FBEO - Sustainable Strategies

The transition to a circular economy in the shipping industry offers a transformative opportunity to tackle sustainability challenges, particularly in reducing greenhouse gas (GHG) emissions and achieving the Sustainable Development Goals (SDGs) set by the United Nations 2030 Agenda. Shipping industry decarbonize waste management processes across Scope 1, Scope 2, and Scope 3 emissions through green technologies, for mitigating climate change (SDG13) and protecting marine life (SDG14). The concept of "Circular Harmony" which focuses on the interdependence of economic, social, and environmental goals for shipping sustainability, is still limitedly explored. The existent literature often addresses waste management and the promotion of affordable and clean energy (SDG7) in a fragmented manner, limiting knowledge on the integrated role of green technology breakthroughs and the measurement and internal reporting of Scope 3 emissions through carbon accounting systems. Furthermore, comprehensive insights into the linkages between profit, environmental concerns, and social challenges in shipping are lacking. Consequently, this study conducts a Systematic Literature Review (SLR) and bibliometric analysis of articles from Scopus and Google Scholar, spanning 1990 to 2024. By analysing waste decarbonization strategies, challenges, and opportunities in carbon accounting for shipping circular harmony, this study highlights the importance of comprehensive three-dimensional accounting systems that balance sustainability goals across economic, environmental, and social spheres. The study concludes with a future research agenda focused on innovations in carbon management systems, digitalization, and collaborative approaches across the shipping value chain to meet the industry's sustainability targets.
Keywords: 
Waste Decarbonization Processes, GHG-Scope 3 Emission, Green Technologies, Sustainable Development Goals (SDGs), Shipping Sustainability.

This study investigates how shippers' characteristics, such as transportation cost sensitivity, safety requirements, temperature sensitivity, and hygiene and compliance criticality, influence container vessel owners' adoption of alternative fuels, a key step in reducing emissions in maritime transport. Shippers, as demand drivers and ultimate cost bearers, play an important role in shaping green shipping decisions. Using HS Code data from e-bills of lading, shippers are classified into industry sectors. Dummy variables are then constructed to represent key industry attributes. Combined with vessel data from registration databases, the analysis uses logit regression to examine fuel adoption patterns. The results show that industries with high safety requirements, such as chemicals and pharmaceuticals, favor LNG, while cost-sensitive sectors, like textiles, rely more on conventional fuels. Food-related industries show mixed preferences, balancing reliability and renewable energy potential. These findings explore the interplay between shipper needs and fuel choices, offering insights for policymakers to develop targeted incentives and for carriers to align strategies with market demand, supporting the transition to sustainable maritime operations.

The maritime industry (including ports, shipping, fishing, and coastal and marine tourism) is a catalyst for economic development, which is critically needed in South Africa. The Transnet National Port Authority (TNPA) is the landlord for all commercial ports in South Africa and has identified extreme weather events and climate change mitigation failures as significant risks, as highlighted in their 2022 annual report (Transnet, 2022). Other climate change or incremental weather challenges experienced by the ports, with extreme weather, especially wind speeds over 60 kilometers an hour, may affect container movement and cause ports to be wind-bound. This means that no container movement can happen within the ports, causing a decrease in productivity and the need for efforts and approaches that promote port resilience. implement climate adaptation measures to protect port infrastructure. Preliminary literature suggests that retrofitting ports with higher sea walls, redesigning harbour facilities to accommodate rising water levels, and integrating green technologies into port operations (Mojafi, 2014; Brook et al., 2024) can enhance port resilience. These adaptations will be critical for ensuring that the ports remain operational and competitive in response to climate change, particularly as global trade patterns shift due to the Red Sea shipping crisis of Houthi rebel attacks (Mojafi, 2014; Brook et al., 2024). Moreover, promoting green ports, which incorporate energy-efficient technologies and low-carbon practices, will align with broader efforts to reduce South Africa's carbon footprint and carbon emissions and contribute towards port resilience.

This study empirically investigates how emissions of dry bulk carriers are affected by the IMO regulations and the freight market, among other factors by utilizing real-life observed emission data from 1228 vessel voyages during 2021 and 2023. This study explores the causal effect of freight rates on Greenhouse Gas (GHG) emissions in the dry bulk sector and in the presence of IMO regulation. This study is based upon the hypothesis that the causal association between freight rates and CO2 emissions is bidirectional: due to the changing nature of the shipping industry in view of IMO regulation implemented since January 2023, higher freight rates are earned not only through the interaction of demand and supply in the freight market, but also through modern ships environmentally friendly, or older ships with lower speed making longer distance journeys and of larger size. The results confirm our hypothesis that there is an inverse relationship between freight rates and GHG emissions given the 2023 regulation through the CII (Carbon Intensity Indicator) which directly impinges on the operation of the vessel. Our results suggest that average speed and route frequency simultaneously affect carbon intensity and regulation implementation.