THE SEA FREIGHT SECTOR?

The International Maritime Organisation demands the sea freight industry is running on clean energy by 2050 but how will it achieve this, and what will be the cost?

WRITTEN BY: SEAN ASHCROFT

ea shipping’s bid to implement its programme of carbon-cutting measures will be pivotal to the global bid to be net zero by 2050.

The shipping sector powers the global economy, being involved in an estimated 90% of all trade. Estimates from the International Chamber of Shipping indicate that around 11bn tons of goods are transported by ships each year –from raw materials to finished products.

Global sea shipping also accounts for roughly 3% of total global carbon emissions. These emissions, if unchecked, could rise by as much as half again by 2050.

Sea freight companies realise that, if the sector is to hit its carbon targets, then zero-emission fuels and vessels will need to start being deployed at scale over the coming decade.

But as all sectors are finding, the move to zero-emission fuels is expensive. Clean fuels could increase the total cost of vessel ownership by between 40-60%, depending on the route.

Sea freight emissions must be halved by 2050

Yet cost must not be allowed to stand in the way of progress, which is why the International Maritime Organization (IMO) –a specialised agency of the United Nations responsible for regulating shipping – has mandated emission reductions of 50% for all vessels by 2050. A number of countries, including Japan, the UK and the US, have also set similar net-zero shipping targets.

Because ships have a 20- to 25-year operating life, it means that zero-emission programs must be implemented at pace over the next decade. With the clock ticking, there are many challenges ahead.

Alex Hersham is CEO of Zencargo, a digital freight forwarder and logistics provider.

Asked what the IMO regulations mean for carriers and supply chain executives in the immediate future, Hersham says carriers “will keep a close eye on what ships are compliant”, and that they will also “analyse which older ships can be scrapped if there is no ROI in making them compliant”.