Category: Uncategorised

Daisy Leader, NYK’s latest LNG-fueled RORO vessel, sailed into European waters on her maiden voyage this month.

NYK will introduce a total of 20 new LNG-fueled RORO vessels by 2028 as a bridge-solution to achieve net-zero emissions of greenhouse gas (GHG) by 2050 for the NYK Group’s oceangoing businesses.

Like NYK’s other LNG-fueled RORO fleet, the vessel was named after flowers with the desire to realize and pass on a healthy global environment through environment-friendly transportation.

NYK has established “Sail GREEN” as the company’s brand to emphasize NYK’s efforts to reduce GHG emissions through the transport of goods and contribute to the eco-friendly supply chains of customers, regardless of the mode of transport (e.g., by sea or land, through terminals, etc.). Completion of this vessel is an initiative of that brand.

NYK’s Agent, ICO NV (Bert Adriansens) together with Port Authorities (Jan Bosmans & Pepijn De Vreese from PoAB) handed over a plaque to the Master to celebrate the maiden call at Zeebrugge.

Aiming for introduction by fiscal 2026 to reduce GHG emissions by nearly 30%

NYK Line (hereinafter “NYK”), NYK Trading Corporation (hereinafter “NYKT”), and Rexxam Corporation (hereinafter “Rexxam”) have begun onboard testing of jointly developed prototype car lashing belts using recycled polyester fiber for use in car carriers.

Prototype car lashing belt

Aiming to reduce petroleum consumption and greenhouse gas (GHG) emissions, the three companies signed an agreement in 2022 to jointly develop a car lashing belt that uses recycled polyester fiber for the belt portion. On April 23, a hundred of these prototype belts were loaded for testing on the car carrier Cassiopeia Leader. Through onboard testing, we will repeatedly confirm that the strength and durability of the product meet the standards set by NYK, with the aim of officially introducing the completed product by fiscal 2026.

Prototype belts in use①

Prototype belts in use②

The GHG emissions from the weaving of these prototypes, which use 99.5% recycled raw yarn, are expected to be reduced by approximately 28.3% compared to existing products made from petroleum resources. If these prototypes are used in all car carriers operated by NYK (approximately 120 vessels), GHG emissions could be reduced by approximately 400 tons.

The three companies will continue to develop lashing belts that combine high quality and performance with consideration for the natural environment by increasing strength and durability through repeated performance evaluation and improvement.

Outline of each company

< NYK Line >
Head office: Tokyo, Japan
Representative: Takaya Soga, President and Representative Director
Website: https://www.nyk.com/english/
Contact: Media Relations Team, Corporate Communication Group, NYKJP.ML.MEDIA@nykgroup.com

< NYK Trading Corporation >
Head Office: Tokyo, Japan
Representative: Shinji Umehara, Representative Director and CEO
Website: https://www.nyk-trading.com/eng/
Contact: Public Relations Section
info@nyk-trading.com

< Rexxam Co., Ltd. >
Head Office: Osaka, Japan
Representative: Shinji Okano, President
Website: https://www.rexxam.co.jp/english/
Contact: Osaka Sales Office, 06-6262-0871

On April 6, NYK Line (“NYK”), NYK Trading Corporation (“NYKT”), Azbil Yamatake Friendly Co., Ltd. (”Azbil Yamatake Friendly”), and Kayama Kogyo Co., Ltd. (“Kayama Kogyo”) began recycling well-worn vehicle lashing belts that had passed their expiry for use on NYK operated RORO vessels.

Azbil Yamatake Friendly will collect and separate the lashing belts into metal parts and belts. Kayama Kogyo will then produce RPF fuel* from the plastic belts. Approximately 200,000 lashing belts are disposed of annually in the entire NYK operated RORO fleet. If all those belts are recycled, they can be converted into approximately 20 tons of RPF fuel.

When recycling started on April 6, about 27,000 used lashing belts were collected from the RORO vessel Sagittarius Leader at the port of Nagoya.

