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Companies Aim to Use Only Zero-Carbon Ocean Shipping by 2040

large oil tanker: Diesel fuel found in ocean near Sri Lanka oil tanker  fire, Energy News, ET EnergyWorld

Maritime shipping, the lifeblood of global trade that is usually hidden from public view, has been thrown into the headlines due to global supply chain disruptions caused by the pandemic. Long delays at ports around the world, skyrocketing freight prices, and the occasional massive ship stuck in a strategically vital canal have finally given this essential industry attention from the media and consumers, albeit not for the most positive reasons.

This unfortunate spotlight gives us an opportunity to draw awareness to important issues in the maritime industry, including its massive carbon footprint. It also offers a chance to showcase the important work being initiated today by a group of climate-leading consumer goods and retail companies that are standing up to call for faster decarbonization of ocean transportation. Not only are they calling for policymakers and others in the shipping value chain to take action, but they are also setting ambitious targets of their own. Their ambition is the uplifting part of the story. The Aspen Institute Energy and Environment Program (EEP) is honored to be a part of this historic and urgent moment.

A fire on an oil tanker raises fears of another oil spill in the Indian  Ocean

In 2020, EEP launched the Aspen Shipping Decarbonization Initiative (SDI) to address the mighty challenge of maritime shipping decarbonization. Through conversations with leaders in shipping, it became clear that there was a need to engage shipping’s customers, in particular climate-leading cargo owners, to help accelerate the pace of change. Multinational cargo owners then helped us understand the levers they can pull. These include sending demand signals for the rapid deployment of new zero-carbon shipping fuels and technologies that are in urgent need of a boost, bringing to the table their own expertise in problem-solving and scaling solutions, and advocating for policy solutions that can reduce cost and regulatory barriers to a speedy transition. But first, they told us they needed a sense of common purpose, a target around which they could start to rally.

To create a space for them to do this work, Aspen SDI began to work closely with a network of cargo owner companies to develop a new initiative we call Cargo Owners for Zero Emission Vessels or coZEV. It is a platform specifically for climate-forward cargo owners to develop concrete collaborative projects to advance zero-carbon solutions. This work puts the high ambition cargo owners’ role and interests at the center.

Today, coZEV is pleased to publicly announce its inaugural act: a first-of-its-kind ambition statement, signed by nine multinational companies, that states their intention to transition all of their ocean freight to zero-carbon shipping by 2040. Through this coZEV 2040 Ambition Statement, they define zero carbon as fuels that release no (or very little) greenhouse gases from a lifecycle perspective.

2040 may seem far away, but experts in this hard-to-abate sector know that vast new zero-carbon fuel supply chains must be built and numerous actors must come together to launch the first large scale projects—from financiers to fuel producers, ports to individual ship owners, carriers, and of course, their customers, the cargo owners whose business underpins the entire enterprise. They also know of the need for policy support, regulatory reforms, new fuel standards, updated procedures and protocols necessary to bring zero-carbon solutions to scale.

These experts also understand that the resources needed across the supply chain to enable zero-carbon shipping are an investment in our individual and collective futures, whose benefits far outweigh the costs of inaction to address climate change. And the savvy will see that there are new business opportunities to be had, and a chance for the maritime sector to support a just and equitable clean energy transition, one that protects the human rights of seafarers and creates new economic development opportunities around the globe.

Map: Visualizing Every Ship at Sea in Real-Time

And they are keenly aware that none of this work will advance on the timelines needed to avoid global climate disaster without cargo owner support. That is what makes this bold new statement so important.

Together, these companies are committing to aligning their ocean shipping with the 1.5°C goal, and are sending a critical demand signal for the adoption of zero-carbon fuels. They are helping to lead and shape a movement where sustainability-minded consumers begin to expect the goods they purchase every day to arrive at their local store or doorstep without polluting the planet. As new companies become interested in decarbonizing this part of their supply chains, they will recognize that as cargo owners, they can drive the change needed through collaboration with supply chain partners and peers. Fortunately, through coZEV, cargo owners now have a platform for creative, collaborative problem solving to which they can turn and a 2040 ambition around which to organize.

Harnessing the momentum from today will be important, so Aspen SDI is working with partners to develop a series of follow-up collaborative actions and projects right away. By creating space for companies to work together on these ideas, we can help them shape the zero-carbon shipping transition to achieve both their climate and business goals.

Projects we are developing include:

  • Cargo owner-support for the first zero-carbon maritime shipping corridors
  • New mechanisms for bringing together collective freight demand and achieve economies of scale for zero-carbon shipping
  • Harnessing cargo owner voice to support public policies that will accelerate and lower the cost of the decarbonization transition
  • Promoting new and improved tools for tracking shipping emissions data and fostering transparency
  • With a sense of optimism and a commitment to practical, action-oriented collaboration, even the hardest to abate sectors like maritime shipping can be decarbonized in line with our shared Paris Agreement goals. We find inspiration in the companies that have joined our effort today, and look forward to engaging many others in the months and years ahead.

