Survey reveals Singapore SMEs hesitant to pay more for sustainable shipping

SINGAPORE: A recent survey by DHL, published by the Singapore Business Review, has revealed that nearly half (45%) of small and medium-sized enterprises (SMEs) in Singapore are only “slightly willing” to pay more for sustainable shipping options.

This figure is part of a broader sustainability survey that highlights the reluctance among local SMEs to invest in eco-friendly logistics despite growing concerns about climate change.

The survey, which involved 5,437 SME decision-makers from 11 countries, found that only 23% of Singaporean SMEs are “extremely willing” or “very willing” to pay a premium for sustainable shipping—below the global average of 29%.

In contrast, a majority of respondents (77%) expressed that sustainability is “extremely important” or “very important” to their business operations, signalling a recognition of the need for greener practices.

DHL’s findings come at a time when the Maritime and Port Authority (MPA) of Singapore is ramping up its own sustainability efforts.

A recent Safety4Sea article noted that starting Jan 1, 2025, the MPA will implement revised incentives under the Maritime Sector Green Initiative (MSGI) aimed at reducing the carbon footprint of Singapore-registered ships.

The updated program enhances the Green Ship Programme (GSP) and aligns with the International Maritime Organization’s (IMO) targets for reaching net-zero greenhouse gas emissions from international shipping by 2050.

These developments underscore a growing push for sustainable practices across sectors, including shipping, as businesses navigate the complexities of adopting greener technologies while balancing financial considerations.