Air Pollution Caused by Ocean Freight

Hausarbeit, 2014

5 Seiten, Note: 2,0

Marius Kanter (Autor)




Risk Identification

Impact on the Environment

Plans of the European Commission

How to deal with it?

Green Logistics Concerns of the ICS




In view of the future, organizations will have to adopt their supply chains more frequently to the increasingly competitive world. In the following text a critical discussion will be provided how key external risks of air pollution caused by ocean freight will influence the industry in the future and which strategies are adapted to deal with this risk.

Risk Identification

[Dies ist eine Leseprobe. Grafiken und Tabellen sind nicht enthalten.]

Figure 1 - Emissions along the supply chain (DB Mobiliy Logistics AG, 2013)

Especially Hamburg is affected by an important environmental issue: Air pollution caused by ships. German shipping companies managing cruise ships have already begun to modernize their fleet, driven by critics of the “Naturschutzbund Deutschland” (NABU) [1] (Zehender, 2012). The same non-profit organization now raised public attention to containerships polluting the air (Norddeutscher Runfdunk, 2014). The pollution affects especially populated areas like Hamburg in view of its centrally located harbour (Burhard Strassmann, 2009). According to NABU, only global political regulations could contain the risks of ship emissions by restricting allowed emissions to a minimum. Ralf Friebe, the Supply Chain Management lead of WOOX Innovations Germany GmbH [2] , confirmed that this kind of pollution will be one of the most important issues in his field of work in the next years. [3] He said that it has been known for years, but hardly anything has been done so far. Addtitionally, he is sure that if customers do not make up their minds themselves, political regulations would be made (Straube, 2014). New environmental regulations seem to be a risk for supply chains, as they include immense restrictions and therefore investments have to be made. The probability of this risk seems to be very high. This paper should therefore briefly investigate how significant the likelihood really is and how companies can deal with the impact on their industry.

IImpact on the Environment

In Figure 1 it is shown that emissions are produced along the complete supply chain. The emissions of ocean freight [4] are only a part of it. However, DB Schenker has shown in their environmental brochure that 22% of Carbon Dioxide emissions and by far most of the Nitrogen- and Sulfur-Oxide emissions are caused by ocean freight. The irony is that, according to DB Schenker, the specific value of Carbon Dioxide per ton-kilometer is the lowest for all transportation modes, thus the “greenest” (DB Mobiliy Logistics AG, 2013). The International Chamber of Shipping (ICS) points out that the low cost of ocean freight is essential to the worldwide movement of goods and also a driver of “green growth” (International Chamber of Shipping, 2013). Nevertheless, the effect of these emissions on the human population living near transport routes is proved indisputably (Eyring et al., 2010). It does not only degrade human health, but also influences the climate, especially near the coastline. In Hamburg 38% of the nitrogen oxide- and 17% of particulate-emissions are caused by ships (Norddeutscher Runfdunk, 2014). On a global scale sea freight accounts for 3% of the total greenhouse gases and without any action taken these emissions would double (European Commission, 2014). Considering this aspect, it is not the question if environmentally friendly investments have to be made, but when and how. The next chapter will present the set up proposals of the European Commission.

Plans of the European Commission

The reason why single nations have not yet done anything against carbon dioxide and other emissions by ocean freight is a possible loss of logistical competitiveness (Kollamthodi et al.,, , 2013). If one European Union (EU) member state would develop regulations on its own, shipping companies could easily switch to the bordering state to prevent the implementation of costly measures. Additional problems exist, regarding not yet internalized cost of carbon emissions and market barriers, which prevent environmentally friendly investments from being taken. The International Maritime Organization (IMO) already implemented energy efficiency standards for new ships (European Commission, 2013a). Nevertheless, emissions from shipping would increase by 50% by 2050. The EU intends to act on these problems by integrating ship emissions in the EU’s greenhouse gas reduction policies (European Commission, 2013a). The strategy explains that by 2050 EU Carbon Dioxide emission levels should be cut dramatically. [5] Three stages are planned to fulfill this target, which are shown in figure 2.

[Dies ist eine Leseprobe. Grafiken und Tabellen sind nicht enthalten.]

Figure 2 – strategy of the European commission (European Commission, 2014)

In the first step, a system will be integrated in the market to collect and publish verified data on emissions in the EU. [6] This system enables further insights into the actual emissions and to have a basis for future standards. The second step foresees targets for the maritime sector, since it is the only sector not covered by the existing Europe 2020 strategy to reduce greenhouse gases. The overall target is set to 40 to 50% reduction of Carbon Dioxide until 2050, but the intermediate targets between 2020 and 2050 still have to be set. The data of MRV will serve as the basis. In the last step, market-based-measures will be implemented. They promise strong incentives to achieve emission reductions in a cost effective way. Three different possibilities for the implementation have been taken into account: A contribution based compensation fund, a target based compensation fund and an emissions trading system (European Commission, 2013a). [7] Additionally, the commission plans parallel measures to remove market barriers (European Commission, 2013b). First, energy efficient technology requires huge investments that may be difficult to do for shipping companies in the current economic climate. EU investment support facilities could be made available to support them. Furthermore, there is a split of incentives between the people paying for fuel and the people benefiting from fuel effieciency. This is the case, as the charterer pays the fuel bill, but the ship owner would need to invest in better efficiency. The last barrier is the lack of reliable information for the ship owners. Most are not aware of the potential for fuel-efficient measurements. All in all, the commission has set a path to go for the next years, but what possibilities are available to implement environmentally friendly measures? The next chapter will answer this question briefly.

[1] Non-Profit Organization for nature conservancy

[2] Sales Organization of a Subsidary of Koninklijke Philips N.V., selling Audio Video products based in Hamburg

[3] WOOX Innovation is importaing most of its’ products from China and Hong Kong by ocean freight.

[4] Ocean freight makes up 80% of worldwide logistics and is the most cost efficient (Bundeszentrale für politische Bildung, 2010)

[5] Regulations on other emissions could not be investigated in the scope of this paper

[6] Valid from the 1 January 2018 on and enforced by law. Only an approval by the European Parliament and Council is still necessary.

[7] For further information about the three market-based-measures, please refer to European Commission (2013a)

Ende der Leseprobe aus 5 Seiten


Air Pollution Caused by Ocean Freight
ISBN (eBook)
722 KB
pollution, caused, ocean, freight
Arbeit zitieren
Marius Kanter (Autor), 2014, Air Pollution Caused by Ocean Freight, München, GRIN Verlag,


  • Noch keine Kommentare.
Im eBook lesen
Titel: Air Pollution Caused by Ocean Freight

Ihre Arbeit hochladen

Ihre Hausarbeit / Abschlussarbeit:

- Publikation als eBook und Buch
- Hohes Honorar auf die Verkäufe
- Für Sie komplett kostenlos – mit ISBN
- Es dauert nur 5 Minuten
- Jede Arbeit findet Leser

Kostenlos Autor werden