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Move to greener shipping gathers pace, with LNG the favourite new fuel

The shipping industry's shift towards alternative fuels is accelerating, but debate over how it should be regulated is intensifying as the International Maritime Organization (IMO) considers its Net-Zero Framework. Laura DiBella, chair of the US Federal Maritime Commission (FMC), warned yesterday that the IMO framework in its current form risked restricting the fuel choices available. "This initiative raises more questions than it answers and must be rethought before international acceptance and implementation," she said. "Specifically, any viable proposal must allow for the maximum range of alternate fuel sources, including LNG and bio-LNG." She argued that framework's fundamental weakness was its attempt to move shipping from the global petroleum system by regulation rather than market forces, and that the existing system was resilient because of its broad network of suppliers, refineries, and distribution channels. Ms DiBella warned that "artificially limiting alternative fuels" could undermine the framework's effectiveness, while fuel diversity did not necessarily guarantee availability, stability, or reliability. "In my view, efforts toward emissions reductions must be linked explicitly to demonstrated viability and realistic availability of alternative fuels, not a pre-determined, rigid implementation date or limited fuel options," she explained. Ms DiBella also backed LNG and bio-LNG, arguing that these fuels could "realistically supply over 60% of global maritime fuel by 2050". She said bio-LNG could benefit from the existing LNG infrastructure and growing fleet of LNG-fuelled vessels while providing a route to lower emissions without requiring an entirely new fuel ecosystem. But despite the IMO's concerns, alternative-fuel vessels are increasingly becoming a significant part of the container fleet. Jonathan Roach, container market analyst at Braemar, said in a recent analysis: "The container shipping industry's journey towards alternative fuels is no longer a distant ambition; it is becoming a measurable reality." Braemar data showed LNG as the dominant transition fuel, while the growing number of methanol-powered ships showed carriers were increasingly prepared to pursue multiple fuel pathways. Braemar estimated that, by 2030, alternative-fuel ships would account for more than 30% of global container fleet capacity, despite representing less than 14% of vessels by number, indicating that the transition was particularly pronounced among larger vessels. Around 65% of the current huge containership orderbook, in terms of teu capacity, will be fitted with alternative-fuel main engines. And of the alternative-fuel ships on order, about 90% of capacity is concentrated in vessels of 10,000 teu and above. Mr Roach said this could increasingly become a commercial differentiator, as major shippers demand lower-emission transport options from their carrier partners. He also noted that supporting infrastructure was also expanding and, as of this month, Braemar estimated 46 LNG-bunker barges and vessels were in service, with 43 on order. More than half the operating fleet is deployed in Europe, almost a third in Asia, and 17% in the Americas and Caribbean. "Ultimately, the alternative fuel transition is becoming less a question of environmental policy and more a question of competitive positioning," Mr Roach said. "The question is no longer whether alternative fuels will gain market share, but how quickly adoption will occur and whether supporting infrastructure can keep pace with an ambitious fleet renewal cycle."

Rhine low water crisis due to 'decades of delay in modernising infrastructure'

