ECO Delivery

When you opt for ECO Delivery, we substitute the amount of fossil fuels that would normally be required for shipping your cargo with green fuel, such as second-generation, low-carbon biofuels. Your green fuel purchase is used in our ocean transport network and results in immediate emission reduction at the source. At the end of your contract period, you receive a certificate stating the amount of CO₂ emissions that you saved by opting for ECO Delivery transports.

On a Well-to-Wake/Wheel (WTW) basis, our biofuels reduce CO₂e emissions by up to 84 per cent as compared to bunker fuels. WTW calculations offer a more holistic approach compared to the previously used Tank-to-Wake/Wheel (TTW) methodology. WTW also includes the upstream emissions from extraction, processing and distribution of fuels, which are lacking in the TTW approach.

Our certificate states how many metric tons of CO₂ emissions you have saved over your contract period. These savings are based on what the average emissions accrued would be during your goods’ transport journey had fossil fuels been used. The certificate also includes a break-up of the amount of green fuel used, the volume of containers shipped and the CO₂ savings (Well-to-Wheel and Tank-to-Wheel).

The methodology for accounting emissions is based on Clean Cargo and GLEC (Global Logistics Emissions Council) emission factors and is certified by the Roundtable for Sustainable Biomaterials (RSB). We ensure auto-generated performance tracking of ECO Delivery shipments. PwC audits this process in accordance with the International Standard of Assurance Engagements 3410 (ISAE 3410 – Assurance Engagements on Greenhouse Gas Statements), showing CO₂ savings for the scope of the ECO Delivery agreement.

Our low-carbon biofuels are made from waste streams that are unfit to use for human or animal consumption. These are referred to as second-generation biofuels. Independent parties, such as the International Sustainability and Carbon Certification (ISCC), verify our biofuels and their entire supply chain from raw material to end product through proof of sustainability documentation.

ISCC complies with the Renewable Energy Directive (RED) and the Fuel Quality Directive (FQD) of the European Commission. Since 2011, the RED and FQD build the legal framework for the implementation of renewable energy targets for the transport sector in the European Union.

Today, primarily three options for reducing ocean shipping emissions are available: offsetting, LNG (liquified natural gas) and biofuel shipments.

Offsetting, most commonly practiced by planting trees, captures CO₂ emissions from the atmosphere and is therefore employed to compensate emissions released from burning fossil fuels. LNG is a fossil fuel that releases fewer greenhouse gas emissions when burned than conventional bunker fuels.

Hamburg Süd offers exclusively biofuel shipments as we believe this to be the most sustainable option of all three alternatives. Second-generation, low-carbon biofuels avoid emissions in the first place, thereby decreasing the need for compensation. They can have the most significant impact in terms of reducing greenhouse gas emissions over the fuel lifecycle.

As a flexible product, you can choose whether your entire contracted volume or only certain bookings, for example on selected corridors, are to be shipped in carbonreduced manner. Ask your account manager or sales representative to add ECO Delivery as an add-on to your ocean contract. Your respective selection will apply as from the time of booking.

An ECO Delivery surcharge will be added to your usual ocean freight invoice and shown in a separate line on your invoice. This means that your existing contract rates for ocean transportation will remain unchanged and a surcharge will only apply to those containers that have been tagged with ECO Delivery and are shipped with reduced carbon emissions accordingly.