German duo bands together to accelerate iron ore transport decarbonization

German dry bulk carrier owner and operator Oldendorff Carriersand compatriot Salzgitter Flachstahl GmbH, an arm of steel and technology company Salzgitter,have partnered up to advance decarbonization efforts in the sphere of iron ore transport.

Specifically, according to Oldendorff, the two players have entered into a long-term agreement to slash carbon dioxide (CO2) emissions in the maritime transport of iron ore as part of Salzgitter’s vision to decarbonize the steel supply chain.

As explained, commencing from January next year, Oldendorff is to move iron ore for Salzgitter from a number of loading ports to Hamburg using bulk carriers that have been equipped with technologies aimed at achieving better fuel efficiency.

With the ‘improvement’ of cargo flows as well as routing, officials from Oldendorff said that the partnership could cut down on carbon dioxide emissions by at least 20%, without incurring additional costs for Salzgitter. This could, in turn, enable the latter player to accomplish cost savings, too.

In terms of the emission reduction potential, the more precise estimates are that the collaboration could cut around 19,000 tonnes of CO2e, representing the lowering of Scope 1 emissions