Trafigura Backs Carbon Levy and Slow Steaming

Commodities trading giant Trafigura, one of the largest charterers of vessels in the world, says chartered vessels account for 87 percent of its GHG emissions.

Therefore, reducing carbon emissions from its shipping operations is one of the company’s major challenges.

Trafigura advocates for the introduction of a carbon pricing mechanism on marine emissions as a way of ensuring a level playing field on the market.

The company has also joined the Global Maritime Forum’s “Getting to Zero Coalition”, calling for accelerated decarbonization of shipping through the development and deployment of commercially viable zero-emission vessels by 2030.

“There are actions the shipping industry can take to improve efficiencies: through route optimization and better planning; building new fuel-efficient vessels; and, the chartering of vessels with lower emissions,” Trafigura said in its responsibility report for 2019.

“We are working to reduce the emissions intensity of our shipping fleet. Demands for environmental impact data have grown in recent years. This year, we are pleased to report improved accuracy of measurement of all emissions for which we are responsible. Better accuracy gives us greater confidence in our ability to report and benchmark our emissions intensity: the greenhouse gas emissions attributable to each tonne of commodity moved per kilometer.”

The commodity trader also supports the mandatory introduction of slow steaming, which has been described as a silver bullet for cutting the emissions intensity of the global fleet.

Trafigura added it was reviewing its internal processes to determine how to encourage slow steaming and minimize occasions when vessels are speeded up above their optimal speed.

“We consider both initiatives would be significant steps towards achieving the IMO GHG reduction targets, but we also acknowledge the difficulties in introducing and enforcing global initiatives on marine shipping. “

The commodity trader has also embarked on a six-month trial with dry freight chartering using the RightShip A to G GHG rating system to exclude the least efficient F and G rated dry freight vessels from its fleet.

“This approach is anticipated to reduce emissions from the dry chartered fleet by 11 percent, although this will be verified during the trial period,” Trafigura adds.

“We continue to enhance the range of optimisation techniques across the fleet that minimise bunker usage and improve operational efficiency.”

In 2019, Trafigura took delivery of 39 newbuild vessels that it had committed to on long-term bareboat charter agreements in 2017. The ships are fitted with scrubbers to meet the IMO’s 2020 regulations on sulphur-oxide emissions.

In 2019, the company commissioned 2 LNG tankers, which will be designed to meet EEDI Phase 3.

Trafigura concluded its newbuild vessels are more carbon-efficient than chartered vessels, making it less reliant on spot- and time-chartered wet freight vessels.