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RightShip GHG Rating

RightShip GHG Rating is a commercial vessel-screening service operated by RightShip Pty Ltd, an Australian-Greek joint venture established in 2001 by mining and trading houses BHP, Rio Tinto and Cargill as a vessel safety and environmental screening tool, with the GHG rating component added in 2013. The service publishes a per-vessel A-to-G greenhouse-gas rating for approximately 12,000 ocean-going vessels worldwide, calculated using the Existing Vessel Design Index (EVDI) methodology that approximates the IMO EEDI for ships built before the EEDI’s 2013 entry into force. The rating is widely used in pre-fixture vessel selection by cargo buyers, brokers, terminals and ports: approximately 80% of global dry bulk and tanker chartering decisions are estimated to incorporate the RightShip rating, with the rating directly informing the freight premium or discount applied at fixture. Vessels rated A or B typically attract premium freight rates and preferential terminal access; vessels rated F or G typically face reduced commercial uptake and higher insurance premiums. The methodology has been updated through four major versions: v1 (2013) original EVDI-based rating; v2 (2017) integration with the IMO 2018 Initial GHG Strategy trajectory; v3 (2021) incorporation of EEXI and CII data; v4 (2023) alignment with the IMO 2023 Revised GHG Strategy’s net-zero by or around 2050 ambition. RightShip is a critical complement to the Poseidon Principles (lender side) and Sea Cargo Charter (cargo-buyer side): while those frameworks publish portfolio-level disclosures, RightShip provides the vessel-level operational tool that signatories use in their day-to-day chartering decisions. ShipCalculators.com hosts the principal computational tools: the RightShip GHG calculator implements the EVDI-based GHG rating; the EEDI attained calculator and EEXI attained calculator provide the IMO equivalents; the CII attained calculator provides the operational metric that complements the design-phase rating. A full listing is available in the calculator catalogue.

Contents

Background and history

2001 founding

RightShip (originally RightShip Pty Ltd) was established in 2001 as a joint venture between three of the world’s largest dry bulk cargo buyers: BHP Billiton (now BHP), Rio Tinto and Cargill. The founding rationale:

  • Each of the three founders had its own internal vessel-vetting team conducting pre-fixture safety and environmental due diligence on chartered vessels.
  • The three teams duplicated approximately 70% of their inspection effort.
  • A joint venture would centralise the vetting infrastructure, reduce duplication and provide a common standard.

The original RightShip service focused on:

  • Vessel safety screening (PSC inspection records, casualty history, Safety Management System maturity).
  • Vessel quality benchmarking (the Vessel Quality Index, qi, a scored ranking of operational quality).
  • Charter party clause recommendations based on the vessel’s risk profile.

The founders made RightShip available to the broader market on a subscription basis from 2003. Subscription growth was rapid: by 2010, approximately 600 cargo buyers, traders, brokers and terminals were RightShip subscribers.

2013: GHG rating addition

In 2013 RightShip added the GHG Rating as a new dimension of its vessel-vetting service. The 2013 launch coincided with:

  • The IMO EEDI entry into force on 1 January 2013, which established the design-phase carbon intensity index for new vessels.
  • The Carbon Disclosure Project (CDP) Maritime Working Group’s call for a public per-vessel GHG benchmarking service.
  • BHP, Rio Tinto and Cargill’s parallel internal commitments to incorporate GHG criteria into chartering decisions.

The 2013 RightShip GHG Rating used the Existing Vessel Design Index (EVDI) methodology, developed by RightShip’s technical team in collaboration with Det Norske Veritas (DNV) and the University of Strathclyde. The EVDI:

  • Approximates the EEDI for vessels built before 1 January 2013 (when EEDI was not formally calculated).
  • Uses standardised inputs (deadweight, design speed, installed engine power, fuel consumption per the IMO Tier I to Tier III certification).
  • Produces a g CO₂ per dwt-nautical-mile metric directly comparable to EEDI.

