Economic and geopolitical events continue to drive volatility and instability in global markets. While some markets have lagged in recovery, others have surged beyond expectations.
The phrase “new normal” is overused, but quite appropriate when it comes to industry’s focus on environmental affairs. The “greening” of transportation and logistics operations is essential to the future of our industry.
On Jan. 1, 2015, the maritime industry will face much more stringent environmental regulation. With further regulatory changes on the horizon, environmental compliance will soon become an issue with commercial consequence.
Industry leaders are recognizing that environmental sustainability is linked to long-term profitability. Compliance with increasing regulation is driving cost and behavioral change. Companies will need to adapt. This is a collective issue, and all participants in the supply chain — shippers and operators — will need to shoulder the burden of this change.
As costs associated with regulation increase, enforcement becomes the driver of compliance. Yet enforcement by most agencies remains weak, especially in Europe where a low percentage of emissions inspections occur. This, coupled with the fact that offenders receive non-punitive penalties that equate to a fraction of the cost of compliance, invites non-compliance.
To address this paradox, WWL launched an industry initiative to support greater enforcement of existing maritime sulfur regulations. The “Trident Alliance” (www.tridentalliance.org) is a cross-industry collaboration with more than 30 members working to advance regulatory compliance from a position of enlightened self-interest.
In the future, technological solutions will ease compliance, but scalable applications are still far off. Thus operators must make environmental solutions compliance a top priority now, irrespective of the challenges posed by a difficult market environment.
Raymond Fitzgerald, President of the Americas, Europe, Middle East and Africa, Wallenius Wilhelmsen Logistics