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Trafigura highlights five ways to decarbonise shipping today

Firm recommends a number of immediate actions that can be taken to reduce the environmental impact of shipping including the use of bio bunker fuels and slow-steaming.

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As the world develops large-scale solutions to decarbonise this hard-to-abate sector, commodity trading firm Trafigura highlights a number of immediate actions that can be taken to reduce the environmental impact of shipping:

As one of the world’s largest charterers of tankers, we recognise the importance of supporting the decarbonisation of shipping.   

To that end, we recently ordered four gas carriers capable of running on low-carbon ammonia. We expect to take delivery of the first vessel in the second half of 2027. 

While we continue to advocate for the implementation of a carbon levy and a ‘feebate’ system to drive long-term decarbonisation in shipping, we also recognise the significance of reducing carbon emissions today given that the industry is responsible for around three percent of global greenhouse gas emissions (GHGs). 

It is all the more important because the current disruption to global trade from ships not being able to use the Red Sea is leading to much longer voyages and a dramatic increase in emissions.

2024 trafigura five things we can do today to decarbonise shipping keyfigures

We estimate an extra 200,000 barrels of fuel oil will be consumed by oil tankers alone this year as they are diverted around the Cape of Good Hope. This equates to a 4.5% increase in annual emissions from oil tankers alone.

When container ships and other vessels are considered we think an additional 500,000 barrels of fuel will be consumed by the shipping industry this year because of the disruptions.

Like the time value of money – one of the fundamental concepts of finance –it is also helpful to consider the time value of GHG emissions.

A tonne of CO₂ reduced today is worth more than a tonne of CO₂ reduced in the future.

That’s because it is the cumulative concentration of GHGs in the atmosphere that drives long-term climate change. So, the more we can do now, the better it is for the environment.

The good news is that there are numerous actions we can implement quickly to reduce emissions from shipping.

These include:

2024 trafigura decarbonising shipping infographic

Biofuels

biofuels

One option is the use of biofuels. There are several types of biofuels on the market including biodiesel, also known as fatty acid methyl esters (FAME). This is produced from vegetable oil, animal fats or used cooking oils through a process known as transesterification. Although there are feedstock constraints, biofuels are attractive because they can be used with virtually no retrofitting to vessels and infrastructure.

They can also be blended with traditional marine fuels such as very low sulphur fuel oil (VLSFO), to achieve emissions reduction. B30 – a blend of 30% FAME and 70% VLSFO – is expected to be a popular choice and is set to play a significant role in the near term, while the industry transitions to low or zero carbon fuel sources. Trafigura already supplies B30 through our bunkering joint-venture TFG Marine and we are set to become a major producer of biodiesel via our recent purchase of Greenergy, supplier and distributor of transportation fuels and biofuels.

Energy efficiency

energy efficiency

Technical measures such as silicone hull coatings, wake equalising ducts (WED), ultrasonic propeller antifouling technology, and continuous underwater hull cleaning and propeller polishing are another way to quickly reduce emissions.

Indeed, we have already retrofitted a number of our owned vessels with silicon hull coatings and WED.

Slow-steaming

slow steaming ed

One of the fastest and most cost-effective ways to reduce CO₂ emission is slow-steaming – the practice of operating ships at lower speeds. By travelling more slowly, vessels consume less fuel, which not only reduces operational costs but also reduces GHG emissions.

To be sure, slow-steaming is not an option open to everyone – some vessels are not designed to move slowly while others may need to pick up speed to compensate for lost time if disruptions have forced them to take longer routes. Moreover, by significantly reducing the speed of the fleet, more ships are needed to cover demand. But even when the additional emissions from building and operating new ships are taken into consideration, slow-steaming still leads to CO₂ savings.

According to Transport & Environment, a non-government organisation focused on decarbonising transport in the EU, reducing fleet speeds by an average of 10% leads to overall CO₂ savings of 19%. 

Note: Trafigura’s full article on decarbonising shipping can be viewed here.

 

Photo credit: Trafigura
Published: 15 August, 2024

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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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Alternative Fuels

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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