When it comes to Wind Propulsion and Commercial Shipping – Small is indeed Beautiful!

Gavin Allwright,
Secretary General of the International Windship Association

The development of the wind propulsion segment in general over the last couple of years has been one of an upsurge in interest and engagement, especially with the deployment of wind-assist systems on larger vessels where it can be argued the vast majority of cargo is transported and the lion’s share of emissions are generated. However, that isn’t the whole story, and the small vessel sector holds great potential for moving large amounts of cargo and making a significant contribution to both lowering emissions from our trading activities at sea but also reducing land based emissions by getting closer to the farm gate/dinner plate, first and last mile impacts of moving goods by truck. Small vessel activity is also vital on certain routes and in vast maritime regions, such as small island/large ocean developing states etc., thus reducing fuel dependency adds significant levels of resilience to these areas.

If we are serious about delivering a robust, clean and profitable fleet fit for the 2030’s and beyond, then expanding and incentivising the small vessel segment is an important element. On a more personal note, I am particularly delighted to be making a small contribution to this publication as the development of a small wind-powered vessel network was the theme of my Master’s degree thesis over a decade ago too.

The definition of the small vessel segment is a challenge in itself: does this cover vessels below 1000 GT, under 400 GT or below mandatory SOLAS requirements of 23m and 300GT?. For the purpose of this publication the editors haven’t been too prescriptive and the publication also doesn’t presume to function as a definitive ‘guide’ to the sector, but rather a collection of thought provoking essays, interviews, survey results and musings that I hope will help to catalyze further discussion and study of this segment and will grow as an annual publication into an important resource in it’s own right. As with all pioneering developments that also build on centuries of tradition, there is a whole spectrum of strong opinions, differing approaches, business structures and operational plans in play, varied vessel applications and geographical emphasis. However, as we plot these there is also a collective imperative too, one where ‘proving that wind works’ in a 21st Century setting is of paramount concern. If we are serious about taking this segment forward and delivering on the potential then a clearer understanding of what works, what doesn’t and the continued barriers confronting vessel operators, obstacles for cargo owners to come onboard, perceptions and pinch points when it comes to ports and harbors or the challenges that seafarers have in accessing training and securing gainful employment are all vital components.

It is clearly not enough to prove ‘wind works’ on a technological basis: we know that it does, especially at a small vessel level. What we need to do is to answer a myriad of other questions, and these are just a handful of the bigger picture ones:

• Are our vessels and business models robust enough only for certain routes or can they be applied across the board?
• Are regulations fit for purpose when commercial sail cargo and passenger services are starting to be scaled?
• Are the schedules, services and prices offered robust and competitive enough to attract sufficient levels of cargo and/or passengers to sustain the growth of the sector?
• Do ports recognise and are then able to adapt to the specific needs of wind propelled commercial craft?
• Can the segment sustain adequate wage structures and turn a profit without resorting to volunteer crew and trainees?
• Will these wages and conditions be enough to attract a well-trained and motivated workforce both in developed and lesser developed regions? Will that training be widely available and accessible?

Over the years, I have been particularly interested in how the expansion of a small wind propulsion vessel network carrying cargo and passengers can impact lesser developed regions, especially small island/large ocean developing states. We do of course still have limited fleets and pockets of traditional vessel activity from the dhows still in operation in the Indian ocean, a small number of Makassar and Pinisi schooners plying the waters of the Indonesian archipelago, along with a scattering of outrigger boats in the Pacific and traditional rigged fishing vessels in other areas. However, the potential in once again reinvigorating and expanding these fleets, co-designing new vessels and trade networks and bringing newly designed and modern vessels into the mix is an exciting prospect.

