Dive Brief:
- MSC is investing in research to explore "hydrogen and fuels derived from it as a possible fuel source for the future for container shipping," the company said at the first Maritime Transport Efficiency Conference on Monday. The carrier has already started integrating the use of biofuels in its fleet to achieve decarbonization.
- MSC plans to focus resources on researching carbon capture and clean hydrogen as it works to achieve long-term goals of reaching net-zero emissions by lowering industry-wide greenhouse gas and carbon emissions.
- The company has also initiated "bunkering responsibly sourced, up to 30% biofuel [blends] on a routine basis in Rotterdam," according to a company statement. Also, MSC's largest class of container ships have been fitted for the option to convert liquefied natural gas to realize its zero-carbon goals for the future, the statement detailed.
Dive Insight:
Shippers are likely to face continued surcharges as carriers implement them to offset the costs of R&D for emissions-minimization efforts.
Last year, shippers received their first dose of price hikes stemming from the International Maritime Organization's low-sulfur regulations. As carriers continue R&D efforts to meet the long-term requirements, shippers can expect surcharges to remain and increase.
"There’s no one single solution to decarbonise shipping; we need a range of alternative fuels at scale and we need them urgently," Bud Darr, the executive vice president of maritime policy and government affairs at MSC, said in a statement. "The future of shipping and decarbonisation will rely on strong partnerships from both the perspective of technology collaboration and procurement."
Industry partnerships were a focus at Monday's Maritime Transport Efficiency Conference. Shippers coming together to develop clean hydrogen is seen as vital for realizing decarbonization in the industry, particularly because challenges like density, volume and safe handling, are hard to overcome without the proper investment and resources.
The Getting to Zero Coalition between shippers, carriers and energy providers — started last year — and the partnership to explore LEO fuel are two such initiatives aimed at ensuring sustainable ocean shipping.