Versions and updates 2017 to 2024

The RightShip GHG Rating methodology has been updated through four major versions:

VersionYearKey changes
v12013Original EVDI-based A-to-G rating for the existing fleet; static (no trajectory adjustment)
v22017Trajectory adjustment aligned with the 2018 Initial IMO GHG Strategy; rating boundaries tightened annually to reflect the 50%-by-2050 trajectory
v32021Integration with EEXI and CII data from the 2021 amendments to MARPOL Annex VI; vessel rating now includes the operational CII as well as the design-phase EVDI
v42023Alignment with the 2023 Revised IMO GHG Strategy’s net-zero by or around 2050 ambition; rating boundaries tightened to reflect the 30% / 80% / 100% trajectory

A further v5 update is in development (expected 2026) to integrate the IMO Net-Zero Framework GFI standard from its 2027 entry into force.

Corporate history and ownership

The corporate history of RightShip:

  • 2001 to 2014: BHP-Rio Tinto-Cargill joint venture.
  • 2014: BHP, Rio Tinto and Cargill restructured to bring in additional minority shareholders (Olam, Glencore).
  • 2018: Acquired by Greek-based ION Group in a leveraged buyout estimated at USD ~150 million; renamed RightShip Pty Ltd under the Australian-Greek corporate structure.
  • 2022: Restructured ownership to include private equity (Permira); BHP and Rio Tinto retained minority stakes.
  • 2024: Approximately 80 staff worldwide (Melbourne HQ, Athens, Singapore, London regional offices); revenue estimated at USD ~80 million annually.

Methodology

The Existing Vessel Design Index (EVDI)

The EVDI is the operative metric for the RightShip GHG Rating. The formula:

EVDI = (P_ME × C_F × SFC) / (Capacity × V_ref)

where:

  • P_ME: main engine power (kW), typically 75% of installed MCR
  • C_F: CO₂ conversion factor for the fuel (typically 3.114 t CO₂/t for HFO, per MEPC.364(79))
  • SFC: specific fuel consumption (g/kWh), typically from the EIAPP Certificate or default
  • Capacity: deadweight (cargo ships) or gross tonnage (passenger / cruise)
  • V_ref: reference design speed at 75% MCR (knots)

The EVDI thus produces the same g CO₂ per dwt-nautical-mile units as the IMO EEDI, allowing direct comparison between a 2010 vessel (rated by EVDI) and a 2015 vessel (rated by EEDI). The RightShip GHG calculator implements the EVDI calculation; the EEDI attained calculator implements the parallel IMO EEDI.

A-to-G rating boundaries

The A-to-G boundaries are calibrated against the trajectory EVDI for each ship type and year, derived from the IMO GHG Strategy decarbonisation pathway. The 2024 v4 boundaries:

RatingEVDI ratio (actual / trajectory)Performance
A≤ 0.65Major superior
B0.65 to 0.85Superior
C0.85 to 1.00Aligned (compliant)
D1.00 to 1.20Minor inferior
E1.20 to 1.50Inferior
F1.50 to 2.00Major inferior
G> 2.00Severely inferior

The A-to-G scale is intentionally finer-grained than the IMO CII A-to-E rating, giving RightShip-using charterers more discrimination at the top and bottom of the distribution. A vessel rated A under RightShip is approximately equivalent to a vessel with attained EEDI ~35% below the IMO Required EEDI; a vessel rated G is approximately equivalent to attained EEDI 100%+ above Required.

Annual update cycle

The RightShip GHG Rating is updated continuously rather than annually:

  • New IMO DCS / EU MRV data submissions trigger a re-calculation of the operational component.
  • Vessel modifications (engine retrofit, EPL/ShaPoLi implementation, fuel switching to LNG dual-fuel) trigger a re-calculation of the design component.
  • Trajectory boundaries are updated annually (typically in July) to reflect the tightening IMO trajectory.

The continuous update cycle distinguishes RightShip from the Poseidon Principles (annual disclosure) and Sea Cargo Charter (annual disclosure).

Verification and audit

RightShip operates an internal verification team that:

  • Audits source data submitted by ship operators.
  • Cross-checks against the IMO DCS, EU MRV, Class society records, and PSC databases.
  • Issues correction notices for inaccurate submissions.
  • Maintains a dispute resolution process for ship operators contesting their rating.

