In the coming months ahead of the inaugural Geneva Dry event organised by Splash, we will be sitting down with key names attending the dry bulk mega summit. In the hot seat today: Morten Løvstad, DNV’s point man for all things dry bulk.
Morten Løvstad, the business director for bulk carriers at class society DNV, one of the 40 Geneva Dry sponsors, is excited to share with delegates next year how he and his team see dry bulk ships changing for the remainder of the 2020s.
“The majority of dry bulk newbuilds in the coming years will be highly optimised for low fuel consumptions at lower speed – so-called eco speed at 10-12 knots – while still being equipped with combustion engines burning conventional fuel oil,” Løvstad says. Such vessels may with only minor adjustments also use biofuels as drop-in fuel.
“This seems to be the most cost-efficient and widespread decarbonization path in the short to medium term,” Løvstad says.
However, the DNV executive reckons some of the bigger vessels and smaller vessels in specialised or coastal trades will be powered by alternative fuels. The majority of these will continue to be LNG-based with a smattering of methanol and ammonia powered vessels.
There is rather a diminished attitude towards investment in alternative fuelled newbuilds in the dry bulk space
“Overall,” Løvstad says, “there is rather a diminished attitude towards investment in alternative fuelled newbuilds in the dry bulk space due to the high extra cost of capital, high fuel price for the alternative fuels, and the lack of a bunkering eco-system for some of these new fuels.”
However, uncertainty around fuels opens the door to technological changes in the energy efficiency space, the DNV bulker expert points out, mentioning wind-assisted propulsion systems, shaft generators, improved hull designs, and low friction paints as examples.
Much of what Løvstad is discussing will be under the microscope during the dry decarbonisation session at next year’s Geneva Dry event, the world’s premier commodity shipping summit. The session features high-profile owners and charterers and is set to be chaired by a senior official from the World Economic Forum. Delegates will be able to get an exclusive glimpse of what bulk carriers will likely look like come 2030, helping to inform investment decisions over the coming years.
Løvstad is looking forward to his Swiss visit, praising Geneva for its modern, progressive outlook.
“There are currently around 500 cargo owners located in Switzerland, and with a market share of 25%, Switzerland is the biggest commodities trading hub in the world,” Løvstad points out, adding by way of an example how some 40% of the global coal trade is brokered through Switzerland.
The coal session at Geneva Dry is shaping up as another must-attend hour of the two-day gathering. Set to be moderated by Burak Cetinok, head of research at brokers Arrow, who is widely perceived as one of shipping’s finest analysts, speakers include Peter Weernink, chairman of SwissMarine, AJ Rahman, chairman of Norvic Shipping and Steve Kunzer, the CEO of another fast-growing shipowner, Lila Global.
Taking place at the Hotel President Wilson on the shore of Lake Geneva on May 2 and 3 next year, the high-level summit is designed to get every rung of the dry bulk supply chain involved.
Panels will bring together analysts, miners, traders and shipowners to discuss where the markets are headed. Sessions include agri-commodities; iron ore; and an entire afternoon dedicated to digital.
To find out more about Geneva Dry, click here.
