Eastern Pacific bans coal as cargo on its managed fleet
Singapore-based shipping company Eastern Pacific Shipping (EPS) has decided to ban coal shipments on its commercially managed bulkers to support the energy transition.
The company said it has not carried coal as cargo on its commercially managed dry bulk fleet since April 2020.
In January 2022, EPS officially implemented a No Coal Cargo Policy.
“By officially implementing a No Coal Cargo Policy, EPS hopes to play a small role in making the commodity no longer economically viable, therefore increasing the demand for greener options,” according to Eastern Pacific Shipping.
“EPS’ No Coal Cargo Policy also aims to be a message to the maritime industry that decarbonisation isn’t exclusive to how we move ships – what we move also matters.”
The 2021 United Nations Climate Change Conference, also known as COP26, saw 197 nations come together to work towards reducing greenhouse gas (GHG) emissions in an effort to combat global climate change. COP26 resulted in the Glasgow Climate Pact, which calls on the world to act now to limit the rise in global temperature in accordance with 2015’s Paris Agreement.
The pact is the first agreement that specifically targets the phasing down of coal, which is regarded as the most significant contributor to climate change. Phasing down coal usage will significantly lower Co2 emissions as the world transitions to cleaner energy solutions.
With the latest decision, EPS wants to make its own contribution to the global initiative.
The company is focused on supporting the shipping industry’s energy transition by reducing CO2 and GHG emissions by 50% well before IMO 2050. Eastern Pacific Shipping’s alternative marine fuel programme incorporates LNG, LPG, ethane and biofuels to significantly reduce its carbon footprint right now, while the company explores and develops methanol and ammonia solutions among others.
In 2021, the company became one of six founding members of the Global Centre of Maritime Decarbonisation, a collaborative nonprofit organisation that aims to help the industry eliminate GHG emissions.
What is more, EPS partnered with Singapore’s Nanyang Technological University for an Ammonia Bunker Study.
In addition, it signed a memorandum of understanding (MOU) with counterparties to develop methanol and ammonia as marine fuels by retrofitting select conventional vessels in its tanker fleet and by building new ships with methanol and ammonia compatible engines.
EPS to add more than 50 newbuilds in the next three years
In 2021, EPS expanded its fleet to over 19 million dwt under management by closing 50 asset deals across its three core segments of containerships, dry bulk, and tanker vessels. These deals included newbuilds for charters as well as vessel acquisitions in the secondhand market.
EPS continued to take delivery of dual-fuel and efficient conventional newbuild vessels in 2021. Today, 62 of EPS’ 192 vessels are dual-fueled ships powered by an alternative marine fuel.
It expects over 50 more in the next three years.
“These ships will play a crucial role in lowering our carbon footprint together with efficiency improvements for our legacy tonnage during the same time frame,” the company noted.