

Jun 10, 2026
How to Decarbonize Maritime Operations and Supply Chains for Maritime & Logistics Companies
Sustainability Strategy
In This Article
Measure emissions, optimize operations, adopt low-carbon fuels, electrify ports, and use digital tools to cut shipping emissions.
How to Decarbonize Maritime Operations and Supply Chains for Maritime & Logistics Companies
Reducing emissions in maritime operations is no longer optional - it’s urgent. The shipping industry contributes 3% of global greenhouse gas emissions, with projections showing this could surge to 17% by 2050 without action. Tightening regulations, such as the IMO 2023 GHG Strategy and the UK Emissions Trading Scheme starting July 2026, demand immediate steps to cut emissions. Companies that fail to act risk stranded assets and rising costs.
Key strategies to decarbonize include:
Measure emissions: Establish a baseline across Scope 1, 2, and 3 emissions using accurate data.
Optimize operations: Implement slow steaming, route optimization, and just-in-time arrivals to cut fuel use.
Upgrade technology: Use retrofits like air lubrication and propeller ducts to improve vessel efficiency.
Adopt cleaner fuels: Transition to low-carbon options like LNG, biofuels, methanol, or ammonia based on fleet needs.
Electrify ports: Invest in shore power and electric cargo-handling equipment to reduce emissions during docking.
Leverage digital tools: Use AI and IoT for real-time monitoring, predictive maintenance, and emissions tracking.
A phased approach ensures progress: start with cost-effective actions like speed adjustments and data collection, then move to mid- and long-term investments in infrastructure and fuel transitions. Collaboration across the supply chain, from carriers to customers, is essential to achieve large-scale impact and meet tightening regulations. Acting now not only cuts emissions but also positions companies for long-term success.
Measuring Emissions Across Operations and Supply Chains
How to Build a Carbon Emissions Baseline
Reducing emissions starts with understanding where they originate. This requires creating a carbon baseline - a detailed snapshot of emissions across Scope 1, Scope 2, and Scope 3 categories.
For maritime companies, Scope 1 includes direct emissions from fuel burned by vessels. Scope 2 covers purchased electricity used at ports and facilities. Scope 3, however, is the most intricate and often the largest contributor. In industries like retail and manufacturing, Scope 3 emissions can account for over 80% of a company’s total carbon footprint [7], and the maritime sector is no exception. This category includes emissions from contracted carriers, third-party ports, and inland transportation.
A good starting point is conducting a materiality assessment to identify which of the 15 Scope 3 categories apply to your business. This ensures you focus on the most relevant data and avoid wasting resources on insignificant areas [10]. Once your categories are defined, select a base year that represents normal operations. If your company has undergone major changes, such as mergers, you may need to adjust this baseline [10].
Data quality often presents challenges. The table below outlines the strengths and best uses of various methodologies:
Methodology | Data Source | Accuracy | Best For |
|---|---|---|---|
Primary (AER) | Vessel-specific fuel/cargo data | High | Strategic decisions, SBTi validation [7] |
Modeled Data | AIS data + vessel specs | High | Carrier comparison and procurement [6] |
Secondary Data | Industry averages (IMO, Clean Cargo) | Medium | Initial baseline reporting [7] |
Distance-Based | Generic factors + port distance calculators | Low | High-level screening [7] |
While starting with secondary data may suffice for an initial baseline, transitioning to primary or modeled data should be a priority. Relying on industry averages can obscure significant variations between specific vessels or routes.
"The conversation has fundamentally changed. A decade ago, ocean freight emissions were a footnote in CSR reports. Today, they are a key performance indicator in the boardroom." - Dr. Anika Sharma, Lead Sustainability Consultant, Global Logistics Advisory Group [7]
Once a baseline is established, you can identify where emissions are concentrated across your operations.
Finding High-Emissions Vessels, Ports, and Routes
After setting your baseline, the next step is to pinpoint emission hotspots. Not all vessels, routes, or ports contribute equally, so identifying the outliers can significantly amplify your impact.
AIS (Automatic Identification System) data is a valuable tool for this. It tracks real-time vessel movements, including speed, route deviations, and port call sequences. This level of detail is crucial because generic port-to-port distance estimates can be misleading. For instance, a stop at Jebel Ali can add 1,442 nautical miles to an Asia-Europe route, significantly increasing fuel use and emissions [6].
The type of vessel also plays a critical role. Emission rates vary widely by vessel class. For example, Ultra Large Container Vessels emit 6.8g CO₂e per ton-km, compared to 18.7g for smaller Feeder Vessels [8]. If your shipping portfolio leans heavily on smaller vessels for high-volume routes, this becomes a clear area for improvement.
Similarly, the choice of inland transport methods and entry ports can dramatically influence overall emissions. Evaluating gateway options for inland delivery often uncovers opportunities for carbon savings. For example, shifting from road to rail for European inland transport - such as from Hamburg to Milan - can reduce emissions by 86% [8]. These insights emerge only when you analyze the full supply chain, not just the ocean segment.
To effectively benchmark carriers, request vessel-specific Annual Efficiency Ratio (AER) data during the RFP process. Monitor monthly intensity metrics (e.g., kg CO₂e per ton-km) across your carrier portfolio [7]. This approach highlights high-emission outliers and facilitates data-driven discussions with carriers about improving performance.
Cutting Emissions Through Operational and Technical Efficiency
Speed Reduction and Route Optimization
When it comes to reducing emissions, adjusting operational practices is often the quickest and most cost-effective starting point. Among these, vessel speed plays a pivotal role. The connection between speed and fuel consumption isn’t linear - it’s exponential. For example, slowing a vessel’s speed by just 10% can lead to a 27% drop in emissions [13]. Techniques like slow steaming can amplify these savings, with reductions reaching up to 31.5% when operating at 38% main engine load [8]. These changes don’t require significant capital investment, making them accessible for most fleets.
A common inefficiency in shipping operations is the “Sail Fast Then Wait” (SFTW) pattern. This practice, driven by contractual incentives, encourages vessels to speed unnecessarily, only to wait at anchor, wasting fuel in the process.
"The environmental cost of demurrage across the shipping industry is driven by contractual artifacts that incentivize owners to burn fuel to speed faster and thereby maximize laytime." - Global Maritime Forum [11]
Just-in-Time (JIT) arrival offers a practical solution. By coordinating with ports to ensure vessels adjust their speed to arrive precisely when a berth is ready, companies can eliminate unnecessary fuel consumption. A trial at the Port of Rotterdam involving Maersk and MSC vessels demonstrated the impact: notifying ships to optimize speed just 12 hours before arrival reduced fuel consumption by an average of 9% compared to conventional practices [11]. Similarly, the Port of Newcastle in Australia adopted a Vessel Arrival System, issuing readiness notices seven days in advance. This approach helped coal vessels manage their speeds, reducing anchorage congestion and associated emissions [11].
Implementing JIT requires updating charter party contracts to include Virtual Arrival (VA) clauses. These clauses allow vessels to slow down in anticipation of port delays while still being considered on-time for demurrage purposes. Transitioning from manual noon reports to real-time sensor data and AI-driven voyage planning further enhances precision. For instance, AI-driven weather routing alone is expected to cut global fleet fuel use by 7% annually [13].
"Optimizing operational efficiency has the potential to reduce annual emissions by more than 200 million tons of CO2 and reduce annual fuel costs by $50 billion at today's prices." - Global Maritime Forum [11]
These operational changes lay the groundwork for even greater improvements through retrofits and advanced technologies.
Energy-Saving Technology Upgrades for Vessels
Combining operational changes with targeted hardware upgrades can significantly enhance emission reductions. The key is to align these upgrades with planned dry-docking schedules to minimize downtime and control costs [12].
The table below outlines some of the most effective retrofit options, their potential efficiency gains, and the complexity of implementation:
Technology | Estimated Efficiency Gain | Implementation Complexity |
|---|---|---|
Air lubrication (microbubbles) | 5–10% [13] | Medium |
Propeller ducts | 2–9% [12] | Medium |
Hull coatings (low-friction) | Part of 2–15% ESD range [12] | Low |
Waste-heat recovery systems | Varies by vessel | Medium–High |
Wind-assisted propulsion (rotor sails) | 7%+ in trials [13] | Medium |
Propeller ducts, for instance, are a practical starting point. For a standard dry bulk Capesize vessel, the upfront cost is approximately $500,000, with a payback period of three to four years [12]. Rising regulatory costs under measures like the EU Emissions Trading System, which fully applies to shipping by January 2026, are further tipping the scales. Operators will face costs of around €200–€300 per metric ton of fuel on EU-linked voyages [13].
A real-world example highlights the impact of integrating operational and technical measures. In June 2026, V.Group and Njord conducted an assessment of a 2008-built tanker (299,319 DWT) through their Technology Screening program. Targeted upgrades delivered a 12.9% energy saving, cutting approximately 5,954 metric tons of CO₂ annually and saving $920,000 in yearly bunker costs. When factoring in avoided FuelEU penalties of $34,000 per year, the projected return on investment improved from 2.0 years to just 1.6 years [14].
"A clear example of how performance optimization and compliance are directly linked, reducing emissions while lowering regulatory cost exposure." - Njord [14]
Wind-assisted propulsion is also gaining traction. The Global Centre for Maritime Decarbonization recently conducted a four-month trial with the Pacific Sentinel, an MR tanker equipped with suction sails. Even in headwind conditions, the trial recorded instantaneous power savings of over 7% [13]. Ships fitted with two energy-saving devices (ESDs) outperformed their class average by 3%, while those with three ESDs achieved a 6% improvement [12]. This demonstrates the value of combining multiple technologies rather than relying on a single solution.
From complexity to clarity: Practical pathways for maritime decarbonization (METS 2026)
Switching to Low-Carbon and Alternative Fuels
After improving operational and technical efficiencies, maritime companies are now focusing on fuel choices as a critical step toward decarbonization. There's no universal solution - experts describe the industry's future as a "multi-fuel reality," where the best option depends on factors like fleet type, trade routes, and long-term goals [17]. Selecting the right fuel builds on earlier efficiency efforts, forming a key part of a broader decarbonization strategy.
A Breakdown of Low-Carbon Fuel Options
LNG is currently the most established low-carbon fuel, with 207 ports worldwide offering bunkering services [16]. It reduces CO₂ emissions by 20–25% compared to heavy fuel oil, making it a practical transition fuel, particularly for large cargo vessels already in operation [3]. However, its benefits can be undermined by methane slip - unburned gas released during combustion - if not tightly controlled to levels below 0.20% [15].
