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CMA CGM and Energy Observer join forces to make hydrogen one of the energy sources of tomorrow

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CMA CGM and Energy Observer join forces to make hydrogen one of the energy sources of tomorrow. Image: CMA CGM
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The CMA CGM Group, a world leader in shipping and logistics and a pioneer in the field of energy transition, is joining forces with Energy Observer, the first hydrogen-powered vessel to embark on a round-the-world voyage.

A common ambition: zero-emission shipping

Energy Observer, formerly a legendary race boat, is now a genuine experimental platform for tomorrow’s energy sources. It is sailing round the world in order to speed up development of the most innovative solutions for the environment.

Our partnership deals with the development of cleaner and more sustainable energies to eliminate CO2 emissions, greenhouse gases and air pollutants. It aims to experiment, test and develop energy solutions based on hydrogen, solar, tidal and wind power.

A shared challenge: to deploy hydrogen on a large scale in the shipping industry

Hydrogen is a limitless energy source that generates up to 4 times more energy than coal, 3 times more than diesel. The green hydrogen used by Energy Observer is made from seawater using on-board renewable sources of electricity (solar, wind and hydropower). Producing and burning hydrogen does not result in any greenhouse gas or fine particle emissions.

CMA CGM will contribute its industrial expertise to this floating lab, in order to promote the use of hydrogen as a zero-emission fuel source for the shipping industry in the years to come.

A unifying partnership that is speeding up the development of innovative environmental solutions

CMA CGM and Energy Observer R&D experts will pool their expertise and knowledge to develop technological solutions capable of limiting the environmental impact of shipping. The mobilization of CMA CGM will make possible the industrialization of new concrete energy solutions tested on board this floating smart grid.

CMA CGM will also contribute its shipping and logistics expertise to Energy Observer. The Energy Observer village will be made from containers converted and transported by CMA CGM with the large-scale operational support from the whole CMA CGM network around the world. It will travel the globe, presenting the latest technological innovations to the largest possible number of people and raising awareness about ecological transition issues among all audiences.

CMA CGM: a world leader in shipping and logistics and a pioneer in the field of ecological transition

CMA CGM has long been committed to protecting the environment and reducing its carbon footprint. Between 2005 and 2015, the Group reduced its CO2 emissions per container transported by 50%, and it has set itself the target of reducing it by a further 30% between 2015 and 2025.

CMA CGM has made many pioneering decisions:

  • A commitment to the use of liquefied natural gas (LNG) for large capacity vessels. LNG reduces sulphur oxide and fine particulate emissions by 99%, nitrogen oxide emissions by up to 85% and CO2 emissions by around 20%;
  • The decision that none of its vessels will use the Northern Sea Routes in order to preserve the fragile and unique ecosystems of the Arctic;
  • The world’s first partnership to successfully test a latest-generation biofuel, made from recycled vegetable oils and forest residues, that reduces CO2 emissions by 80% over the entire life cycle;
  • The development of numerous advanced eco-technologies on the Group’s fleet to improve its performance and reduce energy consumption: optimization of bows’ shape for better hydrodynamic efficiency, innovations on the propellers and the engines to reduce fuel and oil consumption;
  • The creation of a Fleet Center to which all the Group’s vessels (506) are connected 24 hours a day, 7 days a week. This unique system in the maritime transport industry makes it possible to optimize shipping routes (including by reducing speeds) in order to combine operational efficiency, safety and fuel consumption optimization, thus reducing CO2 emissions.
  • The launch of an international coalition for the energy of tomorrow in order to federate all transport and logistics players. Supported by the French President, this high-level coalition is working on the development of clean energies for carbon-free transport.

Tanya Saadé Zeenny, Executive Officer of the CMA CGM Group, said: “CMA CGM is joining forces with Energy Observer to accelerate the development of tomorrow’s energy solutions, particularly hydrogen.  Our partnership will mobilize all of CMA CGM’s know-how. Our teams of engineers and R&D experts are already working and our network around the world will be strongly mobilized to ensure the logistical support of Energy Observer’s worldwide ports of call.”

Victorien Erussard, Energy Observer’s Founder and Captain, added: “Leader in the shipping energy transition, CMA CGM is a key partner in our quest for clean transport. With CMA CGM’s huge experience in the shipping industry, our respective engineers and our technology partners, we have every chance of achieving our goals, which are ambitious but increasingly realistic. We are all driven by the same passion for technology and the desire to develop alternative energy solutions. The sea is something we can all share, and it is time to share our skills in order to protect the ocean, our favourite environment. We are delighted to be joining the 500-plus vessels in the CMA CGM fleet.”

