Amazon Signs Agreement with Maersk for Low-Carbon Shipping

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A.P. Moller – Maersk, an integrated container logistics company, and Amazon recently announced an agreement for shipping using low to very low greenhouse gas (GHG) emissions biofuels instead of fossil fuels.

The new agreement for 2023-2024 includes shipping 20,000 FFE containers using biofuels, which will result in an estimated reduction of 44,600 metric tons of CO2e emissions, according to the companies, equivalent to more than 20 million kilograms of coal burned.

Amazon has set a goal of achieving net zero carbon emissions by 2040 across its entire value chain. Scope 3 emissions, or those originating in the company’s value chain outside of its direct control, account for more than three-quarters of the company’s emissions footprint.

In the company’s sustainability report, Amazon revealed that it managed to reduce its Scope 3 emissions by 0.7% in 2022, even as its revenue increased 9%, with emissions cuts driven by areas including building construction, leased buildings and equipment, and third-party transportation.

“We are excited to have containers on Maersk’s first methanol-enabled feeder vessel and to continue using their biofuel,” said Adam Baker, VP of Global Transportation at Amazon.

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About the Amazon-Maersk Agreement

The agreement was made through Maersk’s ECO Delivery program, an offering that allows shippers to replace fossil fuels with green, providing direct emissions savings and third-party audited and verified CO2 savings.

According to the companies, Amazon and Maersk have been arranging container shipping using low GHG fuel options for four consecutive years, and this year the program has added the use of environmentally friendly methanol, in addition to biodiesel produced from waste streams.

For its part, Maersk announced a series of measures to expand its low-carbon fleet, with 25 vessels using methanol, starting with the 2021 order for the world’s first carbon-neutral methanol-fueled container ship.

Earlier this year, the company announced plans for the industry’s first conversion from a fossil fuel-powered containership to a dual-fuel methanol-powered vessel, with plans to convert future vessels.

Maersk has announced a series of carbon emissions reduction targets, including a goal of achieving net zero emissions by 2040 across all of its activities and in all areas, as well as a 50% reduction in emissions per container carried in its ocean fleet, and a 70% reduction in absolute emissions from fully controlled terminals by 2030.

“We share with Amazon the common goal of reducing our total GHG emissions to net zero by 2040. Decarbonizing shipping is a significant step that must be combined with many others to protect our future,” said Narin Phol, North America President, A.P. Moller – Maersk.

To read the official statement, click here