Clean Vessel Incentive Program

We all want to do our part in protecting the environment, even in the international freight shipping industry. The Environmental Protection Agency (EPA) might regulate emission levels from ocean vessels, but that is not enough to make a major difference. That is why major US ports are stepping up to provide better environmental standards. One port that is making a difference is the Port Authority of New York and New Jersey. In 2013, the Port Authority of New York and New Jersey launched their Clean Vessel Incentive Program. The program gives financial incentives to carriers at the port who live by the stricter environmental standards set in place by the Port Authority. Freight forwarders everywhere have applauded the program.

According to their Clean Vessel Incentive Program, carriers can participate if they make alterations to their vessel’s engines, fuel and technology to dramatically reduce emissions beyond the policies developed by the International Maritime Organization. Since the inception of the program in January this year, 12 carriers and hundreds of vessels have signed on. The carriers include Hapag-Lloyd, Maersk, NYK Line and others. And as of August, participating carriers in the program received over $310,000 in incentives.

The Clean Vessel Incentive Program will continue until December 31st 2015 at the Port Authority of New York and New Jersey. Other ports like in Los Angeles and Long Beach also have similar programs. In addition to the environmental impact, logistics experts are studying how the changes to vessels might lower shipping costs, which in turn might lower ocean freight rates.