CNBC's Diana Olick is reporting that the shipping industry could lose $10 billion from climate change by 2050.
The shipping industry faces significant disruptions due to the effects of climate change, with potential losses of up to $10 billion annually by 2050. Droughts have lowered water levels in the Mississippi River and the Panama Canal, causing ships to run aground and reducing the number of vessels allowed to traverse, respectively.
These disruptions, along with others like rare cyclones, have affected supply chains and resulted in significant financial impacts. Despite the industry's vulnerability to climate change, efforts to reduce carbon emissions have been slow. Although Maersk, the world's second-largest container ship company, has introduced a containership powered by green methanol, the transition to greener fuels is challenging due to the high costs and scarcity of such fuels. The industry has recently agreed to a net-zero goal by 2050, but experts believe more aggressive measures are needed to meet the Paris Agreement targets.
As a response, companies are focusing on resilience, ship design modifications, and leveraging digital tools to adapt to the changing climate.
(This article was written with assitance from ChatGPT)