AI tools are key to ‘urgent action’ to meet IMO climate goals

Yarden Gross, CEO and co-founder of maritime technology startup Orca AI, advocates for the rapid but responsible deployment of smart, cost-effective digital tools to address climate challenges in the shipping industry. AI solutions leverage machine learning and data insights and are an important frontline for reducing fuel consumption and emissions.

“AI solutions are critical to extracting every last bit of efficiency from the existing fleet in the face of increasing pressure to decarbonize,” Gross said in response to the 2024 annual disclosure report of the global transparency initiative Sea Cargo Charter (SCC), published on June 13.

The SCC, which represents 20% of global bulk transport, aims to integrate climate considerations into chartering decisions and increase transparency on emissions. The 2024 report shows a significant gap between current emissions and the IMO’s net-zero strategy for 2050. The shipping industry will miss its climate target by 17% in 2023, equivalent to 165 million tonnes of CO2e.

“Currently, bulk and general cargo transport and tankers generate around 400 million tonnes of CO2 emissions. With global trade expected to quadruple by 2050, emissions will soar without urgent action,” the SCC wrote, stressing the importance of route optimisation and other strategies to improve vessel performance.

Yarden Gross, Co-founder and CEO, Orca AI (Photo: Orca AI)

“According to our own figures, global commercial shipping could reduce its CO2 emissions by 47 million tons per year if it used AI in maritime shipping,” Gross said. Referring to Orca AI’s own computer vision solution, he says improved situational awareness and real-time alerts to support early decisions by crews can significantly reduce the need for sharp maneuvers and route deviations due to near-encounters with high-risk marine targets such as ships, buoys and marine mammals.

“Sharp maneuvers and route deviations significantly increase fuel consumption,” Gross said. “And we estimate that reducing them could save ships 38.2 million nautical miles per year, saving an average of $100,000 in fuel costs per ship. In addition, digital AI monitoring could reduce the number of near-collisions on the open sea by 33%.”

He highlights the data collected for MMSL as an example of what customers could achieve: On a bulk carrier equipped with Orca AI, the shipping arm of Japan’s Marubeni Corp saw a 67 percent reduction in near misses and a 42 percent increase in average minimum separation distance in the open sea for three consecutive quarters, resulting in an estimated annual fuel savings of $86,000.

Although AI is still in its early stages, Gross believes it could have a huge impact on shipping’s digital transformation. “With continued transparency and targeted innovation using AI tools, I fully support the SCC’s optimism that we can shape a more sustainable future,” he concluded.
Source: Orca AI