EU to monitor shipping emissions from next year
International shipping, which accounts for around three percent of the world’s CO² emissions, is expected to increase it’s emissions output to contribute around 18 percent of the world’s CO² emissions by 2050 if regulation is not in place, according to the International Maritime Organisation (IMO).
Despite years of effort by the IMO and the United Nations’ Climate Division, there is no international regulation of CO² emissions from the shipping industry. Last year, the IMO agreed to introduce energy efficiency measures for the design of new ships by 2015, however this measure alone will not ensure emissions are cut quickly enough, according to a statement by the EU Commission.
"Discussions about further global measures are ongoing at IMO level, but we need intermediary steps to quickly deliver emissions reductions, such as energy efficiency measures also for existing ships," the Commission added.
SEE RECENT STORIES FROM THE WDM CONTENT NETWORK:
- Qantas acquires Australian air Express, sells StarTrack
- Briggs completes Barloworld Acquisition
- White House helps to remove slavery from supply chains
The Commission has threatened to enforce its own shipping regulations is the IMO fails to find a global solution, in a similar move to their recent enforcement on aviation, which saw the aviation sector included in the EU’s Emissions Trading System (ETS) from January 1st, causing a major diplomatic row.
The Commissions is said to be considering several options to reduce emissions, including a fuel/carbon tad, mandatory emissions reductions per ship or an inclusion in the ETS. The Commission hopes that setting a system for monitoring, reporting and verification of emissions based on fuel consumption is seen as a starting point towards a globally-agreed market-based solution.
It is “our intention to pursue such a monitoring, reporting and verification system in early 2013...This will help make progress at global level and feed into the IMO process,” the Commission said.
However, environmental groups were disappointed by the EU Commission’s plan, saying monitoring did not address the main issue of reducing emissions from ships.
“The call for improved energy efficiency for existing ships is a welcome move and efforts should proceed in parallel at the EU and IMO level but should not delay an early decision on an EU market-based measure,” said non-governmental organisations Transport and Environment and Seas at Risk told the press.
UPS Posts Record Second Quarter with Revenues of $23.4bn
Growth across each of its core segments resulted in record results for UPS in the second quarter, with group revenues climbing 14.5% year on year to $23.4bn.
The global logistics outfit achieved consolidated operating profit of $3.3bn, up 47.3% compared to the same period in 2020. It is the second consecutive quarter of record profit, and a significant rise on Q1’s $2.9bn.
UPS Q2 Revenues in Brief
- Consolidated revenues: $23.4bn (+14.5% yoy)
- Domestic: $14.4bn (+10.2%)
- International: $4.82bn (+30%)
- Supply Chain Solutions: $4.2bn (+14.3%)
The US company’s domestic segment performed steadily with 10.2% revenue growth to $14.4bn. But it was its international and supply chain solutions segments where UPS saw the biggest gains. Strong demand in Europe led an increase in international revenues of 30% to $4.82bn. UPS’ supply chain solutions division saw revenue growth of 14.3% to $4.2bn, driven, the company said, “by strong demand in nearly all businesses”.
UPS’ steady growth throughout the pandemic has been led by the overarching vision of its chief executive Carol Tomé to do “better not bigger”, focussing on efficiency and high margin deliveries through its network over pure scale and volume.
“I want to thank all UPSers for executing our strategy and delivering high service levels, which fuelled record financial results in the second quarter,” she said. “Through our better not bigger framework, we are moving our world forward by delivering what matters.”
UPS Completes Sales of UPS Freight
The second quarter also saw UPS complete the divestiture of UPS Freight in a deal worth $800m - with a surprise result for the division, now called TForce Freight, under new owner TFI International.
“The second quarter was historically significant for TFI International, with the closing of our UPS Freight acquisition and record performance across the board,” said Alain Bédard, chairman, President and Chief Executive Officer, TFI International. “Particularly gratifying is the performance of TForce Freight, which has exceeded our operating ratio targets far ahead of schedule, and we have only just begun our work.”
In it first two months of ownership TFI reported that adjusted operating ratio (OR) was 90.1% for TForce Freight, far outperforming its forecasted OR of 96-97%.
“I wish to thank our entire team for their hard work and remarkable efforts, and officially welcome aboard our new TForce Freight colleagues who have seamlessly come under the TFI umbrella and are already making stronger than expected contributions,” Bédard added.