MLB705: Strategic Maritime Management & Decarbonization

Assessment 2: Strategic Technical Report (Case Study)

• Module Code: MLB705
• Module Title: Sustainable Shipping and Marine Environmental Protection
• Assessment Title: Assessment 2 – Decarbonization Transition Strategy
• Weighting: 60%
• Word Limit: 2500 words (+/- 10%)
• Due Date: Week 12, Friday by 23:59 AWST
• Submission Method: Turnitin via Blackboard

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1. Assessment Context

The International Maritime Organization (IMO) has revised its GHG Strategy (2023), targeting net-zero GHG emissions by or around 2050. Consequently, shipping companies face immense pressure to transition from heavy fuel oil (HFO) to alternative energy sources such as LNG, methanol, ammonia, or hydrogen. This transition involves complex trade-offs between capital expenditure (CAPEX), operational expenditure (OPEX), regulatory compliance (CII and EEXI), and safety risks.

You are acting as a Senior Fleet Superintendent for a mid-sized shipping company operating a fleet of 15 Panamax bulk carriers. The Board of Directors requires a technical report evaluating the viability of retrofitting the current fleet versus commissioning new builds to meet 2030 targets.

2. Task Description

Develop a 2500-word Strategic Technical Report that critically evaluates the operational and financial viability of transitioning the fleet to Dual-Fuel Methanol propulsion.

Your report must address the following specific components:

1. Regulatory Impact Analysis: Analyze how the IMO’s Carbon Intensity Indicator (CII) and the EU Emissions Trading System (EU ETS) will financially impact the current HFO-fueled fleet over the next five years if no action is taken.
2. Technical & Operational Evaluation: Critically assess the feasibility of Dual-Fuel Methanol engines. Consider bunkering availability, energy density differences compared to HFO, and crew training requirements.
3. Economic Assessment: Conduct a comparative analysis of the projected Total Cost of Ownership (TCO) between maintaining the status quo (paying penalties/carbon taxes) and the proposed retrofit/new-build strategy.
4. Risk Management: Identify three major safety or supply chain risks associated with methanol bunkering and propose mitigation strategies based on the IGF Code.

3. Formatting and Submission Guidelines

• Structure: Use standard report format: Executive Summary, Table of Contents, Introduction, Main Body (with sub-headings), Conclusion, Recommendations, References.
• Referencing: You must use Harvard style referencing. A minimum of 15 credible academic and industry sources (e.g., IMO reports, Class Society guidelines, peer-reviewed journals) is required.
• Font/Spacing: Arial or Times New Roman, 12pt, 1.5 line spacing.
• Appendices: Calculations and large data tables should be placed in appendices and are not included in the word count.

4. Grading Rubric (Marking Criteria)

Criteria	Fail (<50%)	Pass (50-59%)	Credit/Distinction (60-79%)	High Distinction (80%+)
Critical Analysis of Regulations (25%)	Little to no understanding of IMO/EU regulations.	Basic description of regulations without application to the specific fleet.	Good analysis of regulations with relevant application to the case study.	Sophisticated critique of regulatory frameworks and precise financial quantification of their impact.
Technical Feasibility (25%)	Inaccurate technical data regarding fuel properties or engine types.	General discussion of methanol but lacks specific operational depth.	Detailed evaluation of technical challenges (bunkering, storage).	Expert-level assessment of thermodynamic and logistical implications of the fuel switch.
Economic & Risk Evaluation (30%)	No cost analysis or irrelevant risk factors.	Superficial cost discussion. Risks are generic (e.g., “fire”).	Solid TCO analysis and identification of specific safety risks.	Comprehensive financial modeling and nuanced risk mitigation strategies referencing specific codes (IGF).
Structure & Academic Integrity (20%)	Poor organization. Referencing errors.	Standard structure. frequent referencing errors.	Clear structure. Consistent Harvard referencing.	Professional industry-standard formatting. Flawless referencing and synthesis of sources.

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5.

The implementation of the EU Emissions Trading System (EU ETS) creates a direct linear correlation between fuel consumption and operational costs, necessitating a radical shift in fleet propulsion strategies. While heavy fuel oil (HFO) remains the baseline for energy density, its carbon factor ensures that Panamax vessels will face escalating penalties that erode voyage margins by approximately 15% annually starting in 2026. Transitioning to green methanol offers a viable pathway for compliance, primarily due to its ability to reduce SOx and NOx emissions significantly while offering a pathway to carbon neutrality via e-methanol. However, operators must account for the lower volumetric energy density of methanol, which requires approximately 2.4 times the tank volume of HFO to achieve the same nautical range, potentially reducing cargo capacity on retrofitted vessels. As highlighted by DNV (2024), the availability of green methanol infrastructure in key bunkering hubs like Singapore and Rotterdam remains the critical bottleneck for widespread adoption. Therefore, a phased retrofit strategy focusing first on vessels operating on the Asia-Europe trade lane is the most risk-averse approach to managing the CAPEX intensity of this transition.

6. Recommended Learning Resources

• DNV (2024) Maritime Forecast to 2050: Energy Transition Outlook. Hovik: DNV GL. Available at: https://www.dnv.com/maritime/publications/maritime-forecast-to-2050/ [Accessed 25 January 2026].
• International Maritime Organization (IMO) (2023) 2023 IMO Strategy on Reduction of GHG Emissions from Ships. Resolution MEPC.377(80). London: IMO.
• Lindstad, E., Lagemann, B., Rialland, A., Gamlem, G.M. and Valland, A. (2021) ‘Reduction of maritime GHG emissions and the potential role of E-fuels’, Transportation Research Part D: Transport and Environment, 101, p.103075. https://doi.org/10.1016/j.trd.2021.103075
• Psaraftis, H.N. and Kontovas, C.A. (2020) ‘Decarbonization of maritime transport: Is there a light at the end of the tunnel?’, Maritime Economics & Logistics, 23(2), pp.237–282. https://doi.org/10.1057/s41278-020-00170-w
• UNCTAD (2023) Review of Maritime Transport 2023. Geneva: United Nations. Available at: https://unctad.org/publication/review-maritime-transport-2023

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