Shipping’s 2024 shakeup sees alliances form, fuel rules tighten, green corridors expand

Among 2024’s most influential events affecting the shipping sector, some came from unexpected places. Houthi attacks on ships transiting the Red Sea have slowed but not ceased, and were one of the major factors in deep re-thinks about shipping routes that are transformational and unlikely to snap back to previous operations anytime soon – if ever. European shipping alliance Gemini Corporation was born to quell the disruption and restore surety and confidence. Freight rate and fuel consumption may initially be adversely affected due to the newness, but Gemini’s plan includes decarbonization along with optimization, as is Premier Alliance from mainly Asian operators. Both alliances will start operations in February 2025.

Preparations for FuelEU Maritime regulations that go into effect January 1, 2025 have put a focus on where the low-carbon fuels will come from and how to trade emissions, including ship pooling to spread out the pain, er, cost of compliance. Another unexpected influence on decarbonizing shipping came when the EU imposed anti-dumping duties on imported Chinese Used Cooking Oil, the authenticity of which was at times under question. Exporters looked for alternative markets increasing availability of biofuel blends closer to home like B24 in Singapore, ironically fueling ships bound for Europe to comply with…FuelEU Maritime.

Green shipping corridors have been around for a few years but 2024 saw a marked uptick in announcements. Formed to boost adoption of alternative fuels, technology and practices to support decarbonization, these collaborations are in danger of not being able to scale the feasibility wall.

Low-carbon fuels made big leaps in the past year. The International Standards Organization released standards for methanol as a marine fuel, a major recognition. Also approved by the International Maritime Organization for 2H 2026 use…ammonia cargo as fuel. Classification societies around the world have been busy all year approving designs for alternative fuel technology including the approval in principle for the first US ammonia bunkering vessel, and The Port of Rotterdam made recent news with a permit for continuous methanol bunkering. Biofuel blends have increased in availability and decreased in price, but 2024’s fuel with the greatest potential in affordable decarbonization has been…LNG. Despite controversy over green claims from LNG use made by Carnival and MSC Cruises,  preparations in 2024 for LNG, with rapid growth in dual-fuel installations on newbuilds and infrastructure development ensure LNG and to the degree possible, bio-LNG will come to dominate low-cost low-carbon marine fuel offerings in the medium term.