ΝΑΥΠΗΓΩΝΤΑΣ ΤΟ ΜΕΛΛΟΝ -SHIPBUILDING THE FUTURE

Συνταγή επιτυχίας

MIΛΟΥΝ

Containers, Hellaschart

ENGLISH VERSION

177-290

SHIPPING 2024

SHIPBUILDING THE FUTURE

100

Alex Froley

LNG, ICIS

102

Director

LPG Desk

Arrow Shipbroking Group

104 Μαρία

Signal Ocean

112

Πάνος

MARine TEChnical Managers Association - MARTECMA, Technical Director Sea Traders SA

114 Πάνος

Technical Director, Atlantic Bulk Carriers Management Ltd

116

Δρ

Finance Director

118

120

Carras (Hellas) S.A.

124

ICT Manager of Unisea/ Secretary of AMMITEC BoD

126

Global Maritime Commercial Director, Lloyd's Register

128

130

Digital Transformation, Navios Group, Member of the BoD, AMMITEC

132

Chief Operating Officer Latsco Marine Management INC

134

136

Decarbonization Director, DNV

Decarbonization Expert, DNV Maritime

138

145

148

172

122

Technical Director SEEBA Zone Bureau Veritas

του άρρηκτου δεσμού της χώρας μας με τη θάλασσα και τη ναυτιλία. Η φετινή διοργάνωση,

Emanuele

ολοκληρωθεί

που

επικρατούν σήμερα είναι ιδιάζουσες. Η άμεση

προσαρμογή σε απρόβλεπτες καταστάσεις

αποτελεί απαραίτητο

χαρακτηριστικό εύρυθμης ναυτιλιακής επιχείρησης. Οι επιθέσεις στην Ερυθρά Θάλασσα, ο COVID, η διατάραξη

του θαλάσσιου εμπορίου της Ουκρανίας, η μείωση του βυθίσματος της Διώρυγας του

Ο μόνος τομέας στον

οποίο κυριαρχεί αβεβαιότητα είναι τα

μελλοντικά καύσιμα, στο επίκεντρο των οποίων βρίσκονται η

αμμωνία, η μεθανόλη, το υδρογόνο.

Ωστόσο, κανένα από αυτά

Intercargo

μεθανόλη και 8 θα είναι αμμωνίας διπλού καυσίμου (DF). Όσον αφορά την απορρόφηση εναλλακτικών καυσίμων, κατά τη διάρκεια του 2023

καταγράφηκαν περίπου 539 παραγγελίες

νέων

καυσίμων, που

αντιπροσωπεύουν το 45% όλων των παραγγελιών από άποψης χωρητικότητας, με το 83% της χωρητικότητας των νέων κατασκευών πλοίων μεταφοράς εμπορευματοκιβωτίων να έχει παραγγελθεί φέτος (αυξάνεται στο 94% εάν συμπεριληφθούν οι παραγγελίες για «έτοιμα»), ενώ το 79% των πλοίων

MARPOL (Διεθνής Σύμβαση για την

της Ρύπανσης από Πλοία), καθώς

προσπάθειες για

επίτευξη αυτής της φιλοδοξίας. Η INTERCARGO συνεχίζει να αντιμετωπίζει

Η προσπάθεια για ναυτιλία με μηδενικές εκπομπές

Η ναυτιλιακή βιομηχανία είναι περισσότε-

από ποτέ έτοιμη να εναγκαλιστεί τις νέες τεχνολογίες και τα νέα «πράσινα» καύσιμα, υπό

προϋπόθεση ότι αυτά θα είναι ασφαλή και ευρέως διαθέσιμα. Σημαντική πρόοδος έχει

σημειωθεί

με το καθένα από αυτά να παίζει σημαντικό ρόλο για την ευθυγράμ-

Έλπη

Πρόεδρος, WISTA International Αντιπρόεδρος Β',

Ένωσης

Ναυτιλίας

Αποστάσεων

Chartering, Operations & Business Development Manager, ENEA Management

πραγματικότητα είναι

αυτές οι

και

πολλαπλές δημοσιεύσεις, αναρτήσεις και συζητήσεις φαίνεται να έχουν μάλλον αντίθετα

ο

Τεριακίδης, Area Manager East Mediterranean and Black Sea στον DNV.

επόμενα

από την εξέλιξη της τεχνολογίας και την υιοθέτηση των ψηφιακών «εργαλείων» στα πλοία.

Αυτό τόνισε μιλώντας στο συνέδριο ο Δημήτρης Θεοδοσίου, συνιδρυτής και Γενικός Διευθυντής της Danaos Management Consultants

S.A.

Όπως είπε, η Γενετική Τεχνητή Νοημοσύνη (generative AI) θα φέρει σημαντικές αλλαγές στο λειτουργικό

Generation Z: Η

DIANA SHIPPING

EURODRY

Okeanis Eco Tankers,

ΝΑΥΤΙΛΙΑΚΗ

(collusion) σημαίνει δύο πράγματα: α) «συνδιασκέψεις» (conferences) τακτικών δρομολογιακών γραμμών

(global shipping alliances-GSA) που

3PL (Third Party Logistics),

NVOCC (Non Vessel Owning Common Carriers).

DHL,

Kuehne + Nagel

Σουέζ [Διαδρομή

(περίπλους της

Ακρωτη-

- Διαδρομή Βό-

Θάλασσας (Αρκτική) - IMEC (Διάδρομος Ινδία-Μέση Ανατολή-Ευρώπη) - χερσαία γέφυρα Ευρασίας].

 Διώρυγα του Παναμά (Διώρυγα του Σουέζχερσαία γέφυρα της Βόρειας Αμερικής- Διώρυγα της Νικαράγουας (παραμένει στις καλένδες) - PILA (Puerto Internacional Las Americas, Κολομβία).

 Στενό της Μάλακα (Διώρυγα Kra, Ταϊλάνδη).

Η Διώρυγα

Walt Disney, Marry Poppins: ...A British bank is run with precision. A British home requires nothing less. Tradition, discipline, and rules must be the tools; without them: disorder, catastrophe, anarchy, in short, you have a ghastly mess...).

στους BRICS τον Αύγουστο του 2023 (με ισχύ από την 1η Ιανουαρίου 2024), ο κόσμος ήλπιζε ότι ένα είδος προσέγγισης μεταξύ των

δύο αντιπάλων ήταν στον ορίζοντα, μετά τη μεσολάβηση της Κίνας, που είναι ο μεγαλύτερος αγοραστής πετρελαίου της Σαουδικής Αραβίας. Δυστυχώς, στη συνάντηση του Ντα-

(multimodal)

(βλ. παρακάτω). Απλά εδώ, το ασιατικό

φορτίο εκφορτώνεται

Λος

Άντζελες, Λονγκ Μπιτς, Όκλαντ, Σιάτλ, Ταχόμα

και Βανκούβερ (στον

συνδυασμένων μεταφορών στους φορτωτές της ECNA, έναντι των τιμών της θαλάσσιας (all-sea) διαδρομής (δηλαδή μέσω Παναμά). Επιπλέον, και σε ό,τι μας αφορά, σκέφτηκε η διοίκηση της APL, η χρήση ομοιόμορφου μεγέθους πλοίων (δεν

υπήρχαν περιορισμοί μεγέθους εκείνη την εποχή για τις διελεύσεις από το Σουέζ) είναι ένα πολύτιμο επιχειρησιακό

Το

(coopetition)

(Munim and Haralambides,

Wan et al, 2020- Wang et al, 2021- Ma et al, 2021- Li et al, 2022). Εν ολίγοις,

την ισορροπία μεταξύ περιβαλλοντικής βιωσιμότητας και οικονομικής ανάπτυξης.

Στενό της Μάλακα Το Στενό της Μάλακα είναι ένας από τους σημαντικότερους και συνεπώς πιο πολυσύχναστους υδάτινους δρόμους στον κόσμο, από αρχαιοτάτων χρόνων, εξυπηρετώντας το εμπόριο Ανατολής - Δύσης (Διάγραμμα 9). Περίπου 80 χιλιάδες εμπορικά πλοία

συχνότητα ευθύνεται για ατυχήματα, ρύπανση και

Αναφορές

Al-Yadomi, H. (1991). The strategic importance of the Bab al-Mandab Strait. US Army War College, Pennsylvania, April 9th. <https://apps.dtic.mil/sti/pdfs/ADA236804.pdf>.

Coase, R.H. (1937). The nature of the firm. Economica, Vol. 4, issue 16, Nov. 1937, pp. 386-405.

Fusillo, M. and H.E. Haralambides (2020). Do carrier expectations indicate industry structure in container shipping? An econometric analysis. Journal of Shipping and Trade doi:10.1186/s41072-019-0057-2.

Haralambides, H.E. (2019). Gigantism in container shipping, ports and global logistics: a time-lapse into the future. Maritime Economics & Logistics, 21(1), pp. 1-60. 61.

Haralambides, Η.Ε. and Οlaf Merk (2020). The Belt and Road Initiative: Impacts on Global Maritime trade flows. International Transport Forum Discussion Papers, No. 2020/02, OECD Publishing, Paris. ITF (2024). The Red Sea Crisis: Impacts on global shipping and the case for international cooperation. Background Paper, International Transport Forum, Paris. Ju, H., Qingcheng Zeng, Hercules Haralambides and Yimeng Li (2023). An investigation into the forces shaping the evolution of global shipping alliances. Maritime Policy & Management, DOI: 10.1080/03088839.2023.2180549. Ju, H., Qingcheng Zeng and Hercules Haralambides (2024). Consequences of freight rate volatility in liner shipping and the role of strategic alliances. Ocean & Coastal Management, Volume 252, <https://doi. org/10.1016/j.ocecoaman.2024.107129>.

Kent, P. and Hercules Haralambides (2022). A perfect storm or an imperfect supply chain? The U.S. supply chain crisis. Maritime Economics & Logistics (2022). <https:// doi.org/10.1057/s41278-022-00221-1>.

Khan, K.H., Iman Bastanifar, Ali Omidi, Zainab Khan (2024). Integrating gravity models and network analysis in logistical strategic planning: A case of the India MiddleEast Europe Economic Corridor (IMEEC). Maritime Economics & Logistics (forthcoming).

Li, S., Hercules Haralambides and Qingcheng Zeng (2022). Economic forces shaping the evolution of integrated port systems - The case of the container port system of China's Pearl River Delta. Research in Transportation Economics, 2022, <https://doi. org/10.1016/j.retrec.2022.101183>.

Ma, Q., P. Jia, X. She, Hercules Haralambides, Haibo Kuang. (2021). Port Integration and Regional Economic Development: Lessons from China, Transport Policy, 110 (2021) 430-439, https://doi.org/10.1016/j. tranpol.2021.06.019.

Martin, S. (1993). Advanced Industrial Economics, Blackwell.

Munim Z.H. and Hercules Haralambides (2018). Competition and cooperation in intermodal container transshipment: A network optimization approach. Research in Transportation Business & Management, Vol 26, pp. 87-99, doi.org/10.1016/j.rtbm.2018.03.004.

Notteboom, T., Hercules Haralambides and Kevin Cullinane (2024). The Red Sea Crisis: ramifications for vessel operations, shipping networks, and maritime supply chains. Maritime Economics & Logistics, <https://doi. org/10.1057/s41278-024-00287-z>.

Reuters (2024). Saudi Arabia has not yet joined BRICs - Saudi Minister, Davos meeting, January 16th, 2024. <https://www.reuters.com/world/saudi-arabia-has-not-yetjoined-brics-minister-2024-01-16/>.

Wan, S., Weixin Luan, Yu Ma and Hercules Haralambides (2020). On determining the hinterlands of China's foreign trade container ports. Journal of Transport Geography, Volume 85: May 2020. doi: <https://doi. org/10.1016/j.jtrangeo.2020.102725> .

Wang, C., Hercules Haralambides and Le Zhang (2021). Sustainable port development: the role of Chinese seaports in the 21st century Maritime Silk Road. Int. J. Shipping and Transport Logistics, Vol. 13, Nos. 1/2, 2021. Abdul Rahman, N.S.F., N.H. Mohd Salleh, A.F Ahmad Najib (2016). A descriptive method for analysing the Kra Canal decision on maritime business patterns in Malaysia. J. shipp. trd. 1, 13 (2016). <https://doi.org/10.1186/ s41072-016-0016-0>.

στην κορυφή της παγκόσμιας ναυτιλίας τις πέντε τελευταίες δεκαετίες, με χωρητικότητα που σταθερά αυξάνεται. Μια

σειρά από παράγοντες, που μπορούν να αναζητηθούν τόσο στο εσωτερικό περιβάλλον (ναυτιλιακή επιχειρηματικότητα, επενδυτικές στρατηγικές, εξειδίκευση στόλου, τεχνογνωσία διαχείρισης πλοίων, ποιοτικό ανθρώπινο δυναμικό, οργάνωση, οικογενειακός χαρακτήρας επιχειρήσεων) όσο και στο εξωτερικό

κενό της ανοικτής θάλασσας μπορεί επ’ άπειρον να συμβάλλει

σε μια αρμοδιότητα που απαιτεί την ενέρ-

γεια, σύμπραξη ή συναίνεση του κράτους

της σημαίας, ενώ υπό συνθήκες επείγουσας κατάστασης θα μπορούσε να λαμβάνεται προληπτική πολιτική.

Έλευθερία των θαλασσών

Υπάρχει ευχέρεια στα κράτη να επινοήσουν

πρακτικής νέους μηχανισμούς απο-

Director

Οι επιθέσεις αυτές έθεσαν

κίνδυνο τις ζωές των ναυτικών, την ασφάλεια της ναυσιπλοΐας, αλλά και την ευρύτε-

σταθερότητα της Ερυθράς Θάλασσας, η οποία αποτελεί τη συντομότερη διαδρομή για τη μεταφορά προϊόντων από την Άπω Ανατολή προς την Ευρώπη και το αντίστροφο,

μεταβάλλοντας την ισορροπία

δυνάμεων στην κρίσιμη σε παγκόσμιο επίπεδο

σκακιέρα, οι μετακινήσεις αυτές διαμορφώνουν τον Διεθνή

Καταμερισμό Εργασίας στη Ναυτιλία. Ο τελευταίος σπάνια

παραμένει σταθερός

για μεγάλο διάστημα, καθώς ορίζεται από τη χωρητικότητα -και για μεγαλύτερη ακρίβεια από τη συνολική μεταφορική ικανότητα σε

Roar

Adland

Global Head of Research, SSY

Adam Kent

2024: Μια χρονιά αναταραχών και ευκαιριών

atsimplakis@naftemporiki.gr

CONTAINERSHIPS ΔΕΞΑΜΕΝΟΠΛΟΙΑ

LNG CARRIERS BULK CARRIERS

LPG CARRIERS

CAR CARRIERS - 2024

GAS CARRIERS

TANKERS - 2024

CONTAINERSHIPS - 2024

Πρωτιά για τα tankers και στο παγκόσμιο orderbook

αυτού,

να πλη-

EU Allowances - EUAs) για τις ποσότητες αερίων του θερμοκηπίου

Παράλληλα, με την ένταξη της ναυτιλίας στο EU ETS, ο ναυτιλιακός κλάδος εντάσσεται και

κυρίως από τα υποθηκευμένα πλοία. Οι απρόβλεπτες γεωπολιτικές εξελίξεις

στη Μέση Ανατολή καθώς και στην Ουκρα-

νία συνήθως ευνοούν τη ναυτιλιακή βιομη-

χανία. Οι τράπεζες όμως αντιμετωπίζουν μία

νέα κρίσιμη συνθήκη, αυτήν της ασφάλειας

των χρηματοδοτούμενων πλοίων.

Στις αρχές Μαΐου 2020, το υπουργείο

Εξωτερικών των ΗΠΑ, το Γραφείο Ελέγχου

Ξένων Περιουσιακών Στοιχείων (OFAC)

του υπουργείου Οικονομικών των ΗΠΑ και η Ακτοφυλακή των ΗΠΑ εξέδωσαν από

Xclusiv Shipbrokers

Containers, Hellaschart

Alex

Froley

LNG, ICIS

«Βullish» οι προοπτικές

(Very Large Ammonia Carriers).

των LPG carriers και ιδιαίτερα των VLGCs να λειτουργεί με υψηλές

χωρητικότητες. Την

ίδια ώρα, τα σχετικά χαμηλά βιβλία παραγγελιών θα συνεισφέρουν στη σφιχτή προσφορά

πλοίων σε σχέση με

τον αναμενόμενο όγκο του εμπορίου LPG διά θαλάσσης. Παράλληλα, ιδιαίτερη δυναμική παρουσιάζουν τους τελευταίους μήνες τα πλοία μεταφοράς αμμωνίας, καθώς καταγράφονται πολυάριθμα συμβόλαια ναυπήγησης VLACs (Very Large Ammonia Carriers). Σύμφωνα

ορίου

Στον

Πρόεδρος MARine

TEChnical Managers

Association - MARTECMA

Technical Director Sea Traders SA

πλοία μεταφέρουν το 90% του

παγκόσμιου εμπορίου και ευθύνονται για το 2,5% των παγκόσμιων εκπομπών διοξειδί-

ου του άνθρακα. Σε

αντίθεση με άλλες

βιομηχανίες,

ραδιενεργά

προτιμότερα από το

διοξείδιο του άνθρακα; Ακόμα και οι αντιδραστήρες υγροποιημένων αλάτων Molten

Salt Reactors (MSR), που θεωρούνται πολύ ασφαλείς, δημιουργούν ραδιενεργά από-

βλητα με χρόνο ζωής πολλούς αιώνες και

ολέθριες συνέπειες αν καταλήξουν στο πε-

ριβάλλον. Θα ήταν καταστροφικό να προχωρήσουμε με γενικευμένη χρήση πυρηνικών

αντιδραστήρων υποτιμώντας τις περιβαλλο-

ντικές επιπτώσεις των αποβλήτων

Ζαχαριάδης Technical Director, Atlantic Bulk Carriers Management Ltd

Δυστυχώς, ούτε

τίποτα» (switching to LNG is worse than doing nothing).

Φυσικά και αισθάνομαι δικαιωμένος όταν πριν

από οκτώ χρόνια μόνος

ανέφερα αυτά που

έβλεπα στις επιστημονικές μελέτες.

Οι νομοθέτες όμως, IMO και Ευρωπαϊκή Ένωση, δεν θέλουν να «σκοτώσουν» το LNG ως καύσιμο για τα πλοία, διότι απλά δεν υπάρχουν

(1) «Climate consequences of hydrogen emissions», Ilissa B. Ocko and Steven P. Hamburg, Environmental Defense Fund, New York, NY, USA, Atmospheric Chemistry and Physics, 22, 93499368, 20 July 2022, https://doi.org/10.5194/ acp-22-9349-2022

(2) P. Forster, T. Storelvmo, K. Armour, W. Collins, J. L. Dufresne, D. Frame, D. J. Lunt, T. Mauritsen, M. D. Palmer, M. Watanabe, M. Wild, H. Zhang: The Earth's energy budget, climate feedbacks, and climate sensitivity, in: Climate Change 2021: The Physical Science Basis, Contribution of Working Group I to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change, Cambridge University Press, 923-1054, 2021. https://www.ipcc.ch/report/ar6/wg1/ (last access: 11 July 2022)

(3) Atmospheric implications of increased Hydrogen use, Nicola Warwick, Paul Griffiths, James Keeble, Alexander Archibald, John Pyle, University of Cambridge and NCAS and Keith Shine, University of Reading, April 2022.

Finance Director της Carras (Hellas) S.A.

Μάνθος

Μαχαίρας

Αντιπρόεδρος AMMITEC, the Association of Maritime Managers in Information Technology and Communications Chief Information Officer Metrostar Management

ή καθόλου ανάγκη για

ανθρώπινη παρέμβαση.



τις λειτουργίες του

όλες

πλοίου.

Αυτονομία βαθμού 4:

την υιοθέτηση

ενός μη υποχρεωτικού κώδικα MASS μέχρι

το 2025 και ενός υποχρεωτικού κώδικα MASS βασισμένου σε στόχους το 2028, θέτοντας παράλληλα σαφείς ορισμούς και

νομικό πλαίσιο για τη λειτουργία των Α.Π. Η

σαφώς θεσμοθετημένη υιοθέτηση των Α.Π.,

παρά τις προκλήσεις που υπάρχουν, έχει τη

δυνατότητα να μεταμορφώσει τη ναυτιλιακή

βιομηχανία προς όφελος όλων και να φέρει

πλήθος ορατών και

American Bureau of Shipping (ABS)

Veritas

του

ή υγροποίηση, με

απορρόφηση ενέργειας. Μύθος: Η τεχνολογία υδρογόνου είναι

ICT Manager of Unisea/ Secretary of AMMITEC BoD

συμπεριλαμβανομένου και ειδικευμένου, πλήρους απασχόλησης προσωπικού κυβερνοασφάλειας (Full-Time Equivalent-FTE)

ανάλογα με το μέγεθος και την πολυπλοκότητα του οργανισμού.  Ανάπτυξη και Διαχείριση Προγράμματος Ασφάλειας Πληροφοριών: Ο ISM είναι υπεύθυνος για την ανάπτυξη και την υλοποίηση ενός ολοκληρωμένου προγράμματος κυβερνοασφάλειας, ευθυγραμμισμένου με τους κανονισμούς και

Hκαι τη συνεχή ανατροφοδότηση, ώστε να εξαλειφθούν τυχόν δυσκολίες και να διαμορφωθεί μια σειρά λύσεων που θα βελτιώσουν το περιβαλλοντικό αποτύπωμα του

υπάρχοντος στόλου. Μεταξύ των λύσεων

που βρίσκονται στο τραπέζι είναι οι τεχνολογίες εξοικονόμησης ενέργειας (ESDs/ESTs), με το 31% των πλοίων σε λειτουργία να τις χρησιμοποιούν.

