The American people are looking for solutions to supply chain congestion resulting from the impacts of COVID-19. Unfortunately, the Ocean Shipping Reform Act of 2022, S.3580, which was marked up today by the Senate Commerce Committee, addresses none of the root causes of the U.S. landside congestion.

The World Shipping Council (WSC) together with prominent maritime nations and organisations representing all shipping sectors continue to work for the early adoption of an industry financed and IMO led research and development fund as a critical pathway to accelerate the development of technologies for zero carbon shipping.

Here are the facts: container shipping is a competitive industry with multiple ocean carriers actively challenging one another in the global marketplace and on the shipping lanes most relevant for U.S. trade,” said John Butler, President and CEO of the World Shipping Council. “It is disappointing that unfounded allegations are being levied against an industry that is moving more cargo right now than at any time in history in order to meet the unprecedented demand for imported goods during the pandemic.

“It is unfortunate that the President is demonizing ocean carriers, the industry that is the backbone of the U.S. and global economy and that has been working around the clock through the pandemic to move more cargo than at any time in history.

Allegations that the container shipping industry is highly concentrated and uncompetitive are factually incorrect. Ocean carriers actively compete against one another in the global marketplace, including on the shipping lanes most relevant for U.S. trade, while concentration levels in many other U.S. industries are markedly higher than those in container shipping. In a clear sign of a competitive market responding to increased demand, competition increased in 2021, with more ships operated by a larger pool of carriers serving the trans-Pacific trade.

Transitioning global shipping from a carbon dependent industry into one that operates without greenhouse gas (GHG) emissions is a massive task. Container and roro carriers are already investing in the development of zero GHG technologies and are committed to enabling the industry’s transition to zero, but clear global regulations are needed. The World Shipping Council (WSC) has identified six regulatory and economic pathways, all of which are critical for the nations of the UN International Maritime Organisation to address for a successful maritime energy transition.

“Ocean carriers have deployed every available ship and container to move the continuing record levels of cargo resulting from pandemic-driven U.S. demand for imports—but when ships cannot get into port to discharge and load cargo because of landside logistics breakdowns, it is clear that further regulating ocean carriers will not solve the deeper challenges in U.S. supply chains,” says John Butler, President & CEO of the WSC.

The European Parliament’s lead MEP on the EU ETS proposes amendments to the ETS for maritime that put the impact and efficiency of the EU Green Deal at risk, says World Shipping Council (WSC). WSC has two primary concerns: 1. The proposed changed definition of “responsible entity” would corrupt the ETS; 2. The bilateral agreements proposed would undermine progress towards global GHG policy.

The tragic incidents in Tianjin and Beirut have marked a decade of increased concern over the safety of dangerous goods stored in ports, terminals and other warehousing facilities. Four industry groups have collaborated to address the issue and produce best practice guidelines in the form of a White Paper and Warehouse Checklist.

Shippers and carriers met yesterday to talk about the causes and effects of recent supply chain disruption coinciding with the COVID 19 pandemic. The meeting brought together a broad representation of members from the European Shippers Council (ECS) and the World Shipping Council (WSC) and the Secretariat of the European Community Shipowners’ Associations (ECSA). This is the first of a planned series of meetings between shippers and carriers, in a joint effort to find solutions through dialogue and improve mutual understanding of the challenges each party faces. It is hoped these will also look beyond current supply chain disruptions to face a broader set of common future topics like decarbonisation and digitalisation.

“The House today passed HR 4996 without proper debate or committee process.  The bill is a political statement of frustration with supply chain challenges – frustrations that ocean carriers share.

The problem is that the bill is not designed to fix the end-to-end supply chain congestion that the world is experiencing, and it will not and cannot fix that congestion.

The World Shipping Council will continue to work with the Congress to seek real solutions that further strengthen the ocean transportation system that has supported the U.S. economy throughout the pandemic.”

“Our appeal to political leaders and regulators is to not get stuck in a cycle of ambition bidding, but to take action for inclusive change in the shipping industry. Whilst we are disappointed there was no decision, the MEPC 77 saw a notable increase in the number of nations supporting the establishment of an industry-financed research fund, pushing USD 5 billion into R&D towards zero-GHG technologies that will be available to all nations. The initiative is ready to launch, has support from the Green Climate Fund, and we will keep supporting member nations working for a positive resolution at MEPC 78,” says John Butler, WSC President & CEO.

Inclusion of shipping in the EU ETS will encourage shipping’s journey towards decarbonisation, but EU action threatens to undermine broader international progress if the ETS extends outside of the EU, says World Shipping Council (WSC).

“The EU can lead global climate action, but it can’t succeed alone. Advancing fuel-technology pathways in global shipping requires the shared commitment and cooperation of industry, governments and international regulators. Through the ETS, the EU has a unique opportunity to strengthen, motivate and complement global policy for reducing greenhouse gas emission in international shipping,” says John Butler, President & CEO.

As part of the EU Green Deal, the FuelEU Maritime Regulation intended to promote demand for lower greenhouse gas fuels can play an important role in shipping’s journey towards decarbonisation. In a position paper published today, the World Shipping Council (WSC), representing 90% of international liner shipping, welcomes the FuelEU proposal as an opportunity to drive progress towards EU targets and contribute to the decarbonisation of international shipping. However, the proposal’s actual impact will hinge on optimizing the geographical scope of FuelEU and making sure fuel availability keeps pace with fuel use requirements.

In striving for greater awareness and usage of the CTU Code in order to improve safety in the intermodal supply chain, the Cargo Integrity Group (CIG) has published its Quick Guide to the Code, and its accompanying Container Packing Checklist, in Arabic, Chinese, English, French, Russian and Spanish.

The Covid-19 cargo congestion brought on by extreme demand in combination with operational disruptions is very real and felt across supply chains globally. In the U.S. in particular, all parts of the supply chain are facing unprecedented pressures – there is a lack of rail and truck capacity, warehouses are full, and ports are bursting at the seams. It is in part in this context that the President is issuing an Executive Order that addresses shipping along with other industries.

The shipping industry has welcomed the growing momentum for a USD 5 billion R&D Fund for shipping, but is calling on governments to act in line with their climate commitments and not waste more time in moving forward with decisive action to support the decarbonisation of the industry.

We are committed to decarbonisation and ready to do our part. The international maritime transportation system drives the world economy. World trade and the world’s economies cannot afford a chaotic decarbonisation of shipping. Nor can time be lost in effectively tackling the challenge. We therefore invite all governments to show engagement and climate leadership on the international stage, through support for the IMRB at the UN IMO.

Ahead of President Biden’s climate summit, shipping industry bodies representing the majority of maritime trade have called on world leaders to quickly commence deliberations on how mandatory market-based measures (MBMs) could be implemented for international shipping.

The proposal to create a USD 5 billion USD International Maritime Research and Development Board (IMRB) was submitted to the UN’s International Maritime Organisation (IMO) on the 10th of March 2021 by Georgia, Greece, Japan, Liberia, Malta, Nigeria, Palau, Singapore, and Switzerland. Denmark now joins as a co-sponsor, and we expect several other nations to voice their support for the proposal at the next meeting of the IMO Marine Environment Protection Committee in June.