Source: The Aspen Institute

Cathay Pacific Cargo shines in the Air Cargo World Customer Experience Survey

From our Partners

Cathay Pacific Cargo shines in the Air Cargo World Customer Experience Survey

Air Cargo World readers recognise Cathay’s performance and service in the face of challenges in 2020 Cathay Pacific Cargo’s performance in 2020 has been recognised with two industry-wide high scores thanks to the readers of air logistics industry publication Air Cargo World. The airline received the high score of 4.8 out of 5.0 points across all […]

Cathay Pacific Cargo shines in the Air Cargo World Customer Experience Survey

Cargo Damage Prevention, TT Club

The TT Club estimates that the international maritime industry incurs losses of about $6 billion each year because of incorrectly packed or documented cargo.

“That includes damage to the cargo and delays, environmental cleanup, injuries and ship damage. The point is that $6 billion is totally unnecessary. If people followed things correctly, then that $6 billion would be saved to the entire industry,” said Peregrine Storrs-Fox, the TT Club’s risk management director.

The TT Club, with a global network that includes offices in London, Hong Kong, Sydney and New Jersey, provides insurance and related risk-management services to the international transportation and logistics industry. It has been working with the Global Shippers ForumInternational Cargo Handling Coordination Association (ICHCA), World Shipping Council and Container Owners Association to push for thorough adoption of the Code of Practice for Packing of Cargo Transport Units (CTU Code), issued in 2014.

The CTU Code, which applies to packing and transport operations throughout the supply chain, was jointly developed by the International Maritime Organization (IMO), International Labor Organization (ILO) and United Nations Economic Commission for Europe (UNECE).

Peregrine Storrs-Fox is the TT Club’s risk management director. (Photo: TT Club)

“From the TT Club’s perspective, one of the frustrations despite putting out advice around lots of different cargo issues over decades now, we still find that somewhere around two-thirds of cargo damage-related claims are coming because of some sort of poor practice in terms of packing — load distribution or securing of the cargo — but also documentary things around classification, declaration of cargo, how that’s documented, how the information is passed correctly through the system between different stakeholders by way of data transfer,” Storrs-Fox said.

In the five-plus years since the CTU Code was adopted, “we haven’t actually seen a significant improvement in the incident statistics. Certainly wherever we go, we see that a lot of people are not aware of the CTU Code at all,” said London-based Storrs-Fox.

Raising awareness

Storrs-Fox said the TT Club, with the Global Shippers Forum, ICHCA, World Shipping Council and Container Owners Association, have built a cargo integrity campaign that begins with promoting awareness of the CTU Code itself.

The TT Club defines cargo integrity as the “adoption of best practices in all aspects of cargo care through the entire intermodal supply chain.”

On its website, the TT Club said cargo integrity includes:

Selection of a suitable unit for the intended commodity and journey.

  • Ensuring that the unit positioned for packing is sound and free from previous cargo residues.
  • Prevention of contamination by plants, plant products, insects or other animals.
  • Proper packing of cargo within a unit, including load distribution, and effective blocking, bracing and securing.
  • Correct classification, packaging, marking/placarding, documentation and declaration of packed goods, particularly those that are regulated (i.e., dangerous or waste).
  • Complete and transparent transmittal of all data regarding contents, enabling appropriate safe handling through the intermodal supply chain.
  • Effective methods of stowing and securing of units for transport in land, sea or air modes.

The TT Club said while the CTU Code provides “the framework for achieving cargo integrity,” further guidance is needed. 

“TT Club statistics indicate that as much as 66% of incidents related to cargo damage in the intermodal supply chain can be attributed in part to poor practice in the overall packing process, including not just load distribution and cargo securing but also the workflow from classification and documentation through to declaration and effective data transfer,” it said on its website.

Germany’s Federal Bureau of Maritime Casualty Investigation (BSU) said in February that misdeclared coconut charcoal was the most likely source of the blaze on the Yantian Express, which caught fire in the Atlantic Ocean on Jan. 3, 2019.

International Union of Marine Insurance (IUMI) Secretary-General Lars Lange told American Shipper last month that vessel fire safety “needs regulation and it needs a level playing field. Safety shouldn’t be left to individual business entities. Safety should be dealt with at a regulatory level, and that would mean in this case the IMO.”

The IUMI issued a report in October titled “Containership fires: It is time to take action.” It said that 2019 had an alarming number of container ship fires, including the Yantian Express and APL Vancouver, which suffered from a fire while en route from Shekou, China, to Singapore

Source: Freighwaves

Bubble Concept to Kickstart Cruise Ship Tourism in Sweden

Ferries and cruise ships - Visit Stockholm - The official guide

Sweden is a popular cruise destination and by restarting cruise services at Stockholm a positive message has been sent out to the struggling, pandemic hit international cruise shipping companies. The pandemic restrictions are being eased up around the world but every country, every province has its own protocol. Joakim Larsson, Planning Commissioner of the City of Stockholm explained that the relevant regulatory authorities of Stockholm, Visby, and Gothenburg collaborated and laid down joint protocols with an unambiguous code of conduct for cruise ships calls thus it became simpler for the shipping companies to adhere to policies and restart the business.

The cruise ships will be following the bubble cruise concept in Sweden. Under the bubble cruise concept, passengers will be staying in their virtual bubble, which means they will be traveling in specially chartered buses, having their pre-decided timing for visits to local tourist attractions so that the passengers do not mix with local communities. Under the bubble cruise concept, it is mandatory for passengers to test negative for covid-19.

Source: Fleetmon