Recycling process

Previously, lashing belts that had passed their useful life based on NYK’s own safety standards were disposed of as industrial waste or sold as used products. From now on, specified discarded lashing belts will be recycled into RPF fuel and reused as an energy resource. Kayama Kogyo will contribute to further GHG emission reductions by using renewable energy sources for all electricity used in fuel production.

In addition to consideration for the natural environment, this initiative incorporates a process that welcomes diverse human resources. Employees with intellectual disabilities separate the metal and belts at Azbil Yamatake Friendly, and foreign technical interns are involved in RPF fuel production at Kayama Kogyo. To create a place where everyone can work with peace of mind, we have developed specialized cutting machines, promoted smooth communication through Japanese language education, and expanded prior training on work content.

The four companies will continue to promote corporate activities that respect the global environment and realize an inclusive society** in which people from various backgrounds can play an active role without distinction.


*RPF fuel (Refuse-derived paper and plastics densified fuel)
Solid fuel made mainly from recovered paper and waste plastics that are difficult to recycle, among other industrial waste. RPF fuel has a high calorific value and is used as a substitute for fossil fuels such as coal and coke.

** Inclusive society
A society that recognizes diversity in terms of gender, age, disability, nationality, religion, culture, etc.

Company Overviews

NYK Line
Head office: Tokyo
Representative: Takaya Soga, President
Website: https://www.nyk.com/english/

NYK Trading Corporation
Head office: Tokyo
Representative: Shinji Umehara, Representative Director and CEO
Website: https://www.nyk-trading.com/eng/

Azbil Yamatake Friendly Co., Ltd.
Head Office: Kanagawa Prefecture
Representative: Yasuo Otsuka, President
Website: https://ayf.azbil.com/

Kayama Kogyo Co., Ltd.
Head Office: Aichi Prefecture
Representative: Junichiro Kayama, Representative Director
Website: https://www.kayama-k.co.jp/english

Release 3 goes live on 3rd June 2024.

Import Control System 2 (ICS2) is the European Union’s new enhanced electronic safety and security screening system, enabling customs authorities to conduct targeted risk assessments, based on the expanded Entry Summary Declaration (ENS) data, prior to the arrival of goods in the EU.

To comply with this EU regulation, our customers will be required to provide additional, more detailed information, as part of their shipping instructions. Some of the changes will involve the provision of:

•            6-digit Harmonized System Code (HS Code)

•            A complete description of goods

•           EORI number of the consignee established in the EU

•            Detailed address of the consignee

•            Seller / buyer information

This new process will also enable provisions for the filing of ENS data by multiple parties (I.e., carrier / forwarder / consignee).

ICS2 is going to be launched during three stages. Under Release 3, all goods transported on maritime and inland waterways, roads, and railways, to or through the EU, Switzerland, Norway, and Northern Ireland, will be subject to new data filing requirements.

Poor data quality and inadequate declarations may result either in goods being delayed at the EU customs boarders, rejected or subject to customs authorities’ intervention, with possible sanctions imposed for non- compliance. For more information on the ICS2 Release 3, please follow the link to the European Commission’s website which details the roll-out plan:

(Image source: European Commission website, March 2024)

Responding to Expanded Local Regulation Starting in 2025….

NYK concluded an agreement with STAX Engineering Pty Ltd. (STAX), a U.S. company leading in maritime emissions capture and control, to use its emissions capture and control technology to recover exhaust gases from ships. NYK will use this technology to recover exhaust emissions at berth from NYK-operated RORO vessels calling at ports in the U.S. state of California starting in January 2025. This initiative is in response to the California Air Resources Board’s (CARB) expanded exhaust emission regulations for vessels calling at ports in the state.

Emissions capture and control technology uses steel pipes and hoses to connect a barge, a small flat-bottomed ship, or a land-based exhaust-gas treatment system to a vessel’s funnel, allowing exhaust gases to be captured without venting into the air. This technology makes capturing and controlling exhaust gases possible without installing additional equipment on the vessel. NYK plans to use this technology to provide exhaust-gas capture services for NYK-operated RORO vessels at major ports throughout California. The total amount of potential payment between NYK and STAX is $16 million.

