Milestone for Market-Led CO2 Solution
In time for COP21, 26 of the 35 charterers that include vessel efficiency in their supply chain selection have come forward to highlight their proactive measures on climate change. By using the Greenhouse Gas (GHG) Emissions Rating to find the more efficient vessels these industry players are using their influence to incite change in the maritime industry by rewarding shipowners that prioritize efficiency.
Following in the footsteps of early adopters Cargill, Huntsman and UNIPEC UK the following have come forward to announce their use of the GHG Emissions Rating:
Dubai Supply Authority
Hudson Shipping Lines
Olin - Blue Cube
Incitec Pivot Limited
Saudi Aramco Products Trading Company
The Mosaic Company
Par Pacific – HIE
Developed in 2010 in response to customer demand, the GHG Emissions Rating is a tool developed by RightShip, the maritime risk management specialist. It allows charterers and other stakeholders to assess the efficiency of vessels. It utilizes an A to G scale where A represents the most efficient ships and G the least efficient. It enables companies to find the more efficient vessels and avoid chartering inefficient vessels, thus lowering fuel bills while also helping them to calculate and benchmark their carbon footprint from shipping.
The 35 charterers that utilize the GHG Emissions Rating collectively undertake over 26,000 vessel movements and ship more than two billion dead weight ton annually.
Warwick Norman, CEO, RightShip said: “There has been a growing chorus of calls from within industry and The Organisation for Economic Co-operation and Development’s International Trade Foundation, among others, for the maritime industry to take decisive action to reduce shipping’s collective carbon dioxide emissions. These 35 charterers have taken proactive measures and are taking action on climate change now.
“This is good news for the environment, it’s good news for our customers as it supports their company corporate social responsibility policy while saving them money through a reduced bunker bill, and it’s good news for those shipping companies that invest in efficient vessels. With the continued oversupply of ships in the market, it is a form of natural selection as more efficient vessels are selected.”