In terms of energy consumption, shipping also compares very favourably with other transport modes. However, the recent rapid increase in oil price has meant that fuel costs now account for up to 50% of operating costs in some sectors and trades. Shipowners therefore have a strong incentive to reduce their fuel consumption, but the industry has also made efforts to increase fuel efficiency as a way of reducing shipping's environmental impact. Continuing developments in engine, hull and propeller design and the use of larger ships have been helping to deliver greater efficiencies in fuel oil consumption, with commensurate reductions in air pollution, CO2 emissions and overall energy consumption.
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