Danish Shipowners Association

Green transport
of global trade
The Danish shipping industrys
initiatives and positions on climate
and environmental issues

The association
The Danish Shipowners Association was established in 1884
and represents the Danish shipping industry.
The Association is a trade organisation, which represents
Danish shipowners when dealing with governments and
maritime authorities, nationally and internationally. In addition,
the Danish Shipowners Association is an employer organisation, which negotiates agreements with the seamens unions
and handles all matters concerning employment, safety and
training within the shipping and offshore industry.
Administration of the Danish organisations for short sea
shipping and ferry services has been incorporated into the
Association.
The Danish Shipowners Association is permanently
represented in Brussels with its own office.
The Danish Shipowners Association is member of a
number of international shipping organisations:
ECSA, European Community Shipowners Associations
ICS/ISF, International Chamber of Shipping
The Board
Carsten Mortensen, D/S NORDEN (Chairman)
Claus V. Hemmingsen, A.P. Mller-Mrsk
Torben Janholt, J. Lauritzen
Jacob Meldgaard, Torm
Niels Smedegaard, DFDS
Tommy Thomsen, Nordic Tankers
The Executive staff
Peter Bjerregaard (Management)
Jan Fritz Hansen (Trade, shipping and nautical policy)
Pia E. Voss (Industrial relations and social affairs)

Headquarters in Copenhagen
The Danish Shipowners Association
Amaliegade 33
DK-1256
Copenhagen
Tel: +45 33 11 40 88
info@shipowners.dk
www.danishshipping.com
Brussels office
The Danish Shipowners Associations Brussels office:
Avenue des Gaulois 34, 1040 Brussels
Belgium
Tel: +32 (0)2 230 81 41
brx@shipowners.dk
Simon C. Bergulf (Head of office)

Danish Shipowners Association

Green transport of global trade

Published by the Danish Shipowners Association
This publication closed for contributions on 1 July 2012
Editor: Peter Olsen, Arne Mikkelsen and Sofie Rud
Design: Designbolaget
Print: Clausen Grafisk ApS

Introduction

Carsten
Mortensen
Chairman of
the board

Peter
Bjerregaard
Director General

Danish shipowners own or operate more than 2,000 ships, which ply
the oceans of the globe every day, all year round. This makes Denmark
one of the five largest seafaring nations in the world. The ships carry
raw materials, manufactured goods and passengers; crossing the seas
and sailing between continents and national borders. Transport back
and forth across the globe is a prerequisite for development, growth
and prosperity in a globalised world and Danish shipping plays a vital
and active role. Shipping transports 90% of all global trade. At the
same time, transport by sea is generally the cheapest and most environmentally correct mode of transport.
The Danish fleet is young, modern and equipped with the latest
technology. Carbon and sulphur emissions are two areas in which Danish shipping is willing to take the lead and adopt an innovative approach
in order to protect the planet as far as possible from unnecessary and
damaging environmental impacts. Although this costs the industry billions, initiatives do not stop here. This has already generated positive
results. For example fuel consumption by the Danish fleet is now significantly lower in relation to its size.
With regard to sulphur emissions, Danish shipping companies are
working, investing and innovating in a race against the clock to satisfy
the international requirement of only emitting 0.1% sulphur by 2015.
The ambition to secure minimal sulphur emissions is positive. However
the fact that the necessary technical solutions have not yet been developed is a challenge.
The world continues to face an enormous environmental challenge,
which requires that everyone makes an effort to care for the air, water
and raw materials. Levels of ambition need a serious boost where possible with regard to research, development, innovation and reduction targets. In order to achieve the necessary high climate and environmental
targets, challenges need to be addressed as a collaboration between all
parties in the maritime community, the shipping companies customers,
equipment manufacturers, researchers and policy makers.
However, if shipping companies are to be able to contribute with
ambitious solutions, policy makers need to consider the financial consequences of new environmental legislation and correlate these with
the environmental challenges they want to address. The Ballast Water
Management Convention is an example of how ambitious environmental
targets can be very costly for shipping companies, without necessarily
having significant environmental benefits.
This climate and environment publication from the Danish Shipowners
Association provides an overview of the most relevant environmental
challenges, initiatives and results that the Danish shipping industry is
working on.

green tr ansport of global tr ade 3

Global regulations are

best for our planet
Pollution rarely recognises national borders. This is why
strict environmental regulations that apply to every ship in
the world represent the best way to legislate for the environment and climate. The Danish shipping industry makes
a targeted effort via the Danish Shipowners Association to
promote shipping legislation adopted by the International
Maritime Organization (IMO).
IMO has laid down the most important environmental regulations for ships. These extremely comprehensive rules
regulate, among other things, oil, chemicals, sewage, waste,
air pollution, climate, anti-fouling and recycling of ships.
Some of these areas have been regulated for many years.
All oil tankers not protected by a double hull have been
600
decommissioned,
and the toxic TBT anti-fouling paint has
been banned. Other regulations have recently been tightened,
including regulations on air pollution, among other
500
things to limit the sulphur content in marine fuel. Still other
regulations are simply waiting for ratification of the agree400
ment by the member states. This applies, for example, to a
ban on discharging untreated ballast water, as well as to
300
regulations
stipulating that ships may only be recycled in
areas where it can be done in a responsible manner. International
climate regulations are also on the drawing board.
200
The first part, known as the Energy Efficiency Design Index,
was adopted in 2011, while a market-based regulation of
100
CO2 emissions is still under consideration. Regulations are
being tightened all the time a trend that will undoubtedly
continue.
0
2009

2011

2013

2015

2017

2019

2021

2023

2025

Fig.1 below shows the percentage of reduction, and when

the IMO regulations already in place will reduce shipping
emissions. The trend is moving in only one direction
downwards.

The shipping industry is also governed by regional environmental regulations, including EU regulations, as well as a
patchwork of national environmental regulations that can
vary greatly from port to port. For example, the US and Norway both have their own local regulations for ballast water,
and in the EU the low sulphur limit of 0.1% is already applicable to ships in port.