Ταυτόχρονα, καινοτόμες εφαρμογές περιορισμού των αέριων ρύπων, όπως τεχνολογίες δέσμευσης και αποθήκευσης άνθρακα (CCS),

P&P Marine Consultants,

Panel M48 «Nuclear Power in Commercial Shipping»

πολύ σοβαρή συ-

για το αν οι πυ-

αντιδραστήρες

σε

κατασκευές

από αυτές που χρησιμοποιούνται για τις υπεράκτιες

Κατερίνα Ραπτάκη

Digital Transformation, Cyber Security and e-Governance specialist, Navios Group of Companies, Member of the BoD, AMMITEC

προσώπου.

 Διαρκής βελτίωση: Οι εταιρείες τεχνολογίας πρέπει να συνεχίσουν να εργάζονται για τη βελτίωση της ακρίβειας της τεχνολογί-

ας αναγνώρισης προσώπου.

 Διαφανής χρήση: Οι αρχές και οι λιμενικές εταιρείες

Αντώνης

Γεωργαντζής

Chief Operating Officer

Latsco Marine Management INC

ματα απευθύνονται

αποκλειστικά

τις ναυτιλιακές

για πράγματα τα οποία

εκτός του άμεσου

και κυρίως ισχυρή δέσμευ-

ση από την ηγεσία του κάθε οργανισμού. Συνεπώς, θα πρέπει συνολικά να αλλά-

ξει ο τρόπος σκέψης και λειτουργίας του

ανθρώπινου παράγοντα, από το να αντιδρά (reactive) σε ό,τι συμβεί, προς υψηλότερα

επίπεδα πρόληψης (proactive), προς το σύνολο των λειτουργιών του πλοίου αλλά και

του οργανισμού, προς όλους δηλαδή τους τομείς όπου τα αποτελέσματα δείχνουν ότι

είναι αναγκαίο.

πειραμάτων

επικεντρώνονται

δέσμευση άνθρακα

του σκάφους και

χρήση υδρογονωμένου φυτικού ελαίου ως εναλλακτική λύση

για τα παραδοσιακά

καύσιμα.

Η νορβηγική ναυτιλιακή εταιρεία Aasen

Shipping είναι ένα εξαιρετικό παράδειγμα

όπου τα προληπτικά

μέτρα που λαμβάνονται

σήμερα μπορούν να μειώσουν σημαντικά τις εκπομπές. Η

συγκεκριμένη εταιρεία

έχει βελτιστοποιήσει τη

σχεδίαση

Global

Regional Decarbonization Expert, DNV

λαμβάνει υπόψη όχι μόνο τη χρήση του καυσίμου πάνω στο πλοίο, αλλά

και τις άλλες φάσεις ζωής του (εξόρυξη, παραγωγή, μεταφορά), δηλαδή την παραγωγή του.

Σε παγκόσμιο

με άλλους, όπως οι κινητήρες αμμωνίας, να βρίσκονται υπό δοκιμή και

διάθεση στην αγορά τα επόμενα χρόνια.

Υπάρχουν τεχνικές προκλήσεις, αλλά αυτές θα αντιμετωπιστούν μέσω δοκιμών εν πλω

που τροφοδοτούνται με μη συμβατικά

καύσιμα (εξαιρουμένων των LNG carriers),

με το LNG ως καύσιμο (24%) να οδηγεί την

κούρσα και τη μεθανόλη (14%) να έπεται.

Τους πρώτους τρεις μήνες του 2024 παραδόθηκαν 68 νεότευκτα πλοία με εναλλακτικά

καύσιμα, αυξημένα κατά 54% σε σχέση με

τα 44 που παραγγέλθηκαν πέρυσι την ίδια

περίοδο. Ο εν λειτουργία στόλος LNG έχει

υπερδιπλασιαστεί από το 2021, ενώ η ταχέως

αναπτυσσόμενη μεθανόλη δείχνει ότι θα

μπορούσε να ακολουθήσει αντίστοιχη πορεία

τα επόμενα πέντε χρόνια. Ο στόλος αμμωνίας

αρχίζει επίσης να αναπτύσσεται με δύο νέες

παραγγελίες τον Μάρτιο, επιπλέον των τριών

παραγγελιών που έγιναν τον Ιανουάριο και τον Φεβρουάριο. Κλείνοντας, να πούμε ότι η πορεία προς

Κωνσταντίνος

(International Bunker Industry Association - IBIA)

(Global Center for Maritime Decarbonisation). Από

αλλά πρέπει

να συνεργαστεί και να αφήσει πίσω της απαρχαιωμένες πρακτικές που εμποδίζουν την πρόοδο. Χρειαζόμαστε εμπιστοσύνη, νέες τεχνολογίες, ανταλλαγή γνώσεων με δομημένο τρόπο, επίγνωση του τι σημαίνει να μη συμμορφώνεσαι. Η συνεργασία είναι

ο βασικός επιταχυντής. Κανείς δεν σκέφτηκε

θα

ήταν κάτι λιγότερο από μια από τις μεγαλύτερες προκλήσεις για τον πολιτισμό μας. Ωστόσο, όλοι μας χρειάζεται να δράσουμε

συντονισμένα και να χρησιμοποιήσουμε όλα

τα διαθέσιμα μέσα εφευρετικότητας για να το

κάνουμε πραγματικότητα. Συμπερασματικά, η βιομηχανία της ναυτιλίας και τροφοδοσίας καυσίμων/θαλάσσιας

ενέργειας διερευνά όλες τις επιλογές, συμμετέχει σε συζητήσεις ρυθμιστικών αρχών και

προγράμματα Ε&Α, βελτιστοποιεί την απόδοση του στόλου, εστιάζει στην εκπαίδευση του πληρώματος,

ώστε να μπο-

εταιρείες

ΝΕΕΣ

Straddle Carriers.

ΣΗΜΑΙΝΩΝ ΚΟΜΒΟΣ

Ο

ΑΛΛΑΓΗ ΠΟΡΕΙΑΣ

ΔΡΟΜΟΛΟΓΙΟ

Hεπιβατών ανά πλοίο. Έτσι σε

άφιξη του 2023 αντιστοιχούν 1.339

έναντι των 969 το 2022 και 1.164 επιβατών ανά πλοίο το 2011.

Για το 2024 και

παρά τις δυσμενείς συγκυρίες στην ευρύτερη

περιοχή της Ανατολικής Μεσογείου και

την Ερυθρά Θάλασσα, προβλέπεται περαιτέρω ανάπτυξη της κρουαζιέρας στην Ελλάδα, με αύξηση σε ποσοστό περίπου

Τα οικονομικά οφέ-

λη είναι ήδη φανερά: Το 2022, η κρουαζιέρα στην Ελλάδα υποστήριξε περισσότερες από

14.300 θέσεις εργασίας και συνεισέφερε

συνολικά €1,4 δισ. στην οικονομία της χώρας. Η

συνεισφορά της κρουαζιέρας στην ελληνική οικονομία προήλθε από

τέσσερις βασικές δραστηριότητες: προμήθειες

•Die Welt, Die Zeit, Frankfurter Allgemeine, Handelsblatt (Γερμανία) • The Guardian, Financial Times (Βρετανία) • The Mayo News (Ιρλανδία)

• De Volkskrant, Trouw, Het Parool (Ολλανδία) • El Periodico de Catalunya (Ισπανία) • Basler Zeitung (Ελβετία)

• Tageblatt (Λουξεμβούργο) • ARA (Ισπανία) • De Tijd, De Morgen (Βέλγιο) • Publico, Expresso (Πορτογαλία) • Politiken (Δανία)

ILDINGTHEFUTURE

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A recipe for success

For almost 15 years, unanticipated events and elements of chance have primarily driven developments in the global maritime industry. Indeed, similar occurrences have also played a crucial role in the shipping equation in earlier decades. Over the years, numerous other variables have surfaced, beginning with the unexpected global financial crisis of 2010.

Dozens of shipping companies from Europe and Asia went bankrupt, including several of significant size. Against this backdrop, Greek shipping emerged as a clear winner, managing to withstand pressures and maintain its position as the industry leader worldwide.

There have been several other challenges along the way. Piracy, armed conflicts and, of course, the new regulations for the green transition of shipping, all of which put further strain on the maritime community to adjust to new realities.

Among the toughest challenges has undoubtedly been the Covid-19 pandemic. Nonetheless, cargo arrived on schedule because of shipping firms and seafarers' determination. Despite extremely tough circumstances that were admittedly unprecedented, they managed to keep the earth rotating. However, everything comes with a price, and sailors found themselves confined on ships for over 18 months.

In the past three to four years, we've also seen new rules on shipping decarbonisation, as well as violent conflicts in Ukraine and the Middle East that disrupted traffic in the Suez Canal, in addition to the drought in one of the world’s busiest ship crossings, the Panama Canal.

Throughout the same period and until the middle of 2023, Greek shipyards kept a wait-and-see attitude. Sale and purchase activity dominated the market, while the uncertainty surrounding green fuels led to a decline in new shipbuilding.

However, shipping to Greeks is akin to a marathon race, requiring them to make crucial decisions regarding the future of their companies.

Greek shipowners have primarily driven the skyrocketing new shipbuilding activity recorded in the last 14 months by placing large orders for new vessels of all types. Their orderbook comprises more than 500 newbuilds, currently keeping Asian yards bustling.

Greek shippers are expected to keep up their newbuild appetite, each with their own unique recipe, which is part of the reason for Greek shipping's success.

Antonis Tsimplakis

Melina Travlos

President, Union of Greek Shipowners 204

Yiannis Prokopiou CEO Centrofin Management 230

Yiannis Dragnis CEO of Goldenport Group 266

Dimitri Frank Sarakakis CEO of Ionic shipping company 284

Panos Xenokostas

President and CEO, ONEX Group

Shipowners stress need for training, Greek flag upgrade

208 Listed companies on sustainable journey

Christos Stylianidis

Minister of Maritime Affairs & Insular Policy 188

Emanuele Grimaldi

Chairman of the International Chamber of Shipping

Dr. George D. Pateras

President, Hellenic Chamber of Shipping; Deputy Chairman, Contships Management Inc. 192

Haralambos Fafalios

Chairman, Greek Shipping Cooperation Committee

194

Dimitrios Fafalios Chairman, Intercargo 196

Charalambos Simantonis President, Hellenic Shortsea Shipowners Association (HSSA) 198

Elpi Petraki President WISTA International; Second Vice President, HSSA

Leonidas DimitriadesEugenides

President, Eugenides Foundation; Goodwill Ambassador, IMO Greece 228

Adam Kent

Managing Director, Maritime Strategies International

George Xiradakis President, Association of Banking & Financial Executives of Hellenic Shipping 250

Dimitris Roumeliotis Research Analyst, Xclusiv Shipbrokers

Eirini Diamantara Research Analyst, Xclusiv Shipbrokers Inc.

Georgios P. Bassakos Sale and Purchase, Containers, Hellaschart

Alex Froley Senior LNG analyst, ICIS

Maria Bertzeletou Market Analyst, Signal Ocean

270

Panos Kourkountis President, MARine TEChnical Managers Association (MARTECMA); Technical Director, Sea Traders SA 272

Angelos Minakis Manager, Business Development, ABS 274

Dr. John Kokarakis

Technical Director, SEEBA Zone Bureau Veritas 276

George Skrimizeas

Managing Director Caliber Maritime SA

278

Harilaos Petrakakos Founder and Senior Consultant to P&P Marine Consultants and Chairman of Panel M48

282

Constantinos Capetanakis

IBIA Chair Bunker Director at Starbulk

280

Spyridon Zolotas

South EMEA Senior Director, RINA

288

Capt. George Koumbenas President, Union of Cruise Ship Owners & Associated Members

290

Christos Triantafyllidis Director, Greek LPG Desk, Arrow Shipbroking Group 260

Maria Deligianni

Regional Director, Eastern Mediterranean, CLIA

Greece's role in international shipping

Our nation leads the way, as it should, in the work being done in international and European institutions with the goal of addressing the current issues encountered by the industry and transforming them into opportunities

Christos Stylianidis

Minister of Maritime Affairs & Insular Policy

The global shipping industry is facing both challenges and opportunities. The international economic environment and geopolitical developments have both had an impact on maritime transport. In the face of these problems, Greek shipping has once again adjusted to these difficulties and maintained its leadership role, delivering high-quality services with a renewed fleet that uses cuttingedge management procedures. The Greek government's shipping policy serves to bolster the favorable prospects for Greek shipping that are created by the country's excellent fleet and high degree of know-how and experience. It is widely acknowledged that the size and dynamism of Greek merchant shipping are due to its international competitiveness, which is based on our maritime tradition and sound entrepreneurship, as well as a system of maritime work, education, and training that fully meets international standards and developments. At the same time, the stability of the maritime institutional framework, combined with the promotion of streamlined administrative procedures and a welcoming business environment, have made our nation -and Piraeus in particular- a hub for the attraction and growth of maritime enterprises throughout Greece's maritime network.

Our nation leads the way, as it should, in the work being done in international and European institutions with the goal of addressing the current issues encountered by the industry and transforming them into opportunities. In terms of environmental challenges, I'd like to point out that the Greek government prioritizes the sustainable development of the maritime transport sector as well as environmental conservation. It is our responsibility to leave a better future for the next generations, not merely a sustainable one. Our country wants to maintain the seamless contribution of shipping to the global

and national economies through targeted and documented initiatives in the IMO and the EU, ensuring that the sector's decarbonisation path is carried out in an ambitious yet practical manner. It goes without saying that one of our top priorities for the upcoming years is to promote green shipping. To that end, we have launched a number of specific initiatives pertaining to: developing a more comprehensive plan and funding mechanism for the renewal of passenger ships and minimising their environmental impact; greening and energy-transforming our ports, with a focus on electrifying docked ships (cold-ironing). As per our agreement with the Ministry of Environment and Energy, twelve (12) Greek ports will supply electricity to vessels by 2030; and, utilizing EU funding and instruments, such as public-private sector partnerships, to replace the outdated coastal shipping fleet with new, environmentallyfriendly vessels. At the same time, Greece declared its involvement in the international Clean Energy Marine Hubs initiative, which aims to build a cooperative framework that would bring together the entire marine fuel chain, producers, and shipowners.

The initiative's objective is to enable the production, transportation, and use of lowcarbon fuels on a worldwide scale.

In terms of geostrategic considerations, Greece has taken the lead in combating attacks on ships in the Red Sea, with the goal of preserving freedom of navigation. Greece's dominant role in shipping imposes responsibilities, which we assumed by our participation in the EU defensive maritime security operation EUNAVFOR ASPIDES. It is also critical that the Operational Commander is Greek, as the Operational Headquarters are based in Larissa, Greece. These confirm Greece's enhanced geopolitical significance as a source of stability and security in the Eastern Mediterranean.

The Ministry of Maritime Affairs and Insular Policy is contributing to the country's digital transformation through the use of new technologies and digitization, which revolutionize the way people work and interact in both the private and public sectors. In cooperation with the Ministry of Digital Governance, a variety of process digitisation and streamlining initiatives are being conducted in a wide range of areas of our expertise, including policing and maritime surveillance, maritime training and work, and our register of shipping. In addition, Greece views its seafarers as human resources and the most valuable asset of the shipping industry, having the largest marine workforce in the EU relative to its population. Lifelong training, as well as continuing reskilling and up-skilling, are deemed vital to respond to ongoing technology advances and modern industry requirements. Competent seafarers with advanced skills are necessary for ship operation that is both safe and environmentally-friendly. For this reason, we have designated the current biennium as "Naval Education Years 2024-2025".

In this regard, the holding of the POSIDONIA 2024 International Shipping Exhibition serves as another affirmation of our country's inextricable link to the sea and shipping. This year's event, organized by the Ministry of Maritime Affairs and Insular Policy together with the entire Greek shipping community, will highlight the technological and practical possibilities that will propel shipping forward into the future. At the same time, the large number of major exhibitors and high-ranking guests from all over the world will demonstrate Greece's importance and long-standing leadership role in global shipping. As has been the case for more than 40 years, Greece, Shipping, and Posidonia will continue travelling hand in hand in the new era of shipping!

Greek shippers lead green transition

The president of the Union of Greek Shipowners, Melina Travlos, speaks to "N" about the geopolitical challenges facing the sector, Greek shipping's domestic and global footprint, measures to decarbonise the sector and the need to entice young people to the maritime profession

By Antonis Tsimplakis atsimplakis@naftemporiki.gr

Speaking during an interview with Naftemporiki, Melina Travlos, president of the Greek Union of Shipowners, elaborated on Greek shipping's economic and social impact on both the domestic and international landscapes.

Greek shipowners are leading the way in the sector's green transition on a global scale, as well as in the Greek economy, and their social contribution is now larger than ever.

"Greek shipowners are constantly investing in new, higher energy-efficient ships, which incorporate a multitude of solutions on the level of high-tech environmental equipment. Our fleet is already the world's largest in terms of its capacity to use existing alternative fuels", Mrs Travlos said.

Expounding on maritime education and training, the President of the Union of Greek Shipowners stressed the importance of maritime education.

"Greek shipping has always been a helper of the state in any substantial effort to upgrade maritime education, but it is also a strict judge when fragmentary, non-constructive actions are observed in this field".

In recent years, an increasing number of shipping companies have become interested in land-based businesses. "We are a powerful economic and social

In shipping, because we are the connecting link between peoples across the globe, the sector is highly sensitive to crises and, indeed, geopolitical conflicts.

partner for our country. Many members of the Greek shipping community also invest in other business areas, such as new technology, real estate, and tourism, to contribute to Greece's economic development. This proves our sector's unambiguous financial and investment contribution."

In Posidonia 2022, the global community, shipping, and particularly seafarers were just coming through the painful period of the pandemic. Today, the shipping industry faces a number of major fresh problems, particularly with regard to the armed conflicts in Ukraine and the Middle East. In what way do these developments impact the shipping industry?

Shipping brings people from all over the world together; therefore, crises and geopolitics of this magnitude have a significant impact on the industry. Especially when they result in restrictions on freedom of navigation or attacks on commercial ships, as we are currently experiencing. For all of us, the safety of our people at sea is of utmost importance. Ensuring unrestricted navigation is also a fundamental prerequisite for smooth operation, marine trade, and the protection of the world's population.

At the same time, we have demonstrated over time that shipping, particularly Greek shipping,

adapts quickly and efficiently to the reality of each period, as we are determined to keep providing our services dependably, under any circumstances. As a result, over time, shipping has proven to be the solution to even the worst emergencies and crises. As you correctly pointed out, during the global and unprecedented crisis of the Covid-19 pandemic, when the entire world came to a standstill, ships continued to transport essential goods, medicines, and health equipment around the world, contributing significantly not only to living but also to humanity's survival.

Another major issue facing shipping in recent years has been the industry's green transition. As you've said before, the shipping community requires solutions that are both comprehensive and viable, without jeopardising navigation safety. Has there been a response to this?

Universal, practicable solutions are more than just a message sent out by the shipping community; they are the very essence of shipping. I believe that the sector's unique traits, particularly those related to its green transition, are becoming increasingly comprehensible. This fact adds significantly to the development of the strategy that we must follow in the coming years on this matter. First and foremost, we now have a clear and shared target for our energy transition, as well as a vision of where we should be in 25 to 30 years. It is highly advantageous that our member states in the International Maritime Organisation have pledged to achieve net zero greenhouse gas emissions from shipping by the middle of the century (2050). The worldwide

community must now establish the means that will make this ambitious, but potentially achievable, goal a reality. As a result, not only has the message been received, but we, the Greek shipping community and the international shipping community, are actively working to develop realistic suggestions to achieve our shared goal of ensuring shipping sustainability on a sustainable planet.

At the same time, Greek shippers are heavily investing in ships with environmentally friendly features or using alternative fuels. Many companies are also carrying out programmes focusing on green fuels and alternative technologies. In other words, Greek shipping is putting its commitment into action. Do other links in the chain keep pace with Greek shipping?

It is true that Greek shipping is at the forefront of the industry's green transition. Greek shipowners consistently invest in new, energy-efficient vessels equipped with advanced environmental technology

solutions. It is worth emphasising that our fleet is already the world's largest in terms of its capacity to use existing alternative fuels. However, we need to underline that we will remain technologically neutral in terms of the new, low- or zero-emissions alternative fuels that will be used by our future ships.

