- The Carbon Emission Index (CEI) for container shipping dropped to 98.6 points in Q2 2024, down from 107.5 in Q1, marking a return to pre-2018 levels.
- While overall CEI improved, emissions remain high in trades affected by the Red Sea conflict due to longer routes and increased sailing distances.
- New, more carbon-efficient ships and easing congestion could lead to further improvements in CEI scores shortly.
Container shipping carbon emissions experienced a modest decrease in the second quarter of 2024 despite ongoing challenges, including the Red Sea conflict and longer routes around the Cape of Good Hope. The Carbon Emission Index (CEI) for global container shipping fell to 98.6 index points in Q2, an 8.3% improvement from Q1’s 107.5 points. This decline marks a return below the benchmark of 100 points, which signifies emissions per tonne of cargo have returned to levels seen at the CEI’s inception in Q1 2018, reports Xenata.
Factors behind CEI improvement
The improvement in the CEI across the top 13 global trades was driven largely by non-Red Sea-impacted routes, several of which achieved their lowest CEI scores to date. In contrast, the three major trades most affected by the Red Sea conflict—Far East to North Europe, Mediterranean, and US East Coast—saw increased emissions due to longer shipping distances and operational adjustments.
Despite reducing emissions per tonne of cargo, total CO2 emissions across the global container fleet rose due to record-high shipping demand in 2024. This increased demand has led to higher total CO2 emissions, even as emissions per cargo unit decreased.
Notably, four trades reached all-time-low CEI scores in Q2 2024. The US West Coast to Far East trade achieved the best performance with a CEI of 68.5 points, the first to score below 70. Additionally, the Far East to US West Coast trade saw a significant 14.3% reduction in emissions per tonne of cargo compared to Q2 2023.
The increase in average ship size on the Transpacific routes contributed to these improvements, as larger vessels tend to emit less carbon per tonne of cargo. Additionally, higher filling factors on these trades have alleviated some emissions pressure, despite global demand not returning to pre-pandemic levels.
In contrast, trades affected by the Red Sea conflict, such as the Far East to the Mediterranean, experienced worsened emissions scores. Longer sailing distances and smaller ships due to limited availability have exacerbated the issue, with emissions per tonne increasing substantially compared to Q1 and Q2 2023.
Looking ahead, the ongoing Red Sea conflict and its impact on sailing routes are expected to continue affecting CEI scores. However, optimism remains as new, more efficient ships enter the fleet, potentially improving CEI scores. Additionally, easing congestion in global supply chains and potential reductions in sailing speeds could further enhance emissions performance in the future.
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Source: Xeneta
