Baltic Exchange launches FuelEU calculator to help shipowners understand new regulations

From 1 January 2025, T/T involving EU port calls will need to comply with the new FuelEU Maritime regulation. This regulation aims to accelerate the adoption of renewable and low-carbon fuels in the maritime industry to significantly reduce onboard greenhouse gas (GHG) emissions within Europe.

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Introduction to FuelEU Maritime Regulation

FuelEU Maritime is the latest regulation introduced to advance the shipping industry's decarbonization process. However, such emissions regulations are becoming increasingly complex and regional in nature. Due to the numerous Quantity of new regulations, tightening targets and the approaching Exp-Date date, the market demand for reliable data and insights is increasing day by day. Furthermore, these regulations may fail to adequately account for the nuances of different trade patterns or ship types, thus introducing uncertainty and increasing the challenges facing the shipping industry.

To help shipowners better understand the financial costs of compliance with the FuelEU Maritime regulation and its wider commercial implications, the Baltic Exchange has launched the FuelEU Calculator. The tool is based on Baltic Sea standard ship and standard route data, providing a clear benchmark to define good emissions performance.

Baltic Exchange FuelEU Calculator

The Baltic Exchange's emissions calculator has a new feature dedicated to FuelEU Maritime. The tool helps shipowners understand the potential cost impact of their vessels, while also enabling operators and charterers to assess whether they are being charged fairly. By entering a vessel's deadweight, type, speed and consumption against Baltic Sea standard vessel data, shipowners can quickly understand potential financial penalties for operating the vessel in T/T involving EU port calls.

Currently, the calculator only includes fossil-based alternative fuels, as these will be available first and are expected to be more competitive than green alternatives. In future updates, the tool will also include biofuel blends, such as diesel and LNG, which have known full life cycle emission factors.

Example: Cost of a 50,000 dwt MR tanker on the TC14 Houston-Amsterdam route

* Assuming a ballast and full load speed of 11 knots. All costs are estimates.

Example: Cost of a 180,000 dwt Capesize Bulk on the C2 Tubarão-Rotterdam round trip route

* Assuming a ballast and full load speed of 11 knots. All costs are estimates.

By using the Baltic Exchange's emissions calculator, markets can quickly understand the cost implications of choosing different fuels and better manage commercial and contractual risks.

"As a shipowner, you need to ensure that T/T costs are covered. This includes understanding the costs of complying with the new FuelEU Maritime regulations and avoiding incurring penalties." Said Martin Crawford-Brunt, head of emissions at the Baltic Exchange.