Research Indicates Compliance Costs Under IMO GFI Scheme Will Exceed Newbuilding Costs for Bulk Carriers
Research by Wenyu Xu and Nan Wang indicates that compliance costs under the IMO GFI scheme for bulk carrier owners will significantly exceed the original newbuilding costs over the vessels' lifetimes. Costs for operating bulk carriers on low sulphur fuel are expected to rise from approximately $2M in 2032 to over $6M by 2040. The paper suggests a phased approach for decarbonization, emphasizing operational improvements and investments in energy-saving technologies.
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Research indicates that compliance costs for bulk carrier owners under the IMO GFI scheme will surpass original newbuilding costs. For vessels using low sulphur heavy fuel oil, deficit costs are projected to increase from about $2M in 2032 to over $6M by 2040.
The study outlines a phased decarbonization strategy, recommending operational improvements and investment in energy-saving technologies. To maintain a CII rating of C over 25 years, bulk carriers must reduce fuel consumption by 10% by 2030, 30% by 2035, and 50% by 2040. Effective energy-saving technologies include low-friction coatings and propeller retrofits, while carbon capture and biofuel blends are suggested for later lifecycle stages.
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