With regard to the existing fleet, alternative fuels that are compatible -drop-in fuels- with the ships' existing engines are required. Our fleet's energy efficiency will also improve as new technology solutions, such as carbon capture systems, are implemented. In any event, new technologies, particularly alternative fuels, must meet three requirements in order to effectively contribute to our industry's energy transformation. First, they must be globally available at scale. Secondly, they must be inexpensive, which means gradually and as much as possible reducing the price disparity between alternative fuels and conventional fossil fuels. Thirdly, and most significantly, they should be safe for our ships, but even more so for our

workers at sea, in addition to contributing to environmental preservation. All of this, of course, necessitates the prompt mobilisation and action of other shipping-related sectors, including fuel producers and suppliers, shipyards, and engine and shipping equipment manufacturers. For our part, we are prepared to practically support innovative technologies that fit these three requirements, as demonstrated by our consistent investments to date.

I'd like to enquire about the institutional framework for shipping at regional and international levels. In my opinion, shipping justifies its advocacy for a global institutional framework to control its international activity on an equal competition platform. Many bodies and organisations, including the EU, accuse the IMO of taking too long to enact new rules. This has led to the inclusion of shipping in the European system of trading pollution allowances, known as the EU EST. However, as demonstrated by the new carbon intensity index (CII) regulation, promoting rules solely for political reasons may lead to oversights. Is it possible to attain the required balance, and if so, how?

Technologically, we take a wait-and-see approach to the new alternative fuels that will finally win the race to low- or net-zero.

Your enquiry addresses a variety of topics, with the common denominator being the serious threat posed by the multitude of regional initiatives. You correctly emphasise the urgent need for realistic global policies that take into consideration shipping's operational needs for the benefit of civil society.

The solution, as I have underlined in every direction, is for the IMO to control concerns relating to global shipping in general. In particular, when it comes to our sector's energy transition, we understand the significance of acting quickly while taking appropriate and efficient measures. In this regard, we act as UGS and collaborate with other national shipping associations via the International Chamber of Shipping (ICS).

However, we must recognise the critical role of shipping in order to strike the appropriate balance between the various legislative efforts. The European Union should prioritise the enhancement of the European fleet's global competitiveness.

Melina Travlos: Greek shipowners consistently invest in new, energy-efficient vessels equipped with advanced environmental technology solutions.

«Maritime education must be transformed»

As president of the Union of Greek Shipowners, you have demonstrated a strong interest in attracting and training young people for the maritime profession. At the institutional level, we have yet to see an effect. What actions do you think are necessary in this area?

Our historical strength and leadership intrinsically relate to our seamanship. Our staff, both at sea and on shore, is the driving force behind our operations. As a result, we require a consistent annual influx of fresh students and graduates from naval colleges to staff the ships, as well as our shore-based offices. Greek shipping has always been a strong supporter of government efforts to improve naval education, but it has also been a harsh critic of fragmentary, nonconstructive measures in this area.

It is a highly complex task to attract young people to shipping, and we must adapt maritime education to meet modern demands. Furthermore, it is critical to provide ongoing training to current human resources in accordance with the requirements of the sector's energy and digital transition. As a result, the issues are complex and intertwined, necessitating a comprehensive and modern strategic plan of action, and the UGS is working in that direction.

You've also focused on Greek shippers' social responsibility. In addition to the 100+ scholarships established by the UGS last year, the Union has also made available funds for dealing with natural calamities, as well as health, education, and other needs of the community. Greek shipping's social contribution is now stronger and more obvious than ever. Is this an area of concern that you've decided to focus on as an association?

Social solidarity was and remains a timeless, continuous, and unbroken bond between the Greek shipping and Greek community. For hundreds of years, we have jointly and individually upheld our goal, "Shipping and Society Always Together". It is

We

want all Greek women and men to fully understand the power of Greek shipping's contribution, and be proud of it.

true that in recent years, our diverse contribution to Greek society has grown stronger. Our shared goal and commitment is to contribute directly and effectively to national programmes and actions that benefit as many people as possible over the long term. At the same time, as a corporate sector that has historically been linked to national welfare, we must honour our past by continuing to open and lead the way to the common good, listening to society's needs, and, most importantly, helping our youth, our future.

It goes without saying that Greek shipowners established the world's largest ship management centre in Greece. The expansion of the shipping services sector has a multiplier effect on the Greek economy, both directly and indirectly, due to the expansion of the shipping services sector. Another beneficial economic consequence of shipping is land-based investment, the so-called "sea funds". It is not an exaggeration to claim that today, such shipping funds have been invested almost everywhere. Can you expound on this trend?

Starting with the second issue, I believe that the contribution made by Greek shipowners to the national economy represents the opposite side of our intimate relationship with our country. We are the country's valuable economic and social partner. As with social solidarity efforts, many members of the Greek shipping community invest

capital in other essential commercial areas, such as innovative technology, real estate, and tourism, thus contributing to Greece's economic progress. As a result, you can say that our sector makes a wideranging economic and investment contribution. In terms of shipping-related industries, there has been tremendous improvement in a variety of areas, including shipbuilding recovery. At the same time, we must acknowledge that there is still much scope and opportunity that we must capitalise on, working together with the Greek fleet, the larger shipping cluster, and the state, so that the Port of Piraeus can be upgraded in all fields and emerge as the world's leading shipping centre, worthy of the leading nature of our shipping.

Finally, I left a question as a follow-up to a previous discussion we had a few months ago. Suppose that Greek shipping truly does contribute to so many areas as described herein. Do you believe that the average Greek family is aware of this?

In Greek shipping, we are all about actions, not words. In today's ever-changing world, we are proud of what we have accomplished, as well as what we accomplish on a daily basis, both collectively and individually. We wish that the power of shipping reaches every Greek family so that we may honour, preserve, and develop it as a maritime nation.

We, the Union of Greek Shipowners, strive to raise awareness of our economic and social footprint, both in our home country and around the world. We want all Greek women and men to understand the power of what shipping offers, and to be proud of our one-of-a-kind global success storey with a Greek soul, identity, history, and contribution: the Greeks' seafarer and pioneering shipping industry!

The Greek shipping is a long-standing helper of the State in any substantial attempt to upgrade the maritime education, stresses Melina Travlos, USG president, pictured above with students from Merchant Navy Academies (AEN).

Emanuele Grimaldi Chairman of the International Chamber of Shipping

Catalysing Progress: A Call to Action for Global Maritime Sustainability

The ZESF proposed by the ICS offers a comprehensive solution to expedite the transition to cleaner fuels and technologies, providing clear incentives to support the development of sustainable practices.

In the ever-changing landscape of global trade, the shipping industry stands as a vital conduit, facilitating the movement of goods and commodities across the world's oceans.

The past few years in shipping have been turbulent. Our industry resolutely worked through the Covid-19 pandemic, delivering essential trade and medical aid across the world all while battling crew change issues and new and complex regulations.

More recently problems have arisen in key bottleneck areas of trade, with historic drought greatly reducing the Panama Canal traffic, and attacks on Red Sea shipping forcing a 66% decline in Suez Canal traffic. We continue to face a dangerously elevated level of risk to ships in the Red Sea and the Gulf, with innocent seafarers being killed and held hostage simply for doing their jobs.

Yet despite this very full plate, the industry has remained keenly focused on the biggest issue on our horizon - decarbonisation.

This issue looms large in all shipowners, seafarers and regulators minds as we know that the maritime industry stands at a pivotal juncture in its history.

As Chairman of the International Chamber of Shipping and a shipowner I acknowledge the magnitude of the task at hand, and have started to address this urgent issue. I have personally invested close to USD $1.6billion for 17 ammonia ready car carriers and I am upgrading my fleet to meet the International Maritime Organizations decarbonisation targets.

Ambitious targets

The new fund ZESF provides incentives for innovation and investment in sustainable systems, driving progress towards the IMO's decarbonisation goals.

In 2023 the International Maritime Organisation (IMO) revised its greenhouse gas strategy and laid out a bold vision for the industry. With the aim of achieving net-zero greenhouse gas emissions by or around 2050, and with indicative checkpoints in 2030 and 2040, the IMO's strategy represents a crucial framework for action. Central to this strategy is the need to transition to cleaner fuels and technologies. However, achieving this transition requires more than just lofty goals; it demands concrete action and robust mechanisms for implementation. This is where the new Zero Emission Shipping Fund (ZESF) proposal enters the picture.

The Zero Emission Shipping Fund

Proposed by the ICS, in collaboration with the Commonwealth of The Bahamas and Republic of Liberia (two of the world's largest Flag State administrations, measured in gross tonnage), the ZESF offers a comprehensive solution to expedite the transition to cleaner fuels and technologies.

At its core, the fund operates on a fundand-reward, 'feebate' basis providing clear incentives to support the development of sustainable practices. A practical element

of the ZESF mechanism is the low administrative cost - the data needed to verify the amount of fuel consumed by ships is already collected for the IMO Fuel Oil Data Collection System.

Addressing the cost-gap

The ZESF aims to provide certainty and guidance to the industry, supporting a clear path towards decarbonisation. By narrowing the cost gap between conventional and cleaner fuels for shipowners, the fund accelerates the transition to a low-carbon future while ensuring that no nation disproportionately bears the financial burden.

Moreover, the ZESF incentivises innovation and investment in sustainable systems, driving progress towards the IMO's decarbonisation goals. It recognises that the transition to cleaner fuels and technologies will require significant investments in research, development, and importantly infrastructure.

Infrastructure

In addition to bridging the cost of fossil fuels and the new zero emission fuels the fund would also be reinvested into supporting the creation of infrastructure in developing economies. This includes funding for infrastructure development, particularly in Least Developed Countries (LDCs) and Small Island Developing States (SIDS), to facilitate the to the supply of cleaner fuels and technologies for shipping.

Through the fund, developing nations have the chance to invest in smart and sustainable ports which could potentially become hotspots for regional bunkering and refuelling. The ZESF recognises that decarbonisation is not solely an environmental imperative but also an economic and social one. It acknowledges the interconnectedness of the energy and maritime industries and the need for collaboration between these sectors. This collaboration is essential to building the infrastructure necessary for transporting low- and zero-emission fuels from producers to users.

Shipping's key role in decarbonisation

The urgency of the climate crisis demands swift action. With a deadline of 2050 fast-approaching on the horizon, there is no time to waste. A GHG pricing mechanism can be adopted by 2025 and enter into force by 2027 to provide the industry with the certainty and guidance needed to achieve its decarbonisation goals. The global transition to new low and zero-GHG fuels from renewable sources will need full cooperation from the shipping industry to be effective. We are

responsible not only for reducing our emissions, but also for the transportation of the new fuels from producers to consumers.

Currently, the shipping industry is responsible for 36% of liquid fuel trade The International Renewable Energy Agency (IRENA), predicts that the maritime sector is expected to transport at least 50% of new alternative fuels worldwide. Shipowners have an opportunity to ensure that the shipping industry has the same access to these net zero fuels at the earliest possible time.

International decarbonisation plans must include provisions for the maritime industry, ensuring the same access to net zero carbon fuels that the sector will be transporting.

The ICS Fuelling the Fourth Propulsion Revolution report outlined that the world's renewable energy generation would need to double just to meet the shipping industry's fuel requirements alone.

Ensuring green supply chains

To meet the growing demand for low carbon fuels worldwide, it is crucial to produce these fuels where they can be readily available in strategic areas. In particular, hubs should be built close to ports for efficient global distribution, similar to how fossil fuels are currently transported.

The Clean Energy Marine Hubs (CEMHubs) is a cross-sectoral and public-private partnership initiative under the Clean Energy Ministerial that aims to create the infrastructure that forges this link between production and consumption.

CEM-Hubs will enable the shipping industry to work with governments to facilitate that supply chains for clean energy. This presents an economic opportunity to develop infrastructure that will soon become central within the wider shipping ecosystem.

I am particularly pleased that the Greek government has agreed to join the initiative recognising the important role that the countries shipping sector plays in transporting fuels around the world. Emerging economies will also have an opportunity to transition into producers and exporters of net zero carbon fuels to meet the demand from Europe, Asia and North America.

The Fuelling the Fourth Propulsion report highlights that countries with plentiful solar and wind options in Africa and Latin America could benefit from a 20% reduction in the costs of production of net zero carbon fuels. Hubs in the Middle East that currently focus on fossil fuel production could also adapt quickly to new fuels due to their excellent wind conditions and high solar radiation.

Ultimately, a more diversified demand

and supply base supported by a flexible shipping network is more robust, setting the industry up for years to come on the journey towards Net Zero. Developing these hubs in near-coast locations, ideally close to ports, will streamline the bunkering process and further bolster shoreside development.

Putting people first There is also the human element of shipping, across the world there are approximately 2 million seafarers, with some projections suggesting that up to 800,000 will need upskilling training to deal with alternative fuel sources. With the ZESF, the money contributed into the fund via ships' fuel consumption would also be available to support the costs of this increased training for the all important human infrastructure. Seafarers will play a pivotal role in decarbonisation, and it is essential that the we recognise that any solution to the climate emergency begins with people. At COP26 in Glasgow, the ICS, IMO, the International Transport Workers' Federation, the United

Nations Global Compact, and the International Labour Organization launched the Maritime Just Transition Task Force to ensure that the a light was shone on the need to support our people in the green transition highlighting the need for governments to prioritise seafaring when planning their investments in training..

The Just Transition Task Force aims to unite governments, maritime workers' unions, and the shipping industry to pursue a fair and equitable green transition in shipping.

An industry united Collective action is required to truly make a meaningful impact on the health of our planet and the sustainability of our industry. Shipowners, industry leaders, and policy makers alike must embrace the principles of collaboration and innovation and seize this opportunity to chart a course towards an even more sustainable, robust and resilient maritime sector.

Up to 800,000 seafarers, out of a world total of 2.0 mln, will need upskilling training to be able to work with alternative fuel sources.

The maritime community’s prime event

Posidonia offers a two-way promotion option: exhibitors and Greek shipping. The event serves as a motivator, encouraging us to increase our efforts in business growth and the improvement of ship and management operations

Dr. George D. Pateras President, Hellenic Chamber of Shipping; Deputy Chairman, Contships Management Inc.

The biennial POSEIDONIA

maritime event is a watershed moment for the shipping community and, more broadly, for all marine subsectors. It provides an opportunity to reflect on the past, appraise present conditions, and plan for the future.

Commercial shipping has had a significant contribution to the advancement of society and the growth of peoples’ living standards worldwide. The safe, timely, and economical flow of products has played a divisive role in contributing to the expansion of globalization.

Shipping's social responsibility also leaves an environmental footprint. The number of marine accidents and incidents involving ship pollution has significantly dropped despite the expansion of the worldwide fleet. At the same time, pollutant emissions have been reduced thanks to the installation of desulfurizers, better fuels, the application of best machine operation practices, and ballast management.

Decarbonization will take longer than anticipated and will involve collaboration between scientists, equipment and technology makers, fuel providers, distribution networks, and funding sources. When it comes to implementing solutions for the application of IMO decisions and ESG regulations, shipping -particularly Greek shipping- is setting the standard.

With regard to regulations, Moore

Our presence at this year's Posidonia will be staffed by students from the Hydra Merchant Marine Academy, Europe's oldest maritime school.

Greece was hired by the Hellenic Chamber of Shipping (NEE) to compile the ESG Guidelines, which are now available on our website (nee.gr) and have been distributed to all ship management businesses based in Greece.

The NEE's program to renew the coastal fleet advances in tandem with other decarbonization-related sectors and technological advancements. We hope that this collaboration will be useful so that they can mature together, i.e., when realistic solutions have been determined and the regulatory and financial frameworks have been completed.

Currently, conditions are unique. A quick response to unanticipated events is essential to a successful shipping company. Recent events that were hard to forecast include the Red Sea attacks, Covid-19, the interruption of Ukraine's maritime trade, the drought in the Panama Canal, the sanctions imposed on Russia, the bridge accident in Baltimore, and the introduction of the EU ETS.

The Hellenic Chamber of Shipping is increasingly concerned about the shortage of seafarers as a result of the younger generation's reluctance to pursue maritime occupations. We are in the process of organizing a campaign to attract marine professionals, and we hope to achieve favorable outcomes by utilizing modern communication tools. Our presence at this year's Posidonia is centered on this topic, and as with past exhibitions, it will be staffed by students from the Hydra Merchant Marine Academy, Europe's oldest

maritime school.

A noteworthy characteristic of this year's Posidonia is the significant increase in the number of participating Greek companies producing ship equipment, particularly innovative technology. This development enhances our shipping capabilities, promotes Greece, and boosts the country’s national economy. The parallel revival of the country’s shipbuilding and ship repair industries complements our maritime cluster, which was previously dominated by ocean liner shipping.

Additionally, we observe increased activity in the service industries, such as freight brokerage, insurance, technical consultation, supply, etc.

Changes in fleet rankings according to country of registration and management are frequently reported in the media. Changes brought about by globalization have also affected this sector, leading to a considerable discrepancy in analysts' estimates. In addition to fleet size, criteria such as average tonnage, proportion of different types of ships, and quality (average age, ranking in port state control, etc.) are more essential than ship count and gross tonnage. The use of the ships for domestic (cabotage) or international voyages is another important factor to consider. The NEE is looking into this, and I believe we will have some data soon.

Posidonia offers a two-way promotion option: exhibitors and Greek shipping. The event serves as a motivator, encouraging us to step up our efforts in business development, and the improvement of ships and management operations. Posidonia builds ties with foreign partners, paves the way for partnerships, and while the large number of activities may be exhausting for some participants, attending the next Posidonia event in 2026 is undoubted.

Greek shipping is not resting on its laurels

The confidence of Greek companies to enter ever more sophisticated ship types is a result of the high level of education and training that offices and crews possess in order to master these new vessels

Fafalios Chairman, Greek Shipping Co-operation Committee

As Posidonia 2024 dawns upon us we can yet again appreciate the position that Greece holds in world shipping. Organizations and individuals from around the world swarm to Greece to be part of the greatest shipping show on earth.

With every passing exhibition more and more exhibitors set up shop at the centre hoping to attract the eye of the worlds most vibrant shipping industry.

Equally, cocktails, dinners and seminars get bigger and bigger in order to accommodate the number of people globally who wish to attend the exhibition, to celebrate at the parties and to listen to what various industry leaders have to say about the burning issues of the day as well as their forecast for the future.

Greek shipping is not resting on its laurels as it expands into ever more sectors of the industry and slowly assumes a dominant position in every sector.

The confidence of Greek companies to enter ever more sophisticated ship types is a result of the high level of education and training that offices and crews possess in order to master these new vessels.

If you had said 25 years ago that Greek companies would be major LNG, LPG, container/car carrier transporters one would have had some doubts.

It is also apparent that Greek companies are no longer satisfied about owning middle age tankers and bulk carriers and now only go to the worlds top shipbuilders in order to acquire the best quality, most economical and green ships to serve the worlds future needs.

The only area where uncertainty reigns is the future fuels themselves. Whether we are talking about ammonia, methanol, or hydrogen, they are all under the spotlight. None of these fuels will satisfy our green

The only area where uncertainty reigns is the future fuels themselves. whether we are talking about ammonia, methanol, hydrogen are under the spotlight.

requirements in terms of safety, global availability and energy density.

On a well to wake basis, there are many unanswered questions and no one is brave enough to talk about what emissions these new fuels create. all we talk about is carbon reduction. All the rest is neatly brushed under the carpet.

No one is saying what risks our crews are going to take sailing on these ships with their different emissions. The dangers that could result from burning such fuels are conveniently forgotten in the quest to polish our green credentials.

However, it is Greek companies alone who are proudly ordering the ships with the best of today's low carbon technology as opposed to those promising miracles from tomorrow's fuels.

The shipping industry has progressed over the decades by espousing realism as opposed to gaining brownie points from installing incomplete new technologies which do not stand the test of time in a rough ocean or on a long sea voyage.

So, truly, Posidonia highlights the miracle of Greek shipping, and when the week is over the industry goes back to transporting over 90 per cent of the world’s commodities as the most efficient mode of transport and in the safest possible way.

Haralambos

Decarbonising the dry bulk sector, the world's largest fleet segment

Environmental excellence requires collaboration and a drastic, urgently needed acceleration in the commercial development of the required technologies fuels, propulsion systems and related infrastructure

Chairman, Intercargo

Following the turbulent pandemic years, our industry now finds itself dealing with the situation in Ukraine and recent attacks on ships in the Red Sea, the legacy of COVID-19 and of course the incorporation of IMO's greenhouse gas (GHG) reduction targets into everyday operations.

Environmental excellence requires collaboration and a drastic and urgently needed acceleration in the commercial development of the required technologies, fuels, propulsion systems and related infrastructure. It is fundamental that governments, legislative parties and all stakeholders understand that decarbonisation of the shipping sector is a challenge affecting an entire system, not only ships, while the majority of the investments needed are for land-based infrastructure and low carbon fuel production.