The independent verification gives the RightShip rating commercial credibility as a basis for fixture decisions; the rating is admissible in BIMCO charter party arbitrations as evidence of vessel quality.

Adoption and commercial usage

Cargo buyers and traders

The principal commercial users of RightShip are:

  • Mining houses: BHP, Rio Tinto, Vale, Glencore, Anglo American, Fortescue Metals; collectively chartering approximately 600 million tonnes of dry bulk per year.
  • Trading houses: Cargill, Trafigura, Vitol, Gunvor, Mercuria, Bunge, ADM, COFCO, Olam; collectively chartering approximately 800 million tonnes of dry bulk plus 600 million tonnes of crude oil and products per year.
  • Energy companies: Shell, BP, ExxonMobil, TotalEnergies, Equinor, Phillips 66, Chevron; collectively chartering approximately 1,000 million tonnes of crude oil and products per year.
  • Steel mills and refineries: Direct chartering of Capesize / VLOC bulk carriers and VLCC tankers.

By total cargo value, approximately 80% of global dry bulk and tanker fixtures incorporate the RightShip rating in vessel selection.

Vessel screening thresholds

Most major commercial users apply specific RightShip rating thresholds:

  • BHP, Rio Tinto, Cargill (the founders): minimum C rating required for any chartered vessel; typically prefer A or B.
  • Trafigura, Vitol (energy traders): minimum C for crude oil and products tankers.
  • Shell, BP, ExxonMobil: minimum B for fleet vessels and contracted vessels; minimum C for spot fixtures.
  • Major terminals (Rotterdam, Singapore, Houston): minimum C or D for terminal access in some cases.

The threshold varies by trade route, season and commercial circumstance. Vessels below the threshold may still be chartered but at a freight discount and with additional contractual obligations (typically a hull cleaning, propeller polishing or operational improvement plan).

Insurance and ESG screening

The RightShip rating is also used by:

  • P&I clubs (protection and indemnity insurance providers): rating influences the insurance premium.
  • Hull and machinery insurers (e.g. Lloyd’s syndicates, marine reinsurers): similar.
  • ESG fund managers: rating used to assess shipping investments and shipping-exposed companies.
  • Banks (the Poseidon Principles signatories): rating used to validate the loan-portfolio CAS calculation.

Poseidon Principles (lender-side)

The Poseidon Principles and RightShip GHG Rating are complementary:

DimensionRightShip GHGPoseidon Principles
GranularityPer-vesselPer-bank-portfolio
AudienceCargo buyers, brokers, terminals, insurersShip-finance lenders
MethodologyEVDI-based; commercial proprietaryAER-based; voluntary disclosure
Update frequencyContinuousAnnual
Coverage~12,000 vessels (~80% of major fleet)~32 banks (~80% of ship finance)
CostSubscription (~USD 5k to 500k/yr per organisation)Free voluntary framework

Banks signatory to the Poseidon Principles often use the RightShip rating in their portfolio-level CAS calculation, since RightShip’s per-vessel EVDI is methodologically aligned with the AER. The two frameworks are therefore functionally integrated rather than competing.

Sea Cargo Charter (cargo-buyer-side)

Similarly, Sea Cargo Charter signatories typically use the RightShip rating in their pre-fixture vessel selection, then report the chartering pattern at the portfolio level under Sea Cargo Charter. This sequential workflow is widely cited:

  • Pre-fixture stage: RightShip rating screens candidate vessels.
  • Fixture decision: vessel selected based on rating + freight cost + commercial fit.
  • Voyage execution: actual emissions tracked.
  • Annual disclosure: Sea Cargo Charter portfolio CAS.

Other ratings

Several alternative vessel-rating services exist but with smaller adoption:

  • Inspectorate / Bureau Veritas Vessel Quality: traditional safety-quality vetting; less GHG focus.
  • Q88.com: tanker-specific vessel-information platform; integrates RightShip rating.
  • EquASS (Equity Aspects Standardised Scoring): ESG-focused rating, mostly for fleet operators.
  • MaritimeData: alternative GHG benchmarking service launched 2022; smaller market share.