Image of exhaust gas recovery using emissions capture and control technology

CARB established emission regulations for oceangoing vessels in 2007. In 2014, CARB mandated that oceangoing container ships, passenger ships, and other vessels calling at California ports reduce their emissions of nitrogen oxides (NOx), reactive gases (ROG), carbon dioxide, particulate matter (PM), and diesel particulate matter (DPM) while at berth. CARB plans to add car carriers and tankers to this regulation in 2025, making it an urgent issue to be addressed.

Overview of STAX Engineering Pty Ltd.

Headquarters: California, USA
Representative: Michael Walker, Chief Executive Officer
Website: https://www.staxengineering.com/


On March 10, 2023, the NYK Group released its medium-term management plan “Sail Green, Drive Transformations 2026 – A Passion for Planetary Wellbeing. ” The NYK Group is promoting growth strategies with ESG at the core, based on the Group’s mission statement of “Bringing value to life” and a new corporate vision for 2030, which reads, “we go beyond the scope of a comprehensive global logistics enterprise to co-create value required for the future by advancing our core business and growing new ones.”

NYK has established “Sail GREEN” as the company’s brand to emphasize NYK’s efforts to reduce GHG emissions through the transport of goods and contribute to the eco-friendly supply chains of customers, regardless of the mode of transport (e.g., by sea or land, through terminals, etc.). Conclusion of this agreement is an initiative of that brand.

NYK is pleased to announce that for a fourth consecutive year, CDP,* an international environmental non-profit organization, has recognized NYK as an “A List” company for climate change.

CDP’s annual environmental disclosure and scoring process is widely recognized as the gold standard of corporate environmental transparency. In 2023, more than 740 signatory financial institutions with assets of more than USD 136 trillion requested disclosure of data on environmental impacts, risks, and opportunities through the CDP platform. In 2023, about 23,000 companies responded — the highest ever.

Over 21,000 companies worldwide that were assessed, 346 companies were selected for the “A List,” out of which 109 are Japanese companies and 4 are shipping companies, including NYK. (As of February 6, 2024)

We believe that our selection as an “A List” company, the highest rating, is a comprehensive recognition of our achievements as a global leader in reducing greenhouse gas (GHG) emissions and the following series of initiatives to mitigate the risks of climate change.

– The announcement of the NYK Group medium-term management plan “Sail Green, Drive Transformations 2026 — A Passion for Planetary Wellbeing ” and the promotion of a growth strategy with ESG at its core

– The revision of the Group’s Environmental Vision and Environmental Policy , and presentations within and outside the Group featuring necessary responses in line with the scope and content of the environmental responses required by society

– Adequate disclosure of information in addressing climate change in the four foundational areas — i.e., governance, risk management, strategy, and metrics and targets — in accordance with TCFD (Task Force on Climate-related Financial Disclosure) recommendations**

– The effective functioning of an Environmental Management System (EMS) based on a clear commitment by top management to climate change measures

– Appropriate recognition and assessment of “risks and opportunities” for environmental issues

– Highly transparent disclosure of GHG emissions and reductions

– Proactive efforts to reduce GHG emissions through the introduction and use of LNG fuels, active use of biofuels and methanol fuels, and various fuel-saving activities

– Active engagement in research and demonstration projects for liquefied CO2 marine transportation and the practical use of zero-emission fuels such as hydrogen and ammonia

– Proactive efforts to collaborate with diverse stakeholders and advocate for policy through various initiatives and industry associations

On March 10, 2023, the NYK Group released its medium-term management plan “Sail Green, Drive Transformations 2026 — A Passion for Planetary Wellbeing.” The NYK Group is promoting growth strategies with ESG at the core, based on the Group’s mission statement of “Bringing value to life” and a new corporate vision for 2030, which reads, “we go beyond the scope of a comprehensive global logistics enterprise to co-create value required for the future by advancing our core business and growing new ones.”