The dry bulk fleet has exceeded 1.0 billion DWT

The global bulker fleet has more than doubled over the past 20 years while the Greek bulker fleet grew by 1.9 times. The dry bulk sector is the world's largest fleet segment and has exceeded 1.0 billion DWT, with over 14,000 ships, including the small dry cargo vessels and with 1,344 bulkers currently on order [1]

Still, the majority of newbuilding contracts for dry cargo carriers are for conventionally fueled vessels, some with the potential to retrofit via "alternative-fuel ready" specifications. More specifically, only approximately 4% of bulk carrier new buildings are recorded as capable of using alternative fuels, 31 ships will use LNG, 17 ships methanol and 8 bulkers ammonia DF. With regard to the uptake of alternative fuels across 2023, approximately 539 newbuild orders were recorded involving alter-

The shipping industry is more than ever prepared to embrace new technologies and new green fuels provided they are safe and widely available.

native fuel capable vessels representing 45% of all orders placed by tonnage, with 83% of containership newbuild capacity ordered this year (rising to 94% including orders with "ready" status) and 79% of car carriers (98% including orders of "ready" status) being ordered with alternative fuel capability. [2]

The challenges of tramp dry bulk shipping

An important aspect to understand about the bulk carrier segment is the trading or operational model that is followed. The ships engaged in the liner model, typically containerships, often carry time-sensitive and refrigerated cargoes, and need to sail faster due to time pressure on fixed routes with fixed timetables, whereas tramping vessels are not as time-constrained with the cost per tonne being more important. Tramping shipowners tend to be asset managers with the charterer being responsible for the cargo carried, vessel speed and ports of call, whereas the owners of containerships have operational control. Furthermore, the tramp shipping model does not easily allow for operational optimization, leading to further reductions of GHG intensity.

A specific green fuel solution for a dry bulk vessel may be preferred by a charterer, but may not be accepted by another charterer who may have a preference for a different dual fuel solution as the most competitive. Tramp trade is adding more complexity in the transition of dry bulk shipping to green fuels, and tramping shipowners need to

carefully consider the optimum fuel pathway that will also ensure that ships will remain competitive.

Green ports and fuel availability

While the majority of bulk carrier owners eagerly await new fuels, as long as these fuels are safe, promptly available and permit a sustainable business model, shipping will be competing with other industries that are also trying to decarbonise, such as aviation that has stated it aspires to achieve net zero carbon by 2050.

There has been much discussion regarding the "Green Corridors" concept and, while it may be beneficial for some types of vessels, it may not be suitable for the majority of bulkers tramp trading that are not on fixed routes. Dry bulk shipping needs "green ports and green hubs."

Moreover, the most robust path for zero carbon fuels is through dual-fuel engines and systems to ensure flexibility in fuel selection, but the multifuel pathway for bulkers tramp shipping is much more challenging than other segments. Alternative drop-in fuels would be in high demand and most probably not available in sufficient quantities and locations globally, while shipping will be competing with other sectors.

Furthermore, bulkers don't receive any national subsidies and have very little political influence and limited influence on fuel suppliers.

High CarEXxof ESD technologies

On top of the aforementioned challenges, we also need to consider the high Capital Expenditure (CapEx) of Energy Saving Devices (ESD) and highlight that the cost of these technologies (i.e. wind assisted propulsion) is much higher proportionately,

Dimitrios Fafalios

versus other sectors for the bulker fleet, resulting to Return on Investment (ROI) and business cases that may not be very attractive.

Shipbuilding

capacity & designing of bulk carriers

Already, large liner orderbooks make up the greatest share of new building orders. Any increase in demand for large alternative-fuel bulk carriers could be limited due to a lack of shipbuilding capacity, and the preference of shipyards, to build higher-value vessels instead of bulkers.

Shipyards also need to develop ship designs and integrate the technology that can be practically and safely implemented onboard, and, again, the shipowner has very little influence on the yards. The design of our bulk carriers, especially the smaller-geared vessels, includes a cargo section in the front side of the engine room bulkhead where deck tanks for alternative fuels cannot be located. In addition, the deck cranes leave little room for the increased storage volumes required for alternative, low-carbon or zero-carbon fuels.

Shortage of skilled

seafarers

Most importantly, the human element and the shortage of skilled seafarers will continue to be one of the biggest challenges

Dry bulk shipowners are keen to play their part in meeting shipping's ambitious decarbonisation targets despite the significant challenges.

for most of the bulker owners and operators. Crew competence for most bulker operators (i.e. not owning LNG/ tankers, etc.) that do not have adequate crew experience with alternative fuels yet, may prove to be one of the most significant obstacles towards the decarbonisation pathway, especially as alternative fuels are becoming more complex to handle on board.

IMO instruments

affecting the operation of vessels

Our members, in common with other sectors of the industry, are facing a confusing array of conundrums of MARPOL (International Convention for the Prevention of Pollution from Ships) amendments, circulars, resolutions and guidelines, as they work to achieve this ambition.

INTERCARGO continues to address the key issues that the dry bulk industry has always faced. Through our presence at the IMO, we are able to influence industry-wide decisions and react to the impact on our sector. With some 3,300 ships of 325 million DWT, our more than 155 INTERCARGO

full members now represent about one-third of the global dry bulk fleet tonnage, thus strengthening the Association's worldwide influence. Such a strong voice enables us to build on solid foundations as we face challenges together.

Working towards zero-emission shipping

The shipping industry is more than ever prepared to embrace new technologies and new green fuels provided they are safe and widely available.

Significant progress has been made by all stakeholders in the last three years, with each playing an important alignment role for one, common decarbonisation framework.

Dry bulk ship owners are keen to play their part in meeting shipping's ambitious decarbonisation targets despite the significant challenges, and the fact that the dry bulk segment is one of the most difficult sectors to decarbonise.

At times of volatility, uncertainty and ambiguity, partnership and collaboration is fundamental.

[1] Source: Veson Nautical- Drybulk fleet analysis for Intercargo, March 2024

[2] Source: Clarksons Research - Fuelling Transition: tracking the economic impact of emission reductions & fuel changes, January 4, 2024

With some 3,300 ships of 325 million DWT, our more than 155 INTERCARGO full members now represent about onethird of the global dry bulk fleet tonnage.

Charalambos Simantonis President, Hellenic Shortsea Shipowners Association (HSSA)

Shortsea shipping: Addressing challenges with workable alternatives

Solutions must be found right away to shortsea shipping challenges created by the new environmental and technological realities, the outdated legislative regime, as well as crew shortages

In recent years, the shipping industry has been facing multiple challenges.

The European Union's strategy for the continent's climate neutrality has led to the modification and adoption of Regulations, running through the entire range of economic activities in Europe, including the shipping industry, which is called upon to go through a period of massive change at a rapid pace, but without the availability of the required tools.

The above conditions create an environment of instability and insecurity, which are factors that prevent longterm investment on which shipping is traditionally based. Undeniably, technology is developing rapidly, but in no case have the technological developments matured to the level of a viable alternative for the industry.

In recent years, with the outbreak of the Covid-19 pandemic and the outbreak of two wars in Europe's neighbourhood, the strategic importance of shipping has become clearer, ensuring the continent's energy security and contributing to avoiding a potential food crisis. But it is extremely important that in drawing up a policy towards the green transition the European Union takes into account the special characteristics of the shipping industry and promotes regulations that will not be punitive but will allow the sector to be competitive.

Shipping is a highly competitive industry, which by its very nature operates in a global context. This implies that the Regulations

To be successful, shortsea fleet renewal modernization must be accompanied with modernized legislation, as this mismatch constantly causes problems.

governing its operation cannot be determined at a regional level, but must be international so that we can discuss healthy competition. At the last meeting of the IMO, the majority of countries favoured the adoption of a global tax on carbon emissions, a proposal supported by Greece and the European Union. I am optimistic that in 2025, this proposal will be formally adopted by the IMO, so that the rules governing the operation of shipping will apply to everyone, avoiding possible market distortions.

However, apart from the environmental challenges that shipping as a whole is called upon to manage, the Greek shortsea segment is forced to operate within the framework of an antiquated legislative regime, which no political leadership has taken care to modernize to date, despite the continuous proposals by HSSA. At a time when the agenda's top issues are the modernization of the fleet and the industry's green transition --in the era of the technological revolution-- we are called upon to operate within the limits set by 1950s laws. Does anyone think that modern ships have any technological

relation to the ships of those decades? The modernization of the shortsea fleet, to be successful, must also be accompanied by the modernization of legislation, because this mismatch constantly causes problems. It is not possible to discuss the present and the future while being anchored in the past.

In particular, to understand the importance of the European shortsea fleet and its crucial role, we should refer to the latest Eurostat data, according to which the external trade of the Union is based on shipping at a rate of over 72 per cent, while at the same time, 60 per cent of the European fleet is Greek-owned. To make it even clearer, in the case of Greece, we should consider the supply of Greece's islands and the need to connect them with the mainland, which is done entirely by shortsea shipping vessels.

However, an additional problem that has grown in recent years and is now being widely and openly discussed, is crew shortage. Anyone involved in shipping knows that a large part of the global leadership of Greek shipping is based on its people: seafarers, who employed their know-how and experience to make Greek shipping dominant on the world chessboard. Today, the number of young people choosing the maritime profession is decreasing rapidly.

Consider how the organic crew compositions that the Greek registry sets as a precondition makes it impossible to hire senior officers, since, if 100 ships come today to be registered in the Greek registry, it will be impossible to find 600 Greek Officers, as foreseen by the organic crew composition.

There are already crew shortages on shortsea shipping vessels, particularly during the tourist season, since crews also staff coastal shipping.

We all have to take measures to reverse the decline in the number of our seafarers, and, fortunately, all the bodies in the sector, coordinated by the Hellenic Chamber of Shipping and with the cooperation of the Ministry of Shipping, are working on a solution and are moving in the right direction. The modernization of Merchant Marine Academies (AEN) is necessary so that the training we provide to our seafarers is modern and harmonized with today's professional imperatives. However, it is equally important to cooperate with the Ministry of Education, so that the seafarer profession may be repositioned in the framework of vocational guidance and once again be a conscious choice for our young people.

Changing attitudes takes solidarity and collective effort

The existing conditions in the labour market for women, what needs to change in the shipping industry’s employment arena, and the role of WISTA International

Elpi Petraki

President, WISTA International; Second Vice President, Hellenic Shortsea Shipowners Association; Manager, Chartering/Operations/ Business Development, ENEA Management Inc.

Women's equality efforts in the workplace have been the focus of public discourse in recent years, particularly since the pandemic. They also hold a prominent position in ESG strategies and reports, are the subject of research studies, and are frequently brought up in conversations about sustainable development and climate change in the printed and electronic press as well as on social media. The labour market for shipping is, of course, not an exception to this rule; in fact, reports on this topic may occasionally be more pronounced here because advancements in this area have been concentrated in recent decades, during which time women in other sectors enjoyed a recognisable contribution rate in companies’ results or success.

Having the honour to be President of WISTA International since 2022, I have had the chance to observe the extent to which this discourse can yield significant outcomes and determine whether the focus of efforts towards equal opportunities in an inclusive workplace should be on women exclusively or on all employees with racial, ethnic, cultural, and religious diversity.

I would like to begin by clarifying what is a "myth" and what a reality in the context of day-to-day work:

Myth one: women are less ambitious than their male colleagues. The reality is that women are and demonstrate to be just as ambitious as men, particularly the younger generations (9 out of 10 women under-30 years of age want to advance to the next level, while 4 out of 5 want to be at the top). What ruins this recipe in the process? This will be examined below.

Myth two: Diversity and inclusion discussions are popular among the public. In truth, these broad and disorderly multiple articles, posts, and discussions appear to have a rather opposite result. With so much material availa-

UNSG Antόnio Guterres: Gender equality is becoming an increasingly distant goal that will be achieved in 300 years at best!

ble in print or electronic form to the average reader, this issue appears so frequently that the reader concludes it is trivial or that nothing more needs to be done about it. According to the 2023 UN Report on inequalities between men and women, the world is "leaving women and girls out" on numerous levels, from poverty alleviation and access to education to political representation and equal access to economic opportunities. If current trends continue, in 2030, the year when the goal of eradicating poverty is supposed to be reached, 575 million people will still be living in extreme poverty, with 342 million of them being women. At the same time, UN Secretary-General Antonio Guterres is attempting to rouse public opinion by claiming that gender equality is becoming an increasingly distant goal that will be achieved in 300 years at best! This insight leaves a terrible feeling of failure in institutions and society. Myth three: Women's survival in the workplace is no longer a struggle; rather, it's a question of evolution. The truth is that many women "miss out" on opportunities and are either forced out of the job market or stuck in supporting roles for ever as they try to move up the ladder from trying to survive to trying to advance to positions of responsibility or better pay.

According to the latest survey "Women in the Workplace 2023," conducted annually by McKinsey in collaboration with LeanIn.Org, we end up focusing on the wrong problem: instead of "breaking the glass ceiling", we should watch the "broken rung", as this proves to be the most significant risk in women's upward mobility. In 2023, out of every 100 men who

were promoted to positions of responsibility/ management, only 87 women were promoted in the same positions, with the rate even lower for women of race.

As a result of the gender imbalance in the first stages of promotion, men account for 60% of management positions in a typical organization, while women account for only 40%. Considering that men significantly outweigh women, there are fewer women to be promoted to senior management, with the number of women dropping at each succeeding level.

Myth four: all women face similar challenges in the workplace globally. The reality is that there are not only mere differences, but also disparities between continents, geographic regions, and even countries.

I could mention even more such myths, but I chose the most essential ones, particularly those that, in my opinion, best reflect women's current labour market situation. The question now is who and how can help women change this predicament.

Firstly, I believe that women will continue to put in the most effort not just to eradicate stereotypes, but also to persuade their male colleagues that a potential conflict is pointless, since should gender stereotypes are reinforced, stereotypes will also be perpetuated with regard to ethnic, cultural, and religious distinctions affecting the entire spectrum of human resources, regardless of gender.

Secondly, international organizations and countries must certainly address these concerns.

Thirdly, I passionately support individual and collective responsibility and action. This is exactly what organizations like WISTA International advocate, as their mission is to wipe out stereotypes, empower minority communities, and promote a culture of equal rights and equal opportunities.

In particular, WISTA International, which

is this year celebrating its 50th anniversary, numbers approximately 5,100 members from all shipping-related industries across 59 national organizations in its worldwide network. Over its 50-year history, the organization has achieved many important milestones, while it has also faced many challenges, developed an international mission and vision, and assimilated the changes in the shipping sector brought about by the need to save the oceans, climate change, the global vision for sustainable development, innovation, technology, and new skills for the day-to-day operations of ships and onshore shipping offices. The body believes in the importance of synergy at both the organizational and individual levels, and has shed any feminist footprint as an organization because it considers that our world requires both men and women to achieve our goals. In addition, it actively participates in the common effort for working environments boasting diversity, respect for pluralism, and inclusion not only at the gender level, but also at the cultural, religious, and national levels. On the occasion of our 50th anniversary, I am frequently asked what our vision is for the next ten years or, more broadly, what our future ambitions are. These are outlined below: Firstly, empowering women in the shipping sector remains our primary goal, albeit in a different manner and for different reasons. We began by advocating for women's inclusion in maritime offices and shipping organizations; today, we are demanding jobs on ships, in more areas such as technical departments or crew divisions, and in new professions such as those in the blue economy. We are working hard to overcome this "broken rung" in our career, especially during the years of motherhood or emergencies like the recent epidemic, and reach the “glass ceiling” through equitable opportunities.

Our second ambition is cultural change, both within and outside of shipping. It is impossible to alter the culture of shipping alone; we must work together to improve the mentality and education across all branches. Only in this way will we achieve significant outcomes.

Our third ambition involves forging new synergies and bolstering existing ones both at the national and international levels, as well as in decision-making lobbies. Decisions should not be made in the absence of women's now-appreciable rate in the maritime workforce. For example, legislation should be implemented to ensure the working conditions of women seafarers, who currently account for only 2% of the total. In these decision-making centres, we have a say for both voicing demands and co-decision. A public online survey to explore how female seafarers perceive "discrimination" and how this manifests

The mission of bodies like WISTA Intl. is to wipe out stereotypes, empower minority communities, and promote a culture of equal rights and equal opportunities.

on board based on their personal experiences has been conducted by WISTA International, Anglo Eastern, the International Seafarers’ Welfare and Assistance Network (ISWAN), and the International Chamber of Shipping (ICS). The full survey findings and suggestions are published in The Diversity Handbook.

We have been granted consultative status in the IMO since 2019, as well as in ongoing memorandums of cooperation. In 2021, WISTA International and the IMO conducted a joint survey on "Women in Maritime," with the goal of recording the proportion and distribution of women working in the maritime industry, from support functions to positions of responsibility. However, such data must be updated to be relevant for policymaking, therefore the same survey will be conducted again this year, 2024, to provide information on the current condition of diversity and gender equality in shipping. To improve women's representation in international forums and events, we established the platform

Maritime Speakers Bureau in partnership with the IMO, in which women can register by stating their interest and availability to speak at events. Speakers and organizers can register and use the platform for free.

Our fourth ambition involves encouraging empathy and a sense of unity among our members. Although we are pleased with the increase in active members, we ought to carefully consider the challenges that each national WISTA organization faces in order to preserve our unity and absorb the shocks brought on by disparate cultures and the way events are being perceived. This requires hard work on the part of WISTA International Board members, as well as on the part of the boards of WISTA’s national organisations in our 59 member states. However, I must admit that having the opportunity to listen to so many diverse points of view and record so many diverse issues ultimately proves to be essential.

The above will be the cornerstones of action, but they will be modified in accordance with the requirements or circumstances that exist on the current geopolitical and economic fronts. I believe that WISTA International is now well-positioned to handle any environmental structural changes that may arise, whether they are related to shipping or otherwise.

Regulation is needed to ensure working conditions and boost the rate of women seafarers, currently accounting for a mere 2% of the total.

SHIPOWNERS STRESS NEED FOR TRAINING, GREEK FLAG UPGRADE

The "miracle" of Greek shipping, geopolitical developments, the sector's green and digital transition, financing, and attraction of young people to the profession were the main themes of discussion during Naftemporiki's 8th Maritime Conference

From L to R: Andreas A. Martinos, founder of Athina Maritime Learning and Development Center, Minerva Group of Companies, receives an award from Christos Stylianidis, Minister of Maritime Affairs and Insular Policy. (Photo: Photo Papadakis).

From L to R: "N" publisher George Melisanidis, entrepreneur Dimitris Melisanidis and Capt. Panagiotis Tsakos. (Photo: Photo Papadakis)

George Prokopiou with his daughter Ioanna Prokopiou, recently elected Vice President of BIMCO. (Photo: Photo Papadakis).

Participants in the discussion "Challenges facing global shipping", from L to R: Phaedon Tomazos (co-founder and Managing Director, Cass Technava), George Prokopiou (shipowner, founder, Dynacom Tankers, Sea Traders and Dynagas), and Harry Vafias (founder of StealthGas, Imperial Petroleum, C3iS). (Photo: Photo Papadakis).

"N" 8th Shipping Conference participants in the discussion "The relationship between shipping companies and banks", from L to R: Nikos Daskalakis (General Manager, Alpha Shipping Advisors Ltd.), Theofanis Moustakatos (head of Maritime Operations Department, National Bank of Greece), Stamatis Tsantanis (President & CEO, Seanergy Maritime Holdings Corp and United Maritime Corp), Konstantinos Petropoulos (General Manager, Head of Shipping and Structured Finance, Piraeus Bank), Michalis Bodouroglou (Chairman, Allseas Marine SA), and Sakis Vourdis (Director, Business Development, Neptune Maritime Leasing). (Photo: Photo Papadakis).

Participants in the discussion "Geopolitics, international competition & shipping", from L to R: Christos Sigalas (Associate Professor, Department of Maritime Transport & Logistics, School of Business and Economics Deree - The American College of Greece), Konstantinos Karamanos (Capt. (Ret'd), Greek Navy; HSQE Superintendent, Seamar Management SA), Panos Kourkountis (President of MARTECMA; Technical Director, Sea Traders SA), Eleni Polychronopoulou (President, HEMEXPO; Vice President, Sea Europe; Business Development Director, Erma First), Panos Zachariadis (Technical Director, Atlantic Bulk Carriers), and Stavros Hatzigrigoris (Advanced Engineering Services; Technical Director, Zodiac Maritime). (Photo: Photo Papadakis).

Participants in the discussion "Digital transformation & artificial intelligence", from L to R: Manthos Machairas (IT Director, Metrostar Management), Dimitris Theodosiou, co-founder and General Manager, Danaos Management Consultants SA), Panos Theodosopoulos (CEO, METIS Cyberspace Technology), Konstantinos Kyriakopoulos (co-founder and CEO, DeepSea Technologies), and Alexandros Behrakis (CEO, Digital Realty - Greece). (Photo: Photo Papadakis).

“Key speakers in the 8th Shipping Congress of "N" called for broader cooperation between the government and the maritime sector.

