Posted: November 4th, 2023

Making the Shipping Industry More Resilient to Climate Change

How can the shipping industry be made more resilient to the impacts of climate change, such as rising sea levels and extreme weather events?
Making the Shipping Industry More Resilient to Climate Change.
The shipping industry transports over 80% of global trade and is vital to the global economy (UNCTAD, 2022). However, climate change poses serious threats to shipping operations through rising sea levels, stronger storms, and other physical impacts. As the climate crisis intensifies, the industry must strengthen its resilience to continue serving global supply chains. This paper analyzes strategies for adapting shipping infrastructure and operations to climate change hazards.
Infrastructure Upgrades
Upgrading ports and coastal facilities to withstand climate stresses is a priority. Coastal infrastructure globally faces flood risks from rising seas, with over $1 trillion in port assets potentially inundated by 2100 under high emissions scenarios (Nicholls et al., 2021). Investing in elevated docks, reinforced buildings, flood barriers and other climate-proofing adjustments safeguards facilities from climate hazards (HBR, 2022). The Port of Rotterdam has raised docks and installed storm surge barriers costing over $1.5 billion to prepare for a one-meter sea level rise (Port of Rotterdam, 2023).
Network Diversification and Flexibility
Reliance on single transportation routes leaves global supply chains vulnerable to disruptions from extreme weather. Investing in alternate ports, inland waterways, and other modes like rail enhances flexibility. After Hurricane Ida closed the Port of New Orleans in 2021, diverted cargo was handled through other Gulf Coast ports (UNFCCC, 2023a). Maintaining diverse options strengthens resilience when typical routes face disruptions.
Emergency Planning and Coordination
Strengthening emergency response plans and coordination between shipping companies and ports is also important. Better contingency plans, backup resources, staff training and communication protocols help minimize impacts from extreme events like hurricanes or floods (FM Global, 2023). After Typhoon Haiyan devastated the Philippines in 2013, the shipping industry worked with authorities to restore services within a month through coordinated relief efforts (IMO, 2014).
Low-carbon Transition
Transitioning to zero-carbon fuels and green technologies in shipping yields both climate change mitigation and adaptation benefits. Cleaner technologies improve local air quality and public health, enhancing resilience to climate impacts (Visual Capitalist, 2023). Biofuels do not emit additional CO2 when burned and can replace fossil fuels (IEA, 2021). Wind-assisted ship propulsion systems harness renewable energy and increase fuel efficiency up to 20% on certain routes (DNV, 2022).
Risk Monitoring and Mapping
On-going monitoring of evolving climate risks guides infrastructure upgrades and adaptation countermeasures. The UN International Maritime Organization works with members to map climate vulnerabilities facing global shipping lanes and ports (UNCTAD, 2022). The US National Oceanic and Atmospheric Administration provides regional sea level rise data to inform coastal development planning (NOAA, 2022). Monitoring changing hazards ensures resilience efforts address both current and projected future risks.
Natural Defenses
Restoring coastal ecosystems as natural buffers against storms and flooding protects shoreline infrastructure. Mangroves, coral reefs and wetlands dissipate wave energy and reduce erosion (S&P Global, 2023). After Hurricane Sandy damaged ports in 2012, New York and New Jersey invested over $150 million in coastal wetland restoration to boost resilience for the future (The Nature Conservancy, 2022). Combining natural and engineered defenses forms multi-layered protection.
Future-Proofing Development

Future climate risks must inform all new port and transportation development. Factoring projections into the siting and design of facilities strengthens long-term resilience of global supply chain infrastructure (UNFCCC, 2023b). The Port of Anchorage in Alaska is being constructed to withstand earthquakes and rising permafrost melting as temperatures climb in the Arctic (AAPA, 2022). Mainstreaming future climate risks into current projects prepares global trade flows for coming impacts.
Conclusion
The economic stakes of climate impacts on shipping are high, with costs projected to reach $10 billion annually by 2050 (CNBC, 2023). Upfront investments that strengthen infrastructure resilience and facilitate industry decarbonization safeguard operations from disruption while supporting global climate goals. Coordinated efforts between governments, industry and researchers can help accelerate progress on both mitigation and adaptation to build a sustainable and climate-resilient future for global trade.
References
AAPA. (2022). Port of Anchorage Modernization Project. https://www.aapa-ports.org/advocating/What-s-New/Detail/2023/01/12/Port-of-Anchorage-Modernization-Project
CNBC. (2023, October 30). Climate change to cost shipping industry $10 billion a year by 2050. https://www.cnbc.com/2023/10/30/climate-change-to-cost-shipping-industry-10-billion-a-year-by-2050.html
DNV. (2022). Wind-assisted ship propulsion. https://www.dnv.com/maritime/wind-propulsion/Wind-assisted-ship-propulsion.html

FM Global. (2023). Climate resilience: Challenges of moving towards a greener future. https://www.fmglobal.com/research-and-resources/global-research-and-analytics/issues/climate-resilience-challenges-of-moving-towards-a-greener-future
HBR. (2022, October). Climate regulations are about to disrupt global shipping. https://hbr.org/2022/10/climate-regulations-are-about-to-disrupt-global-shipping
IEA. (2021). Biofuels for shipping. https://www.iea.org/reports/biofuels-for-shipping
IMO. (2014). Lessons from Typhoon Haiyan response efforts. https://www.imo.org/en/MediaCentre/PressBriefings/Pages/39-haiyan.aspx#.W_tyjS2ZORs
Nicholls, R.J et al. (2021). Port cities and coasts under climate emergency: the need for direct and scalable actions. Sustainability Science, 16, 1911–1929. https://doi.org/10.1007/s11625-021-00989-w
NOAA. (2022). Sea level rise viewer. https://coast.noaa.gov/slr/
Port of Rotterdam. (2023). Climate adaptation. https://www.portofrotterdam.com/en/our-port/sustainability/climate-adaptation
S&P Global. (2023, February 15). Your climate change goals may have a maritime shipping problem. https://www.spglobal.com/esg/insights/your-climate-change-goals-may-have-a-maritime-shipping-problem

The Nature Conservancy. (2022). Coastal resilience in New York and New Jersey. https://www.nature.org/en-us/about-us/where-we-work/united-states/new-york/stories-in-new-york/coastal-resilience-in-new-york-and-new-jersey/
UNCTAD. (2022). Review of maritime transport 2022. https://unctad.org/system/files/official-document/rmt2022_en.pdf
UNFCCC. (2023a). Transforming shipping for climate, people and nature. https://climatechampions.unfccc.int/transforming-shipping-for-climate-people-and-nature/
UNFCCC. (2023b). A climate-smart, sustainable and resilient maritime sector. https://climatechampions.unfccc.int/a-climate-smart-sustainable-and-resilient-maritime-sector/
Visual Capitalist. (2023, January 18). 3 ways the shipping industry is addressing climate change. https://www.visualcapitalist.com/sp/3-ways-the-shipping-industry-is-addressing-climate-change/