• About
  • Contact Us
Logistics Asia
previous arrow
next arrow
  • Home
  • News
  • Carriers
    • 3PL
    • Courier and express
    • Last mile delivery
    • Freight forwarding
    • Multimodal transport
  • Supply Chain
    • AI and data solutions
    • Cold chain logistics
    • E-commerce
    • Risk management
    • Sustainability
    • Warehousing
  • Transportation
    • Air transport
    • Land transport
    • Maritime transport
  • Multimedia
    • Videos
    • Podcasts
  • Contact
No Result
View All Result
  • Home
  • News
  • Carriers
    • 3PL
    • Courier and express
    • Last mile delivery
    • Freight forwarding
    • Multimodal transport
  • Supply Chain
    • AI and data solutions
    • Cold chain logistics
    • E-commerce
    • Risk management
    • Sustainability
    • Warehousing
  • Transportation
    • Air transport
    • Land transport
    • Maritime transport
  • Multimedia
    • Videos
    • Podcasts
  • Contact
No Result
View All Result
Logistics Asia
No Result
View All Result
Home Transportation Maritime transport

Maersk Makes US$1.4 Billion Green Bet On Methanol-Powered Ships

by Team Logistics Asia
August 25, 2021
in Maritime transport
Maersk Makes US$1.4 Billion Green Bet On Methanol-Powered Ships

File Photo

Share on FacebookShare on Twitter

The world’s largest container-shipping line is making a US$1.4 billion investment in a greener fleet. Maersk has ordered eight new vessels, each costing US$175 million, that can be propelled by cleanly made methanol instead of an oil-based fuel. They’re set for delivery from 2024.

“We don’t believe in more fossil fuels,” Morten Bo Christiansen, vice president and head of decarbonization, said in an interview. “A lot of our customers are very, very supportive of this.”

Shipping, the backbone of global trade, accounts for almost 3 per cent of man-made carbon dioxide emissions. The level has been rising in recent years, according to data from the International Maritime Organization.

By 2050, the United Nations body wants shipping’s total greenhouse gas emissions to at least halve relative to 2008. Last year, IMO rules designed to curb air pollution by limiting the sulfur content of marine fuel came into force.

Maersk isn’t the only shipper starting to make the transition. Oil tanker owner Euronav has ordered new ships capable of one day running on ammonia or liquefied natural gas. Commodities trader Cargill has said it plans to add so-called wing sails to some of its fleet.

Back in February, Maersk said all future newbuild vessels under its ownership would be able to use carbon neutral fuels. It also announced the launch in 2023 of a small container vessel that could run on clean versions of methanol. This latest order is much bigger – each ship can carry about 16,000 containers.

“This is a firm signal to fuel producers that sizable market demand for the green fuels of the future is emerging at speed,” said Maersk’s chief executive officer, Soren Skou. More than half of the company’s 200 largest customers have set science-based or zero carbon targets for their supply chains or are in the process of doing so, according to a statement.

The new vessels, built by Hyundai Heavy Industries, represent about 3 per cent of Maersk’s total container capacity. They’ll replace older ships in the company’s fleet, saving about one million tons of carbon dioxide a year. Maersk has the option for four more of the ships to be delivered in 2025.

The company acknowledges that finding enough carbon-neutral methanol for the vessels from the first day of service will be “challenging.” The additional design cost of being able to run on both methanol and conventional oil-derived, low-sulfur marine fuel will be in the range of 10-15 per cent of the vessels’ total price. Maersk plans to use carbon neutral e-methanol, or, sustainable bio-methanol, as soon as possible in the new ships.

The clean methanol that the ships can burn is “at least twice as expensive” as the fossil-based, very low-sulfur fuel oil used by many vessels today, according to Mr Christiansen. In a normal freight rate environment – today’s bonanza prices being an exception – doubling the fuel price translates to about a 15 per cent rate increase, he said.

Source: Bloomberg
Tags: ContainersMaerskMaritime TransportMethanol ShipsShipping

Related Posts

Indonesia To Merge Four State-Owned Port Operators

Singapore and Indonesia Plan to Develop A Port in Central Java

by Dafizeck Daud
May 20, 2022

A 2,700ha industrial park in Central Java that is a joint venture between Singapore and Indonesia is on course for...