Hercules Haralambides, Professor of Maritime Economics and Logistics, Erasmus University Rotterdam, Netherlands, addressing attendants on the role of the NPO "Komvos - Networks of Global Hellenism" and the global shipping sector, port infrastructure and the global supply chain. (Photo:

PIONEERS AMID RAPID DEVELOPMENTS

Naftemporiki’s 8th Shipping Conference, 2024, themed "The Critical Decisions," was held on May 15 at the Stone Warehouse of the PPA (Piraeus Port Authority). The conference focused specifically on the dynamism and ‘miracle’ of Greek shipping.

Keynote speakers at the debates advocated for more collaboration between the shipping industry and the government, as well as for improved maritime education to entice the next generation to the sea and reduce barriers to the entry of more ships under the Greek register.

Speaking about a challenging time, Greece's Minister of Maritime Affairs and Insular Policy, Christos Stylianidis, emphasized the country’s leadership in bolstering maritime security and upholding freedom of navigation, while also referring to the significant changes in the geopolitical landscape centered on the Red Sea.

For his part, Yiannis Xylas, representing the Union of Greek Shipowners (UGS), underlined the essential role that Greek-owned shipping plays in the midst of turbulent changes at all levels, considering the significant

and ongoing investments made by shipowners in more efficient, cutting-edge newbuilds. In his description of shipping, he used the term "national asset" to emphasize that it boasts all that is required to remain a leader in the world shipping landscape.

Awarding two

outstanding Greeks

A particularly moving moment was Capt. Panagiotis Tsakos' address during an award he was presented by Mr. Stylianides in acknowledgment of his significant contribution to the field of maritime education. The prominent Greek shipowner urged both the state and private organizations to take action and initiatives to enhance maritime education and encourage the employment of young people in the maritime industry.

"The shipping industry faces a shortage of personnel, and if we want to be at the forefront of shipping, we must inspire young people to pursue a career in the maritime profession," he stated, noting that "the essence of shipping is its people, more so than any other business."

Emphasis on the essential role of seafarers was placed by Andreas A. Martinos, shipowner and founder of Athina Maritime Learning and Development Center, while receiving an award for his contribution to maritime education and training. "Our shipping will continue to lead, provided Greek seafarers remain on the

front line," he stressed. Mr. Martinos dedicated his award to Greek maritime professionals, mentioning that the Athina Center's motto was "Where sailors always come first.”

The ‘miracle’ of Greek shippers’ dominance Speaking of what he called a ‘miracle’ of Greek shipping in the face of major challenges and intense competition, Giorgos Prokopiou, shipowner and founder of Dynacom Tankers, Sea Traders, and Dynagas, underlined that Greek shipping has effectively made it through challenging circumstances and heightened competition. He drew attention to the fact that even though Greece accounts for a mere 0.006% of the global population, it boasts the largest shipping force in the world withstanding fierce competition from China, a country with huge potential in terms of shipyards, banks, and other industries.

Additionally, Mr. Prokopiou expounded on the vast history of Greek seafaring, spanning more than 4,000 years, saying, "Greek shipping will always be there; it has survived and will survive any crisis."

In addition, he highlighted the need to enhance cooperation between shipowners and the government, particularly with the Ministry of Maritime Affairs and Insular Policy, to boost shipping's voice in international and European regulatory bodies.

Shipowner Harry Vafias, founder of StealthGas, Imperial Petroleum, and C3is Inc., underlined the need to expand the number of ships flying the Greek flag, saying, “Why can't we have 2,500 ships under the Greek flag? The law's strictness prevents this from happening! "It's wrong for countries with a much smaller

Photo Papadakis).

shipping force to have a greater number of ships under their flag than Greece does." He explained that the major impediment to adding more Greek-flagged ships traveling the seas today is the shortage of Greek seafarers. "It's a pity, because the Greek flag should be flying on so many more ships," Mr. Vafias said.

Regulation ‘tsunami’: The role of financiers Amid a ‘tsunami’ of environmental rules necessitating investment from the shipping industry, the role of shipping financiers is regarded as especially critical.

"There has never been a set of new regulations implemented simultaneously within such a limited timeframe as the ones put in place for the period between 2020 and 2030," stressed Stamatis Tsantanis, CEO and President of United Maritime Corp. and Seanergy Maritime Holdings Corp. He argued that this presents a significant hurdle for shipping companies. "The sector needs finance as an aid for new investment in both existing fleets and newbuilds," Mr. Tsantanis stressed.

Allseas Marine SA President, Michalis Bodouroglou, discussed the challenges posed by the new regulations. He did, however, voice his conviction that Greek shipping will always have access to funding sources because of the enormous investments it makes in fleet renewal.

Speaking on behalf of financiers, Theofanis Moustakatos, head of the National Bank of Greece's Maritime Operations Department, told the audience that while European banks are pulling out of the maritime financing market, Greek banks are growing their portfolios. He also emphasized that Asian financing, such

as leasing, has been gaining traction, while Middle Eastern banks may also improve their financing share.

Shipping and geopolitics

The presenters' insightful comments on how geopolitical conflicts affect the maritime landscape were profound.

Stavros Hatzigrigoris, Advanced Engineering Services and Technical Director of Zodiac Maritime, spoke on the latest crisis in the Middle East, focusing on its substantial impact on the oil market.

“Regarding oil reserves, as long as there is a political problem, the price of crude increases, and the reserves go down and have to be replaced,” he outlined. “It is very evident to me that the energy trade has a political dimension. That is, it is heavily influenced by events on our planet,” he emphasized.

Highlighting the precarious nature of shipping, Panos Kourkountis, President of MARTECMA and Technical Director of Sea Traders S.A., stressed that “a minor Suez Canal traffic disruption causes rates to jump 200%, and that’s a huge risk.”

Green fuels will take time

Another major takeaway from the conference was that zero-carbon green fuels remain a long way off. "At the moment, there are simply no

green fuels," Yannis Kokkarakis, SEEBA Zone Technical Director, Bureau Veritas, pointed out.

In a similar vein, Antonis Trakakis, Marine Technical Director, RINA, added in a steely voice that “any discussion on zero-carbon alternative fuels is premature and out of place, spurred by vested interests.”

“Until today, little has been done to decarbonise shipping. Currently, 93% of the fleet runs on conventional fuels. That’s a major problem, and we need to figure out how to deal with it," said Giorgos Teriakidis, Area Manager East Mediterranean and Black Sea at DNV.

New digital generation executives

In the upcoming years, the shipping industry will see the growth of new ‘super efficient’ executives as technology advances and ships are equipped with digital tools, stressed Dimitris Theodosiou, co-founder and CEO of Danaos Management Consultants S.A.

He added that the introduction of generative AI will drastically change the way shipping companies operate. "AI will transform the entire architecture of information systems." It will bring all of the world's knowledge to your desk. A company will be able to use the system to inquire about all new fuel advances and all available choices for ships it wishes to build,”

Mr. Theodosiou added.

“The expertise we currently have in ship management and ship ownership, along with utilizing new technologies and the right training of the new generations, will allow us to create new jobs and build ‘super efficient’ executives in shipping who will be insightful of the real needs of the industry,” he concluded

“The Minister of Maritime Affairs & Insular Policy highlighted Greece's leading role in bolstering maritime safety and freedom of navigation.

LEFT - From L to R: George Plevrakis (CEO, HEC), Yiannis Kokkarakis (Technical Director, SEEBA ZONE Bureau Veritas), Michalis Pantazopoulos (Senior Vice-President LISCR Hellas S.A.), Antonis Trakakis (Technical Director, Marine, RINA), and George Teriakidis, Area Manager, East Mediterranean and Black Sea, DNV. Above: Conference venue, outdoor space.

Green transition in shipping needs the proper ‘recipe’ at the right time

Centrofin Management CEO Yiannis Prokopiou talks to "N" about the challenges and industry opportunities, the long-term changes expected in the shipping industry and the geopolitical environment

Interview by Antonis Tsimplakis atsimplakis@naftemporiki.gr

The shipping industry’s green transition efforts are both a challenge and an opportunity. Centrofin Management CEO Yiannis Prokopiou, in an interview with "N", points out that he approves of the decisions by the International Maritime Organization (IMO), which he says is the only truly competent global body for the specific task.

At the same time, however, he emphasizes that today there are various green solutions being tested, but the outcome of this effort is still not known.

As for the opportunity, he attributes it to choosing the right "recipe" for the green transition at the right time. "Companies that will apply the right ‘recipe’ (not necessarily the first ones) to their ships at the right time will have a comparative advantage, at least for a while," he pointed out.

He also recalled the basic rule of shipping, that is, the one that applies to charter markets: “Markets in our industry have historically been governed by one basic rule: supply and demand - hence the remarkable circularity of the charter market. On good days (like today), new ships are ordered and only a few ships are retired, gradually driving the global fleet to swell up, in turn creating a supply-demand imbalance. From then on, new orders gradually decrease and ships begin to be retired. Because both shipbuilding and retirement are time-consuming operations and cannot be done overnight, it takes time (unfortunately, usually years) to rebalance, and then the cycle begins to repeat.”

Mr. Prokopiou also touched upon another very serious issue facing the shipping industry concerning seafarers. “The global deficit in seafarers is a reality that has been exacerbated by various factors, such as the pandemic, piracy and various new risks, the different perception of the new generation about the

profession, and the opportunities that are gradually being given for sustainable careers on land. We hope that with the programs we are already running, we will be less affected than other companies.

Mr. Prokopiou, you come from a shipping family and are the second generation. It is understandable to choose shipping. However, what made you make the final decision to get involved in the shipping industry?

but gradually got involved in other activities, both commercial and engineering. Ship management is a fairly complex process, consisting of many cogwheels, which are equally important, because even if one of them is not functioning well the whole lot is affected. For two years now I have held the position of CEO, so I supervise the entire operation of the group, but fortunately our workforce comprises highly qualified executives in all specialties and levels, which makes my job easier.

I am not convinced that we will see unmanned ships in mass application any time soon - at least in terms of long haul trips.

Most people think that in such cases following in the family tradition is the only way. However, this is not always the case and there are many relevant examples. In my case, the love for the sea and ships took root in me from a very young age, having being influenced by my father's stories, working in the office from time to time, and our summers, when we were lucky enough to become one with the sea. I can't imagine myself doing anything else.

What is your field of knowledge based on your studies?

My first degree is in Mechanical Engineering, and my Master’s is in Shipping, Commerce and Finance from City University of London.

What is your role in the group? What came before?

I started 11 years ago dealing mainly with charters,

What are the shipping sectors in which the group is active?

All types and sizes of tankers and dry bulk carriers, from supramaxes to capes.

Although shipping contributes to a very small degree to the global environmental burden, the industry’s green transition is currently in the foreground. What is your opinion?

Indeed, shipping's share of pollution is comparatively very small in relation to the transport work we produce for world trade. However, the effort to deal with environmental challenges is global and our industry must participate like everyone else. We welcome the decisions of the IMO, which is the only truly qualified global body, and we will follow them faithfully.

What are the challenges and opportunities along this path?

The direct challenge for the green transition is to develop a propulsion technology that is truly green and at the same time sustainable and economical. There are various solutions being tried, as you know, but the outcome is still not known. This challenge itself opens up an opportunity, as the companies (not

shipbuilding and retirement are time-consuming processes and cannot be done overnight, it takes time (unfortunately, usually years) to restore the balance, and then the cycle repeats itself.

As simple as this principle may sound, it is so complicated to predict the timing, precisely because the game is played on a global chessboard, with many players and many unstable factors, such as geopolitical, transnational, economic, technical, and even climatic.

All we can do is to be constantly and globally informed, to see far and manage the commercial risk as best as we can, keeping a balance between sometimes bold and sometimes conservative moves.

As a young person, where do you see the shipping industry 20 years from now? What are, in your opinion, the most important changes to come about?

Change has always been a part of our work, but its pace is now stormy. It is difficult to predict what we will see in the future, because anything the human mind can think of is possible. I believe that we will see ships much more economical, much safer, and that technology will bring land much closer to ships. There will be direct monitoring and communication, we will have fewer technical problems and deal with them much more efficiently. About unmanned (autonomous) ships, I'm not convinced we'll see them in mass application any time soon - at least when it comes to long haul trips. On the commercial side, the consolation for us is that the world will still need ships. There is no apparent competitive way to move 90% of the world's trade, so in the future there will definitely be a need for shipping in whatever form it takes.

Economic power is shifting East, and developing economies will hold the trade reins in the coming years.

What kind of changes do you anticipate on the geopolitical environment?

necessarily the first ones) that will apply the right ‘recipe’ at the right time to their ships will enjoy a comparative advantage, at least for a while.

In addition to environmental sustainability, the financial sustainability of shipping companies is also essential in order to continue to transport over 90% of the world's trade. What do you see shaping the market outlook today?

Markets in our industry have historically been governed by one basic rule: supply and demand - hence the remarkable circularity of the charter market. On good days (like now), new ships are being ordered with only a few ships being retired, resulting to a gradually swelling of the global fleet, and creating a supply-demand imbalance.

From there on, the orders gradually decrease and the withdrawal of ships begins. Because both

Globalization has been a reality for years. Economic power is shifting east, and developing economies will hold the trade reins in the coming years. Europe is, in my opinion, in a prolonged recession both economically and socially, and the US is following, although it maintains its leadership on the planet due to its enormous military superiority. China and India will continue to be the main engines of the global economy, and several other developing economies, such as Brazil, Mexico, Indonesia, Saudi Arabia, South Africa and Turkey will gain a stronger position. Additional activity is expected with the end of the war in Ukraine (when this happens), which will mean a huge reconstruction, possibly combined with the resumption of trade with Russia without restrictive measures.

Yiannis Prokopiou: The direct challenge for the green transition is to develop a propulsion technology that is truly green and at the same time sustainable and economical.

The global deficit in sailors is a reality

Mr. Prokopiou, besides sustainability, one issue that is very high on the shipping agenda is recruiting and training seafarers, both junior crews and officers. How do you deal with this issue?

Human resources are always at the top of our agenda. Whatever we on land may think, the truth is that our sailors are the ones who keep the propeller rotating night and day. Our seafarers are from the Philippines, India, Ukraine and Romania, and we have established our own offices in these countries since 25 years ago.

We invest heavily in training and promoting our own people. At the moment, we have captains of all nationalities who started out in our company as cadets, and we even have a Ukrainian master who has been with us since he was a cadet, and whose father also works on our ships. In fact, the captaincy of one of our ships was recently handed from a father to his son - a very touching moment.

We keep very close contact with our seafarers and their families at all levels, and the retention rate rate is in the order of 95%.

The global deficit in seafarers is a reality, exacerbated by various factors, such as the pandemic, piracy and various new risks, the different perception of the new generation about the profession, and the opportunities gradually given for sustainable careers on land. We hope that with the programs we are already running, we will be less affected than other companies.

Has the war in Ukraine affected you at crew level, given that Ukrainians are very good officers?

Our bond with Ukraine goes back a long way, both as a family and as a company. Since 2002, we run our own office in Odessa for officers, and the war found us employing about 220 officers. From the first day, we decided that we would support them and so we initiated a relief program, helping our sailors who wished to flee the country together with their families. Even now, two years later, we are still, despite the adversity, offering them work, as well as providing shelter and food for a total of 500 people (spouses and children of our sailors).

These people have been with us for years, they are very capable, and we consider them part of our family, so this decision was a foregone conclusion. Unfortunately, a few months ago we also had the first confirmed loss of one of our sailors, who fell victim to an attack in Mikolayev.

What is the group's corporate culture regarding diversity, equal opportunities, wages and inclusion?

We keep very close contact with our seafarers and their families at all levels, and the retention rate is around 95%.

Traditionally, shipping companies were not considered to perform well in this area, owing partly to the male-dominated environment, the strict type of hierarchy on ships and in naval training, and some stereotypes about nationalities, which all together gave a bad impression. I think that we, as a company, are quite open on DEI (Diversity-Equity-Inclusion) issues, although it is something we are constantly working on.

As I said, we have been working exclusively with foreign crews for decades, so our company culture could not be more different. Also, our office in Greece is over 50% staffed by women, approximately 45% by

people under 35 years old, and representing in total eight different nationalities. Apart from my sister, who actively participates in the management of the company, we have female heads of departments, such as Legal, HR, SQE, Insurance, and Freight Collection, in addition to other important positions, such as chief engineer, captain, operator and chartering broker.

Finally, during the recent construction of five (5) suezmax tankers for our company at the Samsung shipyards in South Korea, we had the pleasure of being the first company (as far as we know) to appoint a woman as the managing shipbuilder of the monitoring team (Site Manager), and also a female Site Supervisor.

Corporate culture is formed over time, but as I said before, it is also something that requires continuous engagement. Thus, we systematically run awareness programs and participate in international conferences covering the issues of equality and inclusion regardless of gender, nationality, age, religion or sexual preference.

Centrofin Group CEO Yannis Prokopiou: We invest heavily in training and promoting our people.

PERFORMANCE IMPROVEMENT

Listed companies on sustainable journey

A survey by "N" captures some of the most important features in Greek, NYSE-listed shipping companies’ most recent ESG reports

By George Georgiou ggeorgiou@naftemporiki.gr

G

reek shipping companies listed on the New York Stock Exchange (NYSE) recorded improved performance in terms of Environment, Society and Governance (ESG) in 2022. As shown by an extensive survey carried out by "Naftemporiki" on the ESG reports released by listed Greek shipowners, the large majority achieved to optimize their fleets’ environmental profile, lowering both the Annual Efficiency Ratio (AER) and the Energy Efficiency Operational Index (EEOI).

The AER (gr CO2/DWT-mile) is calculated on the basis of a ship's carbon emissions per exact tonnage-distance, taking into account parameters such as fuel use, the distance traveled by the ship and its design. It is a measure adopted by the Poseidon Principles initiative.

The EEOI (gr CO2/Tonne-mile) is the ratio of total annual CO2 emissions per transport project, as defined by the International Maritime Organization (IMO).

In absolute Scope 1 emissions, an almost perfect balance was recorded between those companies which achieved to reduce emissions and those which saw their fleet emissions increase. However, what needs to be taken into account here is the transport work carried out by each company, as well as the ship speeds required by the markets. However, significant steps have been made in recent years in the field of workforce inclusion and diversity. The role of women is steadily increasing in onshore shipping offices, assuming a higher number of responsible positions either on the Boards of Directors or as heads of specific departments.

Of course, in the majority of companies, women’s share still remains at lower levels, compared to those of men, while the number of women employed on ships is quite limited. The latter, however, is perhaps connected to the reduced attractiveness of the maritime profession to the young generation.

Notably, almost all listed Greek shippinng companies companies greatly increased their resources in crews as a result of the significant expansion of their fleets. The list compiled by "Naftemporiki" includes the 15 companies that published reports for 2022, out of a total of 26 companies listed on the NYSE by the end of 2023.

COSTAMARE

Being competitive in a rapidly changing world

"We are committed to delivering value to shareholders, customers, employees and society by reducing our environmental footprint while maximizing our positive impact on the communiiy as a whole. We believe that in doing so, we can ensure long-term success and remain competitive in a rapidly changing world".

This message by Costamare CEO Konstantinos Konstantakopoulos, was included in the latest ESG report published by the shipping company.

The company improved its average fleet Annual Efficiency Ratio (AER) in 2022, following three consecutive years of upward shifts due to high speeds. In particular, the AER dropped to 7.58 points from 8.02 points in 2021, while the EEOI fell to 14.26 points from 14.36 points. At the same time, direct total emissions rose slightly to 5 million tonnes of CO2 in 2022 compared to 4.99 million tonnes of CO2 a year earlier, even as total distances traveled by the ships rose to 8.3 million nautical miles from 7.4 million nautical miles in 2021.

To increase the energy efficiency of its fleet, Costamare implements a holistic retrofit strategy, while also enhancing the use of biofuels and focusing on the utilization of onshore power infrastructure.

In addition, the Greek shipping company significantly increased its personnel at sea, reaching 4,879 seafarers in 2022 compared to 2,842 in 2021. In terms of inclusion and diversity, of the 5,030 employees employed by Costamare in total, 4,984 are men and 46 are women, the large majority of whom work in offices.

 The company's fleet consists of 68 containerships, with a total capacity of 513,000 TEUs, and 37 bulkers with an overall capacity of 2.53 million dwt.

CAPITAL PRODUCT PARTNERS Transformation with faith in LNG

"We are adopting LNG as a fuel, recognizing its importance in the energy transition puzzle. LNG stands out for its flexibility, alignment with market demand, supporting decarbonisation targets, job creation, and contribution to growth of infrastructure," comments Capital Product Partners CEO Jerry Kalogiratos

The firm’s confidence in LNG has translated in the past months into the company's transformation as an almost exclusive gas transporter, gradually deinvesting in containerships.

LNG carriers were also the main reason for the increase in the company's AER to 7.19 points, compared to 6.54 points in 2021, and improving EEOI to 14.91 points from 10.64 points. "The nature of the LNG trade between the US and Europe is characterized by high-speed crossings, significantly influencing the outcome," explains the shipping company.

