Making Waves: Maersk Becomes First Shipping Company to Order Carbon Neutral Vessels​

By Curtley Bale​


The Story

Maersk, the world’s largest shipping container company, has become the first to order carbon-neutral shipping vessels. The new ships will be long-haul, running routes from China to Europe, and from Europe to America.

The Danish shipping company expects to take delivery of eight new vessels in 2024, costing approximately $1.4 billion (BBC).

What it Means for Businesses and Law Firms

Maersk’s decision to order new carbon-neutral vessels signals the company’s intent to be the leader in decarbonising the shipping sector. The new ships will replace some of the company’s oldest vessels in the fleet and will be able to hold 16,000 containers (Maersk).

Each ship costs an estimated $175 million to build - around 15% more than a normal ship that runs on traditional fossil fuels. The cost of the green fuel is roughly double that of normal bunker fuel, but company executives believe that big corporations, such as Amazon and H&M, will be willing to pay extra for greener shipping (Financial Times).

Globally, shipping produces around 940 million tonnes of CO2 annually and is responsible for about 2.5% of global greenhouse gas emissions (IMO Third GHG Study). The industry may find it difficult to become carbon neutral by 2050, in line with UN goals, due to the average 25 to 30-year lifespan of ships. Shipping companies may therefore need to begin transitioning towards greener fuels, or otherwise risk being left with stranded assets - as carbon-based fuels become less readily available.

As the sector’s market leader, with a 17% market share (Morgan Stanley), Maersk is leading from the front through its carbon-neutral ships. But despite its advances, there is still an ongoing debate about whether the green methanol it plans to use is the best alternative fuel for ships - or whether ammonia or hydrogen could be better.

Nevertheless, instead of continuing the debate and lack of action, Maersk’s Head of Fleet and Strategic Brands has stated that it is time to “put our money where our mouth is” - and so the company is taking these decisive steps as part of its ambition to be carbon-neutral by 2050 (Financial Times). Depending on their success, these carbon-neutral ships may see the competition racing to follow suit, not wanting to be left behind for both their business model and their brand image.
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