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Cargo Owners make the first move

Our guest this week, Geraud Pellat de Villedon, Head of CSR for the supply chain at Michelin, joins us to bring a new perspective on the shipping industry. Michelin, the French  tire manufacturer,  is one of the largest shippers worldwide, transporting 240,000 TEUs per year. This company has been a leader in innovating ways to be greener since they introduced their green tire technology in the early 90s. Now, they are delving even deeper and making their supply chain environmentally friendly as well. 

Michelin is part of Cargo Owners for Zero Emission Vessels (coZEV), which is a coalition of companies that seeks to accelerate maritime shipping decarbonization. However, unlike other companies within the coalition, Michelin refuses to wait for shipping companies to propose a solution and has instead sought out low carbon transportation for their cargo. 

Michelin, among a group of 12 European cargo owners, has made a call to bid for a tender to move 1,000 TEUs weekly from Europe to the US on wind-powered vessels that reduce CO2 emissions by 50%. The selected shipping company would fulfill these requirements under the most optimal combination of lead times, carbon dioxide emissions reductions, and cost. 

Yet a key question remains: why have they chosen to harness the wind instead of opting for low carbon fuels? 

Tune in for this episode as we discuss Michelin’s motive for taking such an initiative and how corporate social responsibility fits into the supply chain.