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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
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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.

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Fashion

Primark Boss Marchant Resigns after 'Error of Judgment'

A Primark store is seen on Oxford Street, in London, Britain, January 16, 2023. REUTERS/Peter Nicholls/File Photo
A Primark store is seen on Oxford Street, in London, Britain, January 16, 2023. REUTERS/Peter Nicholls/File Photo
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Primark Boss Marchant Resigns after 'Error of Judgment'

A Primark store is seen on Oxford Street, in London, Britain, January 16, 2023. REUTERS/Peter Nicholls/File Photo
A Primark store is seen on Oxford Street, in London, Britain, January 16, 2023. REUTERS/Peter Nicholls/File Photo

The head of fast fashion chain Primark, Paul Marchant, has resigned with immediate effect after he admitted an "error of judgment" towards a woman in a social environment.
Parent-company Associated British Foods said in a statement on Monday that Marchant had accepted his actions fell below the standards expected, and the head of the 14 billion pound conglomerate said he was "immensely disappointed".
Primark has over 450 stores in 17 countries across Europe and the United States, with Marchant growing operating profit from about 250 million pounds to over a billion pounds during his more than 15 years in charge, Reuters reported.
Primark, founded in Ireland and has a huge presence on British high streets, contributes about half of group profit to AB Foods, which also owns major grocery, sugar, agriculture and ingredients businesses.
Shares in the parent company were trading down 3.5% on Monday morning.
"I am immensely disappointed. At ABF, we believe that high standards of integrity are essential," said CEO George Weston.
"Acting responsibly is the only way to build and manage a business over the long term. Colleagues and others must be treated with respect and dignity. Our culture has to be, and is, bigger than any one individual."
The group said that Marchant had cooperated with an investigation led by external lawyers, and acknowledged his "error of judgment".
It said he had apologized to the individual concerned, the group's board and also to his Primark colleagues and others connected to the business.
Eoin Tonge, AB Foods' finance director, will act as Primark chief executive on an interim basis working with the senior Primark management team and Primark's Strategic Advisory Board, while Joana Edwards, AB Foods' financial controller, will act as interim finance director.
"It is, indeed, a very disappointing, to say the least, end for Mr. Marchant and all at Primark and ABF, where he has overseen the development of a fine value-based retailer with strong prospects for growth," said analysts at Shore Capital.
AB Foods said the group would continue to offer support to the individual who brought this behavior to its attention.