RightShip remains the dominant per-vessel rating service by approximately a 5:1 margin over its closest competitor.

Critical assessment

Strengths

  • Mature methodology: 11+ years of operational use; well-validated against IMO frameworks.
  • Continuous update: real-time vessel rating reflects most recent operational data.
  • Independent: not aligned with any single shipowner or operator; commercial neutrality.
  • Wide adoption: ~80% market coverage in dry bulk and tanker sectors.
  • Direct commercial impact: rating directly affects freight rates and terminal access, providing strong incentive for operators to maintain good ratings.

Limitations

  • Commercial subscription: not free; can be costly for smaller cargo buyers (typical USD 5,000 to 50,000 per year).
  • Black box methodology: while the broad EVDI methodology is published, the specific calibration and trajectory boundaries are proprietary.
  • Trajectory-based: a vessel that doesn’t improve over time can still maintain its rating if the trajectory tightens slowly; criticism similar to Poseidon Principles.
  • Limited container ship coverage: container ships are less screened by RightShip than dry bulk and tankers, reflecting historical commercial focus.
  • Geographic concentration: dominant in Western markets (Europe, US, Singapore, Australia); less penetration in Chinese, Russian and Gulf trades.

Future direction

RightShip’s 2024 to 2025 product roadmap covers:

  • v5 methodology update integrating the IMO Net-Zero Framework GFI standard from 2027.
  • Expansion into container ship rating coverage (currently ~50%, target ~85% by 2027).
  • Improved data-quality verification through partnership with IMO DCS and EU MRV operators.
  • Possible integration with EU ETS Maritime data infrastructure.
  • Expanded coverage of LNG dual-fuel vessels with explicit methane-slip accounting.

Future outlook

By 2030 RightShip is expected to:

  • Cover ~95% of global ocean-going vessel fleet (currently ~75%).
  • Integrate with IMO Net-Zero Framework GFI and EU ETS Maritime data infrastructures.
  • Remain the dominant commercial vessel-rating service, with the closest competitors (MaritimeData, EquASS) maintaining secondary market positions.
  • Possibly become subject to consolidation with Class society operators (DNV, Lloyd’s Register, ABS), which have similar data infrastructure.

See also

References

  1. RightShip Pty Ltd. RightShip GHG Rating Methodology v.4. Melbourne / Athens, 2023.
  2. RightShip Pty Ltd. Annual Vessel Quality Report 2024. Melbourne / Athens, 2024.
  3. RightShip Pty Ltd. Existing Vessel Design Index (EVDI) Technical Specification. Melbourne / Athens, 2013, updated 2017, 2021, 2023.
  4. DNV. EVDI Methodology Validation Report. DNV Maritime, Oslo, 2014.
  5. University of Strathclyde. Naval Architecture Department Review of EVDI. Glasgow, 2013.
  6. IMO MEPC. Resolution MEPC.245(66) - 2014 Guidelines on the Method of Calculation of the Attained EEDI for New Ships. IMO, 4 April 2014.
  7. IMO MEPC. Resolution MEPC.328(76) - Amendments to MARPOL Annex VI (introducing EEXI under Regulation 25). IMO, 17 June 2021.
  8. IMO MEPC. Resolution MEPC.336(76) - 2021 Guidelines on the Operational Carbon Intensity Indicators. IMO, 17 June 2021.
  9. IMO MEPC. Resolution MEPC.377(80) - 2023 IMO Strategy on Reduction of GHG Emissions from Ships. IMO, 7 July 2023.
  10. Poseidon Principles. Methodology Document and Annual Disclosure Reports. June 2019 to 2024.
  11. Sea Cargo Charter. Methodology Document and Annual Disclosure Reports. October 2020 to 2024.
  12. ION Group. Annual Report 2024 - Maritime Subsidiaries. ION Group, Athens, 2024.

Further reading

  • RightShip. Vessel Quality Report Annual Editions. https://www.rightship.com
  • DNV. Maritime Forecast to 2050. DNV, Oslo, 2025 edition.
  • Lloyd’s Register. Vessel Vetting and Pre-Fixture Screening: A Practical Guide. Lloyd’s Register Marine, London, 2024.