Tag Archives: Shipping

Green Corridors Hit ‘Realization’ Stage: The Zero-Emission Hurdle

The Getting to Zero Coalition and the Global Maritime Forum have issued a new report At a Crossroads: Annual Progress Report on Green Shipping Corridors 2025. Green shipping corridors are a very impactful way of moving toward zero emissions in the maritime area. They can coordinate many players by providing a specific attainable goal— zero emissions on a specific route for specific ship types. These corridors are independent of efforts by the EU to create incentives and penalties for carbon emissions and reductions, and of efforts by the International Maritime Organization (IMO) to reach a consensus on rules and measures for intrnational ocean shipping. Many times they are organized by specific ports and specific ocean carriers. Often they try to focus efforts on supply chains for specific fuels at those ports.

I think these efforts are extremely important. They can show how to provide reasonably priced fuel supply chains and how to coordinate investors, ocean shipping players, and financial institutions as well as governments. These experiments need to be tried.

The report has been published since 2022, effectively the beginning of the green shipping corridors movement. Steady gains have been made, and today there are 84 initiatives catalogued, with 305 stakeholders. 25 more initiatives have been recorded.

Source: Annual Progress Report on Green Shipping Corridors, 2025.

An interesting section discussed progress at the four corridors that have reached the highest stage in the journey: the Realization stage. Three of them are short-sea routes in Europe. The longest runs bulkers from Australia to China and other Far East ports.

  • Stockholm-Turku ferry, Finland to Sweden, biomethane;
  • Vaasa-Umeå ferry, Finland to Sweden, biomethane;
  • Australia-East Asia bulk carriers, iron ore, ammonia;
  • Oslo-Rotterdam container ships, hydrogen.

I found it interesting that the three short routes fund the difference between green and dirty fuels by entering pooling agreements to sell credits to other shipping lines, under the EU policies. The long ammonia route alone is driven by private firms involved in the trade, to help them meet dramatically lower emissions goals, with fuel costs not funded but expected to drop to a reasonable level as the infrastructure is built out. China, Korea, and Japan all have goals for reduced emissions from shipping which the iron ore route will help with.

Four recommendations emerge from the report’s assessment of the green corridor potential and progress.

  • Pursuing strategies to break the inertia and keep the momentum;
  • Connecting cargo owner willingness to pay to the corridors;
  • Taking an active stance at the IMO;
  • Tapping into or replicating emerging national policy instruments.

Significant issues for now are:

  • Delay of the IMO Net-Zero framework; participants may wait for more clarity.
  • Will the cargo owner be willing to pay for green shipping on the corridor? The evidence so far is not good.
  • Influencing public policies to support investment and regulation.
  • Staying focused on truly green corridors that deploy zero-emission assets rather than fossil fuels, do it early, and iron out the kinks.

This chart shows the right and wrong approaches:

Source: Annual Progress Report on Green Shipping Corridors, 2025, page 25

The study is available in PDF at this link. It contains an Appendix listing all the current Green Corridors in the portfolio at present.

I was very happy to read this summary of the state of green corridor adoption. Keeping this movement going will play an important part in maritime decarbonization.

Gary Howard, Middle East correspondent November 27, 2025

https://www.seatrade-maritime.com/green-shipping/first-four-green-corridors-hit-realisation-stage

Chinese ships dropped from U.S. routes

It seems that there is enough extra capacity in container shipping carriers’ fleets so that Chinese-built or Chinese owned ships need not be used on Asia-Pacific routes. Carriers have already announced plans to redeploy Chinese-built ships to other routes. So these shipping lines won’t be paying the US port access fees Trump put into place.

Will anyone be paying them? That’s the question now. The Trump administration’s estimates of the revenue these charges will bring in are way too high. No big money for US shipping improvements.

It’s another example of international ocean carriers and shippers’ immense innovativeness when a barrier to trade is erected. These entrepreneurs will always find a way around the barrier. One example here is ships calling at Canadian ports like Prince Rupert or Mexican ports like Ensenada instead of their US counterparts, avoiding the fees, but still able to provide good service via rail into US customers.

Something similar will happen with US tariffs. Enterprises will find a way around the rules.

That’s been happening since the dawn of navigational history, if not before. The American Revolution was in part about avoidance of requirements imposed by England on the shipment of goods between England and its colonies. The American cargo fleet, run by entrepreneurial sea captains and shipping firms, was an end-around the British shipment rules. Imposing those rules made the Americans mad, and added to the furor about independence.

With the Trump tariffs, too, international commerce will find a way. The result will be much lower tariff fee collections than Trump’s ridiculous projections. It won’t pay for much of anything, let alone trillions. We’re only seeing big numbers now because shippers get caught in the uncertainty; thinking the tariffs are off, they ship the goods, but by the time the goods arrive there’s a tariff again. But once burned, twice shy!

We haven’t seen big declines in Asia-West Coast trade yet, even though container unloadings at the West coast ports are down somewhat. But they are coming. Once firms get serious about minimizing landed cost, shipments could drop another 30% or more. And firms will make sure what they do have to ship is paying lower rates, even if they need to shift the source to another country.

The long-term lesson of history is that Tariffs are a weak tool for boosting a nation’s interests. Most often they wind up just making folks in trade mad, and making them less likely to support the tariffing nation’s interests in any way.

Stuart Chirls Friday, September 12, 2025

https://www.freightwaves.com/news/rates-spin-as-chinese-ships-dropped-from-u-s-routes

How Ultra-Large Container Ships are Transforming West Africa

Ultra-large container vessels are coming to West Africa. There is pent-up demand for goods in West Africa and throughout the continent. That’s because African economies are slowly improving, creating more consumers and businesses with money to spend.

Infrastructure to handle the ULCVs has been in short supply, but after considerable investment over the past few years, the giants can now land in numerous African ports.

With the impending container charges imposed by the US on containers arriving at its shores, more carriers and shippers are looking for ways to avoid landing in the US. Increasing West African trade is a natural way to use that capacity.

MSC is a major player in this trade. Their situation is helped by the fact that MSC has partial interests in port terminals in key West African locations, as the table below from the article shows. Tema is located in Ghana, Lome in Nigeria, Abidjan in Cote d’Ivoire, and Kribi in Cameroon. MSC has investments in Africa Global Logistics, which operates terminals at three of these ports; and a share in TIL, which has a terminal in Lome.

It’s good to see West Africa getting better access to the world’s goods. Trade improves the lives of both partners, exporter and importer.

Gavin van Marle  04/06/2025

https://theloadstar.com/asia-west-africa-ulcv-deployment-opens-new-markets-for-carriers