Lower emissions on the high seas

By Catherine
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By Catherine Bolgar

Container ship in the port of Rotterdam, Holland

Ships are the cheapest and most energy-efficient way to transport goods around the world. Cargo vessels on average produce 15-21 grams of carbon dioxide emissions per tonne of cargo carried a kilometer—compared with 540 grams of CO2 per tonne-kilometer for air freight. Yet, global shipping is so big that it accounts for 2.6% of global CO2 emissions. That would rank it sixth globally among nations, just behind Japan and ahead of Germany.

And CO2 isn’t the only pollutant. Ships burn heavy fuel oil, which is a waste product of the petroleum industry and the reason shipping is so cheap. This fuel releases a large amount of the pollutants sulfur dioxide, known as SOx, and nitrogen oxide, or NOx.

Sulfur is one of the main challenges for the industry, with regulations cutting the sulfur content of fuel to 0.1% since the start of 2015, compared with 1% previously, for the Baltic Sea, North Sea, U.S. and Canada coasts and around Puerto Rico and the U.S. Virgin Islands.

“The big game-changer in the industry at the moment is sulfur regulations,” says Simon Bennett, director of policy and external relations at the International Chamber of Shipping, an industry group based in London. A cap at 0.5% sulfur content, from 3.5%, is supposed to go global in 2020, with the tighter limits continuing in certain coastal areas, he says.

Aerial view of tankers and shipsOne low-hanging fruit in the quest for sustainability is slow steaming. When the global economic crisis hit in 2008, ship owners found it was more profitable to have all their ships busy at sea, even if half empty, rather than at berth, says Sotiris Raptis, shipping and aviation officer at Transport & Environment, a Brussels-based nongovernmental agency that promotes sustainable transportation policy at the European Union and global levels.

In an attempt to prevent freight rates from falling due to depressed demand after the 2008 economic crisis and in order to reduce consumption of fuel—which makes up 70% of operating costs—ships slowed down. Fuel consumption is proportional to the cube of the ship’s speed, so at the upper limit, going a little bit faster requires a lot more fuel.

“You’re carrying the same freight weight the same distance. But your costs are much lower,” explains Bill Hemmings, director, aviation and shipping at Transport & Environment.

By extension, lower fuel consumption means lower emissions of CO2, NOx and SOx, Messrs. Hemmings and Raptis say. Shipping emissions fell 10% since 2008 thanks to slow steaming, and even though global trade has picked up again, slow steaming continues.

In addition, “there are a lot of incremental measures that ship operators are looking at,” says Paul Gilbert, lecturer in climate change, sustainability and project management at the University of Manchester in the U.K. “For example, weather routing, propeller arrangements, altering the trim, looking at the substructure of the hull, using different paints and microbubbles under the vessel.”

Other technologies involve bigger changes, such as wind power. That can be with fixed sails, Mr. Hemmings says, or kite-like sky sails for routes with favorable trade winds.

“Funnily enough,” he says, “shipping is the only mode of transport that came from a sustainable origin, and it is going to have to go back to that technology.”

Beached container shipMore advanced technology requires a bigger investment, but ship owners don’t get the benefits because they aren’t the ones paying for the fuel.

“The interests are split,” Mr. Raptis says. “The charterer”—a retailer or manufacturer—”rents the ship and pays for the fuel. The market doesn’t know how efficient ships are.”

In 2015, the EU adopted a requirement that, from 2018, ships calling at EU ports report their emissions, which will give charterers a way to compare individual ships.

Emissions aren’t the only sustainability issue in shipping. The International Maritime Organization (IMO) requires that new ships treat ballast water, which is pumped in to stabilize ships when they aren’t carrying cargo, says Mr. Bennett of the ICS. Treatment will keep invasive species from being transported in the water to foreign habitats around the world. Some existing ships will probably need to be retrofitted with very expensive treatment systems from next year or shortly after.

Ship recycling is another area of concern. The IMO adopted the Hong Kong Convention for ship recycling in 2009, but it hasn’t yet been ratified by the requisite 15 nations with a sufficient presence in world shipping and ship recycling. The EU stepped up pressure with a similar measure, calling for an inventory of hazardous materials, including their weight and where on the ship they are used, with some materials, such as asbestos, prohibited. The EU regulation will apply to EU-flagged ships as well as other ships calling at EU ports.

 

Catherine Bolgar is a former managing editor of The Wall Street Journal Europe, now working as a freelance writer and editor with WSJ. Custom Studios in EMEA. For more from Catherine Bolgar, along with other industry experts, join the Future Realities discussion on LinkedIn.

