World Maritime News
WMNF 11/12/2024
What the climate cash conundrum means for shipping
The failure of climate finance negotiations at COP29 has ironically increased the likelihood of a global carbon levy agreement for shipping at the International Maritime Organization (IMO) next year. While the $300 billion annual climate finance target agreed at COP29 is insufficient, governments view the shipping industry as a key source of climate finance revenue. The IMO plans to agree on economic measures and fuel standards in 2025, which will be implemented in 2027. About 70% of IMO member states support a carbon levy, with China’s position being crucial. Following COP29 negotiations, low-income countries are more likely to support a carbon levy at the IMO to secure climate finance. China may also accept a compromise. The worsening climate crisis has increased the likelihood of a global shipping carbon levy becoming a reality.
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How new Trump tariffs on China, Mexico and Canada could impact shipping
Donald Trump won’t be in the White House until January 20 but is already making global trade waves. The president-elect said that on his first day in office, he will sign an executive order to slap 25% tariffs on all imports from Mexico and Canada and hike tariffs on Chinese goods by a further 10%. Tariffs and trade wars are considered negative for ocean shipping due to demand destruction, although there are nuances. Tariffs can accelerate the timing of cargo shipments, particularly in the case of containerized goods, and can also alter trade routes, increasing tonne-mile demand for certain vessel segments.
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Rotterdam-Singapore green corridor completes bio-methane bunkering pilot
Rotterdam-Singapore Green and Digital Shipping Corridor has completed a bio-methane bunkering pilot in Rotterdam, with plans for a similar endeavor in Singapore. The bunkering trial took place on October 19, involving the supply of 100 tonnes of mass-balanced liquefied bio-methane by Shell to CMA CGM’s LNG-powered containership, CMA CGM Tivoli (IMO: 9961312), the Maritime and Port Authority of Singapore said. The mass balancing tracks the liquefied bio-methane produced from waste-based feedstock and its decarbonization credentials through the supply chain. It enables a transparent chain of custody so the sustainability enhancements can be attributed to the buyer of the bio-methane. Adopting mass balance methodology ensures compliance with International Sustainability and Carbon Certification-European Union certification standards, Renewable Energy Directive II, and FuelEU Maritime regulations.
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Hapag-Lloyd signs long-term methanol offtake agreement
Hapag-Lloyd has agreed to a green methanol offtake deal with Chinese clean energy company Goldwind. The Hamburg-based container line will take delivery of 250,000 tonnes of green methanol each year, with volumes expected to be delivered from 2026. The deal is for a mixture of bio- and e-methanol, Hapag-Lloyd said, and it will save an estimated 400,000 tonnes of CO2 equivalent every year. Beijing-headquartered Goldwind plans to build a new green methanol factory adjacent to an existing project in Hinggan League, Northern China.
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Transpacific trade in holding pattern as Asia braces for Trump tariff storm
Transpacific shippers remain in a wait-and-see approach on Donald Trump’s tariff policies, with the expected surge of early shipments still absent amid a weak freight market. Expectations for cargo front-loading ahead of new US tariffs have been tempered by indications the new administration won’t carry through on initial plans for 60% tariffs on China plus a blanket 10% on imports from other origins, said Linerlytica in its latest weekly report. Last week, Trump threatened 25% tariffs on Canada and Mexico imports, plus at least a 10% hike on China. Linerlytica said the latter figure is significantly lower than the extra 60% Trump initially proclaimed on Chinese goods. It also viewed this recent move by the US president-elect as a signal that his global tariff agenda may not materialize.
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Wan Hai and ONE join forces on China-US west coast trade
Taiwanese carrier Wan Hai Lines has partnered with Premier Alliance member Ocean Network Express to launch a direct service, the PS6, connecting East China to the US West Coast beginning in February 2025. Wan Hai said in a statement that the service, introduced through a slot-sharing agreement, will enhance the two partners’ transpacific offerings. Wan Hai has been a standout performer in the transpacific trade. Alphaliner’s data shows its market share reached 3.1% last month, with a remarkable 39.3% year-on-year growth in the trade. The launch of the PS6 service reflects Wan Hai’s strategy, traditionally focused on intra-Asia markets, to expand its footprint in the competitive transpacific trade lane.
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Methanol-to-H2 start-up has a plan to power ports
Methanol could help provide green energy for ports lacking shore power, according to US start-up e1 Marine. The Oregon-based company makes generators to convert methanol to hydrogen that can be used in fuel cells. It could be useful in port applications, inland shipping, and auxiliary power on bigger craft. Hydrogen is a promising replacement for fossil fuels but is hard to store and transport. Ports do not like hosting large, high-pressure hydrogen tanks, e1 Marine executive director Dave Lee said. However, e1 Marine’s technology could fix this by generating the hydrogen on demand, where it is used. Lee said methanol would be more available in more places, pointing to Maersk’s big methanol investments.
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