THE International
Maritime Organization
As a specialised agency under the United
Nations, IMO has
been setting international
250
standards and binding safety and environmental
regulations for shipping for more than 50 years.
From its headquarters
in London, the organisa200
tion works through committees and subcommittees that meet on a regular basis.
150

A total of 170 countries are members, and the

organisation has the power to make majority
decisions. If a 100
ship does not comply with the
international regulations, it can be difficult for it
to sail to other countries because the port state
50
control authorities
throughout the world have the
right to detain ships that do not comply with IMO
regulations. Within just the regional port state
0
control collaboration
comprising the EU, Russia
2009
2015
2027
2029
and Canada, 24,000
ships2011
were2013
inspected
in2017
2010. Of these, 790 were detained until the
deficiencies had been corrected and six were
sent away and told never to return.

fig.1 Emissions reductions in the shipping industry

as a result of already adopted international regulations

CO Global
Nitrogen Oxides

100%

80%

Nitrogen Oxides Global

sulphur Global
sulphur

60%

40%

20%

0%
2008

emssion control are a

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

emssion control are a

2019

2021

2023

2025

The Danish Shipowners Association environmental policy

The Danish Shipowners Association has an environmental policy which member shipping companies
are obligated to comply with and which articulates their interests with regard to environmental regulation.

Objective
To protect the external environment by reducing the environmental
impact of shipping related activities
and making consideration for the
environment a high priority. It is only
natural that an industry with such an
important global position should take
responsibility for the world in which it
operates.
The Danish Shipowners Association
will work to achieve solutions that
promote growth and equal competitiveness, with due consideration to
the global environment and the world
as a whole.

Values
We are forward-looking & innovative
We should be on the cutting edge
of developments and propose solutions that work both for shipping
and the environment.

We have a holistic view on

environmental regulation
Reduction of one type of pollution
can increase other types of emissions. Both environmental problems
and environmental regulations should
therefore be approached holistically
and efforts should be made in the
areas that achieve the greatest possible overall environmental benefit
per DKK invested.
We have an international perspective
Most environmental issues are global,
and everybody deserves a high level
of environmental protection. Environmental regulation should, as a general rule, be international and should,
for the shipping industry, be implemented under the auspices of IMO.
However, the Danish shipping industry is also aware of regional and national regulations which we will work
to harmonise with international law.

We have focus on quality

Environmental regulation ought to be
based on a solid and qualified technical foundation. We will make an effort
to bring professionalism and objectivity into environmental regulation.
We assume responsibility
Our objectives in the area of the
environment should develop over
time and gradually increase in ambition. Environmental regulation should
be targeted and reflect the technical
solutions that are available. It should
also contain realistic transitional
periods and be updated and tightened on a regular basis. It should be
possible to choose between equivalent solutions that provide the same
environmental protection.
We act environmentally correct
Shipping is in general the most
energy efficient form of transport.
Environmental regulation should
therefore promote transport by sea.

1. Climate
Challenge
CO2 emissions from fossil fuels cause climate change, regardless of where in the world the emissions occur. Shipping is a global industry in free competition in an international market. If the rules in one country are tougher than in
others, changing a ships registration is a relatively simple
procedure. If climate regulation of the shipping industry is
to have any impact, it is crucial that the regulations apply
globally.
Shipping is the most climate friendly mode of transport.
Even though it is not always possible to replace one mode
of transport with another, Fig.5 on page 8 illustrates that
compared to aircraft and lorries, it is possible to go much
further by ship on a litre of fuel. As a global industry, shipping agrees that like other modes of transport and other
industries, it has an obligation to help assist meeting the
target of limiting the global temperature increase to 2C
as agreed at the Climate Summit in Copenhagen in 2009.
However, it is only reasonable that the shipping industrys
contribution should be based on the fact that its emissions
represent 2.7% of total anthropogenic emissions of greenhouse gases, corresponding to 10% of emissions by the
entire transport sector.

The shipping industrys CO2 emissions depend on both the

fuel efficiency of the ships and on global transport needs.
From a climate perspective, the number of tonnes of CO2
the absolute emissions are the most relevant. But
because it is impossible to predict developments in global
transport needs and because shipping companies have no
influence on cargo volumes, the industrys focus is on making ships more fuel efficient.
The Danish Shipowners Association follows an active, responsible and transparent climate policy. Its members
ships are among the most modern and energy efficient in
the world. As perhaps the only shipowners association in
the world, the Danish Shipowners Association publishes
data every year on the total oil consumption and the size
of the fleet its members operate. The ratio between the
two figures gives an indication of the efficiency of the fleet.

fig.3 The shipping industrys

share of global trade

Status
Since 1990, the Kyoto Protocol under the UN Climate Convention, UNFCCC, has set CO2 reduction targets for a number of developed countries, but not for developing countries. The agreement expires in 2012, and the prospects of
reaching a consensus on global climate regulations, which
the US and the developing countries can also accept, are
extremely small. However, a provision in the Kyoto Protocol
acknowledge that a solution for the shipping industry should
be found under the auspices of IMO.

fig.2 The shipping industrys share

of global CO2 emissions

Open & transparent

climate policy

Other modes of
tr ansport: 10%

International
shipping: 90%

Source:
Danish Shipowners Association

fig.4 The shipping industrys share of the

transport sectors global CO2 emissions

International

International

shipping: 2.7%

shipping: 10%

Other modes of

Other modes of

tr ansport: 24.3%

tr ansport: 90%

other sources: 73%

Sources: Second IMO

Greenhouse Gas Study 2009

DFDS achieves huge savings

on oil with new propeller blades
The DFDS management were rather doubtful
when their engineers claimed that they could
save up to 13% in oil consumption and thereby
lower carbon emissions on PEARL SEAWAYS with
the new propeller blades which have now been
installed on the ships two propellers along with
a bulb on the rudder. But the engineers turned
out to be right.
The very first measurement, which we conducted last year, revealed oil savings of as much
as 12.5% compared to the same period in the
previous year. And, of course, we will work hard
to achieve the full 13% reduction in oil consumption, explains Ship Superintendent Steen
Haurum from DFDS. DFDS has since replaced
the propeller blades on two more ships. Trends
in fuel prices are forcing us constantly to think in
new ways. Replacing propeller blades is a huge
project, but looking at the results, we know that
were doing the right thing for both fuel economy
and carbon emissions, adds Steen Haurum.

fig.7 shows that the fleet has already become nearly 25%
more efficient. Due to the financial crisis, many charter contracts have not been renewed. There have also been savings in oil, where possible with technical and operational
initiatives, and most importantly ships have reduced their
speed to compensate for the falling cargo volumes and
resulting overcapacity.
The markets started to pick up again in 2010, but the shipping companies have learnt their lesson and continue to
save oil. Thus further efficiency improvements have been
achieved, and the figures for 2011 demonstrate that this is
more than just a passing trend. A ships fuel consumption
is no longer inextricably tied to growth in cargo volumes.
However, the trend indicated by the blue curve also suggests that the lowest hanging fruits have now been picked
and that we cannot expect such marked improvements in
future. The Danish shipping industrys target of a 25% reduction in carbon emissions by 2020 is close to being met.
In other words, there is room for even more improvement.
The Danish Shipowners Association recommends that the
relevant political institutions aim even higher globally.
FIG.8 demonstrates how widespread specific fuel-saving
initiatives are among Danish Shipowners Association members. The data comes from a survey of a representative
cross-section of members.

