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http://www.nature.com/news/pollution-three-steps-to-a-green-shipping-industry-1.19369

Nature 530, 275–277 (18 February 2016) doi:10.1038/530275a
Pollution: Three steps to a green shipping industry

Zheng Wan, Mo Zhu, Shun Chen& Daniel Sperling

It is time to crack down on the emissions and destructive development
caused by vast container vessels that pollute the air and seas, write Zheng
Wan and colleagues.

On 26 April 1956, US entrepreneur Malcom McLean watched a converted oil
tanker leave Port Newark in New Jersey carrying 58 of his inventions: the
modular shipping container. By 2015, the largest container ship in the
world, with a deck the area of 3.5 soccer fields, could carry about 20,000
of the units.

Ever-bigger container ships carry 90% of global consumer goods such as
clothes and food (non-bulk cargo)1. The seaborne container trade has grown
from 100 million tonnes in 1980 to about 1.6 billion tonnes in 2014.
Standardized 20-foot (6-metre) containers are moved using automated systems
that connect seaports, airports and train stations2. Bigger ships carry
more containers, ideally consuming less oil and releasing fewer pollutants
for each unit of goods carried.

Nonetheless, the human and environmental costs of shipping are vast.
Low-grade marine fuel oil contains 3,500 times more sulfur than road
diesel. Large ships pollute the air in hub ports, accounting for one-third
to half of airborne pollutants in Hong Kong, for example3. Particulates
emitted from ships cause 60,000 cardiopulmonary and lung-cancer deaths each
year worldwide4. Expanding harbours to take vast ships destroys coastal
ecosystems. And scrapping fleets of obsolete smaller ships pollutes seas
and soils, and damages workers' health, especially in the developing world5.

The industry is at a crossroads. The expected profits from larger ships are
being undermined by excess capacity, slowing trade and plunging transport
prices. In 2015, container freight rates for the world's busiest shipping
route — between Asia and northern Europe — dropped by nearly 60% in three
weeks. A dozen shipping companies went bankrupt, including Denmark's
Copenship and China's Nantsing. Even the giant container-conveying Danish
conglomerate Maersk announced that it would lay off 4,000 employees by 2017
and delayed or cancelled orders to build mega-ships.

Companies face a dilemma. If they buck the trend of scaling up, they risk
being less competitive. Yet running mega-ships only part full wipes out the
benefits of economies of scale. Ships use more fuel per container when
half-loaded than for a full cargo.

The future is green shipping: efficient marine transport with minimal
health and ecological damage6. Cleaner practices — especially on ship
scrapping, emission control and port management — are needed. Achieving
this will require heroic efforts by the industry and its engineers in
collaboration with regulators, port authorities and communities.
Environmental impacts should be considered in determining optimal routes
and modes for delivery of goods.

Pollution problem

Shipping is the most energy-efficient way to move large volumes of cargo.
Yet ships emit nitrogen oxides (NOx), sulfur oxides (SOx), carbon dioxide
and particulate matter (PM) into the atmosphere. Worldwide, from 2007 to
2012, shipping accounted7 for 15% of annual NOx emissions from
anthropogenic sources, 13% of SOx and 3% of CO2. In Europe in 2013, ships
contributed 18% of NOx emissions, 18% of SOx and 11% of particles less than
2.5 micrometres in size (PM2.5). For road transport, the figures were 33%,
0% and 12%, respectively. Aviation, by contrast, accounted for only 6%, 1%
and 1%, respectively, and rail just 1%, 0% and 0%.

Shipping policies must be applied worldwide to be effective. Shipping and
aviation emissions are not addressed by global climate-change agreements,
including the deal made in Paris last December. The International Maritime
Organization (IMO), which regulates international shipping, is engaging —
slowly. Releases into the oceans of oils, noxious liquids, harmful
substances, sewage and garbage have been restricted since the 1980s by the
International Convention for the Prevention of Pollution from Ships
(MARPOL), following a spate of oil-tanker accidents. Air-pollution limits
for shipping were adopted in 1997 but came into force only in 2005.

Energy efficiency is the IMO's present focus. Starting in 2013, its Energy
Efficiency Design Index and Ship Energy Efficiency Management Plan aim to
lower CO2 emissions from shipping through tighter technical requirements on
engines and equipment, maintenance regimes and voyage plans. No absolute
emissions-reduction targets were set. Unfortunately, long-term expansion in
global trade and growing ship numbers mean that even if these measures are
fully implemented, total shipping emissions are projected to quadruple from
1990 to 20508.

The IMO has set up four 'emission-control areas' — the Baltic Sea, the
North Sea, the US Caribbean and the coastal waters of Canada and the United
States — where ships are required to minimize emissions mainly of SOx and
NOx. These regions exclude the world's ten largest container ports, such as
the Chinese ports of Shanghai, Shenzhen, Hong Kong and the South Korean
port of Busan, which are all in Asia (see 'The dirty ten'). We estimate
that these ten sites alone contribute 20% of port emissions worldwide.

A few developed countries, including the United States, the United Kingdom
and Norway, limit the sulfur content of marine fuel in their national
waters to within 1,000 parts per million (p.p.m.). Most developing
countries, including India and China, permit dirtier fuels with 35,000
p.p.m. of sulfur. The European Union fuel standard for cars is 10 p.p.m.

