A study of the charter market released this week confirms that it is charterers who benefit from fuel savings derived from efficiency measures while owners, who pay for the technology, get little return.
The research, conducted by the UCL Energy Institute and environmental lobby group Carbon War Room, cites the lack of reward for owners as a barrier to shipping moving toward a low carbon future.
Its research indicates that a high-efficiency “eco” capesize bulker can earn as much as $5,500 per day or $1.5m annually in fuel savings compared to a less efficient vessel.
However, looking at the charter earnings of these vessels compared to less efficient vessels, the study said there is very little evidence that owners are earning a premium.
The only evidence the study can find of owners earning a premium is in the pre-2008 recession boom years.
Since the market crash that premium has disappeared. Senior associate at Carbon War Room James Mitchell said: “Prior to the 2008 market crash we saw efficiency premiums in the panamax time charter market. Those premiums disappeared with the crash, despite record-high fuel costs and the record-high fuel savings for owner-operators and charters of efficient ships.
“These results are a challenge to the industry, to its business model, and to whether markets can be harnessed to help shipping meet the challenges of a low carbon economy.”
