Update and Analysis of The Global Seafreight Market This Update and Analysis of the Global Seafreight Market is exclusively for DSV Air & Sea and made by Lars Jensen CEO and partner in Vespucci Maritime. Lars Jensen has 19 years of experience in the shipping industry and has for the last 10 years worked as an independent market analyst. January 1 9 , 2022 The impact of decarbonisation Despite the maladies of the current congestion issues, it is at times also necessary to look beyond the current problems and consider some of the longer-term developments which will impact shippers. One of those issues is the decarbonisation of the container shipping industry. As per the framework agreed by the International Maritime Organization (IMO), the shipping industry needs to reduce its total emissions by 50% by the year 2050. This is measured relative to total emissions, and as trade is – very roughly – expected to have doubled by then, this means that a vessel must reduce its emissions by at least 75% per TEU moved. This cannot be achieved with the use of standard fuels and hence the industry has no choice but to aim for full decarbonisation. In the medium term, some shipping lines will begin building and launching vessels powered by natural gas (LNG). It should be noted that such vessels will, at most, reduce emissions by 25%. This means that such vessels will reduce emissions in the short term, but at the same time they are not capable of meeting the targets set for 2050. They are therefore to be seen as a transitional solution. Hapag-Lloyd then raised its ambition level in 2021 aiming to decarbonise in 2045 and is now followed by Maersk who moved up its time table by a decade and aims for decarbonisation in 2040. What are the ramifications for the shippers if the other carriers decide to adopt for the same ambitious target as Maersk? In very practical terms it means that the entire global fleet of vessels has to be replaced within the next 18 years. Normally a vessel has a lifespan of some 25 years and as a consequence this will
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