Wed 3 Oct 2012, 12:03 GMT

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."


United LNG I bunker vessel alongside Blue Aspire vessel. Titan charters 8,000-cbm LNG bunker vessel for ZARA region operations  

United LNG I to deliver LNG and bio-LNG across Amsterdam, Rotterdam, Antwerp and Zeebrugge ports.

Flag of Mauritania. Peninsula begins physical bunker supply operations in Mauritania  

Marine fuel supplier operating two barges following licence award from the Mauritanian National Hydrocarbons Commission.

X-Press Cassiopeia vessel. PuriFire Energy signs biomethanol supply deal with X-Press Feeders  

Letter of intent covers up to 15,000 tonnes annually for feeder carrier’s fleet.

Alan Yang and Yujin Kang, Flex Commodities. FLEX Commodities opens Seoul office with new Korea leadership team  

Dubai-based trader establishes South Korea presence with appointments of Alan Yang and Yujin Kang.

Eng. Sulaiman Ali Al Hadhrami, O Bunkering. O Bunkering appoints Sulaiman Alhadhrami as chief executive officer  

Omani bunker supplier names new CEO to lead growth and expansion in the maritime sector.

Shore power system. Zhoushan expands shore power infrastructure as part of emissions reduction drive  

Chinese port city reports 30% increase in shore power usage across terminals and berths.

Hamburg Express vessel. Hapag-Lloyd and Kuehne+Nagel partner on biofuel initiative for Asia-Europe trade  

Agreement covers 3,300-teu using waste-based biofuels, targeting a 2,979-tonne CO₂e reduction in 2026.

Rendering of a tug vessel. Berg Propulsion to supply electric propulsion systems for India’s green tugs  

Swedish firm to provide thrusters and electrical integration for two 60-tonne bollard pull battery-electric vessels.

Singapore skyline with Merlion and central business district. World Fuel seeks marine fuel supply executive in Singapore  

Role to manage supplier relationships and source marine fuel across South-East Asia and Australia-New Zealand.

OOCL Wisdom naming ceremony. OOCL names first methanol dual-fuel vessel  

Orient Overseas Container Line christens OOCL Wisdom, dubbed the world’s largest methanol dual-fuel container vessel.