Shipowner Decarbonisation Survey Identifies ‘Collaboration Crisis’

(Houlder Navigator) Houlder Navigator research highlights ineffective collaboration as a key barrier to the decarbonisation of shipping -- A survey of shipowners conducted by design and engineering consultancy, Houlder, has highlighted that reliance on ad hoc collaboration between ship owners, and between technology companies and owners, is currently a major barrier to the decarbonisation of shipping. The research – based upon owner feedback from across the container, tanker, bulk, cruise and ferry sectors – uncovers that while the potential impact of more in-depth interaction is significant in achieving carbon reduction commitments, this is not currently being delivered in a way that owners need.

Every senior industry player interviewed confirmed that there is a willingness to collaborate and that it is critical to achieving rapid, fundamental change. However, collaboration is less evident in practice, as owners focus on achieving emissions reductions while safeguarding competitive advantage. The research unearthed two core areas for improvement: collaboration between owners and clean technology providers, as well as collaboration between owners themselves.

Owners identified a lack of good quality and relevant operating data as a key barrier to the uptake of clean technology. There is also a perceived shortage of independent corroboration for the claims made by some technology vendors. None of the participants accused technology providers of suggesting deliberately misleading results but reflected that the data in a brochure will inevitably relate to another ship. So the results (and the unintended consequences) of any technology intervention need to be recognised as a retrospective, and sometimes fundamental, design change.

Large shipowners, in particular, are doing a great deal to move the industry forward by creating clear demand for future green fuels, by setting up infrastructure to trial new technologies, and by sharing some of their findings. However, according to respondents, that only highlights the challenge for the smaller owners and medium-sized owners – where typically the scale and investment required for R&D and trialling was unattainable. To play their part, these smaller and medium shipowners need to draw in partners in order to access the knowledge, scale and resources to enable them to make changes.

Effective collaboration needs convenors to safeguard participants and break down barriers. Convenors can act as a central black box, bringing sensitive information together to paint the full picture while protecting the confidentiality of the data owners. They can also help ship owners share the cost of trialling a new technology while giving them all access to the benefits.

Sean McLaughlin, Strategy Consultant at Houlder, commented: “Collaboration has become a decarbonisation buzzword, much heralded as central to shipping’s energy transition, and critical to meeting the International Maritime Organisation’s emissions reduction targets. This research highlights that, while the heart is willing, the head remains focused on safeguarding competitive advantage. This creates a fundamental barrier which has to be addressed if shipping is to achieve its decarbonisation goals.

“Collaboration is more than just ship owners sharing technical data on a new technology. It encompasses all stakeholders and often supply chains as well. What is clear is that we cannot expect collaboration to “just happen” – there has to be more proactive convenors. Flag states, national chambers and the international chamber, industry coalitions and independent consultants all have a key convening role to play if significant barriers are to be overcome. This should form a core discussion point at the Marine Environment Protection Committee (MEPC) 79 meeting next week.”

The Houlder Navigator survey is the first in a series of projects aimed at identifying and addressing key decarbonisation challenges and supporting the energy transition. C-suite executives from both large and small shipping companies across the container, tanker, bulk, cruise and ferry sectors were interviewed and the anonymised output was collated into a whitepaper; ‘Clean Technology and the decarbonisation challenge – a Houlder navigator whitepaper’. The whitepaper includes owners’ perspectives and direct quotes on decarbonisation goals, choosing vessel efficiency (clean) technology, financial incentives and disincentives, evaluating alternative fuels, and making collaboration work.

About Houlder Limited
Houlder has been a wholly independent provider of design, engineering services and equipment for over thirty years. The company has built on its marine and oil & gas pedigree to proactively engage with emerging markets such as offshore renewable energy and LNG distribution. Houlder employs 80 professionals across the UK, supporting a network of global projects across the North Sea, Gulf of Mexico, West Africa, North America, South Korea, and Singapore.

Houlder’s project managers, naval architects, marine engineers, and consultants, support clients through the entire procurement cycle from conceptual ideas to through-life operations. Its diverse client base includes such organisations as the UK Government (2017 National Shipbuilding Strategy), UK Ministry of Defence (MOD), Natural Environment Research Council (NERC), Oil & Gas Majors, the Society of Gas as Marine Fuel (SGMF), Eon Climate & Renewables, Siemens Wind Power, Technip, Subsea 7, Shell, BP Exploration, MPI Offshore, Aquatic, Transocean, Dolphin Drilling, and Schlumberger & Ensco. Houlder has also worked on high-profile sustainability-centric projects including the RRS Sir David Attenborough.

Houlder’s corporate affiliations include Subsea UK, NOF-Energy, The British Rig Owners Association and the Royal Institution of Naval Architects, and the company holds numerous business and industry awards for its innovation, design and business success. Houlder is also a member of the UK Chamber of Shipping.

For more information on Houlder’s latest projects, visit: http://www.houlderltd.com/

An additional statement in this regard from Sean McLaughlin, Strategy Consultant, Houlder: “It’s good to see another Marine Environment Protection Committee meeting underway with MEPC 79. However, following the lack of robust detail coming out of COP 27, most would agree it’s time for a little less conversation and a little more action.

A key theme coming out of our recent decarbonisation survey of small and large shipowners from the container, tanker, bulk, cruise and ferry sectors was that there are still barriers to owners actively collaborating with other owners, and with equipment manufacturers. It was identified that proactive convenors such as international chambers, industry coalitions and independent consultancies have a key role to play in overcoming these barriers. Ultimately, for shipowners, it is all about driving sustainability while safeguarding competitive advantage.

As we engage in yet another MEPC meeting, it’s not enough to merely talk about a willingness to collaborate on decarbonisation projects. Rather, the practicalities of making collaboration work must be agreed and put into action. We’re proud of the decarbonisation survey we’ve undertaken with top executives in shipping, and the pertinent and wide-reaching whitepaper we’ve produced as a result.” READ MORE