LOGISTICS
Sea shipping
accounts for around
3 % of total global
carbon emissions
fuels that comply with IMO requirements . Having endured some of the highest ever sea shipping rates over the past three years , it remains to be seen how customers will react to such a price hike , especially as they have only recently begun benefitting from a return to pre-pandemic shipping rates .”
Despite these challenges , Hersham feels the pace of change in sustainable sea freight is “ encouraging ”.
“ We ’ re already seeing a shift to moresustainable shipping ,” he says . “ This is reflected in the carriers ’ order books for more dual-fuel ships , which are beginning to make up a greater proportion of new vessels .”
He adds : “ There is great potential for investment in biofuels . Some biofuels , such as dimethyl ether , require no extensive modifications to engines , and are the most ready low-emissions fuel option .”
But , he adds , these are also “ substantially more expensive than traditional fuels ”, and that there are doubts such fuel “ can be consistently produced in the required quantities ”.
However sustainable shipping plays out over the coming years , Hersham says that supply chain executives must prepare for change by “ speaking to their partners in order to understand how the new regulations will affect capacity , lead times and schedule reliability ”.
78 October 2023