Transcript Virtual Arrival

Virtual Arrival
an Initiative
by
Shipping to
reduce
GHG emission
Singapore
8 may 2012
[email protected]
Senior Manager Research & Projects INTERTANKO
Virtual Arrival, an OCIMF - INTERTANKO
project to reduce emission
Background
• Potential emission reduction for existing ships ≈ 5-15%, and
• Fuel costs 70% of operation/running costs for owners
• What then curbs emission reduction?
• Shipowners continuously working to reduce fuel consumption
• Many stakeholders involved– chain of responsibility
• Several commercial and practical obstacles such as who
should pay for the time, who should pay for the bunkers,
3rd party obligations, and contractual implications
• Virtual Arrival is a
project that involves
several stakeholders
and implies
co-operation and the
removal of commercial
obstacles
Chain of responsibility
Reducing fuel consumption is the most profitable
initiative an owner can take today
380 cst Fujairah
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
Daily costs fuel VLCC*: $/t
750
≈ $60,000 per day
Daily operation costs**:
600
≈ $12,000 per day
i.e.
450
All owners top motivated to
reduce emission
300
but
Optimal results can only be150
achieved through
co-operation within
0
the industry
and within the company
* Full operational speed
**Operation costs: crew, insurance, lub. oils, maintenance,
administration:
Shipping initiative to reduce emission
virtual arrival - VA
• Virtual Arrival is a sure method to
reduce emission
• Virtual Arrival taking advantage of
inefficiencies in the market, but does
not affect the market
• Virtual Arrival reduces port congestions
and contribute to improve safety
but
Virtual Arrival also changes the
economics and risk of the voyage
Co-operation between OCIMF and
INTERTANKO has co-operated to ensure
that changes in the risk and economics
has been orderly and not biased
Preconditions for Virtual Arrival
1. A known delay in discharge port
2. A mutual agreement between the ship operator
and charterer to perform a Virtual Arrival voyage.
Other parties may also be involved in the decision
making process, such as terminals cargo owners
3. An agreed Charter party Clause that established
the terms for Virtual Arrival
4. An agreement on how to calculate and report the
performance and fuel consumption of the ship
5. An agreement on how to assign the benefits
between the parties involved
6. Operator is compensated for the demurrage he
would have received if the voyage had been done
at service speed
How Virtual Arrival reduces GHG emission
150
CO2 emission:
Full speed
Reduced speed
Tonnes CO2 emission
120
90
60
30
0
1
Start
voyage
2
3
4
Virtual arrival
decision point
5
6
7
8
9
10
11
12
CO2 emission at full speed:
Tonnes
2,081
CO2 emission at reduced speed:
Reduced CO2:
1,179
902
Reduced SOx emission
Bunker saved
Assumed reduction NOx emission
13
23
290 (43%)
43%
14
15
Virtual
Arrival
time
16
17
Days
Voyage
length
Actual
Arrival
Time
A Weather Analysis Providers can be used
as a third party to do the Virtual Arrival calculations
1. Methods for calculations or the use of a
Weather Analysis Providers should be agreed
upon in advance to void post fixtures
discussions
2. INTERTANKO has worked out C/P clauses to be
used both when using and not using Weather
Analysis Providers
3. If GHG emission trading is implemented in
shipping the use of a certified 3rd party to do
the Virtual Arrival calculations my be required
Emissions Reduction Clause – Version 1
§
§
§
1. Charterers may request Owners to reduce speed during the laden voyage
to a specified average speed or to arrive at the discharge port not before a
specified date.
2. Owners may:
(i) refuse such requests on reasonable grounds, including but not limited to
existing contractual obligations, or for operational or safety reasons, or
(ii) provide Charterers with estimates of additional steaming time, and
reduction in bunker consumption, together with the invoice cost of the last
bunkers supplied. If Charterers agree Owners' estimates prior to any
commencement time provided by Owners, Owners will instruct the vessel to
comply with Charterers’ request.
3. For the avoidance of doubt, Charterers may make further requests in
accordance with sub-clause 1 above at any time before or during the
course of the voyage.
4. Charterers shall pay for the additional steaming time at the demurrage rate,
less 50% of the bunkers saving both as set out in Owners' estimates under
sub clause 2. Payment to be made against Owners’ invoice together with
freight.
5. Charterers shall incorporate this provision in all Bills of Lading and shall
indemnify Owners in respect of all claims against Owners arising from
compliance with the Charterers’ requests under sub clause 1. above.
Emissions Reduction Clause – Version 2
§
§
§
1. Charterers may instruct Owners to reduce speed during the laden voyage to a
specified average speed or to arrive at the discharge port not before a specified date,
subject to Owners’ consent, which is not to be unreasonably withheld. It shall be
reasonable for Owners to withhold consent due to, inter alia existing contractual
obligations, or for operational or safety reasons.
2. Charterers may instruct Owners to further vary the performing speed (subject to the
limit of the vessel’s service speed) at any stage during the voyage. Any further
reduction of the speed shall be subject to Owners’ consent in accordance with
Sub-clause 1.
3. Charterers shall compensate the Owners for all extra steaming time at the demurrage
rate. Any bunker savings shall be shared 50/50 between Owners and Charterers.
4. The bunker invoice price from the last bunkering shall be used to calculate the bunker
savings. Any such savings may be deducted from the compensation payable for extra
steaming time or shall be reimbursed by Owners if no such deduction has been made.
5. Following completion of the voyage, the Master shall calculate the extra steaming time
and any bunker savings arising from Charterers’ instructions and present his
calculations to Charterers.
6. If Charterers instruct a Weather Analysis Service Provider (WASP) Owners shall
provide the WASP with such information as the WASP may reasonably require for its
calculations.
7. Charterers shall incorporate this provision in all Bills of Lading and shall indemnify*
Owners in respect of all claims against Owners arising from compliance with the
Charterers’ instructions under this clause.
.
Conclusion
1.
Shipping see the need to reduce GHG emission and is actively
working to do so
2.
Virtual Arrival is a simple practical concept to reduce
GHG emission
3.
Virtual Arrival a robust concept that creates a win-win situation
for all parties involved and demonstrate a pro-active industry
You can find the Virtual Arrival manual at:
http://www.intertanko.com/Topics/Environment/Air-Emission--GHGs1/Air-Emission--GHGs/Virtual-Arrival/