Letter from the Editor
Breakbulk & Project Cargo
Executive Editor : Mark Szakonyi 202.872.1234 , mark . szakonyi @ spglobal . com
“ A lot of investment will piggyback off the green corridors .”
Future fuel clues
By Janet Nodar
Eventually , the multipurpose / heavy-lift ( MPV / HL ) sector will have to build new ships . In addition to meeting growing demand , the shipping industry must meet sweeping International Maritime Organization ( IMO ) and EU targets for reducing greenhouse gas ( GHG ) emissions .
Most newbuilds currently under construction are dual-fuel ships , a tangible bit of evidence that the green transition is already well underway , said Thomas Damsgaard , head of BIMCO ’ s Americas office .
But more immediately , the EU ’ s goal of reducing GHG emissions by at least 55 % by 2030 will be achieved primarily via “ operational measures that increase efficiencies and reduce greenhouse gas emissions ” for existing ships , Damsgaard said . Such measures include weather routing , speed optimization , hull monitoring and maintenance , and installing heat recovery systems , according to the IMO .
These operational measures will be crucial for years to come , especially in the MPV / HL sector , which is ordering new ships at a rate that just barely maintains current levels of capacity and is insufficient to handle expected demand .
One factor holding back investment in newbuild MPV / HLs — though certainly not the only one — is ongoing uncertainty around the availability of carbon-neutral fuels at scale and in remote port areas . Unlike container ships , which generally have a set schedule and call major hub ports , almost all MPV / HLs operate on a tramp basis and often call smaller , niche ports that may not have the ability to convert existing bunkering infrastructure to handle alternative fuels .
For hints about which green fuels will eventually become industry standard , Damsgaard said to keep an eye on so-called green shipping corridors and the bunkering infrastructure at participating ports . “ A lot of investment will piggyback off the green corridors ,” he said . On one such green corridor , which will connect 11 European countries via a decarbonized transport network stretching from Norway to Spain , the Sweden ’ s Port of Gothenburg , North Sea Port , which spans the Netherlands-Belgium border , and Belgium ’ s Antwerp- Bruges will operate as maritime transportation hubs , according to information on the Port of Antwerp-Bruges ’ website . These ports are in the early stages of building bunkering capacity for alternative fuels including ammonia and methanol .
According to a May report from Norway-based classification society DNV , the MPV / HL sector will likely be best served by green methanol or bio marine gas oil ( MGO ). Heavy-lift ships are restricted in the low-carbon fuels that they can use because of their design and relatively small size , and green methanol and bio MGO are “ realistic alternatives ” to conventional carbon-based marine fuel because “ they can be carried in tanks integrated into the hull structure ,” DNV said in the report .
“ The thing to remember with this fleet is that it is a niche fleet in all aspects ,” Phillip Brown , global chartering manager at Bechtel Global Logistics , said during an Aug . 22 Journal of Commerce webcast . When it comes to alternative fuels , the MPV / HL sector will follow the much larger container segment , but ship owners and operators “ are still waiting for a clear idea of what the future is going to be ,” he said .
email : janet . nodar @ spglobal . com
Managing Editor : Benjamin Meyer 916.716.6272 , benjamin . meyer @ spglobal . com
Managing Editor : Kevin Saville , 212.488.4282 , kevin . saville @ spglobal . com
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Bill Mongelluzzo , West Coast 562.428.5999 , bill . mongelluzzo @ spglobal . com
Eric Johnson , Technology 213.444.9326 , eric . johnson @ spglobal . com
Janet Nodar , Breakbulk and Heavy Lift 251.408.2090 , janet . nodar @ spglobal . com
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4 Journal of Commerce | September 2024 www . joc . com