The Green future - Mining and Clean Energy Perspectives
Whether you are enthusiastic or not, no one can deny that the future tends to be greener! Governments and companies are racing against time to meet the Paris agreement targets for carbon emissions reductions so we can guarantee that the world will limit the average temperature increase to 1.5°C on earth and that the net carbon emissions will be zero until 2050. During this topic of the month, we will bring you an interesting perspective on the relationship between green energy transition, the price increase in the energy-transition-minerals and the role of the carbon-intensive mining industry in this transformation.
As the greener economy becomes a more relevant theme, it is important to question ourselves. Do we already have what it takes for a greener transition? From where are all the minerals coming that will support this revolution? Do we have enough capacity to supply all the demand required to produce wind turbines, batteries for electric and hybrid cars and solar panels? And after that, what will be the impact of this production?
According to the International Energy Association (IEA), energy technologies based on wind and solar are much more intensive on the usage of minerals like copper and zinc. Also, when we compare it to the average car, the number of minerals used in an electric vehicle can be six times higher than a conventional one. The variety of minerals used is also much wider.
IEA says that by 2040 the amount of Zinc usage just related to energy transition will be the same demanded from zinc by all industries in 2020. The total mineral demand coming from green initiatives might increase 2 to 4 times by 2040. These examples show how intensive the usage will be and how much more minerals will need to be extracted so when can move forward to a greener world.
Some of Latin America countries are well positioned in this new era. According to US Geological Survey, Chile has not only the biggest reserves of copper in the world but also Lithium, a key mineral used in batteries, Argentina is in 3rd. According to Benchmark Mineral Intelligence the price of Lithium only in 2022 increase around 119% year to year. This scenario of price pressure might not ease in the near future as a combination of rising demand plus a lower capability to increase supply, as opening new mines and make it operational might take several years.
According to a McKinsey article called “Creating the zero-carbon mine,” mining emissions from the supply chain and transportation are responsible for between 15% to 30% of the sector`s total emissions. The increase on demand for minerals related to clean energy transition is putting additional pressure on the mining sector to reduce the net emissions CO₂. Companies that do not embrace ESG (Environment, social, and governance) initiatives might also have more difficulty finding credit or will need to pay a higher cost for that.
If you want to understand how AP Moller Maersk can support your business to redefine its logistic experience and be part of a more sustainable future, you can find more information about our Green Solutions here.
Ocean Updates
| TRADE LANE | COMMENTS | DEMAND TREND |
|---|---|---|
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TRADE LANE
West Coast to Intra-Americas
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COMMENTS
Peru Feeder will resume the Pisco call in wk28 due the upcoming onion season. We are reviewing Atacama proforma to prepare for the winter season in Chile.
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DEMAND TREND
Strong
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TRADE LANE
North America to Intra-Americas
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COMMENTS
Heavy congestion out of the gulf ports (Houston and New Orleans). Bonita Express successfully accepting more cargo and rotation from Mobile to Central America and back is going flawlessly
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DEMAND TREND
Strong
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TRADE LANE
Intra-Americas to Caribbean (Pacific)
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COMMENTS
Guayaquil Feeder and Caldera Feeder with low utilization. Equipment and space available. WCCA with space available from Lazaro to Acajutla and Balboa.
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DEMAND TREND
Low
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TRADE LANE
West Coast to North America
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COMMENTS
Market demand remains strong from West Coast to North America. Chile and Peru are the main bottlenecks. WCCA4/WCCA3 improving their schedule reliability into Oakland and Long Beach, we invite customers to book on these services.
