Is it time to reset commercial benchmarks? For instance, should demurrage even be done way with? Should any benefit in fuel consumption savings be shared between the Owner and the Charterer? Is it finally time to move away from NYPE 1946 (RS note: a popular and well-entrenched time charter party) and move in a new direction, particularly given the need to add newly relevant criteria to a charter party agreement? To meet new-found efficiency levels is one thing, but to achieve this calls for flexibility around charter party stipulations. An example is as follows: a capesize iron ore cargo voyage from Brazil to Europe will incur a fuel cost of US$ 225,000 – 275,000, depending on the speed utilised which equates to US$ 1.30 – 1.60 per tonne of cargo (at a freight rates of US$ 15 per tonne), meaning that 10% of the freight accounts for the carbon allowance cost. The task is how to manage risk at a time when the cost of carbon is not going to get any cheaper.
Trend learned at The Baltic Exchange (https://www.linkedin.com/company/the-baltic-exchange/) Risk Forum, at Posidonia Shipping Week, Atenes (Greece).
With CEO Mark Jackson (The Baltic Exchange), Burak Cetinok (Arrow Shipbroking Group), Anders Liengaard (Liengaard & Roschmann), Peter Stallion (Freight Investor Services), Martin Crawford-Brunt (Lookout Maritime), Marc Pauchet (Maersk Broker), Thomas Bracewell (Arrow Shipbroking Group), Alessio Sbraga (HFW), Nina Zetsche (Clear Blue Markets), Trifon Tsentides (IFCHOR), Frederic Bouthillier (Ventis Environmental Finance) as speakers.