In this article from the latest issue of Dry Bulk Magazine titled "The smarter way to simplify compliance", Tor Svanes, CEO and Jacob Clausen, Performance Director, NAVTOR, discuss how smart shipping solutions can help shipping companies navigate compliance, unlock benefits and face the future with confidence.
The ripple effect from FuelEU Maritime’s arrival is likely to grow into a wave of change, redefining future regulations and business strategies as the industry voyages towards sustainability. Here two senior executives from NAVTOR - Tor Svanes, CEO and Jacob Clausen, Performance Director – discuss how smart shipping solutions can help shipping companies navigate compliance, unlock benefits and face the future with confidence.
Tor Svanes, NAVTOR CEO and Jacob Clausen, Performance Director, share their perspectives on the crucial changes ahead for the maritime industry.
FuelEU Maritime - a new chapter
Readers currently reeling from the challenge, complexity and potential costs of future compliance with FuelEU Maritime need to take a deep breath, right about now.
“FuelEU Maritime is just the start,” cautions Tor Svanes.
The vastly experienced CEO and Founder of NAVTOR, which has e-Navigation, monitoring and performance products and services on over 18,000 vessels in the world fleet, says that the regulation “sets a standard others will follow.”
He firmly believes that, once the EU measure has demonstrated its efficacy, organisations such as IMO will emulate the move in an effort to work towards ambitious climate goals.
“It’s highly likely we’ll see a ‘FuelGlobal Maritime’ within the next five years,” he opines, “so owners and operators need to prepare now - not just for Europe, but globally.”
Performance Director Jacob Clausen agrees, underscoring how FuelEU Maritime’s framework exemplifies a new breed of regulations that are accelerating in speed and impact: “It introduces a whole new approach to measuring and reducing emissions. The key challenge for the industry is its ‘well-to-wake’ requirements, which demand comprehensive tracking of fuel consumption and emissions throughout the entire fuel lifecycle. This level of detail is unprecedented.”
As is the cost of non-compliance.
Svanes points out that many shipping companies may look at potential penalty costs and believe them to be “manageable”. But, he argues, they could quickly spiral out of control if shipping companies fail to take proactive steps.
“Take a Supramax bulk carrier sailing from New York to Rotterdam. In 2025, FuelEU non-compliance penalties could cost around USD 5,000 for a single voyage. By 2030, that figure jumps to nearly USD 18,000, and by 2050, if no changes are made to fuel and energy use, it could exceed USD 250,000. These penalties will double for vessels sailing exclusively within Europe.
“The financial implications are huge, making informed preparation absolutely essential.”
Getting Smart
Both NAVTOR executives stress that the complexity of compliance, with FuelEU and other “sophisticated” environmental regulations (such as EU ETS and CII), calls for a paradigm shift in how data is collected, managed, and utilized.
As Clausen emphasizes, “spreadsheets have had their day!”
Tor Svanes notes: “The foundations for confident, cost-effective compliance are, without a doubt, digital.”
Clausen, nods, expanding: “The scale of data and calculations required opens up huge possibilities for missteps, omissions and human error, with each wrong move potentially setting off a domino effect of FuelEU pain.
“So integrated, intelligent solutions capable of automating data collection and calculation - from a multitude of different sources, without human intervention – deliver real benefits, enabling operators to accurately track fuel sources, calculate GHG intensity, and evaluate compliance options in real-time.”
Svanes says the best smart shipping technology is tailored to make such tricky tasks simple, using the automated data collection and reporting functionality of NavFleet as an example.
He goes further noting: “Leading solutions should also offer added value functions such as in-system validation, secondary validation from domain experts for optimal quality control, automatic dispatch to designated verifiers, and integration with, for example, digital logbooks and performance monitoring tools.
“The more you can work towards a single ‘point of truth’ for data, the more transparency and control you can unlock across your fleets. This is essential for regulatory reporting, but also strategic decision-making.”
From challenge to opportunity
Which takes us to changing mindsets – or how to approach FuelEU as a mandated carrot rather than a stick.
The experts say that the new approach to data has the power to give shipowners a far greater understanding of both the business and environmental efficiency of their fleets, providing a solid platform for optimizing performance and costs.
“You can unlock insights that go far beyond compliance,” states Tor Svanes. “You gain the ability to continually benchmark current performance and then drive fuel efficiency, reduce emissions and enhance operations.
“In a competitive industry, these are game changers.”
