Fleet eligible for shipping 15% of annual global bulk commodity cargoes
Hudson Shipping Lines, Inc. (“Hudson”), a dry bulk Supply Chain Management company operating a fleet of 42 dry bulk vessels, today announced their fleet has achieved an average carbon dioxide efficiency rating of “C” using RightShip’s Existing Vessel Design Index (EVDIä) and Greenhouse Gas (GHG) Emissions Rating. This puts Hudson in the top one-third of the global fleet for energy efficiency and greatly improves Hudson’s competitiveness with charterers who consider energy efficiency as part of their vessel selection process.
Presently, ten RightShip charterers, who collectively ship over one billion tonnes of cargo (15% of world’s annual bulk movements), include the GHG Emissions Rating as part of their vessel selection process – this equates to around 15, 000 voyages each year.
Announcing the achievement, Hudson’s Global Operations Director, Chad Meade said:
“Vessels with higher environmental ratings standout from other vessels in the same deadweight class as the fuel savings really add up without any additional equipment or retrofitting. This makes them much more attractive to charterers who are seeking to cut bunker costs while demonstrating their sustainability credentials. This is a ‘win-win’ scenario where the environmental and commercial interests unite to everyone’s benefit.
Hudson is always looking for ways to increase sustainability and reduce the carbon footprint by decreasing the burning of fuel and emission of carbon for carrying cargo. The RightShip rankings are an effective, well thought out process that provides a solid baseline of a vessel’s emission rating used by charterers to make valuable decisions on which vessel will be the most economical to the environment and the voyage.
We regularly review the vessels we have on charter and proactively look to develop opportunities with owners who have an upgraded and efficient fleet of vessels to charter. This is an ongoing effort that involves educating owners to understand that efficiencies and the environment go hand-in-hand and are good for all our businesses, ” added Mr Meade.
Commenting on the energy efficiency of Hudson’s fleet, Warwick Norman, CEO, RightShip said:
“Hudson has recognised the importance of environmental credentials in today’s market by embracing the EVDI as an effective method of measuring the efficiency of the existing fleet. Not only are their vessels more likely to be selected by charterers who factor efficiency into their vetting process, but several of our banking customers consider the A – G Greenhouse Gas Emissions Rating scale as part of their loan underwriting process. In addition, financial institutions consider fuel efficiency as part of the discounted cash flow analysis in vessel valuation.
More than 50% of Hudson’s fleet has an GHG Emissions Rating of A, B or C and these vessels qualify for discounted harbor due rates through Port Metro Vancouver, ” he continued.
“There is a growing acceptance among industry that while the carbon dioxide emissions from shipping are low compared to other transportation modes, collectively they are significant. Reducing emissions will involve a co-ordinated approach across all sectors. Due to competing industry interests it is challenging to get consensus on the issue and this means market forces will always move faster than legislation.
It is also important to separate the debate about what can be measured and what can be legislated and an optimal industry outcome will only be achieved if it is unilateral. Many regional solutions such as taxes, Emission Control Areas and exemptions for developing countries have been canvassed but they only add complexity, compliance and cost to industry without achieving a meaningful reduction in CO₂ emissions. Hudson recognises that informed vessel selection is the simplest form of a market based solution and that it is already working to reduce emissions and save industry money, ” Mr Norman commented.
RightShip’s environmental ratings provide efficiency information on over 60, 000 vessels including tankers, bulk carriers and cargo vessels. Charterers can instantly see a vessel’s theoretical greenhouse gas emissions and relative energy efficiency as determined by RightShip’s EVDIä rated from A (most efficient) to G (least efficient), compared to vessels of similar size and type.
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About Hudson Shipping Lines: Hudson Shipping Lines, Inc. (Hudson)- part of the SeaTrade Transport International, Inc. (STI) group of companies (1977), is a multinational enterprise engaged in waterborne commerce. The group is a leading distributor of various commodities throughout the world, as well as operators and owners of real estate, terminals, warehouses, barges, dry-bulk ocean-going vessels and other logistical/infrastructure.
Hudson genesis is rooted in niche trades derived from their supply chain management activities able to add value and deliver at C.O.S.T.© for its customers. Through the use of unique methods and the development and evolution of effective load distribution techniques, (G.O.L.D.© Standard) Hudson is able to capitalize on their special designs and specifications resulting in increased efficiency.
From its inception, Hudson, in addition to its stringent risk management policies, has always recognized that a strong focus on customer relations fosters success. A business relationship with Hudson is about caring for its customers and their product(s).
For further information please visit www.hudsonshipping.com
About RightShip: RightShip is the world’s leading third party ship vetting agency, supporting 6000 users in over 210 organisations worldwide with expert vetting support and advice, vessel inspections and secure hosting of client systems. RightShip’s comprehensive online vetting system (SVIS™) is accessed 24/7 through www.rightship.com and analyses over 50 risk factors, using up-to-the-minute data about 71, 000 ships and thousands of maritime companies. SVIS™ delivers instant, reliable assessments of nominated vessels using customised criteria, and tracks vessel and fleet performance.
RightShip used its 11 years of experience in the development of online risk rating algorithms in the maritime sector to develop the Existing Vessel Design Index (EVDI™) and Greenhouse Gas Emissions Rating. The environmental ratings enable customers to include the growing importance of carbon emissions in their vessel selection process.
For further information please visit www.rightship.com