Biofuels (including HVO and FAME blends) and Bio-LNG are gaining traction due to their compatibility with existing engines. For instance, Titan Clean Fuels reported that 73% of the LNG consumed on its bunker vessel Optimus during the latest FuelEU pooling period was bio-LNG [17]. This "drop-in" compatibility makes biofuels an attractive choice for the majority of vessels, which are unlikely to undergo major retrofits [18].
Green methanol offers a practical short-term solution for short-sea shipping routes. Its liquid state at room temperature simplifies storage and handling compared to cryogenic fuels. In May 2026, Venture Energy and Shenji Energy announced a strategic agreement to supply ISCC EU-certified green methanol, with deliveries set to begin later that year [17]. However, methanol's lower energy density means ships require significantly larger volumes to travel the same distance.
Ammonia has the highest long-term potential, capable of reducing lifecycle greenhouse gas emissions by up to 90% when produced from renewable hydrogen [3]. Despite this promise, its adoption faces hurdles: fewer than 20 ports globally have the necessary bunkering infrastructure, and its toxicity requires specialized handling systems. Retrofit costs are also steep, averaging around $840.19 per kW, compared to $336.08 per kW for methanol-compatible systems [16].
"Methanol [is] emerging as the most practical near-term solution for short-sea corridors, [while] ammonia [is] emerging as the primary pathway for long-term deep-sea decarbonisation." - Nikolaos Diamantakis, Research Centre for Carbon Solutions [3]
Hydrogen offers theoretical promise due to its high gravimetric energy density (141,500 kJ/kg). However, liquid hydrogen requires storage tanks up to four times larger than LNG tanks to provide equivalent energy output, making it impractical for most commercial vessels today [15].
Each fuel option has distinct advantages and challenges, highlighting the need for a strategic approach to fuel selection.
How to Choose the Right Fuel for Your Fleet
Choosing the optimal fuel for your fleet requires balancing technological maturity, infrastructure availability, and operational needs. Factors like vessel size, range, retrofit costs, and regulatory pressures all come into play.
Fuel Type | Emissions Reduction Potential | Infrastructure Readiness | Suitable Vessel Types |
|---|---|---|---|
LNG | Medium (20–25%) | High (207 ports) | Large cargo ships |
Biofuels | High | Moderate | All vessel types |
Green Methanol | High | Low (18 ports) | Short-sea vessels |
Ammonia | Very High (up to 90%) | Low | Deep-sea vessels |
Battery-Electric | Zero emissions | High (regional) | Short-haul ferries |
A 2026 study of a 20,000 TEU container ship on the Asia–Europe route found LNG to be the best balance of maturity, cost-effectiveness, and emissions reduction. Ammonia, while promising for its zero-carbon potential, is hindered by high retrofit expenses and limited port infrastructure [16].
Adopting dual-fuel engines is a smart way to maintain flexibility. By 2025, over 300 methanol dual-fuel vessels were on order, including more than 100 large container ships [4]. For example, Maersk delivered 18 large dual-fuel methanol vessels in May 2025 and secured a long-term agreement with Goldwind for 500,000 tonnes of green methanol annually starting in 2026 [13]. Such long-term supply agreements are critical, as shipping competes with other sectors for biofuels and ammonia, often facing premium prices [4].
"Shipping is a price taker in today's low-carbon fuels... leaving shipping exposed to premium prices and limited supply unless it locks in long-term partnerships." - Mogens Holm, Partner & Associate Director, BCG [4]
For now, blending biofuels with fossil fuels provides an effective way to meet compliance targets. Investing in dual-fuel vessels ensures adaptability as ammonia and methanol infrastructure expands between 2030 and 2035 [4][15].
Reducing Emissions at Ports and Shore Operations
In addition to improving vessel efficiency and adopting low-carbon fuels, addressing emissions at ports and during shore operations is vital for a well-rounded approach to maritime decarbonization. Ports significantly contribute to the maritime sector's carbon footprint, with up to 82% of their emissions coming from Scope 3 activities [19]. To tackle this, efforts must focus on two key areas: electrifying cargo-handling equipment and reducing emissions from docked ships.
Electrifying Port Equipment and Cargo Handling
A practical way to electrify port operations is to align equipment upgrades with their natural replacement cycles, typically every decade. This approach keeps capital costs manageable while modernizing equipment [19].
For instance, switching to electric rubber-tired gantry (RTG) cranes can cut energy costs per unit by 65% compared to diesel models. A port on the U.S. East Coast achieved significant results by electrifying 65% of its cargo-handling equipment, adding shore power at six berths, and installing 12 MW of solar capacity. These actions reduced Scope 1 and 2 emissions by 52%, lowered local PM2.5 levels by 31%, and saved $125 million over five years [19].
Port authorities can also encourage cleaner operations by revising green lease agreements, requiring terminal tenants to adopt energy-efficient practices and meet clean equipment standards. This method effectively addresses emissions under tenant control without requiring direct investment from the port [19].
Using Shore Power to Cut Emissions While Docked
Shore power, also known as cold ironing, allows vessels to shut off their auxiliary diesel engines while docked and draw electricity from the port’s grid instead. Large container ships typically require 1–2 MW of continuous power while at berth [22]. Installing shore power at high-traffic berths can cut annual emissions by 1,000 to 3,000 tons of CO2e per berth [20][21].
"Shore power can effectively reduce ship pollutant emissions at berth. Benefits vary from port-to-port and by vessel type." - US EPA [21]
To implement shore power effectively, ports need to coordinate landside infrastructure like high-voltage grid connections, frequency converters, and dockside cable systems with ship-side retrofits. Early collaboration with local utilities is essential to assess grid impacts and secure interconnection agreements [21][23]. Operationally, a ship pre-approval system can streamline connections for frequent visitors, minimizing disruptions to schedules [21].
Funding these upgrades can be challenging, but U.S. ports have access to several financial resources. The EPA’s Clean Ports Program provides $3 billion in competitive grants and rebates through 2027, which can be combined with DOT RAISE grants, state incentives, and lease financing [20]. Prioritizing high-traffic berths for shore power installations ensures the greatest emissions reductions per dollar spent [20].
"Electrification has moved from a climate goal to a competitive necessity for U.S. ports." - FTI Consulting [23]
Using Digital Tools to Optimize Operations and Track Emissions
Digital tools are transforming decarbonization efforts in the maritime industry. By offering real-time insights and predictive analytics, these tools help operators identify inefficiencies and take corrective actions. They provide a clear view of fuel usage across operations, enabling smarter decisions to reduce emissions.
Real-Time Vessel Performance Monitoring
Advanced vessel monitoring systems gather data from IoT sensors installed on propulsion engines, fuel injection systems, and auxiliary generators. These sensors track fuel flow, temperature, and vibration, combining this information with AIS tracking and weather forecasts to create detailed fuel efficiency models for immediate action [9][25].
A real-world example comes from June 2024, when Tankerska Plovidba, a Croatian shipowner, implemented an integrated digital solution on the Vukovar, a 49,990 dwt vessel. This system, developed by Metis and Kongsberg Digital, integrates Kongsberg's Vessel Insight cloud platform with edge computing. It provides real-time dashboards displaying machinery performance, fuel consumption, and IMO CII metrics [24].
"This project also brought an opportunity for Metis to offer enhanced voyage planning, with accurate weather predictions used to optimize fuel oil consumption, ETA, and carbon intensity expectations." - Panos Theodossopoulos, CEO, Metis [24]
Modern platforms now include features like CII ratings and emissions-aware routing, ensuring compliance is maintained throughout the voyage [24][25]. These insights enable more proactive maintenance and smarter operational decisions.
Predictive Maintenance and Data-Driven Routing
Predictive maintenance is another powerful application of digital tools in shipping. For instance, hull biofouling can increase fuel consumption by as much as 40% if not addressed [27]. AI-driven systems monitor hull and propeller conditions, flagging the need for cleaning before drag significantly impacts efficiency. This shifts maintenance from reactive to proactive, saving fuel and reducing costs.
Data-driven routing takes optimization a step further. By analyzing vessel specifications, ocean currents, weather conditions, and port congestion, these systems determine the most fuel-efficient voyage path. AI-powered platforms can cut fuel costs by up to 10% and reduce transit times by as much as 7% [25]. Adjusting speed based on these insights allows vessels to arrive at ports precisely when berths are available, avoiding unnecessary fuel use while waiting at anchor.
The impact of these tools is evident. In 2024, Eastern Pacific Shipping (EPS) collaborated with DeepSea Technologies to deploy the Cassandra platform across a fleet of over 300 vessels. This AI-driven solution provided weekly fuel consumption forecasts with 99% accuracy [27]. Similarly, MMSL, Marubeni's ship-owning division, saved $86,000 in fuel costs on a single vessel within a year by using AI-assisted watchkeeping and optimization tools [27].
"Predictive systems won't eliminate uncertainty entirely, but they will enable operators to anticipate impacts rather than chase them." - Jordan Renouard, OptiCARBON Product Owner, Bureau Veritas [26]
When selecting digital platforms, it’s crucial to choose tools that deliver performance KPIs directly to the engine control room and wheelhouse. Providing crews with real-time fuel and emissions data empowers them to make informed, proactive decisions, leading to significant cost and emissions reductions [25].
Working Across Supply Chains to Cut Emissions Together
Digital tools can help pinpoint where emissions occur within your own operations, but a significant portion of your carbon footprint lies outside your direct control. For many retail and manufacturing companies, Scope 3 emissions account for over 80% of their total carbon footprint, with logistics playing a major role [7]. This makes collaboration across the supply chain essential. Decarbonization efforts must extend beyond individual companies, involving both upstream suppliers and downstream customers.
Aligning Suppliers and Carriers Around Decarbonization Goals
A logical first step is reevaluating how you select and contract with partners. Including emissions reporting requirements in carrier RFPs and using weighted scoring to prioritize low-carbon partners sends a strong message that sustainability is a core priority [28][2]. To simplify this process for smaller carriers, offer standardized reporting templates based on the GLEC Framework, ensuring consistent Scope 3 data collection across various transport modes [28].
Contracts themselves can also drive change. By offering longer-term agreements or volume commitments to carriers that meet decarbonization targets, you provide them with the financial stability to invest in cleaner technologies [28]. Tracking supplier emissions data is critical here - while most companies currently achieve just 20–40% coverage, setting a goal of exceeding 80% coverage over time is both realistic and impactful [28].
