Rising fuel costs, oversupply of capacity, turbulent freight rates and limitations on the availability of skilled staff can result in vessel maintenance standards slipping as ship owners cut costs to remain profitable.Read More
With 20% of the fleet responsible for over 50% of casualties, a reliable vetting system, combined with advice and support from maritime professionals is essential for charterers seeking to reduce the risk associated with casualties, cargo damage, costly delays and detentions.
RightShip Qi, our online vetting platform, utilises big data, predictive analytics and real-time risk assessments to predict the likelihood of a vessel having an incident in the next 12 months.
Taking into consideration up to 9 key risk factors as well as 4 adjustment factors external to the model, Qi provides a prediction for each vessel, depicted as a star rating, which is then interpreted and applied in consideration of any specific customer requirements by our experienced vetting superintendents.
RightShip Qi is the only vetting platform that incorporates environmental sustainability into the vetting process. Charterers seeking to reduce their bunkers, minimise carbon dioxide emissions and support their company’s sustainability objectives can choose to incorporate energy efficiency (link) into the vetting selection process.
Ship owners with access to RightShip Qi can track events such as casualties, incidents and rating changes to their fleet.Read More
This enables them to proactively address any deficiencies or incidents by providing information to close it out. Ship owners can also view the risk rating of their vessel and benchmark their company performance against both best practice and the RightShip global average.
Ship owners who are not RightShip customers are also encouraged to contact RightShip to proactively close-out any deficiencies or incidents. This information will be activated in RightShip Qi at no cost to the shipowner.
Insurers are rewarding ship owners who have superior quality vessels with reduced premiums, while owners with a history of a well-maintained fleet list can also obtain finance more easily.
Terminal operators use RightShip Qi to encourage more environmentally sustainable vessels to enter their terminal, while providing a full audit trail to substantiate decision making.Read More
Once a vessel has loaded at a terminal that subscribes to RightShip, feedback from the terminal staff is recorded against the vessel for future reference, ensuring that non-commercial performance information is readily available to all RightShip users. Terminals can also benchmark their risk profile, quality assurance criteria and environmental performance against other RightShip clients. In addition, they are better placed to analyse their own performance over time for reporting purposes.
Terminals seeking to position themselves as leaders in the environmental space can also provide discounts and incentives to more efficient vessels. Under Port Metro Vancouver’s Eco Action Program, vessels that have a Greenhouse Gas Emissions Rating of A, B or C are given discounted harbour due rates of C$0.061 (Silver Rate) per gross registered tonne compared to the base rate of C$0.094 per gross registered tonne.
RightShip is also an incentive provider to the Environmental Ship Index (ESI), which identifies ships that reduce air emissions above the current emissions standards of the IMO. The index is used by ports to reward vessels when they participate in the ESI.
Information on rewarding efficient vessels can be found through RightShip’s Port Incentive Program.
Positioning themselves as leaders in the growing movement to increase focus on emissions and efficiency, Prince Rupert use the GHG Rating in their Green Wave incentive program, which offers discounted harbour dues to vessels that have emissions reduction measures or practices in place.Read More
A positive spin-off has also been the significant amount of positive media exposure the incentive programs have generated for their ports, recognising their efforts in driving sustainable shipping.
“We’re proud to be accelerating the shipping industry’s movement toward greater efficiency and sustainability using RightShip’s GHG Emissions Rating. Since launching our Green Wave vessel incentive program in 2014, RightShip has been an exemplary qualifying measurement that has allowed vessel charterers and owners to take advantage of significant discounts to harbour dues at the Port of Prince Rupert. The support we have received through our partnership with RightShip has been integral to the success of our program. Our recognition of environmental performance is encouraging the adoption of similar practices across the global shipping industry.”
Don Krusel, President & CEO, Prince Rupert Port Authority
Given current global economic uncertainty, the variability in ship prices and the high volume of new builds, the value of intelligent real-time information and the ability to execute systematic and thorough underwriting procedures cannot be overstated.Read More
Banks, insurers and P&I clubs use RightShip Qi to supplement their internal risk processes. Many insurance brokers also consider RightShip data when delivering premium relief across multiple lines of cover to their customers, in recognition of the superior nature of the vessels they engage.
Given the current over supply of vessels in the market, it makes economic sense for banks to reduce their risk by financing energy efficient assets, particularly given the typical 25-year investment horizon. Financial institutions increasingly factor in sustainability into their financing criteria as the trend towards responsible investment grows.
An energy efficient vessel has lower fuel costs and better chartering potential, which may lead to a higher initial asset value and a longer period of economic depreciation. With more indexed orientated freight rates, inefficient vessels will have smaller margins and a reduced budget for maintenance, crew, conditions, systems and loss control measures.
RightShip’s EVDI™ and GHG Rating provide a standardised framework for measuring the efficiency of an investment portfolio and tracking changes over time. Financial institutions can also use the environmental rating to map the correlation between investment risk and vessel employment as an increasing number of charterers seek out more efficient vessels. As more nations place a price on carbon, the payoff for investing in energy efficient vessels will materialise and financial institutions that move first will have significant market advantage.