OceanScore: Data-driven decisions should define FuelEU compliance strategy
(Posted on 19/01/25)
Ship managers must navigate tricky commercial terrain to mitigate their financial exposure as DOC holder with responsibility for compliance under FuelEU Maritime. An effective compliance strategy requires an understanding of the various operational scenarios to formulate sound ship management agreements aligned with their interests, according to OceanScore.
“A one-size-fits-all approach is risky when it comes to finalizing contractual agreements. Running the numbers and performing your own analysis of different scenarios to cover all possible outcomes is vital for informed decision-making to avoid potential pitfalls,” says OceanScore’s Managing Director Albrecht Grell.
“The key is understanding the cost implications of each scenario to secure solid ship management clauses that are mirrored in charter parties.”
He says this is “a non-negotiable” given the ISM company is held accountable for compliance - and the penalties that come with it - under FuelEU where the ‘polluter pays’ principle does not presently apply, unlike the EU ETS where the shipowner is the responsible entity.
As DOC holder, the ISM company is responsible for monitoring and reporting of data under FuelEU, as well as management of compliance balances and payment of penalties due to deficits.
Consequently, watertight commercial agreements need to be in place to ensure accountability so the burden or benefit of compliance deficits or surpluses are properly allocated among stakeholders, based on verified data supplied by the ISM company to the shipowner and charterer.
These can ensure the DOC holder can secure coverage from the shipowner for any FuelEU-related liabilities, while compensation for surpluses or deficits, and vessel pooling rights are regulated between shipowner and charterer.
Grell cautions: “It is tempting to simply follow a charterer’s ‘proposal’, but we have seen drafts that appear rather one-sided. Trusting blindly such proposed agreements could leave you exposed.”
He advocates taking a broad and dynamic approach by evaluating available options, rather than opting for a blanket solution, to take account of deployment patterns, vessel types and chartering situations that can vary widely and therefore will dictate the optimal solution.
“It is important to defy conventional wisdom that bunkering biofuels is the best route to compliance as alternative pathways - such as running a deficit and pooling with another entity’s surplus - could yield significant cost savings,” Grell explains.
Latest News
Rio Tinto’s first Pilbara-made rail car built by Gemco in Karratha
(Posted on 09/12/25)Rio Tinto’s first Pilbara-made iron ore rail car has rolled off the production line in Karratha... Read more
Electric Liebherr portal crane strengthens Baria Serece, Vietnam
(Posted on 04/12/25)Precision meets progress at Phu My Port, Vietnam. The LPS 550 has been deployed to handle bulk commodities... Read more
bound4blue targets Asian growth with new production capabilities
(Posted on 02/12/25)bound4blue, a global leader in wind propulsion systems, has expanded its industrial footprint in Asia... Read more
DNV: Methanol as marine fuel at high readiness level
(Posted on 02/12/25)As the industry explores multiple decarbonisation pathways, methanol is gaining attention as a practical... Read more
Repeat Aasen bulk carrier order emphasises Wärtsilä hybrid strength
(Posted on 24/11/25)Technology group Wärtsilä will supply an integrated hybrid propulsion system for a bulk carrier... Read more
Superior bring big iron and bigger ideas
(Posted on 24/11/25)Superior Industries, Inc., a US-based manufacturer and global supplier of bulk material processing and... Read more
ESL connectivity upgrade enables smarter operations and supports crew wellbeing
(Posted on 15/11/25)ESL Shipping has taken a significant step forward in digitalisation by deploying a new multichannel... Read more
Junma partnership results in expansion and new orders for CMT
(Posted on 15/11/25)Condition Monitoring Technologies (CMT) has deepened its presence across Asia’s most influential... Read more
Contract signed for world’s largest battery-powered bulk carrier
(Posted on 10/11/25)After delivering its first full-scale seagoing project last week, Wattlab signed a contract at Europort... Read more
New Steelpaint contract with Germany’s inland waterways
(Posted on 10/11/25)Steelpaint GmbH has reported strong growth in orders for corrosion protection coatings on Germany&rsquo... Read more
