Red Sea shipping diversions boost carbon emissions equivalent to 9 mn cars

Ships navigating around the Red Sea due to ongoing security threats from Houthi rebels are contributing to carbon emissions, posing challenges for companies attempting to reduce pollution in their supply chains, Bloomberg News reported.

Instead of passing through the Suez Canal, vessels have opted for the longer route around South Africa's Cape of Good Hope since mid-December, adding at least a week to their journey between South Asia and northern Europe.

According to a report by consultancy INVERTO, a subsidiary of Boston Consulting Group Inc., this detour has resulted in approximately 13.6 million additional tons of CO2 emissions over the past four months.

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This is equivalent to the pollution generated by about 9 million cars during the same period.

Sushank Agarwal, a managing director at INVERTO, spoke about the implications of these extra emissions on companies' efforts to achieve their net zero targets.

The surge in carbon emissions arising from the Red Sea shipping diversions presents a difficult challenge for companies motivated to reduce their environmental footprint.

Agarwal noted the dilemma faced by companies, indicating that meeting net zero targets would call for either reducing emissions elsewhere in their supply chains or investing in costly carbon offset initiatives.

Although the extra emissions from the shipping diversions represent a fraction of the shipping industry's overall carbon footprint, they highlight other major concerns about environmental sustainability.

The International Maritime Organisation, the sector's global regulator, is set to implement the world's first global carbon levy in 2027.

However, with global warming, the urgency to address emissions from shipping remains vital.

The industry plays a key role in global trade, carrying 80 per cent of the world's goods and making efforts to mitigate its environmental impact remain crucial.

A report from Oslo-based freight-analytics company Xeneta reveals a sharp increase in carbon emissions specifically within container shipping.

Emissions from voyages between Asia and the Mediterranean surged by 63 per cent in the last quarter compared to the preceding three months.

The Xeneta and Marine Benchmark Carbon Emissions Index, tracking emissions per ton of cargo transported along major trade lanes, reached record levels in the first quarter of this year.

Emily Stausbøll, a market analyst at Xeneta, noted that vessels are also operating at higher speeds to compensate for the longer routes, further aggravating carbon emissions.

Data from Clarkson Research Services Ltd. indicates a notable uptick in the average speed of the world's largest container ships following the escalation of Red Sea security threats and subsequent diversions.

The speed increased above 16 knots compared to speeds below 15 knots earlier in December.

The calculation by INVERTO, equating the additional CO2 emissions to that generated by 9 million cars, highlights the environmental toll of the shipping diversions.

(With inputs from Bloomberg)