The maritime industry’s transition to a lower emissions future is being driven by a developing set of regulatory requirements. The International Maritime Organization (IMO) continues to evolve its emission reduction ambitions, while the EU Emissions Trading System (EU ETS) and FuelEU Maritime Regulation (FuelEU) are adding complexity to vessel operations. Compliance isn’t negotiable but the switch to new, lower-emission fuels, has made route planning a more complex process.
Bunker supply chains were historically straightforward, with vessels running primarily on conventional heavy fuel oil (HFO) or marine gas oil (MGO). This changed with the introduction of Emission Control Areas (ECAs) and restrictions on NOx and SOx.
“At the time, these regulations divided the SOLAS fleet and created new pressures in the bunker supply chain,” says Barry Hooper, Lloyd’s Register VP of Product and Tech. “This led to bunker shortages of ECA fuels in EU ports, increased hire rates for compliant vessels and spikes in very low sulphur fuel oil (VLFSO) bunker prices.”
The transition to future fuels adds further complexity across a voyage, explains Hooper, noting that operators must understand a vessel’s suitability for cargo, operational, and regulatory requirements – while also accounting for the availability and greenhouse gas (GHG) intensity of their fuels in their intended operating regions.
“Shipping operators tend to buy fuels on the spot market, but increasingly they may have to look at risk-sharing agreements with fuel producers to meet particular requirements,” highlights Dr Edmund Hughes, International Bunker Industry Association (IBIA) representative to the IMO.
“They’re also having to look at energy efficiency, but even if they make productivity gains, the new fuels have a lower energy intensity, which will therefore require them to take on fuel at more regular intervals.”
As the regulatory framework becomes more complex and the consequences of non-compliance more significant, a forward-looking approach becomes essential. A new generation of digital technologies is helping shipping operators to navigate these uncharted waters. These platforms and route planning software can be deployed to help vessels optimise fuel use.
Lloyd’s Register recently launched its Risk Manager solution to help simplify EU ETS and FuelEU compliance and manage emissions risks across entire fleets. It achieves this by providing a comprehensive view of a fleet’s exposure to emissions regulations. The platform is also designed to adapt to evolving regulations.
Source: Global Data