Sustainability: what initiatives are the big shipping companies taking? - part 1
In the latest Flows magazine on sustainability, we put the question to the major shipping companies about what actions they are taking in concrete terms and what it delivers. Not all shipping companies were eager to answer. MSC and Hapag Lloyd did. Today you will read MSC’s answers, tomorrow those of Hapag-Lloyd.
Maritime transport is the backbone of global trade. Moving towards a more sustainable society, shipping is also coming under increasing scrutiny. What initiatives are shipping companies developing to green their operations? And how does this translate to the ports of Antwerp and Zeebrugge? The Flows editors sent the same questionnaire to CMA CGM, COSCO and Grimaldi. They were unable to answer our questions within the desired timeframe or refused to communicate. Together with Hapag-Lloyd and MSC, CMA CGM, COSCO and Grimaldi are among the largest shipping companies to call Port of Antwerp-Bruges in terms of tonnage.
By 2030, the EU aims to reduce net greenhouse gas emissions by at least 55% from the 1990 baseline year. From 2050, the union aims to emit no more greenhouse gases. The inclusion of the maritime sector in the EU ETS (the European Emissions Trading Scheme) should encourage shipping to accelerate decarbonisation. The total impact of shipping would account for 3% of global CO2 emissions. The vast majority of the 100,000 or so cargo ships that travel daily, carrying 90% of all goods around the world, run on heavy fuel oil. On 7 July 2023, the 175 member states of the International Maritime Organisation reached a historic agreement: “in or near” 2050, shipping must achieve net zero emissions.
The text speaks of “guiding”, and therefore non-binding, targets. However, it does include checkpoints: by 2030, polluting emissions must be reduced by at least 20%, with 30% as a target. By 2040, emissions should be at least 70% lower, with 80% curtailment targeted. Zero emissions should then be achieved in or near 2050. Against this background, Flows inquired about the vision and initiatives of some major shipping companies. You can find their answers here.
Mediterranean Shipping Company
What is the parent company’s policy on sustainability?
“Obviously, we want to assume our role of market leader here; thus, we are fully compliant with regulations throughout all ranks of our group, i.e. MSC, Medlog, Medrepair, TIL, and so on. We are taking the biggest steps on the ocean side with the main goal of achieving net zero emissions by 2050. Today, we have the youngest and cleanest fleet in operation. Our new ships are equipped with the best technology and dual-fuel engines. The older ships are undergoing what is known as retrofitting.”
“We are making huge investments so that we can use the molecules with the lowest emissions, and we are also ready for shore power. From the same angle, we are also looking at the wider field; for example, we are re-routing shipping routes, using wash water technology and actively participating in programmes to protect everything that lives in the water.These efforts are not limited to our ships alone, but extend to all ranks of the group.”
How does this translate to the ports of Antwerp and/or Zeebrugge, both in the use of the ships operating here and the terminals they call at?
“In Antwerp, we have a very important base of operations with the MPET terminal, where work is also in full swing on an ambitious sustainability plan that spans all terminal activities. For example, hybrid straddle carriers are already operating at our terminals today, as is the case here at MPET.”
What (large-scale) bunkering opportunities do you see for ammonia, lng and other alternative fuels in the Flemish ports? Where and when will this be possible?
“Our fleet is ready for all possible molecules – either ‘ready’ (that term indicates that ships are equipped for it, e.g. ammonia-ready, ed.) or via the retrofit option. However, we do not yet see the large-scale bunkering of alternative fuels today. Certainly not in terms of green molecules so that the necessary requirements are also met ‘down the grid’…. Moreover, there are still gaps in legislation and reporting, for instance when looking at the whole ‘well to wake’ road. The same applies to emissions parameters of alternative fuels at IMO MPEC. That is still ‘work in progress’.”
“MSC itself has also been in discussions with major producers for quite some time to identify needs and to support and accelerate research and development. As soon as the implementation deadline approaches, this process will undoubtedly also gain momentum. In addition, it remains to be seen what the relationship between supply and demand will be and what the price aspect of making the respective molecules available per site will be.”
Modal split: what is its importance and how do you see it evolving further?
“Intermodal transport has long been one of the spearheads in our group. This translates into a strong intermodal network. In this area, we make major investments as a group and work with strategic partners. We are pioneering various initiatives: we take trucks off the road through re-use, we extend the opening hours to spread the transport and we offer night opening. In this respect, we also try to get the different parties in the whole chain on board. In terms of modal split, we are meeting the set targets, something we are quite proud of; although we must add that that remains a big challenge.”
Furthermore, what are the challenges and concerns regarding sustainability in general for your company?
“The multiplicity of legislation on a global scale that does bring with it some gaps. Especially the imposed reporting on the fuel consumption and emissions of our fleet is a huge challenge. In addition, we are concerned about the accessibility of our port via all possible modes… particularly relevant to sustainability in the broadest sense of the word.”
