Perico, Camilo; Bonello, Jean Marc; Rehmatulla, Nishatabbas; O'Keeffe, Eoin; (2023) Cost of zero emissions container freight shipping: a study on selected deep-sea and short-sea routes. UMAS: London, UK.

Text Perico et al. (2023) Cost of zero emissions container freight shipping- a study on selected deep-sea and short-sea routes.pdf - Published Version Access restricted to UCL open access staff Download (1MB)

Abstract

To set international shipping on an ambitious zero-emission trajectory, aligned to a Paris Agreement 1.5°C temperature target, the sector must transition away from using fossil fuels and consume scalable zero-emission fuels (SZEF). In the emergence phase of the transition, SZEF will be more expensive than the currently used fossil fuels leading to increased shipping costs. In the short term, before IMO policy levers enter into force, addressing the cost gap will require sharing this cost across the value chain, including end customers' willingness to pay for zero-emission shipping services. This report focuses on this as a mechanism to accelerate the emergence phase of shipping’s transition to zero-emission, particularly because progressive shippers can operate ahead of global policy frameworks such as that of the IMO. The additional costs of a zero-emission ship in 2030 ranges between $90 to $450 per TEU on the transpacific route and $30 to $70 per TEU on the Chinese coastal route. Considering this cost differential against average freight rates since 2010 (excluding the pandemic period), it suggests a potential increase of between 9% to 17% in freight rates (cost per TEU) for the Chinese coastal route2 and between 17% and 50% increases in cost per TEU in the case of the Shanghai to LA route in 2030.

Download activity - last month

Export as XMLJSONCSV

Download activity - last 12 months

Export as CSVXMLJSON

Downloads by country - last 12 months

Export as CSVJSONXML

Archive Staff Only

View Item