Intercargo: GHG regulations should tax the entire supply chain

INTERCARGO is advocating for fairness in greenhouse gas (GHG) reduction regulations by emphasising that they should not only apply to shipping operators but to the entire supply chain, reports Athens' Safety4Sea.

The association highlights the global nature of the shipping industry and asserts that the International Maritime Organisation (IMO), as a global regulator, is best positioned to establish a level playing field for this diverse industry and the nations it serves.

However, Intercargo warns that the IMO should be cautious not to create regulations that isolate the shipping sector.

Intercargo chairman Dimitris Fafalios cautions that regulating shipping alone could lead to distortions and risks in global trade.

Mr Fafalios said various stakeholders, including shipowners, fuel producers, charterers, cargo owners, shippers, receivers, ports, and terminal managers, all share responsibilities in the daily operations of shipping.

While fully supporting the IMO's ambition to achieve net zero emission shipping by 2050, Intercargo stresses that the burden of decarbonization should not solely fall on ship operators. Instead, it calls for a holistic approach involving the entire supply chain.

Intercargo actively participates in IMO discussions and plans to submit a paper to the Marine Environment Protection Committee (MEPC) meeting in 2024.

The paper will address the impact of idle time, short voyages, and the ratio of laden versus ballast voyages on vessels' Carbon Intensity Indicator (CII) ratings.

During Intercargo's semi-annual meetings in Dubai decarbonization was a central topic of discussion.

Members engaged in conversations about GHG reduction, fuel lifecycle analysis, the implementation of international and regional regulations, and the exchange of experiences and information.

The association expressed satisfaction with the record number of members who participated in person and remotely in Dubai, appreciating their expertise and enthusiasm, which enabled Intercargo to contribute meaningfully at the IMO and other industry forums.