1. Prof. Kevin Cullinane Director of TRI
The Role of Shipping
in Green Logistics?
Prof. Kevin Cullinane Director of TRI

2. Environmental Effects of Logistics
CO2 emissions / climate change
Air pollution
Pollution of land and water
Noise
Vibration
Visual intrusion
Accidents
Land-take

3. The Greenhouse Gases
The Intergovernmental Panel on Climate Change lists 27 GHGs. The 6 most significant are:
Carbon dioxide (CO2) – by far the most abundant GHG
Methane (CH4)
Nitrous Oxide (N2O)
Hydro fluorocarbons (HFCs)
Per fluorocarbons (PFCs)
Sulphur Hexafluoride (SF6)

4. Geographical Impact of Pollutants
LOCAL
Health & air quality
REGIONAL
Acidification
Photochemical
GLOBAL
Greenhouse -indirect
Greenhouse - direct
Effect PM HM
NH3
SO2
NOx
NMVOC CO
CH4
CO2
N2O
PM – Particulates HM - Heavy metals NH3 - Ammonia SO2 - Sulphur dioxide
NOx - Oxides of nitrogen NMVOC - Volatile organic compounds (hydrocarbons)
CO - Carbon monoxide CH4 - Methane CO2 - Carbon dioxide
N2O - Nitrous oxide
Source: TRL, A. Hickman, MEET deliverable EU ST-96-SC.204 (1999)

6. World Fleet Fuel Consumption
Source: IMO (2008)
Note: The blue diamond shows the IMO consensus estimate and the whiskers the high and low bound estimates

7. CO2 Emissions from Shipping Compared with Global Total Emissions
Source: IMO (2008)

8. But fastest growth in last 10 years + outside Kyoto Protocol
CO2 Emissions from Shipping Compared to Other Modes of Transport in 2005
But fastest growth in last 10 years + outside Kyoto Protocol
Source: IMO (2008)
Source: IMO (2008)

9. CO2 Emissions for International Shipping [million tonnes in 2007]
Source: Marintek (2008)

10. Estimates of Other Emissions from Shipping
Source: Marintek (2008)

11. Sulphur Dioxide Concentrations around the Major UK Ports
Teesport
Liverpool
Hull
Felixstowe / Harwich
Southampton

12. Cardiopulmonary Mortality Attributable to Ship PM2.5 Emissions
Source: Corbett et al (2007)

14. Q. What do we learn from the IMO? A. The IMO tells us that shipping:
carries 90%+ of world trade
underpins the global economy and is essential for sustainable development
is safe and secure
is the most environmentally- friendly and fuel-efficient of all modes of transport

15. CO2 Emissions by Mode of Transport
Source: NTM (Swedish Network for Transport and the Environment)

16. CO2 Emissions by Mode of Transport
Source: ECSA/ICS (2008)

17. We have a problem, so what are the possible solutions?

18. Motivation for Unilateral Action
Directly Profitable: Greater fuel efficiency reduces costs. A ‘Win-win’ ‘Green-gold’ solution.
Revenue Generation: Possible trade-off between cost increase and ill-defined ‘green image benefits’ – sustainable procurement.

19. What Possible Unilateral Action?
Technical:
Improved fuel consumption – hull and engines
More efficient propellers and rudders
Shore power – “cold ironing”
Wind power
Alternative fuels

20. What Possible Unilateral Action?
Operational:
Energy management
Vessel speed reduction
Improved routeing & less waiting
Enhanced fleet management

21. But not all are commercially attractive!

22. Regulation
April 2008, IMO’s MEPC agree sulphur emission caps as follows:
A reduction to 3.50% (35,000 ppm) effective 1 January 2012
A reduction to 0.50% (5,000 ppm) effective 1 January 2020 but subject to a review to be completed no later than 2018
If this review is negative, the effective date defaults to 1 January 2025
Specific ‘Sulphur Emission Control Areas’ (SECAs) have been defined - English Channel, Baltic Sea and North Sea where:
A reduction to 1.00% (10,000 ppm) effective 1 March 2010
A reduction to 0.10% (1,000 ppm) effective 1 January 2015

23. Map of SECAs – English Channel, North Sea and Baltic Sea

24. Outcome of IMO’s MEPC 59 After COP 15:
Agreement on a package of technical and operational measures
Agreement on a work plan to continue developing market-based mechanisms
After COP 15:
Regulatory action by MEPC 60 (March 2010) and MEPC 61 (September 2010)

25. The New IMO Energy Efficiency Design Index (EEDI)
A formula that will enable ship designers and builders to design and construct ships of the future for maximum efficiency and, thus, minimum GHG emissions
A baseline will limit the level of emissions according to ship type, size, etc.
To be made mandatory, probably under MARPOL Annex VI

26. The Energy Efficiency Operational Index (EEOI)
Intended to measure the operational efficiency of an existing ship
It allows efficiency comparisons between similar ships on similar routes and enables the operator to introduce further efficiency measures
With its associated Guidelines, it is meant to be voluntary in nature

27. IMO ‘Guidance on Best Practices’ in Environmental Management Measures
Will provide existing ship operators with practical advice as to the technical and operational means at their disposal to make their ships more efficient
Being developed in close collaboration with the shipping industry
Meant to be voluntary in nature
Conceived as an efficiency management tool for ship operators

28. Is this Enough?
Yes - if demand for international shipping stopped growing. BUT…
World trade is likely to keep increasing, even during a global economic crisis
Emerging economies, such as China, India, Brazil and others generate a growing need for shipping
Many developing countries depend on sea transport for food and basic commodities
Globalisation remains

29. Volkswagen Global Supply Network

30. Dell Laptop: A Global Product
Designed in Texas and Taiwan
Assembled Malaysia
Battery Mexico
Graphics card China
Power adaptor
Thailand
CD / DVD Philippines
Power cord India
Memory card
Germany
Memory stick Israel
Hard Drive
Singapore
Microprocessor Costa Rica
Dell Laptop: A Global Product

31. Is this Enough?
So, the reductions achieved by applying technical, operational and regulatory measures may be offset by an increase in shipping activity over time.
That’s why we may need market-based measures.
Basically, these are economic mechanisms that enable those who emit more CO2 than an established limit or “cap” to buy “credits” earned by those who emit less than the limit. There are two main forms being considered for shipping:
Emissions Trading Scheme
Carbon Levy

32. Conclusions
Shipping is the least environmentally damaging mode of freight transport
BUT The shipping industry has lacked anticipation and been late to engage in corporate social responsibility
International shipping will continue to expand but greater fuel efficiency is key
The market will not solve the environmental footprint of shipping - intervention is required
Regulation is needed at a global level of implementation to all ships – IMO
With no IMO regime in place, regional and unilateral action may proliferate (EU; USA; Japan; Australia)
Care should be taken in developing policy on market-based measures so that the environmental advantage of shipping versus other modes is not undermined
Cooperation and coordination is required with regional powers to achieve a holistic solution

33. Thank You!