Container Shipping Lines

In support of measures to protect against coronavirus

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In support of measures to protect against coronavirus. Image: Wikimedia/ Bernhard Fuchs
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NYK offers its sincere condolences to those who have lost their lives as a result of the novel coronavirus. We also sympathize with those who continue to struggle with this unfortunate outbreak in Wuhan, Hubei province, China, and other parts of the world.

In response, NYK will donate 5 million yen to the Embassy of the People’s Republic of China in Japan to assist with coronavirus control. Moreover, upon request from the embassy, NYK will make use of its logistics network over sea, land, and air to support the transportation of medical equipment.

The NYK Group will continue its efforts to be of support to the communities we serve.

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Container Shipping Lines

MSC Transpacific network update

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MSC Transpacific network update. Image: Flickr/ Bernard Spragg. NZ
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The cooperation agreement between 2M and Hyundai Merchant Marine expires at the end of the first quarter of 2020.

MSC is pleased to announce that we have made a new cooperation agreement with SM Line, beginning on 1 April 2020, that ensures we will provide continuity of services between Asia and the West Coast of North America, with improved services to the Pacific North West.

The new agreement with SM Line is separate from the 2M Vessel Sharing Agreement between MSC and Maersk, and the services of 2M and SM Line will complement each other. It consists of a combination of slot exchanges and slot purchases among the three parties – MSC, Maersk and SM Line – and it is subject to regulatory approval.

Six weekly MSC services between Asia and the West Coast of North America

With the new agreement, MSC will be in a strong position to continue to offer six weekly services between Asia and the West Coasts of the US and Canada. These are detailed in the table below.

Notable highlights:

  • MSC will from April offer three Pacific North West region services – a major improvement on the single Pacific North West service in place today
  • Transit times will become more competitive from key Asian ports of loading to the West Coast of North America. For example:
    • The Orient service calls at major central and northern Chinese ports, then on to Busan, South Korea, and straight to the US
    • The Maple service ensures we provide good service continuity from China and South Korea to Canada, and includes a call in Yokohama before direct transit to Prince Rupert
  • The new MSC Rose service, spanning China, South Korea, Canada and the US states of Washington and Oregon, will benefit from exclusive access to space on SM Line’s Pacific North West Service.

Please note that MSC’s existing services to the US East Coast and Gulf remain unchanged and, also, the agreement between 2M and ZIM in the Pacific North West region remains in full effect.

Here are the full port rotations for MSC services on the updated MSC transpacific network, connecting China, South Korea, southeast Asia with the US and Canada:

Asia-US-Network.JPG

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Container Shipping Lines

MSC confirms long-standing commitment to reducing CO2 emission

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MSC confirms long-standing commitment to reducing CO2 emission. Image: Pixabay
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MSC Mediterranean Shipping Company, a global leader in shipping and logistics, is strongly committed to further reducing CO2 emissions and supporting longer term goals to fully decarbonise shipping and ensure it is a truly sustainable industry.

Young, green fleet

While continuously increasing its TEU (twenty-foot equivalent unit, the size of a regular container) capacity to meet the growing demand, MSC operates a modern, green fleet and is investing heavily in low-carbon technologies and extensive new-build and retrofit programmes to boost performance and minimise our environmental impact. For example, MSC’s fleet improvement program has resulted in a 13% reduction in CO2 emissions per transport work* in 2015-18. Furthermore, the latest newbuilding additions to the fleet – led by MSC Gülsün, the largest container ship in the world – has introduced a new class of sustainable container shipping, with the lowest carbon footprint by design, at 7.49 grams of CO2 emissions to move 1 ton of cargo 1 nautical mile.

* The figure of 13% relates to MSC’s Energy Efficiency Operational Indicator (EEOI). EEOI is a tool set out in the IMO Guideline MEPC.1/circ.684, and is defined as the ratio of mass of CO2 emitted per unit of transport work (unit = gr CO2/Tons cargo/miles)

EEOI-graph. MSC confirms long-standing commitment to reducing CO2 emission. Image: MSC

EEOI-graph. MSC confirms long-standing commitment to reducing CO2 emission. Image: MSC

MSC-TEU-Capacity-Evolution-2015-2018. MSC confirms long-standing commitment to reducing CO2 emission. Image: MSC

MSC-TEU-Capacity-Evolution-2015-2018. MSC confirms long-standing commitment to reducing CO2 emission. Image: MSC

Source: MSC

MSC’s position on reporting CO2 emissions

MSC fully supports reporting CO2 emissions transparently and precisely in the European Union (EU) Monitoring, Reporting and Verification (MRV) system, as mandated by EU legislation. It is however vital that the raw data reported in the system are analysed accurately and take operational realities fully into account, to give a realistic picture of the related emissions.

