- Industry leaders predict a significant shift toward alternative fuels between 2030 and 2040, driven by tighter emissions regulations.
- Companies such as Maersk, MOL, and Tata NYK Shipping are adapting strategies with dual-fuel ships, LNG, methanol, and wind-assisted propulsion, while preparing for the adoption of green fuels.
- Despite geopolitical volatility, decarbonisation remains a strategic priority for global shipping companies under IMO targets.
At the APPEC conference in Singapore, shipping executives highlighted that the industry’s transition to low-carbon fuels will remain measured until the end of this decade. Trade volatility and geopolitical uncertainty continue to delay large-scale adoption, but the foundation is being laid for more decisive changes in the 2030s.“Between 2030 and 2040, I think this is where we’re going to see the real kind of volume shift to low carbon fuels,” said Emma Mazhari, CEO of Maersk Oil Trading.
Regulatory Drivers and Market Shifts
Mazhari pointed to regulations such as the European emissions trading scheme and new maritime fuel standards as critical enablers of the fuel transition. “We can already see now when we bunker in Europe, there is increased supply of low carbon fuel … so there’s definitely a lot of change coming,” she said.Reflecting this outlook, Maersk has ended investments in single-fuel vessels. Instead, all new assets must be dual-fuel, providing the flexibility to adapt and ensuring long-term returns.
Japan’s MOL Focus: Proven Fuels and Wind Power
Takeshi Hashimoto, CEO of Mitsui O.S.K. Lines (MOL), explained that in the next five to 10 years, shipping companies will rely on proven solutions such as LNG and methanol to reduce emissions. MOL is also actively exploring wind-assisted propulsion technologies.Hashimoto noted that the transition so far has been a “stop and go” process, but stressed that green ammonia, green methanol, and biomethane will be essential for long-term decarbonisation.
India-Japan Perspective: Tata NYK Shipping
Adding to the discussion, Amitabh Panda, Managing Director at Tata NYK Shipping, emphasized that decarbonisation is both a necessity and a long-term strategy, irrespective of geopolitical shifts.
“Decarbonisation as a necessity and a strategy for shipowners will be there despite whatever we are hearing from the White House,” Panda said. However, he admitted that capital allocation is a challenge amid geopolitical uncertainty: “We are not very sure when and how much to invest, so the capital allocation becomes an issue.”
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Source: Reuters
