Maritime shipping is integral to the global economy and responsible for over 80 percent of traded goods, and is considered to be the cleanest mode of transport. Nonetheless the pollution derived from shipping activities imposes significant threats to air and water quality as well as marine biodiversity. In order to minimize the impact of the maritime industry on the environment, the International Maritime Organization (IMO) developed the International Convention for the Prevention of Pollution from Ships, or MARPOL (Marine Pollution) in 1973. The pollution and waste created in the process of shipping and maritime transportation have wreaked environmental burdens and accelerated resource depletion. The maritime industry is continuously making significant advancements in reducing environmental impacts on the planet with the aim to become more sustainable and meet its obligations of international legislation. We will examine the environmental initiatives that can be taken by the shipping industry and will look into the concept of “Green Shipping” and will propose conditions under which shipping companies could navigate in an environmentally responsible manner.
Today, efficient marine transportation requires strict adherence to international legislation; that is with minimal health and ecological implications. All companies should strive for cleaner practices both at sea and shore, better emission control, more efficient use of fuels, less waste and spillage during port operation and overall a more environmentally aware management. Achieving this will require heroic efforts by the industry in collaboration with regulators, port authorities and communities. Environmental impacts should be central in determining optimal routes and modes for delivery of goods. The effort to go green is also fueled by economic incentives, as fuel accounts for a large chunk of the total cost of shipping. Industry observers can expect to see a diversification of the fuel mix in coming years, along with expanded adoption of alternative fuels, such as liquefied natural gas, liquefied petroleum gas, hydrogen and methanol. These efforts coupled with the rise in the use of scrubbers, or exhaust gas cleaning systems, will cut down on sulfur emissions. The maritime sector thus has a growing interest in greener shipping as a competitive strategy mainly through energy savings and waste reduction.
Let us address some of the issues and strategies that could potentially make the shipping industry greener:
Clean up ship recycling. The IMO adopted the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships in 2009, but only Norway, Belgium, Panama, Turkey, and Japan are among a few who have acceded as of 2019. The IMO’s priority should be to ensure that the principal scrappers such as India, Bangladesh and Pakistan adhere to these guidelines. The first step is to set up local offices in these countries to collect and analyze monitoring data independently and to propose improvements to local governments. International loan or aid to these countries, sponsored by the likes of the World Bank should demand clean ship-scrapping practices as an incentive. To discourage transfer of scrapping elsewhere, a watch list of poorly performing countries needs to be updated by IMO regularly until an international convention enters into force.
Control emissions. Stricter regulations on IMO emissions are needed, including a cleaner worldwide standard for sulfur released by combustion of marine fuel. Severe emissions standards will stimulate demand for high-quality fuel. Incentives such as tax rebate and subsidies for producers will be needed to ensure a reasonable profit margin to recover the initial high investment in developing countries, where there is little current capacity. Government interventions will be needed in countries with state-run oil companies, such as in China and India.
An alternative is to install scrubbers for exhaust-gas cleaning on ships. At the moment, scrubbers are expensive, costing around $2 million for a given ship. But China, for instance, could equip its entire container fleet in one year by funding a 50% subsidy for scrubbers. The total cost is just over 0.5% of the $150 billion annual expenditure dedicated to fight pollution since 2013. Shipping companies could recoup the other 50% in one year from fuel savings. Therefore a stricter emissions standard will lead to a higher demand for scrubbers reducing its production costs as output scales. Another sustainable alternative which has been implemented since the beginning of 2020 is the use of low sulfur fuel in many parts of the globe. Further, there is an innovative solution, called Plaxx, derived from the efficient recycling of mixed plastic waste, giving an ultra-low sulfur fuel in compliance with the new emissions rule.
Improve port management. Managers are responding to environmental concerns with new procedures and efficient operational practices at their terminals. Port authorities should review the environmental impact of their previous construction and disclose information on their future development plans to demonstrate responsible management of public assets. They should coordinate with transport-planning bureaus to seek the most economical and environmentally friendly strategy to dispatch goods; the optimal capacities of their terminals; and how to assist ships to load and unload quickly and efficiently. In particular, transport routes and modes are being re-examined to optimize transit time, operating cost and emissions by synthesizing port-performance statistics with data on environmental impact, allowing this knowledge repository to result in informed decisions and best-practice insight.
The pathway to environmental awareness and practice requires innovation including clear goals, collaboration between public and private sectors, a mix of policy instruments and IMO orchestration. Raising environmental standards is an achievement of shared knowledge, setting priorities, defining improved industry practices and developing business tools to address the environmental footprint of shipping. The three strategies we have mentioned are to name a few among many that can improve competiveness and ensure more green practices in the industry. It is our conclusion that green shipping initiatives are the new face of the next set of challenges to the maritime global policies. IMO will share greater responsibility to oversee and shape sustainable shipping norms to enable innovation while ensuring protection of the world’s oceans and environment. IMO must pursue a long-term strategy that involves governments, the shipping industry, environmental organizations, engine manufacturers, oil producers, scientists among others, so all parameters are looked into, and key decisions are made and implemented. The future is green shipping.
