Red Sea crisis results in more container ship usage, adding to emission woes

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The shipping industry’s pledge to limit its carbon footprint may suffer a setback as the current Red Sea crisis prompts it to use more vessels and take longer routes to ensure the smooth sailing of global maritime trade.

Houthis have been attacking on vessels passing through the southern Red Sea which has choked trade through the Suez Canal, driving many container shipping companies to add 10-14 days to the voyages between Asia and Europe and add more vessels.

Red Sea disruption

The disruption has raised doubts about the sector’s ability to stay on track to meet the International Maritime Organization’s mandate for a 20 per cent reduction by 2030.

The shipping industry accounts for nearly 3 per cent of global carbon dioxide emissions.

“The extended travel times necessitate adding at least two more ships to maintain weekly Asia-Europe services per operator, further increasing the total emissions from the fleet for the same amount of cargo,” said Yiannis Parganas, head of shipbroker Intermodal’s research department.

The re-routing, which is leading to higher fuel consumption, is projected to result in a 42 per cent rise in emissions per ship for a standard Asia-North Europe weekly liner service, Parganas said.

Read: Red Sea tensions: UK security firm says vessel targeted near Yemen’s Hodeidah

Emissions

Emissions from container ships hit 231 million tons in 2023, touching pre-pandemic levels.

Niels Rasmussen, chief shipping analyst at ship-owner association BIMCO, said the longer route has necessitated an 8-10 per cent increase in container ship usage, compared with a year earlier, leading to an equivalent rise in emissions.

Container ship emissions could rise by as much as 11 per cent to 257 million tons in 2024 if disruptions including in the Red Sea and Panama Canal continue, according to consultancy firm AlixPartners.

The Red Sea crisis has also put plans of some operators to replace aging fleets with newer more fuel-efficient ships on the backburner.

“The numbers (freight rates) are very healthy and those who intend to scrap their ship have deferred their decision,” said Symeon Pariaros, chief administrative officer of ship-owner Euroseas.