Energy efficient operation –what matters - …

1 dnv gl 2015 SAFER, SMARTER, GREENERDNV GL 2015 Energy efficient operation what mattersNor-Shipping 2015 Oslo June 4th, 2015 MARITIMEE nergy Management Study 2015 June 4th, 20151 dnv gl 2015 The 2015 Energy Management studyJune 4th, 20152 Energy efficient operation - what matters what matters to make operation Energy efficient ? what worked well? Where did we struggle? what are the success factors? what are the plans going forward?ObjectivesParticipants 80 shipping companies Headquartered in 24 countries 51 are ship managers, 43 are owners and 19 are operators All major vessels segments covered well: Above 30 each in container, tanker, bulker About 10 each in offshore, MPV and cruiseDNV GL 2015 Energy efficiency is important for various reasons, with direct cost impact being most important3 Energy efficient operation - what mattersTake away Most respondents name two or three reasons why Energy efficiency is important for them, nobody feels unaffected.

2 Cost is the key driver for efficiency, followed by environmental footprint and charter : How does Energy efficiency impact your company?Source: dnv gl Shipping AdvisoryJune 4th, 2015N = 80 , multiple answers possibleImpacts costsImpacts charter rates80%40%58%35%Is "mandatory" due toclients requirementsImportant to ensureutilization of vesselsDoes not impactmy company0%41%Impacts our eco footprintDNV GL 2015 Ambition levels for Energy saving targets are low4 Energy efficient operation - what mattersTake away Share of companies with target 0% decreased from 44% in 2013 to still high 28% in 2015. Just about one third of respondents aims for 5% Energy saving or more. Average ambition fairly stable at : what type of quantitative Energy targets, in % of fuel reduction, have you defined?

3 Source: dnv gl Shipping AdvisoryJune 4th, 201528% 15%1% - - - - = xx , multiple answers possible201532%3%7%18%27%14%2014201344%1 %6%20%17%13% GL 2015 Organizational anchoring of Energy management seems weak in many shipping companies5 Energy efficient operation - what mattersTake away Not even a third of all shipping companies has a dedicated Energy manager (or team). Most companies have assigned the task to everybody , which oftentimes means actually nobody .Q23: Who has the key responsibility within your organization for Energy management?Source: dnv gl Shipping AdvisoryJune 4th, 2015N = 8019%9%9%A selected Superintendent18%All Superintendents18%No dedicated person29% Energy ManagerOtherEvery Captain/Chief EngineerDNV GL 2015 Many simple measures have been addressed yet, but awareness on for 2015 indicates that implementation is challenging6 Energy efficient operation - what mattersTake away 9 typical Energy savings measures have been implemented by more than 50% of respondents, most of the being operational measures.

4 Awareness shows nearly lowest implementation so far but is planned as no. 1 for : what are the Energy saving measures that : dnv gl Shipping AdvisoryJune 4th, 2015N = 80 , multiple answers possible26%Performance monitoring and reportingVoyage planning optimizationAdvanced weather routing79%9%73%25%Speed pattern optimization59%19%14%54%Engine performance optimizationTrim & draft optimizationEngine optimizationHull and propeller cleaningSlow steamingHull coating85%16%Engine room system optimizationEstablishment of Energy responsiblePort OptimizationPropulsion retrofittingAwareness and/or incentivesHull retrofittingShore power68%24%20%69%61%54%24%44%14%41%28%30 %28%23%15%19%13%35%20%33%14%31%16%.. implemented in your planned to be implement in 2015 dnv gl 2015 Besides lack of financial resources capabilities, behavior and time seem to be key challenges for implementation7 Energy efficient operation - what mattersTake away Lacking financial resources are the key challenge for technical/retrofitting measures.

