Cargill, one of the world’s leading international transporters, and UNIPEC UK Company Ltd, trader of crude oil and oil products, announced today that they will only charter the more efficient vessels operating in the shipping market. This commitment is the first of its kind in the industry to reduce the existing fleet carbon emissions.
The announcement, from Cargill, Huntsman Corporation and UNIPEC UK who combined charter over 350 million tonnes of commodities annually, signifies a milestone for the vessel fuel efficiency ratings system, 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 CO”
- Cargill, UNIPEC UK to Charter Only Eco-Friendly Ships (worldmaritimenews.com)
- Cargill, Huntsman to Stop Using Fuel-Inefficent Vessels – Bloomberg (bloomberg.com)
- Breaking: Shipping Industry Takes Massive Step Towards Energy Efficiency (triplepundit.com)
- Commodity Giants Get on Board with Branson’s Carbon War Room, Efficient Ships Only Please (gcaptain.com)
- Cargill Plans 18% Speed Cut for Ships on Record Fuel Cost – Bloomberg (bloomberg.com)
On Tuesday 27 March the load-out commenced. This weekend, the heavy lift vessel Happy Dragon will sail away with her giant load.
”This is probably the largest single subsea delivery we have made from Egersund. I’m proud of my colleagues, and satisfied on behalf of our customer Eni Norge AS, that we are delivering this on schedule and on budget,” says Svein Oskar Nuland, head of Aker Solutions’ yard in Egersund, Norway.
“Our project team at Fornebu and here in Egersund has worked tirelessly to complete this important milestone”.
The delivery of the subsea manifolds and riser bases is the yard’s second hardware load-out for the Goliat subsea project. The first, consisting of eight subsea templates, was also delivered on schedule when it sailed out of Egersund at the end of March last year.
Aker Solutions’ Goliat contract, signed in September 2009, comprises of engineering, procurement and construction of a complete subsea production system. Subsea hardware deliveries include eight overtrawlable four-slot subsea templates with manifolds, wellheads system, 24 subsea trees, subsea and topside controls systems, 20 kilometres of steel tube umbilicals, work-over equipment and a tie-in and connection system.
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- Norway: Aker Solutions Secures Draupne FEED Contract (mb50.wordpress.com)
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- Norway: North Sea Giant Stays with Technip (mb50.wordpress.com)
- STX OSV Adds to their Backlog, DOF ASA Sends Newbuild Order for Subsea Construction Vessel (mb50.wordpress.com)
- Swire Acquires Norway’s Subsea Specialist (mb50.wordpress.com)