IMO adopts new emissions measures
IMO Marin Environment Protection Committee has adopted operational and technical efficiency requirements for international shipping, which will come into effect in November 2022, but begin applying in 2023.
One of the core elements of this package measures is the Energy Efficiency Index for Existing Ships, which will force existing vessels to improve their efficiency on par with newbuilds that are already bound by such requirements. The other key measure of the package is the Carbon Intensity Indicator. It will force ships of 5,000 gross tons and above to improve their carbon intensity annually. It was agreed that ships should improve their annual CO2 intensity by 2% between 2023 and 2026, and rate from 2027 to 2030 will be decided by 2026.
Some member states were disappointed at the measures and criticized the its phased approach and called for higher annual reduction requirements.
Carriers’ responses to IMO carbon intensity measure
A mandatory new measure to cut the carbon intensity of global shipping, formally adopted by the IMO, received a cautious welcome from container carriers Friday.
According to Maersk, although important progress was made at the IMO’s MEPC 76, the meeting also exposed a “fundamental divide” between IMO member states on how to cut GHG emissions.
A spokesman for Hapag Lloyd said that “While we appreciate the measures agreed at MEPC 76, it remains obvious that R&D around zero-carbon technologies and fuels remains a crucial point and [there is an] urgent need to pace up and expand at the next IMO MEPC meeting in November 2021,”
Yantian resumed full operations
Yantian Port, a major export hub in Southern China, is poised to resume operations after having been largely closed for more than a month. While the resumption of operations will bring some relief to the stretched supply chain, the resulting ripple effect is likely to continue in the coming weeks, according to industry experts.
Carriers struggle to improve service levels while profits soar
Carrier profitability and service levels are diverging further this year. Near-record US import demand in the first quarter pushed the profitability of the world’s main carriers to $16.9 billion while service levels on the trades out of Asia never surpassed 25 percent, even before a flare-up of port congestion in Southern China.
Ocean carriers warn of tight supply for equipment and forwarders forecast the spot market rate will continue to increase
The ocean carrier consortium that oversees use of US freight equipment has issued an “urgent” warning to shippers and logistics providers that containers and chassis will be in extremely short supply around the July 4th holiday, asking them to turn around equipment quickly to alleviate shortages.
In addition, forwarders also warn strong volume and limited capacity extending into next year. They encourage European importers from Asia to lock down contract rate or face spot rates that are likely to rise higher than the recent record level.
TradeLens’ expansion gives shippers direct access to China port data
TradeLens, the Maersk- and IBM-led container visibility and data platform, has enlisted more than 10 port authorities and logistics services providers in China as participants, which enables direct access to data from terminals and cargo depots in China.
In addition, Hapag-Lloyd and Ocean Network Express (ONE) have completed their respective integrations with TradeLens. Consequently, five of the world’s top six carriers, including MSC and CMA CGM, are now users of TradeLens.