BUSINESS involved in Australia’s supply chain should be looking overseas for sustainability initiatives according to shipping and logistics expert Brian Hack.
Mr Hack, Managing Director at freight forwarding company EES Shipping says there is an opportunity to cherry pick innovations that are working in other countries and apply them here.
With the federal government continuing to finalise a Maritime Emissions Reduction National Action Plan, as part of the broader Transport and Infrastructure Net Zero Roadmap and Action Plan Mr Hack says he’s starting to see an increase in sustainability initiatives in the shipping industry, largely as a result of action in other countries.
“The European Union’s Emissions Trading System was expanded to include shipping as of this year, which has meant vessels have to track and report emissions linked to EU ports and has seen restrictions on certain types of vessels,” Mr Hack said.
“Sustainability initiatives more broadly appear to be gaining momentum now compared to just a few years ago, and I think we can expect to see that continue to increase as we approach the 2030s.
“However, it’s also adding cost in the form of levies and allowances, which eventually flow through to the consumer.”
Mr Hack points to the installation of bow wind shields on Ocean Network Express vessels, and the use of wind technology by Eastern Pacific Shipping as examples of emissions-reduction initiatives that have the potential to be adopted more broadly.
“Of course, the industry is still assessing how these measures work and the full extent of impact, but certainly different ideas are currently being looked at by various shipping companies, and the sector is interested in the outcomes.”
He says Australia’s supply chain has an opportunity to assess what sustainability measures are working well in other countries, and potentially bring the best ideas here.
Wind Technologies including bow wind shields, sails and flettner rotors are just some examples of wind-based technologies being installed on shipping vessels to reduce fuel consumption and reduce emissions.
The industry is continuing to look at the use, viability and accessibility of various alternative fuels, including LNG, biofuels, low-sulphur fuels and hydrogen.
With Australia heavily reliant on truck movements, reducing overall supply chain emissions will require a reduction landside, too. Mr Hack says the world-first on-dock battery-swapping station for electric trucks at Yantian Port is aimed at improving the efficiency of electric fleets, and he’s interested to see how the initiative operates longer term.
He says the practice of using shore-based power instead of a ships engines while in port is also worth investigation. AMP offers the potential to reduce vessel fuel usage and therefore emissions. Ocean Network Express recently demonstrated shore power for a container ship at Ningbo Port, the first time it had been used in China.
Australia currently has a legislated emissions target of 43% below 2005 levels by 2030, as part of the broader policy to reach Net Zero by 2050.
But, with no strong mandate to reduce emissions as yet, Mr Hack says adoption of sustainability measures are often driven by cost.
“I think businesses and consumers want to do more to reduce emissions and be more sustainable, but currently it’s expensive and the cost of introducing new emissions-reducing measures will ultimately be worn by the consumer.
“With inflation, interest rates and cost-of-living still front of mind, businesses are hesitant to introduce measures that will push up prices.”
However, Mr Hack maintains there is still an opportunity for Australia.
“Some of these measures have now been in place overseas for years. They’re tried and tested. We have the chance to take what’s worked well and introduce them here, and potentially start making a bigger impact, sooner.”
