New Maritime Decarbonization Regulations: Background & Market Effects (Part 1)

New United Nations’ International Maritime Organization (IMO) regulations require existing maritime vessels to meet a minimum energy efficiency design standard, while also requiring that larger vessels be graded on their carbon intensity (beginning in 2024). In response, ocean carriers are modifying their fleets, with compliance costs expected to increase total maritime logistics costs and alter freight rates and have a small but negative impact on total global trade and a minimal impact on GDP. This EBOT is the first in a series that examines the market impacts of a new wave of global maritime decarbonization initiatives.