Last week, the entire world set its sight on the Suez Canal, a sea-level waterway dividing Africa and Asia, and connecting the Mediterranean and the Red seas. The giant canal, 120 KM long, was obstructed by the Evergiven, one of the biggest ships in the world. The gigantic ship, as long as the Empire State building, or 4 soccer fields, was stuck on one of the canal’s banks, leaving hundreds of other ships in what could only be described as a giant traffic jam.
Constructed by the Otommen Empire in 1859, The Suez Canal provides a more direct route between the North Atlantic and northern Indian Ocean, reducing the journey distance from the Arabian Sea to London by approximately 8 to 10 days, playing a major role in maritime trading, as it is responsible for about 10% of global commercial traffic.
The incident shined a light on what is often a less discussed sector, which many of us know nothing about. But the maritime shipping industry is much more crucial than you might think, both in terms of economic, and environmental impact.
The biggest trader, an industry in the shadows
Serving as the lifeblood of the global economy and responsible for around 80 percent of global trade by volume and over 70 percent of global trade by value, Maritime shipping has been an extensive part of the formation of our world as we know it, and is responsible for the making and breaking of entire empires and kingdoms. Today major waterways, including the Suez Canal still play an important, integral role in the global economy, as maritime shipping is the main way to transfer heavy materials including coal, ores, and grains, such as coal, coke, ores, and grains. The global industry is worth $201 billion USD, and is projected to reach $220 billion by 2026.
The common perception is that the industry is low on air pollutants because it is the most efficient transport method, especially when compared to air freight. However, since it accounts for the vast majority of global shipping, emissions are actually very substantial, accounting for about 3% of global carbon dioxide emissions, and could make the 6th place if added to the list of the world’s biggest greenhouse gas (GHG) emitting countries. A report by the International Maritime Organization (IMO) predicted that these emissions may increase by 250% by 2050 if major changes are not made.
And it doesn’t stop with GHG. The industry’s main pollutants are SOx and NOx, two gases with adverse effects on the ozone layer, resulting in the greenhouse effect. Another important issue is Black Carbon emissions, tiny black particles, produced by combustion of marine fuel, and accounting for 21% of CO2-equivalent emissions from ships, making it the second most important driver of shipping’s climate impacts after carbon dioxide. Vessel discharges also present a risk to marine life and coastal communities, as just a few months back the MV Wakashio oil spill off Mauritius provided the world with a strong reminder of the threats of major oil spills.
While the impacts of pollution and illegal discharges are felt worldwide, maritime shipping is subjected to far less stringent environmental demands than those placed on land-based or air-based transportation.
All hands on the sustainable deck
Even though the industry’s sustainability index is far from receiving the same global attention as other transport methods like air freight, there are vast efforts to meet decarbonization goals. The IMO has set ambitious targets, citing "Sustainable shipping for a sustainable planet” as a main theme of operations.The general goal is that by 2030, carbon dioxide emissions should be reduced by at least 40% from 2008 levels, and by 50% by 2050, measured by emissions per transport work, or the amount of carbon produced per ship. However, no definite decision has yet been made on how to achieve those goals, and in an industry that is highly dependent on old vessels, fossil fuels, and ancient structures of operations, it is that much more difficult to secure new, less polluting paths.
According to an OECD De-carbonising Maritime Transport report, a total decarbonization of the sector would be possible by 2035 by focusing on technological measures, through improving energy efficiency and storage, operational measures, including reduction of the vessel speed, and renewable energy, by developing the use of biofuels, and renewable sources.
And as multiple researchers found, solar power could account for up to 12 percent of said reduction. Photovoltaic energy can deliver electricity for the on-board power demand. Solar panels can either be installed horizontally on deck or vertically in an arrangement with certain sail types and the technology can be applied jointly with wind technology in a mast-like structure to increase the available area for energy capture from the sun. As the efficiency of solar depends on meteorological conditions, and the sun is a more available resource in zones close to the equator, investment in the field would be more viable for companies and ships operating in these zones.
According to IRENA, added advancements in the industry should include conventional and advanced biofuels, other synthetic fuels, such as methanol, hydrogen and ammonia (NH3 ), battery-powered electric propulsion, and efficiency improvements achieved through the harnessing of other renewable energy sources.
Shipping is one of the only industries projected to grow its total emission percentage in a business as usual scenario, and if serious action is not taken now it will account for over 10 percent of global emissions by 2050. Global criticism regarding the slow rate of progress under the IMO process has been increasing in recent years, with various countries and NGOs looking for a different approach, and maybe a different subsidiary to steer the ship. It remains to be seen who will take definitive action but one thing is clear - renewable energy is key and those who will develop new technologies for the industry will have adverse effects on all of us.
The writer is an entrepreneur and investor, leading sustainability-driven companies in Africa and the Middle East