Although shipping is the cleanest form of transport, it’s not quite perfect. Cargill is a member of several groups that promote sustainability on the high seas
Recently, Cargill became the first player in the industry to publicly commit to staying away from the crafts that cause the most pollution. Cargill Ocean Transportation doesn’t own any vessels, but it does charter over 500 of them, making it one of the biggest players in the sector.
“Charterers will play an increasingly significant role in defining how the shipping industry integrates sustainability into strategy and operations,” said Alastair Fischbacher, the director of the Sustainable Shipping Initiative.
“Demonstrating how shipping can strengthen, not compromise, their customers’ supply chains has the potential to become an increasingly powerful commercial tool.”
According to Anda Cristescu, global operations manager for Cargill OT, integrating sustainability into the company’s business isn’t just the right thing for people and the environment – it also makes business sense.
“We want to be successful in the long term, protecting the people who work on our vessels and the environment at the same time. Choosing the vessels that meet high safety and environment targets allows us to do just that,” said Cristescu.
Cargill started chartering cleaner ships preferentially in 2012. As a benchmark, it used the EVDI Index developed by RightShip, a company that Cargill partially owns, and the specialized NGO called the Carbon War Room.
The EVDI scale goes from A to G. Cargill decided to no longer use the most polluting vessels (those in the categories F and G on the scale), unless there is no other ship available.
Hurry slowly
Because climate change is top-of-mind, many people may think of CO2 when they think of “emissions.” But the shipping industry has to worry about other sustainability risks, too. Because they run on bunker fuel, a much cruder, heavier oil than what’s found in cars, cargo ships emit a lot more nitrous and sulfuric oxide. Even ballast water, which is used to stabilize the unloaded cargo ship, is an issue. If you take it in at one port and dump it in another, you risk contaminating coastal waters with non-native, potentially invasive species.
Cargill is discussing all of these issues, and many more, with other shipping leaders that are members of the Sustainable Shipping Initiative, including Maersk, Unilever, Akzo Nobel, Wartsila and others. They’re working together to find common solutions to help the industry thrive and protect the environment at the same time.
In addition, Cargill has co-funded experiments with SkySails, a German-designed giant kite that acts like a flying sail and is projected to save modern cargo ships a lot of fuel. The project has encountered obstacles that demonstrate the challenge of making wind-powered vessels a reality, but it does underscore Cargill’s commitment to investing in innovative shipping solutions that aim to transform the industry.
A steadfast commitment
All these practices have ensured that Cargill remains in a good position to lay a claim to sustainability in its shipping business.
“We’ve been able to use specific examples and data to show our customers, employees, suppliers and partners in general that the topic of sustainability is important to our business. We’ve heard from our customers that our focus on environment and community is something they really appreciate, and we’ll work together to address some of their sustainability concerns,” said John McCluckie, head of sales and marketing for Cargill OT.
However, in a business as volatile as shipping and a world where oil prices have dipped dramatically in recent months, the basic assumptions of sustainable shipping – namely that the high price of oil is an incentive to act sustainably – don’t necessarily hold water any longer.
“While oil prices significantly impact the cost of chartering a vessel, we’re committed to operating responsibility and sustainably in all circumstances. Our focus on the environment and communities is core to our business strategy,” said Roger Janson, president of Cargill OT.
Source: Cargill
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