CO2 Emissions From Container Industry Fell In First Half of 2023 Across 13 Busiest Ocean Freight Lanes

The Latest Analysis on CO2 Emissions in the Container Industry

The container industry has seen a decrease in CO2 emissions during the first quarter of 2023 on 10 out of the world’s busiest 13 ocean freight lanes, according to a recent industry analysis by Xeneta. The Carbon Emissions Index (CEI), a benchmarking tool developed by Xeneta and Marine Benchmark, reveals that the trade corridor with the most significant reduction in emissions is the US West Coast to the Far East lane. Additionally, Yang Ming has been recognized as the industry’s ’emissions hero’ for the second consecutive quarter.

Enabling Transparency

The CEI utilizes real-time AIS data and vessel specifications to track and calculate the environmental performance per ton of cargo carried on the busiest trade routes in the sector. It uses a baseline score of 100 to assess carriers in comparison to the trade lane average at the beginning of 2018.

Emily Stausbøll, Xeneta Shipping Analyst, notes that the quarterly improvements in scores indicate progress in reducing emissions. However, she cautions that this trend may not be sustainable and questions whether commercial considerations will outweigh environmental commitments in the future.

Slow Progress?

Stausbøll attributes much of the emissions reduction to carriers reducing speeds to achieve fuel efficiency gains and accommodate lower demand in a subdued macroeconomic climate. The US West Coast to the Far East lane experienced a speed reduction of almost 1 knot, resulting in an 11.3% improvement in CEI from Q4 2022. She also highlights that some alliances are adding capacity to services by deploying slower ships, driven by business rather than environmental considerations.

Out of the 13 leading trade corridors, only three saw an increase in speeds and emissions during the quarter. These were the Far East to North Europe, Far East to US East Coast, and North Europe to US East Coast routes. The Mediterranean to US East Coast trade had the highest increase in CEI scores, indicating a 13.6% rise in emissions.

The Right Balance

Despite the positive current trend, the long-term perspective is mixed, with four trades recording worse CEI scores in Q1 2023 compared to Q1 2018. The Far East to US East Coast corridor showed the most significant improvement with a 21.2% decrease in CEI. Stausbøll emphasizes the importance of finding the right balance between vessel speed, size, and filling factor to achieve optimal environmental performance.

Yang Ming Leads the Way

Yang Ming is recognized as the best individual carrier, achieving the lowest CO2 emissions per ton of cargo carried on three trades. OOCL and HMM also secured top spots on two trades each. Stausbøll highlights Yang Ming’s commitment to sailing younger ships and at slower speeds, making it the only major carrier to score below the trade lane average on all deployed ships. She emphasizes that carriers who prioritize environmental commitments can benefit commercially due to increasing customer, financier, and regulatory focus on sustainability.

The Sustainable Development Goals (SDGs)

1. Goal 7: Affordable and Clean Energy
2. Goal 9: Industry, Innovation, and Infrastructure
3. Goal 11: Sustainable Cities and Communities
4. Goal 13: Climate Action
5. Goal 14: Life Below Water
6. Goal 15: Life on Land

Conclusion

The container industry has made progress in reducing CO2 emissions, particularly on key trade corridors. However, the long-term sustainability of these improvements remains uncertain. It is crucial for carriers to strike a balance between commercial considerations and environmental commitments to achieve optimal environmental performance. The example set by Yang Ming demonstrates the potential benefits of prioritizing sustainability in the industry.

SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 13: Climate Action
• SDG 9: Industry, Innovation, and Infrastructure

The article discusses the reduction of CO2 emissions in the container industry, which is directly related to SDG 13 – Climate Action. It also mentions the use of a unique environmental benchmarking tool and the consideration of environmental commitment in the industry, which aligns with SDG 9 – Industry, Innovation, and Infrastructure.

2. What specific targets under those SDGs can be identified based on the article’s content?

• SDG 13.2: Integrate climate change measures into national policies, strategies, and planning.
• SDG 9.4: Upgrade infrastructure and retrofit industries to make them sustainable.

The article highlights the efforts of the container industry to reduce CO2 emissions, indicating progress towards integrating climate change measures into industry practices (SDG 13.2). It also mentions the use of a benchmarking tool to track environmental performance, which contributes to upgrading infrastructure and making it more sustainable (SDG 9.4).

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Carbon Emissions Index (CEI)
• Vessel speed reduction
• Increase in vessel sizes
• Stable filling factor

The article mentions the Carbon Emissions Index (CEI) as a benchmarking tool used to track and calculate environmental performance in the container industry. The reduction in vessel speed, increase in vessel sizes, and stable filling factor are indicators of progress towards reducing CO2 emissions and improving environmental performance.

Table: SDGs, Targets, and Indicators

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: marineinsight.com

Join us, as fellow seekers of change, on a transformative journey at https://sdgtalks.ai/welcome, where you can become a member and actively contribute to shaping a brighter future.