The Baltic Exchange has introduced a range of green fuel options to its FuelEU voyage and compliance cost calculator, addressing the increasing need for shipowners, traders, and charterers to assess the financial implications of new environmental regulations. As the FuelEU Maritime regulation takes effect, the Baltic Exchange aims to simplify compliance and cost estimation with its enhanced digital tool.
Expanded Fuel Options for Greater Flexibility
The updated FuelEU Maritime calculator now incorporates a diverse selection of biofuel and alternative fuel blends. Newly added options include biodiesel, bio-LNG, bio-LPG, green methanol, green hydrogen, and green ammonia. Users can analyze the cost implications of these fuels either as standalone alternatives or as blended options, allowing for more precise voyage cost estimates.
Baltic Exchange’s FuelEU Maritime calculator provides comparisons between selected fuels and the Baltic standard for a given route. This feature enables stakeholders to incorporate fuel cost variations into their operational planning, ensuring more informed decision-making in response to evolving fuel regulations.
Addressing the Cost Challenges of Green Fuels
“Green fuels are expected to be very expensive initially, so they will likely be blended into fossil-derived fuels to achieve compliance with the new FuelEU Maritime regulation,” stated Martin Crawford-Brunt, Emissions Lead at the Baltic Exchange.
He emphasized that, in response to industry feedback, the calculator now includes a blend capability, offering greater flexibility for market participants in their fuel selection strategies.
The tool aims to cut through regulatory complexities by providing a user-friendly interface that swiftly estimates voyage costs for a range of fuel alternatives. The output is benchmarked against Baltic standard ship and route types, typically burning VLSFO for navigation outside Emission Control Areas (ECA) and MGO during port stays.
Real-World Cost Implications
One example provided by the Baltic Exchange highlights a 115,000 dwt LR2 clean tanker operating on the TC20 Baltic route (Al Jubail – Rotterdam). Under standard conditions—11 knots speed, ballast consumption of 21 mt/day, and laden consumption of 27 mt/day using VLSFO—the vessel stands to save nearly $30,000 in fuel costs when opting for a 35% B100 biodiesel blend.
Despite higher absolute fuel costs, compliance with the FuelEU Maritime regulation generates additional savings, mitigating financial penalties and reducing operational expenditure. The Baltic Exchange’s calculations indicate that higher biodiesel ratios lead to greater savings.
Further, an analysis of 10% green fuel blends—where the assumption is that green fuels cost twice as much as their fossil-derived counterparts—reveals that bioLNG emerges as the most cost-effective option. The overall financial impact of incorporating bioLNG in a blend results in over $400,000 in voyage cost savings when considering FuelEU Maritime-related benefits.
Empowering the Industry with Flexible Decision-Making
The latest calculator update grants users the ability to test any green fuel blend percentage, considering both the premium associated with green fuels and their well-to-tank emissions profiles.
“Regulations like FuelEU Maritime and EU ETS will have a growing impact on voyage costs to and from the EU. It is crucial that all contracting parties, their brokers, and traders can estimate these costs accurately to avoid financial penalties,” Crawford-Brunt stated.
With this update, the Baltic Exchange reinforces its commitment to providing essential compliance tools and resources for a more sustainable shipping industry.
Click here to find out more about Baltic Exchange’s free emissions resources and access the FuelEU calculator.
Baltic Exchange in Brief
The Baltic Exchange represents a global community of shipping interests, including shipowners, ship charterers, and shipbrokers, who manage a significant portion of the world’s dry cargo and tanker fixtures, freight derivative trades, and the sale and purchase of merchant vessels.
Regulated by the UK’s Financial Conduct Authority (FCA) under the EU Benchmark Regulation, the Baltic Exchange provides critical data for settling physical and derivative freight contracts, supporting risk management in global shipping markets.
Founded in 1744 and headquartered in London, the Baltic Exchange has regional offices in Singapore, Shanghai, Athens, Stamford, and Houston. In 2016, the organization was acquired by Singapore Exchange (SGX). Its services include:
- Daily benchmarks for dry, wet, container, and gas freight markets
- OPEX, S&P, ship recycling, and forward assessments
- Air cargo assessments
- Escrow and dispute resolution support
- Executive training via the Baltic Academy
- Networking opportunities for shipping professionals
Source Baltic Exchange