Nevertheless, total CO2 emissions fell to 1.08 million tonnes in 2022 from 1.11 million tonnes a year ago. According to Capital Product Partners, this improvement is a result of reduced fuel use offered by LNG. Sailor numbers employed by the company remained almost unchanged. Specifically, 1,010 crew members worked on the shipping company's fleet in 2022, compared to 1,051 in 2021. According to data released by Capital, 35% of shore-based staff were women and 65% were men, compared to 33% and 67%, respectively, in 2021.

 The shipping company operates 22 ships, of which nine are LNG carriers and 13 containerships, with a total capacity of more than 2.1 million dwt, a number set to increase after the delivery of newly built LNG carriers

DANAOS CORPORATIONN

Profitable problem solving

"We believe that the purpose of our business is to solve problems for people and the planet in a profitable way, rather than to profit from creating problems. In particular, businesses must seek immediate progress in reducing carbon emissions. Consumers are already demanding more environmental alternatives," Danaos Corporation CEO Yiannis Koustas points out in the company’s latest ESG report.

The listed company's average fleet annual efficiency ratio (AER) stood at 8.46 points in 2022, compared to 8.7 points in 2021, while the EEOC dropped to 15.68 points from 16.01 points in 2021. At the same time, in 2022, fleet emissions fell to 3.67 million tonnes from 3.72 million tonnes a year earlier.

Alternative marine fuels singled out by the company include green methanol, as it has already placed orders for ships that will be able to use methanol as the main means of propulsion. On the other hand, Danaos views biofuels as a mediumterm solution, having supplied five steamers with biofuel blends, while also looking at the carbon capture and storage technology.

With regard to employment offered by the company, the number of seafarers remained relatively stable, as it employed 1,435 maritime professionals in 2022 against 1,459 in 2021. At the same time, Danaos reported an unchanged number of malefemale employees, with the proportion of women both in the total staff (44%) and in managerial positions (22.7%) remaining stable in 2022 versus 2021.

 Danaos’ fleet includes 68 containerships, with a total capacity of 421,293 TEUs, while running a shipbuilding program for 12 ships, with a

DIANA SHIPPING

Active participation in the journey towards a more sustainable future

"As a major player in the shipping industry, we recognize our responsibility to steer the industry towards a more sustainable future. We are actively participating in our industry's ESG journey, embracing innovation, creating meaningful partnerships and ensuring our financial resilience," says Diana Shipping Director and CEO Semiramis Paliou

The environmental profile of the company's fleet was improved in 2022, with the AER dropping from 3.16 points in 2021 to 3.03 points, while the EEOI was lowered from 7.02 points to 6.67 points, and Scope 1 emissions dropped to 807,102 metric tons of CO2 in 2022 from 903,217 tons a year ago.

An expanded fleet decarbonisation plan has been put in place by Diana Shipping, through the use of digital efficiency monitoring means and testing new fuels, as it aims to arrive at the "next generation fuel" to be used by its ships. However, the shipping company has placed orders for bulkers which will be equipped with methanol dual-fuel capable engines.

Regarding the company's performance at the level of inclusion and diversity, it achieved to improve the proportion of women in personnel at sea to 1.6% (25 female seafarers in 2022) from 1% in 2021 (10 female seafarers), and to 36% onshore (45 women) from 35% in 2021 (42 women). Finally, in the area of responsible positions, 18% were taken up by women in 2022 from 11% a year earlier. Notably, the shipping company has spectacularly increased the number of sailors it employs on an annual basis from 708 in 2021 to 1,547 in 2022.

 Diana Shipping owns and operates 38 bulk carriers, with a total capacity of 4.5 million dwt, excluding tonnage currently under construction.

DORIAN LPG

Having a strong sense of responsibility

"We reject clichés in ESG strategies and focus on substance and the pursuit of progress. Our goals are consistent with the values we inherited from a long tradition of shipping services, which is a strong sense of responsibility towards customers, employees, the community and the environment," underlines Dorian LPG president and CEO Yiannis Hatzipateras

The shipping company achieved significant improvements in AER, EEOI and emitted pollutants. Specifically, AER fell to 6.83 points in 2022 from 7.25 points in 2021, while EEOI dropped to 16.90 points from 17.56 points, and total CO2 emissions fell to 701,852 tons in 2022 from 748,051 tons a year earlier.

Dorian LPG has put in place an expanded, fleetwide program of energy saving devices (ESDs), and has set up an in-house "New Technologies" group exploring innovative engineering solutions and possible alternative fuel options. Notably, in recent months the listed company made its first ever order for ammonia transport ships, having also expressed interest in carbon capture technology. The number of people employed in Donian LPG vessels dropped slightly to 476 compared with 500 in 2021, while the male-female ratio of shore-based staff stood at 65% - 35%, up from 65.4% - 34.6% in 2021. In 2022, a total of 10 new female cadets joined the company's pool, as many as in 2021.

with a total capacity of over 1.76 million cubic meters.

EURODRY Initiatives aligned with the ESG vision

"Looking ahead, we are excited to set even more ambitious fresh ESG goals and initiatives that align with the long-term vision and support of the United Nations' Sustainable Development Goals. We are confident that in collaboration with all stakeholders, we can create a more sustainable and equitable future for all, "EuroDry CEO Aristides Pittas said in the company’s latest ESG report.

The transport work carried out by EuroDry vessels rose by 13.9% year-on-year resulting to an increase in emissions. Specifically, Scope 1 emissions rose to 203,844 metric tons of CO2 in 2022, up from 166,818 tons a year earlier. The shipping company did not disclose AER figures, but pointed out that EEOI rose marginally to 8.94 points in 2022 from 8.74 points in 2021.

EuroDry upgraded the fuel mix used by its fleet to high-quality, low-sulphur fuels to comply with environmental regulations, while implementing various digital software recording fleet performance.

At the same time, during the period under review, the number of crew members employed in its fleet rose marginally to 407 from 397 in 2021. The ratio of men - women in onshore staff improved slightly to 57.4% men - 42.6% women in 2022, compared to 57.81% men - 42.19% women in 2021.

 EuroDry's fleet currently numbers 13 bulk carriers, with a total capacity of 918,502 dwt.

 Dorian LPG's fleet consists of 25 modern VLGCs (Very Large Gas Carriers), including four dual-fuel LPGs,

EUROSEAS

A better place for coming generations

Aristides Pitta's message is similar for Euroseas, a NYSElisted company he also heads:

"We believe that responsible and sustainable business practices are vital to our long-term success and the well-being of our members. If we all work collaboratively to make our businesses more sustainable, cleaner and more inclusive, we will contribute to making this world a better place for future generations."

Euroseas fleet expansion led to increased transport work and, in turn, to an increase in emissions. Scope 1 emissions were measured at 557,057 metric tons of CO2 in 2022, up from 474,436 tons a year earlier, while the EEOI also rose to 25.65 points from 19.65 points in 2021. No AER details were disclosed by the company.

In addition to digitally monitoring fleet performance, Euroseas has equipped some of its ships with systems that allow the use shore-based power infrastructure while at berth. At the same time, an expanded program to install energy-saving systems on multiple ships is also under way.

The shipping company slightly improved the ratio of men - women in onshore personnel (57.4% - 42.6% in 2022 from 58% - 42% in 2021), while its fleet comprised a total of 704 crew members in 2022, against 806 a year earlier.

 Euroseas’ fleet currently comprises 20 containerships, with a total capacity of 61,661 TEUs, and with the expected delivery of six newbuilds, total capacity will rise to 75,461 TEUs.

GLOBAL SHIP LEASE

Investing in four decarbonisation pillars

"In the short term, we believe that reducing emissions by improving the energy efficiency of ships in service --both technically and operationally-will provide the most immediate and tangible social benefits and economic returns. With this in mind, the four pillars of the decarbonisation strategy and fleet enhancement in the short term are energy saving devices, data, fuel and carbon capture and storage (CCS) technology," Global Ship Lease Executive Chairman George Giouroukos stated.

The shipping company is implementing several initiatives around these four pillars, such as deepening cooperation with charterers on ways to upgrade existing ships, automated data monitoring of ship performance, work on achieving fleet compatibility with the use of biofuels, and, finally, investing in a consortium dealing with CCS and establishment of a Research and Development budget in this direction.

In a period of increasing vessel-owning days, the company achieved to contain emissions, resulting in the AER improving to 10.03 points in 2022 from 10.6 points in 2021 and EEOI dropping to 21.4 points from 23 points. Scope 1 emissions climbed to 3.26 million tonnes of CO2 from 2.84 million tonnes of CO2 in 2021.

The total number of seafarers employed by the company increased to 3,071 in 2022 compared to 2,798 in 2021. The number of women crew members dropped to 9 in 2022 compared to 13 a year ago. Among onshore staff, the proportion of women remained almost unchanged year-on-year (36% in 2022, 38% in 2021). However, in 2022, the company welcomed its first female member in the Board of Directors.

NAVIOS MARITIME PARTNERS

Responding to challenges through dialogue and cooperation

"We remain humble in the face of the challenges ahead. The road to sustainability requires collaboration and a willingness to learn from each other. We shall remain committed to active collaboration with stakeholders, including local communities, NGOs, regulatory bodies and counterparts within the industry to promote a meaningful dialogue and together find solutions that will be beneficial to all," said Navios Maritime Partners President and CEO Angeliki Fragou, introducing the readers to the company’s latest ESG report.

No data on the AER were disclosed by the listed company, but EEOI measurement revealed an improvement in its carbon footprint. Specifically, EEOI, i.e. total emissions per tonne-mile in 2022 fell by 14,88% year-on-year.

These better results were attributed by the company to ship improvements and more efficient route planning, as well as fleet utilization. Navios is also closely monitoring developments in the field of alternative fuels, having ordered vessels that can be converted to use LNG or methanol.

With regard to the company's performance in inclusion and diversity, high percentages of women both in the total staff (46%, unchanged compared to 2021) and in responsible positions (39% women in management in 2022, against 40% in 2021).

According to Navios’ latest report, the number of seafarers it employs has increased year-on-year.

 Navios Maritime Partners owns 176 ships (77 bulk carriers, 52 tankers and 47 containerships), with a total capacity of 15.8 million dwt and 231,964 TEUs, while the company is implementing a shipbuilding program for another 26 ships (16 tankers and 10

OKEANIS ECO TANKERS

Further reduction of the environmental footprint

"Sustainability remains at the heart of our activities and values. We seek to implement initiatives that address global challenges for sustainability and strengthen our ability to weather potential crises. We look to the future being confident that our efforts advance the principles of sustainable development," Okeanis Eco Tankers CEO Aristidis Alafouzos pointed out. The shipping company was the latest addition to the "club" of Greek NYSE-listed companies, and started to trade at the end of 2023.

On an environmental level, the shipping company has achieved an improvement of both the AER and ship emissions. Specifically, the AER fell in 2022 to 2.09 points from 2.39 points a year ago, while the EEOI dropped to 4.90 points from 5.36 points, and Scope 1 greenhouse gas emissions decreased to 493,566 tons of CO2 from 536,633 tons in 2021.

A plan to further reduce the fleet’s environmental footprint includes the use of energy-saving devices and efficiency monitoring technologies, In alternative fuels, the company has received LNG specifications (notations) for readiness to use the fuel on two ships.

Okeanis Eco Tankers has increased the number of crew members on its vessels, employing 337 seamen in 2022 from 297 in 2021. In terms of inclusion and diversity, it has also integrated seven women into its seafarer pool, while the proportion of female workers in the total staff decreased slightly to 42% in 2022 from 45% a year ago.

 The Greek shipping company focuses its activity on tankers, currently controlling a fleet of 14 vessels, with a total capacity of 3.5 million dwt.

PERFORMANCE SHIPPING

Creation-driven decisions for a better future

"At Performance Shipping, we see sustainability both as a responsibility and an opportunity to make a positive impact globally. It is a key part of our corporate values, influencing our decisions, operations and relationships. Our ongoing sustainability journey is a proof of our unwavering dedication to creating a better future for everyone," underlines Performance Shipping

CEO Andreas Michalopoulos (the company is headed by the chairperson of the BoD Aliki Paliou).

A fleet increase of three vessels from 2021 to 2022 and the higher utilization rates drove the listed company's EEOI higher. Tankers picked up speed in 2022, driven by spectacular freight growth. Specifically, its fleet recorded 14.19 grams of CO2 per tonne-mile from 12.95 grams in 2021.

However, the shipping company implements an extensive program of green and digital upgrading of its vessels, adopting environmentally-friendly technologies for the entire fleet. In addition, the company has also ordered three aframax tankers, which will be able to use LNG, after conversions.

At the labour level, the listed company employed 294 seafarers in 2022 from 236 in 2021, increasing from two to four women in the mix of maritime professionals. Notably, there is an absolute balance between men and women in the onshore staff (50%50%, from 60%-40% in 2021), while during the year a second woman was also elected to the Board of Directors of the listed company.

 Performance Shipping controls a fleet of seven aframax tankers, with a total capacity of approximately 740.00 dwt, while by 2026 it will take delivery of three more newbuilds.

SAFE BULKERS Extensive program for green upgrades

"The fundamental strength and operational resilience of our company, combined with the character and dedication of our people, has enabled us to successfully face the challenges in tough times and achieve satisfactory results, despite geopolitical tensions and the risk of recession in an inflationary environment, after a pandemic," Safe Bulkers CEO Polys V. Chatziioannou said in a welcoming message to the latest ESG report readers.

The listed company achieved satisfactory environmental performance, despite the increase of its fleet by five ships. In particular, the AER fell to 3.32 points in 2022 from 3.53 points in 2021, while the EEOI fell to 6.46 points from 6.97 points in the same period. However, the increased transport work carried out by the shipping firm led to an increase in annual CO2 emissions to 862,984 tonnes in 2022 from 825,087 tonnes in 2021.

Safe Bulkers was one of the first firms to return to the shipyards, when newbuilding orders were still on the back burner due to the many uncertainties surrounding the ships of the future, and agreed on dozens of new ships that meet all of the latest green specifications of the International Maritime Organization (IMO), while two of the newbuilds will also use methanol. At the same time, the company it is implementing an extensive program of green upgrades to the existing fleet, also turning to the use of biofuels.

The number of seafarers working on the ships of the listed company increased to 914 in 2022 from 790 in 2021. During the period under review, 26% of the onshore staff were women, compared to 23% in 2021. Notably, in 2023 the company appointed two women to the Board of Directors.

SEANERGY MARITIME HOLDINGS

Strong practices for governance

"We remain committed to delivering on our sustainability goals consistently and transparently. Our ambition is to lead in this area, driving development, maximizing our positive impact on the environment and society and promoting strong governance practices," Seanergy Maritime Holdings Chairman and CEO Stamatis Tsantanis pointed out.

Although total fleet emissions saw a slight increase year-on-year, Seanergy achieved an improved AER performance. In particular, CO2 emissions climbed to 487,648 tons in 2022 from 433,818 tons in 2021, while the AER fell to 2.59 points from 2.73 points.

The shipping company has created an internal energy efficiency department, to assess the fleet while carrying out tests on biofuels in cooperation with charterers, having also progressed to a greater extent in the installation of digital systems to lower fuel use. Seanergy recently announced that it is participating in a pioneering program funded by the European Union to promote alternative fuels.

With regard to inclusion and diversity, the percentage of women in the total onshore staff fell to 40% from 48% in 2021, while that of women in the Board of Directors remained unchanged at 20%. At the same time, the company employed 417 crew members in 2022 up from 371 a year ago.

 The fleet of Seanergy Maritime Holdings includes 17 bulk carriers with a total capacity of over 3.0 million dwt, while two more ships are on the way for delivery. The company is a pure player in capes and newcastlemaxes.

STAR BULK CARRIERS

Innovative thinking, better energy efficiency

"In the current times of conflict, uncertainty and climate change, I draw inspiration from the word 'crisis', which comes from the Greek word 'krisis', meaning to have good judgement. We will continue to make informed decisions, to think in an innovative way and work for a more sustainable future," Star Bulk Carriers CEO Petros Pappas, pointed out.

The listed company significantly improved the environmental profile of its large fleet. Specifically, Scope 1 greenhouse gas emissions fell to 2.74 million tonnes of CO2 in 2022 from 2.87 million tonnes of CO2 in 2021, while the AER fell to 3.29 points from 3.43 points, and the EEOI dropped to 6.45 points from 6.64 points a year earlier.

The shipping company’s decarbonisation strategy sets a number of major targets until 2050. To achieve these, the company is steadily renewing its fleet with sales of older ships and orders of new and more efficient tonnage, while improving the energy efficiency of existing ships with technologies to reduce fuel use, and participates in Research and Innovation projects for new fuels (including ammonia and hydrogen).

The total number of seafarers on Star Bulk vessels exceeded 4,000 in 2022 (a slight increase on 2021), while the male-female ratio of onshore personnel remained unchanged year-on-year, with 42% being female. At the same time, the share of women in administrative positions increased to 24% in 2022 from 22% in 2021.

 Star Bulk Carriers currently operates 163 bulk carriers with a total capacity of 15.6 million dwt, with an ongoing shipbuilding program for eight more vessels.

TSAKOS ENERGY NAVIGATION

Quality performance 24/7 every year

"Our operating model and strategy have helped TEN navigate safely and successfully through the various crises we have faced since 1993, each time emerging from them as a stronger and bigger company. Of course, we would not be where we are today if our onshore staff and seafarers have not had outstanding quality performance 24/7 every year," Tsakos Energy Navigation founder and CEO Nikolas Tsakos, said while introducing the company’s ESG report. The listed company achieved a reduction of its total CO2 emissions to 1.24 million metric tons in 2022 against 1.35 million metric tons in 2021. The firm published no details with regard to its AER and EEOI performance.

Following in the path it charted from 2021 towards alternative fuels, TEN, in 2022, launched a Performance and Optimization Center. The shipping company is renewing its fleet by implementing a strategy for newbuilding orders with secured long-term charters, while it has already taken delivery of tankers that can use LNG. At the same time, it is looking closely at zerocarbon technologies, improved engines and new fuels.

On a social and employment level, the company's seafarer pool included 2,917 seafarers in 2022 from 2,935 in 2021. In the onshore staff, 107 women were employed during the reporting period, compared to 112 in 2021.

 The TEN fleet comprises 74 ships: eight newly built tankers, crude tankers, product tankers and LNG carriers, with a total capacity of 9.1 million dwt.

Gen Z: Reshaping the shipping landscape

Every challenge shipping faces as it moves towards the sector's green transition is part of Gen Z's journey to working adulthood

By 2025, Generation Z will account for 27% of the worldwide workforce, but even now, we are still struggling to identify Gen Z's differences, priorities, and inclinations. Born after 1996, the world's largest generation is forging a new occupational culture and global equilibrium in the world economy. Gen Z, having already matured from the hardships they faced from a young age, is poised for a bright future because they never give up on achieving their goals and realizing their dreams, even in the face of adversity.

Major social, political, and environmental events have had a substantial impact on the lives of the new generation, such as rising economic inequality, armed conflicts, massive immigration waves, rallies against racial injustice, the climate catastrophe, the worldwide pandemic, and so on. It is for these reasons that Gen Z takes a more practical approach to employment, and it might be the first digital generation to prioritize mental health while also demanding workplace diversity, equality, and inclusion.

The new generation represents the future of the marine landscape and will redefine all previously recognized sea routes. Gen Z believes that every economic perspective should align with activities for long-term environmental management, leveraging new technologies as a tool. So, every challenge that shipping faces as it moves towards the sector’s green transition is part of Gen Z's journey to working adulthood.

Maritime education should respond to environmental, social, and technological advancements while also providing graduates with the necessary skills for the future.

Education is the key With traditional employment patterns fading away as a result of digitization and automation, Gen Z will choose less conventional professional pathways. However, the educational process comes first. Fundamental changes in technology and market requirements necessitate continuous improvement in maritime education.

The Eugenides Foundation uses emerging technology to prepare those who will forge the world's future.

To facilitate Gen Z's participation in the digital transformation of shipping, maritime education and curricula must be one step ahead of current needs.

The traditional curriculum should evolve over time to reflect and draw inspiration from the industry's everchanging innovation. Maritime education should respond to environmental, social, and technological advancements while also providing graduates with the necessary skills for the future.

Digital transformation is less about remote learning and more about the hybrid

educational approach, which focuses primarily on classroom instruction. Students, educators, and the material being taught can all benefit from an improved relationship thanks to the digital tools that come with digital transformation.

Donations

At the Eugenides Foundation, we take substantial action to improve maritime education, including the donation of new forms of digital educational material and technological equipment to the Merchant Marine Academies (MMA). In addition, the foundation has made a donation of simulators for the maritime sector of Captains and Engineers to two laboratory centers, namely the 2nd Laboratory Center of Piraeus and the 1st Laboratory Center of Alexandroupolis, of a a total cost of 300,000 euros.