As Nicholas Duchêne, CEO of Normec Verifavia, explains:
"Standardization efforts in terms of calculations, but also terminology, have been key. If you don't have good standards, then you discuss about things which you think are the same, but they are not the same." [29]
Partnering with Customers and Shippers to Reduce Waste
Collaborative efforts shouldn’t stop at suppliers; they should extend downstream to customers and cargo owners, who ultimately drive shipping demand. Initiatives like "green corridor" agreements allow cargo owners to share or absorb the added cost of low-carbon fuels on specific trade routes. This approach gives carriers the financial certainty needed to deploy cleaner vessels [4]. These downstream collaborations complement onboard efficiency improvements and alternative fuel strategies.
For companies not ready to pursue direct agreements, joining alliances such as the Zero Emission Maritime Buyers Alliance (ZEMBA) is a practical option. By pooling purchasing power, these alliances provide the volume guarantees fuel suppliers and shipowners need to invest in zero-emission infrastructure [2][4]. Sharing cargo-level emissions data - calculated per ton or per TEU using metrics like the Annual Efficiency Ratio (AER) - can also strengthen partnerships and help customers meet their Scope 3 reporting requirements [2][7].
Mark White of ProcurementNation.com highlights the value of transparent collaboration:
"The quality of your sustainability report is directly proportional to the quality of your carrier relationships. Data transparency is the new cornerstone of a strategic shipping partnership." [7]
When low-carbon fuels are unavailable on certain routes, the Book-and-Claim model offers an alternative. This system allows shippers to purchase environmental attributes separately from the physical fuel, creating demand for greener solutions even in challenging markets [28][29].
Building a Phased Decarbonization Plan

Maritime Decarbonization Roadmap: Phased Action Plan to Net Zero
Transforming sector commitments into measurable emissions reductions requires a well-organized, step-by-step approach. By structuring efforts into clear phases, a decarbonization plan guides the transition from immediate, cost-effective actions to long-term, transformative investments. This roadmap builds on earlier strategies, ensuring a smooth progression toward sustainability.
Near-Term Actions: Efficient, Low-Cost Solutions
Immediate actions with minimal investment can deliver significant results quickly. For instance, slow steaming - reducing vessel speed by 20% - can lower CO2 emissions and fuel use by an impressive 32% to 40% [5]. Pairing this with route optimization amplifies the benefits. Other key steps include establishing a comprehensive Scope 1, 2, and 3 emissions baseline within the first five months, retrofitting vessels with LED lighting, and applying advanced hull coatings to minimize drag. These actions not only drive early progress but also lay the groundwork for future decisions by creating a robust data foundation [19].
Mid- to Long-Term Investments: Scaling Infrastructure and Fuel Alternatives
Once initial gains are achieved, the focus shifts to more complex and resource-intensive projects. Over the next 3–10 years, investments like installing shore power systems, adopting electric cargo equipment, and blending biofuels take center stage. These efforts, while moderate in cost, involve significant coordination with stakeholders such as port authorities and fuel suppliers [30][2].
Looking further ahead, fleet-wide fuel switching becomes the priority beyond 2035. Transitioning to green ammonia and methanol-powered vessels represents a significant step toward decarbonization but comes with high costs and complexity. Scenario modeling - evaluating optimistic, pessimistic, and base-case projections for carbon pricing and fuel availability - helps companies plan effectively and avoid missteps in technology adoption [30].
Sample Implementation Timeline
The table below outlines a phased timeline, helping organizations prioritize actions and allocate resources effectively:
Phase | Timeline | Key Actions | Investment & Complexity |
|---|---|---|---|
Near-Term | 1–3 Years | Emissions baseline, slow steaming, LED retrofits, route optimization, pilot projects | Low / Low |
Mid-Term | 3–10 Years | Shore power installation, electric cargo equipment, biofuel blending, green leases | Moderate / High |
Long-Term | 10–30+ Years | Fleet-wide fuel switching (ammonia/methanol), net-zero infrastructure, full electrification | High / Very High |
An example of success comes from an East Coast port that integrated sustainability into its 10-year capital plan. This effort led to a 52% reduction in Scope 1 and 2 emissions and saved $48 million in diesel costs over five years, contributing to total savings of $125 million [19].
Conclusion: Taking the Next Steps Toward a Low-Carbon Maritime Industry
Decarbonizing the maritime sector requires a long-term, phased approach. The strategies outlined here - accurate emissions measurement, operational optimization, fuel transitions, port electrification, and the use of digital tools - work best when implemented together and in sequence.
However, operational improvements alone won't suffice. The path to net zero hinges on collective action. Collaboration across the sector is vital, involving fuel suppliers, port authorities, and customers to ensure the availability of low-carbon fuels at the scale required. Joining initiatives like the Zero Emission Maritime Buyers Alliance (ZEMBA) or engaging in green corridors can amplify efforts by pooling demand, sharing infrastructure costs, and signaling clear market intentions [4][2][31].
Regulations are also tightening. The International Maritime Organization (IMO) is set to formally adopt its Net-Zero Framework by October 2026, with implementation slated for 2028 [2][1]. Companies aligning their strategies with these timelines and participating in collaborative efforts will find the transition smoother. Those already measuring emissions, testing alternative fuels, and fostering partnerships will have a significant advantage over those just beginning.
Opportunities that are both cost-effective and impactful are available today but won't last forever. Acting now on achievable steps while planning for long-term goals turns decarbonization from a regulatory challenge into a competitive strength.
FAQs
Where should we start if we don’t have good emissions data yet?
If you lack dependable emissions data, begin by charting your value chain to pinpoint critical entities, regions, and processes. Financial data can serve as a helpful starting point, as expenditure often aligns with emissions levels. Concentrate on the categories that represent 80–90% of your estimated impact. When primary data isn’t available, rely on industry-average emission factors. Over time, refine your estimates by incorporating supplier feedback and adopting tools for voyage-level tracking.
Which decarbonization actions deliver the fastest payback for vessels and routes?
Improving operational and technical efficiency offers one of the fastest returns by cutting fuel consumption - the largest expense for shipping operations. Actions like slow steaming, which can lower fuel usage by 10%-15%, are particularly effective. Additionally, retrofitting vessels with upgrades such as propeller devices, advanced hull coatings, or bulbous bows often recoups costs within two years. When paired with analytics-based sailing optimization - factoring in weather, ocean currents, and port readiness - these strategies enhance both cost savings and environmental performance.
How do we choose a low-carbon fuel without risking stranded assets?
To avoid stranded assets, fuel procurement should be approached as a strategic process. Align fuel choices with your fleet's operational needs, trade routes, and evolving regulations. Leverage decision-support tools to carefully evaluate fuel options, considering factors like infrastructure compatibility, policy changes, and compliance risks. Minimize uncertainties by securing long-term supply contracts or participating in purchasing alliances. Continuously review fuel availability and costs to ensure your choices remain practical and compliant as conditions change.
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Jun 10, 2026
How to Decarbonize Maritime Operations and Supply Chains for Maritime & Logistics Companies
Sustainability Strategy
In This Article
Measure emissions, optimize operations, adopt low-carbon fuels, electrify ports, and use digital tools to cut shipping emissions.
How to Decarbonize Maritime Operations and Supply Chains for Maritime & Logistics Companies
Reducing emissions in maritime operations is no longer optional - it’s urgent. The shipping industry contributes 3% of global greenhouse gas emissions, with projections showing this could surge to 17% by 2050 without action. Tightening regulations, such as the IMO 2023 GHG Strategy and the UK Emissions Trading Scheme starting July 2026, demand immediate steps to cut emissions. Companies that fail to act risk stranded assets and rising costs.
Key strategies to decarbonize include:
Measure emissions: Establish a baseline across Scope 1, 2, and 3 emissions using accurate data.
Optimize operations: Implement slow steaming, route optimization, and just-in-time arrivals to cut fuel use.
Upgrade technology: Use retrofits like air lubrication and propeller ducts to improve vessel efficiency.
Adopt cleaner fuels: Transition to low-carbon options like LNG, biofuels, methanol, or ammonia based on fleet needs.
Electrify ports: Invest in shore power and electric cargo-handling equipment to reduce emissions during docking.
Leverage digital tools: Use AI and IoT for real-time monitoring, predictive maintenance, and emissions tracking.
A phased approach ensures progress: start with cost-effective actions like speed adjustments and data collection, then move to mid- and long-term investments in infrastructure and fuel transitions. Collaboration across the supply chain, from carriers to customers, is essential to achieve large-scale impact and meet tightening regulations. Acting now not only cuts emissions but also positions companies for long-term success.
Measuring Emissions Across Operations and Supply Chains
How to Build a Carbon Emissions Baseline
Reducing emissions starts with understanding where they originate. This requires creating a carbon baseline - a detailed snapshot of emissions across Scope 1, Scope 2, and Scope 3 categories.
For maritime companies, Scope 1 includes direct emissions from fuel burned by vessels. Scope 2 covers purchased electricity used at ports and facilities. Scope 3, however, is the most intricate and often the largest contributor. In industries like retail and manufacturing, Scope 3 emissions can account for over 80% of a company’s total carbon footprint [7], and the maritime sector is no exception. This category includes emissions from contracted carriers, third-party ports, and inland transportation.
A good starting point is conducting a materiality assessment to identify which of the 15 Scope 3 categories apply to your business. This ensures you focus on the most relevant data and avoid wasting resources on insignificant areas [10]. Once your categories are defined, select a base year that represents normal operations. If your company has undergone major changes, such as mergers, you may need to adjust this baseline [10].
Data quality often presents challenges. The table below outlines the strengths and best uses of various methodologies:
Methodology | Data Source | Accuracy | Best For |
|---|---|---|---|
Primary (AER) | Vessel-specific fuel/cargo data | High | Strategic decisions, SBTi validation [7] |
Modeled Data | AIS data + vessel specs | High | Carrier comparison and procurement [6] |
Secondary Data | Industry averages (IMO, Clean Cargo) | Medium | Initial baseline reporting [7] |
Distance-Based | Generic factors + port distance calculators | Low | High-level screening [7] |
While starting with secondary data may suffice for an initial baseline, transitioning to primary or modeled data should be a priority. Relying on industry averages can obscure significant variations between specific vessels or routes.
