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IMO 2020: The Big Shipping Shake-Up

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IMO 2020 shipping Infographic

IMO 2020: The Big Shipping Shake-Up

Over 90% of all global trade takes place on our oceans.

Unfortunately, the network of 59,000 vessels powering international commerce runs on sulfur-laden bunker fuel, and resulting emissions are causing problems on dry land.

As today’s infographic by Breakwave Advisors demonstrates, new emissions regulations taking effect in 2020 will have a big impact on the world’s massive fleet of marine shipping vessels.

The Regulatory Impact

The International Maritime Organization (IMO) – the UN agency responsible for ensuring a clean, safe, and efficient global shipping industry – will be implementing new regulations that will have massive impact on maritime shipping.

The regulations, dubbed IMO 2020, will enforce a 0.5% sulfur emissions cap worldwide starting January 1, 2020 ─ a dramatic decrease from the current emissions cap of 3.5%.

Here are a few ways marine fuel will likely be affected by these regulations:

  • High-sulfur fuel oil will drop in price as the demand drops dramatically after January 1, 2020
  • Diesel, a low-sulfur fuel oil, will be in higher demand and should see a price increase
  • Refiners should also expect higher profits as refining runs increase to satisfy the new regulations

The Economic Impact

IMO 2020 will be one of the most dramatic fuel regulation changes ever implemented, with a significant impact on the global economy.

New regulations are certain to influence freight rates ─ the fees charged for delivering cargo from place to place. These rates can fluctuate depending on:

  • Time and distance between ports
  • Weight and density of the cargo
  • Freight classification
  • Mode of transport
  • Tariffs and taxes
  • Fuel costs

Rising fuel costs means rising freight rates, with much of these costs being passed to consumers.

In a full compliance scenario, we estimate the total impact to consumer wallets in 2020 could be around US$240 billion.

─ Goldman Sachs

The Environmental Impact

Not surprisingly, the world’s 59,000 transport ships, oil tankers, and cargo ships have a consequential impact on the environment.

Bunker fuel accounts for 7% of transportation oil consumption (~3.5 million barrels/day). Burning this fuel generates about 90% of all sulfur oxide and dioxide (SOx and SO2) emissions globally. In fact, the world’s 15 largest ships produce more SOx and SO2 emissions than every car combined.

These sulfur emissions can cause several harmful side effects on land ─ acid rain, smog, crop failures, and many respiratory illnesses such as lung cancer and asthma.

Changing Currents in the Shipping Sector

As IMO 2020’s implementation date nears, shippers have a few courses of action to become compliant and manage costs.

1) Switch to low-sulfur fuel

Bunker fuel use in the shipping industry was 3.5 million barrels per day in 2018, representing roughly 5% of global fuel demand.

Annual bunker fuel costs are predicted to rise by US$60 billion in 2020, a nearly 25% increase from 2019. Price increases this significant will directly impact freight rates ─ with no guarantee that fuel will always be available.

2) Slower Travel, Less Capacity

The costs of refining low-sulfur fuel will increase fuel prices. To offset this, shippers often travel at slower speeds.

For example, large ships might burn 280-300 metric tons of high-sulfur fuel oil (HSFO) a day at high speeds, but only 80-90 metric tons a day at slower speeds. Slower travel may cut costs and help reduce emissions, but it also decreases the capacity these vessels can transport due to longer travel times, which shrinks overall profit margins.

3) Refueling Detours

Adequate fuel supply will be a primary concern for shippers once IMO 2020 takes effect. Fuel shortages would cause inefficiencies and increase freight rates even more, as ships would be forced to detour to refuel more often.

4) Installing Scrubbers

A loophole of IMO 2020 is that emissions are regulated, not the actual sulfur content of fuel itself.

Rather than burning more expensive fuel, many shippers may decide to “capture” sulfur before it enters the environment by using scrubbers, devices that transfer sulfur emissions from exhaust to a disposal unit and discharges the emissions.

With IMO 2020 looming, only 1% of the global shipping fleet has been retrofitted with scrubbers. Forecasts for scrubber installations by mid-2020 run close to 5% of the current ships on the water.

There are a few reasons for such low numbers of installations. First, scrubbers are still somewhat unproven in maritime applications, so shippers are taking a “wait and see” approach. As well, even if a ship does qualify for a retrofit, cost savings won’t take effect until several years after installation. On the plus side, ships with scrubbers installed will still be able to use the existing, widely-available supply of bunker fuel.

Moving Forward

No matter which route shippers choose to take, the short-term impact is almost certainly going to mean higher freight rates for the marine shipping industry.

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China

The Emissions Impact of Coronavirus Lockdowns, As Shown by Satellites

While the COVID-19 pandemic has been all-consuming, these satellite images show its unintended environmental impacts on NO₂ emissions.

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The Emissions Impact of Coronavirus Lockdowns

There’s a high chance you’re reading this while practicing social distancing, or while your corner of the world is under some type of advised or enforced lockdown.

