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EU overreach threatens to sink shipping’s decarbonisation efforts, warns ICS

‘We need urgent action but action must result in decarbonisation rather than a pure money grab,’ states Guy Platten, secretary general of ICS.

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The International Chamber of Shipping (ICS) on Wednesday (14 July) released a statement following the European Commission’s proposed extension of the EU’s Emissions Trading System (ETS) to cover the international shipping sector:

Guy Platten, secretary general of ICS, commented: “Other than as an ideological revenue raising exercise, which will greatly upset the EU’s trading partners, it’s difficult to see what extending the EU ETS to shipping will achieve towards reducing CO2, particularly as the proposal only covers about 7.5% of shipping’s global emissions. This could seriously put back climate negotiations for the remaining 92.5% of shipping emissions.”

“We know that non-EU States like Japan have already expressed concern over this diplomatic overreach and imposition of a unilateral and extra-territorial tax on trade. It cannot be equitable for non-EU shipping companies to be forced to pay billions of euros to support EU economic recovery plans, particularly under a scheme that undermines CO2 negotiations.”

“It is clear from how such schemes work in other sectors that there will be unintended consequences from the imposition of such a proposal. There are simpler and more effective options – such as a global fuel levy – but these require political leadership rather than political expediency. Another key issue for ICS is that who pays for the cost of fuel should be the same person that ultimately pays the cost of carbon allowances.

“The failure to include investment in research and development in the proposals, at a time when the IEA and the new US administration are highlighting that emission reduction will only be possible with the development of technologies that do not currently exist, is disappointing. To indicate one thing at the beginning of the process and then to withdraw it to pay for a post covid recovery sends a clear message to industry that the EU is not truly serious about decarbonising global shipping. This also sends a message beyond shipping that political and investment risk is high in Europe.  This only goes to show why we need the 5 billion USD IMO Maritime Research Fund.

“Volatility in the price of allowances makes this approach far more complicated to pass on the cost to the company that pays for the fuel, especially for the majority of smaller shipping companies which make up the majority of shipping. This proposal is overly bureaucratic. The industry’s overwhelming preference is for a global levy which will incentivise real emission reductions rather than red tape.

“It is clear that there will need to be an independent impact assessment of these proposals as soon as possible, to ensure that we are not sleepwalking towards unmanageable costs for global trade.

“ICS will along with industry partners will be reviewing the latest draft proposals in detail and will continue to highlight these concerns in discussions with the EU Council and the European Parliament. We need urgent action but action must result in decarbonisation rather than a pure money grab.”

 

Photo credit: Ernesto Velázquez on Unsplash
Source: International Chamber of Shipping
Published: 15 July, 2021

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LNG Bunkering

CMA CGM takes delivery of fourth LNG-fuelled containership

Naming ceremony and delivery of vessel, organised at HD Hyundai Mipo in Ulsan, South Korea, marked entry of the fourth vessel in a series of ten specially designed for Northern Europe feeder services.

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CMA CGM takes delivery of fourth LNG-fuelled containership

French shipping giant on Wednesday (19 June) said it celebrated the naming ceremony and delivery of its fourth LNG-fuelled container ship, CMA CGM Tivoli.

Organised at HD Hyundai Mipo in Ulsan, South Korea, on 16 June, the event marked the official entry of the fourth vessel in a series of ten specially designed for Northern Europe feeder services.

“Featuring optimised features for 45-foot containers, increased capacity for refrigerated containers, and innovative forward accommodation to enhance cargo loading and aerodynamics, CMA CGM Tivoli distinguishes itself with a high ‘length to beam" ratio to maximise hydrodynamic efficiency,” the firm said in a social media post. 

“She departed the shipyard on June 15th, 2024, bound for Busan. We wish fair winds and smooth seas to Captain Artur Dumbrov and his crew.” 

 

Photo credit: CMA CGM
Published: 21 June, 2024

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Methanol

Mitsubishi Shipbuilding receives orders for Japan’s first methanol-fuelled RoRo cargo ship duo

Two ships will be built at the Enoura Plant of MHI’s Shimonoseki Shipyard & Machinery Works in Yamaguchi Prefecture, with scheduled completion and delivery by the end of fiscal 2027.

