Swire Bulk is very clear that it needs to be at the forefront of the changes and decarbonisation of the maritime industry.
But chief executive Peter Norborg said the bulk company is in a dilemma over choosing an alternative green fuel.
He said Swire Bulk operates handysize and ultramax bulkers, and these two types of vessels are likely to be the last to transition because they tramp around the world to locations where the availability of green fuels in the future is still a question.
“I am really excited about this as it is a new challenge for me,” the dry bulk shipping veteran said. “I am very curious about where we are 10 years from now, and I am very happy that I am part of a company that wants to drive that change.”
But decarbonisation comes with costs and challenges.
Norborg said decarbonisation of the industry will require a new mindset for dry bulk operators as earnings from the sector are marginal.
“When we transform from conventional marine fuel to green methanol, the rule of thumb is that fuel [methanol] will cost four times more,” he said.
Norborg thinks the switch to alternative green fuel will double the delivery price of commodities and may disrupt the current trading pattern.
“It’s a dilemma and a challenge, but also an opportunity,” Norborg said. “I am very sure that there will be consumers who want carbon-neutral products, and it is very clear that the liner companies are offering carbon-neutral transportation.
“We need to offer the same to our customers because, otherwise, you may suddenly see that some of the even more traditional bulk commodities may go towards containers.”
