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Port & Vessels

Sustainable Supply Chains in the Maritime Sector

Tech & Trial

In many respects the environmental impacts of global shipping have remained in an unmeasurable ‘black box’.  That is now starting to change:

- It is estimated that Shipping’s sulphur emissions from fuel are responsible for 250,000 premature deaths globally with an annual healthcare cost of $63bn. 

 (Source IMO, Transport & Environment)

- In October 2016 the International Maritime Organization (IMO) announced the tightening of Sulphur Emission standards for the world's oceans from 3.5% to 0.5% (m/m).

- In 2015, the last time a Sulphur Emission Control Area (SECA) zone was introduced, it cost the shipping industry $500m.                                                    (Source Platts)

- Sulphur scrubbing technology investment would cost ship owners between $25bn and $35bn, so they could continue to use High Sulphur Fuel Oil (HFSO 3.5%) (for the largest 7.5-10% of the world fleet).

 (Source Argus/Nisomar analysis)

- A switch of 2-3m barrels per day from HSFO to Marine Gas Oil (MGO) at today’s price spread around $270/MT would cost charterers $32bn p.a.  (Source Platts & Argus)

IMO Sulphur limits for 2008-2020(% mass) shown as SECA zones are increased








Many port cities are being forced to clean up their acts because of the health costs of Nitrous Oxide (NOx) and other emissions.  Ports make a significant contribution to this problem, through the direct emissions of ships and dockside equipment and the trucks and trains which service the supply chain.

So the maritime sector is having to change, but it is not only in the area of sustainability related data that the “marine chain” acts as a black box.  It is, after all, a series of inter-dependent ecosystems, which are continuously impacted by multiple other parties, providing scant and often conflicting operational data to its customers:

Neutral Supply Chain is working with its strategic partner Nisomar Ventures Ltd to provide new technology based tools and answers to the marine sector:

- Real time information and predictive analysis coupled with World Class Supply Chain Management.

- Attack the $20bn of “delay costs” in global ports.

- Develop sustainability strategy and help maritime businesses and organisations to implement.

- Virtualize the role of Port Agents and automate much of their role.

- Provide Charterers/Owners with information to make optimal price decisions

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