"The conversation has fundamentally changed. A decade ago, ocean freight emissions were a footnote in CSR reports. Today, they are a key performance indicator in the boardroom." - Dr. Anika Sharma, Lead Sustainability Consultant, Global Logistics Advisory Group [7]
Once a baseline is established, you can identify where emissions are concentrated across your operations.
Finding High-Emissions Vessels, Ports, and Routes
After setting your baseline, the next step is to pinpoint emission hotspots. Not all vessels, routes, or ports contribute equally, so identifying the outliers can significantly amplify your impact.
AIS (Automatic Identification System) data is a valuable tool for this. It tracks real-time vessel movements, including speed, route deviations, and port call sequences. This level of detail is crucial because generic port-to-port distance estimates can be misleading. For instance, a stop at Jebel Ali can add 1,442 nautical miles to an Asia-Europe route, significantly increasing fuel use and emissions [6].
The type of vessel also plays a critical role. Emission rates vary widely by vessel class. For example, Ultra Large Container Vessels emit 6.8g CO₂e per ton-km, compared to 18.7g for smaller Feeder Vessels [8]. If your shipping portfolio leans heavily on smaller vessels for high-volume routes, this becomes a clear area for improvement.
Similarly, the choice of inland transport methods and entry ports can dramatically influence overall emissions. Evaluating gateway options for inland delivery often uncovers opportunities for carbon savings. For example, shifting from road to rail for European inland transport - such as from Hamburg to Milan - can reduce emissions by 86% [8]. These insights emerge only when you analyze the full supply chain, not just the ocean segment.
To effectively benchmark carriers, request vessel-specific Annual Efficiency Ratio (AER) data during the RFP process. Monitor monthly intensity metrics (e.g., kg CO₂e per ton-km) across your carrier portfolio [7]. This approach highlights high-emission outliers and facilitates data-driven discussions with carriers about improving performance.
Cutting Emissions Through Operational and Technical Efficiency
Speed Reduction and Route Optimization
When it comes to reducing emissions, adjusting operational practices is often the quickest and most cost-effective starting point. Among these, vessel speed plays a pivotal role. The connection between speed and fuel consumption isn’t linear - it’s exponential. For example, slowing a vessel’s speed by just 10% can lead to a 27% drop in emissions [13]. Techniques like slow steaming can amplify these savings, with reductions reaching up to 31.5% when operating at 38% main engine load [8]. These changes don’t require significant capital investment, making them accessible for most fleets.
A common inefficiency in shipping operations is the “Sail Fast Then Wait” (SFTW) pattern. This practice, driven by contractual incentives, encourages vessels to speed unnecessarily, only to wait at anchor, wasting fuel in the process.
"The environmental cost of demurrage across the shipping industry is driven by contractual artifacts that incentivize owners to burn fuel to speed faster and thereby maximize laytime." - Global Maritime Forum [11]
Just-in-Time (JIT) arrival offers a practical solution. By coordinating with ports to ensure vessels adjust their speed to arrive precisely when a berth is ready, companies can eliminate unnecessary fuel consumption. A trial at the Port of Rotterdam involving Maersk and MSC vessels demonstrated the impact: notifying ships to optimize speed just 12 hours before arrival reduced fuel consumption by an average of 9% compared to conventional practices [11]. Similarly, the Port of Newcastle in Australia adopted a Vessel Arrival System, issuing readiness notices seven days in advance. This approach helped coal vessels manage their speeds, reducing anchorage congestion and associated emissions [11].
Implementing JIT requires updating charter party contracts to include Virtual Arrival (VA) clauses. These clauses allow vessels to slow down in anticipation of port delays while still being considered on-time for demurrage purposes. Transitioning from manual noon reports to real-time sensor data and AI-driven voyage planning further enhances precision. For instance, AI-driven weather routing alone is expected to cut global fleet fuel use by 7% annually [13].
"Optimizing operational efficiency has the potential to reduce annual emissions by more than 200 million tons of CO2 and reduce annual fuel costs by $50 billion at today's prices." - Global Maritime Forum [11]
These operational changes lay the groundwork for even greater improvements through retrofits and advanced technologies.
Energy-Saving Technology Upgrades for Vessels
Combining operational changes with targeted hardware upgrades can significantly enhance emission reductions. The key is to align these upgrades with planned dry-docking schedules to minimize downtime and control costs [12].
The table below outlines some of the most effective retrofit options, their potential efficiency gains, and the complexity of implementation:
Technology | Estimated Efficiency Gain | Implementation Complexity |
|---|---|---|
Air lubrication (microbubbles) | 5–10% [13] | Medium |
Propeller ducts | 2–9% [12] | Medium |
Hull coatings (low-friction) | Part of 2–15% ESD range [12] | Low |
Waste-heat recovery systems | Varies by vessel | Medium–High |
Wind-assisted propulsion (rotor sails) | 7%+ in trials [13] | Medium |
Propeller ducts, for instance, are a practical starting point. For a standard dry bulk Capesize vessel, the upfront cost is approximately $500,000, with a payback period of three to four years [12]. Rising regulatory costs under measures like the EU Emissions Trading System, which fully applies to shipping by January 2026, are further tipping the scales. Operators will face costs of around €200–€300 per metric ton of fuel on EU-linked voyages [13].
A real-world example highlights the impact of integrating operational and technical measures. In June 2026, V.Group and Njord conducted an assessment of a 2008-built tanker (299,319 DWT) through their Technology Screening program. Targeted upgrades delivered a 12.9% energy saving, cutting approximately 5,954 metric tons of CO₂ annually and saving $920,000 in yearly bunker costs. When factoring in avoided FuelEU penalties of $34,000 per year, the projected return on investment improved from 2.0 years to just 1.6 years [14].
"A clear example of how performance optimization and compliance are directly linked, reducing emissions while lowering regulatory cost exposure." - Njord [14]
Wind-assisted propulsion is also gaining traction. The Global Centre for Maritime Decarbonization recently conducted a four-month trial with the Pacific Sentinel, an MR tanker equipped with suction sails. Even in headwind conditions, the trial recorded instantaneous power savings of over 7% [13]. Ships fitted with two energy-saving devices (ESDs) outperformed their class average by 3%, while those with three ESDs achieved a 6% improvement [12]. This demonstrates the value of combining multiple technologies rather than relying on a single solution.
From complexity to clarity: Practical pathways for maritime decarbonization (METS 2026)
Switching to Low-Carbon and Alternative Fuels
After improving operational and technical efficiencies, maritime companies are now focusing on fuel choices as a critical step toward decarbonization. There's no universal solution - experts describe the industry's future as a "multi-fuel reality," where the best option depends on factors like fleet type, trade routes, and long-term goals [17]. Selecting the right fuel builds on earlier efficiency efforts, forming a key part of a broader decarbonization strategy.
A Breakdown of Low-Carbon Fuel Options
LNG is currently the most established low-carbon fuel, with 207 ports worldwide offering bunkering services [16]. It reduces CO₂ emissions by 20–25% compared to heavy fuel oil, making it a practical transition fuel, particularly for large cargo vessels already in operation [3]. However, its benefits can be undermined by methane slip - unburned gas released during combustion - if not tightly controlled to levels below 0.20% [15].
Biofuels (including HVO and FAME blends) and Bio-LNG are gaining traction due to their compatibility with existing engines. For instance, Titan Clean Fuels reported that 73% of the LNG consumed on its bunker vessel Optimus during the latest FuelEU pooling period was bio-LNG [17]. This "drop-in" compatibility makes biofuels an attractive choice for the majority of vessels, which are unlikely to undergo major retrofits [18].
Green methanol offers a practical short-term solution for short-sea shipping routes. Its liquid state at room temperature simplifies storage and handling compared to cryogenic fuels. In May 2026, Venture Energy and Shenji Energy announced a strategic agreement to supply ISCC EU-certified green methanol, with deliveries set to begin later that year [17]. However, methanol's lower energy density means ships require significantly larger volumes to travel the same distance.
Ammonia has the highest long-term potential, capable of reducing lifecycle greenhouse gas emissions by up to 90% when produced from renewable hydrogen [3]. Despite this promise, its adoption faces hurdles: fewer than 20 ports globally have the necessary bunkering infrastructure, and its toxicity requires specialized handling systems. Retrofit costs are also steep, averaging around $840.19 per kW, compared to $336.08 per kW for methanol-compatible systems [16].
"Methanol [is] emerging as the most practical near-term solution for short-sea corridors, [while] ammonia [is] emerging as the primary pathway for long-term deep-sea decarbonisation." - Nikolaos Diamantakis, Research Centre for Carbon Solutions [3]
Hydrogen offers theoretical promise due to its high gravimetric energy density (141,500 kJ/kg). However, liquid hydrogen requires storage tanks up to four times larger than LNG tanks to provide equivalent energy output, making it impractical for most commercial vessels today [15].
Each fuel option has distinct advantages and challenges, highlighting the need for a strategic approach to fuel selection.
How to Choose the Right Fuel for Your Fleet
Choosing the optimal fuel for your fleet requires balancing technological maturity, infrastructure availability, and operational needs. Factors like vessel size, range, retrofit costs, and regulatory pressures all come into play.
Fuel Type | Emissions Reduction Potential | Infrastructure Readiness | Suitable Vessel Types |
|---|---|---|---|
LNG | Medium (20–25%) | High (207 ports) | Large cargo ships |
Biofuels | High | Moderate | All vessel types |
Green Methanol | High | Low (18 ports) | Short-sea vessels |
Ammonia | Very High (up to 90%) | Low | Deep-sea vessels |
Battery-Electric | Zero emissions | High (regional) | Short-haul ferries |
A 2026 study of a 20,000 TEU container ship on the Asia–Europe route found LNG to be the best balance of maturity, cost-effectiveness, and emissions reduction. Ammonia, while promising for its zero-carbon potential, is hindered by high retrofit expenses and limited port infrastructure [16].
Adopting dual-fuel engines is a smart way to maintain flexibility. By 2025, over 300 methanol dual-fuel vessels were on order, including more than 100 large container ships [4]. For example, Maersk delivered 18 large dual-fuel methanol vessels in May 2025 and secured a long-term agreement with Goldwind for 500,000 tonnes of green methanol annually starting in 2026 [13]. Such long-term supply agreements are critical, as shipping competes with other sectors for biofuels and ammonia, often facing premium prices [4].
"Shipping is a price taker in today's low-carbon fuels... leaving shipping exposed to premium prices and limited supply unless it locks in long-term partnerships." - Mogens Holm, Partner & Associate Director, BCG [4]
For now, blending biofuels with fossil fuels provides an effective way to meet compliance targets. Investing in dual-fuel vessels ensures adaptability as ammonia and methanol infrastructure expands between 2030 and 2035 [4][15].
