đź•’ Last updated on August 26, 2025
Shipping moves 90% of global trade but emits only 3% of carbon. Still, new carbon costs and rules are pressuring Taiwan’s carriers—Evergreen, Yang Ming, and Wan Hai to cut emissions and upgrade fleets. With EU surcharges already applied and the IMO planning charges of up to USD 380 per ton by 2027, older ships risk soaring costs. To stay competitive, they must invest in cleaner fuels, efficient technologies, and new vessels.
Fleets upgraded with dual-fuel and energy-efficient ships
One of the biggest strategies is replacing aging vessels with modern dual-fuel ships that can run on both traditional fuels and cleaner alternatives such as liquefied natural gas (LNG) or methanol.
Wan Hai Lines has already phased out older ships and introduced 23 energy-efficient vessels. This change cut the company’s annual carbon emissions by 17% in 2023 compared to 2022. From its 2008 baseline, emissions are down by almost half. The company has also announced plans to purchase four massive methanol dual-fuel container ships, each able to carry 16,000 standard containers (TEU). Over the next five years, Wan Hai plans to add 34 more new vessels.
Yang Ming Marine is making similar moves. In 2023, it signed contracts to build five LNG dual-fuel container ships with a capacity of 15,500 TEU each. These ships will enter service in 2026. The company also secured orders for seven more LNG dual-fuel ships and six methanol dual-fuel ships, aiming to replace vessels that are over 20 years old. Yang Ming announced three more methanol-ready ships in July 2024, expanding its clean fleet.
Evergreen Marine is making the largest investments among the three. It purchased 24 methanol dual-fuel container ships and six smaller dual-fuel vessels in 2023 alone. By early 2024, Evergreen expanded further with an order for eleven ultra-large LNG dual-fuel ships, each able to carry 24,000 TEU. The total value of Evergreen’s fleet renewal exceeds TWD 100 billion.
The shift toward dual-fuel and energy-efficient ships is not only about compliance. Newer vessels consume less fuel, produce fewer emissions, and prepare the companies for stricter carbon charges in the coming years.
Alternative fuels gain traction despite tough competition
Cleaner ships alone are not enough. The second big obstacle in this green transformation is fuel. To reduce reliance on high-polluting heavy fuel oil, Taiwan’s carriers are turning to biofuels and methanol.
The first biofuel trial was conducted by Yang Ming in South Korea. The test used B30 fuel, a mix of 30% biofuel made from waste cooking oil and 70% regular fuel. The results showed a 25% cut in greenhouse gas emissions compared with normal marine fuel.
Wan Hai has taken things a step further by implementing biofuels throughout its whole fleet. Its first biofuel-powered vessel, WAN HAI 510, began operating on the Far East–India route in October 2024. By mixing low-sulfur fuel oil with recycled cooking oil, this biofuel helps reduce emissions by around 20%.
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International sustainability standards-certified biofuels have also been embraced by Evergreen. Since 2023, it has been testing blended biofuels across different ship types and routes. To prepare for the arrival of its new methanol-powered ships, Evergreen has signed agreements with five methanol suppliers and is negotiating with four more. These deals are meant to secure supply in Europe, the U.S., and Asia, ensuring future operations are not delayed by shortages.
However, the challenge is not just about cost. There is growing competition with the aviation industry, which is already struggling to secure enough sustainable aviation fuel. As shipping begins demanding more biofuels after 2027, the competition with airlines for limited supplies may push prices even higher.
The situation has made it clear that while Taiwan’s shipping majors are investing heavily in clean fuels and new fleets, they will also need reliable fuel supply chains. The balance between cost, supply, and cleaner technology is becoming the deciding factor in how quickly the industry can cut emissions.
Regulations make cost control and cleaner fuels unavoidable
Global shipping is heading into what experts are calling a high-cost era. There is a lot of pressure to move away from heavy fuel oil and toward cleaner options because there are more than 50,000 cargo ships in operation worldwide.
The European Union and IMO measures are forcing ship owners to pay directly for their carbon emissions. The EU ETS has already started applying costs for carriers in 2024, while the IMO’s plan is expected to add even higher costs by 2027.
To handle these changes, Taiwan’s Ministry of Transportation has pointed to three main approaches: building new dual-fuel ships, improving efficiency through measures like slow steaming, and offsetting emissions with carbon credits or taxes.
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For Evergreen, Yang Ming, and Wan Hai, adopting these approaches is no longer optional. Phasing out old ships, securing new fuel sources, and cutting emissions are all becoming necessary steps to stay competitive in global trade.
While the shipping industry may only account for a small portion of global emissions, the cost pressures and new regulations are pushing Taiwan’s leading carriers to act quickly. Their investments in new fleets and alternative fuels are setting the stage for a cleaner, but more expensive, future for global shipping.