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The contribution of shipping in about 90% of world trade by volume is undoubtedly accompanied with GHG emissions, estimated around 2.9% of the total global anthropogenic CO2. Projections show an increase from 90% to as much as 130% from 2008 by 2050 from the perspective of different economic and energy scenarios. The Paris Agreement of pursuing limitation to 1.5°C temperature increase is seriously undermined, and the world is heading for a temperature rise more than 3°C within this century. As per IEA Report 2022 and Net Zero Emission Scenario, the most ambitious one, a major transformation is ongoing with the CO2 emissions falling from 840 Mt CO2 today to 110 Mt CO2 by 2050. IMO feels the pressure from lawmakers, regional or national, to define decarbonization as a top priority, all that despite the paradox that shipping is by far the least carbon-intensive way of transport. At the regulatory level, the shipping industry is addressing climate issues through the International Convention for the Prevention of Pollution from Ships (MARPOL) and IMO continues to support and practically contribute the UN Sustainable Development Goal 13, aiming to combat the climate change.
There are already three years past the MEPC 75, introducing short-term measures of EEXI and CII which were adopted in following MEPC 76. The industry is now diving into those new metrics aiming for a greener fleet. The next MEPCs 77 and 78 majorly prepared the land for the long-anticipated revision of the IMO GHG strategy, initially adopted in 2018. Among the others in scope were cleaner fuels, zero carbon technologies, the range of zero carbon bunker fuel options, the establishment of an automated IMO Maritime Research Fund and finalization of the structure and the guidelines of the regulations for the launch of EEXI, CII metrics and SEEMP synthesis.
It was the second week of December 2022 when the shipping world awaited acceptance of relevant proposals for the IMO’s updated GHG Strategy, however the outcome is still upon further discussion for the upcoming working groups with the will and hope to be adopted during the next MEPC 80. Despite the fact that no on-hand agreement was made, crucial aspects of humanity’s effort to act before it is too late were raised, such as establishment of Green Corridors by 2030, onboard Carbon Capture implementation steps and fuel establishment of lifecycle GHG carbon factors for all fuel types.
In conjunction with IMO activity in tackling temperature rise, European Union has set sail to be one of the most influential and ambitious regulatory authorities around the globe. Indeed, the maritime sector was the only one without specific GHG reduction commitments in the EU. Current legislation for the Alternatives Fuels Infrastructure, Monitoring, Reporting and Verification and Renewable Energy Directive are upon pursue of ensuring sustainability.
The ‘Fit For 55’ package, as part of the European Green Deal, is certainly a milestone, which, if translated from paper to actions, might surpass the 55% reduction in GHG emission by 2030 and may constitute the EU carbon-neutral by 2050. Five are the shipping-related items of subject package: FuelEU Maritime, Energy Taxation Directive, Alternative Fuels Infrastructure Regulation, Renewable Energy Directive II and EU Emissions Trading System. Among them, a groundbreaking step was the inclusion of shipping in EU ETS from 2024 through a phase-in period by 2026, with methane and NOx to be also included in this cap & trade scheme by 2026 and further on. Another EU action related to the ESG framework and also declared as one of the most pivotal ones towards carbon economy, is the introduction of EU Taxonomy with the aim to classify investment in an environmental sustainability scale, by codifying the Green Bond Principles. Shipping-specific criteria are anticipated shortly.
More recently, other countries have set their concrete goals with China declaring to be carbon-neutral by 2060 and United States to cut their GHG footprint by 50% before 2030, compared to 2005. Japan and Canada have set their common trip for 40-45% reduction by 2030.
With analysis manifesting that 1.5°C increase might come before 2040, inaction is not an alternative and, through this rapid transition in terms of energy and technology, involved parties of maritime business should play their part in securing our planet. Considering also that energy shocks caused by financial or military invasions around the world and high demands following a pandemic period have sent emissions to unseen levels of almost 37Gt in 2021, the term marginal for our attempt is too optimistic in such volatile times. It is embraced by leaders and experts that decarbonization is moving fast, but with these ominous projections of monotonically increasing temperature curve, how “fast” can be determined?
Danaos LCTP addresses IMO targets and focuses on the Paris Agreement targets, following the SDS and pursuing efforts to meet the 1.5°C goal.