Reducing Emissions at Ports and Shore Operations
In addition to improving vessel efficiency and adopting low-carbon fuels, addressing emissions at ports and during shore operations is vital for a well-rounded approach to maritime decarbonization. Ports significantly contribute to the maritime sector's carbon footprint, with up to 82% of their emissions coming from Scope 3 activities [19]. To tackle this, efforts must focus on two key areas: electrifying cargo-handling equipment and reducing emissions from docked ships.
Electrifying Port Equipment and Cargo Handling
A practical way to electrify port operations is to align equipment upgrades with their natural replacement cycles, typically every decade. This approach keeps capital costs manageable while modernizing equipment [19].
For instance, switching to electric rubber-tired gantry (RTG) cranes can cut energy costs per unit by 65% compared to diesel models. A port on the U.S. East Coast achieved significant results by electrifying 65% of its cargo-handling equipment, adding shore power at six berths, and installing 12 MW of solar capacity. These actions reduced Scope 1 and 2 emissions by 52%, lowered local PM2.5 levels by 31%, and saved $125 million over five years [19].
Port authorities can also encourage cleaner operations by revising green lease agreements, requiring terminal tenants to adopt energy-efficient practices and meet clean equipment standards. This method effectively addresses emissions under tenant control without requiring direct investment from the port [19].
Using Shore Power to Cut Emissions While Docked
Shore power, also known as cold ironing, allows vessels to shut off their auxiliary diesel engines while docked and draw electricity from the port’s grid instead. Large container ships typically require 1–2 MW of continuous power while at berth [22]. Installing shore power at high-traffic berths can cut annual emissions by 1,000 to 3,000 tons of CO2e per berth [20][21].
"Shore power can effectively reduce ship pollutant emissions at berth. Benefits vary from port-to-port and by vessel type." - US EPA [21]
To implement shore power effectively, ports need to coordinate landside infrastructure like high-voltage grid connections, frequency converters, and dockside cable systems with ship-side retrofits. Early collaboration with local utilities is essential to assess grid impacts and secure interconnection agreements [21][23]. Operationally, a ship pre-approval system can streamline connections for frequent visitors, minimizing disruptions to schedules [21].
Funding these upgrades can be challenging, but U.S. ports have access to several financial resources. The EPA’s Clean Ports Program provides $3 billion in competitive grants and rebates through 2027, which can be combined with DOT RAISE grants, state incentives, and lease financing [20]. Prioritizing high-traffic berths for shore power installations ensures the greatest emissions reductions per dollar spent [20].
"Electrification has moved from a climate goal to a competitive necessity for U.S. ports." - FTI Consulting [23]
Using Digital Tools to Optimize Operations and Track Emissions
Digital tools are transforming decarbonization efforts in the maritime industry. By offering real-time insights and predictive analytics, these tools help operators identify inefficiencies and take corrective actions. They provide a clear view of fuel usage across operations, enabling smarter decisions to reduce emissions.
Real-Time Vessel Performance Monitoring
Advanced vessel monitoring systems gather data from IoT sensors installed on propulsion engines, fuel injection systems, and auxiliary generators. These sensors track fuel flow, temperature, and vibration, combining this information with AIS tracking and weather forecasts to create detailed fuel efficiency models for immediate action [9][25].
A real-world example comes from June 2024, when Tankerska Plovidba, a Croatian shipowner, implemented an integrated digital solution on the Vukovar, a 49,990 dwt vessel. This system, developed by Metis and Kongsberg Digital, integrates Kongsberg's Vessel Insight cloud platform with edge computing. It provides real-time dashboards displaying machinery performance, fuel consumption, and IMO CII metrics [24].
"This project also brought an opportunity for Metis to offer enhanced voyage planning, with accurate weather predictions used to optimize fuel oil consumption, ETA, and carbon intensity expectations." - Panos Theodossopoulos, CEO, Metis [24]
Modern platforms now include features like CII ratings and emissions-aware routing, ensuring compliance is maintained throughout the voyage [24][25]. These insights enable more proactive maintenance and smarter operational decisions.
Predictive Maintenance and Data-Driven Routing
Predictive maintenance is another powerful application of digital tools in shipping. For instance, hull biofouling can increase fuel consumption by as much as 40% if not addressed [27]. AI-driven systems monitor hull and propeller conditions, flagging the need for cleaning before drag significantly impacts efficiency. This shifts maintenance from reactive to proactive, saving fuel and reducing costs.
Data-driven routing takes optimization a step further. By analyzing vessel specifications, ocean currents, weather conditions, and port congestion, these systems determine the most fuel-efficient voyage path. AI-powered platforms can cut fuel costs by up to 10% and reduce transit times by as much as 7% [25]. Adjusting speed based on these insights allows vessels to arrive at ports precisely when berths are available, avoiding unnecessary fuel use while waiting at anchor.
The impact of these tools is evident. In 2024, Eastern Pacific Shipping (EPS) collaborated with DeepSea Technologies to deploy the Cassandra platform across a fleet of over 300 vessels. This AI-driven solution provided weekly fuel consumption forecasts with 99% accuracy [27]. Similarly, MMSL, Marubeni's ship-owning division, saved $86,000 in fuel costs on a single vessel within a year by using AI-assisted watchkeeping and optimization tools [27].
"Predictive systems won't eliminate uncertainty entirely, but they will enable operators to anticipate impacts rather than chase them." - Jordan Renouard, OptiCARBON Product Owner, Bureau Veritas [26]
When selecting digital platforms, it’s crucial to choose tools that deliver performance KPIs directly to the engine control room and wheelhouse. Providing crews with real-time fuel and emissions data empowers them to make informed, proactive decisions, leading to significant cost and emissions reductions [25].
Working Across Supply Chains to Cut Emissions Together
Digital tools can help pinpoint where emissions occur within your own operations, but a significant portion of your carbon footprint lies outside your direct control. For many retail and manufacturing companies, Scope 3 emissions account for over 80% of their total carbon footprint, with logistics playing a major role [7]. This makes collaboration across the supply chain essential. Decarbonization efforts must extend beyond individual companies, involving both upstream suppliers and downstream customers.
Aligning Suppliers and Carriers Around Decarbonization Goals
A logical first step is reevaluating how you select and contract with partners. Including emissions reporting requirements in carrier RFPs and using weighted scoring to prioritize low-carbon partners sends a strong message that sustainability is a core priority [28][2]. To simplify this process for smaller carriers, offer standardized reporting templates based on the GLEC Framework, ensuring consistent Scope 3 data collection across various transport modes [28].
Contracts themselves can also drive change. By offering longer-term agreements or volume commitments to carriers that meet decarbonization targets, you provide them with the financial stability to invest in cleaner technologies [28]. Tracking supplier emissions data is critical here - while most companies currently achieve just 20–40% coverage, setting a goal of exceeding 80% coverage over time is both realistic and impactful [28].
As Nicholas Duchêne, CEO of Normec Verifavia, explains:
"Standardization efforts in terms of calculations, but also terminology, have been key. If you don't have good standards, then you discuss about things which you think are the same, but they are not the same." [29]
Partnering with Customers and Shippers to Reduce Waste
Collaborative efforts shouldn’t stop at suppliers; they should extend downstream to customers and cargo owners, who ultimately drive shipping demand. Initiatives like "green corridor" agreements allow cargo owners to share or absorb the added cost of low-carbon fuels on specific trade routes. This approach gives carriers the financial certainty needed to deploy cleaner vessels [4]. These downstream collaborations complement onboard efficiency improvements and alternative fuel strategies.
For companies not ready to pursue direct agreements, joining alliances such as the Zero Emission Maritime Buyers Alliance (ZEMBA) is a practical option. By pooling purchasing power, these alliances provide the volume guarantees fuel suppliers and shipowners need to invest in zero-emission infrastructure [2][4]. Sharing cargo-level emissions data - calculated per ton or per TEU using metrics like the Annual Efficiency Ratio (AER) - can also strengthen partnerships and help customers meet their Scope 3 reporting requirements [2][7].
Mark White of ProcurementNation.com highlights the value of transparent collaboration:
"The quality of your sustainability report is directly proportional to the quality of your carrier relationships. Data transparency is the new cornerstone of a strategic shipping partnership." [7]
When low-carbon fuels are unavailable on certain routes, the Book-and-Claim model offers an alternative. This system allows shippers to purchase environmental attributes separately from the physical fuel, creating demand for greener solutions even in challenging markets [28][29].
Building a Phased Decarbonization Plan

Maritime Decarbonization Roadmap: Phased Action Plan to Net Zero
Transforming sector commitments into measurable emissions reductions requires a well-organized, step-by-step approach. By structuring efforts into clear phases, a decarbonization plan guides the transition from immediate, cost-effective actions to long-term, transformative investments. This roadmap builds on earlier strategies, ensuring a smooth progression toward sustainability.
Near-Term Actions: Efficient, Low-Cost Solutions
Immediate actions with minimal investment can deliver significant results quickly. For instance, slow steaming - reducing vessel speed by 20% - can lower CO2 emissions and fuel use by an impressive 32% to 40% [5]. Pairing this with route optimization amplifies the benefits. Other key steps include establishing a comprehensive Scope 1, 2, and 3 emissions baseline within the first five months, retrofitting vessels with LED lighting, and applying advanced hull coatings to minimize drag. These actions not only drive early progress but also lay the groundwork for future decisions by creating a robust data foundation [19].
Mid- to Long-Term Investments: Scaling Infrastructure and Fuel Alternatives
Once initial gains are achieved, the focus shifts to more complex and resource-intensive projects. Over the next 3–10 years, investments like installing shore power systems, adopting electric cargo equipment, and blending biofuels take center stage. These efforts, while moderate in cost, involve significant coordination with stakeholders such as port authorities and fuel suppliers [30][2].
Looking further ahead, fleet-wide fuel switching becomes the priority beyond 2035. Transitioning to green ammonia and methanol-powered vessels represents a significant step toward decarbonization but comes with high costs and complexity. Scenario modeling - evaluating optimistic, pessimistic, and base-case projections for carbon pricing and fuel availability - helps companies plan effectively and avoid missteps in technology adoption [30].
