Sustainable shipping has gained significant traction in recent years due to its dual role in addressing climate change and fulfilling companies’ environmental, social, and governance (ESG) goals. Companies are adopting technologies and operational measures not only to comply with carbon emission regulations but also to meet their own sustainability targets. This shift towards sustainability is driven by the recognition of its broader competitive benefits.
Consumers increasingly appreciate efforts to reduce emissions and minimise wasteful packaging, leading to enhanced brand reputation. Additionally, companies realise cost savings through lower fuel consumption and reduced inventory costs. Technologies are being utilised to help shippers reduce supply chain emissions, demonstrating how their contributions to sustainable shipping can positively impact the world.
Traditionally, shippers relied on fossil fuels and non-compostable packaging for reliable transportation. However, with stricter carbon emission regulations and escalating climate change warnings, the supply chain stakeholders are finding that mitigating climate change does not necessarily equate to financial loss. By integrating creativity and innovation, companies can achieve the triple bottom line of people, planet, and profit, as defined by Harvard Business School. Sustainable practices might include opting for low-carbon fuels, monitoring emissions, and using artificial intelligence to optimise routes and enhance efficiencies. Such measures not only help comply with regulations from the European Union and the United States but also drive operational improvements.
Sustainable shipping offers cost benefits beyond regulatory compliance. Improved fuel efficiency, reduced emissions, and streamlined operations contribute to significant savings. Technological tools, such as software solutions and APIs, aid in finding efficient transportation routes, reducing fuel consumption, and lowering emissions. GPS tracking and advanced algorithms help adjust routes based on weather conditions, distances, and vessel performance, further enhancing fuel efficiency and reducing emissions.
Adopting sustainable practices also enhances a company’s reputation, attracting environmentally conscious customers and boosting brand value. It opens new markets and partnerships, particularly those adhering to stringent environmental standards.
Advanced tools to support shippers in their sustainability initiatives include route optimisation algorithms that consider vessel characteristics, weather conditions, and port congestion to recommend the most efficient routes, minimising fuel consumption and emissions. Monitoring tools track carbon footprints in real-time, helping shippers identify areas for improvement. Emissions tracking allows for comparison across different routes, facilitating informed decisions to reduce environmental impact. Integrated data analytics provide insights into sustainability performance, helping shippers optimise operations and reduce emissions. Accurate distance information, fuel consumption monitoring, CO2 estimation, and deviation cost computation aid in holistic emission reduction strategies.
Sustainable shipping is not only an ethical obligation but also a strategic business move. Eco-friendly practices offer benefits beyond environmental stewardship, including cost reductions, enhanced reputation, and access to new markets. Embracing sustainability in shipping is a win-win for businesses and the environment.
Quadrise plc (LON:QED) is an energy technology provider whose solutions enable production of cheaper, cleaner, simpler and safer alternatives to fuel oil and biofuels, proven in real world applications. Quadrise technologies produce transition fuels called MSAR® and bioMSAR™, which allow clients in the shipping, utilities and industrial sectors to reduce carbon emissions whilst also saving costs.