Understanding that climate action is a global peremptory, we are highly committed to contribute to the transition towards decarbonization, stepping away from fossil fuels. At Danaos we acknowledge that all related stakeholders need to join forces to optimize ship operations at multiple levels. Given the complexity of the technological and energy source challenges involved, long-term solutions can only be deployed through partnerships with various industry stakeholders. While the technologies needed to build zero emission vessels and produce zero emission fuels and propulsion systems exist, they need to be further developed to ensure that they are safe, clean, and reliable for onboard application. Further refinement of both the vessel and fuel production technologies is required, in conjunction with clarity around safety, sustainability, regulation, training, fuel and vessel life-cycle analyses, and fuel availability and infrastructure. At the same time, it should be demonstrated that zero emission shipping is worthy at scale, while driving down costs and scaling up demand is needed to enable broader deployment. Shipping stakeholders should align to support and enable the decarbonization of international shipping. Governments and regulators should establish policy frameworks that make zero emission shipping commercially viable, investable, and equitable.
Danaos as a signatory to the Call to Action we are committed to several climate targets, and we intend to take concrete action towards decarbonizing the shipping industry. A sustainability committee is set up at Danaos that helps the company to design the necessary environmental plans. Not only it is a core part of good Governance, but its role is also to integrate both business and Sustainability priorities so that the company is able to thrive and be on the Environmental side as well.
Danaos’ strategy plans to achieve the environmental goals are recorded in the company’s Low Carbon Transition plan (Danaos LCTP), including also our GHG target. Danaos LCTP addresses IMO targets and focuses on the Paris Agreement targets, following the SDS and pursuing efforts to meet the 1.5°C goal. Since the IEA considers the IMO’s GHG emission reduction target to be equivalent to the SDS scenario, this is to justify that our environmental vision extends beyond of the targets of IMO, of the Sustainable Development Scenario (SDS) as well as of the NDC targets (Nationally Determined Contribution) under the UNFCCC (United Nations Framework Convention on Climate Change) and formulated by IMO (International Maritime Organization)5.
5The Sustainable Development Scenario (SDS) is an additional scenario referenced in IEA-World Energy Outlook-2021. As a “well below 2 °C” pathway, the SDS represents a gateway to the outcomes targeted by the Paris Agreement. Like the Net Zero Emissions (NZE), the SDS is based on a surge in clean energy policies and investment that puts the energy system on track for key SDGs.
Transparency, simplification, standardization, and harmonization, all in view of a sustainable future, should be implemented in modern trade business. Danaos, through several projects in the last years, has examined ammonia, methanol, hydrogen, and LNG-LPG in order to identify the most promising alternative fuels for propulsion. Methane is the most mature alternative marine fuel from production, infrastructure, and technological readiness perspective, however biomethane availability is questionable while fugitive methane emissions and methane slip are challenges to be dealt with and regulated. Biofuels consist of a mid-term solution since significant cross-sector competition for sustainable biomass may limit the scaling potential for biofuels in the shipping industry. Ammonia has complexity in matters of transport, storage and operation and same is the least technologically mature alternative fuel with the laughing gas production in the internal combustion engines – a GHG with a global warming potential nearly 300 times greater than CO2 over 100 years – necessitating the development and employment of emission reduction technologies in parallel with ammonia engines.
Given all the above our bet is placed on methanol‘s green version although currently extremely limited and upcoming steps and plans are accordingly shaped. Methanol is a liquid fuel at ambient temperatures, it does not involve significant storage and handling considerations while retrofitting is expected to be possible from 2024 onwards.
Green Methanol seems that, will be produced easier by feedstock or electrolysis and captured CO2 than LNG; LNG requires more energy to be liquified and cooled down for proper storage. Currently alternative fuels are much more expensive compared to fossil fuels. However, the gap is expected to close for e-fuels as they use renewable energy which will not be limited to the same way as biomass.
Regulations and frameworks considering well-to-wake emissions and GHG pricing, as well as green corridors and book and claim systems development could provide a push towards the switch to alternative fuels. Among the new technologies, we have examined fuel cells, alternative ship propulsion technologies, such as wind-assisted propulsion and carbon capture & storage, which may all have reasonable potential in shipping applications.
The Existing Energy Efficiency Indicator (EEXI) and the CII (Carbon Intensity Indicator) introduced with MECP 76, are technical and operational measures, respectively, selected to achieve the IMO decarbonization target. In 2022 Danaos proceeded with the calculation of the EEXI for all vessels. Danaos Shipping AER value for 2022 was 8.46 gr/DWT miles.
