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RightShip Anuj Chopra 12th June 2014
RightShip
Anuj Chopra 12th June 2014
• About RightShip
• How it works
• Joining a movement
• Logistics of implementation
• Conclusion
Agenda
• Independent company formed in Oct 2001 • Melbourne, London & Houston
• 230+ Customers globally
• Ship Vetting & Risk Management Service • Dry Cargo & Petroleum Vetting Service
• Environmental Rating & CO2 Benchmarking
• Largest Provider of Third Party Vetting Services
• Conservatively vet > 1/3 of global dry bulk maritime movements
• Worldwide dedicated vetting specialists • Former serving Masters and Chief Engineers
• Award winning proven system • ISO9001 and ISO27001
About RightShip
RightShip Vetting Activity
The RightShip Value Proposition
• Enterprise wide tool which lowers total cost of risk
• Systematic, transparent and independent risk assessment
• Empirically validated and accepted by the maritime industry
• Simple to use / Accessible 24hrs / Global Platform
• Benchmarks commitment to safety and responsible governance – full audit trail
• Reduced insurance premiums
• Cost effective solution compared to an in-house model
IMO’s
Energy Efficiency Design Index
Energy Efficiency Operational Indicator
RightShip’s
Existing Vessel Design Index
Green House Gas Emissions Rating
Achieving Sustainability in Vessel Selection
Defining Efficiency
• Energy Efficiency Design Index (EEDI) / Existing Vessel Design Index
(EVDI)
• A formula to calculate the amount of CO2 emitted (in grams) by a vessel for
every tonne of cargo carried per nautical mile based on:
– Total engine power
– Fuel type & specific fuel consumption
– Cargo carrying capacity
– Speed
• EEDI – vessels built post 1 Jan 2013
• EVDI – vessels built pre 2013
GHG Emissions & Shipping
Emissions (Gigatons CO2) Data Source: Second IMO GHG Study (2009)
CO2 Emissions
Sustainable Advantage
As easy as A to G
Let’s Compare
100,000 DWT
Bulker 90,000 DWT
Bulker
110,000 DWT
Bulker 10% smaller in DWT 10% larger in DWT
Calculating the GHG Emissions Rating
4.334 4.064 4.334 3.689 4.459 4.334 3.994 4.007 3.742 4.401
4.159
Minimum 40 vessels in Peer Group
EVDI / EEDI
Calculate EVDI Log
Value
Apply Weights to Log Values
Calculate Z-Score
GHG Emissions
Rating
1 2 3 4 5
Benchmark Performance Over Time
Vessels – Global Positions
Joining a movement
Sustainability Reporting
In the U.S.
NY/NJ
The Charterers
The Charterers
Differentiate &
value add
Airlines differentiate
their service
Shipping has no
similar differentiation
Opportunity
Survival of the Greenest
Companies Taking Leadership Positions
• Twenty six RightShip customers factor in energy efficiency into chartering selection process when vetting
o together they ship 1.8 billion tons of cargo - around 23% of global non-containerized shipments
o around 22,000 vessel movements annually
• Early adopters have significant first mover advantage
• Feedback has been very positive
o reduced shipping costs through reduced bunkers & Port Costs
o enhanced reputation through focus on sustainability
o supports sustainability objectives
o Longer working life for Sustainable Ships
One World!
Logistics of Implementation
Benchmark Performance Over Time
JSON – The Sustainability Concierge
Satellite Overlay
• EVDI™
• A-G Rating
• Others?
Ports using the A to G 6-step roadmap
1
• Initial engagement with ports to scope will and capability to offer incentives
2
• Introductory presentations with RightShip and Carbon War Room to understand the ‘A to G’ GHG Emission Ratings methodology
3
• Data modeling using historical arrivals data; analysis of historical ‘A to G’ spread of vessels that have called to port to estimate cost implications
4
• Port internal process of approvals to implement revised harbor tariffs and discounts; once approved:
5
• Collaboration with the Carbon War Room and partners on a comprehensive PR plan to announce the port using A to G ratings
6
• Milestone announcement: more ports sign up to to offer financial incentives to more efficient vessels using ‘A to G’ ratings
Our Stakeholders
Way Forward . . . http://blog.firstvacationrental.com/8-games-to-play-
with-kids-at-the-beach/