In this respect, a recently published report by Transport and Environment (T&E) offers an incomplete analysis of these data and therefore does not give an accurate picture of the emissions from the shipping sector. In particular, the T&E analysis fails to take a number of operational aspects of MSC’s services fully into account, and thus does not offer a complete assessment of our role and impact in terms of emissions.

Furthermore, CO2 emissions should be compared on an equal basis. The analysis by T&E focuses on emissions in the EU and, if it is to be fully comparable across shipping lines and industries, should only take into account emissions which actually occurred in the geographical area of the EU.

According to an MSC analysis of its own operational records, only 40-45% of the 11 million tons of emissions reported in the MRV were actually in the EU. To accurately assess MSC’s role in the decarbonisation of shipping, it is vital to take the following points into account:

  • Shipowners are mandated to report consumption and CO2 emission data for voyages starting and terminating in EU ports (including voyages between EU ports). These emissions are calculated based on the last port of call before entering EU or the first port of call after leaving EU. As an example, a ship carrying fruits from the Caribbean to Northern Europe and back needs to report emissions for the whole distance of the trip, even though only part of it takes place in the EU. As a result, the actual emissions in the EU for this particular ship may be up to 65% less than is recorded in the MRV. This is particularly relevant for a global company such as MSC, which operates in all the world’s major shipping lanes.
  • MSC performs its own feedering services, which means these vessels are also included in our total carbon footprint. These smaller feeder vessels transfer containers between larger ships and smaller ports. Other carriers using third party feeders are not held accountable for those emissions. By outsourcing such services, container lines are able to report much lower emission figures, as it is the shipowners’ responsibility to report the emissions in the MRV.
  • MSC is continuously improving energy efficiency and thus mitigating greenhouse gas (GHG) emissions. The Energy Efficiency Operational Indicator (EEOI) gives a reliable indication of a ship’s environmental performance and the ratio of CO2 emissions per ton of cargo MSC moves is among the lowest in the industry. The T&E report ranks MSC as the third most efficient shipping line based on real-world operational efficiency. However, the figure 19.92 included in the report differs significantly from MSC’s own data produced using third-party verified methodology. The global EEOI figure for MSC in 2018 was 14.56 indicating that the gap between this verified figure and the one included in the report is unrealistic. Based on this MSC could rank even higher in the efficiency scale.

Greenest form of cargo mass transport

International shipping, which is already one of the most regulated global industries, facilitates the way we live our lives today. 90% of the goods we use and consume are transported in container ships, including food, fruit, medicines and electronics.

Container shipping is the world’s most carbon-efficient form of transporting goods – far more so than road or air transport.

Co2-breakdown-PWC-2015. MSC confirms long-standing commitment to reducing CO2 emission. Image: MSC

Co2-breakdown-PWC-2015. MSC confirms long-standing commitment to reducing CO2 emission. Image: MSC

MSC confirms long-standing commitment to reducing CO2 emission. Image: MSC

MSC confirms long-standing commitment to reducing CO2 emission. Image: MSC

For example, transporting a shipload of board games for Christmas between Marseille and Rotterdam would produce 2.6 tons CO2 emissions if carried by sea (1 ship). If carried by road, we would need 60 trucks to transport the same amount of board games and the total emissions would jump to 11.5 tons.

MSC plays a crucial role in achieving global economic development and prosperity for many nations and communities. With over 40 years’ experience, we are proud of our role in driving the global economy, connecting people and goods, and our efforts to do all this in a way that is socially inclusive and sustainable. The evolving regulatory landscape and rising expectations of customers, stakeholders and investors present challenges to the shipping industry but are also a positive force that drives progress and creates a shift towards an even more sustainable business.

MSC remains fully supportive of decarbonising the shipping industry. At the same time, it recognises that some major breakthroughs, especially in fuel and propulsion technologies, are needed to shift the industry towards a zero-carbon future.

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