Where are we currently on this journey? On top of these already mentioned surviving indigenous sail fleets, there are a dozen or so traditional sail cargo vessels operating mainly in the Atlantic and North Sea regions along, with the SV Kwai operating in the Pacific for example. As we will see from the numerous articles in this publication, there are a growing number of projects, and over the past year we have seen the launch or preparations for the launch of modern purpose-built ships including;

1. 1. Grain de Sail 2 – 52m, 350dwt [North Atlantic]
2. 2. Juren Ae – 48m, 290dwt [Pacific / Marshall Islands]
3. 3. Artemis and Anemos (delivery summer 2024) – 81m, 1,000dwt [North/South Atlantic]
4. 4. Lo Entropy (refitting 2024) – 24m, 100dwt [North Sea/Baltic]

How can small vessels be competitive in the current maritime trading system? One pathway in developed markets is to offer a premium service that is priced accordingly but offers ESG and marketing benefits. Another pathway services a very specific route that is not well serviced by conventional shipping due to high costs, long waiting times or inconvenient logistics. However, in my opinion the widespread scaling of these activities requires three key overarching developments.

Firstly, the market price of both conventional fuel and new alternatives have to reflect their true cost (pollutants, full logistic costs, removal of subsidies etc.) and the long-awaited carbon pricing will go some way to balancing that. Secondly, the need for a large enough number of small wind propelled vessels that create a fleet that can deliver a sustainable, flexible, efficient and integrated service handling transhipments and offering a joined up low emissions service. Finally, cargo owners need to step up to the plate, as we know ‘cargo is king’ and the offer of substantial long-term cargo contracts that enable shipowners to invest in growing the fleet and subsequently lowering costs and improving services will facilitate the virtuous cycle required and we are starting to see increased interest in this field.

The Pacific region is an important case in point. Capital is scarce to build vessels as many routes are transporting lower value products or are servicing communities that can’t offer guarantees that are acceptable to standard commercial financial institutions. The current use of costly conventional fuel on these maritime routes therefore soaks up the very financial resources that could be deployed to build a wind powered fleet through government subsidies for those routes. We see very high fuel costs in the Pacific islands and the need to pay for that fuel on international markets paid for in foreign currency multiply those costs further. When this is coupled with vast distances and relatively low income from servicing those routes, utilizing a free energy source makes a lot of sense, however this requires positioning the capital to build the fleet. There are of course many other benefits that this region gains from a wind-powered fleet, all of which have been well researched by our colleagues at the Micronesian Centre for Sustainable Transport based in the Marshall Islands, these include but are not restricted to;

• Costs – lowering fuel costs once ships are built and delivered, including the reduction of the need for ongoing operational subsidies.
• Resilience – ships that can operate outside of fuel supply and price volatility shocks. This is especially pertinent for periods following natural (and man-made) disasters including typhoons, flooding, earthquakes, volcanic activity etc.
• Ownership – if ownership of vessels is based on a cooperative or shared ownership model this adds assets to the community and enhances the feedback of benefits through wages and profits being recycled into those communities.
• Revitalisation – all ships require maintenance, refitting and building, some of which can be dealt with in the region, thus spurring investment into larger islands/ports. Enhanced and profitable trading systems enable specialization and generate both capacity and investment funds. Reliable transport links give dependable access to markets and in turn can spur investment in agriculture and the development of value-added activities from island communities.
• Employment – all of the above activities generate local employment, increase training activities and also generate aspirational opportunities for individuals and communities.
• New Routes – while servicing existing routes is an important issue, there is also the opportunity to open or reopen routes that are economically non viable when fuel cost is the deciding factor.

During COP28, in Dubai in November 2023, the International Windship Association (IWSA) called for an ‘SDG17 Delivery’ fleet of small wind powered vessels for LDCs and SIDS and we will continue to champion that cause. Click here to read the open letter to delegates: https://www.wind-ship.org/wp-content/uploads/2023/12/IWSA-Letter_COP28.pdf

The future of the small wind propulsion vessel segment is a bright one if the capital can be secured, enough demonstrator vessels are in operation proving the model to cargo owners and the network can be scaled sufficiently to harness the appropriate economies of scale in the next few years. Many stakeholders are now joining the voyage with E.F. Schumacher’s resounding call that ‘Small is Beautiful’.