Shipping

America’s first large-scale offshore wind farms began sending power to the Northeast in early 2024, but a wave of wind farm project cancellations and rising costs have left many people with doubts about the industry’s future in the U.S. Several big hitters, including Ørsted, Equinor, BP and Avangrid, have canceled contracts or sought to renegotiate them in recent months. Pulling out meant the companies faced cancellation penalties ranging from US$16 million to several hundred million dollars per project. It also resulted in Siemens Energy, the world’s largest maker of offshore wind turbines, anticipating financial losses in 2024 of around $2.2 billion. Altogether, projects that had been canceled by the end of 2023 were expected to total more than 12 gigawatts of power, representing more than half of the capacity in the project pipeline. So, what happened, and can the U.S. offshore wind industry recover? Estimates...

Humans are racing to harness the ocean’s vast potential to power global economic growth. Worldwide, ocean-based industries such as fishing, shipping and energy production generate at least US$1.5 trillion in economic activity each year and support 31 million jobs. This value has been increasing exponentially over the past 50 years and is expected to double by 2030. Transparency in monitoring this “blue acceleration” is crucial to prevent environmental degradation, overexploitation of fisheries and marine resources, and lawless behavior such as illegal fishing and human trafficking. Open information also will make countries better able to manage vital ocean resources effectively. But the sheer size of the ocean has made tracking industrial activities at a broad scale impractical – until now. A newly published study in the journal Nature combines satellite images, vessel GPS data and artificial intelligence to reveal human industrial activities across the...

The world’s largest shipping companies are starting to update their fleets for a greener future. Maersk received the world’s first dual-fuel methanol container ship in July 2023, and dozens more container ships that can run on alternative fuels are currently on order. The industry – responsible for about 3% of global greenhouse gas emissions, more than Canada and Ireland combined – has reasons to act and to have some confidence in its multimillion-dollar investments. On July 7, the 175 member countries of the International Maritime Organization, a United Nations agency that regulates global shipping, agreed to a new climate strategy that includes reaching net-zero greenhouse gas emissions “by or around, i.e., close to, 2050.” The strategy’s language is vague, obscure and almost noncommittal. But it points the industry toward a cleaner future. New European Union rules will also soon go into effect that will significantly raise costs for...

E-commerce may make shopping more convenient, but it has a dark side that most consumers never see. Say you order an electric toothbrush and two shirts for yourself during a sale on Amazon. You unpack your order and discover that the electric toothbrush won’t charge and only one shirt fits you. So, you decide to return the unwanted shirt and the electric toothbrush. Returns like this might seem simple, and often they’re free for the consumer. But managing those returns can get costly for retailers, so much so that many returned items are simply thrown out. In 2022, returns cost retailers about US$816 billion in lost sales. That’s nearly as much as the U.S. spent on public schools and almost twice the cost of returns in 2020. The return process, with transportation and packaging, also generated about 24 million metric tons of planet-warming carbon dioxide emissions in 2022. Together, costs and emissions create a sustainability problem for retailers and the p...

Most of the clothing and gadgets you buy in stores today were once in shipping containers, sailing across the ocean. Ships carry over 80% of the world’s traded goods. But they have a problem – the majority of them burn heavy sulfur fuel oil, which is a driver of climate change. While cargo ships’ engines have become more efficient over time, the industry is under growing pressure to eliminate its carbon footprint. European Union legislators reached an agreement to require an 80% drop in shipping fuels’ greenhouse gas intensity by 2050 and to require shipping lines to pay for the greenhouse gases their ships release. The International Maritime Organization, the United Nations agency that regulates international shipping, also plans to strengthen its climate strategy this summer. The IMO’s current goal is to cut shipping emissions 50% by 2050. President Joe Biden said on April 20, 2023, that the U.S. would push for a new international goal of zero emi...