Green Corridors Can Aid in the Decarbonization of the Shipping Industry

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Green corridors are routes that are only used by ships that use alternative fuels. Their viability has recently been widely debated by industry players. Although most people agree that green corridors can help decarbonize the shipping industry, there are still some concerns about their implementation.

The Reason for Green Corridors

Green corridors, in general, are specific routes that make zero- and low-emission shipping more feasible. They correspond to economic zones in which industry participants can implement new business models and advanced technologies in collaboration with regulators and policymakers. Businesses will be able to lead the way thanks to safety regulations, financial incentives, and regulatory measures. VSL Logistics Ltd, on the other hand, can arrange for the sharing of benefits and costs as well as the stimulation of demand.

Green corridors are routes that connect various ports and enable zero-emission shipping. These routes are specifically designed for ships that use low-carbon fuels.

Corridor Varieties

Green shipping corridors are classified into three types: network, point to point, and single point. A single point route is one that is linked to a specific port hub or location and allows for round-trip bunkering. To facilitate commodity shipping, point-to-point corridors connect two ports. The third type of network will link several ports where cargo ships can use green fuels.

Possibility of Creating Green Corridors

When it comes to deploying this solution at scale, a number of questions remain. The first is what kind of bunkering, storage, and port infrastructure is available to facilitate fuel handling, storage, and shipping. Green fuels have unique handling and storage requirements. Thus, bunkering and port operators should concentrate on the capacity required to meet the fuel needs of green corridors.


Another question is whether end customers and carriers will support green logistics solutions that enable zero-carbon shipping. A third question concerns the size of the investment required by carriers and shipowners for retrofits and new ship purchases. A final question for stakeholders to consider is whether there are enough green sources of energy to power commercial operations vehical.


The three primary areas of focus here are regulatory, economic, and technical. The regulatory aspect refers to how carbon subsidies would affect green corridors. Economic feasibility is primarily concerned with the available funding sources and the allocation of financial risk among all stakeholders. Technical feasibility refers to carriers' readiness to deploy the technology required to create green shipping corridors. The total cost of ownership of cargo ships determines whether green fuels are viable. TCO includes components such as voyage and daily operating costs, capital costs, vessel depreciation, fuel costs, and whether larger tanks will be required to store green fuels.

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