Containers: What are the carriers doing to reduce their carbon footprints?
By George Griffiths, David Lademan, Baoying Ng and Parisha Tyagi
French carrier CMA CGM is the fourth largest global container carrier, with a fleet of 502 vessels.
The company has had a 24% decrease in GHG emissions since 2015, significantly ahead of its 2025 goal of 30% emissions reduction. And in 2019, CO2 emissions were decreased by 6% compared to 2018 levels. The group’s objective is to be completely carbon neutral by 2050.
In 2019, the group used 7,782 thousand tonnes of marine fuel, down 6% year over year.
26 LNG-powered vessels are in use or on order, which curb CO2 emissions by about 20% per vessel when compared with the current fleet. CMA CGM’s choice to utilize LNG in its next-generation ships has drawn some criticism, as LNG is not a carbon neutral fuel source. But the company seems to recognize that LNG is a short-to-medium term solution, and is looking towards second-generation biofuels and hydrogen to be used as fuel sources in the future.
In 2020, the company partnered with Energy Observer to test alternative energy, primarily green hydrogen, and rigid wing sails.
Will refrain from using the now navigable Northern Sea Route, in an effort to protect the unique biodiversity and wildlife present in the Artic region.
Ship dismantling, a longstanding industry issue due to the occurrence of unsafe work, human rights violations, and further pollution, is closely monitored by CMA CGM, with regular site audits and compliance with international standards.
German carrier Hapag-Lloyd is the fifth largest global container carrier, with a fleet of 246 vessels.
The company has cut its CO2 emissions by almost 50% since 2008, through the use of measures including larger, more efficient ships. The company is currently on track to comply with the IMO 2050 regulations on cutting GHG emissions, however they identify several challenges in the market between now and then.
In 2019, the group used 4.4 million tonnes of marine fuel, up 2% year over year.
Finalised the order for six 23,500+ TEU dual-fuel LNG-powered vessels in December 2020, to be delivered in 2023. Already they have an LNG-powered ship, the 15,000 TEU Sajir, however the retrofitting took around $35m, potentially ruling out retrofitting of their fleet of conventional fuels.
In 2017, Hapag-Lloyd’s five new ships were between 40-60% below the IMO reference line for EEDI (Energy Efficiency Design Index).
Recent inclusion of environmental awareness in the Hapag-Lloyd strategy to ensure compliance with all environmental requirements, and to implement the necessary technical and organizational changes.
Use of biofuel in engines to reduce CO2 emissions, such as the Montreal Express being powered by B20 fuel, which comprises 80% low-sulfur fuel oil, 20% UCOME (biodiesel from used cooking oils and fats).
Danish carrier Maersk is the largest global container carrier, with a fleet of 715 vessels.
In 2020, the company cut its CO2 emissions by 46.3% relative to its 2008 baseline. It has a target of net zero CO2 emissions by 2050. Along the way, it targets to reduce relative emissions by 60% in 2030.
By 2030, Maersk also targets having commercially viable, net zero vessels in operation.
Maersk says it will not use transition fuels such as LNG, and move directly to fully net zero fuels instead. It has selected four priority fuels for net zero emissions shipping: biodiesel, methanol (bio-methanol and e-methanol), lignin fuels, and ammonia.
The company’s Maersk ECO Delivery offers carbon-neutral emissions shipping, utilizing biodiesel.
Ship recycling is also an area of focus for Maersk, which recycled nine of its vessels over 2017-2019 in line with Responsible Ship Recycling Standards under full-time supervision with stop-work authority, with external audits.
Going forward, Maersk is looking into the recycling of post-panamax ships, with the expectation that there will be a wave of such vessels nearing their end of life in the next few years. It notes that capacity to handle these vessels is limited, with very few yards included in the EU List that can handle them.
Sustainable trade is another focus area, where the company has committed to “connect 50% of global containerized trade to digital solutions that reduce supply chain barriers by 2025”.
Swiss carrier Mediterranean Shipping Company (MSC) is the world’s second largest container carrier, with a fleet of 570 vessels.
MSC is the first major shipping line to use 30% biofuel blends in almost all its 0.5% and 0.1% bunkering in Rotterdam.
The company is a key driving force behind a USD 5 billion global fund to cut emissions and accelerate the development of commercially viable zero-carbon ships by the early 2030s.
In 2019, MSC was named ‘The Greenest Shipowner of the Year’ at the annual Green Shipping Summit in Amsterdam for its efforts to promote the sustainable use of marine resources and investments in green technologies.
The company registered a 13% improvement in CO2 emissions per ton of cargo from 2015 to 2018; on track to meet international 2030 emissions reduction targets set by IMO.
Agreed to an EEOI (Energy Efficiency Operational Indicator) linked target of 14.22 gr CO2/(tons cargo/miles) by 2023, down from 14.8 in 2019.
Reported a reduction of approximately 7,800 tons of CO2 in 2019 through promotion of shift of mode transport (from trucks to trains).
Took a stand against using the Northern Sea Route for container shipping to protect nautical heritage and marine wildlife.
Inducted 10 new Gülsün class vessels in its fleet in late 2019, equipped with a UN IMO-approved hybrid EGCS, able to switch to low-sulphur fuel when necessary and can also be adapted for LNG use in the future.
