The previous three weekly updates on the Xeneta and Marine Benchmark Carbon Emissions Index (CEI) have focused on trades which have seen declining performance in Q3, but this time around we have a more positive outlook to share.
The CEI ranks carriers by their carbon emissions, with lower scores representing better performance in this regard.
The Far East to US West Coast trade lane registered a CEI score of 79.3 in Q3, which is an improvement of 3.2 points on Q2.
Maersk are number one
Maersk have taken top spot in the rankings with a CEI score of 68.2 in Q3 after achieving improved performance in key areas which have a significant impact on carbon emissions.
Firstly, Maersk’s filling factor of 88.9% in Q3 is the highest since Q2 2022. Maersk did also register a 5% decrease in average ship size on this trade in Q3 compared to Q2 – which usually has a negative impact on the CEI – but this attempt to manage capacity may have contributed to the high filling factor.
As we read in last week’s CEI update, the age of ships has a significant impact on CEI score, even in the face of worsening filling factor and faster sailing. In the case of Maersk, we have seen a consistent pattern of deploying younger ships on this lane, with the average reducing by one year in Q3 2023 compared to Q2 2022.
Record average ship size for Yang Ming and OOCL
Yang Ming put a poor Q2 on the CEI behind them to take second place on the index in Q3 with a score of 68.5. This is up by 10.5 on the previous quarter and only 0.3 behind first-placed Maersk.
OOCL make up the top three for this trade in Q3. Again this was the result of improving performance with a score of 69.8, which is the best score so far for this carrier on the Far East to US West Coast trade.
Both Yang Ming and OOCL utilized all-time high average ship size on this trade in Q3 at 11 074 TEU and 13 208 TEU respectively. OOCL’s average ship size was second only to MSC’s 14 342 TEU in Q3.
When it comes to average age of ships deployed, Q3 again saw record performance by Yang Ming and OOCL at 6.2 years and 10.5 years respectively.
Trade sees sustained CEI improvement
With a score of 79.3 in Q3, the Far East to US West Coast trade has seen continuous improvement on the CEI since a score of 96.0 in Q4 2022.
In terms of filling factor there has been quarter-on-quarter improvement from the 76.4% recorded in Q4 2022 through to the 81.3% in Q3 this year.
The trend for improving key factors in the CEI is also found in the average ship age deployed on this lane, which has reduced from 12.3 years in Q3 2022 to 10.6 years in Q3 2023.
The Far East to US West Coast trade lane has seen the average size of ship decrease by 1.1% from Q2 to Q3 this year. Again, this metric would have a negative impact on the CEI score, but it should be viewed in the context of longer term improvement.
Q4 2021 saw the smallest average ship size registered on this trade at 7 234 TEU, but in Q3 this year it stood at 9 545 TEU.
Xeneta’s CEI will keep providing valuable insights into carriers' carbon emissions performance and overall trade lane performances while balancing climate change-related responsibilities within a hugely challenging market. Keep in the know as we cover further major trades an proceed to start the new year.
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CEI data powered by Xeneta and Marine Benchmark makes no assumptions and is independent from carriers. It's sourced from AIS tracking of actual sailings, currently covering 13 of the world’s biggest trades, with more being added in the coming months. Find out how you can factor sustainability into your carrier selection and get a demo of the CEI here.