An extensive study has been performed for Danaos fleet to identify the most efficient way to comply with the EEXI requirements, with the Shapoli (Shaft Power Limitation) emerging as the measure to reach the EEXI limits. An average EEXI load in the range of 50-60% was identified for Danaos fleet corresponding to maximum speeds in the range of 20-22 knots under charter party conditions.
Projections from UNCTAD (Review of Maritime Transport 2022, https://unctad.org/webflyer/review-maritime-transport-2022) estimate maritime trade growth to 1.4% and for period 2023–2027 to expand at an annual average of 2.2%, a slower rate than the previous three-decade average of 3.3%. For a long period, containerized trade was the fastest growing segment with 1.2% growth in 2022 and an estimated marginal pick up to 1.9% in 2023. Following unseen highs in spot rates in December 2021, one year later the pandemic-driven conditions are less faithful and spot freight rates more moderate, still slightly above the pre-pandemic levels. The sector is also experiencing a transformation through vertical integration, with the top ten carriers holding almost 91% of total market shares. Containerships hold the second place in number of newly delivered vessels, just below liquefied gas carriers and also place number two in average age of the fleet, with 11,1 years. Shipbuilding remains well below 2014-2017 levels. Fleet growth evaluation showed for 2022 a 2.95% increase in comparison to 2021.
While according to ITF Transport Outlook 2021 the maritime sector accounts for more than 70% of freight activity and around one-fifth of freight emissions, demand for maritime freight has approximately doubled over the last two decades, growing by 3.7% annually on average (ITF Transport Outlook 2021, https://www.itf-oecd.org/itf-transport-outlook-2021).
Current transport decarbonization policies are insufficient to pivot passenger and freight transport onto a sustainable path. CO2 emissions from transport are expected to increase by 16% by 2050 (ITF Transport Outlook 2021, https://www.itf-oecd.org/itf-transport-outlook-2021) even if today’s commitments to decarbonize transport are fully implemented. It is expected that emissions will reach a plateau and then start to decline. During the past decade there was a steady reduction in carbon intensity, with 21% estimated for the containers, or in other words equal to 3.3 grams of CO2 per ton-mile, explained by UNCTAD by the increased size of the vessels, since stats are proving that the younger and larger the vessel, the lower the carbon intensity.
The expected emissions reductions from these existing policies are cancelled by the expected increase on the transport demand and hold-back due to latest war invasion in Ukraine. By contrast, even more ambitious transport decarbonization policies could reduce transport CO2 emissions by almost 70% in 2050 compared to 2015, bringing closer the goal of the Paris Agreement to limit global warming to 1.5˚C. It would require more and better-targeted actions to reduce unnecessary travel, shift transport activity to more sustainable modes, improve energy efficiency, and rapidly scale up the use of electric power and low-carbon fuels. Investing in carriers’ sector is reluctant due to the uncertainty caused by upcoming regulations, fuels and carbon prices and technological development (Review of Maritime Transport 2022). Establishing a predictable global regulatory framework for sustainable investments for decarbonized shipping is certainly another step forward.
To reach the above target a large portion of the world fleet would need to be using net zero-carbon fuels by 2050. This still needs to be tested, proven, and become commercially available. At Danaos, we believe that there is no single solution to deal with the 2050 decarbonization challenge, we invest, research, and inform policy makers. While the implementation of energy efficiency improvement methods to optimize vessels’ performance and environmental footprint have been extensively studied and applied, these are not enough to meet IMO decarbonization targets. UNCTAD estimates that 31% of containerships fleet are D or E rated in terms of CII. Danaos’ existing fleet’s improvement has an “optimization ceiling” as most installed engines onboard cannot be upgraded to dual fuel mode and burn zero carbon fuels.
It is therefore very important to highlight that decarbonization will be carried out in two steps:
Step 1: Optimization of the current fleet, to improve carbon intensity.
Step 2: Renewal of the fleet with zero carbon vessels, starting in the next decade, developing in parallel carbon emission offsets.
The transition to low carbon fuels along with speed reduction and route optimization seem to be the only way for decarbonizing the shipping sector.
Upon the application of EEXI limit in 2023 and inclusion of shipping in EU ETS as per EU Fit for 55 proposals, the speeds are expected to decrease. In Danaos we target 10% higher than IMO in connection to carbon intensity improvement vs 2008 as a reference year. Our target is 50% improvement in 2030 which is translated in 47.5% reduction in carbon intensity by 2025. In addition to the above we are committed to apply Alternative Marine Power (AMP) arrangement to 25% of our fleet by 2025 in an effort to support decarbonization at ports, especially Ten-T Core Network ports, were regulations about on-shore power will come into force as part of the Alternative Fuels Infrastructure Directive (AFID).
