New CBS Research Sheds Light on Hidden Barriers to Shipping Industry’s Green Transition

Copenhagen, March 31, 2025 – As the maritime industry faces mounting pressure to decarbonize, a new research project at CBS Maritime and the Department of Operations Management is turning attention to a critical — but often overlooked — factor: the complex dependencies between ship owners and shippers.

04/03/2025

Led by ph.d. student Yanan Li, the project tackles one of the industry's most urgent challenges. Despite high-profile regulatory efforts like the IMO 2020 Low Sulphur Cap and the EU Emissions Trading System, the sector’s shift to alternative fuels remains sluggish. Traditional explanations have pointed to technological uncertainty and weak market signals. But Yanan’s study introduces a fresh perspective by examining the strategic relationships and power dynamics that shape sustainability decisions in the shipping sector.

The study explores how fleet decisions are affected not just by technological feasibility, but by inter-firm power structures. Highly dependent ship owners may align more closely with shippers’ green demands, while those with diversified client portfolios often maintain more flexibility.

Yanan's research analyzes large-scale industry data to understand how demand-side forces — such as ESG commitments and regulatory expectations placed on shippers — cascade through the value chain and impact ship owner behavior.

“Much of the existing research assumes that shippers’ sustainability goals automatically influence ship owners’ decisions,” Yanan explains. “But this overlooks how dependent ship owners are on specific customers — and how that dependency shapes their willingness to invest in green technologies.”

The findings offer practical implications for both policymakers and industry stakeholders. They suggest that to accelerate decarbonization, incentives must go beyond technology and regulation, and also address the relational dynamics between shipping companies and their customers.

This kind of research plays a crucial role in advancing our understanding of the complex strategic barriers that hinder sustainability transitions. By exploring these challenges through an interdisciplinary and applied research lens the work not only contributes to academic knowledge but also has practical relevance for industries and policymakers striving to implement sustainable practices in real-world contexts. This aligns with CBS Maritime’s broader mission to drive impactful change through collaboration, innovation, and a strong connection between research and practice.

For more information contact  Yanan Li, email: yl.om@cbs.dk
 

The page was last edited by: Department of Operations Management // 04/03/2025