IMO & CO2

Work is well underway to develop climate regulations within IMO that consist of mandatory technical, operational and market-based climate rules.
In 2011 the first part became a reality, when a
majority of the IMO Marine Environmental Protection Committee adopted a climate package.
The most important requirement in the package
is the Energy Efficiency Design Index, which
requires that new ships demonstrate a specified
minimum efficiency. In practice this means that
they must be built to sail further on 1 litre of fuel.
From 2013, it will no longer be permitted to build
a new ship that is less efficient than the average
of similar ships built today. In 2015, and every
five years thereafter, this requirement will be
tightened by an additional 10%, such that ships
built in 2025 will be required to sail 30% further
per litre than the average of similar ships built
today. Before the end of the final period, new targets must be set based on an assessment of the
scope for further efficiency improvements at that
time. The gradually tightening requirements are
illustrated in FIG.6. IMOs climate package also
contains an operational requirement that all ships
must draw up and maintain a plan for fuel savings on board. The expectation is that the climate
package will make the entire global merchant
fleet 20% more fuel efficient by 2020 and 50%
more efficient by 2050.

fig.5 The distance in kilometres, 1 tonne of goods can travel

by different modes of transport while emitting 1kg of CO2

Source:
Second IMO
Greenhouse
Gas Study
2009

AIR FREIGHTER
LORRY
RO-RO CARGO SHIP
FREIGHT TR AIN
CONTAINER SHIP
GENER AL CARGO SHIP
CHEMICAL TANKER
PRODUCT TANKER
BULK CARRIER
CRUDE OIL TANKER
0 km

25 km

50 km

75 km

100 km

125 km

150 km

175 km

200 km

225 km

250 km

2009

2011

2013

2015

2017

2019

2021

2023

2025

2027

2029

2009

2011

2013

2015

fig.6 Fuel efficiency as a result

of ENERGY EFFICIENCY DEIGN INDEX, EEDI

fig.7 CO2 emmisions from

the danish merchant fleet

100%

60

2017

2019

2021

2023

Fleet size

(mill. dwt)

CO

50
80%

emmisions

(mill. tonnes)

relative

reduction

40
60%

30

40%
20

20%
10

CO

0%
2008

2010

2012

2014

2016

2018

2020

2022

2024

Global
0
2026

2028

2030

2008

2009

2010

2011

Danish shipowners apply the IMO Ship Energy Efficiency Management Plan
IMOs list of best practices. The next step is to set
a target for the level of savings to be achieved
and then to realise the initiatives. It is vital that the
efficiency of the ship is measured constantly so
that, after a specified period of time, the shipping
company can assess whether the targets have been
achieved. Then a new cycle begins, the bar can be
raised and further initiatives can be identified. In
NORDENs experience, the system embeds environmental initiatives in the company. See fig.8.

In a survey, more than half of the participating

shipping companies stated that they are in the process of implementing IMOs Ship Energy Efficiency
Management Plan. NORDEN is one of these companies. The plan establishes a systematic framework
for continuous efficiency improvements on ships
currently in operation by, e.g. constantly optimising
ship speed to reduce fuel consumption as much
as possible. First, the shipping company identifies
possible improvements on each ship based on

fig.8 Fuel saving initiatives among members of the Danish Shipowners Association

OPTIMISATION OF MACHINERY
OPTIMISATION OF HULL, RUDDER AND PROPELLER DESIGN
OPTIMISATION OF SPEED ACCORDING TO WE ATHER, DEPTH, SCHEDULE ETC.
SLOW-STE AMING IN GENER AL
OTHER INITIATIVES
OPTIMISATION OF ANTI-FOULING PAINT
MORE FREQUENT CLE ANING OF HULL, RUDDER AND PROPELLERS
L ARGER UNITS WHEN BUILDING NEW SHIPS
OPTIMISATION OF TRIM
UTILISATION OF WASTE HE AT FROM ENGINE
100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

2025

0%

green tr ansport of global tr ade 9

202

Initiatives
With the adoption of its first package of mandatory technical and operational rules, IMO has demonstrated strong
commitment and ability to deliver effective global climate
regulation and a market-based measure is in the pipeline.
However, agreement on a market-based measure is politically far more more difficult to reach. Both the Danish
Shipowners Association and the International Chamber of
Shipping are open to global market-based solutions. There
are already several models in play.
The Danish governments proposed contribution fund is
clearly preferable to a model based on emission trading.
A contribution fund would reward more efficient ships,
provide greater transparency, increase price stability and
reduce bureaucracy compared to a model based on emission trading. The contribution fund proposal also provides

Contribution or trading
Under the auspices of IMO, the Danish government is working to promote an international
contribution fund as an incentive to limit carbon
emissions as much as possible. With this system,
every time a ship buys fuel it would be required
to pay a specified contribution per tonne to an
international fund. The fund would be independent of government treasuries and the contribution paid would subsequently be used to finance
climate projects and combat the consequences
of climate change in developing countries.
Other countries support an emission trading
system in which ships would instead be required
to purchase allowances in order to emit CO2.
These allowances can be bought and sold on an
international exchange and can, for instance, be
issued to finance climate project in a developing
countries.

a unique opportunity to reconcile the IMO principle of equal

treatment of all ships with the UNFCCC principle that the
developed countries should finance climate issues.
The European Commission acknowledges that a global
solution would be best suited for the shipping industry.
However, in light of the lack of a global agreement on a
market-based regulation, the Commission is expected to
ignore warnings from the industry and propose a regional
emission trading scheme in 2012. This is a serious concern
because a regional scheme would distort competition and
be ineffective in relation to the climate, considering the fact
that most seaborne transport takes place outside Europe.
Moreover, a regional measure will not help pushing the negotiations further forwards in the IMO. On the contrary it risks
adding on to the disagreements between developed and
developing countries. Should an EU climate regulation for
shipping come into force it would be of utmost importance
that other regions in the world take part as well.

