SHIPPING INDUSTRY EXEC SEES CHALLENGES ON THE PATH TO 'GREENER' OPERATIONS

As the speaker for the Eno Foundation's fifth "Goods Movement and the Environment" symposium on December 14, American President Lines CEO Ron Widdows reviewed several challenges-including high "clean fuel" prices and overlapping regulatory structures-that the shipping industry is facing in its drive to achieve environmentally friendly operations.

Widdows explained that although low-sulfur fuel is beneficial to the environment, it will not gain widespread use until its price decreases. Currently, low-sulfur fuels are three times more expensive than regular varieties. Since much of the added cost of a fuel change would be passed on to customers, and therefore have a significant impact on the final cost of goods, shippers are reluctant to make the switch.

Overlapping regulations are another concern. Shipping is a global industry driven by international standards, and Widdows urged the federal government to take a leadership role in helping to untangle a web of often conflicting environmental requirements imposed upon shippers doing business in the United States by federal, state, and local authorities. According to Widdows, a simplified regulatory arrangement would help shippers to better comply with environmental mandates and could streamline efforts to build and develop new U.S. ports, which is critical to alleviating congestion-particularly on the West Coast.

Widdows indicated that the industry is making progress. "Pier pass" systems, which provide financial incentives to shippers and truckers to move volume on nights and weekends, are reducing the congestion and idling that produces harmful emissions during daytime hours. Shipping companies are building new ships featuring double hulls and enhanced ballast space to make fuel tanks less susceptible to rupture. And, using sound barriers and computerized lighting systems, the industry is working closely with communities to lessen noise and light pollution impacts from ports. (Posted 2/2006)