From Regulation to Results: Key Data from Carola Yannouli’s Baltic Exchange Panel discussion at the Piraeus HSA conference

At the recent Hellenic Shipbrokers Association conference, industry experts gathered to discuss the growing impact of environmental regulations on shipping markets, focusing on balancing compliance, competitiveness, and cost. The panel, moderated by Martin Crawford–Brunt, Baltic Exchange Carbon Lead, featured key voices including Angeliki Malathrona (Redshaw Advisors), Lefteris Koukoulopoulos (DNV), Stefanos Fragkos (Allied Shipbroking), and Carola Yannouli, General Manager of OCEANKING.

Technology Provider Perspective on Decarbonization

Carola Yannouli brought the perspective of a technology provider to the discussion, emphasizing that technologies aimed at reducing fuel consumption are essential, not only to meet decarbonization targets but also to help shipowners maintain profitability.

One major challenge in the past has been the lack of transparent, verified performance data, which created uncertainty in building a strong business case for decarbonization technologies. This is now changing, as leading technology providers and pioneering shipowners are openly sharing validated operational data, encouraging wider adoption. Additionally, a growing suite of tools is becoming available to help shipowners evaluate various options and develop commercially viable decarbonization strategies.

While transitioning to cleaner technologies involves costs, the potential for increased vessel value through fuel savings, regulatory compliance, and growing market demand is significant.

Proven Technologies Delivering Results

Several decarbonization technologies are already proving their effectiveness through real-world applications and independent validation:

• WASP (Wind-Assisted Ship Propulsion) adoption currently stands at around 0.2%, with 52 vessels installed and 97 more on order.
•  High-Efficiency Propellers, in combination with Energy Saving Devices (ESDs), have less than 2% adoption but are seeing accelerated installations in both newbuild and retrofit vessels over the past two years.

Examples of validated technology performance:

Efficiency Propeller (Stone Marine NPT and Cap Fin) + Preswirl ESD
In the Neptune Hellas PCTC (11,200 DWT), operating on the UK-Germany route, a Stone Marine New Profile Technology (NPT) propeller, a Stone Marine Cap Fin, and a pre-swirl ESD were installed. She demonstrated a notable 6% reduction in power demand at 16 knots service speed, increasing to 7% at higher speeds. This technology offers an attractive payback period of approximately 1.5 years.

WASP Technology

• Ville de Bordeaux
  Operated by Louis Dreyfus Armateurs and chartered by Airbus, this vessel runs between Northern Europe and the US, equipped with three 22-meter eSAIL® systems by bound4blue. A third-party assessment by Bureau Veritas confirmed annual fuel savings of 568 metric tons, with peak daily savings reaching 5.4 metric tons. Assuming a fuel price of $600 per ton, the payback time is estimated at 5 years without Fuel EU regulations and 3.5 years when those regulations are applied.
• Bow Olympus
  Owned by Odfjell, operating on the Antwerp to Houston route, the Bow Olympus is fitted with four 22-meter eSAIL® units. Across varying wind conditions, it achieves average daily fuel savings of 5 metric tons. The estimated payback period is 3.5 years without Fuel EU and less than 2 years with Fuel EU.
• Kamsarmax Vessels
  Operating routes between the EU, US, and China (with 50% of voyages within the EU), these vessels are equipped with three 24-meter eSAIL® systems. Payback periods range between 3.4 and 5 years, with a net present value (NPV) of $15-18 million and an internal rate of return (IRR) of 26-32%.

Increased Vessel Value Through Decarbonization

Fuel savings from decarbonization technologies provide not only operational cost reductions but also enhance vessel value. When combined with resale premiums for regulatory-compliant vessels, the overall financial benefit becomes even more attractive.

According to Clarkson Research, vessels equipped with green technologies offer:

• Lower operational costs
• Competitive advantages in regulatory and charter compliance
• Higher asset valuations and resale multiples
• Stronger Environmental, Social, and Governance (ESG) appeal and better access to green financing

For example, Clarkson data indicate a resale premium ranging from 10% to 15% for a 5-year-old Capesize vessel trading 270 days per year.

Conclusion

With regulatory frameworks increasingly directing the industry towards decarbonization, numerous onboard technologies have demonstrated their value. Supported by validated data and a growing set of analytical tools, shipowners now have the resources to confidently develop sustainable decarbonization strategies that maintain vessel competitiveness well into the future.