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SHIPPING

Danish shipping giant calls for global carbon tax for shipping

Maersk, the world's largest shipping firm, on Wednesday called for a carbon tax on ship fuel to encourage the transition to cleaner alternatives.

Danish shipping giant calls for global carbon tax for shipping
The Maersk Batam container ship is loaded at the Port of Southampton. Photo: Adrian Dennis / AFP

The Danish firm proposed a tax of at least $450 per tonne of fuel, which works out to $150 per tonne of carbon.

Maersk CEO Soren Skou called the tax proposal “a levy to bridge the gap between the fossil fuels consumed by vessels today and greener alternatives that are currently more expensive.”

The call by Maersk for the fuel tax comes ahead of a meeting later this month of the International Maritime Organization, at which the UN body is due to consider how to reduce emissions from the shipping sector.

The sector is responsible for emitting 940 million tonnes of carbon per year, or about 2.5 percent of the global total, according to the European Commission, as most ships continue to use heavy fuel oil, one of the most polluting fuels.

Maersk would be hit by such a fuel tax as it is a major consumer of ship fuel, but the firm believes the IMO is not moving fast enough and wants to see additional measures to shift the industry towards cleaner options.

The firm, which currently has some 700 ships, has announced plans to launch in 2023 its first ship that will use biomethane or renewable natural gas as a fuel.

The company aims to become carbon neutral in 2050.

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BUSINESS

Maersk profits up as global supply chain disrupted

Danish shipping giant, AP Møller-Maersk, said Tuesday that profits were up sixfold in the third quarter as the coronavirus pandemic and global supply chain problems caused container prices to soar. 

Maersk headquarters in Copenhagen. The Danish shipping company posted hefty profits in the third quarter of 2021.
Maersk headquarters in Copenhagen. The Danish shipping company posted hefty profits in the third quarter of 2021. Photo: Niels Christian Vilmann/Ritzau Scanpix

“Maersk delivered record earnings” in the third quarter, chief executive Soren Skou said.

“In the ongoing exceptional market situation, with high demand in the US and global disruptions to the supply chains, we continued to increase capacity and expand our offerings to keep cargo moving for our customers.” 

Maersk said that its bottom-line net profit amounted to $5.438 billion in the period from July to September, compared with $947 million a year earlier.

Underlying, or operating, profit increased nearly fivefold to $5.859 billion and revenues jumped by 67 percent to $16.612 billion.

“Results in Q3 were driven by high freight rates in an exceptional market situation,” the group said.

Looking ahead, Maersk said it is sticking to its full year forecast for operating profit of 18-19 billion dollars. 

However, the ocean shipping division “is now expected to grow below” projected global container demand of between seven and nine percent this year, “subject to high uncertainties related to the current congestion and network disruption,” Maersk said.

“The current trading conditions are still subject to a higher-than-normal uncertainty due to the temporary nature of current demand patterns, disruptions in the supply chains,” it cautioned.

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