The “rush” for energy efficiency and it’s impact on ships Shipping in the 21st Century Maria Tsakos Foundation Athens 8th October 2014 Dragos Rauta INTERTANKO Image courtesy of Tsakos Energy Navigation Ltd.

ENERGY EFFICIENCY ON NEW BUILDINGS WELCOMED LOT OF POTENTIAL FROM REVIEWING BASIC ELEMENTS OF SHIP DESIGN: Hull hydrodynamics and hull paint Propeller design and diameter Introduction of new and more efficient main engines Optimised slection of auxiliary engines Optimising cargo carrying capacity . . . . EEDI COULD BE LOOKED AT AS A «CONCEPT» . . . but . . . . IT ENDED UP AS A VERY COMPLEX INDEX

Average improvements from the base line Results so far promising Tougher task for VLCCs? Source: IMO - MEPC67/INF:4 Some challenges in design improvements Larger propeller - cavitation, noise, stern space and aft hull hydrodynamics Gap between MCR and NCR to allow sufficient power for severe weather Do Mewes ducts, stator fins, propeller boss caps fins add more?

Historical VLCC hire and bunker costs SEEMP is welcome - a reflection of what ship owners already do: continuous monitoring and followed by measures for improving the operational efficiency - a vehicle to open cooperation between ship owners and charterers for improved logistics

SEEMP RESULTS Yearly improvement (index 2007) 9.86% 15.50% 11.40% 19.80%

SEEMP RESULTS

ACTUAL FUEL CONSUMPTIONS ON SISTER SHIPS Ships can report annual aggregate fuel consumptions and aggregate values of some few other relevant transportation data Naïve to believe it is realistic to establish fair and efficient legally-binding, fleet-wide operational efficiency standards

INT. SHIPPING CONTRIBUTIONS TO GLOBAL CO2 Source: IMO 3rd GHG Study (2014) Ships’ operations could be further improved by streamlining impractical or conflicting provisions in some regulations. Operational efficiency could also be stimulated by simpler and more efficient port practices, control on quality of fuels provided to ships and by mandating ports and terminals to provide ships with proper services and proper assistance

thank you very much dragos.rauta@intertanko.com SHIPPING HAS ALWAYS BEEN ENERGY EFFICIENT SHIPS BECAME MORE EFFICIENT IN TIME SHIPS WILL BE MORE EFFICIENT SHIPPING WILL REMAIN THE MOST ENERGY EFFICIENT MODE OF TRANSPORTATION THROUGH CONTINUOUS IMPROVEMENTS thank you very much dragos.rauta@intertanko.com