Case study No1

Maersk Line invests DKK 20 billion

in new environmentally optimised ships
Although it started out as a costcutting tool when the global financial
crisis hit in 2008, slow-steaming has
become a vital pillar in Maersk Lines
strategy. In fact it is so vital to the
companys operations that Maersk
Line has now ordered 20 Triple-E
ships designed for very slow and
energy efficient transport at a total
price of approximately DKK 20 billion.
This order for 20 Triple-E ships
emphasises the importance of slowsteaming as part of Maersk Lines
strategy. Slow steaming is perfectly
in line with the ambition to reduce
both cost and environmental impact,
and it is helping meeting customer
demands for more environmentally
friendly transport, says Bo CerupSimonsen, Vice President, Head of
Maersk Maritime Technology, and
Chairman of the Danish Shipowners
Associations Technology Committee.
The engine power of the Triple-E
ships is about 20% less than on
Maersk Lines largest ship to date,
Emma Maersk, despite the fact that
they can carry 16% more containers. Their wider and more box-shaped
hull makes it possible to load more
containers, and the smaller engine
and hull shape are a direct result of
the fact that slow steaming has now
become the norm. In the past, ships
were built with a more slender hull
and a larger engine to sail at higher
speeds.
Huge CO2 savings from
slow-steaming
Shipping companies stand to gain
significant fuel and CO2 savings by
reducing speed. According to Maersk
Lines calculations, carbon emissions
per transported container will be
reduced on the new Triple-E ships
by more than 50% compared to the
industry average, and a large share of
those savings are attributable to the

slower speed. There are huge CO2

savings for shipping companies from
sailing at slower speeds, which makes
it good business. In the long term, we
will achieve greater financial savings,
thanks to the good fuel economy
of our ships, so the environmental
investment in the Triple-E ships will
ultimately pay for itself. According
to our calculations, the ships will be
26% cheaper per container than
other new container ships, says Bo
Cerup-Simonsen.
Customers want green transport
At the same time, Maersk Line can
also see that customers are increasingly requesting green transport and
that it has developed into an important competitive parameter.

Bo CerupSimonsen
Vice President,
Head of Maersk
Maritime Technology, and
Chairman of the
Danish Shipowners Associations Technology
Committee.

We experience a clear trend in

customers requesting more environmentally friendly transport, and its
no longer an unusual requirement in
connection with tenders. That is why
we have also chosen to issue monthly
CO2 scorecards to our 198 largest
customers, to keep them updated on
their carbon emissions with Maersk
Line and to benchmark our carbon
emissions against the average for
the industry, explains Jacob Sterling,
Head of Climate and Environment,
Maersk Line. International giants
like IKEA, Wal-Mart and Tesco were
among the first to require green
transport, but at Maersk Line, Jacob
Sterling is seeing ever more customers follow suit by increasing their
focus on the climate and environmental impact of transport.

Maersk Lines new Triple-E ships

have been designed for slow-steaming,
contributing to CO2 savings of 50%
compared to average emissions.

green tr ansport of global tr ade 11

2. Sulphur
Challenge
Crude oil has a natural sulphur content. When the oil is
burned, sulphur reacts with the oxygen in air to form SOx,
which is harmful to humans. Distilled oil products contain
less sulphur than the heavy by-product from petroleum
distillation which most of the shipping industry uses today. The international regulations on sulphur content in
marine fuel have therefore been tightened globally. Once
the regulations have been completely phased in, the sulphur emissions of the shipping industry will be reduced by
more than 90%. For shipping, this environmental improvement represents a significant cost. Distilled oil products are
generally more expensive than the traditional marine fuel.
7
This is especially a major challenge for the European short
sea shipping industry that competes directly with other
6
modes of transport and operates in areas with particularly
low threshold values. Because there are no real alternative
5
fuels for shipping, the consequence could be that cargo,
which would otherwise be transported by sea, will shift to
4
the already congested roads.
3

Status

2013

In 2008, IMO decided to tighten limits for ship sulphur

emissions significantly. The rules imply that, from 2015,
1
shipping within well defined geographic areas known as
Emission Control Areas (ECAs) will have to use either an
0
fuel 2021
to traditional
heavy2027
fuel 2029
or install a scrub2015alternative
2017
2019
2023
2025
ber that can clean the exhaust. In Europe, the tightened
rules apply in the Baltic Sea, the North Sea, and the English
Channel.

The change to low sulphur fuel is expected to increase fuel

cost significantly. Some prognoses indicate almost a doubling of fuel cost, which represent about half of the cost
of operating a ship. For the global shipping industry, which
only occasionally sails in the Emission Control Areas, the
added cost can to some extent be passed on the customers. However, this is more difficult for short sea shipping
which always operate within the Emission Control Areas
and which fiercely compete with other modes of transport.
The new sulphur requirements could mean a setback for
the EUs many years of targeted efforts to boost the transport of cargo by sea and get it off the congested roads.
Today, alternatives to the expensive low sulphur oil are rather limited. Liquefied natural gas is an option, but the lack
of infrastructure is an issue. Even though a ship can use
natural gas, it is practically impossible to refuel in ports. The
challenges are similar to those with electric cars. The technological solution exists, but the distribution network does
not. At the same time, a major overhaul would also be required to convert a conventional ship to use natural gas as
a fuel. Consequently, natural gas is only a realistic option for
newbuildings and, especially, for ships with regular routes,
to which it is possible to guarantee access to refuel with
natural gas in port. The installation of a scrubber requires
significant investment and this solution is not equally suited to all ships. For existing ships, more research is needed
to
the
is
feasible.
2009 determine
2011
2013whether
2015
2017 solution
2019
2021
2023 Furthermore,
2025
2027
2029
the relevant authorities need to be prepared to approve the
solutions the industry comes up with.

fig.9 Reductions of sulphur content in marine fuel, as adopted by IMO in 2008

Sulphur content in the fuel consumed by the global shipping industry will be gradually reduced from 4.5% to 0.5%
globally and from 1.5% to 0.1% in the Emission Control Areas covering North America and North Europe.

sulphur Global
sulphur

5%
4.5%

4%
3.5%
3%
2.5%
2%
1.5%
1%
0.5%
0%
2008

12

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

emssion control are a

Emission Control Areas

In the emission control areas shown on the map, the
very low sulphur threshold limits will apply from 2015.
These areas are designated by IMO upon application by
the surrounding countries, which must document that
the scope of air pollution and considerations for public
health and nature make such designation relevant.

