CWR: Charterers Representing 20% of Global Shipped Tonnage Shun Inefficient Vessels

Carbon War Room says that charters are using the GHG Emission Ratings to determine vessel efficiency.

Charterers representing 20 percent of global shipped tonnage now have policies in place to avoid using the most inefficient ships based on their GHG Emissions Rating, according to the Carbon War Room (CWR).

The GHG Emissions Rating, developed by nonprofit organization CWR and the maritime risk-management specialist RightShip, determines efficiency of vessels based on a scale of A to G, where A represents the most efficient and G the least efficient.

Mosaic Company, one of the 24 RightShip charterers using GHG Emission Ratings, already exclude G-rated vessels from its 130 annually chartered vessels, and says they are reviewing options to exclude F-rated vessels.

"By using more-efficient ships, we are gaining cost efficiencies and furthering our efforts to reduce Mosaic's carbon footprint," said Neil Beckingham, Director of Sustainability at the Mosaic Company, commented.

Jeff Erikson, Director of Global Projects at CWR, said, "With some charterers stating they would consider paying a premium for eco-efficient ships, inefficient ships will become increasingly unmarketable."

"We see current, low bunker fuel prices as an opportunity to get ahead of the market and can help owners find the financing to retrofit their vessels."

Usage of the GHG Emissions Rating reportedly increased by more than 450 percent in the past two and a half years, now applying to 1.95 billion shipped tonnes globally.

"Mosaic and the other 24 RightShip charterers using the GHG Emissions Rating are leading the industry towards greater efficiency, as charterers lower their annual fuel bills and greenhouse gas emissions, while showing a willingness to pay more for efficient vessels," said CWR.

Last month, CWR said banks are increasingly looking at energy efficiency data in making decisions on whether to finance vessels.