ONE: Sustainable shipping beyond alternative fuel
Publication Type
Case
Publication Date
11-2025
Abstract
This role play case study explores a key global issue – the decarbonisation of shipping. In April 2025, Reiko Sim, an executive in Ocean Network Express (ONE), a Japan-based global shipping company with headquarters in Singapore, tried to convince her client to use UCOME (a biofuel) for its shipping needs. ONE has designed digital solutions like the Eco Calculator and alternative fuel solutions like ONE Leaf+ to help its customers make sustainable shipping choices. However convincing clients to make such choices was like pitching vegetables to nursery kids, relevant, but not necessarily what they wanted. Reiko knew that costs were often the main detriment for clients when adopting alternative fuel solutions. ONE had also invested in 12 13,000 TEU methanol dual-fuelled vessels in 2024 and made significant investments in retrofitting many of its existing vessels to accommodate alternative fuels such as ammonia and methanol. These efforts formed part of several broader strategies aimed at achieving Net-Zero emissions by 2050.
Reiko wondered if early successes could provide the required momentum for ONE’s sustainability journey. How could companies like ONE accelerate decarbonisation efforts while remaining competitive in the shipping industry?
This case helps students understand (1) the strategic dilemmas and challenges faced by a shipping companies amidst heavy investments, slowly evolving regulations, and huge dependence on supporting infrastructure and cross-country agreements (2) innovation dilemma of alternative fuels (cost versus benefits) (3) and how digital solutions can drive innovation diffusion in sustainable shipping.
Keyword(s)
Diffusion of Innovation, Alternative Fuel vehicle, Cost Benefit Analysis, Environmental Sustainability, Shipping Industry
Discipline
Operations and Supply Chain Management | Strategic Management Policy
Research Areas
Strategy and Organisation
Data Source
Field Research
Industry
Shipping industry
Geographic Coverage
Singapore
Temporal Coverage
2025
Education Level
Executive Education; Postgraduate; Undergraduate
Publisher
Singapore Management University
Case ID
SMU-25-0031
Additional URL
https://ccx-shop.smu.edu.sg/products/one-sustainable-shipping-beyond-alternative-fuel?variant=43822513651754
Comments
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