Shipping Industry Emissions

Shipping Industry Emissions Remain Unchecked by International Oversight

The detrimental impact of greenhouse gas emissions is now recognized on a global scale. Regulations have been imposed across a variety of industries in an effort to mitigate the harmful effects of these emissions. Curiously, the International Maritime Organization (IMO), the United Nations’ agency responsible for maritime transport, has yet to take a definitive stance on global industry regulation standards.

According to the IMO, maritime shipping accounts for approximately two and a half percent of greenhouse gas emissions worldwide. Although sea vessels, on average, emit fewer greenhouse gasses than air or ground transport, the impact of maritime shipping is considerable due to the frequent and abundant use of this form of transport in the ever-growing industry of global supply chain management.

Of course, the lack of standard regulations allows for the environmental and health consequences resulting from maritime transport to continue to go unchecked. But it also presents a difficulty for the industry if individual regions or countries take it upon themselves to develop their own standards. This could potentially create a situation in which, because of the variety in regulations, companies that do adhere to best practices around emissions and environmental protection would be at a disadvantage compared to those who pollute freely.

The European Union, for example, has taken a step in the direction of developing its own regulations, requiring that after 2018, large ships must report annual carbon dioxide emissions to regulating government body. The EU points out that many of the operational measures and innovative technologies that could curtail emissions are actually cost effective for the shipping industry, in addition to being environmentally beneficial.

Still, in the absence of uniform global standards, well-meaning siloed requirements could disrupt business as usual for supply chain managers, shipping companies, and the industry as a whole. Stakeholders should stay abreast of any developments, both globally and in their specific geographic areas of business, to ensure compliance with all regulations.

Continue to follow the Jaguar Freight Blog for the latest news and information ranging from logistics to regulatory changes, and so much more!