Overlooked: Examining the sustainable future of the shipping industry

Abstract

The shipping industry is indispensable as we rely on exports and imports in our everydaylives. However, the shift towards a more environmentally sustainable future means changingand improving our current way of living. This thesis aims to bring forth issues in the shippingsector and highlight the most critical issues that need to be worked on to make shipping more sustainable, especially where the environment is concerned. The oceans are essential for our livelihood, whether for sustenance, income, or the health of the planet and living beings.The operation of commercial ships relies in large part on the use of Heavy Fuel Oil, which is,on the one hand, a finite resource and, on the other hand, contains harmful substances emitted into the atmosphere. These emissions are detrimental to our environment and health, so shifting to alternative fuels and power sources is unavoidable. The maritime industry also significantly impacts our oceans’ ecosystems by transferring invasive species in ballast water and biofouling found on the hulls of ships.The shipping sector tends to overlook environmental issues. The goal is to uncover the real problem behind slow-moving development regarding environmental issues. There are always more significant issues as the shipping sector does not have a steady flow of income, and a huge disconnect within the industry does not help. The past has seen improvements in there cycling of ships and managing ballast water and biofouling.When researching for this thesis, it became apparent that most of these issues are separatedbecause there is no way to control all aspects, being that it is such a complex industry. Inaddition, international waters are under no direct jurisdiction, meaning no one takes responsibility for what happens in areas more than 12 nautical miles away from the land.Therefore, to better understand how the shipping industry deals with issues, it is essential to consider the industry’s history and current implementations.The primary source of information was research, mainly focusing on the International Maritime Organization’s implementations and guidelines. The International Maritime Organization’s guidelines require states to do their part to ensure compliance. However, often this means that the cheapest, quickest solutions, which often do not consider future problems,take precedence. Since there is such a disconnect within the industry, it was also essential togain firsthand knowledge by conducting two interviews with people working with the world'sbiggest shipping company: The Maersk Line.Results showed that logistical issues had been the focus lately, mainly due to the pandemic,as this was a challenging problem to navigate. During the pandemic, more products were ordered online, vaccinations and Covid tests had to be shipped, and therefore ports and shipswere operating at maximum capacity. The shipping industry has lowered emissions through aprocess called slow steaming, which lower costs, but when shipments need to be fast to fulfill consumer expectations and get medicine to developing countries promptly, it is not the ideal way of keeping emissions and costs low. There may not be another pandemic, but it has certainly shifted the focus to finding alternative logistics solutions and more environmentally sustainable practices. The problem is that the shipping industry has operated mainly with minimal profits and losses. The pandemic did help this situation but also brought forth the undeniable need for change. Due to the instability of the shipping business, collaboration with private companies is essential to ensure that research and development are possible.