safety security sustainability of the maritime supply...
TRANSCRIPT
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Safety, Security, & Sustainability of
The Maritime Supply Chain
Capt. Anuj Chopra 21st June 2016
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. . . In a sentence! RightShip is an innovative
organization with a social conscience,
best known for our work on maritime
safety.
We also have a growing reputation for
our work in environmental
sustainability.
Safety, Security & Sustainability of the Maritime Supply Chain
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• Independent company formed in 2001
• Ship vetting & risk management
• GHG Emissions Rating & Enviro Score
RightShip
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We support . . . Safety, Security & Sustainability of the Maritime Supply Chain
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• The Freight Mismatch – OP Cost vs Charter hire
• Sustainability Expectations – Trade Stakeholders vs Shipping
• Does Efficiency Pay? Big Data & The first movers
• What can we do!
Today’s Discussion Safety, Security & Sustainability of the Maritime Supply Chain
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• Vessel Running cost – OPEX + CAPEX
• Rates in recent past
• Is this Sustainable?
Freight
http://www.bloomberg.com/quote/BDIY:IND
Safety, Security & Sustainability of the Maritime Supply Chain
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• COP21 – Dec’15 – 177 nations agreeing to reduce emissions
• Stakeholders Awareness & Societal Demand
• The Corporate & Political Dialogue – Emissions Trading
• Are we on the same page?
Stakeholders Safety, Security & Sustainability of the Maritime Supply Chain
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GHG to NOx & DPM to VOC & Ozone
Shipboard GHG – CO2 produced in
Engines
Collateral production of NOx & DPM
depending on Engine Tier
Complex reaction of NOx
with VOCs in air produces
Ozone in lower atmosphere
Lower level Ozone, NO2 & DPM are directly related to Cancer, breathing difficulty & aggravation of lung infections - NIH
Ozone & NOx = http://www.ncbi.nlm.nih.gov/pubmed/7489804
DPM = http://www.ncbi.nlm.nih.gov/pubmed/22126432
DPM = carcinogenic – see International Agency for Research of Cancer
THE LINK . . . Safety, Security & Sustainability of the Maritime Supply Chain
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“It seems clear to me also that climate change is a problem which can no longer be left to a future generation. When it comes to the care of our common home, we are living at a critical moment of history,” the pope said at a welcoming ceremony.
Safety, Security & Sustainability of the Maritime Supply Chain
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DOES IT PAY TO BE GREEN?
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The Shipping Cycle Safety, Security & Sustainability of the Maritime Supply Chain
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• Individual vessel energy efficiency rating
• Based on industry standard (e.g. IMO EEDI)
• Compares vessel design characteristics on like-for-like basis
• Applies to all ship types and sizes
• Easy-to-interpret European rating scale
GHG Emissions Rating
Safety, Security & Sustainability of the Maritime Supply Chain
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Calculating The A-G GHG emissions rating
100,000 DWT Bulker
90,000 DWT Bulker
10% smaller in DWT 10% larger in DWT
4.334 4.064 4.334 3.689 4.459 4.334 3.994 4.007 3.742 4.401
4.159
1 2 3 4 5
EVDI / EEDI
Calculate EVDI Log
Value
Apply Weights to Log Values
Calculate Z-Score
GHG Emissions
Rating
110,000 DWT Bulker
Safety, Security & Sustainability of the Maritime Supply Chain
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GHG Emissions rating
Robust Methodology: DNV GL reviewed
Easy to use, understand
Corporate Social Responsibility, transparency
Reduces CO2 & associated Emissions
Cheaper to run: Tyndall research
Free of charge: www.shippingefficiency.org
Safety, Security & Sustainability of the Maritime Supply Chain
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Page 16 Market moves faster!
40 charterers factor in energy efficiency — 2+ billion tons of cargo — 25+% of global shipments — 26,000 vessel movement per year
7 ship owners publicly endorse GHG emissions rating
Financial Institutions — ABN Amro, HSH Nordbank, KfW — Factor vessels’ energy efficiency into underwriting process
Ports incentive programs — Environmental ratings basis for port fee discounts — PMV Vancouver, Port Prince Rupert
5 ~ 9 % savings of the Gross Freight Bill!
Safety, Security & Sustainability of the Maritime Supply Chain
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Tyndall Center Study - Results AVERAGE SAVINGS: 5.2% – 8.6%
Case-by-case assessment
• 247 cases assessed
• 136 cases suitable for comparison Fuel Consumption and CO2 Savings
• Majority of individual cases achieved savings
• Charter party key factor:
– Size / utilization
– Speed (design speed) Shipmap.org
Safety, Security & Sustainability of the Maritime Supply Chain
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“Explicitly considering fuel
efficiency in chartering
decisions offers significant
fuel, financial, and emissions
savings”
Conclusion
Safety, Security & Sustainability of the Maritime Supply Chain
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Reducing Shipping’s GHG Emissions Requires a Collaborative Approach
Safety, Security & Sustainability of the Maritime Supply Chain
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GHG Emissions Rating – Environmental Star Score
• Enviro Score 1 / 6 / 33 vessels with 5/4/3 Score
• Access to rating provided free to ports
First years – 2014/2015
• Discounts $113,872/$140,246 to 140/133 vessels
• 116/7/5 calls qualified through RightShip’s C/B/A
PORT PRINCE RUPERT Safety, Security & Sustainability of the Maritime Supply Chain
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Page 21 A typical P I P Safety, Security & Sustainability of the Maritime Supply Chain
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A reputed international flag Apr 2014 – Mar 2015 A Rated Vessels G Rated Vessels Full Flag’s Fleet Global Fleet
Vessels 82 25 2,638 73,874
Inspections 128 50 5,744 75,232
Detentions 0 1 64 2,121
Deficiencies 74 98 8,189 172,401
Inspections with Deficiencies 31 23 2,435 39,702
Deficiencies per Inspection 0.58 1.96 1.43 2.29
% Inspections with Deficiencies 24.22% 46.00% 42.39% 52.77%
% Inspections with Detentions 0% 2.00% 1.11% 2.82%
SAFETY Safety, Security & Sustainability of the Maritime Supply Chain
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The transformative power of computing Big data, social, mobile and cloud
1960 1980 1990 2013/14
World Wide Web and e-business
Client– server PC
Back-office computing
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Big data
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What to do with big data? The core of big data programs is business analytics
Business analytics allow us to analyze the date we are collecting • Look for anomalies
• Look for trends
• Compare intelligently
Cubing allows us to ‘slice & dice’ our data in multiple ways
Analytics can be linked to forecasting
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SUMMARY
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Sustainable Vessel Selection Pays
Safety, Security & Sustainability of the Maritime Supply Chain
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• Maritime Supply Chain - be Safe, Secure & Profitable
• Accelerate industry sustainability - working together
• Opportunity to incentivize energy efficiency
• Environmentally Efficient Ship is a Sustainable Ship!
“Eco Vessels = Healthy / Profitable / Safer Vessels = Lower Risk”
Safety, Security & Sustainability of the Maritime Supply Chain
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THANK YOU! www.rightship.com [email protected] @RightShip_ RightShip
www.shippingefficiency.org @shipefficiency