Decarbonisation to radically impact

The decarbonisation of global energy supplies to address climate change will have radical implications for the global shipping industry, according to a report for the European Climate Foundation. If the Paris Agreement goals are met, the fossil fuel cargo base that shipping serves would undergo an aggressive and prolonged transformation. Director Stuart Nicoll at report authors MSI said: “While some sectors of the shipping industry, such as containerships, would be virtually unscathed, those for which hydrocarbons comprise a significant proportion of – or all – the cargo mix would undergo decades of falling demand. The results would be multi-decade declines in fleet capacity, earnings and asset prices across the affected sectors. Ship owners would be forced to slash new ordering and scrap uneconomic vessels.”