The shipping sector powers the global economy , being involved in an estimated 90 % of all trade . Estimates from the International Chamber of Shipping indicate that around 11bn tons of goods are transported by ships each year – from raw materials to finished products .

Global sea shipping also accounts for roughly 3 % of total global carbon emissions . These emissions , if unchecked , could rise by as much as half again by 2050 .

Sea freight companies realise that , if the sector is to hit its carbon targets , then zero-emission fuels and vessels will need to start being deployed at scale over the coming decade .

But as all sectors are finding , the move to zero-emission fuels is expensive . Clean fuels could increase the total cost of vessel ownership by between 40-60 %, depending on the route .

HERSHAM , CEO ZENCARGO

LOGISTICS

Sea freight emissions must be halved by 2050 Yet cost must not be allowed to stand in the way of progress , which is why the International Maritime Organization ( IMO ) – a specialised agency of the United Nations responsible for regulating shipping – has mandated emission reductions of 50 % for all vessels by 2050 . A number of countries , including Japan , the UK and the US , have also set similar net-zero shipping targets . Because ships have a 20- to 25-year operating life , it means that zero-emission programs must be implemented at pace over the next decade . With the clock ticking , there are many challenges ahead .

Alex Hersham is CEO of Zencargo , a digital freight forwarder and logistics provider .

Asked what the IMO regulations mean for carriers and supply chain executives in the immediate future , Hersham says carriers “ will keep a close eye on what ships are compliant ”, and that they will also “ analyse which older ships can be scrapped if there is no ROI in making them compliant ”.

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