While these are necessary measures to contain the spread of the COVID-19 pandemic, such economic interruption is unprecedented in many ways—resulting in some surprising side effects.

The Evidence is in NO₂ Emissions

Nitrogen dioxide (NO₂) emissions, a major air pollutant, are closely linked to factory output and vehicles operating on the road.

As both industry and transport come to a halt during this pandemic, NO₂ emissions can be a good indicator of global economic activity—and the changes are visible from space.

These images from the Centre for Research on Energy and Clean Air (CREA), as well as satellite footage from NASA and the European Space Agency (ESA), show a drastic decline in NO₂ emissions over recent months, particularly across Italy and China.

NO₂ Emissions Across Italy

In Italy, the number of active COVID-19 cases has surpassed China (including the death toll). Amid emergency actions to lock down the entire nation, everything from schools and shops, to restaurants and even some churches, are closed.

Italy is also an industrial hub, with the sector accounting for nearly 24% of GDP. With many Italians urged to work from home if possible, visible economic activity has dropped considerably.

This 10-day moving average animation (from January 1st—March 11th, 2020) of nitrogen dioxide emissions across Europe clearly demonstrates how the drop in Italy’s economic activity has impacted the environment.


Source: European Space Agency (ESA)

That’s not all: a drop in boat traffic also means that Venice’s canals are clear for the time being, as small fish have begun inhabiting the waterways again. Experts are cautious to note that this does not necessarily mean the water quality is better.

NO₂ Emissions Across China

The emissions changes above China are possibly even more obvious to the eye. China is the world’s most important manufacturing hub and a significant contributor to greenhouse gases globally. But in the month following Lunar New Year (a week-long festival in early February), satellite imagery painted a different picture.

no2 emissions wuhan china
Source: NASA Earth Observatory

NO₂ emissions around the Hubei province, the original epicenter of the virus, steeply dropped as factories were forced to shutter their doors for the time being.

What’s more, there were measurable effects in the decline of other emission types from the drop in coal use during the same time, compared to years prior.

China Coal Use FInal

Back to the Status Quo?

In recent weeks, China has been able to flatten the curve of its total COVID-19 cases. As a result, the government is beginning to ease its restrictions—and it’s clear that social and economic activities are starting to pick back up in March.


Source: European Space Agency (ESA)

With the regular chain of events beginning to resume, it remains to be seen whether NO₂ emissions will rebound right back to their pre-pandemic levels.

This bounce-back effect—which can sometimes reverse any overall drop in emissions—is [called] “revenge pollution”. And in China, it has precedent.

Li Shuo, Senior climate policy advisor, Greenpeace East Asia

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Environment

The World’s Highest Mountains, And What Their Names Mean

Mountains have inspired humans for centuries. But while Everest and Kilimanjaro might ring a bell, do you know the true meanings behind their names?

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World’s Highest Mountains, and What Their Names Mean

View the high resolution version of this infographic by clicking here

From the Himalayas to the Andes, mountains have inspired and awed us for thousands of years.

Humans have ascribed all sorts of mythologies and metaphors to these jagged geological features. But while Everest or Kilimanjaro may ring a bell, do you know the meaning behind their names?

Today’s infographic from Alan’s Factory Outlet sorts the world’s highest mountains by continent, and explains the detailed origins of their names.

A Mountain By Any Other Name

Out of the 70 mountains profiled, only 41 are actually considered mountains. The rest are technically either a massif or a volcano (or a dome in one instance).

A massif (French for ‘massive’) is produced when a hard, unbendable rock is pushed towards the surface. They can also be formed when magma hardens once it’s above ground. For the rest of this post, we’ll refer to mountains and massifs interchangeably.

The highest mountains on each continent are considered to be part of the Seven Summits. Mountaineer Richard Bass was the first to scale all seven summits in 1985—and the 55-year old did so in only one year.

The Highest Mountain on Each Continent

NameLocationHeightMeaning of Name
Mount EverestNepal/ China, Asia29,029ft (8,848m)After Sir George Everest, former surveyor of India
Nepali name (Sagarmatha): “Forehead of the Sky”
Tibetan name (Chomolungma): “Goddess Mother of Mountain”
AconcaguaArgentina, S. America22,841ft (6,962m)Various native words: “Comes from the other side”, “Sentinel of stone”, “White sentinel”, “white ravine”
DenaliAlaska, U.S., N. America20,310ft (6,190m)Native Koyukon Athabascan: ‘high’ or ‘tall’
Mount KilimanjaroTanzania, Africa19,341ft (5,895m)Unclear, but some suggest it is a combination of Swahili 'Kilma' ("mountain") and KiChagga 'Njaro' ("whiteness")
Mount ElbrusRussia, Europe18,510ft (5,642m)Derived from Iranian mythology for  legendary mountain ‘Avestan Hara Berezaiti’: “high watchtower”
Vinson MassifAntarctica16,050ft (4,892m)After Carl G. Vinson, a congressman from Georgia who supported the Antarctic Exploration
Puncak JayaIndonesia, Asia/ Oceania16,024ft (4,884m)Sanskrit: "Victorious mountain"

Among these impressive peaks, two are technically volcanoes—Mount Kilimanjaro in Tanzania, and Mount Elbrus in Russia. Overall, it’s clear that a majority of their names have been influenced by the native languages in their surroundings.