Initiatives
Danish shipping companies fully recognise the need to reduce sulphur emissions and support IMOs decision. However, the extremely restrictive regulations within the Emission Control Areas will be particularly hard on the short
sea shipping industry. The fundamental question is whether
a roughly similar environmental improvement could be
achieved with a less ambitious target for sulphur threshold
limits in Emission Control Areas that also considers the
competitiveness of short sea shipping. This issue has been
raised at European level, during the revision of the EU directive on the sulphur content of marine fuels. None of the
European governments have shown a willingness to work
towards rewriting or postponing IMOs decision. In fact the
EU tightened the requirements. Hence the IMO standard
of 0.5% sulphur limits will be mandatory outside emission
control areas in 2020, thereby disregarding the option of
postponement, should the IMO 2018 fuel availability study
recommmend such a postponement. Danish Shipowners
Association is working to find alternative solutions within the framework of the extremely restrictive regulations.
Among these solutions are natural gas and scrubbers, as
well as a proposal to increase of the availability of compliant fuel. If the allowable flash point of marine distillate
fuel were harmonized with corresponding safety rules for
auto diesel, the shipping industry would get access to a
huge and additional pool of compliant fuel. Finally, work is
underway to tailor the EU schemes earmarked to promote
seaborne transport, to investments in new technology and
to safeguarding the competitiveness of short sea shipping.

Partnership for Green shipping

The Danish Shipowners Association has established a partnership with the Danish Environmental Protection Agency and the Danish
Maritime Authority to ensure appropriate Danish
implementation of the international regulations
on air pollution and to prepare the shipping companies for compliance. Air pollution comprises
SOx and NOx as well as particulate matter. The
partnership has mapped both emissions and the
reduction potential in Denmark, and initiated a
number of projects to develop various types of
scrubbing technologies. Furthermore, the prospects for using natural gas as a ship fuel have
been explored. Future focus will also be on better
enforcement.
The activities of the partnership are being
followed amongst others by: Eco Council, DTU
Environment, Danish Ports, DTU Chemical Engineering, the Danish Centre for Environment
and Energy, Alfa Laval Aalborg, MAN Diesel &
Turbo, Catcon, the Danish Technological Institute,
ABS Europe Ltd. and the Danish Oil Industry
Association.

Case study No2

New technology reduces sulphur

emissions by more than 90%
The installation of a scrubber on the
DFDS ferry FICARIA SEAWAYS has
reduced sulphur emissions by more
than 90%, while 70% of particulate matter has been removed. The
technology was developed by Alfa
Laval, Aalborg in collaboration with
MAN Diesel and tested by DFDS.
The scrubber can be compared to a
shower which sends down a stream
of water that washes the ships
exhaust gas on its way through the
smokestack.
Since 2007 we have had strong
focus on reducing our environmental
and climate impact, and the scrubber
has been an important piece of the
puzzle. It has been a demanding
process, both financially and in terms
of time, but the results are impressive,
and we are very proud that we have
managed to reduce the environmental impact of FICARIA SEAWAYS
so significantly, says Gert Jakobsen,
Vice President Communications
at DFDS.

The project is part of the Partnership for Green Shipping between

the Danish Environmental Protection
Agency and the Danish Shipowners
Association. With this technology,
FICARIA SEAWAYS now complies with
the stricter requirements for sulphur
emissions, which are expected to
enter into force in 2015. The technology does not, however, solve
all the problems associated with
meeting the new sulphur regulations,
emphasises DFDS. According to a
survey by Interferry, it can only be
used on 40% of the ships sailing the
Baltic Sea and the North Sea, and
because the scrubber costs around
DKK 3040 million to install, it is
also a costly solution for shipping
companies.

Gert
Jakobsen
Vice President
Communications,
DFDS

A scrubber has reduced sulphur emissions

by more than 90% on the DFDS ferry
FICARIA SEAWAYS. But DFDS stresses
the scrubber is no miracle cure.

Case study No3

Natural gas is an important

weapon combating sulphur
When Fjord Lines two new passenger ships will be upgraded to natural
gas in 20142015, sulphur and
particulate emissions from the ships
will disappear entirely, while NOx
emissions will be reduced by 90%
and carbon emissions by 25%. The
technology has already been used on
several Norwegian commuter ferries,
so it was a logical step for Fjord Line
to consider natural gas, when they
needed new ships for the route.
Of course, we explored other possibilities, such as scrubbers and
catalytic converters, but we quickly
realised that they werent the right
solutions for us, says Morten Larsen,
Technical Director at Fjord Line.
The project has received around DKK
80 million from the Norwegian NOx
fund, and the EU has also shown an
interest in supporting the project
financially. The perspectives of using
natural gas as a fuel are huge, but
the infrastructure for natural gas is

just as important as the design of

the actual ship. Because if we dont
have access to natural gas in port
areas, then it doesnt help anything,
says Morten Larsen.
He therefore hopes that focus on
infrastructure will grow in coming
years so more ferries can use natural
gas. With the current fuel prices, the
cost for standard fuel oil and natural
gas are about the same, but when
the stricter requirements for ship sulphur emissions take effect in 2015,
Morten Larsen expects that natural
gas will be significantly less expensive than oil.

An ambitious green strategy and the strict

Norwegian NOx regulations have forced
Fjord Line to think creatively. The shipping companys new ferries are being built
to sail on natural gas.

green tr ansport of global tr ade 15

Green Ship of the Future

The Danish Shipowners Association is a
network partner in the Danish maritime
industrys Green Ship of the Future
initiative. Green Ship of the Future is a
unique cooperation in which companies
across the Danish maritime industry
have joined forces to develop strategies and carry out specific projects to
reduce CO2, SOx, NOx and particulate
emissions.
The initiative brings together many elements: research, development, demonstration, innovation, education, training
and dissemination of knowledge. The
initiative was founded well before the
2009 Climate Summit in Copenhagen
by leading Danish maritime companies
in recognition of the environmental
responsibility nested in the maritime
industry.