The incentive to reduce GHG intensity can also accelerate adoption of green technology, such as wind assisted propulsion systems, and greater use of shore power. Clausen says these are “meaningful steps on the pathway to sustainability” delivering immediate reward, with less energy consumption, emissions and cost, while reducing reliance on less readily available, and more expensive, alternative fuels.
“An in-depth, data driven understanding of how your fleet performs in relation to the FuelEU GHG intensity baseline can be a powerful catalyst for smarter strategic decisions,” he says.
Potential that NavFleet is designed to deliver on.
Clausen explains: “Our latest update introduces advanced visualizations and interactive dashboards, clearly showing fleet overviews, individual vessels, fuel consumption (both within and outside the EU), GHG intensity KPIs, emissions in relation to EU voyage statements, penalty costs, and much more, in addition to EU ETS information. Reports can be produced at the touch of a button, with detailed evidence to create understanding of GHG Intensity balance and penalty costs at the end of the voyage. This is helpful for passing on penalty costs to charterers, when necessary, as well as enabling effective management of allowance banking, pooling, and borrowing mechanisms. All essential factors in achieving both cost effective compliance and commercial advantage.”
Three simple steps to compliance
Each expert is keen to finish with some ‘top tips’ to help readers navigate FuelEU Maritime.
Clausen begins by stating “you can only plan your voyage when you know where you’re starting from,” adding: “So understanding where your fleet currently stands in relation to the 91.16 gCO2e/MJ regulation baseline is absolutely essential.
“An advanced smart shipping solution, as we’ve been discussing, will give you that foundation… and allow you to keep building your environmental performance into the future.”
He adds that all shipping businesses should “begin to assess compliance options now to maximise options”, taking into consideration everything from changing fuel mixes (to adopt more low carbon fuels), to adding wind and shore power, or, when necessary paying non-compliance penalties as a stopgap when alternative options to reduce GHG intensity are too costly or unavailable. Making use of the regulation’s pooling, banking and borrowing abilities are also highlighted as also a key factor by Clausen, who emphasizes this can be much more cost efficient than paying penalties.
“Every vessel, fleet and owner faces their own individual considerations, so there’s no one size fits all solution here. The key thing is understanding the best options for you.”
And, Tor Svanes, reiterates, that needs to start now.
“The submission date for compliance with FuelEU Maritime comes into force on 30 April 2026 when 2025’s figures are digested,” he explains. “That may create the illusion that there’s plenty of time. There’s not. Delaying decisions to the last minute will leave operators vulnerable to higher costs and fewer options, while planning ahead creates insight and opportunity.
“Those with surplus emissions reductions can consider banking or pooling their allowances, while those anticipating compliance challenges must plan ahead for alternatives such as biofuels and shore power, They can also borrow, as well as taking advantage of pooled, allowances. A proactive strategy not only reduces risk, but positions your fleet for long-term sustainability – both commercially and environmentally.”
Launchpad for success
Svanes and Clausen agree that shipping companies may be able to achieve compliance without using cutting-edge digital solutions, but that the amount of work, resources and time to do so raises the simple question of ‘why would they bother?’
“NAVTOR, and other leading companies in the field, are working very hard to make compliance as easy as possible for our customers,” Tor Svanes says.
While Clausen goes back to the ‘added value argument’, stating: “The most forward-thinking owners and operators will realise that, although challenging, regulations like FuelEU can be a launchpad for knowing, and running, their businesses better than ever before.”
He continues: “Understanding where efficiencies can be made, emissions cut, performance optimised, and costs managed can edge companies ahead of their competitors, while also building trust and reputation with stakeholders. It’s impossible to fight these regulations, but you can embrace them and, with smarter shipping solutions, really take advantage. Getting off to the best start now, in 2025, will put you in pole position for future success.”
About the authors:
Tor A. Svanes, Founder and CEO of NAVTOR, is a maritime technology pioneer with nearly six decades of experience. After leading C-Map Norway, he founded NAVTOR in 2011 to simplify and enhance shipping. Today, NAVTOR is a global leader in e-Navigation and performance, with Svanes driving innovation, sustainability and smart shipping solutions.
Jacob Clausen is the Performance Director and Managing Director of NAVTOR Denmark. For the past 15 years, he has been working on optimising the design and operation of ships to enhance efficiency and reduce GHGs. He has also worked on projects covering topics such as performance optimisation, innovation management, big data, and decision-support models.
Read more insightful industry articles in the Dry Bulk Magazine 2025 spring issue - Digital version
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