Nautilus Labs, a technology partner pioneering the decarbonization of the ocean supply chain, today announced the launch of its new offering, Green Charter. Green Charter uses machine learning-based data streams to implement new legal frameworks within charter party agreements and establishes Nautilus as a trusted, independent, shared source of truth between ship owners and charterers to improve transparency and collaboration. As the foundation of commercial relationships, it will revolutionize incentive structures between counterparties and put the industry on the path to profitable decarbonization.
Legacy charter party agreements are outdated, rigid commercial structures that have remained unchanged over generations, despite quantum leaps in technology. These terms foster misaligned incentives, hinder collaboration, impede efficiency, and create a zero-sum relationship – with financial penalties such as performance claims as the foundation of commercial relationships. Regulations like the Carbon Intensity Indicator (CII) and the EU Emissions Trading System (EU ETS) have only made it more urgent for the shipping industry to address these inefficiencies across the market.
Nautilus’s Green Charter transforms legacy charter party agreements by introducing a greener legal framework and unlocking commercial efficiency. As an industry leader in high-frequency data modelling, Nautilus Labs builds machine learning-based virtual replicas of physical ships, known as Digital Twins, to simulate vessel performance and operational outcomes with a high degree of accuracy. Leveraging these Digital Twins as a single source of truth, Green Charter generates dynamic optimization recommendations, performance reports, and alerts that are shared to drive collaborative outcomes. The technology will be used to implement new commercial clauses that ensure every action achieves peak efficiency across fleets for increased profitability and reduced emissions for both sides of the charter party – unlocking more dynamic speeds, better vessel performance, and ultimately just-in-time arrival.
Ocean supply chain
“It is time to rethink the frameworks that underpin the owner-charterer dynamic,” says Matt Heider (pictured), CEO, of Nautilus Labs. “Green Charter is set to transform the relationship between owners and charterers by establishing a foundation of trust based on data. Traditionally, Charter Party agreements have been adversarial, lacking positive incentives for maximizing joint outcomes. With sensor data as an unbiased source of truth, Green Charter facilitates effective collaboration and alignment among industry leaders, leading to improved performance and accelerated progress towards Net Zero.”
Nautilus Labs is currently working with a number of global maritime companies to reduce their carbon emissions and improve commercial efficiency. The firm lists clients such as TotalEnergies, Eastern Pacific Shipping, BHP, XT Shipping, Gunvor Group, Emirates Shipping Line, Peter Döhle, Log-In Logistica, Diamond Gas International, ICL, Ionic Shipping, and SMT Shipping among others.