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MSC confirms long-standing commitment to reducing CO2 emission

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MSC confirms long-standing commitment to reducing CO2 emission. Image: Pixabay
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MSC Mediterranean Shipping Company, a global leader in shipping and logistics, is strongly committed to further reducing CO2 emissions and supporting longer term goals to fully decarbonise shipping and ensure it is a truly sustainable industry.

Young, green fleet

While continuously increasing its TEU (twenty-foot equivalent unit, the size of a regular container) capacity to meet the growing demand, MSC operates a modern, green fleet and is investing heavily in low-carbon technologies and extensive new-build and retrofit programmes to boost performance and minimise our environmental impact. For example, MSC’s fleet improvement program has resulted in a 13% reduction in CO2 emissions per transport work* in 2015-18. Furthermore, the latest newbuilding additions to the fleet – led by MSC Gülsün, the largest container ship in the world – has introduced a new class of sustainable container shipping, with the lowest carbon footprint by design, at 7.49 grams of CO2 emissions to move 1 ton of cargo 1 nautical mile.

* The figure of 13% relates to MSC’s Energy Efficiency Operational Indicator (EEOI). EEOI is a tool set out in the IMO Guideline MEPC.1/circ.684, and is defined as the ratio of mass of CO2 emitted per unit of transport work (unit = gr CO2/Tons cargo/miles)

EEOI-graph. MSC confirms long-standing commitment to reducing CO2 emission. Image: MSC

EEOI-graph. MSC confirms long-standing commitment to reducing CO2 emission. Image: MSC

MSC-TEU-Capacity-Evolution-2015-2018. MSC confirms long-standing commitment to reducing CO2 emission. Image: MSC

MSC-TEU-Capacity-Evolution-2015-2018. MSC confirms long-standing commitment to reducing CO2 emission. Image: MSC

Source: MSC

MSC’s position on reporting CO2 emissions

MSC fully supports reporting CO2 emissions transparently and precisely in the European Union (EU) Monitoring, Reporting and Verification (MRV) system, as mandated by EU legislation. It is however vital that the raw data reported in the system are analysed accurately and take operational realities fully into account, to give a realistic picture of the related emissions.

In this respect, a recently published report by Transport and Environment (T&E) offers an incomplete analysis of these data and therefore does not give an accurate picture of the emissions from the shipping sector. In particular, the T&E analysis fails to take a number of operational aspects of MSC’s services fully into account, and thus does not offer a complete assessment of our role and impact in terms of emissions.

Furthermore, CO2 emissions should be compared on an equal basis. The analysis by T&E focuses on emissions in the EU and, if it is to be fully comparable across shipping lines and industries, should only take into account emissions which actually occurred in the geographical area of the EU.

According to an MSC analysis of its own operational records, only 40-45% of the 11 million tons of emissions reported in the MRV were actually in the EU. To accurately assess MSC’s role in the decarbonisation of shipping, it is vital to take the following points into account:

  • Shipowners are mandated to report consumption and CO2 emission data for voyages starting and terminating in EU ports (including voyages between EU ports). These emissions are calculated based on the last port of call before entering EU or the first port of call after leaving EU. As an example, a ship carrying fruits from the Caribbean to Northern Europe and back needs to report emissions for the whole distance of the trip, even though only part of it takes place in the EU. As a result, the actual emissions in the EU for this particular ship may be up to 65% less than is recorded in the MRV. This is particularly relevant for a global company such as MSC, which operates in all the world’s major shipping lanes.
  • MSC performs its own feedering services, which means these vessels are also included in our total carbon footprint. These smaller feeder vessels transfer containers between larger ships and smaller ports. Other carriers using third party feeders are not held accountable for those emissions. By outsourcing such services, container lines are able to report much lower emission figures, as it is the shipowners’ responsibility to report the emissions in the MRV.
  • MSC is continuously improving energy efficiency and thus mitigating greenhouse gas (GHG) emissions. The Energy Efficiency Operational Indicator (EEOI) gives a reliable indication of a ship’s environmental performance and the ratio of CO2 emissions per ton of cargo MSC moves is among the lowest in the industry. The T&E report ranks MSC as the third most efficient shipping line based on real-world operational efficiency. However, the figure 19.92 included in the report differs significantly from MSC’s own data produced using third-party verified methodology. The global EEOI figure for MSC in 2018 was 14.56 indicating that the gap between this verified figure and the one included in the report is unrealistic. Based on this MSC could rank even higher in the efficiency scale.