Sample Implementation Timeline
The table below outlines a phased timeline, helping organizations prioritize actions and allocate resources effectively:
Phase | Timeline | Key Actions | Investment & Complexity |
|---|---|---|---|
Near-Term | 1–3 Years | Emissions baseline, slow steaming, LED retrofits, route optimization, pilot projects | Low / Low |
Mid-Term | 3–10 Years | Shore power installation, electric cargo equipment, biofuel blending, green leases | Moderate / High |
Long-Term | 10–30+ Years | Fleet-wide fuel switching (ammonia/methanol), net-zero infrastructure, full electrification | High / Very High |
An example of success comes from an East Coast port that integrated sustainability into its 10-year capital plan. This effort led to a 52% reduction in Scope 1 and 2 emissions and saved $48 million in diesel costs over five years, contributing to total savings of $125 million [19].
Conclusion: Taking the Next Steps Toward a Low-Carbon Maritime Industry
Decarbonizing the maritime sector requires a long-term, phased approach. The strategies outlined here - accurate emissions measurement, operational optimization, fuel transitions, port electrification, and the use of digital tools - work best when implemented together and in sequence.
However, operational improvements alone won't suffice. The path to net zero hinges on collective action. Collaboration across the sector is vital, involving fuel suppliers, port authorities, and customers to ensure the availability of low-carbon fuels at the scale required. Joining initiatives like the Zero Emission Maritime Buyers Alliance (ZEMBA) or engaging in green corridors can amplify efforts by pooling demand, sharing infrastructure costs, and signaling clear market intentions [4][2][31].
Regulations are also tightening. The International Maritime Organization (IMO) is set to formally adopt its Net-Zero Framework by October 2026, with implementation slated for 2028 [2][1]. Companies aligning their strategies with these timelines and participating in collaborative efforts will find the transition smoother. Those already measuring emissions, testing alternative fuels, and fostering partnerships will have a significant advantage over those just beginning.
Opportunities that are both cost-effective and impactful are available today but won't last forever. Acting now on achievable steps while planning for long-term goals turns decarbonization from a regulatory challenge into a competitive strength.
FAQs
Where should we start if we don’t have good emissions data yet?
If you lack dependable emissions data, begin by charting your value chain to pinpoint critical entities, regions, and processes. Financial data can serve as a helpful starting point, as expenditure often aligns with emissions levels. Concentrate on the categories that represent 80–90% of your estimated impact. When primary data isn’t available, rely on industry-average emission factors. Over time, refine your estimates by incorporating supplier feedback and adopting tools for voyage-level tracking.
Which decarbonization actions deliver the fastest payback for vessels and routes?
Improving operational and technical efficiency offers one of the fastest returns by cutting fuel consumption - the largest expense for shipping operations. Actions like slow steaming, which can lower fuel usage by 10%-15%, are particularly effective. Additionally, retrofitting vessels with upgrades such as propeller devices, advanced hull coatings, or bulbous bows often recoups costs within two years. When paired with analytics-based sailing optimization - factoring in weather, ocean currents, and port readiness - these strategies enhance both cost savings and environmental performance.
How do we choose a low-carbon fuel without risking stranded assets?
To avoid stranded assets, fuel procurement should be approached as a strategic process. Align fuel choices with your fleet's operational needs, trade routes, and evolving regulations. Leverage decision-support tools to carefully evaluate fuel options, considering factors like infrastructure compatibility, policy changes, and compliance risks. Minimize uncertainties by securing long-term supply contracts or participating in purchasing alliances. Continuously review fuel availability and costs to ensure your choices remain practical and compliant as conditions change.
Related Blog Posts
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How to Communicate ESG Progress Credibly for Maritime & Logistics Companies
How to Decarbonize Maritime Operations and Supply Chains for Corporations
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Jun 10, 2026
How to Decarbonize Maritime Operations and Supply Chains for Maritime & Logistics Companies
Sustainability Strategy
In This Article
Measure emissions, optimize operations, adopt low-carbon fuels, electrify ports, and use digital tools to cut shipping emissions.
How to Decarbonize Maritime Operations and Supply Chains for Maritime & Logistics Companies
Reducing emissions in maritime operations is no longer optional - it’s urgent. The shipping industry contributes 3% of global greenhouse gas emissions, with projections showing this could surge to 17% by 2050 without action. Tightening regulations, such as the IMO 2023 GHG Strategy and the UK Emissions Trading Scheme starting July 2026, demand immediate steps to cut emissions. Companies that fail to act risk stranded assets and rising costs.
Key strategies to decarbonize include:
Measure emissions: Establish a baseline across Scope 1, 2, and 3 emissions using accurate data.
Optimize operations: Implement slow steaming, route optimization, and just-in-time arrivals to cut fuel use.
Upgrade technology: Use retrofits like air lubrication and propeller ducts to improve vessel efficiency.
Adopt cleaner fuels: Transition to low-carbon options like LNG, biofuels, methanol, or ammonia based on fleet needs.
Electrify ports: Invest in shore power and electric cargo-handling equipment to reduce emissions during docking.
Leverage digital tools: Use AI and IoT for real-time monitoring, predictive maintenance, and emissions tracking.
A phased approach ensures progress: start with cost-effective actions like speed adjustments and data collection, then move to mid- and long-term investments in infrastructure and fuel transitions. Collaboration across the supply chain, from carriers to customers, is essential to achieve large-scale impact and meet tightening regulations. Acting now not only cuts emissions but also positions companies for long-term success.
Measuring Emissions Across Operations and Supply Chains
How to Build a Carbon Emissions Baseline
Reducing emissions starts with understanding where they originate. This requires creating a carbon baseline - a detailed snapshot of emissions across Scope 1, Scope 2, and Scope 3 categories.
For maritime companies, Scope 1 includes direct emissions from fuel burned by vessels. Scope 2 covers purchased electricity used at ports and facilities. Scope 3, however, is the most intricate and often the largest contributor. In industries like retail and manufacturing, Scope 3 emissions can account for over 80% of a company’s total carbon footprint [7], and the maritime sector is no exception. This category includes emissions from contracted carriers, third-party ports, and inland transportation.
A good starting point is conducting a materiality assessment to identify which of the 15 Scope 3 categories apply to your business. This ensures you focus on the most relevant data and avoid wasting resources on insignificant areas [10]. Once your categories are defined, select a base year that represents normal operations. If your company has undergone major changes, such as mergers, you may need to adjust this baseline [10].
Data quality often presents challenges. The table below outlines the strengths and best uses of various methodologies:
Methodology | Data Source | Accuracy | Best For |
|---|---|---|---|
Primary (AER) | Vessel-specific fuel/cargo data | High | Strategic decisions, SBTi validation [7] |
Modeled Data | AIS data + vessel specs | High | Carrier comparison and procurement [6] |
Secondary Data | Industry averages (IMO, Clean Cargo) | Medium | Initial baseline reporting [7] |
Distance-Based | Generic factors + port distance calculators | Low | High-level screening [7] |
While starting with secondary data may suffice for an initial baseline, transitioning to primary or modeled data should be a priority. Relying on industry averages can obscure significant variations between specific vessels or routes.
"The conversation has fundamentally changed. A decade ago, ocean freight emissions were a footnote in CSR reports. Today, they are a key performance indicator in the boardroom." - Dr. Anika Sharma, Lead Sustainability Consultant, Global Logistics Advisory Group [7]
Once a baseline is established, you can identify where emissions are concentrated across your operations.
Finding High-Emissions Vessels, Ports, and Routes
After setting your baseline, the next step is to pinpoint emission hotspots. Not all vessels, routes, or ports contribute equally, so identifying the outliers can significantly amplify your impact.
AIS (Automatic Identification System) data is a valuable tool for this. It tracks real-time vessel movements, including speed, route deviations, and port call sequences. This level of detail is crucial because generic port-to-port distance estimates can be misleading. For instance, a stop at Jebel Ali can add 1,442 nautical miles to an Asia-Europe route, significantly increasing fuel use and emissions [6].
The type of vessel also plays a critical role. Emission rates vary widely by vessel class. For example, Ultra Large Container Vessels emit 6.8g CO₂e per ton-km, compared to 18.7g for smaller Feeder Vessels [8]. If your shipping portfolio leans heavily on smaller vessels for high-volume routes, this becomes a clear area for improvement.
Similarly, the choice of inland transport methods and entry ports can dramatically influence overall emissions. Evaluating gateway options for inland delivery often uncovers opportunities for carbon savings. For example, shifting from road to rail for European inland transport - such as from Hamburg to Milan - can reduce emissions by 86% [8]. These insights emerge only when you analyze the full supply chain, not just the ocean segment.
To effectively benchmark carriers, request vessel-specific Annual Efficiency Ratio (AER) data during the RFP process. Monitor monthly intensity metrics (e.g., kg CO₂e per ton-km) across your carrier portfolio [7]. This approach highlights high-emission outliers and facilitates data-driven discussions with carriers about improving performance.
Cutting Emissions Through Operational and Technical Efficiency
Speed Reduction and Route Optimization
When it comes to reducing emissions, adjusting operational practices is often the quickest and most cost-effective starting point. Among these, vessel speed plays a pivotal role. The connection between speed and fuel consumption isn’t linear - it’s exponential. For example, slowing a vessel’s speed by just 10% can lead to a 27% drop in emissions [13]. Techniques like slow steaming can amplify these savings, with reductions reaching up to 31.5% when operating at 38% main engine load [8]. These changes don’t require significant capital investment, making them accessible for most fleets.
A common inefficiency in shipping operations is the “Sail Fast Then Wait” (SFTW) pattern. This practice, driven by contractual incentives, encourages vessels to speed unnecessarily, only to wait at anchor, wasting fuel in the process.
"The environmental cost of demurrage across the shipping industry is driven by contractual artifacts that incentivize owners to burn fuel to speed faster and thereby maximize laytime." - Global Maritime Forum [11]
Just-in-Time (JIT) arrival offers a practical solution. By coordinating with ports to ensure vessels adjust their speed to arrive precisely when a berth is ready, companies can eliminate unnecessary fuel consumption. A trial at the Port of Rotterdam involving Maersk and MSC vessels demonstrated the impact: notifying ships to optimize speed just 12 hours before arrival reduced fuel consumption by an average of 9% compared to conventional practices [11]. Similarly, the Port of Newcastle in Australia adopted a Vessel Arrival System, issuing readiness notices seven days in advance. This approach helped coal vessels manage their speeds, reducing anchorage congestion and associated emissions [11].
