News / Pricing deterrents have 'negligible impact' on shipping emissions, says study

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Transport and Environment (T&E) has urged regulatory bodies to adopt “bespoke action” in reducing shipping emissions, after a study released today found pricing deterrents were having “negligible impact”.  

T&E commissioned the study to assess the relationship between fuel prices and technical and operational efficiency over three decades, but it found “no clear relationship between the two”. 

“Policymakers in the European Union (EU) and the International Maritime Organization (IMO) argue that the higher prices that result from emissions pricing and fuel standards will lead to energy efficiency improvements and emissions reduction,” it reported.  

Measures to increase fossil fuel pricing and deter its use include EU ETS, FuelEU Maritime and bunker adjustment factor surcharges.  

However, the analysis shows that while shipping companies do “order slightly more efficient ships as a result of higher fuel prices”, albeit with a time lag of around six years, they have made “no real improvement”.  

It says the design efficiency of vessels coming online in 2031 will be 4% better than 2023, but the technical energy efficiency of all ships visiting ports will only increase 0.03% by 2031, given that newbuilds are a small share of the entire fleet. 

This will have “negligible impacts on total emissions”, said T&E.  

“The results suggest that the only way to ensure energy efficiency improvements is with bespoke action.” 

T&E urged: “Policymakers in the EU, IMO and other regions should therefore ensure their policy measures to reduce shipping emissions include concrete, explicit measures to improve energy efficiency.” 

Jacob Armstrong, shipping manager at T&E, suggested: “The biggest improvements in efficiency come from sailing slower. If governments put in place measures that promote real improvements in efficiency, they can slash emissions overnight.” 

According to T&E, if ships travelled at 75% of the speed they do now, it would cut carbon emissions by 47%. 

While it acknowledged that a fleet of four ships at 100% speed would need five ships at 75% speed to match the same container volume, it added: “Even adding one ship, while going at a slower speed, would save 34% CO2. This is because fuel consumption, and therefore emissions, increase significantly with speed.” 

Meanwhile, Maersk has taken delivery of the seventh of 18 large dual-fuel methanol vessels scheduled for delivery this year and next. Built at Hyundai Heavy Industries in Ulsan, South Korea, the AP Møller has a capacity of 16,592 teu.  

The Danish carrier said today: “With the vessel technologies available, Maersk has been urging the IMO member countries to adopt ambitious regulations that bridge the price gap between fossil fuels and the alternatives with lower greenhouse gas emissions, making the reduced emissions transport choice viable and competitive.”