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Navigating Horizons: Maritime Musings and Industry Intel
Oceanscore in the news
November 14, 2024OceanScore supports tricky bunker selection process under FuelEU Maritime
“Fuel selection is the most important lever under FuelEU,” said OceanScore Managing Director, Albrecht Grell. “Your choice of fuel can either create a surplus or a deficit in your compliance balance, directly affecting your costs.” Grell added: “Choosing the right fuel can help avoid penalties and even create revenue by pooling surpluses. But not all alternative fuels are the same, and their viability often depends on future pooling prices, which are hard to predict.” FuelEU charts a course for reducing emissions in shipping, with a target near net-zero by 2050. For now, two main options are available to meet the greenhouse gas (GHG) threshold of 89.3g CO2e/MJ until 2029: LNG and LPG: These fuels, when used in dual-fuel engines, will meet the rules and can generate surplus compliance balances. However, their benefits will decline until 2040 as limits tighten. Biofuels: These are a good option for most vessels. They are usually used in blends (eg. B20-B30) with conventional fuels. These blends will be compliant until 2040; higher blends or pure biofuels will be needed thereafter. One issue is that EU ETS and FuelEU Maritime treat biofuels differently. Under EU ETS, biofuels are considered zero-emission, meaning companies do not need to buy carbon credits. But under FuelEU, the rules are stricter. “FuelEU doesn’t count all biofuels equally,” Grell explained. “Fuels made from food or feed crops are treated like conventional fuels in terms of emissions. Only waste-based biofuels are fully compliant, and even then, their specific GHG values are above zero.” This difference matters. Standard biofuels, such as those from rapeseed or sunflower seeds, still benefit from ETS discounts but fall short under FuelEU. For full compliance, waste-based biofuels are needed, such as those from used cooking oil or animal fat. Further complications are added when considering the different rules behind the 50% discounts applied to voyages to and from the EU under the two regulations. OceanScore, which provides advanced solutions to facilitate efficient regulatory compliance, is assessing the impact of alternative fuels based on their relative carbon intensities, calorific values (LCVs), prices, and ETS cost incurred, reflecting these in its FuelEU Planner. The challenge goes beyond selecting fuels with low GHG intensity and factors such as the vessel’s ice class or whether voyages are intra-EU or international also influence compliance balance. If companies bunker more expensive alternative fuels like biofuels, there is no guarantee it will always pay off. “FuelEU allows for pooling of compliance surpluses and deficits,” Grell added. “Surpluses generated by using compliant biofuels can be sold in the compliance market to vessels in deficit.” OceanScore’s analysis indicates that the compliance market will be in surplus by 1 January 2025. “This surplus will put downward pressure on pooling prices, meaning it might be cheaper to buy a compliance surplus in the pool rather than generate it through compliant bunkering on your own vessels,” Grell said. “Both approaches would be compliant with FuelEU regulation and need to be considered at least from a commercial angle.” Given this, any sound compliance strategy must look beyond fuel selection alone and consider the broader market dynamics. “Our FuelEU Planner integrates these variables into a comprehensive scenario simulation,” continued Grell. “This is crucial because tackling FuelEU successfully requires charterers, managers, and owners to collaborate using a shared, fact-based approach.” Grell outlines several key steps for shipping companies to optimise their compliance strategies. First, they must gain a thorough commercial understanding of the economics of different fuels, considering their prices, LCVs, EU ETS costs, and the cost of pooling FuelEU compliance balances. At the same time, the technical and operational feasibility of using biofuels across different vessels should be assessed. While tests so far indicate that biofuels can be used without significant issues, lingering concerns over engine compatibility and tank systems remain. “Engine manufacturers need to give the green light, and bunker providers must be identified in key ports,” Grell noted. “For now, many companies focus biofuel usage on a smaller portion of their fleet to simplify operations and reduce risks.” However, one of the biggest hurdles remains contractual. “How do you protect the DOC holder, who is responsible for penalties, from the fuel decisions of the charterer? How do you fairly share the costs of biofuels and the value of surpluses? And how do you manage uncertainties tied to deployment patterns and fuel accountability under FuelEU?” Grell asked. Without clear contractual terms, companies risk major financial and operational pitfalls. “To align incentives across owners, managers, and operators, you need clauses in agreements like Shipman and Charter Parties,” he stated. “The ‘polluter pays’ principle is not embedded in FuelEU, so a robust data-driven understanding of the entire value chain is essential to avoid costly disputes.” OceanScore’s FuelEU Planner provides a clear path through the complexity. By simulating fuel use, compliance costs, and pooling options, the tool enables companies to budget effectively and negotiate data-driven contracts. “We make the complex FuelEU regulations easier to manage,” Grell concluded. “With our solutions, companies can understand the commercial impacts of their fuel choices, gain full transparency and confidently manage their compliance strategy.” You might also like Veolia, Enagás, and Barcelona City Council inaugurate first urban cold recovery network from LNG terminalRead article