Ship scrapping is heavily polluting. Asbestos, heavy metals and oils are
toxic. Workers are exposed to hazardous fumes. The EU has laws requiring
that ships registered in Europe be broken up only in licensed yards that
meet strict guidelines. But it is easy to change a ship's registration and
demolish it in a country with a more lax approach to labour and
environmental protection.

India, Bangladesh, and Pakistan are popular for ship scrapping9. In
Bangladesh for example, 40,000 mangroves — trees that stabilize many
tropical coasts and are habitats and breeding grounds for many species —
were chopped down in 2009 alone to accommodate shipbreaking yards. The
pollution from scrapping there has caused an estimated 21 fish and
crustacean species to become extinct. And reportedly, each week one worker
dies and seven are injured in the scrap yards of Bangladesh.

Congestion adds to pollution and disruption. Large volumes of cargo
overwhelm ports, surrounding roads and waterways. Hasty expansion or
construction of berths and canals to take more large ships can be
environmentally disastrous. Where the water in existing harbours is too
shallow, port authorities may reclaim land from the sea or build artificial
islands in deeper waters.

Coastal changes destroy ecosystems. Over the past three decades, about 75%
of mangroves have disappeared from Shenzhen, following port expansion and
land reclamation. Plans for the Porto Sul port in Brazil — slated to open
in 2019 — identified 36 potential environmental impacts, including driving
away dolphins and whales and killing seabed fauna.

Traditional shipping routes cannot keep up. The Panama Canal, which
connects the Pacific and Atlantic oceans, can currently handle vessels
carrying only up to about 5,000 standard containers. A project to expand it
to accept ships with 13,000 containers (the 'New Panamax' class) should be
completed by May. But the largest mega-ships, such as Maersk's E-class and
Triple E-class (with capacities between 14,000 and 18,000 containers), will
still be unable to cross (see 'Supersize ships'). In the meantime, heavy
traffic at Panama, complicated navigation and constant maintenance have led
to a ten-day delay in voyage times.

To take advantage of the business opportunity, construction is scheduled to
start this year on a 280-kilometre-long canal through Nicaragua. This
US$50-billion project, funded by a billionaire-owned Hong Kong company,
could destroy almost 400,000 hectares of tropical forests and wetlands,
home to threatened and endangered wildlife and indigenous communities10.

Public concern about the pollution and health impacts of shipping remains
muted because the industry is a backbone of the global economy, and its
activities happen far from where most people live and often beyond the
jurisdiction of local regulators. We cannot rely only on new ship designs
and engine innovation to minimize the ecological footprint of shipping:
today's ships might be in use for another 20 years or more. Several issues
must be addressed together to make the industry greener.

Green shipping

Implementing the following recommendations could save thousands of lives
each year, ensure cleaner coastal air and reduce ecological damage from
shipping.

Clean up ship scrapping. The IMO adopted the Hong Kong International
Convention for the Safe and Environmentally Sound Recycling of Ships in
2009, but only Norway, Congo and France have acceded as of February 2016.
The IMO's priority should be to ensure that the principal scrappers —
India, Bangladesh and Pakistan — adhere to these guidelines. The first step
is to set up local offices in these countries to collect and analyse
monitoring data independently and to propose improvements to local
governments. International loan or aid programmes to these countries,
sponsored by the World Bank or the Asian Development Bank, for example,
should demand clean ship-scrapping practices as an incentive. To discourage
transfer of scrapping elsewhere, a watch list of poorly performing
countries needs to be updated by IMO regularly until an international
convention enters into force.

Control emissions. Stricter IMO emissions regulations are needed, including
a cleaner worldwide standard for sulfur released by combustion of marine
fuel. A 97% cut in SOx can be achieved by reducing the sulfur content from
35,000 p.p.m. to 1,000 p.p.m. fuel oil. Today's low oil price provides a
great opportunity for this transition to happen. The current cost of
1,000-p.p.m.-grade fuel oil (around US$300 per tonne in Singapore, for
example) is less than half of that of the cheapest dirty fuel four years
ago.

Marine fuel is a sideline for oil refineries — only 2–4% of the total fuel
market. Stricter emissions standards will stimulate demand for high-quality
fuel. Incentive programmes (tax rebate and subsidies for producers) will be
needed to ensure a reasonable profit margin to recover the initial high
investment in developing countries, where there is little current capacity.
Government interventions will be needed in countries with state-run oil
companies, such as in China and India.

An alternative is to install scrubbers for exhaust-gas cleaning on ships.
Scrubber units blend the exhaust gas with water or caustic soda to remove
up to 99% of SOx and 98% of particulate matter from high-sulfur fuel. At
the moment, scrubbers are expensive, costing $2 million for one ship. But
China, for instance, could equip its entire container fleet in one year by
funding a 50% subsidy for scrubbers. The total cost? Just 0.5% of the $150
billion per year it has spent since 2013 to fight pollution. Shipping
companies could recoup the other 50% in one year from fuel savings. With a
stricter emissions standard, the demand for scrubbers would go up, and the
costs down, as production scales.

Improve port management. Port authorities should review the environmental
impact of their previous construction and disclose information on their
future development plans to demonstrate responsible management of public
assets. They should coordinate with transport-planning bureaus to seek the
most economical and environmentally friendly strategy to dispatch goods;
the optimal capacities of its terminals; and how to assist ships to load
and unload quickly. Making port-business statistics and the results of
environmental-impact studies accessible will allow the research community
to be involved in the decision-making process. Environmental
non-governmental organizations should campaign to increase public awareness
of port development.

After decades of loose oversight, it is time for shipping to get a whole
lot greener.

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