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Shipping sector seeks flexibility, voyage optimisation

  • : Oil products
  • 24/09/16

A multi-fuel approach is needed to tackle the complexities of energy transition in the shipping sector, said delegates at last week's Appec conference in Singapore.

With energy transition in the early stages, delegates agreed that conventional fuels will be used in tandem with a mix of low to zero carbon fuels in a flexible and cost-efficient way. "I think we're moving from a world where we have only one homogeneous choice to a world of heterogeneity when it comes to alternative fuels," said the head of maritime safety, sustainability and technical at Australian resources firm BHP Ashima Taneja. Chartering dual-fuelled vessels is "about creating that flexibility," Taneja added.

"Energy efficient technologies will definitely be a very strong component of hitting the 2030 targets," said the chief operating officer of Singapore bunker supplier and marine logistics firm Equatorial Marine Fuel Choong Sheen Mao, adding that "marine fuels will play a very significant role". "Running ships on a mix of alternative fuels and fossil fuel will provide "a bit more longevity to these conventional fuels" said Choong.

Maritime participants want to ensure that safety standards and infrastructure for alternative fuel bunkering are ready, with seafarers well trained to handle various fuels. Shipping firms need to have the "confidence" that multi-fuel bunkering procedures will remain largely similar regardless of port, said the director of decarbonisation and net zero pathways at the Maritime and Port Authority of Singapore New Wei Siang. Port agreements, like digitally-enabled green shipping corridors, serve as a vital collaboration that support the maritime industry in testing solutions and syncing knowledge.

"Emission reduction is not just changing fuels. It is also how to use your ship more efficiently," said the head of sustainability, decarbonisation and marine fuels at Singapore container shipping firm Pacific International Lines Chia Yujin. More fuel could be saved through green shipping corridors if ships "have clear visibility over port congestion situation at the end of the voyage, and… can adjust our speed to match our arrival," he added.

"A lot can be achieved by using alternative fuels… when price support is there but also focusing on other initiatives such as voyage optimisation, just running your feet more efficiently. That can help you achieve those targets involved," according to Taneja.

"We almost cannot use a one size fits all approach," said the managing director of Nigerian trading and logistics firms Cabipa Chibuzor DU Chiadikobi, noting that "emerging" economies remain a step behind in the energy transition journey. "I'm quite sure that shipowners want to have that guarantee that even if we make the transition to alternative fuel, certain destinations will be able to have the port infrastructure and, most importantly, the alternative fuel for them to be able to bunker."

"At the end of the day, shipping is still a business," said Choong. "We have to be competitive and you only can be competitive when there is a level playing field."


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