Tag Archives: greenhouse gas emissions

Port call optimisation reduces greenhouse gas emissions in ports

Drewry is well-known for its expertise in maritime-related matters. In a recent market opinion piece, they suggest that maritime emissions can be reduced rather simply, with port call optimization. They mean to reduce the time ships sit near a port waiting for their berth to open up.

Some ports have been successful with appointment windows. But the Drewry approach includes slow steaming to hit the port berthing window close to the time, instead of standing offshore running engines and emitting pollution. The slow steaming itself is a tested measure for reducing emissions, though it doesn’t eliminate them. The two efforts combined could save a lot of pollution, and now in some places such as the EU, emission charges based on actual fuel use numbers.

Eliminating waste in a system, such as waiting time waste, is a tried and true operations management or lean technique. But in the case of maritime shipping and ports, a lot of coordination is required. Systems need to be in place to provide accurate information about ocean carrier voyage schedules. Sailing times between ports can vary a lot, because of factors such as weather and route adjustments.

But also, both ocean carriers and ports need to share information and cooperate on setting berthing schedules. A late loading in Shanghai, for instance, will affect the projected arrival time in Long Beach. the two ports and the carrier will need to share up-to-the-minute (or hour) information about progress. Will they do it? It will require a level of interaction never before seen.

I think that ultimately, ports and carriers will be driven to this by the gains that can be made. but I think it will be a long time coming.

Update: Port optimization can actually prevent deaths. Hong Kong University of Science and Technology (HKUST) has recently studied the number of deaths that could be prevented by port waiting time improvement.

Sam Chambers June 27, 2024

Port efficiency gains can save 10,000 premature deaths annually

10 Jun 2024

https://www.drewry.co.uk/maritime-research-opinion-browser/maritime-research-opinions/port-call-optimisation-is-key-to-reducing-greenhouse-gas-emissions-in-ports

EU ETS at a glance

I found this article very informative. It’s from Bureau Veritas, a classification society based in the EU.

It makes very clear how the EU’s emissions trading system (ETS) will work for the maritime industry. It’s part of the Fit for 55 package that aims to reduce emissions by maritime and other sectors in the EU.

The timeline is very important for shipowners and ship charterers. The rules require payments for emission credits, so there will be a financial impact. It remains to be seen how chartering contracts will divide the costs of the credits between shipowners and charterers, but the financial burden will be there.

Most people agree that the emissions trading credit system is an extremely important motivator for participants in the maritime industry to get serious about reducing emissions. We are seeing activity now to reduce emissions, but the pace has to pick up if the EU goals of a 55% reduction by 2030 are to be met. Investment is needed, and internalizing the cost of emissions through the trading of credits is an important lever to use. It’s a good example of a sensible regulation to impel action. More nations should try it.

The FAQ format of the article makes it easy to see the answers.

One unfortunate issue is the somewhat longer time frame for implementation of the ETS; the first bite starts in January 2024, covering 40% of emissions. This escalates to 70% in 2025 and 100% in 2026. Another critique of the system is that for ships that either enter or exit the EU ports fro outside the EU, they only pay for half the emissions. It’s a compromise that is necessary, since nations outside the EU might have their own emissions trading regimes, or none at all. Having it apply only to EU port visits insures more cooperation.

The basis of the trading is an updated MRV plan, which must be kept updated. There will be an accredited verifier of the plan for each fleet owner. The fleet’s individual greenhouse gas (GHG) emissions must be monitored from January 1 of 2025, and a report submitted by March. Then by September, the emissions will be calculated (surrendered, in the words of the document) and the emissions credits purchased on 40% of it.

Penalties include expulsion orders from EU ports, or a flag detention order until obligations are fulfilled, for EU member state flagged ships.

EU Emissions Trading System Directive | Bureau Veritas M&O

EU Emissions Trading System Directive | Bureau Veritas M&O