The cargo shipping industry: navigating global trade
The cargo shipping industry, an enabler of global trade, is undergoing a major transformation driven by decarbonization mandates, digitalization, and shifting trade routes. ABB’s electrification, automation and digitalization solutions propel this transformation to make the industry run leaner and cleaner.
Web Story
4min
2025-09-11
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The cargo shipping industry is entering a critical renewal phase driven by aging fleets, decarbonization mandates, and shifting geopolitical trade patterns.02
Digitalization and automation are transforming shipping operations through real-time data, AI, and supply chain optimization.03
ABB supports the industry’s efforts to run better with advanced propulsion, electrification, digital, and cybersecurity solutions.Cargo shipping and global trade
The cargo shipping industry is the backbone of international trade1, operating more than 50,000 cargo vessels2 with a combined carrying capacity exceeding 2.3 billion deadweight tons3. This massive fleet transports in excess of 80 percent of the world's traded goods by volume. As a cornerstone of the global economy, the industry is undergoing a profound transformation to modernize, decarbonize, and meet the evolving demands of international trade.
Current and emerging sector trends
Massive fleet renewal imperative
With global fleet averaging 22.4 years old[4] and the increasing sizes of ships, the industry faces an unprecedented fleet renewal cycle driven partially by the International Maritime Organization’s (IMO) 2050 net-zero mandate. Early adopters could gain from investing in ship electrification and dual fuel engines.Digitalization in shipping operations
The cargo shipping industry is undergoing a digital transformation, with technologies like blockchain, the Internet of Things (IoT), and Artificial Intelligence (AI) being increasingly adopted. These innovations are enhancing real-time tracking, streamlining logistics planning, and improving overall supply chain transparency.Supply chain regionalization and reshoring
Global trade patterns are fundamentally shifting as companies pursue new routes and nearshoring to build supply chain and tariff resilience. This reshaping of trade routes creates new opportunities for more efficient, digitally optimized shipping networks while challenging traditional hub-and-spoke models.Increasing globalization and the expansion of international trade
The surge in globalization and the expansion of international trade has driven a significant increase in cargo shipping demand. As more countries engage in cross-border trading, the movement of goods by sea has become essential.Adoption of containerized shipping
Standardized containers have streamlined the transport process across various modes, such as ships, trucks, and trains, significantly reducing handling costs and time.Key challenges facing the cargo shipping sector
Reducing cargo ship emissions will require a range of interventions.
Decarbonization and environmental compliance
The shipping sector is responsible for approximately three percent of global CO₂ emissions. According to the new IMO shipping decarbonization requirements which come into force in 2028, subject to their formal approval in October 2025, shipowners must reduce the greenhouse gas emissions intensity of their ships' fuel by 30 percent by 2035 and 65 percent by 2040.Geopolitical and trade route disruptions
Geopolitical instability, tariffs and security threats are a constant source of disruption for global trade. Ongoing conflicts and issues at key maritime chokepoints directly impact voyage planning and costs.Digitalization and cybersecurity vulnerabilities
The increased reliance on AI and digitalization has created new vulnerabilities as cyberattacks have escalated dramatically between 2017 and today. The IMO now mandates cyber risk integration into Safety Management Systems under the International Safety Management (ISM) Code.ABB's solutions and technologies through the vessel lifecycle
As the cargo shipping sector grapples with these challenges, ABB’s comprehensive technology solutions can help build resilience and competitive advantage, while complying with stringent environmental and security requirements.
By combining this expertise with a worldwide service network ABB supports customers throughout the vessel’s lifetime.
Enabling decarbonization and energy efficiency
The AMXE high power density marine motor
The company's revolutionary AMXE marine motor provides the industry's highest power density for electric and hybrid vessels, featuring water-cooling technology that reduces space, weight, noise, and vibration while supporting the transition to sustainable fleets.
Boosting ship efficiency with permanent magnet generators
The latest in-line shaft generator from ABB with permanent magnet machines and front-end drive will enable ship operators to benefit from the efficiency, performance and reliability advantages of permanent magnet technology. It brings flexibility and offers hybrid solutions with batteries and shore to ship installations to a wide range of vessels.
Digital integration and cybersecurity
Intuitive digital navigation through Marine Pilot Control
As part of a range of digital solutions, the ABB Ability™ Marine Pilot Control revolutionizes vessel operations by consolidating all navigation modes into intuitive joystick and touchscreen interfaces, delivering predictive automation, dynamic positioning, advanced braking assistance, and precision autodocking capabilities that enhance safety.
Project DECARDIS to digitalize shipping decarbonization
In October 2024, the European Space Agency (ESA) launched the Decarbonization through Digitalization in Shipping (DECARDIS) project, together with ABB, Awake.AI and Wallenius Marine, to focus on helping ships cut greenhouse gas emissions by overcoming inefficiencies in the ship-port interaction.
The OCTOPUS system for greener marine journeys
ABB Ability™ OCTOPUS - Marine Advisory System is a unique product family for performance management in marine operations. Through various deployment methods, fuel consumption and emissions are able to be reduced by guiding crew decisions quickly.
Fortifying digital fleets with Marine Cyber Security
ABB Ability™ Marine Cyber Security delivers end-to-end protection through comprehensive risk assessment frameworks, real-time threat monitoring, and incident response protocols specifically designed for maritime environments.
Case studies around the world
Brazil
ABB to supply integrated power system for nine shuttle tankers
In a major step towards more efficient offshore operations, Samsung Heavy Industries Co. Ltd. (SHI) and ABB have signed an agreement to equip a fleet of shuttle tankers with ABB’s Onboard DC Grid™ power system platform.
Türkiye
Zero-emission tug operations
Sanmar Shipyards' ElectRA tugs use ABB's liquid-cooled ACS880 drives to achieve zero emissions and eliminate 5,000 tonnes CO₂ annually across three vessels – equivalent to removing 1,000 cars from roads.
Sweden
Innovative e-bunker concept with Seafjord Energy
ABB partnered with Seafjord Energy to develop an e-bunker vessel concept featuring ABB Dynafin™ propulsion and Onboard DC Grid™ systems, that can be charged through a shore connection or draw energy directly from a wind farm, utilizing ABB’s charging system. The e-bunker ship will charge other ships at sea, delivering up to 50 megawatts of power.
China
COSCO efficiency enhancement
ABB's shaft generator systems on ten COSCO container vessels deliver 17 percent better fuel economy and a 20 percent footprint reduction while ensuring EEXI and CII compliance.
Working together to outrun leaner and cleaner
As global trade continues to evolve, the cargo shipping industry stands at the forefront of innovation and resilience. With technological advancements in electrification, automation, and digitalization ABB enables the cargo shipping industry - a key enabler of global trade, to outrun leaner and cleaner.