World News
Ship Efficiency Efforts Being Held Back by Poor Market Conditions, Not Technology: Expert
Ongoing poor market conditions are proving to be a greater barrier for vessel efficiency efforts than a lack of technology, ship efficiency expert Nikos Petrakakos has told Ship & Bunker.
"Ships are not improving not because of the lack of technology, but rather because of the dynamics of the poor market along with the market being mostly short term or voyage charters which don't give enough of an incentive to owners to invest. This leaves no alternative than for regulators to help drive this shift," he said.
The comments come amid recent debate on Ship & Bunker about the ease and efficacy of the reductions Shipping can make to its greenhouse gas (GHG) emissions, with consultant and veteran industry expert Rudy Kassinger previously suggesting that most of the reductions will come from operational improvements.
"The diesel is already very fuel efficient, and unlike land transport where all electric is not far away, the diesel is destined to be the means of power for ocean going vessels for the forseeable future," Kassinger has further explained to Ship & Bunker.
That said, Petrakakos believes there are still worthwhile improvements to be made by Shipping.
"There are lots of improvements with less than three years payback that are still not being implemented by most owners. The technology to reduce emissions on ships by 50% is already there, and is much more cost effective than the technology to reach that same reduction in cars or other industries, especially given the longer lifetime of ships," he told Ship & Bunker.
"The sticky point will only be on how to improve further beyond existing technology to reach 2050 emissions targets, but new cost effective technologies will surely be developed over time."
Earlier this month Petrakakos told Ship & Bunker he believes political pressure means the Shipping industry must act on reducing its emissions even if the environmental benefits are zero.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 647.00 | 8.50 | 779.00 | 29.50 |
| Rotterdam | 608.00 | 11.00 | 764.50 | 24.50 |
| Houston | 636.50 | 8.00 | 807.50 | 5.00 |
| Fujairah | 649.50 | 4.00 | 888.50 | 11.50 |
| Global 20 Ports Average | 665.50 | 6.50 | 870.50 | 14.50 |
| Global 4 Ports Average | 635.50 | 3.50 | 810.00 | 17.50 |
| Global Average Bunker Price | 725.00 | 2.50 | 925.50 | 8.00 |
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