The new editions of our OM texts feature Celebrity Cruises, and Supp. 5 (Sustainability in the Supply Chain) includes a video case study called “Saving the Waves at Celebrity Cruises.” This recent article in The Wall Street Journal (May 11, 2019) provides a complementary discussion of sustainability issues at sea, as more than 100 shipowners have just signed a UN motion calling for slower sailing speeds to cut greenhouse gas emissions.
The measure could ripple across international supply chains, with products taking more time to be delivered and cargo owners paying more for transport costs because of the longer sailings. But some container carriers oppose the slow-steaming plan, which they believe would undermine their efforts to improve service in the time-sensitive supply chains of their big consumer-goods customers.
Ships move the world’s commodities like oil, iron ore and grains and the vast majority of manufactured goods, including cars, home appliances, clothing and food. They also contribute around 3% of the world’s global pollution, an amount comparable to major emitting countries.
A new maritime environmental target takes effect Jan. 1st,, when vessels will be required to slash sulfur emissions that come from burning the heavy oil that powers ships. International Maritime Organization members have also agreed to improve ship fuel efficiency by 30% by 2025 and to slash greenhouse gas emissions by half by 2050, compared with 2008 levels.
Much of the sulfur-emissions reduction will come from using new low-sulfur fuel that oil refiners are preparing for the market. Operators also are buying equipment known as scrubbers that treat engine exhaust. The shift will add up to $15 billion a year to fuel costs industrywide.
Classroom discussion questions:
- What are the tradeoffs shippers and cruise lines are facing?
- What issues impact sustainability on the seas?