Fashion Industry Driving Demand for Green Shipping, Maersk Says

Containers are seen on the Maersk's Triple-E giant container ship Majestic Maersk, one of the world's largest container ships, next to cranes at the APM Terminals in the port of Algeciras, Spain January 20, 2023. REUTERS/Jon Nazca/File Photo
Containers are seen on the Maersk's Triple-E giant container ship Majestic Maersk, one of the world's largest container ships, next to cranes at the APM Terminals in the port of Algeciras, Spain January 20, 2023. REUTERS/Jon Nazca/File Photo
TT

Fashion Industry Driving Demand for Green Shipping, Maersk Says

Containers are seen on the Maersk's Triple-E giant container ship Majestic Maersk, one of the world's largest container ships, next to cranes at the APM Terminals in the port of Algeciras, Spain January 20, 2023. REUTERS/Jon Nazca/File Photo
Containers are seen on the Maersk's Triple-E giant container ship Majestic Maersk, one of the world's largest container ships, next to cranes at the APM Terminals in the port of Algeciras, Spain January 20, 2023. REUTERS/Jon Nazca/File Photo

Fashion brands are a key driver of demand for green shipping fuels, according to shipping group Maersk (MAERSKb.CO), as the sector faces pressure from consumers and regulators to reduce their climate footprint.

Retailers ship huge volumes of clothes from production centres in countries such as China, Vietnam and Bangladesh to consumers around the world, causing carbon dioxide emissions, according to Reuters.

Overall, the textile industry is estimated to be responsible for between 2% and 8% of global greenhouse gas emissions, according to a United Nations Environment Programme report published last month.

The shipping industry, which itself aims to achieve net-zero emissions by 2050, has begun offering low-emission fuels such as biofuels made from cooking oil and food waste or methanol produced from renewable energy as an alternative to fuel oil.

The fashion industry accounted for 26% of the more than 240,000 containers that Maersk shipped last year using biofuels under its ECO Delivery contracts, making it the biggest sector using the low-emission fuel service, the company said.

"Many of the fashion brands have actually been the ones going for this," Josue Alzamora, global head of lifestyle vertical at Maersk, told Reuters at this week's Global Fashion Summit in Copenhagen.

"Of course, fashion companies also feel the pressure from consumers," Alzamora said.

Nearly one out of 10 containers Maersk, the number two global ocean container shipping firm, handled for owners of fashion brands last year was shipped using biofuels, he said.

The ECO Delivery contracts are sold at a premium to regular shipping.



Prada Profit Surges 21% as Speculation Swirls over Versace Bid

The logo of fashion house Prada is seen outside a shop in Milan, Italy, April 8, 2024. (Reuters)
The logo of fashion house Prada is seen outside a shop in Milan, Italy, April 8, 2024. (Reuters)
TT

Prada Profit Surges 21% as Speculation Swirls over Versace Bid

The logo of fashion house Prada is seen outside a shop in Milan, Italy, April 8, 2024. (Reuters)
The logo of fashion house Prada is seen outside a shop in Milan, Italy, April 8, 2024. (Reuters)

Italian luxury group Prada on Tuesday reported 21% growth in operating profit last year, in line with analysts' forecasts, amid speculation about a potential acquisition of smaller rival Versace.

The group, which has been defying a slowdown in luxury demand and outperforming many of its peers, reported a 17% increase at constant exchange rates in net revenues in 2024, reaching 5.43 billion euros ($5.72 billion) and matching analysts expectations, according to data from LSEG.

Revenues grew by double figures across all regions, with the exception of the Americas region, which reported a 9% growth thanks to an improvement in the second half of the year, Reuters reported.

The statement made no mention of the reports of a potential Versace deal.

In the fourth quarter itself, retail sales, which account for most of total sales, rose 18%, thanks mainly to the smaller Miu Miu brand. Growth at Prada's main brand was more moderate, around 4% year-on-year in the period.

"Looking forward, while being mindful that the complex industry dynamics are likely to persist, our priorities remain unchanged," said Chief Executive Andrea Guerra.

"At Prada, we have a clear opportunity to continue to drive market share, while at Miu Miu we shall consolidate its success," he added.

The group had a net cash position of 600 million euros at the end of December, which could help to fund a potential acquisition.