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January 6 2020

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Januar y 6 2020 | The Journal of Commerce 71 www.joc.com ANNUAL REVIEW & OUTLOOK 2020 Government Part of the solution could be a better dispute resolution process. When a problem arises, how the service provider handles it can be the difference between relief and outrage for shippers. Dick Craig, former CEO of container carrier MOL America, said frequent communication is the key to engaging BCOs in resolving a dispute. He is now the vice president of busi - ness development of NACPC (North American Chassis Pool Cooperative). "You need to explain what you are doing, why you are doing, rather than a surprise charge on a bill. And oftentimes there are good reasons for demurrage or detention charges," Craig said. Fellmer, however, said good customer service won't make a difference, because ocean carriers cannot return any lost time. A better solution, she believes, is a process to vet fees before they are levied to dis- card any unreasonable charges. Ocean carriers and BCOs have very different definitions of "reasonable," which is why, she says, the FMC should be involved. JOC email: ari.ashe@ihsmarkit.com twitter: @arijashe THE DECARBONIZATION OF interna- tional trade is such a deeply transfor- mative process that greater regulatory involvement is needed to provide incentives for the transport industry, encourage investment, and ensure a uniform and fair rollout of emissions policies. This is the message coming from across the container transport supply chain, which is already facing tough emissions targets on the ocean side as mandated by the International Mari - time Organization (IMO) and on land by European Union regulators. The initial IMO strategy, unveiled in 2018, calls for a minimum 50 percent reduction from 2008 levels in global greenhouse gas (GHG) emissions from the container shipping industry by 2050. Equally importantly, the IMO requires finalized short-term measures by 2023 and mid-term measures to achieve a carbon dioxide (CO₂) emis- sion decline of 40 percent by 2030, while also encouraging efforts to phase out GHG emissions completely. In rules set by the European Council of the EU in June 2019, manufacturers are required to cut CO₂ emissions from new trucks on average by 15 percent from 2025, and by 30 percent from 2030, compared with 2019 levels. The targets are bind - ing, and truck manufacturers that do not comply will be penalized with an excess emissions premium. At a November meeting of the IMO Intersessional Working Group on Reduction of GHG Emissions from Ships, the agency concluded that the most effective way to reduce emis- sions was a mandatory goal-based approach that provided the incentive needed to drive innovation. No small task Shipping accounts for 2 to 3 percent of global CO₂ emissions — equivalent to major industrial coun- tries such as Germany — a proportion that is set to increase as global trade continues to grow. For the shipping industry to meet the IMO targets, ships will need to be powered by a carbon-free fuel, an area in which research is already underway. Maersk Line, the larg- est container carrier in the world, in October announced that it was partnering with global shippers BMW Group, H&M Group, Levi Strauss & Co., and Marks & Spencer to explore whether a blend of lignin and ethanol — known as LEO — could be the zero-carbon fuel shipping is seeking. Christopher J. Wiernicki, chair- man, president, and CEO of American Bureau of Shipping (ABS), an interna- tional classification organization, and chairman of ABS Group, a global risk consulting and technical services com- pany, said based on what can be seen today, three developmental pathways for future fuels can be identified, a conclusion also reached by Maersk. These are the LNG or light-gas pathway, the bio/synthetic pathway, Laying down the law Regulatory pressure key to zero-carbon fuel effort By Greg Knowler The FMC has proposed a rule that would allow the agency to take a more active role in detention and demurrage disputes. Alexander Khitrov / Shutterstock.com Shutterstock.com

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