Bimco and the International Chamber of Shipping (ICS) have cautiously welcomed some major bulk players’ recent initiative in improving emissions reporting.
Backed by Shell, Cargill and 15 other dry and wet cargo trading companies and ship operators, Sea Cargo Charter requires shipowners to share fuel and tonnage data with charterers.
In their emailed statements to TradeWinds, the world’s two largest shipowner organisations praised the charter’s effort in decarbonising shipping — but not without reservations.
“ICS welcomes any move that advances the agenda to decarbonise shipping and the supply chain, absolutely,” the industry body said.
“But we do believe that this one would have a better chance of success if it was to be aligned with the reporting requirements set out by governments…to ensure that the reporting requirements are as efficient as possible.”
Different methodologies
To combat climate change, member states of the International Maritime Organization have aimed to improve carbon intensity by 40% before 2030 and 70% by the mid-century point from the 2018 level.
But there have been various ways of calculating carbon intensity, generally defined as carbon emissions per transport work.
Sea Cargo Charter calculates the indicator based on actual amount of cargo transported. Poseidon Principles, also backed by Global Maritime Forum, uses a vessel’s nominal capacity in dwt terms as a proxy to estimate.
The IMO is due to finalise the detailed definition of carbon intensity next month.
A shipowners’ representative privately said the inconsistent methodologies would add “another layer of bureaucracy” during the reporting process.
“They seem to have not taken into consideration that, if you can align the metrics, you can reduce the chance of misunderstanding,” he added.
The representative also questioned whether fuel consumption data can truly reflect a ship’s carbon intensity. He said: “It’s heavily influenced by environmental conditions and weather.”
Old data
Bimco, whose membership controls 60% of the world’s merchant fleet, expressed concerns that Sea Cargo Charter’s target is based on old data that would distort reduction targets.
The charter’s signatories are expected to halve emissions from their international shipping operations by 2050, in line with the IMO’s long-term goal.
However, its projection of emissions in the coming decades is from the regulator’s Third IMO Greenhouse Gas Study 2014.
“Bimco welcomes initiatives which emphasise the charterers’ responsibility and commitment to allow the shipping industry to help meet the goals of the IMO initial strategy,” the Denmark-based organisation said.
“We hope the framework will soon reflect the results of the Fourth IMO Greenhouse Gas Study.”
Published earlier this year, the latest IMO study has adjusted down global economic growth forecasts and refined the projection model.
This has resulted in much lower expectation of CO2 emissions towards 2050. The signatories’ targeted alignment trajectory will be different when calculated from the latest study, another shipowners’ representative said.
The charter has committed to updating its emissions data later this year or in 2021.