Greenest form of cargo mass transport

International shipping, which is already one of the most regulated global industries, facilitates the way we live our lives today. 90% of the goods we use and consume are transported in container ships, including food, fruit, medicines and electronics.

Container shipping is the world’s most carbon-efficient form of transporting goods – far more so than road or air transport.

Co2-breakdown-PWC-2015. MSC confirms long-standing commitment to reducing CO2 emission. Image: MSC

Co2-breakdown-PWC-2015. MSC confirms long-standing commitment to reducing CO2 emission. Image: MSC

MSC confirms long-standing commitment to reducing CO2 emission. Image: MSC

MSC confirms long-standing commitment to reducing CO2 emission. Image: MSC

For example, transporting a shipload of board games for Christmas between Marseille and Rotterdam would produce 2.6 tons CO2 emissions if carried by sea (1 ship). If carried by road, we would need 60 trucks to transport the same amount of board games and the total emissions would jump to 11.5 tons.

MSC plays a crucial role in achieving global economic development and prosperity for many nations and communities. With over 40 years’ experience, we are proud of our role in driving the global economy, connecting people and goods, and our efforts to do all this in a way that is socially inclusive and sustainable. The evolving regulatory landscape and rising expectations of customers, stakeholders and investors present challenges to the shipping industry but are also a positive force that drives progress and creates a shift towards an even more sustainable business.

MSC remains fully supportive of decarbonising the shipping industry. At the same time, it recognises that some major breakthroughs, especially in fuel and propulsion technologies, are needed to shift the industry towards a zero-carbon future.

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Container Shipping Lines

Wan Hai Lines establishes its new office in India

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Wan Hai Lines establishes its new office in India. Image: Unsplash
Wan Hai Lines establishes its new office in India. Image: Unsplash
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Aiming to further enhance service quality and gain a stronger foothold in the Indian sub-continent, Wan Hai Lines has established its India new office in Kolkata in July 2023. Contact details for the new office are as follows: WAN HAI LINES (INDIA) PVT. LTD 3rd Floor, Block C, Apeejay House, 15 Park Street, Kolkata, West Bengal, 700016 TEL: 91-33-4450 4500 According to the 2023 Foreign Trade Policy announced by the Indian Ministry of Commerce and Industry, India’s export trade volume will reach 2 trillion US dollars in 2030.

Therefore, benefiting from government policy incentives and the shifting trend of the global supply chain, India’s status in global manufacturing and international trade is increasing, which is conducive to maintaining long-term high economic growth. And the proportion of global exports has increased significantly. In addition, the continuous economic stimulus policy will help revitalize the domestic economy, and domestic demand is expected to increase significantly. Therefore, Wan Hai is optimistic about India’s future import and export situation. And also through the establishment of a new office to improve the overall operating efficiency.

Wan Hai India Kolkata office held a grand opening reception in the evening of 27th July. During the banquet, there were many important customers & guests. The Kolkata Port Authority, Kolkata terminal operators, feeder operators and important local customers were invited to send representatives to attend the meeting to express their blessings to Wan Hai’s opening of the Kolkata market. At present, Wan Hai has six owned offices in India, namely Mumbai, Chennai, Mundra, and Vizag, Delhi and the sixth office Kolkata office. In addition to directly providing river port services, it will also simultaneously strengthen service links between India and neighboring countries, such as Nepal and Bhutan. It is expected to pursue customer first through continuous expansion in the future and sustainable business philosophy.

