The problem is that most ship engines burn heavy marine fuel oil, which produces not only carbon dioxide (CO 2) but other pollutants as well. But it has also attracted attention for its environmental impact: It accounts for 3% of global greenhouse gas (GHG) emissions. It is the most cost-effective way to move large volumes of goods such as oil, mineral ores, grains, and containerized cargo over long distances. Maritime transport is the backbone of international trade. Managers in supply chain and sourcing need to start planning for these changes. ![]() ![]() Plus, European Union regulations that are likely to be passed before the end of 2022 and whose initial phase would begin in 2023 promise to add additional costs and complexity. New rules from the International Maritime Organization (IMO), the United Nations agency responsible for regulating global shipping, will have significant implications for how container lines design their services and will have consequences for production location choices that underpin global supply chains. Even as companies around the world continue to struggle with the impacts of the pandemic and the war in Ukraine on global supply chains, there is another challenge looming: new environmental regulations that promise to change how shipping companies operate many transoceanic and regional routes.
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