On route to decarbonization, at Danaos we have been exploring biodiesel as alternative fuel to achieve GHG reduction due to being one of the most “technologically ready” and “near-term available” options to lower the overall lifecycle emissions. The IMO MEPC 78 outcome simplified the significant barriers and restrictions previously in place for the use of Biofuels contents up to 30% (B30). Within 2022 in Danaos, as part of participating in our charterers’ campaign, 5 of our vessels were successfully supplied with biofuel blends (B30). The use of biofuels will be one option to the pathway of decarbonization, while the procedure for evaluating the carbon footprint reduction effect of biofuel in the lifecycle is currently being developed by the IMO.
Going one step further to fight climate change, Danaos within 2022 introduced carbon offsetting by neutralizing the Headquarters’ carbon footprint including employees commuting emissions, with the aim to balance unavoidable emissions. The carbon offsetting that was verified by a third party, is a proactive action outside our value chains to contribute towards decarbonization and is beyond our near-term and long-term targets set. Moreover, in Danaos we participated in the afforestation program including the planting of 1,000 trees, which corresponds to the absorption of 22,000 kg CO2.
We support the Poseidon Principles that help banks align their shipping loans with the climate goals set by the IMO. In 2022, 20% of Danaos fleet already complied.
In Danaos we believe that the decarbonization pathway should be drawn up as a result of strong partnership of all key stakeholders. We are participating in various consortiums and are in close contact with targeted bodies aiming to advance mutual interests related to decarbonization and sustainability targets.
We have been in contact with various initiatives since we are closely monitoring all developments around the decarbonization, and alternative fuels and we are constantly monitoring our vessels’ performance and compliance through Waves Data Platform.
In 2020 Danaos became a member of the Global Maritime Forum (GMF), adhering to the Getting to Zero Coalition statement. We are also members of the Ammonia Energy Association (AEA) since July 2020, participating in meetings and keeping up to date with all latest developments for the use of Ammonia in the maritime industry. We support the Poseidon Principles that help banks align their shipping loans with the climate goals set by the IMO. In 2022, 20% of Danaos fleet already complied.
The signatory banks measure the carbon intensity of their shipping loans, relying on the global Data Collections System for fuel oil Consumption by ships (“IMO DCS”) and then publicly report how their shipping loans align with the adopted climate goals. As a result, banks will focus on financing “green” assets, such as ships with technologies that allow for low GHG emissions. Ship owners on the other hand will focus on such technologies and in turn will be able to justify a longer return on investment.
Climate bonds initiatives are also explored in order to verify our fleet’s compliance. We have also been in contact with Science Based Targets (SBTi) and follow up all latest developments in relation to the finalization of the science-based tool targeted for shipping while we became members of the Methanol Institute (MI) in order to keep up with all developments in relation to methanol use as a marine fuel.
The large-scale transition towards net zero by 2050 will, at some point require a full switch to zero-carbon fuels. Medium-term measures may, for some, include blend-in of carbon-neutral fuels, biofuels, or the use of bridging fuels such as LNG or methanol with a view to their bio versions subject to successful scale up in future while most short-term measures are largely about increased fuel and energy efficiency. In this whole context, the ordered NBs within 2022 are methanol ready, with a belief that bio-methanol will be developed at scale and will be used as a carbon neutral fuel for shipping.
2022 was really a fully active and energetic period which DrC team was involved in multiple Research, academic, network activities and awarded with new distinctions. Three (3) projects (Aircoat, Sleekship, and Seahealth) were successfully completed, while officially started new ones (CoPropel, DT4GS, EO4EU, RESHIP, SafeNav, iCrew, HP4SHIP, Optiship). Projects are mainly focused on the mitigation of the CO2 Shipping emissions (decarbonization), autonomous robotic inspection, energy efficiency, weather routing, navigation/safety and operational optimization.
During 2022, five (5) EU Projects started aiming at the marine propeller propulsion efficiency (COPROPEL), advanced hydrogen power system (RESHIP) through ESDs (Energy Saving Devices) onboard for newbuilds and retrofits (RESHIP), the use of DT (Digital Twins) innovations and application to support smart green shipping in the upgrade of existing ships (DT4GS), dynamic data mapping and labelling based on AI adding FAIRness to the system and data (EO4EU), as well as innovative digital collision prevention for the elimination of the navigational accidents (SAFENAV).
