Tag Archives: supply chains

Inditex partnership with Maersk shows it has designs on greener transport

The announcement by Maersk and Inditex, the parent of Zara, indicates the kind of cooperation we need to reach climate control goals. Both firms have 2040 target for zero emissions. Inditex is a large retailer that sources around the world, and Maersk can carry the goods. And Maersk’s choice of green methanol as a fuel gives it a running start on reaching its goals. So the combination is a significant one.

Both firms are also high-profile, and this sends a message to others that controlling maritime logistical emissions is important, both to investors and customers, and to the world’s citizens.

Goals such as those of the International Maritime Association (IMO) cannot be reached without major cooperative efforts that bring economic forces to bear. As economies of scale develop, so will technology and business interests to support it.

By Charlotte Goldstone 16/10/2023

Inditex partnership with Maersk shows it has designs on greener transport

Bulk carriers and containerships moving at slowest speeds

Slow steaming is a good way to save on fuel costs and meet the new IMO requirements. So ships have slowed down. But I was amazed at the graph below, showing a trend for quite a while.

Slowing down is an important way of cutting CO2 emissions from fuel oil. It also implies that more ships are needed to meet planned sailings on a scheduled route. It’s a deliberate reduction of individual ship ‘productivity’, since fewer paid cargo-carrying trips can be made in a year. But it may be a better fit with the demand for shipments right now, and it might result in fuller vessels.

We should remember that slow steaming will not eliminate CO2 emissions problems; it’s a stopgap at best. New types of power with very low or zero emissions through their life cycle well-to-wake must be developed. The investments have to be made.

Sam Chambers October 2, 2023

Bulk carriers and containerships moving at slowest speeds on record this year

Cars-in-containers innovation boosts capacity

There is a shortage of ro-ro (roll on roll off) capacity for moving vehicles by sea. One possibility to move the cars is to put them into containers and ship them on container ships. But you can only get so many into a container – two per (twenty-foot equivalent unit) TEU or four in a forty-foot container.

One solution would be to find a way to pack them tighter. And that’s what DP World, the large port operator, has done for voyages from China to Turkey. They can now get three Chery vehicles in a container.

Chery Automotive is a major Chinese car manufacturer, with a portfolio of ICE, hybrid, and all-electric vehicles. In July, they imported 10,000 SUVs into Turkey from China using this method.

Turkey is a big market for Chinese cars, but it’s also a gateway to Europe. Cars brought to Turkey could be sold on into European countries.

Packing of containers has always been a way to avoid shipping ‘air’ (empty space). But one issue is the incidence of fires on ships from lithium battery explosions. These explosions have become quite frequent. It’s due to the heat and close packing. So far, ro-ro ships have suffered most, though there have been lithium battery fires on container ships, due to shipments of other battery-powered equipment. Adding large numbers of cars will make the risk greater.

A TT Club risk management director noted that automakers are simply trying to get more energy into batteries, not investing in how to reduce the danger from shipment. They need to focus more on the risk in their designs.

Here’s a picture of the stacking. It’s not very clear, but you can see the rack.

By Charlie Bartlett 03/10/2023

Cars-in-containers innovation boosts ro-ro capacity for DP World