3. Nitrogen oxides
Challenge
Air contains both oxygen and nitrogen that react at the high
temperatures of a combustion engine to form NOx, which
is harmful to humans. The environmental benefit of possible supplementary national regulation would be limited
because most of the shipping industrys NOx emissions in
Denmark come from passing ships in transit.

hand, has fixed a tax on ships in Norwegian domestic trade.

A similar Danish regulation, that only applies to ships in
Danish domestic trade, would provide very limited environmental benefit because the vast majority of the shipping
industrys NOx emissions in Denmark come from passing
ships in international trade.

Status

Initiatives

NOx emissions from ship motors have been regulated by

IMO since 2000 with requirements that reflect what was
possible to achieve with a good engine at that time. In
2008, the regulations were tightened, requiring that engines installed after 2011 must be 20% better and introducing a particularly low threshold limit in the Emission
Control Areas so that engines installed after 2016 will have
to be 80% better.

As part of the partnership with the Danish Environmental

Protection Agency, the Danish Shipowners Association has
made great strides to reduce NOx pollution. One project has
developed a special NOx-reducing fuel nozzle that can be
fitted to existing pre-2000 engines, and the IMO regulations make this upgrade compulsory. A number of projects
are developing selective catalytic reduction systems which
can even be combined with particulate filters. Another project has made it possible to add large amounts of water
to the fuel. The water cools the process and reduces the
formation of NOx in the combustion chamber. Several of
these research projects are being funded by the Danish
Maritime Fund.

Some existing engines, installed after 1990, are even required to be brought up to the 2000 level if the engine
manufacturer can supply an upgrade. Today, a NOx Emission Control Area has been designated around North America and there are strong expectations that another area will
be designated in northern Europe by 2016. The subject
is thus regulated by IMO, and it is, of course, controversial
to introduce additional national regulations for international
shipping that meet the international requirements. The Danish authorities cannot enforce special regulations for international ships that are simply passing through the international straits that surround Denmark. Norway, on the other

The Danish Shipowners Association is also concentrating

its efforts on promoting conversion to natural gas in the
ferry industry. Conversion of the ships is relatively simple,
and the price of natural gas is attractive when purchased
in very large amounts. However, ports still provide no possibilities for ships to refuel with gas in the amounts that are
needed at a competitive price.

fig.10 Reductions of NOx as adopted by IMO in 2008

Nitrogen Oxides Global

Nitrogen Oxides

100%

80%

emssion control are a

60%

40%

20%

0%
2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

green tr ansport of global tr ade 17

Case study No4

Catalytic converters remove NOx on

Helsingr/Helsingborg ferries
The four Scandlines ferries that
transport many thousands of people
and vehicles on a daily basis between
Helsingr in Denmark and Helsingborg in Sweden have in recent years
been equipped with catalytic converters, completely removing all NOx from
the exhaust. It is not a cheap solution,
but the results are very satisfactory,
according to Claus Nikolajsen, Head
of Operations at Scandlines.
Thanks to the catalytic converters,
the ferries no longer emit NOx. The
technology has worked from the
beginning, but they were a major
expense, he says.
Scandlines does not at the moment
have plans to install catalytic converters on more ships because of the
enormous investment of several million Euros. Scandlines has not experienced any technical or operational
problems with the converters, even
though the technology has, primarily
been used to reduce the environmental impact of onshore transport.

Its a tried and tested technology, so

we havent had any problems. We
are therefore also positive about
using the technology on more ferries,
if theres room in our budget, says
Claus Nikolajsen.
When NOx reacts with ammonia
with the help of a catalyst, the NOx
molecules in the exhaust system are
converted to harmless nitrogen and
water. The technology has been used
for more than 30 years to reduce
the environmental impact of onshore
transport and is now gaining ground
in the shipping industry. Installations
on ships work in the same way as
on land, but on ships it is extremely
important that the catalytic converters can withstand vibrations and that
they contain an effective scrubbing
system, based on compressed air, to
wash the heavy fuel oil.

Catalytic converters remove

the NOx from Scandlines four
Helsingr/Helsingborg ferries.

Case study No5

Filter to remove harmful diesel

particulates from r Ferries
The ability of particulate filters to
clean the engine exhaust in onshore
transport is well known, but now a
new experimental approach is exploring whether the same technology
can be used in seaborne transport
and thus limit emissions of harmful
particulate matter. Peder Hansen,
technical manager of r Ferries, has
high expectations for the project, but
emphasises that there have been a
number of unexpected challenges.
Its no simple thing. Finding room for
the filter and the necessary cabling
was a challenge in itself. But there
is no doubt that they have a positive
effect on the environment and thats
important to us, he says.
Particulate emissions from the ferries
are cut in half with the installation
of the filter on one of the ferries
engines, making the environmental
impact of two motors 3kg less per
day this corresponds to two large
shopping bags filled with particulate
matter.

The particulate filter separates the

harmful particulate matter from the
exhaust fumes so it does not reach
the atmosphere and harm the environment and public health. It is based
on the same technology as is already
used in diesel powered vehicles.
In principle, were talking about a
well-known technology, but we did
not know how it would work on a
ship. Thats what we found out. And
even though we have run into a few
challenges along the way, we are still
convinced that the technology has
reduced our environmental footprint,
says Peder Hansen. The total price
for the project is DKK 2,3 millions,
with the Danish Environmental Protection Agency financing 47% and
the rest being financed by the Danish
Technological Institute. In addition,
both r Ferries and Dinex, the
developers of the filter, have devoted
many man hours to the project.

green tr ansport of global tr ade 19

4. Ballast water
Challenge
Ballast water is seawater that is used to adjust the stability
of a ship. The discharge of ballast water poses a risk to the
marine environment in particularly sensitive areas because
living organisms in the ballast water can spread to other
ecosystems and shift the biological balance. IMO has therefore adopted a convention that initially requires ships to discharge ballast water in deep water far from land. When the
Convention has been fully implemented, ballast water will
have to be treated before discharge, or some other action
will have to be taken to ensure that the discharged ballast
water does not contain living organisms.

