In a recent development, Scan Global Logistics is adding Hapag-Lloyd’s Ship Green solution to its emissions-reduction product line for ocean freight customers.
The partnership’s physical Book-and-Claim model, which is based on mass balance, allows customers to make claims for verified emission reductions.
The solution focuses on Scope 3 emissions and gives global supply chain leaders a tangible way to act as low-carbon shipping fuels as well as infrastructure are being developed.
Partnership Highlights Ocean Freight Emissions
Hapag-Lloyd and Scan Global Logistics are growing their decarbonisation partnership amid growing pressure from global shippers to slash Scope 3 emissions throughout complex supply chains.
As part of the deepened collaboration, Scan Global Logistics will add Hapag-Lloyd’s Ship Green solution to its current portfolio of emissions-reducing freight products. The move provides SGL customers a more direct way of reducing emissions related to ocean transport without having to redesign logistics networks or change shipment flow patterns.
That means something to corporate sustainability teams. Decarbonising ocean freight remains one of the challenging areas, as shipping is heavily reliant on fuel availability, vessel infrastructure as well as global port systems. Low-carbon fuels are coming on stream, but the supply remains limited. Freight buyers are seeking solutions that can be delivered now and evaluated with reliability in that gap.
According to managing director of global sales at Hapag-Lloyd, Danny Smoulders, “Together with Scan Global Logistics, we are driving forward practical solutions to reduce emissions in ocean freight. Ship Green enables customers to act today and take meaningful steps towards their sustainability targets.”
Book-And-Claim Offers Customer Adaptability
The partnership applies a physical Book-and-Claim approach according to the mass balance principle. Under the model, Hapag-Lloyd mixes biofuel within the shipping fuel mix. Ocean freight customers are able to claim verified emission reductions even if the lower-emission fuel is not being utilised on their particular vessel or shipment.
That infrastructure is built for global supply chains, in which cargo shifts through multiple carriers and routes as well as ports. It enables companies to support biofuel use within the shipping system, whilst at the same time tying those reductions back to their own reporting on emissions related to goods.
For ocean freight customers, the method offers greater flexibility compared to route-specific solutions. It also helps to prevent the delays triggered by the patchy deployment of low-carbon shipping infrastructure throughout regions.
For SGL, the integration adds to the tools available to customers looking for quantifiable reductions in emissions from ocean shipping. The solution enables companies to act in real time across their global supply chains in an open and adaptable manner, the company said.
According to Global Head of Sustainability & ESG at Scan Global Logistics, Martin Andersen, “Ocean biofuel is a powerful solution for customers as it reduces emissions without changing anything in the supply chain in an affordable way.”
Pressure Mounts on Scope 3
As companies are undergoing greater scrutiny on indirect emissions, the commercial case is becoming clearer. Freight and logistics are part of Scope 3 inventories in many multinationals, where quality of data and cost reduction pathways are still challenging.
Investors and regulators, as well as corporate buyers, are demanding additional evidence that climate targets are not just about direct operations. That’s driving procurement and supply chain teams to take into account how freight choices impact corporate decarbonisation plans.
Solutions like Ship Green do not negate the need for a large-scale transition of fuels within the shipping industry. But they can assist companies to begin cutting reported transport emissions whilst the sector continues to build up its capacity for cleaner fuels.
The deal is a pragmatic change in logistics procurement for executives. Freight evaluation is not only cost, swiftness and dependability anymore. Emissions performance increasingly is being reflected in contract design and supplier selection as well as customer reporting.
Shipping’s Shift Needs Scalable Tools
The shipping industry in general is still in a challenging transition stage. Carriers make investments in substitute fuels, efficiency measures, and cleaner vessel technology, but the timeline is inconsistent. Fuel availability differs a lot by region, and infrastructure development depends upon policy support, allocation of capital, and demand from cargo owners.
Hence, there is a need for action on the demand side. By making it easier for ocean freight customers to purchase lower-emission transport, big goods forwarders as well as carriers assist in creating a marketplace for cleaner fuels. They also provide companies a clearer way to match logistics spending with commitments to the environment.
For Scan Global Logistics, Hapag- The expanded partnership with Lloyd provides a commercial route to decarbonise ocean shipping. It is a chance for ocean freight customers to do something prior to the full shipping transition being finished.
The worldwide relevance is obvious. Supply chains span borders and regulations as well as carbon accounting systems. As climate disclosure standards become more stringent and customers call for lower-carbon logistics, companies that can minimize freight emissions through transparent, validated mechanisms are going to be better positioned.
