Maritime Transport 2023 : Review
The United Nations Conference on Trade and Development (UNCTAD) has released the Review of Maritime Transport 2023, highlighting the Issue of Greenhouse Gas (GHG) Emissions from International Shipping and Challenges in Decarbonization.
Highlights of the Review:
- GHG emissions from international shipping were 20% higher in 2023 compared to a decade ago.
- The shipping industry contributes to over 80% of the world’s trade volume and nearly 3% of global GHG emissions.
- Containerized trade is expected to grow by 1.2% in 2023 and further by 3% between 2024-2028.
- Oil and gas trade volumes showed robust growth in 2022.
- Early in January 2023, commercial ships were on average 22.2 years old and more than half of the world’s fleet was over 15 years old.
- As the average age of the world fleet is increasing, it raises concern that alternative fuels are not yet available at scale and are more costly, and the ships that can use them are also more costly than traditional ships.
- 8% of the global fleet uses conventional fuels like heavy fuel oil, light fuel oil, and diesel/gas oil.
- Only 1.2% are using alternative fuels, mainly LNG, LPG, methanol, and to a lesser extent, battery/hybrid. However, progress is underway as 21 % of vessels currently on order are designed to run on alternative fuels, notably LNG, LPG, battery/hybrid, and methanol.
- Decarbonizing the world’s fleet by 2050 could require annual investments ranging from USD 8 billion to USD 90 billion. Full decarbonization could double yearly fuel costs, necessitating a just transition for the sector.