China’s Logistics Sector back to pre-pandemic level

China’s Logistics Congestion Eases as Cargo Throughput Improves

by Dafizeck Daud
May 12, 2022

China’s logistics congestion has eased to some extent, as major logistics indices for airports, ports, freeway traffic and cargo throughput...

Hyundai Glovis Shift Towards Gas Shipping Market

Allianz: Shipping Losses Fall But Situation Remains Muddy

by Dafizeck Daud
May 11, 2022

The international shipping industry is responsible for the carriage of around 90 percent of world trade, so vessel safety is...

Fresh Del Monte Increases Access to Its Ocean Logistics Biz

Fresh Del Monte Increases Access to Its Ocean Logistics Biz

by Dafizeck Daud
May 10, 2022

Network Shipping (NWS), Fresh Del Monte’s ocean logistics arm, continues to drive growth for Fresh Del Monte’s third-party services by...

Promoting the Maritime Industry Through Branding

Promoting the Maritime Industry Through Branding

by Dafizeck Daud
May 9, 2022

Singapore Maritime Foundation (SMF) has launched an attraction and industry branding campaign, “Own Your Future”, an immersive digital campaign that...

Load More
previous arrow
next arrow
  • Trending
  • Comments
  • Latest
Infinity Logistics Acquires Glencore’s Unit, Access World for US$177 million

Infinity Logistics Acquires Glencore’s Unit, Access World for US$177 million

February 7, 2022
The Insane Logistics of Formula 1

The Insane Logistics of Formula 1

April 15, 2021
How Container Ports Work: Logistics of Intermodal Transport

How Container Ports Work: Logistics of Intermodal Transport

April 22, 2021
How Drones Could Change The Shipping Industry

How Drones Could Change The Shipping Industry

April 20, 2021
UNICEF Urges Supply Chain and Logistics Industry to Roll Out COVID-19 Vaccines Globally

UNICEF Urges Supply Chain and Logistics Industry to Roll Out COVID-19 Vaccines Globally

From Land to Sea – A Rising Trend Among SE Asia E-Commerce Freight

From Land to Sea – A Rising Trend Among SE Asia E-Commerce Freight

An Integrated Logistics Platform to Penetrate SEA Market

An Integrated Logistics Platform to Penetrate SEA Market

Are We Ready to Ship Billions of COVID Vaccines Worldwide?

Are We Ready to Ship Billions of COVID Vaccines Worldwide?

China to Build Green Air Logistics Network by 2025

China’s Logistics Chain Back to Normal

May 27, 2022
Does RCEP Herald a Golden Age in APAC?

Does RCEP Herald a Golden Age in APAC?

May 27, 2022
Growing Intra-Africa Trade through Digital Transformation of Customs and Borders

Growing Intra-Africa Trade through Digital Transformation of Customs and Borders

May 26, 2022
Bridgenet and MKI To Assist Digital Transformation of Businesses in Asia Pacific

Bridgenet and MKI To Assist Digital Transformation of Businesses in Asia Pacific

May 26, 2022
Logistics Asia

Logistics Asia brings you the latest news, analysis and insights for the logistics sector. We cover logistics-related news in Asia and beyond.

Categories

  • 3PL
  • AI and data solutions
  • Air transport
  • Carriers
  • Cold chain logistics
  • Courier and express
  • E-commerce
  • Editor's Choice
  • Feature
  • Freight forwarding
  • Internet of Things
  • Land transport
  • Last mile delivery
  • Maritime transport
  • Multimodal transport
  • News
  • Opinion
  • Ports
  • Press Release
  • Rail Transport
  • Risk management
  • Supply Chain
  • Sustainability
  • Transportation
  • Uncategorized
  • Videos
  • Warehousing

Newsletter

Subscribe to our mailing list to receives daily updates direct to your inbox!

  • About
  • Contact Us

© 2022 Business Media International. All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Carriers
    • 3PL
    • Courier and express
    • Last mile delivery
    • Freight forwarding
    • Multimodal transport
  • Supply Chain
    • AI and data solutions
    • Cold chain logistics
    • E-commerce
    • Risk management
    • Sustainability
    • Warehousing
  • Transportation
    • Air transport
    • Land transport
    • Maritime transport
  • Multimedia
    • Videos
    • Podcasts
  • Contact

© 2022 Business Media International. All Rights Reserved.