A clear focus on reducing emissions
CLIMATE CHANGEKCC works actively to reduce greenhouse gas (GHG) emissions from operations. Our combination carrier model provides lower carbon intensity compared to conventional shipping, and we continue to improve this through technical and operational measures.
KCC’s decarbonization journey has a unique starting point as the sole global player in combination carriers having 30-40% lower carbon emissions per transport work compared to standard vessels in KCC’s combination trade patterns. Over the next years we plan to further improve this competitive advantage through harvesting untapped efficiency improvement potential across KCC’s business. In parallel we are actively preparing for the utilization of new low- and zero- carbon fuels.
Our pathway to 2030 and beyond
2026
30% reduction* in EEOI through voyage trading and energy improvement efficiencies
*Relative to 2018 baseline
2030
45% reduction* in EEOI through newbuilds and the use of alternative fuels
*Relative to 2018 baseline
2050
NET ZERO
From all operations
How we work
To deliver on our targets, decarbonization is necessarily an integral part at any level of our business. Decarbonization is high on the agenda in discussions with our customers and is impacting our trading decisions. We use large resources and make large investments to improve the operational and energy efficiency of our vessels:
Optimize trading efficiency: KCC actively working on maximize cargo intake, maximize loaded voyages and minimize ballast through optimalization of combination trading, minimize waiting time in port and avoid high speed voyages through better scheduling and customer co-operation.
Perfect voyage efficiency: KCC is actively working on improve weather routing, maintain optimal trim, sail at constant load and lower the use of energy consumption onboard the vessels.
Improve energy efficiency: KCC works to improve the energy efficiency of the fleet through investing and piloting a wide variety of technical improvements with a focus on minimizing hull friction, which is estimated to represent about 70% of energy use, by improving propeller and hull efficiency.
Our new CABU III vessels
The three CABU newbuild vessels, ordered in 2023, will be delivered throughout 2026. The new vessels will have 35-40% lower carbon footprint (per7mt cargo transported) than the older vessels they replace, and will be prepared for conversion to new zero-/low-carbon fuels creating a pathway to a zero-emission future for KCC and its customers.
One of the three vessels will be delivered with wind-assisted propulsion, with suction sails installed at the front of the vessel.
New regulations
Environmental regulations are strengthening across the shipping industry, with shipping emissions included in the EU ETS as of 2024, the FuelEU Maritime regulation requiring alternative fuel uptake as of 2025, and IMO’s Net Zero Framework up for decision on a global regulation on GHG emissions to enter into force in 2028.
KCC works closely with other stakeholders to promote strong and fair regulations that incentivize the industry to decarbonize. In the short and medium term, such regulations in shipping are mainly an opportunity for KCC with its solutions having 30-40% lower CO2 emissions per ton transported compared to standard vessels in its main trades mainly due to substantially lower ballast. Hence, KCC’s combination carriers have a lower exposure to new carbon taxes or alternative fuel mandates than competing standard vessels.
Sea Cargo Charter
As one of our initiatives to improve transparency in report and spur more industry action, KCC was a founding member of The Sea Cargo Charter (SCC), a global framework for assessing and disclosing the climate alignment of chartering activities of charterers and shipowners.
The SCC establishes a common, global baseline to quantitatively assess and disclose whether chartering activities are in line with internationally adopted climate goals. Thus, it also serves as an important tool to support responsible decision-making.