5 Lacking capabilities and buy-in of crew and office staff are the key challenges for most operational and managerial measures. Q13: what challenges have you encountered when implementing Energy saving measures?Source: dnv gl Shipping AdvisoryJune 4th, 2015N = xx , multiple answers possibleLack of time for implementationResistance to change by crew/office staff35%26%23%13%9%39%40%Education of staff/lack of expertise40%Lack of financial resources46%Alignment with existing processes/proceduresTopics with higher priorityLack of clear implementation guidelinesLack of management supportOtherDNV GL 2015 Shipping companies define implementation of performance management and behavioral change as targets for 20158 Energy efficient operation - what mattersTake away More than half of companies with qualitative targets want to implement performance management in 2015.

6 One third of companies wants to foster awareness and capabilities for behavioral changeQ31: what other (qualitative) targets did you define? Source: dnv gl Shipping AdvisoryJune 4th, 2015N = 30 , multiple answers possibleMeasure implementation(retrofit)7%13%Awareness, capabilities and behaviorPerformance management(equipment and culture)33%Measure implementation(voyage performance)53%Other environmental targets7%Measure implementation(vessel performance)Management system7%20% dnv gl 2015 SummaryJune 4th, 20159 Energy efficient operation - what matters Cost impact is the key driver for Energy efficiency followed by environmental footprint and positioning on the charter market Ambition levels moderate 2015 still 28% have no quantitative savings target, just 31% aim for 5% or more Unclear responsibilities just 29% have a dedicated Energy manager, most others assigned Energy efficiency to everybody (.)

7 Actually nobody) Common measures well-known measures with little investment prevail: slow steaming, hull and propeller cleaning, voyage planning Implementation is people business besides lack of resources (financing, time), lacking capabilities and resistance to change are the main hurdles Important enablers 53% plan to strengthen performance management, 33% want to foster awareness capabilities and behavior Full study will be published end of June sign in to get a copy! dnv gl 2015 SAFER, SMARTER, efficient operation what mattersEnergy Management Study 201510Dr. Jan-Henrik H (0) 40 - 36149 - 8770 Global Head of Shipping AdvisoryJune 4th, 2015 dnv gl 2015 dnv gl Shipping Advisory at a glanceJune 4th, 201511 Energy efficient operation - what mattersShipsExpertise 150 years of experience 13,000 vessels in class Leading R&D Strong position in all vessel segments Presence 300 offices in 100 countries 4,500 colleagues at the heart of shipping every dayShippingManagementProfessionals Line managers of shipping companies Experienced manage-ment consultantsShipping Advisory a unique GL 2015 Shipping Advisory strong local presence in a global network12 Energy efficient operation - what mattersJune 4th, 20159 hubs 50 professionalsDNV GL 2015If you face some of these challenges.

8 June 4th, 201513 Energy efficient operation - what matters How can I anchor Energy efficient operation in my organization and really save money? How should I measure and manage Energy performance? what technical levers do we have to increase Energy efficiency of our vessels during newbuilding and in retrofitting? Energy efficiencyFleet managementBusiness decisionsTechnology and fuel selection How is my fleet management s technical, operational and financial performance? How is my OPEX performance and what can I do to reduce OPEX while maintaining quality ? what can I learn from industry best practice to increase availability, asset performance and to reduce costs? How should we adapt organization, governance and processes to meet our growth strategy?

9 what are the trends and drivers in profitable niche markets? what can we learn from other shipping clusters? How can we most efficiently achieve compliance? How can I be cost efficient and emission regulation compliant? Which ballast water treatment system suits best for my ship? How can we save fuel and emissions by AIS ship traffic analysis? How will authorities benefit from AIS based ship traffic analyses? dnv gl Advisory might be your 4th, 201514 Energy efficient newbuildingsFleet retrofit screeningEnergy efficient operationsEnergy Efficiency ExcellenceEnergy compliance1 Fleet ManagementExcellence2 Maritime BusinessExcellence3 Environmental Technology and Alternative Fuels3 Energy efficient operation - what mattersFleet management benchmarkISRS7 Alpha assessmentBusiness intelligence data reviewOPEX benchmarkEmission compliance strategiesAssessments of novel technologiesFuel selection: LNG, scrubber to map emissions & fuelMaritime industry analysisBusiness improvementRegulations & complianc