Reducing Charter Party Claims and Excess Emissions
Supporting Emission Reduction Targets
Traditional charter party agreements hamper collaborative relationships between owners and charterers, contribute to inefficient fuel consumption and make it harder for the industry to comply with emissions regulations.
Green Charter allows for the creation of dynamic clauses within a charter party contract, overcoming the limitations of static performance tables and clauses.
These dynamic clauses allow owners and operators to achieve optimal technical and operational performance across their fleet, improving efficiency and cutting carbon emissions.
Reducing Charter Party Claims
Green Charter helps address a lack of transparency that is often found in traditional charter party agreements by giving both sides access to the same data and predictive simulations of vessel performance.
For charterers, this transparency helps derisk multi-millions contracts, reduces the overhead of claims and improves operational decision making. For owners, it allows them to safely realize the true value of their vessels without putting themselves at risk of claims from charterers.
And for both sides, increased transparency helps support more collaborative relationships, resulting in better commercial outcomes.
Dynamic Charter Party Clauses
Green Charter uses Nautilus Labs’ Digital Twin vessel models to create a digital simulation of the chartered vessel. This model provides an independent, single source of truth for the vessel’s performance.
This helps support transparent collaboration, providing both parties with technical and operational performance reports, email alerts, and voyage simulations.
The Digital Twin models allow for a range of dynamic clauses to be used within a charter party, eliminating the need for static performance tables and reducing claims.
How Green Charter Works
Green Charter Insights
What is Green Charter?
Traditional charter party agreements hamper collaborative relationships between owners and charterers, making it harder for these partnerships to achieve their full commercial potential. At the same time, the lack of collaboration results in inefficient fuel consumption, increasing the difficulty of hitting carbon emissions targets.
We’re using machine learning and vessel sensor data to update traditional charter parties agreements and remove the barriers to collaboration between owners and charterers. This helps limit fuel consumption, cut emissions, reduce charter party claims and ultimately improve commercial outcomes for owners and charterers.
How does Green Charter work?
Our new approach to charter party frameworks uses high-frequency data from the vessel and machine learning to create a digital twin simulation of that vessel. The real-time performance of the vessel can then be objectively monitored against this simulation. The data in the digital twin can be seen by both sides of the charter party, and ensures improved collaboration and transparency.
This digital twin forms the basis for a range of innovative dynamic clauses that can be built into a charter party to overcome the limitations of static charter party clauses. This means clauses can be added that eliminate speed restrictions, add dynamic performance baselines, or introduce collaborative management of CII scores.
What clauses can be added to a charter party through Green Charter?
Green Charter allows a range of dynamic clauses to be added to charter party frameworks, including:
Collaborative CII Management: Management of both operational and technical
performance of the vessel to maintain peak efficiency and agreed-upon CII scores
- Dynamic Time Charter Fouling Clauses: Clauses that warrant corrective actions once thresholds have been crossed relative to Nautilus’s Digital Twin, ensuring both parties are proactively managing the technical performance of the vessel to reduce excess emissions and fuel consumption
- Dynamic (Performance) Time Charter Clauses: Clauses that establish a dynamic speed and consumption curve based on Nautilus’s Digital Twin based on actual performance instead of a static description of vessel performance. These clauses unlock dynamic speed ranges, allowing to assess performance beyond certain speeds, and updated performance profiles that reflect true vessel performance
- Just-in-Time Arrival Clauses: Clauses that enable concepts such as Virtual Arrival with dynamic speeds to arrive at port at an agreed-upon date and time based on Green
- Dynamic Speed Voyage Charter Clauses: Clauses that eliminate speed restrictions of Voyage Charters and unlock optimal speeds based on Nautilus’s Digital Twins and Green Charter simulations
A New Approach to Charter Parties
Whether you’re an owner or a charterer, Green Charter can help you improve your commercial relationships, reduce fuel consumption and cut emissions. To learn what we can do for your charter party agreements, get in touch with us below.