Eco-design ships : an industry game-changer or just hype?

Abstract

This thesis examines the on going discussion whether new Eco-design vessels are an industry game-changer or just hype. The empirical results show that the new Eco-design vessel gains the highest net present value (NPV) if both the Eco- and the Standard vessel steam equally and both vessels are priced at market levels. The Standard vessel is however the favourable vessel if its greater speed range is taken into account. Thus, higher vessel revenue by conducting more voyages when good markets exist. Medium Range (MR) Eco- new buildings were in 2012/2013 reported booked at-/or lower than shipyards break-even. Pricing the Eco-vessel as reported, whereas the Standard vessel still is priced at current market level, results in highest NPV to the Eco-design even if the Standard vessel steams as historical. New Eco-design vessels are therefore not industry game-changers where investment should be determined by the price of the vessel, not the design of it.