September 12, 2024OceanScore calculates €175m potential costs for Greek shipping with FuelEU Maritime
Greek shipping companies are set to face a total bill of over €175m in penalties incurred under FuelEU Maritime after it takes effect next year but can also capitalise on the use of alternative fuels both to curb their financial exposure and generate compliance surpluses, according to OceanScore.Read article
September 11, 2024OceanScore Pulls Crowd with Launch of FuelEU Planner Amid SMM
OceanScore has launched a new planning, simulation and budgeting tool for optimising compliance with FuelEU Maritime from a commercial standpoint. Its FuelEU Planner is the first in a suite of solutions geared to supporting complex decision-making processes with the upcoming regulation.Read article
September 3, 2024OceanScore closes €5m funding round to speed up global expansion and product innovation
OceanScore, global provider of data and compliance management solutions for the maritime industry, has successfully closed an oversubscribed €5 million Series A financing round. The influx of new capital will enable the company to further develop its solutions portfolio and expand its global footprint.Read article
August 16, 2024Shipping Faces €1.345bn In FuelEU Penalties In 2025
The upcoming implementation of FuelEU Maritime has shipping companies on high alert due to potential penalties for non-compliance with greenhouse gas (GHG) intensity reduction targets, says the Hamburg-based provider of compliance and data solutions, OceanScore.Read article
August 1, 2024OceanScore inaugurates new office in Singapore
OceanScore has opened a new office in Singapore to serve its regional clients, responding to the growing demand in Asia for its digital solutions designed for efficient regulatory compliance with the EU ETS and FuelEU Maritime.Read article
July 15, 2024Shipping faces $1.46bn in penalties from next European carbon emission crackdown
Shipping could rack up €1.35bn ($1.46bn) in penalties in 2025 under the incoming FuelEU Maritime regulations, with a potential new market emerging for the sale and purchase of surplus energy volumes according to experts.Read article
July 9, 2024Container shipping will be hit hardest by upcoming FuelEU Maritime regulation
OceanScore has identified the segments set to be hit hardest. OceanScore forecasts that shipping as a whole will rack up total FuelEU penalties of €1.345bn in 2025 through analysis of the 13,000 vessels over 5,000 gt trading within and into the EU/EEA that are subject to the regulation.Read article
May 29, 2024FuelEU for thought: new regulation leaves DoC holder with fuel liabilities risk, says OceanScore
Implementation of the FuelEU Maritime regulation from 2025 presents an accountability dilemma for shipping as it is currently the Document of Compliance (DoC) holder that will be held responsible for fuel selection and could therefore face penalties – contrary to the ‘polluter pays’ principle, according to OceanScore.Read article
May 28, 2024Greek shipping getting to grips with EU ETS compliance issues amid mounting emissions costs, says OceanScore
Validation of voyage emissions data and contractual arrangements for allocation of EU ETS costs remain key challenges for Greek shipowners as they face an estimated total €335m bill this year, potentially rising to €1bn once the regulation is fully implemented, according to OceanScore.Read article
May 23, 2024The great divide: which shipowners are ready for carbon trading?
OceanScore is basing its estimates on the carbon price of €60 (US$65) per tonne of CO2. Singapore-based shipping companies would account for around one third of €1Bn (US$1.1Bn) in total emissions liabilities for Asia-based ocean shipping, according to OceanScore.Read article
April 24, 2024‘Big opportunity’ for bunker traders, suppliers on upcoming FuelEU regulation, forecasts OceanScore
‘Fossil Methanol is disastrous from a well-to-tank perspective due to its low energy efficiency but many biofuels present certain advantages,’ shares Albrecht Grell.Read article
April 11, 2024Shippers will have foot the final bill for greener shipping
Carriers will have to rely on cargo-owners’ willingness to pay a healthy surcharge for greener shipping, in order to recover the cost of ‘significantly more expensive’ green methanol fuel.Read article
April 10, 2024Singapore’s EU ETS liabilities of €330m can accelerate green shipping initiatives, says OceanScore
Singapore-registered vessels will be required to contribute a significant €330m share of Asian shipping’s total emissions liabilities under the EU ETS, underlining the importance of the Lion City as a key maritime hub for global trade and decarbonisation, according to OceanScore.Read article
April 9, 2024Issue of decarbonisation to dominate talks at SMW
But much of the industry remains preoccupied with the newly implemented European Union Emissions Trading Scheme, and would prefer a simple levy on bunker consumptionRead article
April 4, 2024Albrecht Grell: Würde ETS-Klauseln schnell klären, wenn ich Reeder wäre
Albrecht Grell, einer der Geschäftsführer von OceanScore, verrät im aktuellen HANSA Podcast, was Reedereien jetzt im Hinblick auf den EU-Emissionshandel unternehmen sollten und was das Hamburger Unternehmen mit seiner EU-ETS-Lösung als nächstes vorhat.Read article-
