1. Virtual Arrival

2. Virtual Arrival An OCIMF / INTERTANKO project reducing emission Virtual Arrival is all about managing time and managing speed. It’s not about blanket speed reduction to match current market conditions. Virtual arrival is about identifying delays at discharging ports, then managing the vessel’s arrival time at that port through well managed passage speed, resulting in reduced emissions but not reducing capacity.

3. Virtual Arrival, A way to reduce emission Background Potential emission reduction for existing shipping said to be up to 15% (at no cost?) Fuel represents 60-80% of operation/running costs for owners What drives/restricts emission reduction? It is recognised that commercial and practical restrictions sometimes apply Virtual Arrival is a project that involves several stakeholders Virtual Arrival implies co-operation and removing commercial restrictions

4. Virtual Arrival: A way to reduce emission by taking advantage of known inefficiencies in the supply chain and reducing speed when the terminal is not ready to discharge the cargo In addition to directly reduced emissions, other benefits are: Reduced congestion and emissions in the port area Improved safety Reduced use of fuels Potentially increased use of weather routing Important pre-conditions: The safety of the vessel remains paramount The authority of the vessel’s Master remains unchanged The basic terms of trade remain the same

5. Virtual Arrival What is needed to do to make Virtual Arrival work? 1.A known delay at the discharge port 2.A mutual agreement between two (or more) parties to adapt the ship’s arrival time to take advantage of the delay 3.An agreed Charter Party clause that establishes the terms for reducing the speed to adapt to the new arrival time 4.An agreement on how to calculate and report the Virtual Arrival and the performance of the vessel 5.This may involve a Weather Analysis Provider (WAP) 6.OCIMF/INTERTANKO and class are producing transparent standards for verification of WAPs But mainly it’s a win–win situation for all, based on trust and transparency

6. Virtual Arrival, a pictorial example.

7. Impact of Virtual Arrival on reducing fuel consumption and GHG emission Bunker consumption - ts Start Voyage Virtual Arrival Agreement Assumed 25% speed reduction: Bunker consumption full speed: 660 t Bunker consumption VA speed: 583 t Bunker Saving: 77 t Saving CO2: 339 t Actual arrival Virtual Arrival ( Full speed & Wf ) Time on demurrage days

8. Virtual Arrival An actual voyage undertaken. The oil traders had a stem loading from Batumi in the Black Sea. – Built up with a number of barges and rail cars The cargo destination was identified as the Isle of Grain and there was a known delay at this port. – Tank space only available before the 16 th

9. Virtual Arrival – The Reality

10. Virtual Arrival The daily report An initial report of the voyage using historic speed and consumption data. The vessel is given a revised Estimated Time of Arrival (ETA) reduce speed to achieve this ETA. Daily progress reports issued to all concerned parties. A final report would be produced showing the savings during the voyage.

11. Virtual Arrival – The Reality We approached the market and an owner that understood and is receptive to the virtual arrival concept. The vessel was chartered. Vessel sailed on 2 nd September 2009 and we engaged a Weather Analysis Provider to do the virtual arrival analysis. Vessel arrived in Isle of Grain at 1000 hrs on the 16 th September and the virtual arrival was Sep 15th 0650. Emissions saved CO2 183.2 mts Nox4.39 mts Sox3.49 mts This represents a 27% reduction in fuel consumptions and emissions over the length of the voyage and a bunker savings 58.83 mts of HFO

12. Meeting the challenge Summary Maritime transport is by definition of an international nature. To preserve and enhance environmental performance, the public image of the world’s fleet and, where applicable, to retain being the means of preferred transport, we, as an industry, will be required to act in a responsible way, and there will be opportunities for innovation to meet this challenge. In summary: Virtual arrival has the opportunity to remove inefficiency within the transport chain through an agreed and managed reduction of a vessel’s passage speed. It has the opportunity of delivering absolute reductions in emissions from the vessels involved.

13. A Voice for Safety www.OCIMF.com Oil Companies International Marine Forum 29 Queen Anne's Gate, London, SW1H 9BU Tel: +44 (0) 20 7654 1200 Fax: +44 (0) 20 7654 1205 For safe transport, cleaner seas and free competition