The global container shipping industry is at a crossroads, balancing urgent calls to slash greenhouse gas (GHG) emissions with the uncertainty of which alternative fuels will dominate the future. Industry heavyweights like Maersk, CMA CGM, and COSCO are ramping up investments in new vessels and fuel technologies to adapt to a low-carbon future, but the road ahead is far from clear.
The stakes couldn’t be higher. Shipping accounts for roughly 3% of global GHG emissions—a significant contributor to climate change. Yet achieving the U.N.’s International Maritime Organization (IMO) target of net-zero emissions by 2050 will require monumental investments, potentially exceeding $100 billion annually. That’s no small feat for an industry that still burns about 2.5 billion barrels of heavy fuel oil every year.
So, what’s the plan? For now, shipping companies are hedging their bets by investing in dual-fuel engines capable of running on both traditional and alternative fuels. As of October 31, there were orders for 522 dual-fuel vessels, with the majority designed for liquefied natural gas (LNG) or methanol. The versatility of these engines is appealing—companies can switch between cleaner fuels or fallback on petroleum if supplies falter or prices spike.
But not all green fuels are created equal. LNG, while cleaner than heavy fuel oil, still emits methane, a potent greenhouse gas, during its production and use. Despite these concerns, giants like Switzerland’s MSC argue that LNG offers the most reliable supply chain among alternative fuels. Others, like CMA CGM, are diversifying their strategies with biomethane and biodiesel blends. The French carrier claims to have slashed emissions per container by 50% using biodiesel and has allocated $15 billion to developing vessels compatible with various cleaner fuels.
Methanol is gaining traction, too, with Maersk and CMA CGM leading the charge. Both are investing heavily in green methanol supply chains and vessels, banking on this renewable option as a long-term solution. Meanwhile, ammonia and hydrogen-based fuels are also in the mix, though they remain largely in the experimental phase.
While shipping companies are stepping up, they’re also calling on regulators for help. Industry leaders have urged for clear global deadlines to phase out fossil fuels, incentives for green fuel production, and penalties for laggards. Without such frameworks, the path to decarbonization could become an expensive guessing game.
Ultimately, the shipping industry finds itself in uncharted waters, navigating a transition as complex as the global supply chains it serves. With so much at stake, the question isn’t whether shipping will go green—it’s how fast and at what cost.
Source: reuters