March 27, 2024
OceanScore identifies EU ETS best practice to tackle ‘strategy gaps’ on compliance
Many shipping companies are still striving to define their strategy for EU ETS compliance some 90 days after implementation of the complex regulation, according to OceanScore, as it leverages lessons learned from clients to date to define best practice.Read article 
March 15, 2024CEO of Hapag-Lloyd, one of world’s top ocean shippers, says the outlook has changed for the global economy
While the Red Sea issues have resulted in a shipping container rate spike, Hapag-Lloyd is forecasting a decrease in its earnings this year as costs increase related to the trade diversions from the Red Sea.Read article
March 13, 2024Cape diversions see box shipping EU ETS outlays leap by 191%
Persistent missile attacks by Houthi rebels on ships plying the Red Sea route have led to soaring emissions liabilities for shipping companies under the recently introduced emissions trading scheme for shipping created by the European Union (EU ETS) as lengthy voyage diversions for Europe-bound vessels have multiplied fuel consumption, according to Hamburg-based maritime technology firm OceanScore.Read article
March 12, 2024Rerouting pushing up ETS bill for containership operators
Container lines have increased sailing speeds to maintain schedules on the longer routing around the Cape of Good Hope. But the extra fuel burn will mean higher emissions costs for voyages to EuropeRead article
March 12, 2024OceanScore analysis shows near-tripling of EU ETS costs due to Red Sea crisis
Persistent missile attacks by Houthi on ships plying the Red Sea route have led to soaring emissions liabilities for shipping companies under the EU ETS as lengthy voyage diversions for Europe-bound vessels have multiplied fuel consumption, according to OceanScore.Read article
March 12, 2024GLOBAL: CAPE OF GOOD HOPE DIVERSIONS PUSH UP EU ETS COSTS
Vessel operators switching to Cape of Good Hope routes to avoid the volatile Red Sea region could see a near tripling of their EU Emissions Trading System (ETS) liabilities, says maritime data analysis company Oceanscore.Read article-
March 8, 2024
Red Sea crisis triples EU carbon credit costs for container ships
Liner operators pay more as vessels speed up on longer journeys The cost of liner companies’ European Union carbon credits will triple because of diversions around Africa, according to OceanScore.Read article -
March 1, 2024
EU ETS could be a new trading market for ‘a bit of a gamble’
Maritime stakeholders operating under the EU ETS could be tempted to stock up on EUAs when the auction price is low, and even trade them for profit – but it could be a risky strategy.Read article 
February 23, 2024Asian shipowners face hefty emissions liabilities of €1bn for EU-bound voyages, according to OceanScore
Asian ships sailing to Europe could incur huge costs once the EU ETS is fully implemented. Companies in China and Singapore will be particularly affected.Read article-
February 22, 2024
Asian shipowners face hefty emissions liabilities of €1bn for EU-bound voyages, according to OceanScore
Asian shipowners face hefty emissions liabilities of €1bn for EU-bound voyages, according to OceanScoreRead article -
November 27, 2023
Shipping companies must manage financial balancing act on EU ETS tightrope, says OceanScore
HMM slaps emissions scheme surcharge of up to $67 on boxes. South Korean owner joins other big lines in seeking to pass on ‘significant’ cost of European levyRead article 
November 24, 2023Challenges still lie ahead with EU ETS for shipping
Implementation of the EU Emissions Trading System (EU ETS) for shipping is still creating challenges for the industry with some parts of the legislation yet to be enacted and decisions to be made on who will be responsible for paying the charges still undecided.Read article-
November 24, 2023
Container lines to bear brunt of $7bn European emissions scheme cost
Container lines to bear brunt of $7bn European emissions scheme cost. More than one-quarter of emissions allowances will be paid by the liner sector, but how?Read article -
November 23, 2023
How to make ‘the polluter’ pay as more carriers unveil ETS estimates
With the entry of the EU’s Emissions Trading System (ETS) into law just over a month away, shipping interests are increasingly grappling with how to apply ‘the polluter pays’ principle.Read article -
October 5, 2023
Trading places: shipping must manage new financial risks with transition to EU ETS, says OceanScore
Everyone, it seems, is going to be confused about the EC’s forthcoming emissions trading system (ETS): judging by the initial “stick a finger in the air to see which way the wind is blowing” attempt by Maersk and Hapag-Lloyd to calculate possible surcharge levels (and the complete silence from their peers), shipping lines have the vaguest of vague notions.Read article -
August 31, 2023
OceanScore and RWE team up to mitigate shipping emissions risk with EU ETS management solution
Als neuer Anbieter für datenbasierte Dienste zur Emissionsüberwachung startet OceanScore in Hamburg. Mit dem Energiekonzern RWE ist ein starker Partner an Bord.Read article -
August 7, 2023
OceanScore’s ESG Solution and sustainability data platform score highly with new investors
Aponte and Schoeller back sustainability performance start-up An AI-driven performance monitoring platform has received significant backing from industry heavyweights. OceanScore will provide better visibility on ESG metrics as compliance tightensRead article
