IMO listens to Members of European Parliament to act to reduce shipping emissions

By Alexander Whiteman

MEPs (Members of the European Parliament) have told the International Maritime Organization there can be no exceptions or exemptions in the fight against climate change and are demanding immediate action to cut shipping emissions. In an open letter to EU member states and the IMO, MEPS from Croatia, the Netherlands, Portugal and Sweden say that despite shipping creating emissions equal to all of those created in the Netherlands, it remains the only sector not included in the European commitment to the Paris Agreement. (more…)

As IMO targets are questioned, what is the truth about shipping emissions?

By Alexander Whiteman

So what is the truth about shipping emissions?

The IMO has decided to cut 2008 levels of greenhouse gas emissions (GHGs) by at least 50 per cent by 2050 – but not all in the industry are convinced. A recent comment piece in Splash 24/7, by First International Chairman Paul Slater, questioned shipping’s role in climate change, calling the IMO’s proposed plan “fatuous, unrealistic and unnecessary”. He wrote: “The CO2 issue has been grossly overstated…It has been shown that [shipping’s] CO2 is absorbed by seawater without damaging results”. He also claimed to The Loadstar that there was no evidence that polar ice was melting. (more…)

Box lines face extra $34 billion for low-sulphur fuel if shipowners don’t install scrubbers

By Mike Wackett

Within two years it will be illegal to power a ship with fuel having more than 0.5 per cent sulphur content, unless the vessel is fitted with an exhaust clean gas system, known as a scrubber. Low-sulphur fuel oil (LSFO) – currently about $580 per tonne, is significantly more expensive than heavy fuel oil (HFO) at about $370 per tonne. However, according to a new white paper, released by Swedish financial services group SEB, fewer than 2,000 ships out of a world merchant fleet of some 60,000 – 3.3 per cent – are expected to have scrubber systems installed by January 1 2020. (more…)

CMA CGM seizes title of most profitable container line with 2017 performance

By Mike Wackett

CMA CGM recorded a net profit for 2017 of $701 million to easily outperform its peers and wrench the mantle as the industry’s most profitable global container line from Maersk Line. And the French carrier’s order of nine LNG-powered 22,000 TEU ultra-large container vessels (ULCVs), confirmed in November, is a bold step to out-think on cost competitiveness its Danish rival, currently preoccupied with its own restructuring. (more…)

Time pressure on carriers to decide on scrubbers or more expensive greener fuel

By Mike Wackett

With just over 18 months until the IMO’s 0.5 per cent sulphur cap regulations come into force, major container lines are undecided on their future fuel strategy. Come 1 January 2020, ships not powered by LNG must either use more-expensive low-sulphur fuel oil (LSFO), or be fitted with an exhaust gas cleaning system (known as scrubbers) in order to continue burning heavy fuel oil (HFO). (more…)