Wed 3 Oct 2012 12:03

Commitment to charter efficient vessels


Companies pledge that they will only charter the more energy-efficient vessels operating in the shipping market.



Cargill, one of the world's leading international transporters, producers and marketers of food, agricultural, financial and industrial products, Huntsman Corporation, the global manufacturer and marketer of differentiated chemicals and UNIPEC UK Company Ltd, trader of crude oil and oil products, have announced that they will only charter the more efficient vessels operating in the shipping market.

The Existing Vessel Design Index (EVDI), created by ship vetting specialist RightShip and published on ShippingEfficiency.org - an initiative launched by the Carbon War Room and RightShip to increase information flows around international shipping's energy efficiency, as an GHG Emissions Rating (A-G rating) benchmarking system.

The efficiency ratings system - containing efficiency information on over 60,000 vessels including container ships, tankers, bulk carriers, cargo ships - enables charterers to instantly see a ship’s theoretical greenhouse gas emissions and relative energy efficiency as determined by RightShip’s EVDI rated from A (most efficient) to G (least efficient), compared to ships of similar size and type.

"Cargill has introduced a senior management override on the use of the least energy efficiency vessels. By choosing the more efficient vessel available to us, we are making a strong statement to the market,” commented Jonathan Stoneley, Environment and Compliance Manager, Cargill Ocean Transportation. "We hope this action will demonstrate to ship owners that they can and should do more in terms of efficiency, and that the market will reward them and will also show other charterers the decision support tools available if they want to operate more efficiently. We will work together with customers, as best appropriate, to help them meet their environmental objectives linked to transportation and this rating system."

Stoneley continued: "Cargill is committed to minimizing our environmental impact throughout our global operations. We do this by developing management systems and policies to ensure best practice environmental compliance and continually improving performance on criteria relevant to our business and operations. We partner with governments, non-governmental organisations, communities, employees and customers to leverage market-based solutions to reduce the environmental footprints of the supply chains in which we participate."

Peter Boyd, COO of Carbon War Room commented: "This deal represents the first major capital shift on behalf of the charterers towards making greater efficiency a factor in their vessel chartering decisions. Cargill, Huntsman Corporation and UNIPEC UK should be congratulated for being the first to make this commitment. We’d encourage other charterers within the market, to look towards the simple and understandable ways to quantify, measure and track efficiency represented by the efficiency rating system and the A-G benchmark. Those that lead the curve on presenting more eco-efficient vessels will benefit from the choices charterers are making and the charterers themselves will see lowered operating costs through fuel efficiency - a win-win-win decision for the owner, the charterer and the environment."

Warwick Norman, Chief Executive Officer, RightShip, added: “Cargill, Huntsman Corporation and UNIPEC UK have strong commitments to maximise efficiency on environmental grounds, and we are proud to provide them with the decision support tool they need to implement their environmental leadership position. With the common decision making framework first movers will have significant market advantage over competitors who are using traditional methods to evaluate efficiency.

"Without this level of information it’s very difficult for charterers to make informed decisions on vessels based on their efficiency - for example, newer ships aren’t always more efficient than older ships. We’ve developed the Existing Vessel Design Index, or EVDI, to estimate the amount of COS22; emitted per tonne by any nominated ship, per nautical mile travelled, based on complex analysis of a range of reliable data. With our partners at www.shippingefficiency.org, we’ve used that data to also create the A-G GHG Emissions Rating that makes it easy to compare energy efficiency. The online rating system directly compares the efficiency of a vessel against vessels of comparable size and within the same ship type. This practical, usable information can enable our customers to make fuel savings and meet energy efficiency targets, and their preference for more efficient ships also rewards owners who have invested in operating a sustainable fleet."


Product tanker Artizen, owned by Hong Lam Marine. Hong Lam Marine takes delivery of Artizen tanker in Japan  

Singapore-based firm receives new vessel from Kegoya Shipyard.

Birdseye view of containership. Panama Canal launches NetZero Slot to incentivize low-emission transits  

New reservation category prioritizes dual-fuel vessels capable of using alternative fuels from November.

Van Oord's Vox Apolonia. Van Oord deploys bio-LNG dredger for Dutch coastal project  

First bio-LNG powered trailing suction hopper dredger operation begins in the Netherlands.

Model testing for Green Handy methanol-powered vessel. Methanol-fuelled Green Handy ships pass model tests ahead of 2026 construction  

Baltic carrier reports model testing exceeded performance targets for 17,000 dwt methanol-powered vessels.

Miguel Hernandez and Olivier Icyk at AiP for FPSO. SBM Offshore's floating ammonia production design gets ABS approval  

Design converts offshore gas to ammonia while capturing CO2 for maritime and power sectors.

Philippe Berterottière and Matthieu de Tugny. GTT unveils cubic LNG fuel tank design for boxships with BV approval  

New GTT CUBIQ design claims to reduce construction time and boost cargo capacity.

Wilhelmshaven Express, Hapag-Lloyd. Hapag-Lloyd secures multi-year liquefied biomethane supply deal with Shell  

Agreement supports container line's decarbonisation strategy and net-zero fleet operations target by 2045.

Dual-fuel ship. Dual-fuel vessels will dominate next decade, says Columbia Group  

Ship manager predicts LNG-powered vessels will bridge gap until zero-carbon alternatives emerge.

Stril Poseidon vessel. VPS campaign claims 12,000 tonnes of CO2 savings across 300 vessels  

Three-month efficiency drive involved 12 shipping companies testing operational strategies through software platform.

Birdseye view of a ship. Gard warns of widespread cat fines surge in marine fuel  

Insurer reports elevated contamination levels, echoing VPS circular in early September.