More specifically, CoPropel puts forth a holistic approach towards the realization of marine propellers made of advanced composite materials. Compared to their traditional counterparts, marine composite propellers offer efficiency gains in propulsion efficiency, noise reduction and weight savings. The CoPropel project will see an interdisciplinary team of experts drawn both from research and industry, from theoretical considerations and numerical modelling to precision manufacturing – assembly and experimental verification testing. The proposed activities will mature our Technology Readiness. Level to 5-6 and drastically de-risk the integration of the investigated solutions on future products, effectively resulting in reducing the direct operating costs for the operators while minimizing the environmental impact.
On the other hand, the Reship project, aims to redefine the onboard energy saving solutions for newbuilds and retrofits in marine and inland waterway with disruptive technologies in two distinct areas, Energy Saving Devices (ESDs) and onboard hydrogen utilization.
DT4GS is aimed at delivering an “Open Digital Twin Framework” for both shipping companies and the broader waterborne industry actors to tap into new opportunities made available through the use of Digital Twins (DTs). The project will enable shipping stakeholders to embrace the full spectrum of DT innovations to support smart green shipping in the upgrade of existing ships and new vessels. DT4GS will cover the full ship lifecycle by embracing federation of DT applications as well as utilising DTLF policies and related shared dataspace developments for the sector. DT4GS applications will focus on shipping companies but will also provide decarbonisation decision-support system for shipyards, equipment manufacturers, port authorities and operators, river commissions, classification societies, energy companies and transport/corridor infrastructure companies.
The project, EO4EU, aims to provide innovative tools, methodologies and approaches that would assist a wide spectrum of users, from domain experts and professionals to simple citizens to benefit from EO data. EO4EU strives to deliver dynamic data mapping and labelling based on AI adding FAIRness to the system and data. EO4EU introduces an ecosystem for holistic management of EO data, bridging the gap among domain experts and end users, bringing in the foreground technological advances to address the market straightness towards a wider usage of EO data.
Finally, Safenav project will develop and test a highly innovative digital collision prevention solution that will significantly reduce the probability of collisions, impact damage, grounding, and contribute to safer navigation by a) faster reliable real-time detection of a variety of obstacles (other vessels, fixed installations, submerged/semi-submerged objects, and marine mammals) in the marine environment, using data from state-of-the-art sensors and other relevant sources, and b) effective visual representation of the multi-source data to the navigators for quick COLREG-based decision-making support.
Along with the aforementioned academic, the carbon capture and storage technology, is another promising area that Danaos Shipping R&D team is investigating as a possible solution to decarbonization. Within 2022, Danaos has contacted several carbon capture and storage system suppliers and studied the proposed solutions. At the same time, Danaos is also in continuous contact with Flag Administrations and classification societies in order to stay up to date with all relevant developments on this project.
Air lubrication systems have also been examined as a potential solution for increasing energy efficiency. Another innovative unit has also been put under the microscope that can at the same time treat both SOX and CO2, though tests results are expected to be available within 2023.
Under the umbrella of our low friction paint campaign, Danaos is also testing a new biocide free ultra-low friction paint that has been applied in one of our vessels that was drydocked within 2022 and her performance is being compared with her sisters in order to check the real benefit and assess whether same paint will be implemented also at other vessels of the fleet.
A feasibility study has also been conducted for a patented rudder arrangement that would improve fuel efficiency, maneuverability & course keeping and noise and vibration reduction. Danaos has checked whether installation can be tested in one of the NBs that will be delivered within 2024 and whether the system can be tested in one of our existing vessels. The results for the study of the NB case indicated a saving in the range of 5%.
We have developed a monitoring tool for the fleet’s emissions to evaluate and monitor energy. Danaos calculates the emissions of the entire fleet, to ensure transparency and emissions management. These metrics are indicators of environmental performance and are shared with clients, upon request, so that they can in turn evaluate their environmental footprint (value chain footprint – scope 3 GHG protocol).
In 2022, fleet emissions decreased by 1.6% compared to 2021. Our fleet’s average speed, which reached 16.2 knots in 2021, was reduced by 0.5 knots in 2022 while maintaining nearly the same operating draft. Moreover, our vessels had only 1% more steaming time compared to 2021. For the above reasons the fleet’s EEOI has decreased to 15.68 gr/tn*nm from 16.01 gr/tn*miles in 2021. Due to the decrease in consumption, consequently all NOX and SOX emissions have been reduced respectively.
