The Baltic Exchange shared during its Dry FFA Forum in October that the maritime sector’s decarbonisation journey is increasingly constrained by fuel uncertainty, fragmented regulation, and widening disparities in global readiness. Speakers noted that while many vessels are now technically equipped for lower-carbon operations, the broader ecosystem of fuel availability, regulatory coherence, and skills development has not yet caught up.
During the session, which was led by Martin Crawford-Brunt, the Emissions Panel brought together insights from industry, classification, and international development experts. The discussion centred on how the dry bulk sector is navigating the shifting emissions landscape and the operational strain created by new regional frameworks.
A prominent theme throughout the panel was the ethical and logistical challenge of achieving a just transition. It was highlighted that reforms must reflect a genuinely global approach, with specific emphasis on the growing divide between developed and developing nations. The panel underscored the increasing pressure on human capital, noting that digitalisation and energy transition demands are outpacing workforce preparation.
Regulatory Complexity and Compliance Pressure
Speakers pointed to the mounting urgency among owners and operators to comply with major frameworks such as the EU Emissions Trading System and FuelEU Maritime. These systems have introduced steep operational learning curves, with some organisations still working to establish basic compliance structures. While ETS has already created widespread confusion, FuelEU’s fuel-choice-driven obligations were described as even more complex and financially burdensome.
Contractual ambiguity emerged as a critical concern. Several charter party negotiations were said to contain clauses that—despite appearing compliant—do not clearly assign responsibilities for emissions-related actions. The panel noted that without explicit annual accountability, companies could unknowingly accumulate penalties under multiplier mechanisms, creating long-term risk.
Fuel Uncertainty and Operational Challenges
The conversation then shifted to the fuel landscape, where biofuels were presented as an essential part of the future mix. However, concerns were raised about stability, handling requirements, and the immediate operational need to use certain biofuels soon after bunkering. One panellist compared biofuel dilution to altering a familiar beverage, illustrating an engine’s sensitivity to changes in fuel quality.
Despite significant progress in the shipbuilding sector—where more than half of recent newbuilds were equipped with dual-fuel engines—the supply of viable net-zero fuels is lagging. The panel described this as a deadlock driven by uncertainty over which alternative fuel pathway will prevail and by the high cost of producing new fuels at commercial scale. It was also noted that other sectors may have stronger purchasing power for limited supplies of advanced fuels, potentially constraining maritime access.
Infrastructure and Workforce Strain
Energy-efficiency measures were identified as an immediate lever in the transition, yet even proven technologies introduce challenges. For example, retrofitting wind-assist systems can push a vessel outside its original design envelope, at times increasing drag rather than reducing it. A minor operational deviation—such as a few degrees of leeway—was said to sharply reduce efficiency, underscoring the need for specialised crew training.
On the port side, assumptions about infrastructure readiness have shifted. Some terminals have raised concerns about the impact of new technologies on equipment and operational continuity. Panelists recalled instances where early deployment of wind-assist systems prompted terminals to reconsider access due to the risk of equipment damage. This issue is particularly acute in developing regions, where equipment failures carry significant consequences for throughput and supply chain reliability.
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Source: Baltic Exchange
