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Author Name: Tiffany Lee – Marketing Analyst at FreightAmigo｜9/8/2022

Soren Skou, CEO of the world’s largest container shipping company APM-Maersk, estimated that to meet the IMO (International Maritime Organization) 2023 regulations, the supply and capacity of vessels in the container shipping market would need to grow in the long term.

From January 1, 2023, the shipping industry will need to adhere to the IMO 2023, reducing carbon emissions from existing ships and meeting a new round of vessel efficiency. IMO 2023 is a technical and operational approach adopting three new measures: the Energy Efficiency Existing Ship Index (EEXI), an enhanced Ship Energy Efficiency Management Plan (SEEMP) and the Carbon Intensity Indicator (CII) rating scheme. The CII measure aims to reduce the carbon emissions of international shipping by 40% by 2030, and 70% by 2050 compared with a 2008 baseline level.

According to some shipping companies, after the introduction of IMO 2023, ships will need to slow down by an average of 20% to fulfil the requirement, which is equal to a 20% capacity decrease. The old container ship may be required to retire early. Skou stated that Maersk was examining the potential impact of the IMO 2023 on capacity supply. There are various ways to increase the energy rating of old ships, such as using biofuel or slowing down the speed. If the way they comply is by lowering the speed, they would probably need to increase capacity by 5% to 15% by 2023.

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FreightAmigo’s latest International Parcel Shipping solution, AmiGo Post, provides one-stop access to freight booking, customs clearance, cargo insurance and trade finance. It eliminates the hassle of arranging logistics and allowing you to focus on business development!  Let’s Make Trade Easier!

Read More:

Logistics News – MarineTraffic: JIT Arrival Helps Container Shipping Reduce Carbon Emissions by 14%

Logistics News – Boeing Predicts 80% Boost in Global Cargo Planes by 2041

Sustainable Development – 2023 EU Carbon Border Tax is likely to Hit Enterprises!

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