On vessel assessments, increasing and decreasing trends have been observed. A detailed performance analysis and comparison is completed for each of the company’s vessels within the first quarter of every year and results are updated in the SEEMP manual.
Within 2022, Danaos placed orders for 2 eco vessels of 7,100 TEU containerships that will be built at Dalian Shipbuilding in China and are expected to be delivered in the 2nd and 3rd quarters of 2024, as well as for 4 eco vessels of 8,000 TEU containerships that will be built at Daehan Shipbuilding in South Korea and are expected to be delivered to Danaos in the first half of 2024. The vessels will be methanol-fuel ready in order to retrofit into green methanol use when the fuel is available and will be built in accordance with the latest requirements in relation to Tier III emission standards and Energy Efficiency Design Index (EEDI) Phase III while they shall also be equipped with an on-line data acquisition system for incorporating in Danaos WAVES data analytics platform.
The formula used for the calculation of our emission KPIs are in line with the ones used by the KPI platform: https://www.shipping-kpi.org/. We adopted the above approach, to use the same reference tool as that of our charterers, so as to be fully aligned. After successful implementation of the IMO Sulphur cap 0.5 back in 2020 along with 11 open-loop scrubbers’ installation, Danaos has been also closely monitoring Sulphur and nitrogen oxides in order to be able to measure our impact into the atmosphere. RnD is constantly studying new technologies in an effort to identify the best fit for the fleet and the environment.
For the scrubber fitted vessels and in order to accurately calculate the SOX emissions, we have implemented in our online platform the exact Sulphur calculation based on the emission ratio as recorded from the emissions monitoring sensor. We have also implemented in our systems the monitoring of both air emissions and washwater discharged at sea, in order to timely identify and respectively rectify any potential malfunction and minimize violations.
Moreover, Danaos has implemented in its core strategy the installation of AMP in order to contribute to the reduction of emissions of ships while at berth. Our plan is to have 25% of the fleet equipped with AMP by 2025.
The development of a sophisticated environmental routine that will incorporate an interactive Carbon Intensity Index calculation, vessel rating and projection of emitted CO2, setting the foundation for effectively responding to a potential emission trading or levy scheme will be launched within the next year.
Scrubber Monitoring feature that is custom designed in our Waves data analytics platform for our vessels fitted with SOX Scrubbers, in order to provide the user with good insight on the scrubber operational data almost in real time, while at the same time one is able to easily confirm compliance with the regulatory requirements for all parameters. Moreover, the Scrubber Reference log is a feature incorporated in Waves in 2020, in order to demonstrate compliance in case a failure occurs in a monitoring sensor by indicating compliant operation in the same conditions and ensure that the regulations are met until the malfunction is rectified.
We calculate our direct emissions (Scope 1) and indirect emissions from purchased electricity (Scope 2) and allocate same per client, while we are working on collecting value chain GHG (Scope 3) emissions related to our business activity which is a more difficult exercise. The procedure for Scope 3 emissions has been established and includes suppliers/partners reporting of their Scope 1 and 2 emissions allocated to Danaos. A detailed study and breakdown of all Scope 3 emissions is being carried out for the below categories:
In the context of our commitment to high ESG standards, incorporating sustainability into our operational processes, business activities and strategy in all lifecycle steps, within 2022 we released a vendors’ ESG checklist that will allow our company to evaluate our partners and gain a better understanding of our supply chain’s operation. Our aim is to assess and measure sustainability activity and ensure the sustainable and efficient performance of our supply chain in compliance with our requirements and standards, which is necessary for creating positive value. The checklist addresses important environmental and social considerations through questions related to human rights and equal opportunities, working conditions, safety and proper energy and emissions monitoring, and also enables us to collect and report the Scope 3 emissions data that emerge from our own supply chain.
Danaos is on track for a carbon neutral future and remains a pioneer in taking actions for decarbonization and digitization.
Across the shipping industry, companies strive to find ways to leverage new technologies and maximize the efficiency of their investments. The new business environment demands the shift from the traditional business model of selling capacity, to one that offers value to customers, through transparency and data sharing. With the increasing need of global supply chains for seamless flow of goods and services, Digital Business is a key enabler for shipping companies today. Concepts and new technologies that are massively used nowadays, such as the Internet of Things (IoT), Big-Data, Artificial Intelligence (AI), Application Programmable Interfaces (APIs) and sensors, together with vast amount of data, are utilized to optimize operations, improve efficiency and reduce costs. In order all of these to be implemented, changes in the operating models are required as soon as possible in order the whole industry to adapt to the new demanding reality.