Fossil Fuels Account for 40% of Freight Shipping Tonnage but Only 50% of Its Fuel Consumption

Fossil Fuels Move 40% of Freight Shipping Tonnage but Use 50% of the Sector’s Fuel

Fossil fuels power roughly half of the total fuel consumption in global freight shipping while transporting only 40% of the cargo tonnage. This imbalance means that the emissions intensity of fossil‑fuel‑driven vessels is significantly higher than that of vessels using alternative energy sources.

Why the Disparity Matters

The disparity reveals that a relatively small share of cargo (40%) is responsible for a disproportionately large share of fuel use (50%). Consequently, decarbonisation efforts that target the fossil‑fuel segment can achieve outsized reductions in greenhouse‑gas emissions.

Current Energy Mix in Freight Shipping

  • Fossil‑fuel‑powered vessels: Carry 40% of total freight tonnage.
  • Alternative‑energy vessels (e.g., wind‑assisted, battery‑electric, hydrogen, ammonia): Carry the remaining 60% of tonnage.
  • Fuel consumption share: Fossil fuels account for 50% of total fuel burned across the sector.

This data underscores that alternative‑energy ships are, on average, more fuel‑efficient per unit of cargo than their fossil‑fuel counterparts.

Implications for Policy and Investment

  • Policy focus: Incentivising low‑carbon propulsion technologies for the 40% of cargo currently moved by fossil fuels can yield immediate emissions cuts.
  • Investment priority: Capital directed toward retrofitting existing vessels or building new low‑carbon ships should prioritize routes and cargo types where fossil‑fuel use is highest.
  • Regulatory impact: Carbon pricing or fuel‑efficiency standards that disproportionately affect high‑fuel‑consumption ships will accelerate the shift toward cleaner alternatives.

Pathways to Reduce Fossil‑Fuel Share

  1. Electrification and Battery‑Hybrid Solutions: Deploying battery systems for short‑haul routes can replace diesel engines entirely.
  2. Wind‑Assisted Propulsion: Modern sails and kites can cut fuel burn by 10‑30% on long‑haul voyages.
  3. Alternative Fuels: Scaling ammonia, methanol, or green hydrogen can lower carbon intensity when paired with efficient engines.
  4. Operational Optimisation: Speed reduction, better routing, and hull‑cleaning improve fuel efficiency across all vessel types.

Conclusion

Fossil fuels, while moving only 40% of freight tonnage, consume half of the sector’s fuel, making them the primary driver of shipping emissions. Targeted decarbonisation of this segment offers a high‑impact lever for reducing the industry’s carbon footprint.

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