Shipping
GSBN NOTES DIGITALISATION’S IMPACT ON SHIPPING DECARBONISATION
April 11, 2024

Global Shipping Business Network (GSBN) cited the potential for "significant carbon reductions" through the adoption of digital processes in the shipping sector.

 

The not-for-proft consortium enabling paperless, accessible and sustainable growth in global trade with its data infrastructure and ecosystem of partners, commissioned global consultancy firm, SIA Partners, to conduct the study, "Impact of Digitalization in Driving Decarbonization in Shipping”.

 

GSBN noted that the study proposes comprehensive models based on live cases to quantify the opportunities that digitalised documentation processes represent for a sector that is a cornerstone of global trade.

 

These include the adoption of electronic Bills of Lading (eBL) and the use of paperless solutions during the cargo release process.

 

"Today, shipping accounts for nearly 3% of Greenhouse Gas (GHG) emissions. While shipping remains more carbon-efficient than air transport, there is a pressing need for decarbonisation within the industry as international oversight bodies seek to achieve net zero by 2050," the organisation said in a statement.

 

It added that a "major hurdle" in this direction is the continued reliance on paper documents for legal and regulatory purposes, which adds to the industry's carbon footprint.

 

GSBN noted that the study suggests that the absence of a universally adopted digital platform creates interoperability challenges, complicating efforts to reduce carbon emissions.

 

Against this backdrop, GSBN's comprehensive global data infrastructure emerges as a good candidate to support interoperability and facilitating the transition to a digital ecosystem.

 

The study also said as carriers pledge to fully adopt eBLs by 2030, the transition of the estimated 16 million paper bills issued annually could reduce CO2e emissions by up to 107,000 metric tons.

 

As a point of reference, the annual emissions for the country of Liechtenstein is 140,000 metric tons.

 

GSBN also highlighted the potential CO2e reduction per electronic bill of lading (eBL) is between 2.1 and 6.8 kg, and between 9.8 and 14 kg for an electronic Delivery Order (eDO).

 

It noted that in 2023, over 120,000 eBLs and more than 1 million shipments using GSBN’s Cargo Release solution contributed to an estimated CO2e reduction of up to 14,792 metric tons.

 

"As the shipping industry sails towards a greener horizon, the journey to net zero is not just about cleaner fuels but also about transforming the very fabric of trade through digitisation. Paper-laden processes are not only inefficient and insecure for modern trade but is underpinned by carbon intensive land and air logistics," said Alicia Lee, chief operating officer at GSBN.

 

GSBN then urged stakeholders across the shipping value chain to recognise the environmental and operational benefits of digital solutions, such as waste reduction and streamlined processes, that are crucial to achieving the industry's decarbonisation goals.

 

Maria Lee, managing director at SIA Partners, said, "Our study in collaboration with GSBN offers a clear case for digitisation in the evolution of shipping efficiency, security and decarbonisation. By embracing digital trade documentation such as eBLs and processes such as GSBN’s Cargo Release, not only can the industry cut GHG emissions, but also unlock greater speed, efficiency and offer value to their customers.”

 

The latest study is part of GSBN's on-going efforts to partner with organisations including DNV, Global Centre for Maritime Decarbonisation (GCMD), Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping (MMMCZCS), to pave the way to support the industry’s decarbonisation transition.