Ocean Network Express: We're aiming for a 70% cut in CO2 per ton-mile by 2030 from 2008

Right. The mitigating factor in all of this for a long time people have noted as well, but the good news is at least there is still a situation of over capacity in shipping with actual ships themselves as well as containers. Yet you are ramping up your capacity. Why? Yeah. So I think you know we’re serving to global trade. We’re trying to keep this very, very complex supply chain moving and a lot of trade and trade challenges happening. But the underlying story behind this is that the industry in addition to supplying global supply chains and keeping the whole global economy going is it has to decarbonize as well. So we have to build forward, we have to build forward on the new green assets and a chip typically takes you know three-week, three years to to actually order and bring through to production. So to get to net 0 by 2050, which is our objective generally for the industry and for O&E, we need to be bringing those assets online now on a consistent basis and bringing in the green fuels and looking forward to to their introductions. So you’re looking at planning through the crisis we’re in right now. Yeah, indeed, indeed. So you know we we we have to every every year we have new challenges, new developments, political, economic, weather related etcetera, but we have to keep those supply chains moving. So we have to have enough ships, we have to have enough ways of moving the freight through different corridors. But we need those assets and ships to also have a lower carbon footprint and in fact start to use the new green fuels from 227 onwards. So that we can start to bring our carbon footprint down in line with our customers requirements because our scope one, our our customers scope 3 and we have to you know we have to decarbonize shipping, we have to decarbonize the world, we have to bring these new ships. So Jeremy talk to us about the greening of your fleet as it were and decarbonization. You know, we, we talk pretty regularly with the folks in aviation about how with aviation fuel, hybrid fuels etcetera, technology has has put sort of an upper limit on just how much can be mixed in up to 50% right now, right. That transition hasn’t happened with I think for cars and trucks just yet. What about for shipping? Yeah, so for landslide transportation it’s a lot more simple. They can use electric vehicles, they can plug in, they can recharge very quickly. But the size of these ships, they’re on transits and crossing oceans 3540 days. We don’t have the option of going to electric power. So we have to go for new green type of fuels which are much more expensive and have a low lower fuel capability in terms of the energy they produce. So we’ve been working as an industry in particular as ONE to try and squeeze out the lower down the carbon footprint per tonne mile for the last 10 years using existing fuel oil. But we’re at the end of the runway on that. We squeezed everything we can out with fuel oil, but fuel oil is still a carbon fuel and we have to remove that. So the new ships coming, we’ll be using green methanol or using bio gas and in the longer term, maybe using green ammonia as well, needs a completely different ship system and new design, new engines, new fuel tank methods and new safety requirements on board to be able to do that. So it takes time and it needs a lot of technology. And in addition to that, we’re also using other ways of reducing down the efficiency, improving the efficiency and reducing down the carbon footprint. So you’ll see now a lot of our magenta ships will have these bow Shields on. We’re looking now these under underneath the hull. We’ve got these air lubrication systems. We’re starting to bring in drag and improve efficiency exactly and we’re looking at you know, heat exchange. So when the fumes are coming from the funnel, we can reuse that energy as well. We’re using different paint systems, different hull profiles. So the industry is actually very innovative in terms of reducing down that carbon footprint. And by 2030, our company is aiming for about a 70% reduction in our CO2 per tonne mile compared with 2008. But the real challenge is getting past that and actually bringing that right down to net 0 by 2050. So we need these new green ships and we need to be investing now to bring those through.