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BAR Technologies highlights charterparty barrier to scaling wind propulsion
John Cooper, CEO of BAR Technologies

BAR Technologies highlights charterparty barrier to scaling wind propulsion

The global shipping industry’s slow uptake of wind propulsion is no longer a technology issue, but a commercial one, according to new analysis from BAR Technologies.


While proven wind-assisted propulsion systems like WindWings® are now delivering measurable fuel and emissions savings in operation, adoption across the fleet remains uneven. BAR Technologies argues that the root cause lies in the way value is structured between shipowners and charterers under existing charterparty agreements.


“The industry doesn’t have a technology problem; it has a contract problem,” said John Cooper, CEO of BAR Technologies. “We can’t keep waiting for perfect charterparties to appear. The industry needs to make this work with what’s in place today, because those who do will be in a far stronger position than those who don’t.”


Shipping’s long-established commercial model separates ownership from operation. Owners invest in vessels and onboard technologies, while charterers typically control fuel consumption and voyage decisions. In time charter arrangements, this creates a disconnect between owners' funds and wind propulsion systems, but charterers often realise the immediate fuel and emissions benefits.


This “split incentive” is increasingly recognised across the industry as a key barrier to scaling wind technologies.The challenge is not without precedent. The introduction of scrubbers created a similar dynamic, with owners funding installation and charterers sharing in the benefit. However, shorter, clearer payback periods enabled faster commercial alignment. With wind propulsion, longer and less predictable returns are complicating the agreement.


Legal and contractual frameworks are now under increasing scrutiny. Industry experts note that wind propulsion introduces new variables into traditional charterparty clauses, from performance measurement to operational constraints. Without clear definitions of value and responsibility, stakeholders risk disputes rather than shared benefits.


At the same time, market participants are beginning to explore new commercial approaches. These include baseline performance agreements, shared-savings mechanisms, and performance-linked charter structures. However, most remain bespoke and negotiated on a case-by-case basis, limiting scalability.


Industry bodies are also responding. BIMCO is currently developing an Energy Saving Device Retrofit Addendum designed to help owners and charterers agree on how to allocate costs, risks and benefits when installing efficiency technologies during a charter period.


While the commercial case is still evolving, external pressures are only increasing. Regulation is tightening, fuel costs remain volatile, and expectations around emissions performance continue to rise.


Established wind propulsion technologies like WindWings® are already demonstrating fuel and emissions savings of 5–20% in real-world conditions, meaning delays in adoption are leaving measurable reductions on the table today.


Wind propulsion is now linked not only to fuel savings but also to regulatory exposure, including FuelEU Maritime and the EU Emissions Trading System, increasing its strategic importance.


BAR Technologies said the industry cannot afford to wait for perfect contractual solutions. “The question is no longer whether wind propulsion works, that has already been established,” Cooper added. “It is whether the industry can afford not to make it work commercially, now, not later. Because every delay means avoidable fuel burn and emissions that could be reduced today.”

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