Container industry CO2 emissions fell in 1Q 2023 on 10 out of the world's 13 busiest ocean freight routes, Xenetareports. The US West Coast to the Far East trade corridor recorded the most notable decline in emissions, and Taiwanese container shipping player Yang Ming recorded the most emission cuts for the second consecutive quarter, according to the Carbon Emissions Index (CEI). These positive improvements are largely attributed to carriers reducing speeds, which has led to fuel efficiency gains, and allowed them to accommodate for lower demand in a subdued economic climate, Xeneta analysts say. Despite this, analysts have concerns about whether carriers' commitment to reducing emissions will continue, especially when market conditions improve.

Europe, however, has seen a surge in its vessel emissions due to increased LNG activity: A surge in LNG vessel activity in 2022 has led to a three-year high in carbon emissions from Europe's shipping sector, according to S&P Global. Emissions from ships in EU territorial waters rose 3% y-o-y, according to data from the European Maritime Safety Agency. Containerships and bulk carriers were the largest emitters, while LNG tankers and cruise ships also recorded significant emission rises. Europe's increasing reliance on LNG imports, due to reduced dependency on Russian gas following the Ukraine conflict, has been a key factor, S&P Global reports.

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