DNV and RSI complete Study on decarbonising the Short Sea Dry Bulk Fleet
DNV and RSI complete Study on decarbonising the Short Sea Dry Bulk Fleet
DNV (Thailand), one of our corporate members, and the Responsible Shipping Initiative (RSI), have completed a new study: “Decarbonisation of the short sea dry bulk fleet”, co-funded by the Swedish Transport Administration, amid increasing pressure on shipping to achieve the IMO 2050 decarbonisation targets. The study finds that while Swedish cargo owners and charterers are committed to greener practices, a lack of regulatory and economic incentives for smaller tonnage is hindering their progress.
Europe’s short sea general cargo fleet is ageing rapidly, with many vessels nearing the end of their operational life and few replacements on order. Most of these ships fall below the 5000 GT compliance threshold for international and EU emissions regulations, which means that shipowners often have little incentive to invest in lower-emission vessels in line with decarbonisation trajectories. As a result, cargo owners who rely on these vessels, including RSI members EFO AB, Lantmännen, SSAB, Stockholm Exergi and Södra, face a strategic challenge: how to secure future transport capacity that helps them meet their climate goals.
Sebastian Tamm, Chairman of RSI and Manager Logistics Development at EFO, said “Through RSI, we’ve long promoted responsible shipping, focusing on working conditions, health, and safety. During the COVID lockdown, we shifted our focus to decarbonisation. However, our typical short-term Contracts of Affreightment limit shipowners’ ability to invest in radically different vessels. This study highlights the need to turn long-term decarbonisation goals into actionable short-term targets for contracting. This will help with planning, investment, and compliance with new regulations. We appreciate DNV’s insights and support in developing this study with us”.
The project was divided into three work packages (WP). WP1 established emissions baselines for each RSI member using automatic identification system (AIS)-based modeling, due to the lack of primary emissions data. This helped identify key cargo segments for green fleet renewal based on transported volumes and emissions. WP2 examined the costs of introducing green ships and calculated the “green premium” for vessels powered by e-methanol compared to marine gas oil (MGO). Measures such as government support and improved transport efficiency were evaluated to reduce costs and workshops were held with shipowners and fuel providers. WP3 used a fleet renewal model to assess the pace of renewal required to meet climate targets, comparing this with alternative strategies such as biofuel blending and operational efficiency improvements.
Hannes von Knorring, Principal Consultant and Global Cargo Owner Segment Lead at DNV Maritime, said: “A major challenge in adopting low-emission fuels is the uncertainty shipowners face around long term costs and market demands. Cargo owners may also lack insights into fuel options and their impact on supply chain emissions. While the smaller vessels used by RSI members are not yet regulated they must report from this year on emissions to the EU, making it easier for cargo owners to collect data and set actionable targets. Through this project, RSI’s mission is to share knowledge, set standards, and find common ground for future shipping needs, and we are pleased to support their efforts”.
About DNV (Thailand)
DNV is the independent expert in risk management and assurance, operating in more than 100 countries. Through its broad experience and deep expertise DNV advances safety and sustainable performance, sets industry benchmarks, and inspires and invents solutions. Whether assessing a new ship design, optimising the performance of a wind farm, analysing sensor data from a gas pipeline or certifying a food company’s supply chain, DNV enables its customers and their stakeholders to make critical decisions with confidence. Driven by its purpose, to safeguard life, property, and the environment, DNV helps tackle the challenges and global transformations facing its customers and the world today and is a trusted voice for many of the world’s most successful and forward-thinking companies. DNV (Thailand) provides both classroom and remote training services. Their course portfolio spans from management systems and product assurance to sustainability, supply chain and corporate responsibility, applicable to companies in all types of industries. They offer technical and industry specific courses, from healthcare and food safety to aviation, aerospace, defence, automotive and functional safety.
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