Baltic Exchange expands FEUM amid compliance cost debates
The Baltic Exchange added a range of green fuel options to its FuelEU Maritime (FEUM) voyage and compliance cost calculator, aiming to assist shipowners, traders, and charterers in evaluating the commercial impact of the regulation.
As stated, biodiesel, bio-LNG, bio-LPG, green methanol, green hydrogen and green ammonia have all been added to the calculator, either as green fuel or blend options.
Baltic Exchange’s FuelEU Maritime calculator provides an overview of the cost implications for the selected option relative to the Baltic standard for that route. This will enable the market to factor any change in fuel selected or contemplated into their voyage cost estimates.
Green fuels are expected to be very expensive initially, so will likely be blended into fossil-derived fuels initially, to achieve compliance with the new FuelEU Maritime regulation. For this reason and based on industry feedback, we have added a blend capability to Baltic Exchange’s FuelEU compliance and fuel cost calculator.
…said Martin Crawford-Brunt, Emissions Lead , Baltic Exchange.
The industry has been going through a critical point as it faces ongoing debates over GHG pricing and FuelEU compliance cost. No final agreement was reached on a universal levy on ships’ GHG emissions, however, the idea of a universal levy on GHG emissions is supported by about 66% of MARPOL Annex VI signatories.
InterManager recently released a statement revealing that it has submitted a proposal to the next meeting of the IMO’s Marine Environment Protection Committee (MEPC83) to suggest important changes. Among other thing ship managers have expressed concerns stating that the proposed amendments to MARPOL Annex VI under the IMO net-zero framework suggest holding ship managers solely responsible for penalties related to GHG emissions.
In addition, DNV in a released whitepaper called “FuelEU Maritime – Requirements, compliance strategies, and commercial impacts”outlined strategies that can significantly reduce the cost. The report also highlights how, by leveraging digital tools, maritime stakeholders can access verified emissions data, which is a key factor in compliance and maintaining both operational and commercial integrity throughout the value chain.
Regulations like FuelEU Maritime and EU ETS will become increasingly impactful on voyage costs to and from the EU. All contracting parties, their brokers and traders need to be able to estimate these additional costs quickly to avoid facing high financial penalties.
…said Martin Crawford-Brunt.
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