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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.

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

Hapag-Lloyd and HHLA to continue collaboration

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Hapag-Lloyd and HHLA to continue collaboration. Image: HMM/ HAPAG
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Hapag-Lloyd AG and Hamburger Hafen und Logistik AG (HHLA) will be continuing their close cooperation in Hamburg for another five years.

On the basis of this decision, both companies will now be able to make necessary investments and boost their overall competitiveness. Both parties have also agreed to intensify their collaboration on sustainability-related issues. For example, there are plans to make additional significant reductions in emissions in the Port of Hamburg and to work together to rigorously expand hinterland connections.

“We are very pleased to be able to continue our longstanding, trusting and intensive collaboration. As a result, the Port of Hamburg is and will remain a maritime hub of high importance to global logistics flows,” said the CEOs Angela Titzrath, Hamburger Hafen und Logistik AG, and Rolf Habben Jansen, Hapag-Lloyd AG.

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