Implementing JIT requires updating charter party contracts to include Virtual Arrival (VA) clauses. These clauses allow vessels to slow down in anticipation of port delays while still being considered on-time for demurrage purposes. Transitioning from manual noon reports to real-time sensor data and AI-driven voyage planning further enhances precision. For instance, AI-driven weather routing alone is expected to cut global fleet fuel use by 7% annually [13].
"Optimizing operational efficiency has the potential to reduce annual emissions by more than 200 million tons of CO2 and reduce annual fuel costs by $50 billion at today's prices." - Global Maritime Forum [11]
These operational changes lay the groundwork for even greater improvements through retrofits and advanced technologies.
Energy-Saving Technology Upgrades for Vessels
Combining operational changes with targeted hardware upgrades can significantly enhance emission reductions. The key is to align these upgrades with planned dry-docking schedules to minimize downtime and control costs [12].
The table below outlines some of the most effective retrofit options, their potential efficiency gains, and the complexity of implementation:
Technology | Estimated Efficiency Gain | Implementation Complexity |
|---|---|---|
Air lubrication (microbubbles) | 5–10% [13] | Medium |
Propeller ducts | 2–9% [12] | Medium |
Hull coatings (low-friction) | Part of 2–15% ESD range [12] | Low |
Waste-heat recovery systems | Varies by vessel | Medium–High |
Wind-assisted propulsion (rotor sails) | 7%+ in trials [13] | Medium |
Propeller ducts, for instance, are a practical starting point. For a standard dry bulk Capesize vessel, the upfront cost is approximately $500,000, with a payback period of three to four years [12]. Rising regulatory costs under measures like the EU Emissions Trading System, which fully applies to shipping by January 2026, are further tipping the scales. Operators will face costs of around €200–€300 per metric ton of fuel on EU-linked voyages [13].
A real-world example highlights the impact of integrating operational and technical measures. In June 2026, V.Group and Njord conducted an assessment of a 2008-built tanker (299,319 DWT) through their Technology Screening program. Targeted upgrades delivered a 12.9% energy saving, cutting approximately 5,954 metric tons of CO₂ annually and saving $920,000 in yearly bunker costs. When factoring in avoided FuelEU penalties of $34,000 per year, the projected return on investment improved from 2.0 years to just 1.6 years [14].
"A clear example of how performance optimization and compliance are directly linked, reducing emissions while lowering regulatory cost exposure." - Njord [14]
Wind-assisted propulsion is also gaining traction. The Global Centre for Maritime Decarbonization recently conducted a four-month trial with the Pacific Sentinel, an MR tanker equipped with suction sails. Even in headwind conditions, the trial recorded instantaneous power savings of over 7% [13]. Ships fitted with two energy-saving devices (ESDs) outperformed their class average by 3%, while those with three ESDs achieved a 6% improvement [12]. This demonstrates the value of combining multiple technologies rather than relying on a single solution.
From complexity to clarity: Practical pathways for maritime decarbonization (METS 2026)
Switching to Low-Carbon and Alternative Fuels
After improving operational and technical efficiencies, maritime companies are now focusing on fuel choices as a critical step toward decarbonization. There's no universal solution - experts describe the industry's future as a "multi-fuel reality," where the best option depends on factors like fleet type, trade routes, and long-term goals [17]. Selecting the right fuel builds on earlier efficiency efforts, forming a key part of a broader decarbonization strategy.
A Breakdown of Low-Carbon Fuel Options
LNG is currently the most established low-carbon fuel, with 207 ports worldwide offering bunkering services [16]. It reduces CO₂ emissions by 20–25% compared to heavy fuel oil, making it a practical transition fuel, particularly for large cargo vessels already in operation [3]. However, its benefits can be undermined by methane slip - unburned gas released during combustion - if not tightly controlled to levels below 0.20% [15].
Biofuels (including HVO and FAME blends) and Bio-LNG are gaining traction due to their compatibility with existing engines. For instance, Titan Clean Fuels reported that 73% of the LNG consumed on its bunker vessel Optimus during the latest FuelEU pooling period was bio-LNG [17]. This "drop-in" compatibility makes biofuels an attractive choice for the majority of vessels, which are unlikely to undergo major retrofits [18].
Green methanol offers a practical short-term solution for short-sea shipping routes. Its liquid state at room temperature simplifies storage and handling compared to cryogenic fuels. In May 2026, Venture Energy and Shenji Energy announced a strategic agreement to supply ISCC EU-certified green methanol, with deliveries set to begin later that year [17]. However, methanol's lower energy density means ships require significantly larger volumes to travel the same distance.
Ammonia has the highest long-term potential, capable of reducing lifecycle greenhouse gas emissions by up to 90% when produced from renewable hydrogen [3]. Despite this promise, its adoption faces hurdles: fewer than 20 ports globally have the necessary bunkering infrastructure, and its toxicity requires specialized handling systems. Retrofit costs are also steep, averaging around $840.19 per kW, compared to $336.08 per kW for methanol-compatible systems [16].
"Methanol [is] emerging as the most practical near-term solution for short-sea corridors, [while] ammonia [is] emerging as the primary pathway for long-term deep-sea decarbonisation." - Nikolaos Diamantakis, Research Centre for Carbon Solutions [3]
Hydrogen offers theoretical promise due to its high gravimetric energy density (141,500 kJ/kg). However, liquid hydrogen requires storage tanks up to four times larger than LNG tanks to provide equivalent energy output, making it impractical for most commercial vessels today [15].
Each fuel option has distinct advantages and challenges, highlighting the need for a strategic approach to fuel selection.
How to Choose the Right Fuel for Your Fleet
Choosing the optimal fuel for your fleet requires balancing technological maturity, infrastructure availability, and operational needs. Factors like vessel size, range, retrofit costs, and regulatory pressures all come into play.
Fuel Type | Emissions Reduction Potential | Infrastructure Readiness | Suitable Vessel Types |
|---|---|---|---|
LNG | Medium (20–25%) | High (207 ports) | Large cargo ships |
Biofuels | High | Moderate | All vessel types |
Green Methanol | High | Low (18 ports) | Short-sea vessels |
Ammonia | Very High (up to 90%) | Low | Deep-sea vessels |
Battery-Electric | Zero emissions | High (regional) | Short-haul ferries |
A 2026 study of a 20,000 TEU container ship on the Asia–Europe route found LNG to be the best balance of maturity, cost-effectiveness, and emissions reduction. Ammonia, while promising for its zero-carbon potential, is hindered by high retrofit expenses and limited port infrastructure [16].
Adopting dual-fuel engines is a smart way to maintain flexibility. By 2025, over 300 methanol dual-fuel vessels were on order, including more than 100 large container ships [4]. For example, Maersk delivered 18 large dual-fuel methanol vessels in May 2025 and secured a long-term agreement with Goldwind for 500,000 tonnes of green methanol annually starting in 2026 [13]. Such long-term supply agreements are critical, as shipping competes with other sectors for biofuels and ammonia, often facing premium prices [4].
"Shipping is a price taker in today's low-carbon fuels... leaving shipping exposed to premium prices and limited supply unless it locks in long-term partnerships." - Mogens Holm, Partner & Associate Director, BCG [4]
For now, blending biofuels with fossil fuels provides an effective way to meet compliance targets. Investing in dual-fuel vessels ensures adaptability as ammonia and methanol infrastructure expands between 2030 and 2035 [4][15].
Reducing Emissions at Ports and Shore Operations
In addition to improving vessel efficiency and adopting low-carbon fuels, addressing emissions at ports and during shore operations is vital for a well-rounded approach to maritime decarbonization. Ports significantly contribute to the maritime sector's carbon footprint, with up to 82% of their emissions coming from Scope 3 activities [19]. To tackle this, efforts must focus on two key areas: electrifying cargo-handling equipment and reducing emissions from docked ships.
Electrifying Port Equipment and Cargo Handling
A practical way to electrify port operations is to align equipment upgrades with their natural replacement cycles, typically every decade. This approach keeps capital costs manageable while modernizing equipment [19].
For instance, switching to electric rubber-tired gantry (RTG) cranes can cut energy costs per unit by 65% compared to diesel models. A port on the U.S. East Coast achieved significant results by electrifying 65% of its cargo-handling equipment, adding shore power at six berths, and installing 12 MW of solar capacity. These actions reduced Scope 1 and 2 emissions by 52%, lowered local PM2.5 levels by 31%, and saved $125 million over five years [19].
Port authorities can also encourage cleaner operations by revising green lease agreements, requiring terminal tenants to adopt energy-efficient practices and meet clean equipment standards. This method effectively addresses emissions under tenant control without requiring direct investment from the port [19].
Using Shore Power to Cut Emissions While Docked
Shore power, also known as cold ironing, allows vessels to shut off their auxiliary diesel engines while docked and draw electricity from the port’s grid instead. Large container ships typically require 1–2 MW of continuous power while at berth [22]. Installing shore power at high-traffic berths can cut annual emissions by 1,000 to 3,000 tons of CO2e per berth [20][21].
"Shore power can effectively reduce ship pollutant emissions at berth. Benefits vary from port-to-port and by vessel type." - US EPA [21]
To implement shore power effectively, ports need to coordinate landside infrastructure like high-voltage grid connections, frequency converters, and dockside cable systems with ship-side retrofits. Early collaboration with local utilities is essential to assess grid impacts and secure interconnection agreements [21][23]. Operationally, a ship pre-approval system can streamline connections for frequent visitors, minimizing disruptions to schedules [21].
Funding these upgrades can be challenging, but U.S. ports have access to several financial resources. The EPA’s Clean Ports Program provides $3 billion in competitive grants and rebates through 2027, which can be combined with DOT RAISE grants, state incentives, and lease financing [20]. Prioritizing high-traffic berths for shore power installations ensures the greatest emissions reductions per dollar spent [20].
"Electrification has moved from a climate goal to a competitive necessity for U.S. ports." - FTI Consulting [23]
Using Digital Tools to Optimize Operations and Track Emissions
Digital tools are transforming decarbonization efforts in the maritime industry. By offering real-time insights and predictive analytics, these tools help operators identify inefficiencies and take corrective actions. They provide a clear view of fuel usage across operations, enabling smarter decisions to reduce emissions.
Real-Time Vessel Performance Monitoring
Advanced vessel monitoring systems gather data from IoT sensors installed on propulsion engines, fuel injection systems, and auxiliary generators. These sensors track fuel flow, temperature, and vibration, combining this information with AIS tracking and weather forecasts to create detailed fuel efficiency models for immediate action [9][25].
