Page 8 - Al-Rashed Newsletter December 2021

SHIPPING WORLD

Global shipping industry needs $2.4tr to achieve net-zero
emission by 2050
The global shipping industry will need $2.4 trillion to achieve net-zero
emissions by 2050, with around $500 billion required by 2030,
according to analyst estimates. Ocean freight costs are likely to
remain high in 2022 as investors and regulators scramble to
accelerate decarbonization of the shipping industry and companies
grapple with green financing, sources say.
Shipping, which transports about 90 percent of the world trade and
accounts for nearly 3 percent of the world’s CO2 emissions, is under
growing pressure from environmentalists to deliver more concrete
action including a carbon levy. The International Maritime
Organization, the UN’s specialist shipping agency, has said it has
made progress on short-term greenhouse gas reduction measures.
But that timeline is not seen as fast enough by environmentalists and
a number of the IMO’s 175 member countries.

Shipping lines vertically take-off as 'integrators' – a threat to air
cargo?
Maersk is reportedly in the market for a top five forwarder as huge
shipping line profits – a combined Q3 ebit of $37.24bn – are
expected to disrupt the logistics industry, with air cargo taking a
particular interest in the outcome.
Maersk’s well-publicised acquisition of Senator, two 777Fs and
leases on three 767-300Fs for its Star Air subsidiary, as well as its
move into forwarding, could well disrupt the market.
Then, of course, there is CMA CGM’s decision to set up its own
airline, having acquired four A350Fs, two 777Fs and four A330Fs. As
owner of Ceva Logistics, like Maersk, the line is looking to become a
one-stop shop. Evergreen, which has ship orders which will double
the size of its fleet (it ordered 24 ships for some $1bn in September,
and 20 in March, for $2.6bn) owns EVA Air, which made a profit in
the third quarter and currently has six 777Fs with one on order.
But with Maersk and CMA’s more aggressive moves, will the market
look more closely at other integrations?
While Maersk’s and CMA’s moves are nothing new, the amount of
money and competition in the market is.

DID YOU KNOW?
The circulatory system is almost
100,000 miles long
There’s enough gold inside Earth to .
coat the planet
Japan has one vending machine for
every 40 people

Source: www.arabnews.com, www.loadstar.com