Use of zero-emission fuels may lead to a 50% rise in container shipping expenses

A new report from UK consultancy UMAs examines the potential costs and challenges of transitioning to zero-emission shipping. By quantifying the additional costs for cargo owners to close the gap between traditional and alternative fuels, the report aims to contribute to ongoing industry discussions. UMAs estimates that on some routes, the additional cost for zero-emission fuels could be up to half the current price of moving cargo. They emphasize the need for dialogue and more transparency to address the significant financial burdens required for the shipping industry’s transition.

The report highlights the significant financial burden that early adopters of zero-emission fuels will face and the barriers to market advancement. UMAS’ analysis shows that fuel costs will be a major driver of total ownership costs, with an additional $20 to $30 million in annual expenses for a ship traveling trans-Pacific by 2030. The report also emphasizes the need for increased dialogue and the use of data to plan the industry’s long-term approach, as well as the potential impact of new subsidies and regulatory efforts.

UMAs stresses the importance of addressing the fuel cost gap and suggests that entrepreneurial action may be necessary before regulation increasingly closes the gap. They argue that the report’s findings can guide the shipping industry’s discussion and decision-making, with the full report and analysis available online for further review.

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