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DEMAND TREND
Strong
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TRADE LANE
North America to East Coast of South America
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COMMENTS
Market demand continues with strong momentum. In the gulf area we are still experiencing challenges with port congestions, leading to vessel delays, therefore we will continue to alternate the calls between Cristobal and Cartagena ports. When it comes to USEC ports, we are noticing an improvement in the port operations, the current contingency (alternating calls between Charleston and Port Everglades) is expected to end in the end of August
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DEMAND TREND
Strong
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TRADE LANE
Intra-America to East Coast of South America
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COMMENTS
Market demand continues with strong momentum. In the gulf area we are still experiencing challenges with port congestions, leading to vessel delays, therefore we will continue to alternate the calls between Cristobal and Cartagena ports
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DEMAND TREND
Strong
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TRADE LANE
Intra-America to Caribbean
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COMMENTS
High congestions to Venezuela, Dominican Republic, Suriname, and Colombia, Barranquilla. Strong demand is stressing the services to full capacity and additional cargo will be limited
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DEMAND TREND
Strong
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TRADE LANE
Central America to North America
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COMMENTS
In preparation for the 2022-2023 reefer season. We are reviewing the volume and capacity deployment to begin negotiations with reefer accounts
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DEMAND TREND
Low
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Main port status - North America
| PORT | COMMENTS |
|---|---|
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PORT
Philadelphia
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COMMENTS
Berth 4 is out of service. Berth 5, south of construction, is only 600’ (500’ usable by cranes. Any time one of the 900’ length overall or greater vessels in the north berth, we can only fit the one vessel.
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PORT
Baltimore
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COMMENTS
From 25th May starting with hurricane tied down (special support/hook to secure new cranes) on berth 4 and part of 3 , loosing 800 ft of berth space for 6 weeks. Terminal also loosing berth 1 because we are decommissioning 3 old cranes. Only 2 berth available until Aug. 1st.
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PORT
North Charleston
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COMMENTS
0-1 day of waiting time. Berthing scheme remains same: US Flag vessels + on time vessels from our U7J-AGAS Service will be given priority. Empty extra loaders will be given priority 0-72 hrs. Vessels that have matching import and export figures may be given priority.
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PORT
Houston
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COMMENTS
1 to 4 days waiting time expected. Labor restrictions in Houston are limiting total number of gangs per shift to 16 during the week with 12 still on the weekend. This is allocated based on arrival time to Pilot Station and move count on the vessel. Barbour Cut Terminal cranes down: 310 back up 7/18, 3 back up 9/15. Bap Port Terminal cranes down: 211 back up 7/19.
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PORT
Long Beach-Los Angeles
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COMMENTS
Long Beach-ITS-Maersk Northwood berthing on arrival. Los Angeles: Waiting time to catch gangs average 4 days for most of last week with zero cuts reported during the weekend. Vessels updates: vessel's loitering/drifting/slow steaming heading to San Pedro Bay: 68 (Port of Los Angeles: 37; Port of Long Beach: 31).
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PORT
Oakland
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COMMENTS
Vessels are being idle between 1-3 shifts during cargo operations due to labor shortage which is extending their port stay between 1-2 days.
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Main port status - Latin America
| PORT | COMMENTS |
|---|---|
|
PORT
Ecuador
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COMMENTS
Trucker Strike in early July affected terminals and vessel operation. Strike was resolved.
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PORT
Peru
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COMMENTS
Trucker Strike in early July affected terminals and vessel operation. Strike was resolved.
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PORT
Chile
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COMMENTS
Swells and high winds affecting all ports in Chile. Seeing some vessels delays in arrivals and departures.
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PORT
Hurricane Season
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COMMENTS
June 1st marked the first day of the Atlantic hurricane season, which will run until November 30. NOAA is predicting above-average hurricane activity this year which would make it the seventh consecutive above-average hurricane season. NOAA’s outlook for the 2022 Atlantic hurricane season, predicts a 65% chance of an above-normal season, a 25% chance of a near-normal season and a 10% chance of a below-normal season. The Eastern Pacific hurricane season also began on June 1st and ends November 30th. NOAA is predicting there is a 60% chance of below-normal tropical cyclone activity during the Pacific hurricane season this year. The outlook also indicates a 30% chance for near-normal activity, and only a 10% chance of an above-normal season.
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Monthly Highlights
Do you know the RCM (Remote Container Management) and Captain Peter technology?
This technology ensures that shippers know their perishable cargo’s condition throughout the cold chain journey. Our article explores three unique cases where this technology has benefitted shippers of bananas, frozen fish, and fruits in a big way.
Read the article here.
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