Compliance Modeling Shows Fuel Costs for Shipping Routes Between Major Ports
What happened
Titan, part of Molgas, modeled FuelEU Maritime compliance for an 8000 TEU containership operating a route connecting Rotterdam, Antwerp, Hamburg, and Algeciras using 18,000 tonnes of fuel equivalent annually. The analysis compared fuel oil, grey LNG, and a 30% bio-LNG blend. The study found that a fuel oil-based vessel faces steep penalty costs, rising from approximately €2.2 million to €17 million by 2040 as targets tighten. In contrast, the 30% bio-LNG blend could generate a surplus compliance value of €3.4 million to €5.1 million per year.
From lngindustry.com
Why it matters
The modeling highlights the financial pressure of FuelEU Maritime regulations on major shipping routes. The findings suggest that transitioning to compliant fuels, such as bio-LNG, could provide a significant commercial benefit through transferable compliance value, though the net benefit depends on market negotiations and fuel costs.
Compliance costs related to RED III are pushing demand shifts onto Belgium, which is offering alternatives to various mandates.
From lngindustry.com
Who's involved
- TitanCompany that analyzed the compliance modeling for the shipping routes.
- HamburgMajor port city included in the modeled shipping route.
- RotterdamMajor port city included in the modeled shipping route.
- AntwerpMajor port city included in the modeled shipping route.
- AlgecirasMajor port city included in the modeled shipping route.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- AlgecirasSpeculative
The port might see increased demand for compliant fuels and bio-LNG due to regulatory action.