Sea Cargo Charter

EEXI CII EU SRR HKC AMP EU MRV IMO DCS UK MRV EU ETS CSI Poseidon SCC FuelEU

The Sea Cargo Charter is a framework for Charterers to use their influence as cargo providers in the shipping industry to support the objective of IMO GHG reduction by 50% by 2050.

The basic principles of the sea cargo charter are similar to Poseidon Principles [CA1] and are as follows:

ASSESSMENT OF CLIMATIC ALIGNMENT:

Climate alignment is defined as the degree to which voyage carbon intensity of a vessel category is in line with a decarbonization trajectory that meets the IMO target of reducing total annual GHG emissions by at least 50% by 2050. It is calculated on a voyage basis as well as on an annual activity basis.

Voyage Basis:

Climate alignment at the voyage level is the percentage difference between a voyage carbon intensity and the decarbonization trajectory at the same point in time. To provide the most accurate representation of a voyage’s actual climate impact, the carbon intensity of a voyage should be measured from its performance in real operating conditions (e.g. following the Energy Efficiency Operating Indicator (EEOI)), instead of using a design specification metric (e.g., the Energy Efficiency Design Index (EEDI)).

Total Annual Activity basis at vessel category level:

To calculate annual activity climate alignment, one must first calculate the climate alignment of each voyage within the type and size category (also called vessel category). The annual activity alignment is calculated using a weighted average of the climate alignment of each voyage. The weighting is applied according to transport activity undertaken by each category and the weighted average is calculated by dividing the voyage carbon intensity by the ratio of the transport activity of the vessel type, multiplying it by required carbon intensity and transport activity for the vessel and year under assessment [CA2].

Decarbonization trajectory:

These will be produced for each ship type and size class specified in the Third IMO GHG Study and will be produced in a format that allows for simple weighting aggregation. This is to ensure that once the carbon intensity of voyages is understood, it is simple and practical to understand climate alignment.

ACCOUNTABILITY and ENFORCEMENT:

The calculation involved in assessing the climate alignment is dependent upon the type of data provided, source, and service provider.

TRANSPARENCY:

Becoming a Signatorypublicly acknowledges participation in the Sea Cargo Charter. Each Signatory will report the vessel category climate alignment scores and total annual activity climate alignment score of its chartering activities and supporting information, as per the Accountability requirements, to the Secretariat no later than April 30. This requirement takes effect one year after becoming a Signatory to the Sea Cargo Charter. and the vessel category climate alignment scores and total annual activity alignment score of its chartering activities should be published in relevant institutional reports.

The Principles aim to be voluntary, practical to implement, verifiable, fact-based, and effective. Signatories commit to implementing the Principles in their internal policies, procedures, and standards.

Scope:

The Sea Cargo Charter must be applied by Signatories in all bulk chartering activities that are:
1. on-time or voyage charters, including contracts of affreightment and parceling, with a mechanism to allocate emissions from a backhaul and ballast voyages,
2. for voyages carried out by dry bulk carriers, chemical tankers, oil (crude and product) tankers, and liquefied gas carriers
3. where a vessel or vessels are of at least 5,000 gross tonnages and engaged in international trade

Exact Technical Description of Sea Cargo charter:

The signatories will collect the data, IMO or EU MRV, from the shipowner/ Ship manager. The signatory will calculate the climate alignment on annual activity and will submit the results to the Secretariat.

Role of a Shipowner:

The Shipowner will give consent to Signatories to collect the IMO / EU MRV Data along with the SoC and calculate the voyage and annual activity. Data calculation can be performed by Signatories internally or by a third party nominated by the Signatory.

What can Verifavia Shipping do?:

VERIFAVIA SHIPPING is the world's leading independent carbon emissions verification body for shipping under the EU MRV and the IMO DCS, accredited by UKAS, COFRAC, the Panama Maritime Authority, the Liberia Maritime Authority, and several other Flag States. Each year, we successfully verify the carbon emissions of 2000+ ships.
Over the years, VERIFAVIA SHIPPING has acquired tremendous experience in collecting fuel consumption, CO2 emission, cargo, and transport work data (and documents) from ship operators/managers/owners. We are experts in transforming, analyzing, and verifying vessel's operational data and efficiency parameters, and our procedures ensure robust and accurate analysis.
VERIFAVIA SHIPPING can perform the independent calculation as an expert third party on behalf of the Signatories. We have the manpower, technical skillset, and technological capabilities to easily process large datasets. .

We work with the leading Flag States such as Panama and Liberia and can also act as an RO for providing the data to the Signatories in these cases.