Japan's Big Three Shipowners Back Standardised CO2 Carrier as South Korea Revives Crude Freight Subsidies

## Japan's Major Shipowners Unite Behind Standardised CO2 Carrier Design Japan's three largest shipowners — NYK Line, Mitsui O.S.K. Lines (MOL) and Kawasaki Kisen Kaisha (K Line) — have joined forces with the country's leading shipbuilders to develop a standardised 42,000 cubic metre liquefied CO2 (LCO2) carrier, according to Splash247. The collaborative effort involves Mitsubishi Shipbuilding and Nihon Shipyard, signalling a coordinated national push to establish Japan as a key player in the emerging carbon capture and storage (CCS) shipping sector. The move comes as Tokyo anticipates a significant ramp-up in demand for CO2 transport infrastructure, driven by government-backed CCS initiatives and international decarbonisation commitments. By standardising vessel design at the 42,000 cu m capacity mark, the consortium aims to reduce construction costs, streamline regulatory approvals and accelerate fleet deployment timelines — critical factors in making CCS logistics commercially viable at scale. The LCO2 carrier segment remains nascent but is attracting growing investment across Asia and Europe as industrial emitters seek compliant pathways to meet net-zero targets. Japan's coordinated approach, bringing together both the shipowning and shipbuilding communities under a unified design standard, positions the country to capture early-mover advantage in what analysts expect to become a substantial new shipping sub-sector over the coming decade. --- ## South Korea Revives Long-Haul Crude Freight Subsidies to Sustain Tanker Demand In a separate development with significant implications for tanker markets, South Korea's Ministry of Trade, Industry and Energy has announced the revival of freight subsidies for long-haul crude oil imports sourced from outside the Middle East, Splash247 reports. The policy reversal is designed to lock in the supply diversification Seoul achieved following the outbreak of conflict involving Iran, which prompted South Korean refiners to broaden their crude sourcing to more distant origins — including the Americas and Africa. Longer voyage distances translate directly into greater tonne-mile demand, a key metric for tanker earnings. By reinstating financial support for non-Middle Eastern crude freight costs, Seoul is effectively incentivising refiners to maintain diversified supply chains rather than reverting to shorter, cheaper Middle Eastern routes as geopolitical conditions evolve. For the tanker market, the measure is expected to provide a sustained boost to tonne-mile demand, particularly benefiting very large crude carriers (VLCCs) operating on long-haul routes. The subsidy revival underscores how energy security considerations are increasingly shaping national shipping policies across Asia, with direct knock-on effects for global tanker supply and demand dynamics. --- *Sources: Splash247*