Spot Rate Slump Threatens to Sink Carrier Profits
Container spot freight rates on the main east-west deepsea trades witnessed more declines this week, as a combination of weak demand and excess supply of slot capacity prevailed.
Ocean Network Express (ONE) is making strides towards its goal of net-zero emissions by 2050 with the recent approval in principle (AiP) for an ammonia dual-fueled containership.
This development, coupled with the company’s recent investment in 12 methanol dual-fueled vessels, represents significant progress in ONE’s green strategy.
The 3,500 TEU vessel, which has just received AiP, is the result of a collaborative project between ONE, Nihon Shipyard Co., Ltd. (NSY), and classification society DNV. The project was established in late 2022 and has been a focal point in ONE’s study of ammonia as a zero-emission alternative fuel.
ONE’s research into ammonia, outlined in a roadmap developed in 2022, has led to its participation in an ammonia bunkering pilot safety study led by the Singapore-based Global Centre for Maritime Decarbonisation. The study aims to inform regulatory guidelines for the safe handling of ammonia fuel in shipping.
“Ammonia fuel has great potential for reducing GHG emissions compared to conventional marine fuels and remains a primary focus of our research. We are pleased with the progress made and will continue our study on ammonia,” said Koshiro Wake, Senior Vice President of Corporate Strategy & Sustainability Department at ONE.
According to DNV’s Alternative Fuels Insight (AFI) platform, ammonia was the third most-popular alternative fuel for new vessels ordered in 2023, following LNG and methanol. Despite being considered one of the most promising fuels for decarbonization, DNV research highlights safety gaps that could impact the speed and success of the transition.
“We are confident that DNV’s rules for ammonia will help our customers to safely adopt this new fuel type once the infrastructure is in place,” said Cristina Saenz de Santa Maria, Regional Manager South East Asia, Pacific & India, Maritime at DNV.
ONE was founded in 2017 from the integration of “K” LINE, Mitsui O.S.K. Lines (MOL), and Nippon Yusen Kaisha (NYK). As the world’s sixth-largest container carrier, ONE operates a fleet of over 230 vessels, offering more than 170 services to 120 countries.
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