and methanol marine fuels during Singapore Maritime Week  

Half-day event will examine alcohol-based fuel pathways and integration into shipping’s multi-fuel landscape.

Steel-cutting ceremony for 13,000-dwt vessel. ROC begins construction of second chemical tanker for Essberger  

Chinese shipbuilder holds steel-cutting ceremony for 13,000-dwt methanol-ready vessel with ice class capability.

Norsepower and CHIC sign agreement. Norsepower and Cosco Shipping Heavy Industry Equipment sign wind propulsion cooperation agreement  

Wind propulsion technology provider partners with Chinese shipyard to scale rotor sail production.

Wärtsilä logo. Shipping firms struggle to prioritise decarbonisation investments amid regulatory uncertainty, Wärtsilä survey finds  

Survey of 225 maritime executives reveals 70% say uncertainty hinders investment decisions despite regulatory pressure.

IMT Isca G-Flex vessel render. Longitude Engineering unveils IMT Isca G-Flex PSV design with alternative fuel capability  

Naval architecture firm launches adaptable platform support vessel design based on the IMT-984 G-Class hull.

Philippos Ioulianou, EmissionLink. Shore power infrastructure is key to cutting ferry emissions in European cities, says EmissionLink  

Port electrification is needed to enable vessels to switch off engines at berth, reducing urban pollution.

Maritime and Port Authority of Singapore logo. Singapore prioritises maritime resilience amid geopolitical uncertainty, eyes digitalisation and green fuels  

MPA chief outlines the sector’s adaptation to supply chain disruptions while advancing automation and alternative fuels.