Shipping industry could lose $10 billion a year battling climate change by 2050

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Shipping is at increasing risk from tropical storms, inland flooding, sea level rise, drought and extreme heat.

Severe drought has caused water levels in the Mississippi River to drop so low that ships have been running aground. To keep commerce flowing, the U.S. Army Corps of Engineers is now using a dredge ship to push out silt in the river near Vicksburg. The chief of navigation for the corps told local media the low water level can cause a major financial impact.

That same year, record low water levels in the Mississippi River disrupted transportation of agricultural goods, costing about $1 billion in losses. "Imagine that if the port has an impact, but that we are not able to unload the cargo here, there's a downstream impact to the supply chain, and also towards the upstream. So it's all connected," Phol said.

In September, Maersk unveiled its first containership powered by green methanol, which emits less carbon dioxide than traditional vessels. Twenty-four more are coming, but the fuel is both expensive and scarce. Shipping accounts for roughly 3% of global greenhouse gas emissions but it took until this past July for the international industry to finally agree to a net zero goal by 2050.

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Shipping industry could lose $10 billion a year battling climate change by 2050Shipping is at increasing risk from tropical storms, inland flooding, sea level rise, drought and extreme heat.
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