English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese

US$400 billion exposure for shipping industry

LONDON: February 27, 2017. New research suggests financial institutions supporting the global shipping industry have a US$400 billion exposure to future emissions regulations and need to develop a policy to protect their assets.

UMAS A report commissioned by the Carbon War Room, founded in 2009 by Richard Branson and other entrepreneurs to find ways to reduce CO2 emissions, lays out a first approach to climate stress-testing of shipping assets and proposes that action today by financiers, shipowners and shareholders can avoid losses by the mid-2020s.

"Risk is nothing new to the shipping industry or to the major financial institutions that bankroll it, but climate transition risk is," explained James Mitchell, Carbon War Room senior associate for shipping. "If a newbuild financing decision is made today, that vessel will very probably have to compete under new International Maritime Organisation or EU policy actions before its first drydock."

The 18-month study by UMAS, a commercial advisory service supported by the UCL Energy Institute and the management expertise of MATRANS, examined various investment scenarios for drybulk newbuilds between 60,000–99,999 deadweight tonnage to determine the level of exposure.

UMAS has concluded that while some financial stakeholders are aware of stranded asset risks, few banks are assessing ship efficiency or have lending programs in place to keep assets competitive, despite the level of debt.

"Future regulation on shipping GHG is now certain. It's just the velocity and stringency that remain unknown, and we can handle this by thinking in terms of scenarios," said Tristan Smith, director of UMAS.

"The key takeaway from the report is for financiers and shipowners to be prepared and thus it is crucial to future-proof assets now and plan for flexibility from the onset, through for example, designing for future retrofits and using innovative financing mechanisms to deal with a variety of future scenarios," he added.

News

Written on 16/09/2017, 03:38
panam-provides-canada-rail-link-to-bostonPORT ST JOHN, Canada: September 13, 2017. Port operator DP World and PanAm Railways are launching an intermodal rail service between the New Brunswick...
Written on 13/09/2017, 21:01
cma-cgm-to-deliver-irma-humanitarian-aidMARSEILLE, September 13, 2017. The French government has asked CMA CGM to ship 46 modular living containers, food and vehicles from Marsellie on September...
Written on 10/09/2017, 21:27
u-s-department-of-defence-responds-to-irmaMARCO ISLAND, Florida: September 10, 2017. Hurricane Irma has become the second Category 4 hurricane to make landfall on the continental U.S. in less than...
Written on 08/09/2017, 19:53
iata-warns-of-airfreight-peakGENEVA: September 06, 2017. IATA reports an 11.4 percent increase in freight tonne kilometers (FTKs), in July over the same period a year ago. The...
Written on 08/09/2017, 19:21
alibaba-signs-third-government-mou-in-latin-americaHANGZHOU, China: September 06, 2017. The Alibaba Group has signed an MoU with Mexico to provide the country's SMEs with global e-commerce, digital...
Written on 06/09/2017, 21:07
mars-to-invest-nearly-us-1-billion-on-sustainabilityMCLEAN, VA.: September 06, 2017. Family-owned candy and pet-food manufacturer Mars is to spend nearly US$1billion on a sustainability plan to tackle...
Written on 06/09/2017, 18:43
europe-s-intermodal-rail-network-loses-billionsBRUSSELS: September 05, 2017. Over 20 European rail and logistics organizations are warning Europe's intermodal network is "about to collapse" following...
Written on 05/09/2017, 17:39
new-joint-venture-for-us-mexico-rail-ferryDARIEN, CT/FORT LAUDERDALE, FL: September 05, 2017. Railroad operator Genesee & Wyoming (G&W) is investing in a four-day rail ferry service...
Written on 03/09/2017, 22:17
audi-opts-for-green-rail-logisticsINGOLSTADT, Germany: September 01, 2017. Audi says it is the first company in Germany to be CO2-neutral using DB Cargo's 'DBeco plus' rail service. The...
Written on 30/08/2017, 23:14
public-private-partnerships-respond-to-harveyHOUSTON/BATON ROUGE: August 30, 2017. As UPS and FedEx join other US$1 million-donors in responding to what is described as the worst flooding disaster...
Written on 28/08/2017, 16:42
new-uk-garbage-transport-planLONDON: August 28, 2017. The British government is offering £22 million to develop low carbon waste-based fuels to power commercial aircraft and...
Written on 25/08/2017, 15:37
qantas-plans-profitable-nonstop-to-new-yorkSYDNEY: August 25, 2017. Qantas chairman Alan Joyce has challenged Boeing and Airbus to build an aircraft that can fly non-stop with a full payload...
Written on 24/08/2017, 22:04
walmart-launches-a-googlemart-to-compete-with-amazonBENTONVILLE, AK: August 23, 2017. Walmart is partnering with Google to launch voice shopping for its U.S. customers via Google Assistant starting in late...
Written on 24/08/2017, 19:33
nepal-forwarders-recognize-qatarKATMANDU: August 23, 2017. The Nepal Freight Forwarders Association has given Qatar Airways Cargo an award for carrying the most export tonnage out of...
Written on 23/08/2017, 17:30
panama-handles-largest-box-carrierPANAMA CANAL: August 22, 2017. The CMA CGM Theodore Roosevelt, with a capacity for 14,855 TEU, has become the largest box ship to traverse the expanded...
Written on 22/08/2017, 16:07
hawaii-shippers-to-have-third-liner-serviceHONOLULU, HI: August 21, 2017. Tote Maritime, part of the Alaska-based Saltchuck logistics group, is to launch a new ocean service to Hawaii from the U.S....
Written on 18/08/2017, 21:43
mexico-boosts-miami-air-cargo-volumeMIAMI: August 17, 2017. Miami International Airport has reported a 4.8 percent growth in cargo traffic for the first half of 2017 with domestic traffic...
Written on 17/08/2017, 18:44
turkish-cargo-helps-save-livesMOGADISHU: August 15, 2017. In March this year actor Ben Stiller and other celebrities launched a viral crowdfunding appeal on behalf of the famine in...
Written on 17/08/2017, 18:01
first-flight-out-for-hungarian-horsesBUDAPEST: August 15, 2017. Cargolux and Hellmann Worldwide Logistics have flown 14 Hungarian-bred racehorses from Budapest via Luxembourg and Beijing to...
Written on 11/08/2017, 15:35
european-commission-supports-hna-purchase-of-frankfurt-hahn-airportFRANKFURT HAHN: August 10, 2017. The HNA Group has completed its acquisition of Frankfurt-Hahn airport from the German state of Rhineland-Palatinate. The...

- powered by Quickchilli.com -