History
In 2004 IMO adopted the Ballast Water Management Convention. The Convention will enter into force a year after it
has been ratified by 30 countries, which together have registered 35% of the global merchant fleet. This is expected
to be achieved by 2013, and by 2016, the requirements
for treating ballast water should be fully phased in. The
Convention covers all ships with certain specific exceptions.
Domestic ships may qualify for exemption, and that will be
the case in Denmark. The intake and discharge of ballast

water within the same area will also qualify for exeption.
Finally, a risk assessment, demonstrating low risk in connection with the discharge of untreated ballast water, may
also qualify for a fixed-term exemption. It remains unclear,
however, whether short sea shipping in Europe will constitute an exception or qualify for exemption. Treating ballast
water on board is an expensive solution. The price of the
equipment and installation amounts to many million Euros
per ship, and operation of the systems consumes a significant amount of fuel. It is critical that these cost are justified
by the environmental gains. This, however, continues to be
questioned, especially because the spread of organisms at
sea not only takes place via ballast water but also because
the organisms themselves move and because they grow
as fouling on the outer hull. Thus, treatment of ship ballast
water can reduce, but not eliminate, the risk of the spread
of species.

Initiatives
As early as in 2008 the Danish Shipowners Association entered into a voluntary agreement which commits its members to comply with some of the future requirements of the

fig.11 The Baltic Sea

divided into nine main areas

Danish Partnership on
Ballast Water
The Danish Shipowners Association has established a partnership with the Danish Nature
Agency and the Danish Maritime Authority, which
are the relevant Danish authorities.
The objective is to ensure appropriate Danish implementation of the regulations in the IMO Convention. Since 2010, the partnership has taken
initiative to hold workshops and conferences, as
well as conducting an investigation into the possibility of dividing the Baltic Sea into areas which
would render ballast water treatment unnecessary
for ships staying within the same area. More than
100 individuals representing The Blue Denmark
i.e., equipment manufacturers, environmental organisations, researchers, educational institutions
and government authorities are participating in
the activities of the partnership.

Convention and exchange their ballast water in deep water,

far from land, before entering northern European waters.
The Danish Shipowners Association believes that the ballast water regulations should be uniform and international
and therefore supports in principle the IMO Ballast Water
Management Convention. However, it is vital to ensure flexible and proper implementation of the provisions of the
Convention, and there is a need for a critical review of the
legislation before it enters into force. This applies, for instance, to the fixed deadlines, which were originally decided
based on the assumption that the Convention would enter
into force much earlier and that the technological solutions
were already in place. The estimated number of installations between 2016 and 2020 is not realistic. Similarly, it
also applies to the regulations and guidelines regarding

sampling, approval of ballast water management systems

and exemptions/exeptions. In 2011 the Danish Partnership
on Ballast Water investigated the perspectives of dividing
the Baltic Sea into a number of areas that are homogeneous enough to qualify the intake and discharge of ballast
water within each of these specific areas for exeption from
the Conventions requirements for treatment without further
examination. The investigation found that the Baltic Sea can
be divided into a number of main areas which can be viewed
as same areas based on various biological and geological
parameters. This is particularly interesting in relation to the
ferry industry and short sea shipping, routes within only one
of the areas. Ultimately, the countries in the Baltic Region
need to work together to create a common model for both
exemption and exceptions for specific shipping routes.

fig.12 WORLD FLEET eSTIMATED NUMBER OF INSTALLATIONS of

ballast water treatment plants, once the convention enters into force

* n umber
of ships

20,000 *

15,000

10,000

5,000

0
2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

green tr ansport of global tr ade 21

Case study No6

New technology can treat

ballast water & protect
the marine environment

The IMO Ballast Water Management

Convention is expected to enter into
force by 2014, and in connection
with IMOs type approval process,
Maersk has already tested three systems on board their ships. Soon the
shipping company will begin preliminary tests on a fourth technology. The
results look good, but the shipping
companys experimental testing
also shows that there are still major
challenges to be overcome both
technical and financial.
We really want to help protect the
marine environment, so we are working hard to make sure the ballast
water on our ships doesnt have a
biological impact on the environment.
Even though the IMO Convention
in the area has not yet entered into
force, we have already tested several
technologies on our ships and there
are a number of interesting solutions.
However, it is important to emphasise
that there are still major technological
and financial challenges which it may
be difficult to overcome by 2014,
says Palle Wredstrm, Project Manager at Maersk Maritime Technology.
Every year approximately 12 billion
tonnes of seawater is moved around
the world by oceangoing ships.
Problems with ship ballast water arise
because it often contains bacteria,
microbes and other organisms that
can be harmful to the local marine
environment.
Rapid technological development
In recent years, a large number of
high-tech companies have emerged
with the goal of becoming a supplier

22

of technology for treating ballast

water. Maersk Tankers is therefore
devoting a great many resources to
testing the various options in order to
find the best possible technology.
We are talking about a very large
investment, around USD 680 million
in our case, so its vital that we find
the right solutions from the outset,
explains Palle Wredstrm.
In order for the technologies to
achieve type approval by IMO, they
must be subjected to both a shorebased test and a shipboard test.
Several of the shipboard tests have
been carried out on Maersk ships
where, in close collaboration with the
suppliers, Maersk has installed the
technology and subsequently tested
it. The shipping company has tested,
among other things, technologies
that use ozone and ultraviolet light
to treat ballast water.
Timeframe presents problems
However, even though Maersk has
successfully tested the new technologies, Palle Wredstrm emphasises
that it will not be an easy task when
the Convention enters into force.
Its a much bigger challenge than
anyone has imagined. Everything has
to happen within a timeframe that
is much too narrow, and it will be a
huge logistical and commercial challenge to find the right systems for the
different types of ships and get them
installed within such a short period
of time. This increases the likelihood
that some shipping companies will
end up with expensive, but mediocre,
solutions, says Palle Wredstrm.

Palle
Wredstrm
Project Manager,
Maersk Maritime
Technology

He points out that because the

technology is so new, it is difficult
to determine which solutions are
the best. The shipping companies
therefore risk spending billions on
technology that could turn out to be
less than optimal.
Our concern is that haste makes
waste, which is why we hope that
after the Convention enters into force
there will be a willingness to explore
whether a less tight timeframe might
actually bring about better results
both financially and environmentally,
concludes Palle Wredstrm.

