Running the rule over DHL's green targets
One (hopefully offsetting) adjustment after another
AAPL: NEW RECORD DHL: BOTTOM FISHINGF: DOWNSIDE RISKAMZN: ANOTHER HIGH WMT: ON A ROLLHON: INVENTORY UNLOCKBA: MORE OF THE SAMEGXO: HAMMEREDMAERSK: BOUNCING BACKDSV: FLIRTING WITH NEW HIGHS AMZN: NEW HIGH IN RECORD MARKETS WMT: RECORD IN RECORD MARKETSDSV: UPGRADEGM: BIG CHINA IMPAIRMENTCHRW: DEFENSIVEKO: GENERATIVE AI VISION
AAPL: NEW RECORD DHL: BOTTOM FISHINGF: DOWNSIDE RISKAMZN: ANOTHER HIGH WMT: ON A ROLLHON: INVENTORY UNLOCKBA: MORE OF THE SAMEGXO: HAMMEREDMAERSK: BOUNCING BACKDSV: FLIRTING WITH NEW HIGHS AMZN: NEW HIGH IN RECORD MARKETS WMT: RECORD IN RECORD MARKETSDSV: UPGRADEGM: BIG CHINA IMPAIRMENTCHRW: DEFENSIVEKO: GENERATIVE AI VISION
All the top-10 largest box lines appear to be moving away from conventional fuels in some form or another, leading to an emerging dichotomy between LNG and methanol.
Alphaliner highlights that orderbooks for vessels delivered from 2027 and beyond are now dominated by either LNG or methanol vessels, with China’s Cosco and Japan’s ONE the laggards of the group.
Notable is the shift in strategy for Maersk, whose leadership distanced themselves from LNG: “Initially, [Maersk] was adamant that only methanol would eventually have the potential to get Maersk close to its ambitious decarbonisation targets,” noted Alphaliner – only to make a u-turn this year into supporting the LNG ‘decarbonisation pathway’.
However Maersk certainly does not seem to have given up on methanol. Recently, Maersk converted an existing heavy-fuel powered vessel, Maersk Halifax, to be able to operate on methanol.
Alphaliner also noted that in ONE’s case, the line “says ‘no’ to LNG,” opting instead for methanol. ONE has also expressed in interest in ammonia, the still-speculative fuel with zero tank-to-wake CO2 emissions.
Both LNG and methanol have ‘green’ and ‘grey’ counterparts, with green versions of the fuels not widely available in the current market landscape, but expected to become fully established later, theoretically providing a net-zero well-to-wake emissions offering in both cases.
Due to the combustion properties of LNG, shipowners opting for the fuel are able to advertise a 20% tank-to-wake reduction in CO2 emissions to their shipper customers from the outset. However, the latest FuelEU regulations incorporate a well-to-tank component, casting some doubt over whether this will actually be deemed equivalent to a 20% reduction overall, given the leaks and inefficiencies in the supply chain of LNG.
Methanol, on the other hand, provides no well-to-tank emissions saving. But, if manufactured from renewable feedstocks, it can lead to a net-zero outcome, despite continuing to emit CO2 at the funnel, thereby making for a compelling shipper offering in the future – assuming that a supply chain for green methanol emerges at the end of it.
A lack of CO2 emissions savings to begin with, Alphaliner said, “…means that the successful switch to methanol is contingent on a supply of ‘green’ methanol from day one”.
Listen to this Loadstar Podcast clip of host Mike King speaking with Head of Airfreight at Xeneta, Niall van de Wouw, about supply chain planning for early 2025:
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