Slowing down for sustainability means sacrificing capacity
By Marcus Williams2022-06-29T10:18:00
Carmakers already struggling to find outbound capacity could face further cuts because of stringent sustainability regulations affecting road and ocean transport, as discussed at this years FVL North America conference
In January next year the International Maritime Organization (IMO) is introducing a Carbon Intensity Indicator (CII) that will rate cargo vessels that are above 5,000 gross tons (GT) and trade internationally according to their operational output of greenhouse gases. Individual vessels will be rated on a scale from A to E based on size, utilisation and speed. Until the industry finds the magic formula for zero-emission fuel and propulsion that simply means slower steaming.
“To cut a long story short, it means we will all have to slow down our ships,” said Flavio Batista, senior vice-president of sales America at Wallenius Wilhelmsen, and that means artificially taking capacity out of the market.
“We don’t have final numbers yet… but looking at the fleet we have now it could be as much as 20% of capacity that will be taken out just by reducing speed,” he added.
According to Batista, this is simply adding to the capacity problems the finished vehicle sector is already feeling and the loss of an additional 20% capacity will put more stress on the outbound supply chain.