Comprehensive testing
of new technology to
treat ship ballast water
on several Maersk ships
has shown promising
results, but there are
still major technological and nancial
challenges.

5. Other environmental issues

Fouling

Waste & sewage

Challenge
Ship ballast water is not the only way ships spread alien
species to foreign ecosystems. Organisms living as fouling
on the outer hull of ships represent an equally significant
risk. And this risk was increased years ago with the banning
of toxic anti-fouling paint. Consequently, the large-scale
ballast water management efforts could turn out to be
futile. This example demonstrates, in line with the Danish
Shipowners environmental policy, the importance of taking
a holistic approach to environmental issues.

Challenge
As a general rule, the shipping industry does not dump
waste or untreated sewage water into the sea. This issue
is also fully regulated and in the vast majority of cases the
practice is in fact prohibited. If there is adequate access to
disposal on land; there is no motive to pollute at sea. The
cost of disposal should be distributed evenly, regardless of
how much the individual ship needs to dispose of, in order
to remove any financial incentive not to dispose of waste
properly.

Status
For centuries, the hulls of ships had been kept clean of
fouling, thus reducing fuel consumption, with the use of
toxic anti-fouling paint; in 2008 IMO adopted a ban on the
highly effective toxin TBT. The new paints are gentler on
the marine environment but leave ships with heavier fouling.
The shipping industry has no desire to bring back the use
of TBT, but rather is searching high and low for alternative
and non-toxic ways to reduce fouling, and the extra fuel
cost it causes.

Status
IMO laid down regulations many years ago to prevent pollution of the marine environment with waste and sewage
water from ships. For instance, it is globally prohibited to
threw plastic in the ocean, and since 1975 any use of the
ocean as a dumping ground for waste from land sources
has been banned. In the North Sea, Baltic Sea and a large
number of other specially protected marine areas only food
waste may be thrown overboard and only if the ship is more
than 12 nautical miles from land. Furthermore, a ship must
either have an approved sewage treatment system or a
holding tank on board for sewage water. The contents of
the tank must either be disposed of on land or stored until
the ship is more than 12 nautical miles from land. If the ship
has a sewage treatment system on board, the contents may
be discharged 3 nautical miles from land. In order for the
regulations to work, coastal states must make sure than a
ship can actually dispose of its waste and sewage when in
port. In Denmark, most ship sewage water is disposed of in
appropriate treatment facilities on land. In the Baltic Sea
area it has even been decided that ports may not charge
a ship an extra fee for disposal of sewage water. In this
way, the cost of disposal are distributed evenly among all
ships, both those that dispose of waste and those that do
not. This removes the incentive to save money by polluting
at sea.

A number of experts believe that half the organisms that

are spread by ships are actually sitting on the outer hull
and thus have nothing to do with ballast water. In this light,
there are concerns that the enormous sums spent on installing ballast water treatment systems by the entire global
shipping fleet could turn out to be wasted because the
undesired organisms are spread anyway from the outer hull.
Fouling has only recently made the IMO agenda, and the
only action so far has been voluntary guidelines on how to
minimise fouling on ships, for instance with more frequent
and thorough hull cleaning in dry dock. These guidelines
will most likely be the next theme for international environmental regulation, and it also requires a global approach.
Australia and New Zealand have already introduced national requirements that the international shipping industry
can have difficulty meeting. California is also considering
local requirements which a container ship that has just
come out of dry dock from cleaning would be unable to
meet after just one voyage across the Pacific Ocean from
Japan to the USA.
Initiatives
The Danish Shipowners Association is actively taking part
in the developments with a view to ensuring that any regulations passed are in line with its environmental policy.

24

However, the system does not function satisfactorily everywhere in the world. In some ports, ships are required to dispose of waste and then charged an exorbitant fee that far
exceeds the costs of further disposal. There are also many
ports that do not have the necessary capacity, and a lot of
capacity is needed, for example when a cruise liner needs
to empty its tanks.
Initiatives
There is a need for tighter regulations on land to give ships
better access to disposal and to protect them from exorbitant fees. Both IMO and the International Chamber of
Shipping encourage ships to report ports that do not have
satisfactory facilities, but the ships are often reluctant to do
so in fear of retaliation.

Recycling of ships
Challenge
When a ships life has expired, the majority of the materials can be recycled. Every year approximately 500 large
merchant vessels are broken up for scrap. This takes place
primarily in South-East Asia, which does not have the same
focus on the environment and occupational health and
safety as Europe. International regulations designed to ensure that ships all over the world are recycled under acceptable conditions have been drawn up by IMO. The shipping
companies have already begun to follow them. It is important that EU countries support the international regulations
instead of attempting to limit the market for recycling facilities in Asia.
Status
The Danish merchant fleet is young, so the last owner of
a ship is rarely a Danish shipping company. In 2009 IMO
adopted an international convention on safe and environmentally sound recycling of ships. The Convention aims
to ensure that ships which are to be recycled are readied
and equipped with a list of hazardous materials on board.
At the same time, the recycling facilities must be certified,
have satisfactory occupational health and safety procedures and be able to manage and either recycle or dispose

of hazardous materials in a responsible manner. It goes

without saying that this system can only work if it applies
both in the countries where the ships are registered and in
the countries where the recycling facilities are located. The
Convention therefore will not enter into force until 15 countries, which represent 40% of the global gross tonnage,
have ratified the Convention. Furthermore, these countries
must have a recycling capacity that makes up 3% of the
global merchant fleet.
Initiatives
A number of international organisations representing shipping companies, unions and classification societies have already prepared guidelines for the safe and environmentally
sound recycling of ships, and these guidelines are closely
in line with the forthcoming convention. Danish shipping
companies are much more aware of the issue, and several
have a recycling policy as part of their CSR strategy. The
Danish Shipowners position is that the Convention should
be ratified as quickly as possible. Until this happens, the
Danish authorities should work closely with the industry to
develop clear guidelines for recycling Danish ships that are
based on the provisions of the Convention. EU regulations
should facilitate the rapid entry into force of the convention
and refrain from additional protectionistic measures.

danishshipping.com