Driven by stricter emissions regulations and rising fuel costs, global demand for advanced propeller retrofits and energy-saving devices (ESDs) has surged nearly fourfold since 2020.
A new Lloyd’s Register (LR) report offers critical insights into how these technologies are reshaping the future of vessel efficiency and decarbonization, revealing significant opportunities — and challenges — for shipping operators navigating the energy transition.
Strong Adoption in Newbuilds, Growing Momentum in Retrofits
The report shows a stark contrast between existing fleets and newbuild trends. While only 1.74% of today’s fleet features rudder bulbs from newbuild, 8.42% of vessels on order include ESDs, indicating a growing prioritization of efficiency in ship design.
Segments like bulk carriers, tankers, and container ships are leading the way, with notable figures such as 16.87% of bulk carriers on order featuring rudder bulbs. Moreover, nearly 1,500 vessels are expected to be retrofitted by the end of 2024, pointing to a retrofitting boom that now increasingly includes younger ships under 10 years old.
Emissions Rules Drive Economic and Environmental Motivation
Regulatory frameworks like the IMO’s CII and the EU Emissions Trading System are directly tying vessel emissions performance to financial outcomes. For example, a 20% fuel savings on an Aframax tanker could result in $3 million in savings over a decade. These regulations are a primary force behind the spike in retrofit demand, making ESDs not just environmentally beneficial but also financially strategic.
Complex Choices and Biofouling Risks Pose Retrofit Challenges
Despite clear benefits, operators face technical and implementation hurdles. Device selection can be complicated by conflicting interactions, performance inconsistencies, and a lack of vessel-specific data. Moreover, biofouling — marine growth on propeller blades and ESDs — can significantly undermine efficiency gains.
To combat these issues, LR recommends a five-step strategy: from vessel-specific assessments and computational fluid dynamics (CFD) analysis to long-term monitoring and maintenance planning, ensuring retrofits deliver sustainable value.
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Source: LR
