Study: Incentive gaps hindering decarbonization of Swedish short sea dry bulk fleet

August 7, 2025, by Aida Čučuk

Swedish cargo owners and charterers are committed to greener practices, but a lack of regulatory and economic incentives for smaller tonnage is hindering progress, according to a new study by Norway-based classification society DNV and the Responsible Shipping Initiative (RSI), an alliance of Swedish dry bulk charterers.

It is understood that the study, ‘Decarbonization of the short sea dry bulk fleet,’ was co-funded by the Swedish Transport Administration, with the project divided into three work packages (WP).

As outlined, WP1 established emissions baselines for each RSI member using automatic identification system (AIS)-based modeling to identify key cargo segments for green fleet renewal based on transported volumes and emissions.

WP2 examined the costs of introducing green ships and calculated the “green premium” for vessels powered by e-methanol compared to marine gas oil (MGO), DNV said, adding that measures such as government support and improved transport efficiency were evaluated to reduce costs, and workshops were held with shipowners and fuel providers.

The final package, WP3, reportedly used a fleet renewal model to assess the pace of renewal required to meet climate targets, comparing it with alternative strategies such as biofuel blending and operational efficiency improvements.

Sebastian Tamm, Chairman of RSI and Manager Logistics Development at EFO, commented: “Through RSI, we’ve long promoted responsible shipping, focusing on working conditions, health, and safety. During the COVID lockdown, we shifted our focus to decarbonization. However, our typical short-term Contracts of Affreightment limit shipowners’ ability to invest in radically different vessels. This study highlights the need to turn long-term decarbonization goals into actionable short-term targets for contracting. This will help with planning, investment, and compliance with new regulations. We appreciate DNV’s insights and support in developing this study with us.”

Hannes von Knorring, Principal Consultant and Global Cargo Owner Segment Lead at DNV Maritime, said: “A major challenge in adopting low-emission fuels is the uncertainty shipowners face around long term costs and market demands. Cargo owners may also lack insights into fuel options and their impact on supply chain emissions. While the smaller vessels used by RSI members are not yet regulated they must report from this year on emissions to the EU, making it easier for cargo owners to collect data and set actionable targets. Through this project, RSI’s mission is to share knowledge, set standards, and find common ground for future shipping needs, and we are pleased to support their efforts.”