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Issue 1 2020 - FBJNA


MSC uses biofuel blends to reduce CO2 emissions. (MSC photo)


///ENVIRONMENTAL IMPACT


Transportation Sectors Address Environmental, Pollution Contributions


By Peter Buxbaum


Globalization may have its detractors, but it has fueled the opening of the United States economy to new and emerging markets. U.S. industries—from manufacturing to retail—now rely on multiple sources and modes of transportation. Producing and distributing goods involves transportation over longer distances—and with that, more fuel consumption. As a result, freight transportation has become


Penske was one of the first to acquire an electric Freightliner eCascadia truck. (DTNA photo)


a large contributor to air pollution. According to the Environmental Protection Agency, transportation is responsible for over half of nitrous oxide emissions in the U.S. Heavy-duty trucks are the fastest-growing contributor to emissions, but ocean vessels also contribute their


share—


making seaports a focal point for pollution concerns in their communities. Transportation stakeholders


have begun to implement changes necessary


to make


a difference. New regulations from the International Maritime Organization went into effect


Jan. 1, 2020, mandating that seagoing vessels reduce their sulfur emissions by 80%. Ports are aggressively pursuing investments in rail infrastructure that make cargo transfers more


fuel efficient


and environmentally friendly. Air cargo carriers have been testing biofuels and trucking companies have invested in alternative fuels, electric trucks, and route and load optimization technologies.


Shipping Lines


In December 2019, Mediterranean


Shipping


Company (MSC) became the first major shipping line to use 30% biofuel blends on vessels calling at Rotterdam. “When using such blended fuel, we can expect a 15 to 20% reduction in CO2 emissions,” said Bud Darr, executive vice- president


for maritime policy


and government affairs at MSC Group. MSC’s biofuel initiative use


looks toward compliance with the IMO’s 2030 goals. Of more


immediate concern are the


sulfur reduction mandates that recently became effective. Shipowners can comply with those new IMO regulations by substituting liquefied natural


to power some of its future containerships, while also ordering several scrubbers. CMA CGM and COSCO both signed long-term supply agreements for low-sulfur fuels


“When using [30% biofuel blends],


we can expect a 15 to 20% reduction in CO2 emissions.”


gas or marine


-- Bud Darr, MSC Group gas


oil for


traditional heavy fuel oil (HFO) or by investing in scrubbers, which reduce emissions by spraying water.


exhaust gas with CMA CGM announced that it


will “favor the use of 0.5% fuel oil for its fleet,” will use LNG


in 2018. Maersk is planning on running the majority of its fleet on low-sulfur fuel and to invest in scrubbers. “The purpose of the strategy,” Vincent


said Clerc, chief


commercial officer of Maersk Shipping, “is to mitigate the risk of fuel price uncertainty.”


costs to shippers. Maersk,


Hamburg Süd, COSCO, Zim, Crowley, and the breakbulk carriers Zeamarine and RTM Lines


all announced bunker


adjustment policies designed to recoup some of those costs. “Fuel costs already represent more than 50% of


“[SC’s inland ports demonstrate how ports can] leverage the efficiency and sustainability of rail transportation.” -- Jim Newsome, SCPA


will


Experts say IMO 2020 increase


shipping costs


worldwide by some $30 billion and that carriers will need to pass along a significant proportion of these increased


total operating expenses,” said Nikos Petrakakos,


vice


president of Seabury Maritime, an investment and advisory firm. “IMO 2020 poses an


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