PROFILE Kasper Karlsen

Svitzer Global COO

Shipping has always faced great uncertainty due to the industry sitting at the centre of international trade, financial markets, energy markets and geopolitics.

In recent years the market has been especially turbulent, thanks to the lingering effects of Covid-19, global conflict and a challenging global economy.

The industry is also undergoing a seismic shift towards a more sustainable future, which requires an overhaul of operations and will have a knock-on effect on commerciality for organisations across the sector.

The green transition is also expected to take on new urgency for shipping, as the industry awaits the International Maritime Organization’s revised strategy for reducing emissions in July.

Tug and towage providers are particularly vulnerable to changing market forces and trends, dealing acutely with the challenges faced by the whole of the shipping industry – such as higher fuel costs, decarbonisation, and a slowing global economy.

However, towage also faces a whole host of other, unique challenges. Operators must balance delivering their essential service in the supply chain with forging strong partnerships in the ports where they operate and meeting growing customer demand for sustainable options.

These customers – be they vessel owners, operators or charterers – are also faced with the varying challenges and forces within the changing maritime industry, and thus need their towage partners to change with them. Embarking on a transformation journey to better align with the priorities of the wider industry and deliver more sustainable towage services will therefore be critical for operators to thrive amid the turbulent market conditions they face.

Operating in a commoditised market

Competition is fierce in the towage market and has been for some years. Traditional towage has in many ways become a commodity, with any operator able to underbid prices to win customers, but at the risk that they cannot deliver the business on a sustainable basis.

This is also taking place against the backdrop of rising inflation and fuel costs, and a race to the bottom on pricing can increase operational risks, lower environmental accountability and standards and put jobs in danger.

The result of a commoditised market can be to disrupt the towage service entirely, with service providers finding their resources are stretched.

With a window to make a port call that can be limited for a range of potential reasons, and very clear penalties if this window is missed, cargo owners and vessel operators are often