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Mitsubishi Shipbuilding receives orders for Japan's first methanol-fuelled RoRo cargo ship duo

Mitsubishi Shipbuilding Co., Ltd., a part of Mitsubishi Heavy Industries (MHI) Group, on Wednesday (19 June) said it has received orders from Toyofuji Shipping and Fukuju Shipping for Japan's first methanol-fueled roll-on/roll-off (RORO) cargo ships. 

The two ships will be built at the Enoura Plant of MHI's Shimonoseki Shipyard & Machinery Works in Yamaguchi Prefecture, with scheduled completion and delivery by the end of fiscal 2027.

The ships will be approximately 169.9 meters in overall length and 30.2 meters in breadth, with 15,750 gross tonnage, and loading capacity for around 2,300 passenger vehicles.

A windscreen at the bow and a vertical stem are used to reduce propulsion resistance, while fuel efficiency is improved by employing MHI's proprietary energy-saving system technology combing high-efficiency propellers and high-performance rudders with reduced resistance. 

The main engine is a high-performance dual-fuel engine that can use both methanol and A heavy fuel oil, reducing CO2 emissions by more than 10% compared to ships with the same hull and powered by fuel oil, contributing to a reduced environmental impact. 

In the future, the use of green methanol(2) may lead to further reduction in CO2 emissions, including throughout the lifecycle of the fuel. Methanol-fueled RORO ships have already entered into service as ocean-going vessels around the world, but this is the first construction of coastal vessels for service in Japan.

In addition, the significant increase in vehicle loading capacity and transport capacity per voyage compared to conventional vessels will provide greater leeway in the ship allocation schedule, securing more holiday and rest time for the crew, thereby contributing to working style reforms.

Mitsubishi Shipbuilding, to address the growing needs from the modal shift in marine transport against the backdrop of CO2 reductions in land transportation, labor shortages, and working style reforms, will continue to work with its business partners to provide solutions for a range of societal issues by building ferries and RORO vessels with excellent fuel efficiency and environmental performance that contribute to stable navigation for customers.

 

Photo credit: Mitsubishi Shipbuilding
Published: 20 June, 2024

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Methanol

Maersk and Nike to christen methanol-fuelled boxship at Port of Los Angeles in August

Powered by methanol for its maiden voyage and capable of carrying more than 16,000 containers, the vessel will get its new name at a private ceremony at Port of Los Angeles Outer Harbor.

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Maersk

A.P. Moller – Maersk (Maersk) on Wednesday (19 June) said it will be christening one of the world’s first methanol-enabled vessels when it arrives in Los Angeles this August.

The firm invited the public to go aboard the container ship in Los Angeles.

Powered by methanol for its maiden voyage and capable of carrying more than 16,000 containers (TEU), the vessel will get its new name at a private ceremony at the Port of Los Angeles Outer Harbor on Tuesday, August 27. 

Maersk’s CEO Vincent Clerc will be on hand, alongside special guest speakers from Nike and leading state and local officials. Nike is a partner in the name-giving event.

“Nike is committed to protecting the future of sport and we leverage science-based targets to guide us through our Move to Zero journey,” said Venkatesh Alagirisamy, Nike Chief Supply Chain Officer.

“Operating one of the largest supply chains in the world, we have a responsibility to advance the innovation and use of more sustainable methods that get us closer to zero carbon and zero waste. By working with suppliers like Maersk, who share our commitment to sustainability, we are scaling our use of biofuels in ocean transportation, our main first-mile delivery channel.”

“This event is not only an opportunity to celebrate a remarkable engineering achievement, but the chance to highlight that we can navigate towards more sustainable supply chains if we work together,” said Charles van der Steene, Regional President for Maersk North America.

On Wednesday, August 28, Maersk invites the public to tour the 350-meter-long vessel, which will be sailing from Asia. Visitors will be able to see the Sailors’ living quarters and even stand on the bridge from where the captain controls the vessel. Public tours will require visitors register for a free ticket via an online registration site that will be activated and announced in August.

This is the fifth container vessel in Maersk’s fleet that can sail on green methanol bunker fuel.

 

Photo credit: A.P. Moller – Maersk
Published: 20 June, 2024

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