* CDP is a global non-profit that runs the world’s environmental disclosure system for companies, cities, states, and regions. Founded in 2000 and working with more than 740 Signature Financial Institutions with over $136 trillion in assets, CDP pioneered using capital markets and corporate procurement to motivate companies to disclose their environmental impacts, and to reduce greenhouse gas emissions, safeguard water resources, and protect forests.
Over 24,000 (approximately 18,700 companies in 2022) organizations around the world disclosed data through CDP questionnaires in 2023, including more than 23,000 companies worth two-thirds of the world’s market capitalization and over 1,100 cities, states, and regions.
Fully TCFD aligned, CDP holds the largest environmental database in the world, and CDP scores are widely used to drive investment and procurement decisions towards a zero carbon, sustainable, and resilient economy.
The CDP score is widely used around the world as a leading indicator in making sustainable investment and procurement decisions. Responding companies are allocated a score from A to D- depending on the comprehensiveness of their disclosure. Those that don’t disclose or provide insufficient information are marked with an F.

The full list of companies that made this year’s CDP A List is available at the link below, along with other publicly available company scores.
https://www.cdp.net/en/companies/companies-scores


** NYK’s disclosure based on TCFD recommendations

Reference

• NYK Environmental Management

• NYK ESG Management

• NYK Report

Energy-saving technologies to reduce GHG emissions and fuel costs

NYK will install a Variable Compression Ratio (VCR) system on LNG (liquefied natural gas) fueled car carriers to be built by Shin Kurushima Dockyard Co., Ltd. The first vessel is scheduled to be delivered in 2026.

The VCR system can adjust the air compression ratio in the engine combustion chamber to an optimal balance according to engine power and LNG fuel properties. This optimal adjustment will improve fuel efficiency during operation by about 3% in LNG gas mode and about 6% in diesel oil mode. The system is also expected to play an important role in reducing GHG emissions from existing ships and improving engine efficiency when decarbonized fuels are introduced.

Using its technology and experience with large low-speed marine engines, Mitsui E&S DU Co., Ltd. developed the VCR system together with Winterthur Gas & Diesel Ltd, a Swiss engine licensor.

In the “NYK Group ESG Story 2023” published in November, we set new targets that include a “45% reduction of the NYK Group’s GHG (Scope 1+2) emissions by FY2030 (versus FY2021)” and “Total net-zero GHG (Scope 1+2+3) emissions by FY2050 for the NYK Group.”
In particular, with regard to reducing GHG emissions in Scope 1+2, one of the tactics is to maximize energy efficiency, and improving fuel efficiency through technological enhancement is essential to achieving the new decarbonization targets set by the NYK Group. The NYK Group will continue to actively collaborate with partners in Japan and overseas to promote initiatives related to energy-saving technologies, with the aim of realizing a decarbonized society.

Our New Decarbonization Targets (Excerpt from NYK Group ESG Story 2023)

Participation in this demonstration test is part of business activities related to Sail GREEN, a brand that emphasizes NYK’s efforts to reduce GHG emissions through the transport of goods and contribute to the eco-friendly supply chains of customers, regardless of the mode of transport (e.g., by sea or land, through terminals, etc.).

On March 10, 2023, the NYK Group released its medium-term management plan “Sail Green, Drive Transformations 2026 — A Passion for Planetary Wellbeing.” The NYK Group is promoting growth strategies with ESG at the core, based on the Group’s mission statement of “Bringing value to life” and a new corporate vision for 2030, which reads, “we go beyond the scope of a comprehensive global logistics enterprise to co-create value required for the future by advancing our core business and growing new ones.”

On the evening of November 19 in Tokyo (early afternoon local time), NYK was informed by Galaxy Maritime Ltd., which is based in the U.K., that an NYK-chartered pure car and truck carrier (PCTC) named “Galaxy Leader” had been seized near Hodeida, Yemen, while sailing for India. No cargo was on the vessel.

At 8:30 a.m. today, NYK organized a crisis management center at its head office to gather information and manage this incident. As the vessel’s charterer, we are prioritizing the safety of the 25 crew members.

We will report additional information as soon as it becomes available.

