By Drewry Supply Chain Advisors
The imperative to decarbonise the global shipping industry is clear and present, however, many of the world’s largest importers and exporters are insufficiently informed about the full implications of the forthcoming new emissions regulations and the billions of dollars that will be added to freight costs in the future.
Pressure to decarbonise and reduce emissions of greenhouse gases (GHG) is growing in all sectors. In shipping, the International Maritime Organisation’s target to reduce GHG emissions by 50% by 2050 (from a 2008 baseline) will be complemented by regional and national regulations.
Besides regulatory changes resulting from decarbonisation policies, emissions limits and related taxes, there will be enormous technological change in the design of ships and their propulsion systems, with a transition to engines powered by low or zero carbon fuels.
“Overall, the transition towards low or even zero carbon shipping will result in higher costs and we believe that we have put together the first independent cost model to help shippers forecast and quantify additional medium-term direct costs, where they apply,” said Philip Damas, managing director of Drewry.