The Eugenides Foundation, the exclusive provider of educational material for the Merchant Marine Academies (MMA) through the printed books it has authored and published for the past 60 years, is dynamically moving forward to produce new digital educational material, starting with a new online digital interactive system for the hybrid teaching of the Maritime English course in all MMA teaching semesters.

The system is already under pilot application at two MMAs, following a Eugenides Foundation donation of the required technological equipment.

Leonidas DimitriadesEugenides President, Eugenides Foundation; Goodwill Ambassador, IMO Greece

MARITIME LOGISTICS

Disruptions in global seaborne trade and alternative ways to deal with them

Twenty five years ago, in a MEL Editorial (Maritime Economics and Logistics (quarterly). Published by Palgrave Macmillan Springer. https://www.palgrave.com/gp/ journal/41278.), I coined the term ‘maritime logistics’. That was the time when the maritime industry was viewed as a segmented collection of loosely related sectors like seaborne transport, ports, inland distribution, and everything else (banking, insurance, customs, etc.) in between. In academia too, there were journals about shipping, or about rail transport, or transport planning and more. A holistic approach to processes, all the way from the production of a shirt in Vietnam to its right place on shelf at a Paris boutique was missing. The need for an integrated supply chain approach was not felt; why should it? Actually, outside the military, the word ‘logistics’ was not even fully understood, sometimes confused with something else (In Greece, for instance, the word was confused with ‘accounting’ (λογιστική - sounds like ‘logistiki’)..

By a stroke of good luck, however, this was also the time when information and communications technologies (ICT) were entering the bigger picture, changing our lives for ever. Nostalgically, I cannot help remembering dial-up connections to the internet; searching the net with 20 different search engines, or trying to understand what on earth was that thing they were calling Google (Not to mention submitting research papers in hardcopy and communicating by fax!). And at this juncture of my narrative I crave to say what I failed to say 30 years ago, when the

Hercules Haralambides

internet was taking over our lives: we are lucky today to be unable to even imagine where generative artificial intelligence will have taken us thirty years from now.

One of the effects of ICT was to help people realize the benefits of integration; in other words, the gains enjoyed from logistics and supply chain management thanks to the elimination of transaction costs. Among the first to seize this opportunity were ocean container carriers (Figure 1): global multi-billion enterprises like Mediterranean Shipping Company; Maersk Line; Cosco, CMA CGM and Hapag Lloyd. Their thinking was obvious: port-to-port transportation had become homogenized: carriers had more or less the same ships and technology and, for their client, the shipper (cargo owner), it made little difference really if his container would arrive to Europe on a Cosco or a Hapag Lloyd ship. Carrier competition was thus excruciating, squeezing margins and increasing the business risk from owning hard assets like ships, in a cyclical industry. Carriers were thus realizing that survival meant two things: either they collude, rather than compete, or differentiate their services, targeting the individual exporter; or both.

In the seaborne transportation of containers, collusion means two things: price-setting liner con-

* Hercules Haralambides has been a professor of economics since 1992. He has taught at 9 universities (and 7 different countries) mainly at Erasmus University Rotterdam, Sorbonne (currently), National University of Singapore (NUS), and Singapore Management University (SMU). He also holds the chair of 'distinguished professor' of Maritime Economics and Ports at China's Dalian Maritime University. He is the founder of the Erasmus Center for Maritime Economics and Logistics (MEL), and the scientific journal Maritime Economics & Logistics (MEL), published for the past 25 years by Palgrave-Macmillan (www.palgrave.com/41278). He has written more than 400 scientific articles, books, reports, etc., in the broader subjects of geopolitics, strategic infrastructures, shipping, ports and supply chain. Hercules has been an advisor to governments, international organizations and the private sector, while for a number of years he worked closely with the then EU Transport Commissioner, Neil Kinnock. In the period 2011-2015, alongside his academic duties, he served as head of management of the Italian port of Brindisi. In 2008 he was decorated with the Golden Cross of the Order of the Palm by the President of the Hellenic Republic.

Professor of Economics*

“NVOCCs are virtual carriers operating without ships, just chartering as much capacity as they required each year.

ferences (banned from European trades in 2008 but existing in the rest of the world), and cost-minimizing global shipping alliances (also to be banned from Europe in 2025). These two forms of carrier cooperation, as I discuss below, go a long way towards explaining, only partly I should say, the ‘stress’ on maritime supply chains which is the quintessence of this chapter.

Targeting the individual shipper by offering him tailor-made door-to-door solutions required a very different business model. Now, instead of relying on a freight forwarder to fill his ship (something I have called ‘wholesale shipping’), the carrier had to develop an extensive sales network of thousands of employees around the world who would talk regularly to the shipper, trying to book his business (I have termed this ‘retail shipping’). Some shippers have been responsive; mostly the bigger ones with a need for sophisticated solutions. Others required just port-to-port pricing, thinking that it would be better to organize the various supply chain components (e.g., hinterland transport) by themselves.

The two business models have a different cost structure (Figure 2): In the wholesaler model, the greatest chunk of total costs concerns ocean transportation (55%). In ‘retailing’ instead, the bulk of costs (in addition to manpower of course) regards container management; land transport; warehousing and distribution.

Stepping into door-to-door transport, carriers came into direct competition with logistics service providers, known also as third party logistics service providers (3PL), and NVOCCs (non-vessel owning common carriers). The interesting fact is that these companies are both competitors and clients of the carrier. The first, 3PLs include the likes of DHL, FedEx, UPS, Kuehne + Nagel, and many others. Many of them started as conventional post offices, building on their expertise from the local distribution of letters to the global distribution of big parcels and finally containers. Their global logistics operations may require hundreds of thousands of containership slots, which they must buy from carriers. They thus become clients of the carrier while at the same time being their competitor.

An NVOCC, as the name suggests, is a virtual carrier; i.e., one who operates as a (common) carrier albeit without ships. 3PLs can be NVOCCS, as can also be the large freight forwarders. The model here is simple: instead of owning shipping capacity, along with the risks that this entails, NVOCCs just rent from the carrier as much capacity as they require each year. Knowing fairly accurately their short-term demand of ship capacity, NVOCCs thus ‘ride the cycle’, rather than sink

with it, as the carrier does when things don’t go well. Reducing in this way their market risk, NVOCCs improve their results. In Figure 3 we can see that logistics companies tend to be valued higher than pure transportation companies. By being asset-light, thus able to ‘ride’ the business cycle, they have always performed better financially during economic downturns and recessions. Moreover, due to their broader diversification, logistics revenues are more stable over time. The model is not much different from the Make-to-Order model of up scale car manufacturers whereby production starts only as soon as a ‘batch’ of, say, 1000 car orders comes in from their dealers.

An interesting question arises at this point. Why would a carrier sell capacity to his competitor? Why would he give away his comparative advantage, i.e., the ownership of the ship, when he himself tries to enter the

logistics market? Doesn’t this look like giving your enemy the knife to stab you in the back? I have been debating this question with carriers for years. Their answers do not vary much, but let me describe this discourse in the form of a rather entertaining dialogue:

 Why do you sell capacity to the logistics guys?

 They are big customers who help me fill the ship.

 But if you cannot fill it yourself, together with your alliance partners, why do you build big?

 To have economics of scale

 But you can only have economies of scale, and thus improve competitiveness, if you can fill the ship!

And somewhere here the discourse always stops.

Eventually, carriers saw the light: better

FIGURE 1: FROM TRADITIONAL TO INTEGRATED APPROACHES IN SHIPPING

Source: Haralambides (2019)

FIGURE 2. SHIPPING BECOMING A COMMODITY

FIGURE 2. SHIPPING BECOMING A COMMODITY

coordination with alliance partners would be the way forward, both for building bigger ships and for utilizing them better. Alliances thus became the mainstay of the industry, particularly after the abolition of liner conferences from European trades in 2008 (Ju et al, 2023).

As I said above, the two forms of cooperation in liner shipping, conferences and alliances, could help us explain ‘stress’ in supply chains or, better, the lack of necessary ‘slack’, or ‘redundancy’, or ‘excess capacity’. Stress can be caused either by our operating model (e.g., alliance agreements), or by unforeseen external events (e.g., COVID-19). In a number of my earlier publications (cf., for instance, Kent and Haralambides, 2022), I have thus tried to see slack as an important operating cost --rather than as evidence of inefficiency, which is the usual way of looking at it by the layman-aiming to ‘absorb’ the effects of stress. Ports

and container terminals offer us an excellent example of this: through many studies on the issue of congestion, it has been established that when a port (or terminal) exceeds 75% of capacity utilization, congestion starts to set in, and this would not be acceptable to today’s carrier who wouldn’t hesitate a minute to switch port and move his business to our next door competitor. One should not forget that the container is ‘footloose’, without much sunk costs or loyalties to a specific port. Thus, building and maintaining excess capacity in port is a necessity and a cost; often, this is something difficult to explain to public and private financiers of port infrastructure.

Similar was (and is) the situation with liner conferences: as price-setting cartels, conferences were in a position to enforce tariffs that covered the costs of all their members, even the most inefficient ones. Excess capacity was

thus built into their port rotations, filling the ship was not so important, and prices were stable to the extent they were even published in conference tariff books. Growing the business was easy and their market expectations were adaptive (Fusilo and Haralambides, 2020): in other words, pricing was a ‘steady as she goes’ decision which extrapolated the past into the future.

The situation in aviation, before our ‘open skies’ policies, wasn’t much different and this is another good example of imperfect competition whereby an aviation cartel (IATA) would build-in excess capacity. Legacy carriers, national champions like Pan Am, TWA, Sabena, Varig, etc.), many of which are defunct today, would offer sufficient capacity at stable prices, known months in advance. In contrast, if today you try to book a flight on the internet, the price may change twice before you

“

There is no end to the exercise of minimizing costs - an exercise often exceeding the limits of ridiculousness.

Source: Bloomberg

“The more finetuned a system is, the more profound are the effects and ramifications of a disruption in the absence of slack.

complete the transaction and this is extremely frustrating. This is called ‘yield management’: a difficult mathematical optimization, addressed in countless PhDs we have supervised on the subject, but an absurdity nonetheless, highlighting the downside of too much marginal cost-based competition and the potential benefits to be had from concentrating decision-making, looking, rather, at long-run average costs.

With GSAs, however, the ‘deal’ and its effects are very different. Here, the emphasis is not on revenue maximization (conference price-setting) but on cost minimization. And this is where the problem starts, for daily business has taught us that there is no end to the exercise of minimizing costs; an exercise often exceeding the limits of ridiculousness. In alliances, cost minimization entails sharing capacity, jointly planning itineraries and deciding on the types of ships to be deployed, or even sharing capacity on a single ship. It thus becomes obvious, doesn’t it, that cost minimization does not allow any ‘slack’. We saw the result of this during the COVID-19 pandemic, with blank sailings, big call sizes, irregularity, unreliability, missing and misplaced containers, complaining shippers, and regulatory intervention:( The words of an 'angry' President Biden, responding to complaints of

US exporters, who were unable to find empty containers during the COVID-19 years, or sometimes waiting for weeks at Los Angeles to take delivery of their import container, are quite lucid of the situation: [...nine major shipping companies consolidated into three alliances control the vast majority of ocean shipping in the world and each of these nine are foreign-owned. During the pandemic, these carriers increased their prices by as much as 1000% while families and businesses struggled around the world. These carriers made 190 billion dollars in profit in 2021, 7 times higher than the year before and they raked in the profits, and the costs get passed on as you might guess, directly to the consumers sticking it to American families and businesses. These foreign-owned carriers have also been refusing to carry American-made products back to Asia…].) in short, we’ve had a ghastly mess. However, the more fine-tuned a system (or a network) is, and the more sophisticated its optimization, the more profound are the effects and ramifications of a disruption in the absence of slack. The stress on supply chains is in such cases sizable. The Netherlands, for instance, boasts a road network that ranks among the best in the world in terms of quality and sophistication. As long as things go well, the flow of traffic is smooth, even during

morning peak periods. The minute a serious accident takes place somewhere, however, the whole country can come to a standstill, with tens of thousands of kilometers of queues. Such disruptions, if frequent, have some other, graver, ramifications. As I said above, logistics optimization (together with containerization) did not only change traffic, transport and trade, but it changed our lives and the way we go about our daily activities. The prerequisite for this has a name: “reliability”. When, for example, I go to the airport, I know, to the minute, what time I must leave home. If, however, taxis are on strike, trains do not run, etc., I need to leave home one hour earlier; this is my own ‘inventory cost’, and a cost it is! Stress on supply chains is not caused only by unreliability and the ensuing higher inventory costs, but also by external, unforeseen, and unanticipated shocks, such as COVID-19, discussed above. Generalizing, any obstacle or hindrance to the smooth flow of trade imposes stresses on fine-tuned supply chains. Such hindrances can be what I call ‘chokepoints’. Below, I discuss some representative examples, together with the ‘safety valves’, that may or may not be at our disposal to by-pass them. In Figure 4 one can see the three chokepoints I will discuss, together with their (possible) by-passes, the latter motivated by concerns

about the security of navigation and of naval deployments (Haralambides and Merk, 2020). Out of the many such bottlenecks to trade, I consider these three as the most important. Specifically, these are (by-passes in parentheses): Suez Canal (Cape route; northern sea route; IMEC (India-Middle East-Europe-Economic Corridor); Eurasian rail landbridge); Panama Canal (Suez Canal; North American landbridge; Nicaragua Canal (shelved); PILA (Puerto Internacional Las Americas, Colombia); and the Malacca Strait (Kra Canal, Thailand).

The Suez Canal

At the time of writing, the Bab al-Mandab Strait, this most crucial chokepoint of international trade, is making headlines, due to the Houthi militia attacks on commercial shipping, as a quid pro quo for the Israeli attacks on Gaza. The roots of the civil war in Yemen are far too complex to be analyzed here; this would go beyond this article’s scope anyway. However, one might not be totally wrong in seen this conflict which, in ten years, has claimed the lives of more than a quarter million people due to the hostilities and their consequences, as the terrain of Saudi-Iranian rivalries. With the accession of the two countries to the BRICS (effective January 1, 2024),

the world had hoped that a kind of rapprochement among the two arch-rivals was in the horizon, brokered by China: Saudi Arabia’s biggest oil buyer. Unfortunately, at the January 2024 Davos meeting in Switzerland, Saudi Arabia announced that “Saudi Arabia has not yet joined BRICS” (Reuters, 2024). Apparently, the country’s indecisiveness is not totally independent neither from the evolution of the Gaza/Red Sea situation nor from, again, the heightened frictions between China and the US, in spite of the warm encounter of the two leaders, Joe Biden and Xi Jinping, at the San Francisco APEC meeting in November 2023.

But the present day is not the first time the Canal chokes trade since its inauguration in November 1869, at a grand international event, frequented by royals and dignitaries from around the world, immersed in the divine sounds of Verdi’s Aida. The canal has since closed three times: in 1956 (the Suez Crisis); 1967 (the Six-Day War); and, in 1973 (the Yom Kippur war), and whenever there were concerns about the security of navigation and of naval deployments (Haralambides and Merk, 2020).

The Bab al-Mandab Strait, the southern entrance to the Red Sea in the Gulf of Aden (Figure 4), is the Cerberus (The ferocious three-headed dog that guarded the entrance to

the underworld (Hades), according to Greek mythology.) that ‘guards’ the entrance to Europe of Persian Gulf oil and Asian manufactures. Shared by Yemen, Eritrea and Djibouti, the strait has a width of approximately 30 km, divided into two channels by Perim Island (AlYadomi, 1991). The strait makes the strategic importance of the Gulf of Aden even more important. The Gulf has traditionally been plagued by high levels of piracy activity, smuggling, and illegal arms trafficking. International cooperation initiatives and regional laws (e.g., of Djibouti) have been rather unsuccessful in improving the security situation in the Gulf, where many major powers, including China (in Djibouti) and the US, are maintaining a military presence.

Recently (March 2021), another -commercial this time- event blocked the canal for six days wreaking havoc on international trade: hundreds of ships were stranded at the two ends of the canal, disrupting supply chains and increasing inventory costs by billions of euros each day. This was the running aground of Evergreen’s mega-ship ‘Ever Given’, at the time one of the biggest containerships in the world (20,124 TEU). The 400-meter giant wedged sideways in a 265-meter-wide canal and the mission to dislodge and refloat it demanded unprecedented international efforts including

“

Without economic ‘survivability’, environmental sustainability is a mere empty shell, an ocean without fish.

FIGURE 4: CHOKEPOINTS AND INTERNATIONAL TRADE FLOWS

“The Suez Canal serves 12%-15% of international trade - on average, 50 ships transit the waterway every day.

dredging, towing, and lightering (Figure 5)

The Suez Canal serves 12 to 15 per cent of international trade, being the principal artery of the Europe-Asia cargo flows. It is estimated that, on average, 50 ships transit the infamous waterway every day. Alternatives (by-passes) do exist however (Figure 4), albeit at higher costs, longer distances and higher environmental impacts. Let us see them next.

Circumnavigating Africa: The Cape Route

The first, but by no means new, alternative to the Suez is the circumnavigation of Africa, known as the ‘Cape Route’ (sailing around the Cape of Good Hope). The route adds approximately 4,500 nautical miles (or 8,000 kilometers) to the distance between Shanghai and Rotterdam and, depending on sailing speeds, 12 days in additional sailing time, assuming an average speed of 16 knots (Notteboom et al, 2024). To maintain weekly schedules, this would require two extra ships per loop, or about 200 ships in total.

South European ports are affected even more by the Cape route, as ships now have to approach these ports via the much longer distance through the Strait of Gibraltar (Figure 4). The impact of the crisis on the Med hubs of Piraeus, Genoa, Malta, Valencia, etc., is

graver than this though. The Med Basin, the Romans’ Mare Nostrum, is what I have often called the ‘hub of hubs’ and perhaps the most important sea stretch in the world, connecting four continents: The Middle East (Asia); Europe, Africa and North America. Especially as regards the latter, Suez has been functioning in competition to the Panama Canal for the North American East Coast (ECNA) market, housing the richest consumption centers in the world. Simply, ships from Asia transiting the Suez could transship in a Med hub and continue crossing the Atlantic to the ports of New York - New Jersey (NYNJ), Norfolk, Savannah, Charleston, and Halifax (in Canada). These trades are now largely lost to the Atlantic ports of West Africa and Portugal.

In the present (2023-4) Red Sea crisis, the impact of the Cape rerouting on the running and voyage costs of ships, consequently on freight rates too, is not difficult to comprehend: ITF (2024) has calculated an average cost increase of $272 per FEU for a median-sized containership while, in the beginning of the crisis, freight rates increased by more than 200 percent, both to northern Europe and the Mediterranean. As an example, the Shanghai Containerized Freight Index (SCFI) for North Europe increased from $707/TEU in mid-No-

vember 2023 to $3,103/TEU in mid-January 2024. Similar were the price increases in the Mediterranean services. I would be remiss not to mention ad passim here that such rate hikes (and related surcharges) cannot be easily justified by the above cost increases, leading one to again comment on the lack of adequate competition in container shipping. With regard to the higher environmental costs of air emissions as a result of the Cape rerouting, these have been estimated at 42% for an individual vessel, and 67% for the fleet needed to operate a typical weekly service Asia - North Europe (Notteboom et al, 2024). These are bad news in the efforts of shipping to respect IMO targets towards reaching ‘net-zero’ by 2050.

The Northern Sea Route (NSR)

The Arctic Northern Sea Route (NSR), (Figure 4), is a niche alternative to the Suez, studied and tested over many years, by major companies such as Cosco and Maersk. The route, connecting East Asia (Japan, China, Korea) to Northern Europe, is 40% shorter compared to the Suez route and, as a result of the accelerating melting of Arctic ice (due to global warming), it could potentially claim an increasing share of the Suez traffic, in the

North American landbridges

Panama Canal route

Panama Canal

ECSA (East CoastSouth America)

ECSA

Nicaragua Canal (shelved)

North Europe

Strait of Gibraltar Suez Canal Red Sea

Suez route Strait of Bab Al-Mandab

Cape route

Cape of Good Hope

Strait of Malacca India

(India-Middle East-Europe Economic Corridor) IMEC

Kra Canal (proposed) China

Eurasian rall landbridges

Northern Sea Route

Source: Notteboom et al (2024)

Transpacific WCNA (West Coast North America)

Transpacific WCNA (West Coast North America)

Panama Canal route

bilateral trade between China and the European Union which is rapidly approaching one trillion US dollars. As Figure 4 shows us, the NSR runs along Russian territorial waters, with various, and costly, navigational control stations which, among other things, might raise legitimate maritime law questions on the freedom of navigation principle. In terms of trade benefits, the main beneficiaries are China and Russia, the former hungry for the rich resource endowments of the Arctic, comprising first and foremost its vast quantities of natural gas.

Reducing sailing distances has various advantages in terms of fuel consumption and atmospheric emissions. To a great extent, however, NSR benefits are eroded by the high cost of ice-class ships; slower speeds in ice navigation; use of Russian (nuclear) icebreakers; control station passage fees, etc. Moreover, ports along the way are not yet prepared for this trade and it will be years, if ever, until this new alternative to Suez presents itself as a serious contender in the Asia-Europe trade.

