A new service has been introduced to enable the shipping industry to benchmark carbon emissions from their vessels against a set of indicative figures calculated by the Baltic Exchange.
With growing international scrutiny and a proliferation of initiatives focused on emissions reductions, tackling the challenge of maritime decarbonisation is a priority across the shipping industry. In 2020, the International Maritime Organisation (IMO) announced a target to reduce absolute emissions from global maritime activity by 50% in 2050 compared to 2008 levels.
To support industry decarbonisation efforts, the Baltic Exchange has moved to provide a set of benchmark emission indicators across our routes. We are already positioned as the world's only independent source of maritime market information: our financial data underpins commercial contracts and enables the settlement of freight derivative trades.
We have calculated a set of indicative CO2 emissions figures and Energy Efficiency Operating Indicator (EEOI) reference values. Initially these cover the standard Baltic vessels trading on the 35 dry bulk routes for which we provide spot freight assessments. These vessels include Capesize, Panamax, Supramax and Handysize types. The data is publicly available at www.balticexchange.com/en/data-services/market-information0/carbon-emissions-.html
Over time, it is hoped that these figures will provide the shipping industry with a valuable point of reference as the market seeks to factor in carbon emissions alongside charter rates. By understanding the variability in operating efficiencies across routes and size classes, owners and charterers will be able to take practical steps to minimise their carbon footprint.
Currently, whilst vessel owners and operators may have access to such information on their own fleets, a lack of available reference data for the industry as a whole makes market level comparisons more challenging. A calculation of total CO2 emissions based on vessels travelling at both full and eco speed as well as EEOI values has been made for each route.
The EEOI is one of a range of measures which the IMO has endorsed to support and measure the shipping industry's progress towards its carbon reduction goals and provides insight into a vessel's efficiency at sea. The EEOI enables operators to measure the fuel efficiency of a ship and to gauge the effect of any changes in operation, such as improved voyage planning, more frequent propeller cleaning, or introduction of technical measures such as waste heat recovery systems or a new propeller. An annualised, weighted-average portfolio level calculation of the EEOI serves as the primary metric used by the Sea Cargo Charter (SCC) to track organisational alignment to IMO decarbonisation trajectories.
There is a process in place for managing changes to benchmarks and the Baltic Exchange will work with members to ensure that they are relevant to the underlying market. This will ensure that the reference figures published to the market remain reflective of changes in the operating profile of the global fleet over time.
In the longer term, the Baltic Exchange will look at providing an EEOI calculation and certification service and acting as an external calculating body for companies needing to provide EEOI information to third party organisations such as the SCC.
With growing international scrutiny and a proliferation of initiatives focused on emissions reductions, tackling the challenge of maritime decarbonisation is a priority across the shipping industry. In 2020, the International Maritime Organisation (IMO) announced a target to reduce absolute emissions from global maritime activity by 50% in 2050 compared to 2008 levels.
To support industry decarbonisation efforts, the Baltic Exchange has moved to provide a set of benchmark emission indicators across our routes. We are already positioned as the world's only independent source of maritime market information: our financial data underpins commercial contracts and enables the settlement of freight derivative trades.
We have calculated a set of indicative CO2 emissions figures and Energy Efficiency Operating Indicator (EEOI) reference values. Initially these cover the standard Baltic vessels trading on the 35 dry bulk routes for which we provide spot freight assessments. These vessels include Capesize, Panamax, Supramax and Handysize types. The data is publicly available at www.balticexchange.com/en/data-services/market-information0/carbon-emissions-.html
Over time, it is hoped that these figures will provide the shipping industry with a valuable point of reference as the market seeks to factor in carbon emissions alongside charter rates. By understanding the variability in operating efficiencies across routes and size classes, owners and charterers will be able to take practical steps to minimise their carbon footprint.
Currently, whilst vessel owners and operators may have access to such information on their own fleets, a lack of available reference data for the industry as a whole makes market level comparisons more challenging. A calculation of total CO2 emissions based on vessels travelling at both full and eco speed as well as EEOI values has been made for each route.
The EEOI is one of a range of measures which the IMO has endorsed to support and measure the shipping industry's progress towards its carbon reduction goals and provides insight into a vessel's efficiency at sea. The EEOI enables operators to measure the fuel efficiency of a ship and to gauge the effect of any changes in operation, such as improved voyage planning, more frequent propeller cleaning, or introduction of technical measures such as waste heat recovery systems or a new propeller. An annualised, weighted-average portfolio level calculation of the EEOI serves as the primary metric used by the Sea Cargo Charter (SCC) to track organisational alignment to IMO decarbonisation trajectories.
There is a process in place for managing changes to benchmarks and the Baltic Exchange will work with members to ensure that they are relevant to the underlying market. This will ensure that the reference figures published to the market remain reflective of changes in the operating profile of the global fleet over time.
In the longer term, the Baltic Exchange will look at providing an EEOI calculation and certification service and acting as an external calculating body for companies needing to provide EEOI information to third party organisations such as the SCC.
The shipping community is encouraged to provide feedback on the reference figures and to provide their own findings and operating performance which the Baltic can then use to validate, maintain, and update the index EEOI values.
Source: Mr Mark Jackson,CEO,Baltic Exchange
The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
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