Sustainability

DNV's in-depth research identified four potential scenarios, all of which share a common outcome: significant cost increases. The classification society's calculations estimate a rise in costs for container ships ranging from 91% to 112%. "Our latest analyses show that decarbonizing the shipping industry could double the cost of transporting goods in containers," said Eirik Ovrum, lead consultant and author of the "Maritime Forecast to 2050."

"Ultimately, the rising costs of sea transport will need to be passed along the supply chain, and the market is already seeing trends to shift these costs to end users. To remain competitive, shipowners must develop and implement strategic fleet management plans," DNV notes. For bulk carriers, DNV estimates the impending cost increase at 69% to 75%, while for tankers, it's expected to be between 70% and 86%.

'Almost impossible'

DNV observes that there is still a great deal of work to be done to achieve a carbon-free shipping industry. So far, much hope has been placed on alternative, climate-friendly fuels, but their limited availability makes it "nearly impossible for the shipping industry to contribute its necessary share" towards meeting international sustainability targets, according to the agency.

According to Knut Ørbeck-Nilssen, CEO of DNV Maritime, "we are currently witnessing a slowdown in the decarbonization of the shipping industry," but he remains optimistic, stating that "we are entering an era of unprecedented technological exploration that will drive progress forward."

"With carbon-free fuels being so scarce, smart decision-making and strategic investments are crucial today to lay the foundation for future emissions reductions. Prioritizing energy efficiency, leveraging technological solutions, and embracing digitalization are key steps to mitigate the additional cost burden and still achieve our decarbonization goals."

Efficiency

Solutions to improve the efficiency of ships and reduce energy loss are, according to DNV, "the most straightforward way" to lower shipping emissions. The agency also sees significant potential in so-called onboard carbon capture (OCC), as it allows the continued use of conventional fuels. However, the infrastructure required for OCC still needs "substantial" improvements, according to DNV.

Source: NT