The global shipping industry, which contributes significantly to greenhouse gas emissions, is under pressure to reduce its environmental impact. The International Maritime Organization (IMO) has set ambitious targets to reduce emissions by 40% by 2030 and 70% by 2040, with the ultimate goal of achieving net-zero emissions by 2050, reports Thomas Net.
Benefits of Sustainable Shipping
The main benefits associated with sustainable shipping include:
- Reduced GHG Emissions: The shipping industry is largely dependent on three types of marine fuel; Heavy Fuel Oil (HFO), Marine Gas Oil (LSFO), and Marine Diesel Oil (MDO). Currently, as many as 90% of commercial vessels are powered by these bunker fuels, which are highly polluting energy sources. Electrification is one solution, as is the use of green fuels, energy-efficient technologies, and optimized shipping routes.
- Regulatory Compliance: In keeping with IMO standards, governments are imposing stricter measures to address pollution in the shipping sector. Companies already investing in green initiatives will get ahead of formal legislation, saving themselves time, money, and stress in the long term.
- Brand Reputation: Investments in sustainable shipping enable companies to attract and retain environmentally conscious employees and customers, ultimately driving increased profit. Research shows that 32% of consumers prioritize sustainability when selecting a delivery option, ranking it more highly than factors such as cost and speed.
Challenges of Sustainable Shipping
Despite growing pressure for the shipping industry to champion the fight against climate change, ongoing challenges are stalling its progress:
- Costly Green Transition Process: The long-term financial benefits of sustainable shipping are well documented, but, unfortunately, the costs associated with a green transition outprice many small and medium-sized enterprises (SMEs). Electrifying a ship, for example, is far more difficult and costly than electrifying a road vehicle, not to mention that commercial ships have a much longer lifespan. No shipping company would gladly discard an existing fleet, regardless of its carbon footprint.
- Limited EV Range: Insufficient range has long been a barrier to the mass adoption of electric road vehicles. Though in recent years, enhanced battery technology has improved vehicle performance and driven increased demand, it is far more difficult to increase the range of cargo and freight ships, which are heavier than road vehicles and travel much longer distances.
- Sustainable Fuel Shortages: Sustainable fuels present a cost-effective alternative to fleet electrification. Around 10% of commercial vessels are powered by Liquefied Natural Gas (LNG), a cleaner fossil fuel. However, although LNG fuel produces less carbon dioxide than other marine fuels, it is not considered a long-term sustainability solution. Sustainable methanol, meanwhile, is a potentially viable green fuel, but it is currently in very short supply and unlikely to meet the shipping industry’s demands for at least another decade.
The Future of Sustainable Shipping
Increasingly focused on sustainability, the commercial shipping industry is making promising advances via fleet electrification, investments in green fuels, enhanced ship design, and optimization technology.
Electrification
A recent study from Berkeley Lab found that by excluding 1% of commercial shipping trips—specifically, those with the longest journey times—batteries could be made two-thirds smaller, improving the viability of electrification in the shipping sector.
Recent investments certainly reflect a growing optimism surrounding fleet electrification. Earlier this year, for example, EST-Floattech, a developer of maritime battery systems, received €4 million from the Energy Transition Fund Rotterdam.
Meanwhile, DFDS, a Danish shipping and logistics company, announced a substantial €1 billion investment in battery electric vessels, honoring its commitment to decarbonizing maritime traffic in the English Channel.
Green Fuels
Responsible for 1% of all carbon emissions generated by the transport and logistics sector, shipping giant Maersk faces enormous pressure to improve its sustainability efforts, but it has responded with decisive and substantial action.
Committed to decarbonizing its shipping operations by 2040, Maersk is spearheading the transition to green fuels. Some of its fleet is powered by second-generation bio-diesel, which is marketed to customers under the Maersk ECO Delivery label, a fossil fuel substitute service helping customers reduce their GHG emissions from shipping and transportation. In 2023, its use of green fuels saved over 683,000 tonnes of GHG emissions, equalling 3% of its global ocean transport volume.
Vessel Design
Of course, green fuel and electrification are not the only methods for decarbonizing the shipping industry.
The America’s Cup yacht race, sometimes described as Formula One racing on the sea, is a hotbed for advancements in sustainable sailing, with some of the most promising innovations being applied in the commercial shipping industry.
In fact, former British team captain and five-time Olympic medal winner Ben Ainslie founded BAR Technologies, a boutique marine consulting firm, after the 2017 America Cup for this very purpose.
The firm’s WindWings technology adapted techniques used in the America Cup to develop commercially viable solid sales. The sales enable a vessel to maintain speed while powering its engine down, resulting in reduced fuel consumption. In 2023, Singapore-based shipping company Berge Bulk launched a 300-meter bulk carrier fitted with four WindWings. The U.S. agribusiness giant Cargill also invested in WindWings, fitting the product on its 230-meter carriers. After six months, the company reported that, in optimum conditions, the sails were saving 11 metric tons of fuel a day, representing a 37% emissions saving.
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Source: Thomasnet