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Container Shipping Lines

World’s Largest Container Ship, MSC MICHEL CAPPELLINI

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World's Largest Container Ship, MSC MICHEL CAPPELLINI. Image: MSC
World's Largest Container Ship, MSC MICHEL CAPPELLINI. Image: MSC
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More than 800 guests gathered in a custom-made tent at the MSC Gate Terminal in Bremerhaven to witness the naming ceremony of the latest edition to Mediterranean Shipping Company’s fleet, MSC MICHEL CAPPELLINI, with the ship as the backdrop. Prior to the naming ceremony, MSC signed a Memorandum of Understanding with the Free and Hanseatic Cities of Bremen and Hamburg and their ports, agreeing on the use of shore power for MSC’s vessels in both ports.

MSC MICHEL CAPPELLINI is one of the world’s largest and most fuel-efficient container ships by design. At 400 metres in length and with a 61.5 metre beam, it has a capacity of up to 24,346 TEUs. Despite her magnificent size, her design and technical specifications enable the shipment of more cargo at the lowest carbon footprint per container carried.

The vessel employs a small bulbous bow, large diameter propellers and energy-saving ducts, which will help to further reduce fuel consumption and associated greenhouse gas emissions.

MSC MICHEL CAPPELLINI and her sister ships are also built with an air lubrication system to reduce drag on the hull, as well as shaft generators to yield additional power.

In his welcome speech, MSC CEO Soren Toft highlighted the importance of Bremerhaven to MSC as a European cargo hub: “The ports in Bremen are such an important cargo hub for us in Germany and in Northwest Europe. It is truly a strategic location for MSC, and home to over 370 of our colleagues. However, our connection with Germany goes deeper than trade. This is the third naming ceremony of an MSC vessel since 2015, and the second in Bremerhaven. It is therefore by no surprise that we continue to grow with our customers in Germany.”

Soren continued: “Efficiency and innovation are two drivers that led to the development of the MSC MICHEL CAPPELLINI. Through innovation we seek to shift the boundaries of what is possible and surpass our own industry-breaking milestones, a process of continuous evolution. Both, as a family company and as the leader of our industry, we are very mindful of MSC’s key role in decarbonizing the logistics value chain, and the benchmark we set for others in our industry.”

MSC Germany Managing Director Nils Kahn also highlighted the importance of the ports of Bremen as an MSC location: “We handle more than 1 Mio TEU per year here and run dedicated trains to and from many domestic locations. We are connecting the world from exactly this location with a weekly service to the Eastern Mediterranean, two weekly services to the Far East, three weekly services to South America and Mexico and an impressive five weekly services to North America.”

The ship’s blessing was conducted by Provost Dr. Bernhard Stecker, who has led the Catholic Community Association Bremen since 2019 and is the head of the Catholic Office in Bremen, the liaison office of the Catholic Church to the Bremen Senate and the Bremen Parliament in the state. After the blessing, Godmother Cindy-Jo Cappellini performed the christening of the ship by cutting the ribbon and smashing a bottle of champagne against the hull.

Yellow confetti streamed down, the ship’s horns sounded and MSC MICHEL CAPPELLINI can now travel the world’s oceans.

Memorandum of Understanding on Shore Power Infrastructure

Shortly before the naming ceremony started, Kai Stuehrenberg, State Secretary for Economic Affairs of the Free Hanseatic City of Bremen, Andreas Dressel, Senator for Finance of the Free and Hanseatic City of Hamburg and MSC CEO Soren Toft met for the signing of a Memorandum of Understanding (MoU) agreeing on the use of shore power for MSC container vessels in both ports.

Soren Toft said: “I am particularly proud that we signed a Memorandum of Understanding between MSC, the Free and Hanseatic Cities of Bremen and Hamburg, and their port administrations, to partner and collaborate on the implementation of shore power taking us one step closer to ensuring a decarbonized supply chain for global trade.”

MSC Germany Managing Director Nils Kahn also called on German authorities in Berlin to ensure closer collaboration between German ports on the topic of infrastructure development, citing the MoU signed between MSC and the port authorities as an example of what private-public partnership means for MSC.

Additional speeches were given by Kai Stuehrenberg, State Secretary for Economic Affairs of the Free Hanseatic City of Bremen, Andreas Dressel, Senator for Finance of the Free and Hanseatic City of Hamburg.