The navigational crisis on the Rhine, and the disruption to commercial barge traffic, caused by low water levels, is a direct result of decades of delays in modernising infrastructure, it was claimed this week. Factor-in the increasing impact of climate change, and inland waterway services are at serious risk. The analysis is that of Theresa Hacksteiner, secretary general of the European Barge Union (EBU). "The current low water situation is one of the most severe in decades and a major concern," she told The Loadstar. "Inland waterways and ports are of vital importance to the EU waterborne ecosystem. They function as sustainable, resilient, and strategic transport corridors and nodes for shipping and transhipment of goods, which are critical for the functioning of our economy. They extend the reach of maritime trade deep into seaports' hinterlands." However, she believes decades of under-investment in inland waterway and port corridors and their multimodal connectivity has led to bottlenecks that threaten to reverse modal shift and divert freight back onto already congested roads and railways. In a number of seaports, access to infrastructure remains suboptimal, and the handling of barges does not have priority in container terminals. This has resulted in extended and costly waiting times, diminishing the appeal of inland waterway transport in the multimodal mix, Ms Hacksteiner claimed. In addition to the necessity for infrastructure upgrades, the future of the sector would also appear to lie with the greater use of vessels specialised in operating in shallow water. German inland specialist HGK Shipping recently called for a long-term investment in Europe towards financing the purchase of up to 1,000 barges capable of navigating in low water. The cost per vessel is estimated at €12.5m, which equates to a full investment package of €12.5bn. "We cannot prevent low water levels, but we can build vessels that are still capable of operating for longer in difficult conditions. If we want to modernise the fleet, we must also enable small and medium-sized companies and self-employed vessel owners and operators to invest in the next generation of vessels," said HGK Group CEO Steffen Bauer. "The modernisation of the fleet is a European task - but Germany must take a lead in this process. We need a reliable investment framework from the German government up to 2035, which mobilises private capital and provides companies with planning certainty for building new vessels. This will enable us to strengthen the resilience of our supply chains," he added. To the backdrop of the low water crisis on the Rhine, German chemicals giant BASF has broken ground on a €100m-plus upgrade of its multimodal freight terminal at its Ludwigshafen industrial complex on the banks of the river. Scheduled for completion in 2028, it is set to provide greater rail capacity, making it easier, in principle, to keep freight moving when the Rhine is constrained. The Ludwigshafen terminal handles more than 1,100 loading units daily, transported on up to 25 block trains. The re-development will include new gantry cranes and the restructuring of loading and storage tracks, traffic lanes, and road access. The cranes will handle a broad range of unitised freight including shipments in containers, swapbodies, and semi-trailers. Currently, freight moving in and out of the terminal is evenly spread between rail, river and road.

Major airlines are lining up their freighters on the runway at NMIA

Cargo airlines serving India are adapting and responding to the operational disruption at Mumbai Airport by reorganising services out of Navi Mumbai International (NMIA), Adani Group's newest investment in the country. Because of extensive airside infrastructure improvement works, Mumbai Airport -- under severe capacity strain for some time -- has imposed temporary restrictions on freighter operations until next May. NMIA, which opened in late 2025, claims as many as 13 new freighter services are set to take off soon, connecting major markets across Asia and Europe. And yesterday, Hong Kong Air Cargo yesterday became its first international freighter operator, with a service on behalf of DHL Global Forwarding. The all-cargo carrier will operate thrice-weekly flights between Hong Kong and NMIA with an A330-200F freighter it says has the capacity to carry 60 tons. The airport authority said: "With phased, scalable, and tech-enabled cargo infrastructure designed for domestic, international express and specialised shipments, NMIA continues to strengthen its role as an integrated logistics and trade gateway for Maharashtra State and Western India," it added. With Hong Kong-based Cathay Cargo and Air France-KLM having reportedly finalised plans to shift hub operations from Mumbai to NMIA, home-grown freighter lines like IndiGo-led CarGo and Chennai-based Afcom Holdings have already made their debut, and last month, Tata Group-owned Air India opened up belly cargo space for Indian exports on services to Abu Dhabi. Adani has ambitious air cargo development plans for NMIA, targeting to handle some 800,000 tons of cargo in the initial phase of operations, scaling up to three million tons in phases. Indian air cargo industry stakeholders have upbeat expectations from the new terminal, as trade volumes pick up pace. Combined cargo volumes handled by Indian airports surged 16% year on year in June, with international freight handling up 19% for the month, according to the latest data. "NMIA is poised to be the new freighter hub for India in the coming years," Mumbai-based industry veteran Joy John told The Loadstar. "Several major carriers, including Lufthansa, Emirates, Turkish, and FedEx, will start operating their freighters from Navi Mumbai, subject to internal approvals and SOPs [standard operating procedures] being aligned with the cargo terminal," he reckoned. Vineet Malhotra, co-founder and director at Kale Logistics Solutions, which provides cargo community system services at NNMIA, said the airport was "developing at a remarkable pace and is well positioned to realise its long-term capacity". He added: "The next-generation of airports will not compete simply on physical capacity, they will compete on how intelligently they move cargo, connect stakeholders, predict disruptions, and facilitate trade." Historically, Gulf carriers have dominated the Indian airfreight market, presently accounting for some 20% of total capacity, but Indian airlines are now working harder than ever to grab a slice of the freight boom.