At the TPM 2023 conference in Long Beach last month, one topic of conversation was for ocean carriers to transition from fossil fuels to decarbonized green fuels. Jeremy Nixon, CEO of Ocean Network Express (ONE), said that the cost of using green fuels will be $2000-3000 per forty-foot container. The average cost of fossil fuel is about $1000 per forty-foot container, so the green fuels will be two to three times more expensive.
Nixon identified the challenge the added cost brings. Some carriers may want to use green fuel, but they would not be able to compete with competitors that continue to use fossil fuels. His proposed solution is for regulators to set up a carbon tax that levels the playing field.
1. ONE’s Nixon says decarbonizing shipping could add $2,000-$3,000 per container, American Journal of Transportation, Mar 1, 2023. Accessed Mar 14, 2023.