Shipping Market Review
05.25.2021
«We present a vision that aims to identify how ships, as an asset class, can re-emerge as an attractive investment opportunity in a zero-carbon future.»

The shipping industry is struggling to identify a clear pathway towards decarbonisation. The asset base is owned by small and medium-sized players. The fragmented industry structure complicates the articulation and development of an industry-wide strategy for zero-carbon fuels. Many initiatives are currently being reviewed. Costs remain a major issue. There is currently no zero-carbon fuel that can offer a global distribution network at scale which is price competitive with current bunker fuels.

The short- and medium-term outlook is shrouded in uncertainty. The industry’s low return on invested capital combined with the increased need to invest has dried up the supply of equity investors and created an environment where there are more sellers than buyers of vessels. We foresee a bumpy transition in the absence of clear long-term guidance from regulators that works to bridge and facilitate the energy transition.


The long-term value play is about reducing the global economy’s CO2

footprint by decarbonising the underlying industries and sectors. To some extent, this means replacing the oil and gas industry, which requires a standardised, scalable and costcompetitive zero-carbon fuel solution that can work across sectors to be identified. The transformation is likely to reshape industries and redistribute value creation.

Shipowners’ access to cargo, capital and ports could be at risk if they are considered not to be doing enough to reduce their CO2 footprint. Their ability to offer a cost-competitive zero-carbon service to their customers will, at some point, be a critical element in the renewal of their licence to operate.


We set out a vision for the future that aims to turn the climate agenda into a business opportunity. The next-generation zero-carbon-fuelled vessels could emerge as an attractive asset class. The route to additional value creation is primarily cost savings through standardisation and economies of scale.

The full version of the article is available here.

Release date
11.01.2020
Analytics on topic
Article
03.26.2021
Xinhua Headlines: Cross-border e-commerce gains traction aboard China-Europe freight trains
In 2020, a record 12,406 China-Europe freight train journeys were made, up 50 percent from 2019. The number hit 1,165 in January, up 66 percent year on year. It is reported that the EU statistics agency Eurostat has said China last year overtook the United States as the EU’s biggest trade partner, with the bilateral trade totaling around 586 billion euros (about 711 billion U.S. dollars).
Report
01.27.2021
Report
01.27.2021
Climate Action Pays Off in Transportation and Logistics

T&L companies that are pursuing tangible plans to reduce emissions have generated superior total shareholder return, according to BCG analysis. But to ensure economic sustainability, T&L players should move quickly to incorporate environmental sustainability into their business model and long-term strategies