Photos courtesy of iStock

The Shocking Secret of Fashion Consumers

By Lauriane
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There’s a secret held by every consumer that is nearly unknown to brands. It’s the shocking truth that almost every fashion house and sport products company ignores. Because of the blindfold that they have chosen to wear, they have lost billions of dollars in potential revenue. Each day, individuals look less and less at what a brand is trying to sell them and, instead, focus on their own curated tastes. Every person has their favorite pair of jeans, their most comfortable pair of shoes, and their go-to t-shirt.
As individuals, we have collectively decided what will be our “look” and what we prefer to wear on a daily basis. This has resulted one simple truth: Consumers do not shop from a single brand.

Consider this; one male consumer might wear the following outfit:
• Chuck Taylor low-tops from Converse
• 501 jeans from Levi’s
• Tee shirt from H&M

Another male consumer may wear a similar outfit to achieve an entirely different look:
• Chuck Taylor low-tops from Converse
• 511 slim fit jeans from Levi’s
• Slim fit dress shirt from Calvin Klein
• Ludlow blazer from J. Crew

But the sad fact is that these brands may never share consumer data, nor may they ever try to cooperate in any way in order to increase their respective sales figures. The consumer has moved to a true omnichannel model where they have created their own personal consumer “brand”, with their unique set of preferences and data, and are expecting traditional corporate brands to meet their needs. Unfortunately, the modern fashion industry simply isn’t set up to meet these expectations.

Product Development

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If these brands are going to change, and start embracing this new consumer model, they need to start at the beginning; with the product development process. Today, fashion companies focus on creating a single product that can reach as many different consumers as possible. In the future, however, customers will be expecting product that they can tailor to their own specific tastes. Therefore, companies who are eager to differentiate themselves are now shifting to tools and processes that allow for easy product customization. This is especially true in the footwear industry where each runner has a specific stride, foot strike, and comfort preference.
Tools are now starting to arrive that will allow footwear to be designed so that it can be easily customized at the point of sale. The next step would be to allow customization, of color and material, that might allow a pair of shoes to better coordinate with the pants from another brand being worn by the consumer. Here again, this may require brands to cooperate in their design approach to the consumer.

Changing Face of Retail

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Traditionally, companies have drawn a sharp division between their online stores and their brick and mortar counterparts; each selling product using completely different methods. At brick and mortar retail, the consumer is free to browse a small, fixed collection of products and soak in the brand identity. Online however, the consumer has to give up much of the brand identity, but are given access to a much larger, searchable set of inventory.
Looking forward however, some companies are breaking out of this model and mixing the best of the online experience with the best of brick and mortar. These companies are starting to bring the online experience into stores so that, while consumers may be able to browse key items and colors in store, they have access to the entire online inventory at the same time. They can also use these tools to build outfits, predict fit, and customize products; perhaps even customizing the product directly in the store. Finally, consumer preferences can be captured by these digital devices and fed directly back to the product teams via analytics built into modern PLM systems. But what’s still missing is the ability for the consumer to build a virtual closet of all their favorite products, regardless of brand, and have it travel with them from store to store; whether that store be physical or online.

Consumer Customization

EXP3 Mobile Assortment Exp 000

© Julien Fournié

Product customization is nothing new; especially in footwear. Many of the major footwear brands have offered customization for years: Adidas, Nike , and New Balance all offer online product customization. But this is typically just color and material customization and doesn’t allow for changes to fit or cushioning. Some brands, such as New Balance, are just starting to use modern 3D tools to provide customized outsoles to the elite athletes and, eventually, consumers. Once again, however, this begs the question of customization across brands. Will I be able to print the authentic Vans checkerboard pattern on my Gap t-shirt? Will I be able to customize the color of my 3D printed New Balance outsole to coordinate with my faded Levi’s 501s? Probably not. But the marketplace is changing and what was unthinkable in the past, may just become commonplace in the future.

Want to know more about how to engage consumers in the ultimate personalized product and purchase experience?

How a leading Furniture company can implement design-for-cost strategies and launch products faster?

By Lauriane
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Nowy Styl Group is a European leader in comprehensive furniture solutions and the third largest manufacturer of office furniture in Europe. They have selected “My Product Portfolio”, a Dassault Systèmes industry solution experience, to design, develop and deliver more innovative products and accelerate new product introductions.

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“Dassault Systèmes’ industry solution experience helps our technical departments, personnel, partners and suppliers better communicate and monitor and detect issues early in the development process to optimize product quality. These capabilities reduce development and manufacturing time and costs and improve our time to market.” said Tomasz Bardzik, CTO Nowy Styl Group.

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To understand how Nowy Styl Group can implement design-for-cost strategies and launch products faster and in compliance with sustainability targets and safety norms, Watch the video and Listen to Tomasz Bardzik, CTO of Nowy Styl Group

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Read the Full Press Release

Watch the video and Listen to Tomasz Bardzik, CTO of Nowy Styl Group

Discover more about “My Product Portfolio” Industry Solution Experience

Find more about Dassault Systèmes’ in the Consumer Goods & Retail industry

 



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