A real-world example comes from June 2024, when Tankerska Plovidba, a Croatian shipowner, implemented an integrated digital solution on the Vukovar, a 49,990 dwt vessel. This system, developed by Metis and Kongsberg Digital, integrates Kongsberg's Vessel Insight cloud platform with edge computing. It provides real-time dashboards displaying machinery performance, fuel consumption, and IMO CII metrics [24].
"This project also brought an opportunity for Metis to offer enhanced voyage planning, with accurate weather predictions used to optimize fuel oil consumption, ETA, and carbon intensity expectations." - Panos Theodossopoulos, CEO, Metis [24]
Modern platforms now include features like CII ratings and emissions-aware routing, ensuring compliance is maintained throughout the voyage [24][25]. These insights enable more proactive maintenance and smarter operational decisions.
Predictive Maintenance and Data-Driven Routing
Predictive maintenance is another powerful application of digital tools in shipping. For instance, hull biofouling can increase fuel consumption by as much as 40% if not addressed [27]. AI-driven systems monitor hull and propeller conditions, flagging the need for cleaning before drag significantly impacts efficiency. This shifts maintenance from reactive to proactive, saving fuel and reducing costs.
Data-driven routing takes optimization a step further. By analyzing vessel specifications, ocean currents, weather conditions, and port congestion, these systems determine the most fuel-efficient voyage path. AI-powered platforms can cut fuel costs by up to 10% and reduce transit times by as much as 7% [25]. Adjusting speed based on these insights allows vessels to arrive at ports precisely when berths are available, avoiding unnecessary fuel use while waiting at anchor.
The impact of these tools is evident. In 2024, Eastern Pacific Shipping (EPS) collaborated with DeepSea Technologies to deploy the Cassandra platform across a fleet of over 300 vessels. This AI-driven solution provided weekly fuel consumption forecasts with 99% accuracy [27]. Similarly, MMSL, Marubeni's ship-owning division, saved $86,000 in fuel costs on a single vessel within a year by using AI-assisted watchkeeping and optimization tools [27].
"Predictive systems won't eliminate uncertainty entirely, but they will enable operators to anticipate impacts rather than chase them." - Jordan Renouard, OptiCARBON Product Owner, Bureau Veritas [26]
When selecting digital platforms, it’s crucial to choose tools that deliver performance KPIs directly to the engine control room and wheelhouse. Providing crews with real-time fuel and emissions data empowers them to make informed, proactive decisions, leading to significant cost and emissions reductions [25].
Working Across Supply Chains to Cut Emissions Together
Digital tools can help pinpoint where emissions occur within your own operations, but a significant portion of your carbon footprint lies outside your direct control. For many retail and manufacturing companies, Scope 3 emissions account for over 80% of their total carbon footprint, with logistics playing a major role [7]. This makes collaboration across the supply chain essential. Decarbonization efforts must extend beyond individual companies, involving both upstream suppliers and downstream customers.
Aligning Suppliers and Carriers Around Decarbonization Goals
A logical first step is reevaluating how you select and contract with partners. Including emissions reporting requirements in carrier RFPs and using weighted scoring to prioritize low-carbon partners sends a strong message that sustainability is a core priority [28][2]. To simplify this process for smaller carriers, offer standardized reporting templates based on the GLEC Framework, ensuring consistent Scope 3 data collection across various transport modes [28].
Contracts themselves can also drive change. By offering longer-term agreements or volume commitments to carriers that meet decarbonization targets, you provide them with the financial stability to invest in cleaner technologies [28]. Tracking supplier emissions data is critical here - while most companies currently achieve just 20–40% coverage, setting a goal of exceeding 80% coverage over time is both realistic and impactful [28].
As Nicholas Duchêne, CEO of Normec Verifavia, explains:
"Standardization efforts in terms of calculations, but also terminology, have been key. If you don't have good standards, then you discuss about things which you think are the same, but they are not the same." [29]
Partnering with Customers and Shippers to Reduce Waste
Collaborative efforts shouldn’t stop at suppliers; they should extend downstream to customers and cargo owners, who ultimately drive shipping demand. Initiatives like "green corridor" agreements allow cargo owners to share or absorb the added cost of low-carbon fuels on specific trade routes. This approach gives carriers the financial certainty needed to deploy cleaner vessels [4]. These downstream collaborations complement onboard efficiency improvements and alternative fuel strategies.
For companies not ready to pursue direct agreements, joining alliances such as the Zero Emission Maritime Buyers Alliance (ZEMBA) is a practical option. By pooling purchasing power, these alliances provide the volume guarantees fuel suppliers and shipowners need to invest in zero-emission infrastructure [2][4]. Sharing cargo-level emissions data - calculated per ton or per TEU using metrics like the Annual Efficiency Ratio (AER) - can also strengthen partnerships and help customers meet their Scope 3 reporting requirements [2][7].
Mark White of ProcurementNation.com highlights the value of transparent collaboration:
"The quality of your sustainability report is directly proportional to the quality of your carrier relationships. Data transparency is the new cornerstone of a strategic shipping partnership." [7]
When low-carbon fuels are unavailable on certain routes, the Book-and-Claim model offers an alternative. This system allows shippers to purchase environmental attributes separately from the physical fuel, creating demand for greener solutions even in challenging markets [28][29].
Building a Phased Decarbonization Plan

Maritime Decarbonization Roadmap: Phased Action Plan to Net Zero
Transforming sector commitments into measurable emissions reductions requires a well-organized, step-by-step approach. By structuring efforts into clear phases, a decarbonization plan guides the transition from immediate, cost-effective actions to long-term, transformative investments. This roadmap builds on earlier strategies, ensuring a smooth progression toward sustainability.
Near-Term Actions: Efficient, Low-Cost Solutions
Immediate actions with minimal investment can deliver significant results quickly. For instance, slow steaming - reducing vessel speed by 20% - can lower CO2 emissions and fuel use by an impressive 32% to 40% [5]. Pairing this with route optimization amplifies the benefits. Other key steps include establishing a comprehensive Scope 1, 2, and 3 emissions baseline within the first five months, retrofitting vessels with LED lighting, and applying advanced hull coatings to minimize drag. These actions not only drive early progress but also lay the groundwork for future decisions by creating a robust data foundation [19].
Mid- to Long-Term Investments: Scaling Infrastructure and Fuel Alternatives
Once initial gains are achieved, the focus shifts to more complex and resource-intensive projects. Over the next 3–10 years, investments like installing shore power systems, adopting electric cargo equipment, and blending biofuels take center stage. These efforts, while moderate in cost, involve significant coordination with stakeholders such as port authorities and fuel suppliers [30][2].
Looking further ahead, fleet-wide fuel switching becomes the priority beyond 2035. Transitioning to green ammonia and methanol-powered vessels represents a significant step toward decarbonization but comes with high costs and complexity. Scenario modeling - evaluating optimistic, pessimistic, and base-case projections for carbon pricing and fuel availability - helps companies plan effectively and avoid missteps in technology adoption [30].
Sample Implementation Timeline
The table below outlines a phased timeline, helping organizations prioritize actions and allocate resources effectively:
Phase | Timeline | Key Actions | Investment & Complexity |
|---|---|---|---|
Near-Term | 1–3 Years | Emissions baseline, slow steaming, LED retrofits, route optimization, pilot projects | Low / Low |
Mid-Term | 3–10 Years | Shore power installation, electric cargo equipment, biofuel blending, green leases | Moderate / High |
Long-Term | 10–30+ Years | Fleet-wide fuel switching (ammonia/methanol), net-zero infrastructure, full electrification | High / Very High |
An example of success comes from an East Coast port that integrated sustainability into its 10-year capital plan. This effort led to a 52% reduction in Scope 1 and 2 emissions and saved $48 million in diesel costs over five years, contributing to total savings of $125 million [19].
Conclusion: Taking the Next Steps Toward a Low-Carbon Maritime Industry
Decarbonizing the maritime sector requires a long-term, phased approach. The strategies outlined here - accurate emissions measurement, operational optimization, fuel transitions, port electrification, and the use of digital tools - work best when implemented together and in sequence.
However, operational improvements alone won't suffice. The path to net zero hinges on collective action. Collaboration across the sector is vital, involving fuel suppliers, port authorities, and customers to ensure the availability of low-carbon fuels at the scale required. Joining initiatives like the Zero Emission Maritime Buyers Alliance (ZEMBA) or engaging in green corridors can amplify efforts by pooling demand, sharing infrastructure costs, and signaling clear market intentions [4][2][31].
Regulations are also tightening. The International Maritime Organization (IMO) is set to formally adopt its Net-Zero Framework by October 2026, with implementation slated for 2028 [2][1]. Companies aligning their strategies with these timelines and participating in collaborative efforts will find the transition smoother. Those already measuring emissions, testing alternative fuels, and fostering partnerships will have a significant advantage over those just beginning.
Opportunities that are both cost-effective and impactful are available today but won't last forever. Acting now on achievable steps while planning for long-term goals turns decarbonization from a regulatory challenge into a competitive strength.
FAQs
Where should we start if we don’t have good emissions data yet?
If you lack dependable emissions data, begin by charting your value chain to pinpoint critical entities, regions, and processes. Financial data can serve as a helpful starting point, as expenditure often aligns with emissions levels. Concentrate on the categories that represent 80–90% of your estimated impact. When primary data isn’t available, rely on industry-average emission factors. Over time, refine your estimates by incorporating supplier feedback and adopting tools for voyage-level tracking.
Which decarbonization actions deliver the fastest payback for vessels and routes?
Improving operational and technical efficiency offers one of the fastest returns by cutting fuel consumption - the largest expense for shipping operations. Actions like slow steaming, which can lower fuel usage by 10%-15%, are particularly effective. Additionally, retrofitting vessels with upgrades such as propeller devices, advanced hull coatings, or bulbous bows often recoups costs within two years. When paired with analytics-based sailing optimization - factoring in weather, ocean currents, and port readiness - these strategies enhance both cost savings and environmental performance.
How do we choose a low-carbon fuel without risking stranded assets?
To avoid stranded assets, fuel procurement should be approached as a strategic process. Align fuel choices with your fleet's operational needs, trade routes, and evolving regulations. Leverage decision-support tools to carefully evaluate fuel options, considering factors like infrastructure compatibility, policy changes, and compliance risks. Minimize uncertainties by securing long-term supply contracts or participating in purchasing alliances. Continuously review fuel availability and costs to ensure your choices remain practical and compliant as conditions change.
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