UNCTAD study: Ships speeding up from avoiding Red Sea could ‘erode’ GHG emission cuts

Ships avoiding the Suez and the Panama Canals due to Houthi attacks and seeking alternative routes, translates into longer cargo travel distances, rising costs and insurance premiums, and increasing greenhouse gas (GHG) emissions, according to a new study by the UN Conference on Trade and Development (UNCTAD) on Thursday (22 February). 

In the study, titled Navigating troubled waters: Impact to global trade of disruption of shipping routes in the Red Sea, Black Sea and Panama Canal, UNCTAD said the shipping industry had adopted reduced speeds to lower fuel costs and their carbon footprint for more than a decade. 

“However, due to the interplay of conflict and climate shocks, ships have been authorised to speed up – leading to higher fuel consumption and emissions,” it noted. 

“For instance, a Singapore-Rotterdam (Netherlands) round trip avoiding the Suez Canal/Red Sea route could result in up to 70% increase in GHG emissions.”

The organisation further explained that the disruption in the Red Sea and Suez Canal, combined with factors linked to the Panama Canal and the Black Sea, could erode the environmental gains achieved through “slow steaming”, as rerouted vessels increase speeds to cover longer distances.

This is particularly evident among container ships, where a 1% increase in speed typically leads to a 2.2% rise in fuel consumption. For example, accelerating from 14 to 16 knots increases fuel use per mile by 31%.

As a result, the longer distances caused by rerouting from the Suez Canal to the Cape of Good Hope imply a 70% increase in greenhouse gas emissions for a round trip from Singapore to Northern Europe.

Note: UNCTAD’s study can be viewed in full here. 

Photo credit: UNCTAD
Published: 26 February, 2024