Coastlink post event release 2023

The second day of the Coastlink conference in Liverpool opened with a stark message from Maersk general manager David Browne in his keynote address.

“The science is clear – we face an emergency. We can and must decarbonize logistics.”

He also threw down a challenge to the International Maritime Organization’s Marine Environment Protection Committee (MEPC), where the IMO’s revised IMO GHG Strategy is due to be considered in July.

Describing the IMO’s Net Zero plan towards 2050 as a bit ‘sketchy’, he said he said of the MEPC: “I hope to see much greater ambition than the initial GHG strategy and a strong recommendation of what milestones need to be achieved, then supported and approved by governments.”

However, he said: “That will not stop us [Maersk] going forward and taking our own actions and ramping it up, because we have to deliver our goal of Net Zero across our whole business by 2040.”

The fleet is the right place to start, but Maersk is taking it a step further and looking to decarbonize across the whole end-to-end supply chain, taking in all the products and services it offers through the supply chain, said Browne – and that includes the use of other lines’ vessels for some shipping.

Because of the size of its fleet, Maersk is in a position to assist the industry in moving forward on decarbonization and future fuels, noted Browne.

Maurice Delattre, area manager, the Port of Amsterdam, stated “Every port needs to have a clear strategy and vision in place for sustainability and energy transition.”

Explaining the Port of Amsterdam’s ambitions as a hub for alternative energy production, he noted that the port has reserved 80 hectares of land solely for the development of bio/synthetic fuel and the circular economy.

“Why are we focusing on these activities? Because of the key characteristics of our region means an urgency to accelerate the energy transition.”

The region’s strong industrial clusters, including energy-demanding steel production, port activities including bunkering, and the massive aviation operations at Schiphol are all completely dependent on fossil fuel, said Delattre. For example, 4m tonnes of aviation fuel a year is supplied by pipeline to the airport.

“With this in mind we as a port work on how we can make sure to get rid of those dependencies in the future, together with our partners.”

The industry is under huge pressure, he said. “The port is not about generating double-digit growth anymore – it is about generating value for society.”

The Port of Amsterdam has been announced as the host of the 2024 Coastlink conference. Delattre said: “We are beyond excited about the next conference and look forward to hosting Coastlink.”

International shipowners’ association BIMCO is famous for creating a range of charter party agreements that are central to the way the global shipping industry works – but Grant Hunter, BIMCO’s director, of standards, innovation, and research, told the Coastlink audience that some of the standard bi-party contracts go back 100 years and are not fit for today’s industry.

“They can create inefficiencies in our industry that we need to iron out,” he said. “We need to work with the entire supply chain pipeline, not just between shipowner and charterer. There is no point in having an agreement if it is not aligned with what’s in the sales contract.”

Hunter said more joined-up thinking was needed to make shipping more efficient.

Digitalization is inextricably entwined with decarbonization, said Hunter. Meanwhile, the industry also needs to focus on contractualization. “We need to find ways to make shipping more efficient by the business model that we use.”

Collaboration is central to it all, he said. “We cannot reduce emissions from shipping if it is just left to the owner. We have to think about a brand new model for shipping and move away from the charter parties of old.”

Instead, he said a new ‘holistic’ business model is needed for the 21st century, providing efficient and inclusive shipping.”

Hunter made his comments during a panel discussion on ‘Driving Efficiency through Data and Port Collaboration’ on the final day of Coastlink 2023.

Coastlink 2024 will be hosted by the Port of Amsterdam on 24-25 April next year.