Source: https://www.nyk.com/english/news/2023/20231120_01.html

Planning to introduce 20 vessels by 2028

On October 26, NYK took delivery of the LNG-fueled pure car and truck carrier (PCTC) Sweet Pea Leader at Tadotsu Shipyard Co., Ltd., a member of the Imabari Shipbuilding Group. The vessel had been ordered by NYK from Nihon Shipyard Co., Ltd. and is NYK’s seventh LNG-fueled PCTC. NYK will introduce a total of 20 new LNG-fueled PCTCs by 2028 as a bridge-solution to achieve net-zero emissions of greenhouse gas (GHG) by 2050 for the NYK Group’s oceangoing businesses.

Like NYK’s other LNG-fueled PCTCs, the vessel was named after flowers with the desire to realize and pass on a healthy global environment through environment-friendly transportation.

NYK has established “Sail GREEN” as the company’s brand to emphasize NYK’s efforts to reduce GHG emissions through the transport of goods and contribute to the eco-friendly supply chains of customers, regardless of the mode of transport (e.g., by sea or land, through terminals, etc.). Completion of this vessel is an initiative of that brand.

Sweet Pea Leader

Vessel Particulars

Name: Sweet Pea Leader
LOA: 199.90 m
Beam: 38.00 m
Loadable Cargo: 7,000 units
Gross Tonnage: 77,644 tons
Year Built: 2023
Flag: Liberia

On March 10, 2023, the NYK Group released its medium-term management plan “Sail Green, Drive Transformations 2026 — A Passion for Planetary Wellbeing. ” The NYK Group is promoting growth strategies with ESG at the core, based on the Group’s mission statement of “Bringing value to life” and a new corporate vision for 2030, which reads, “we go beyond the scope of a comprehensive global logistics enterprise to co-create value required for the future by advancing our core business and growing new ones.”

NYK’s sixth LNG-fueled pure car and truck carrier (PCTC), Sumire Leader, has started its transportation service for Mazda Motor Corporation (Headquarters: Aki District, Hiroshima Prefecture; Representative Director, President, and CEO: Katsuhiro Kago), arriving at the port of Hiroshima on Oct 17 and the port of Nakanoseki (Yamaguchi Prefecture) on Oct 18

This vessel is the last of four LNG-fueled PCTCs delivered from China Merchants Jinling Shipyard (Nanjing) Co. Ltd.* Desiring to realize and pass on a healthy global environment through environment-friendly transportation, NYK is naming its LNG-fueled PCTCs after flowers, and “sumire” is Japanese for violets.

Sumire Leader will transport finished vehicles, including those made by Mazda Motor Corporation, and seeks to fulfill customers’ demands for a lower environmental burden in the logistics field.

Vessel Particulars

Name: Sumire Leader
LOA: 199.90 m
Beam: 38.00 m
Loadable Cargo: 7,000 units
Gross Tonnage: 78,866 tons
Year Built: 2023
Flag: Liberia

On March 10, 2023, the NYK Group released its medium-term management plan “Sail Green, Drive Transformations 2026 – A Passion for Planetary Wellbeing. ” The NYK Group is promoting growth strategies with ESG at the core, based on the Group’s mission statement of “Bringing value to life” and a new corporate vision for 2030, which reads, “we go beyond the scope of a comprehensive global logistics enterprise to co-create value required for the future by advancing our core business and growing new ones.”

NYK has set a long-term target of net-zero emissions of greenhouse gas (GHG) by 2050 for the NYK Group’s oceangoing business and aims at launching zero-emission ships that run on low-environmental-load marine fuels, such as ammonia or hydrogen, in the future. NYK is positioning LNG, a low-carbon marine fuel, as a bridge-solution until future zero-emission ships are realized. The company plans to take delivery of a total of 20 new LNG-fueled PCTCs by 2028 under the Sail GREEN^** brand.

* Nanjing Jinling Shipping Co., Ltd.
China Head Office: Nanjing, People’s Republic of China; Business: Shipbuilding; Website: http://jlshipyard.sinotrans-csc.com/col/col4261/index.html


** Sail GREEN
A brand that emphasizes NYK’s efforts to reduce GHG emissions through the transport of goods and contribute to the eco-friendly supply chains of customers, regardless of the mode of transport (e.g., by sea or land, through terminals, etc.).

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NYK’s PCTC Fleet Composition Transition Plan (2020–2050) (as of March 2022)