The 10 Asian Giants

The highest mountains in the world are all in Asia, with nine of the ten highest found in the Himalayan range. Many of their names are derived from Sino-Tibetan languages, and some have mythological or religious influences.

NameLocationHeightMeaning of Name
Mount EverestNepal/ China29,029ft (8,848m)After Sir George Everest, former surveyor of India
Nepali name (Sagarmatha): “Forehead of the Sky”
Tibetan name (Chomolungma): “Goddess Mother of Mountain”
K2Pakistan28,251ft (8,611m)First surveyor labeled each mountain with a K and number. It has no local name due to its remoteness
KangchenjungaNepal/ India28,169ft (8,586m)Lhopo: “Five treasures of the high snow”
LhotseNepal/ China27,940ft (8,516m)Tibetan: “South peak”
MakaluNepal/ China27,838ft (8,485m)Sanskrit origin: “Big Black”, the name for the Hindu god Shiva
Cho OyuNepal26,864ft (8,188m)Tibetan: “Turquoise goddess”
Dhaulagiri
(*Massif)
Nepal26,795ft (8,167m)Sanskrit origin: ‘Dazzling, beautiful, white mountain’
ManasluNepal26,781ft (8,163m)Tibetan: ‘Mountain of the spirit’
Sanskrit origin (Manasa): ‘intellect’ or ‘soul’
Nanga ParbatPakistan26,660ft (8,126m)Sanskrit origin: “Naked mountain”
Annapurna
(*Massif)
Nepal26,545ft (8,091m)Sanskrit origin: “Everlasting food”
Name of the Hindu goddess of food and nourishment, believed to reside in the mountain

The second-highest mountain, K2 in Pakistan, lacks a more flowery name because it isn’t visible by any locals due to its remote location.

Majestic North America

The highest peaks in this region are scattered across three countries, with five volcanoes, four mountains, and one massif. Denali in Alaska, U.S. boasts unique names across nearly seven different Indigenous languages.

NameLocationHeightMeaning of Name
DenaliAlaska, U.S.20,310 ft (6,190 m)Native Koyukon Athabascan: ‘high’ or ‘tall’
Mount LoganCanada19,551 ft (5,959 m)After Sir William Edmond Logan
(Founder of Geological Survey of Canada
Pico de OrizabaMexico18,491 ft (5,636 m)Nahuatl: "Star mountain"
Mount Saint EliasAlaska, U.S.18,009 ft (5,489 m)After Cape Saint Elias
Tlingit: "Mountain behind icy bay"
PopocatépetlMexico17,749 ft (5,410 m)Nahuatl: "Smoking Mountain"
Mount ForakerAlaska, U.S.17,400 ft (5,304 m)After an Ohio Senator, Joseph B. Foraker
Dena'ina: "Denali's wife"
Mount LucaniaCanada17,257 ft (5,260 m)Named by the Duke of Abruzzi for the RMS Lucania
(A ship he sailed from Liverpool to New York)
IztaccíhuatlMexico17,159 ft (5,230 m)Nahuatl: "White woman"
King PeakCanada16,972 ft (5,173 m)After Canadian surveyor and politician William King
Mount BonaAlaska, U.S.16,550 ft (5,044 m)Named by the Duke of Abruzzi after his racing yacht

Mexico’s highest volcanoes also have a Romeo and Juliet-esque myth that links them. Popocatépetl (active volcano) and Iztaccíhuatl (dormant volcano) are presumed to be lovers, both of whom meet a tragic end. It’s said that the active volcano is avenging its beloved’s death to this day.

Far Beyond the Horizon

Traveling to the southernmost tip of the Earth, you might be surprised to learn that volcanoes even exist in Antarctica. Mount Sidley is the highest, dormant, snow-covered volcano found here.

The only dome on the entire highest mountains list is Dome Argus (13,428 ft or 4,093 m). This is the coldest place on the planet, dropping between -144°F to -133°F (-98°C to -90°C).

Dome Argus is also unique from another angle—it’s the only one on Antarctica with fabled origins, based off the Greek figure Argus, builder of the mythological hero Jason and the Argonauts’ ship. The remaining mountains here are named for scientists and supporters of various Antarctic expeditions.

Under Sea, and Outer Space

All these highest mountains are visible on land, but it’s possible that more secrets remain in the deep blue. The Hawaiian dormant volcano Mauna Kea doesn’t make this list due to its lower elevation above sea level, but it’s actually 33,500ft (10,200m) high from tip to peak—far taller than even Everest.

Everest is still really impressive, but it’s also only a fraction of the size of Olympus Mons, the highest mountain on Mars and in the solar system. New planets are also being discovered every year, presenting further possibilities.

Ultimately, this suggests we’ve not yet peaked at discovering the massive mountains which exist in—and out—of this world.

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