Tag Archives: supply chains

LNG bunker supply chain emissions

It’s difficult to quantify the emissions load generated by LNG bunkering for oceangoing ships. Rystad Energy has released a study of this from Well to Tank.

Liquefied Natural Gas (LNG) is currently an important maritime fuel as the industry tries to transition to a lower carbon footprint. LNG-fuelled ships now account for over 20% of the current order book.

The question is this: how does LNG perform in terms of greenhouse emissions? One needs to consider how it’s produced (Well!), transported, liquefied, stored, and processed for bunkering, as well as the loading process. That’s the study’s focus.

They found 13.9 grams of carbon dioxide equivalent per megajoule heating value, known as LHV. This broke down into 4.2 gCO23/MJ, for upsteam; 1.3 for transportation and processing; 5.9 for liquefaction; 1.8 for shipping and distribution; and 0.7 for bunkering operations.

The total of 13.9 compares with the FuelEU Maritime figure of 18.5 gCO2e/MJ, which Rystad says is too high.

A key quote from the article:

Rystad’s Vice President Emissions Research, Patrick King, commented: “Our analysis is based on asset-level data that ties specific gas fields to liquefaction facilities. This approach, supported by satellite-detected methane plume data and reported asset information, gives a more accurate picture of the LNG actually used for bunkering, rather than relying on outdated or overly broad averages.”

It seems like the right way to do the analysis.

The study is available from Rystad Energy or asoffered by Rystad

Seatrade logo

Paul Bartlett, Correspondent

September 4, 2025

https://www.seatrade-maritime.com/lng/rystad-releases-findings-on-lng-bunker-supply-chain-emissions

Pacific-Atlantic Rail Link: A Game Changer for China-Brazil Trade

The announcement of an agreement to build a Pacific-Atlantic rail link across South America is important to global commerce. If it actually succeeds, it would allow many goods to skip the Panama Canal in transit from Brazil to the Far East, including China.

The idea seems to be a combined intermodal and bulk rail line from the East Coast of Brazil to Chancay Port in Peru.

China of course imports bulk grain and oilseed cargoes from Brazil. Brazil also is home to some manufacturing which might be cheaper than Chinese manufacturing has become. And Brazil consumes many manufactured goods now as the country develops. China is an ideal source for these.

It’s called the “Two-Ocean Railway”. It should cut the China-Brazil trip to 10 days.

China is already investing $1.3B in Chancay Port in Peru. This railway will create guaranteed demand for the port’s capabilities.

In the light of President Trump’s tariff machinations and his threats surrounding the Panama Canal, it’s wise for the Chinese to create an alternative.

Brazil and China are an ideal trading pair to show comparative advantage at work; each nation produces what it’s best at, and trades for the other goods. The result produces lower costs for both parties, even including transport costs.

Katherine Si, China Correspondent July 15, 2025

https://www.seatrade-maritime.com/ports-logistics/china-and-brazil-plan-pacific-and-atlantic-rail-link

Transshipment and the Vietnam Trade Deal

We know that these trade deals aren’t final. But any deal with tariffs will spawn a lot of transshipment activity. The question always is how much value added is put there in the new country?

The goods may be just moved through the country. This creates a tariff avoidance scheme. This happens even if the goods nominally change hands. Sometimes they don’t even get out of the container.

On the other hand, the goods may be more like intermediate supplies for manufacturing, and be assembled into something else before being exported again. These products may qualify for the lower tariff.

All gradations of these extremes are possible. Each individual transfer must be evaluated for transformation in the new country.

The point of the article below is a good one. Underlying it all is a theory of what tariffs hope to accomplish.

If it’s to reshore manufacturing to the US, that probably won’t happen; instead firms will try to run around the tariffs via transshipment. That has happened for hundreds of years, perhaps thousands. There will be a lot of reshoring talk, to stroke Trump’s ego. There will be a few US investments that may or may not last. But the US economy has developed beyond the manufacturing stage. No one truly wants manufacturing jobs— to get workers, wages will need to be so high that it wouldn’t be cost effective to make most stuff here.

The United States became a maritime power in the 1770-1820 time period by deliberately offering shipping to goods that were trying to evade tariffs and other rules set by European countries.

The trade constraints didn’t work in the long run then and won’t now. People will find a way.

Nick Savvides, Europe correspondent

July 3, 2025

https://www.seatrade-maritime.com/containers/transhipment-key-to-us-vietnam-trade-deal