The Naming Ceremony

The ceremony was a celebration, highlighting MSC’s commitment to sustainability, sports and the arts. It was moderated by German TV presenter, Jule Gölsdorf. She introduced Boris Herrmann, Germany’s leading yachtsman, world record holder and skipper of sailing team Team Malizia. Boris Herrmann shared his experience from the recent Ocean Race. MSC is a sponsor of Team Malizia and one of the six Official Founding Partners. In front of the 800-guest crowd Boris expressed his gratitude for MSC’s sponsorship and dedication to net zero commitments.

Guests included representatives of local authorities and businesses, customers and journalists. They enjoyed a spectacular performance by Andrea Casta, the famous Italian crossover electric violinist, and Sarah Voss, Germany’s artistic gymnast, all-around national champion and bronze medal winner in the team competition at the 2022 European Championships. The live music and the acrobatic gymnastic performance expressed the very concept of balance between progress and sustainability, humans and nature, present and past.

MSC CEO Soren Toft concluded: “Global trade is crucial for maintaining peace, economic development and growth, and we are serving as a neutral force in the face of the political and diplomatic adversity we see today. Our new 24,000 TEUs-class ships, some of the world’s largest currently on the water, are essential for facilitating and enabling effective global trade. Ultimately connecting cultures, people and continents.“

 

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Container Shipping Lines

ONE announces FLX, a new service for South American reefer shipments

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ONE announces FLX, a new service for South American reefer shipments. Image: ONE
ONE announces FLX, a new service for South American reefer shipments. Image: ONE
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Ocean Network Express Pte. Ltd. announces FLX, a new service connecting the West Coast of South America to the East Coast of North America. The service is set to launch in September 2023. With an emphasis on innovative and efficient transportation solutions, FLX caters to customers looking for reliable South American reefer container shipments.

Flavorful South American Delights Reach New Shores

Many Latin American fruits, vegetables and seafood, such as mangoes, asparagus, shrimp, have been gaining popularity worldwide. As a result, Latin American reefer container transportation has seen a remarkable growth, nearly doubling over the past few years.

Strengthening Our Commitment to South America and Reefer Services

With our reefer services, we have established ourselves as a significant player on the Latin America-Asia route, for which we have earned praise from our customers over the years. To further improve the quality of our transportation services, we are redoubling our efforts by investing in state-of-the-art equipment, including Control Atmosphere (CA) containers and telematics devices.

Unveiling FLX: Expanding New Horizons for Shipments

FLX provides exclusive service, connecting the South America West Coast to the North America East Coast (Florida) with our own dedicated fleet of vessels. The service aims to offer fresh options to our valued customers, including those previously engaged in Asia-bound shipments, while expanding shipping possibilities and streamlining supply chain processes. FLX will launch in September 2023 in preparation for the harvest and shipping season.

Service Details

The FLX service will deploy four vessels in order to ensure schedule stability. This service will connect Callao and Paita (Peru), and Guayaquil (Ecuador) to South Florida with one of the fastest transit times on the market. With excellent options for the transportation of refrigerated cargo, the direct routes include Callao-South Florida in 11 days, Paita-South Florida in 9 days, and Guayaquil-South Florida in 8 days.

Furthermore, FLX provides a direct connection from South Florida to Honduras, in addition to destinations in Colombia, Ecuador and Peru. With hub ports like Cartagena (Colombia) and Callao (Peru), ONE services can be seamlessly connected with other services to/from the United States, East Coast South America, Europe, Caribbean and Asia.

Chilean exporters can also conveniently connect their cargoes via Callao, adding to the route’s accessibility. In summary, the FLX route offers multiple connection options:
Callao – Paita – Guayaquil – Cartagena – South Florida – Puerto Cortés – Cartagena – Callao.

Yu Kurimoto, Managing Director of ONE said, “We aim to share South America’s distinctive flavors with people across the globe. With our FLX and LUX services, we are excited to open new doors for businesses and individuals, enabling them to enjoy the authentic tastes of this vibrant region.”

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