Reduce shipping emissions and spot commercial opportunities (webinar)

Our webinar on how reducing shipping emissions equals increasing your competitive edge showed that commercial decision-makers in the shipping industry are now picking up speed on decarbonisation. Do you want to stay ahead of the game? Watch our webinar.
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October 25, 2022

Our webinar on how reducing shipping emissions equals increasing your competitive edge showed that commercial decision-makers in the shipping industry are now picking up speed on decarbonisation. Do you want to stay ahead of the game? Watch our webinar.

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Please find answers to the attendees questions that we did have the time to pose during the webinar: 

Anonymous Attendee: Do you foresee the ETS to enter Asia or ASEAN anytime soon?

First of all, 50 % of emissions from all global voyages to and from the EU (extra EU voyages) are expected to be included in EU ETS. China and Japan have explicitly said that they want to include shipping in some of their existing emissions trading systems and that they are looking to the EU for inspiration on how to implement it. If the EU decide to include 50 % of emissions from extra EU voyages, it is likely that the design will be introduced in other regional or nationalemissions trading systems.

Tom Baak: What data input do you use to calculate the emissions of vessels that do not give their data? Are the emissions well-to-wake or tank-to-wake?

The Ship Finder calculates expected emissions for all tanker vessels in the fleet using the same approach; by combining emissions data that are anonymised and clustered, with AIS track, ship specification variables, and more. If a ship has never reported via Siglar Carbon, the Ship Finder would still provide an estimate selecting the data points from the underlying data that statistically provide the most accurate estimate for the voyage and vessel in question.

We use the tank-to-wake emission factors as provided in IMO MEPC.308(73), which are the factors applied for EEDI/EEXI/CII calculations. For instance, we apply 3.114 ton CO2 per ton heavy fuel oil, and3.206 ton CO2 per ton marine gas oils and diesel oils.

Anonymous Attendee: How can commodity charterers actually earn or save money on shipping emissions?

We see first movers setting up carbon trading to be able to take active positions around this new exposure as well as including carbon insight into their physical chartering positions making them ready for the cost of emissions and by that having competitive advantage on freight cost.

On company level, paying up on freight to ensure the most carbon efficient alternatives is in our experience one of the most cost-efficient actions to reduce a company's overall footprint.

Rishib Satija: How as a ship owner I get advantage of having silicon paint, Duel Fuel engine onboard and other emission reducing measures when your software compares with other ships?

For ship with improvements beyond what is reflected in the specification variables, we offer owners and operators to report emission numbers which in turn will be reflected directly in any estimates provided for Siglar Carbon clients. This way we help promoting the impact of such emission reducing investments to potential charterers.

Anonymous Attendee: What is the accuracy of your estimates? And what sources have you validated against?

Our estimation models take into account approx. 20 design specification variables for a ship. We apply machines learning methods, which is a dynamic approach allowing the selection of underlying data that provides the statistically most accurate emissions estimate for the ship and voyage in focus.

Anonymous Attendee: What role will CII play in the estimation of CO2 emissions or ships in 2023?

From 1 Jan 2023 the "meter" for calculating the first CII rating will start to run. In 2023 we expect owners to be more reluctant to compete for cargoes that is expected to have a negative contribution to the CII calculation. Hence, such cargoes might receive less interest from owners with the consequence of upward pressure on freight rates. From the charterers’ point of view, 2023 might be a black box when it comes to CII, as no CII rating will be available, yet charterers’ cargoes will be judged by owners on the expected contribution to the annual CII. Thus, unless charterers have access to CII calculation tools, they would be blindfolded.

Anonymous Attendee: If all my data on my ship is captured in your system, do you have any protection against my speedand consumption data being surfaced from that data?

There is no direct pass through of a reporting ships speed and consumption numbers (or any other ship and voyage specific details for that matter). Data is anonymised and clustered with other ships and voyages and cannot be reversed engineered back to an individual ship or voyage.

Anonymous Attendee: Can Siglar reporting done by captain/owners not be linked to vessel management systems like Vesson/Shipnet etc to save manual input by captain/owners?

Yes, API from Vessel Management Systems is an option. The data will go through the same quality assurance process and get our 3rd part verification no matter what channel they come through.

Anonymous Attendee: How are you estimating the CO2 emissions? What is your modelling approach and accuracy? What happens when there is a gap between your prediction and actual CO2 emissions – who covers that exposure?

Users of the Ship Finder can expect an accuracy in the estimates of at least 90 percent over a 20 day period, and higher for longer periods. This accuracy number is calculated using one part of our data set to train the model, thereafter estimate other voyages not part of the training data set. The accuracy is then measured by comparing the modelled emissions estimates with the actual documented emissions for these voyages

Any performance guarantees in a charter party agreement is a commercial matter between the owner and the charterer, as is any arrangement to settle differences between an agreed expected performance and the actual performance. Siglar Carbon provides emissions monitoring and reporting services to customers and calculate th eactual emissions performance numbers upon completion of a voyage.

All data collected in this process is enriched by Siglar Carbon with additional layers of data and used to train and improve the emissions estimation models.