The India-Middle East-Europe corridor

The idea of a new corridor, which could offer a routing alternative to Suez --and perhaps a potential ‘competitor’ to China’s Belt and Road Initiative (BRI)-- was introduced by President Biden at the G20 summit in India (September 2023). The underlying objectives of IMEC are not much different to those of BRI and of multinational trade corridors in general: to improve the economic, social and political integration of the involved countries through regional development and better connectivity among their ports. The $20 billion IMEC project would shorten distances by 40% vis à vis Suez, connecting India to Europe via a complex sea-rail multimodal system. Specifically (Figure 6), the west coast of India, starting from the newly licensed mega-port of Vandhavan (Figure 6) would connect by sea to Dubai. There, containers are loaded onto trains transversing Saudi Arabia to reach the Israeli port of Haifa in the Eastern Mediterranean. The final leg of the corridor is again ‘maritime’, bringing containers from Haifa to the south European ports of Piraeus, Genoa and Marseille and from there, by road and rail, to the rest of continental Europe. In addition to trade, the project envisions underwater cabling for the transference of electricity, communications and internet.

Detailed studies have not yet emerged, something that reinforces criticism that the whole thing is a mere sensationalism. Indeed, some preliminary costings and timings I have attempted show that the number of necessary transshipments and the limited capacity of the (rail) leg pose neither a serious threat to Suez nor to BRI.

The Med Basin, the Romans’ Mare Nostrum, is what I have often called the ‘hub of hubs’.

1.Tugs

1.Tugs

2.Dredging

3.Lighten the load

FIGURE 5. DISLODGING AND REFLOATING THE EVER GIVEN CONTAINERSHIP

Ship 400m long and angled across canal

Digger used to excavate bow Tugs attempt to pull and push the ship free

Sand and silt removed from underneath the bows using suction allowing it to float free

Cargo and fuel could be removed to reduce weight and make the ship float higher in the water

“The construction of the Panama Canal took a good ten years and thousands of workers died from tropical deceases.

In spite of India’s obvious interest in the project, the country has never relinquished her interest in Russia’s International North South Transport Corridor (INSTC) which, starting from the Iranian Gulf port of Chabahar, continues north, over a distance of 7,000 km, eventually reaching Moscow, calling on its way at Tehran and Baku (Azerbaijan) and, from Moscow, branching out westwards to Turkey (for solutions offered by air transport as well as by the Eurasian rail network, the latter promoted strongly by China as the Belt part of her Belt & Road Initiative (BRI), see Haralambides and Merk (2020) and Notteboom et al (2024).

The Panama Canal

Next to the Suez, the Panama Canal is the second most important artery (and chokepoint) of international trade, connecting the Pacific with Atlantic oceans, thus feeding mainly the east coast of the Americas with Asian exports and, as of recent, supplying Asian markets with US natural gas and Latin American agricultural produce.

The construction of the canal took a good ten years and thousands of workers died from tropical deceases in the excavations, both during the failed French efforts of Ferdinand de Lesseps (1881-1894), and the subsequent US ones of 1904-1914. The canal was inaugurated on August 15, 1914.

A significant competitor of the Panama Canal in supplying with Asian products the East Coast of North America (ECNA), is the US Landbridge (Figure 4) and to a lesser extent the circumnavigation of the treacherous waters of Cape Horn, the southernmost tip of Latin America. As an alternative intermodal corridor, the landbridge was developed in parallel with the construction of the post panamax ship (cf. below). Simply, Asian cargo is unloaded at the North American West Coast (WCNA) ports of Los Angeles, Long Beach, Oakland, Seattle, Tacoma and Vancouver (in Canada) and from there containers are loaded onto railcars and road vehicles, travelling an average distance of 4,000 kilometers to the US Midwest (Chicago, Detroit) and ECNA.

Recently (2023-2024), the fresh-water Panama Canal has been suffering from low water levels, due to drought conditions (limited rainfall). This has deprived the canal of roughly one third of its traffic and, combined with the Red Sea crisis, has created a ‘perfect storm’ (Kent and Haralambides, 2022), when it comes to supplying the ECNA. On the positive side, the new situation has strengthened the position of the WCNA ports --and, apparently, of the US Landbridge-- which have been losing out consistently to the ECNA ports in the past few years.

For nearly 10 years, up to the late 1980s,

the maximum size of containerships had remained stagnant at around 4,500 TEU. These ships have come to be known as the Panamax Containerships, which are to many the workhorses of the industry. The limiting factor to the growth in ship sizes was the Canal itself whose locks were 33.5 meters wide. This meant that a ship could not be wider than that, i.e., wider than 13 (containers)-across the vessel’s beam.

In 1988, American President Lines (APL) of Oakland, U.S.A., made the bold decision to introduce the C10 class of vessels with a beam (width) of 39.4 meters ( 14 or 15-across). These were the first ‘post-panamax’ ships, for they could no longer transit the Canal. After this, the growth in containership sizes has been unstoppable (Figure 7)

The thinking of APL (and all other carriers who followed them in the 1990s) was simple, as must be all solutions to complex problems (To quote Bill Gates, "if I want solutions to a complex problem, I give it to a lazy person; I can thus be sure he will find the simplest and quickest solution". ): the economies of scale of the largest, post-panamax, vessels; the money we save by not paying canal dues and fuel costs; and the time-savings we achieve thanks to the landbridge, should allow us to offer intermodal rates attractive enough to ECNA

consignees (cargo receivers), vis à vis those of the ‘all-sea route’ (i.e., through Panama). Moreover, and as far as we are concerned, thought the management of APL, having a uniform size of vessels (no size limitations existed at the time for Suez transits) is a most valuable operational advantage, in terms of ship swaps and fleet scheduling, that cannot be ignored. The spectacular growth in ship sizes --at the time of writing approaching the 25,000 TEU milestone-- obliged the canal to expand its capacity with a new set of locks, parallel to the old ones, at both entrances (oceans) to the canal, allowing passage to ships of ‘22-across’ (or approx. 14,000 TEU). These are now known as the Neo-Panamaxes. The expansion cost Panama a good $6 billion. As to be expected, Egypt followed suit, now offering a two-way traffic in Suez at a massive cost of nearly $9 billion. Once again, interesting questions are raised as to whether the two canals compete or collude.

In spite of the millions spent on research, on global trade forecasts and feasibility studies concerning the expansion of the canal, projected at a cost of nearly $6 billion, the capacity of the new locks was soon to be obsolete, presenting a new limitation to the newest generations of containerships, built far bigger than 14,000 TEU. Didn’t the Panama Canal

FIGURE 6.THE INDIA-MIDDLE EAST-EUROPE CORRIDOR (IMEC)

Authority see this coming? I believe they did, but there were two important parameters they had to take into account (other than costs, of course): i) the rocky seabed of the USEC, making dredging costs prohibitive and ii) the (tidal) clearance under some bridges of the New York - New Jersey port system, which do not allow passage of the latest generation of containerships underneath them.

A digression

It might be interesting to make a digression at this point which some of my readers may find interesting or useful. Despite the continuous capacity increases of today’s ‘giants’ (Haralambides, 2019), it seems their dimensions have remained unaltered to what I have earlier called the universal constant of 400-60-16. That is, 400 LOA (length overall); 60 meters beam and 16 meters draft. Naval architects have optimized designs, turning ships into floating platforms, not limited by the usual v-shape of a ship’s hull. Will we see a new universal constant any time soon? Probably. Starting with Rotterdam’s RWG (Rotterdam World Gateway), major hub-ports are ordering the newest generation of Ship-to-Shore (StS) cranes with a boom (The horizontal arm of the crane (Figure 8) along which a trolley runs back and forth, landing containers on the ter-

minal's apron or, directly, on a railcar, chassis, internal terminal truck, or AGV (Automatic Guided Vehicle) of 65 meters, meant for ships of 26 rows or 30,000 TEU. This, if widespread, and widespread it will be, should entice carriers to build ships of that size. A ‘chicken or egg’ question arises again: does port technology adapt to ship sizes, or vice versa? Over the years, my answer has been unswerving: the critical ‘variables’ leading to gigantism in shipping (Haralambides, 2019) are port technology, efficiency and productivity; simply, it is those advancements that minimize ship turnaround time and ship stay in port.

And as one thing brings up another, I couldn’t help but remark here that the nervousness of ports to achieve technological prowess is driven by regional port competition; and often, as it happens in ports, competition breeds waste(not to be confused with slack capacity.). Recently, the new tendency in port policy, pioneered by China, is port coopetition: an area I have been working on for years with my Chinese (and other) colleagues (Munim and Haralambides, 2018; Wan et al, 2020; Wang et al, 2021; Ma et al, 2021; Li et al, 2022). In short, regional port infrastructure ought to be centrally planned, to avoid wasteful duplication of resources and situations whereby carriers play one port against the oth-

er. Subsequently, the private sector is invited, competitively and in competition, to develop and manage this infrastructure.

The ratio of LOA to BEAM is fairly fixed and, in today's designs, ships become bigger by becoming wider rather than longer. Sausage-type ships are not possible for a number of reasons, including ship safety at sea: Found on the crests of two waves, in a rough sea, a fully laden ‘sausage’ can break in two like a cucumber. Had it not been so, would we be able to build larger ships by making them longer, while keeping their width constant, the cargohandling problem could be easily solved by adding an extra StS to the operation, so that the ship could still be able to be turned around in the same time; today, in a couple of days. However, the minute the ship becomes wider, e.g., 25 or 26 rows wide, all our StSs of a boom of 60 meters or less become useless and in need of replacement with the new generation, costing well in excess of $10 million each. Considering that in a two-berth, 1 km quaywall, one would normally need 10 of these cranes, the cost of replacement is substantial particularly if you have to do this every seven to eight years, as I have calculated earlier [end of digression].

With China’s BRI expanding towards an ‘around-the-world’ concept, including Latin

“Recently, the fresh-water Panama Canal has been suffering from low water levels, due to drought conditions (limited rainfall).

Port

Sea Route

Countries connected

Marselle’s Genoa

Piraeus

Haifa

Jabel Ali

Vandhavan

Source: Khan et al (2024)

FRANCE ITALY

GREECE

ISRAEL

UAE

INDIA

“The spectacular growth in ship sizes obliged the canal to expand its capacity with a new set of locks.

FIGURE 8. LONGITUDINAL EVOLUTION OF SHIP SIZES AND WHARF CRANES (S t S)

America and Oceania, the Panama Canal, under its western control, could not but be a risk factor for China, similar to that of the Malacca Strait (cf. below). The Americans too would not mind at all had an alternative to Panama Canal existed. As always, when big money is involved, ideas do crop up: one, defunct now, was the Nicaragua Canal. Another, today, is a rather futuristic concept in Northern Colombia, presently soliciting investors for its finance.

The project, under the name PILA (Puerto Internacional Las Americas), developed by the Miami-based company Zergratran (I guess meaning Zero Gravity Transportation.), connects the Pacific with the Atlantic Ocean via an underground tunnel of 130 km. Post-Panamax ships unload containers at a fully automated pacific port (and vice versa in the Atlantic).

Containers are then placed on special Maglev platforms which take them, in 30 minutes, to a sister port on the Atlantic, to be loaded on ships again.

The Nicaragua Canal

Although defunct since 2018, the Nicaragua Canal is something that could not pass undiscussed for a number of reasons. Nicaragua is one of the poorest countries in the world and is the country of the Sandinista Daniel Ortega: the revolutionary Marxist president of the 1980s turned pro-business in his second term in 2007. The political history of the country, the Ortega revolution in 1979 overthrowing the dictator Anastasio Somoza, the fight against the pro-US ‘contras’ rebels, and the merciless policies of the US trade embargo, mining port entrances, and the most recent Biden prohibition of Ortega and his officials from entering the USA) makes fascinating reading to the political scientist.

The idea of cutting a canal through Nicaragua, connecting the Pacific- with the Atlantic Ocean (Caribbean Sea) (figure 4), as an alternative to Panama was not new, having been considered for centuries. In recent years, the possibility of hosting ships larger than the Panama limitations had given heightened impetus and was adopted with enthusiasm by the Ortega administration. Chinese funding emerged (up to $50 billion) through the Hong Kong-based company HKND.

The proposed sea-level canal, which opposite to Panama required no locks, had a length of 280 km, far longer than the Panama Canal, cutting through Lake Nicaragua, Central America’s biggest fresh water lake. At the time I had believed that the US would support the idea, which was offering them much shorter distances westwards to Asia (Nicaragua being north of Panama), i.e. much closer to the US and its exports of natural gas to Asia: a trade presently accounting for about 40% of the westward traffic of Panama. As it proved, however, politics are stronger than economics and

the US wouldn’t look eye to eye to a project controlled by China and competing to their own interests in Panama.

Eventually, Chinese interest waned and in 2018 HKND announced that they no longer had an interest. The true reasons of that decision are not known but one could imagine them. Publicly, however, economic and technical problems had been quoted, next to strong opposition by international environmental organizations such as Friends of the Earth and many others. Indeed, the impacts of the canal would have been significant in terms of displacements of population, peasant communities, wildlife and ecosystems. For one more time, a poor developing country was found unwilling to strike a balance between environmental sustainability and economic development.

The Malacca Strait

The Malacca Strait has been one of the world’s most important and thus busiest waterways, for time immemorial serving the east-west trade routes (Figure 9). Roughly 80 thousand commercial ships transit the strait each year and the heavy traffic gives rise to accidents, pollution and ecological degradation. These, together with territorial disputes and the longstanding piracy problem of the strait, continue representing problems in search of solutions, despite the conscientious efforts of the strait’s three lateral states (Singapore, Malaysia and Indonesia) and of the international community (US, Japan, Korea).

Deviating from the strait is only possible southwards through the Sunda Strait (Figure 9), between the Indonesian islands of Sumatra and Java which, however, adds 1,000 to 1,500 kilometers to the route, or two days of navigational time.

FIGURE 7. DEVELOPMENTS IN MAXIMUM SIZE OF CONTAINERSHIPS

FIGURE 9. MALACCA STRAIT, THE KRA CANAL (AND LANDBRIDGE) AND THE SUNDA STRAIT

India Myanmar

The Kra Canal

Similar to the Nicaragua Canal or the Colombian PILA, cutting out a sea-level canal across Thailand’s Kra Isthmus, would this time connect South China Sea to the Indian Ocean (Figure 9). The idea goes back four centuries. More recent discussions, however, have been invariably frustrated, mostly on grounds of national sovereignty, that is, concerns of surrendering control to foreign investors, notably China, which has always been eager to finance the works, interested in bypassing the risky, west-controlled, Malacca Strait. A cursory look at Figure 9 immediately shows us that the main beneficiary from the canal would be China and its ports (e.g., Shenzhen and Guangzhou), to the disgruntlement, however, of Singapore and the Malaysian ports of Tanjung Pelepas and Port Klang. In this regard, disturbing ‘equilibria’ among ASEAN countries has been another consideration of Thai governments, taking also into account a rather misguided US reluctance to concede trade control to China.

The KRA Canal would shorten east-west distances, say, from Shenzhen to Rotterdam, by 1200 km or, depending on sailing speeds, by two to three navigation days. At present, the Kra Canal might make even more sense in view of the Malacca Strait chokepoint and its above challenges. Projections, plans and budgets have been plenty over the years, in principle envisioning a canal of 100 km, 400 m. wide, and 25 m. deep, i.e., an artificial waterway that would allow passage of the biggest of ships. All

this is now shelved; recently (2023), the Thai Government enthusiastically proposed a $28 billion ‘landbridge’, rather than a canal, and, for one more time, China has been found ready to finance it. The project involves a 90 km rail and motorway system, connecting the two ports of Ranong and Chumphon where two new terminals should be built (accounting for the biggest chunk of the above budget). According to the Thai PM, the landbridge should now save 7 to 8 days of navigational time.

A final brushstroke

The above narrative, written in my unusual style that often scorns academic orthodoxy in writing norms, makes, or at least I hope it does, a final point. A lot of discussions and policy interventions take place lately, rightly so, on the health of our oceans and the worrisome ramifications of global warming.

In our noble pursuits to a sustainable planet, in our eagerness, anxiety and often desperation to finally do something about our grave environmental predicament, we tend to forget that the oceans are the lifeline of trade; and trade, this basic ingredient of our welfare, takes place mostly by sea. In this sense, our oceans are not ‘heated’ only by global warming but also by everything else --like the chokepoints I described above-- which obstructs the free flow of trade. This is something we should always keep in mind, for without economic ‘survivability’, sustainability is a mere empty shell; an ocean without fish.-

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“The idea of opening a canal through Nicaragua as an alternative to Panama, was considered for centuries.

Ranong Port LandBridge

Chumphon Port

Sri Lanka

2024: a year of disruption and opportunity

Shipping is being strongly affected by geopolitics but a combination of operational inefficiencies and stronger demand is driving positive sentiment

Adam Kent

Managing Director, Maritime Strategies International

Anyone hoping for a quiet start to 2024 in shipping would have been disappointed well before the midpoint of the year. By the end of the first quarter, the industry was still reeling from attacks on ships in the Red Sea, the continued fall-out from the war in Ukraine and the tragedy in Baltimore.

While the effect of the latter briefly sent shockwaves through the industry and the mainstream media, the former two continue to re-shape global trade. The impacts so far have been severe enough that some sectors have seen increases, in freight rates and asset values with longer voyage times pushing up carbon emissions, at a time when the industry is struggling to lower them.

Though the collapse of the Baltimore bridge briefly brought back memories of the Ever Given blocking the Suez Canal, remedial efforts to get the channel open began almost immediately, freeing up the bulk, car and container trades affected. While the legal arguments over responsibility and compensation will continue for a long time to come, attention has continued to be focussed on events in the Middle East.

In a first quarter which saw continued escalation in the war between Israel and Hamas in the Gaza strip, attacks on shipping grew more numerous and indiscriminate. As a side effect of this process, piracy of a type not seen since the early 2000s has also re-emerged as a threat in the region, adding further complication and risk.

The impact of the war in Ukraine has

From a short -term perspective, the 2024 tanker market outlook remains strong, with significant upside potential.

been more nuanced in the sense that Russian oil exports have continued to flow despite twin US/EU sanctions regimes. Dry bulk exports have also continued to emanate from Ukraine despite the high risks to vessels and seafarers.

The energy shortage, initially feared by western countries after the loss of Russian gas supplies, failed to materialise as alternative sources plugged the gap. The recent decision by the United States to pause further investment in new gas supplies may change that dynamic again but for now the supply chain appears resilient. The intensity of a war that is entering its third year suggests that no short term resolution is likely and further disruption cannot be ruled out.

Meanwhile attacks in the Red Sea - not to mention persistent constraints at the key Panama Canal chokepoint - have perversely continued to benefit vessel earnings so far this year for those sectors heavily exposed to canal passages. The effect of delays and diversions have served to lengthen sailing distances thereby tightening market balances. The prospect of those constraints lasting through to at least the second half of the year suggests scope for further gains, especially as we enter a seasonally-stronger environment for trade volumes.

From a short term perspective, the 2024 tanker market outlook remains strong, with significant upside potential. Asset prices also continue to appreciate, although the pace will naturally fluctuate. Q2 prices for Aframax/Suezmaxes put these ships very close to their historical maximums with other vessel sizes and ages a way off their high

water mark but beginning to close the gap. In dry bulk, the forward view is affected both by vessel diversions and a brightening economic picture. Recent economic data have signalled the prospect for a more widely-based and sustained growth in demand for and trade in dry bulk commodities. In particular, more positive manufacturing purchasing manager indices have been followed up by a notable improvement in industrial production globally. This increases our confidence in the view that 2024 will be another year of above-trend growth in trade volumes.

A similar story may play out in the container sector where MSI has forecast overall trade growth of 4.0% year-on-year in 2024, breaking a losing run of three out of the last four consecutive annual declines. The US economy in particular will play a pivotal role. Its so-far ‘bulletproof’ behaviour, benefitting from adjustments to inventory levels, slowing headwinds from 2023’s housing market downturn and growth in personal consumption and disposable incomes means consumer confidence continues to be robust.

However, the supply side picture is very different between the traditional commodity sectors of oil tankers and dry bulk versus the container sector. With scheduled deliveries for bulkers and tankers at multiyear lows the supply side for these sectors is conducive to market balances in 2024, whereas the container sector will have to absorb record deliveries this year.

Newbuilds: A big ticket with prolonged deliveries

The CEO of Goldenport Group, Yiannis Dragnis, speaks with "N" about the unpredictable elements of chance affecting the shipping industry, the industry's green transition, and the value of human resources both on land and at sea

By Antonis Tsimplakis atsimplakis@naftemporiki.gr

Today's shipping markets are heavily influenced by unpredictable events and volatile factors. Upheavals are affecting the patterns of the maritime sector, from the drought in the Panama Canal to the war in Ukraine and the crises in the Middle East.

The above was emphasised by Goldenport Group CEO Yiannis Dragnis in an interview with Naftemporiki. Goldenport is a group that specializes in wet and dry bulk cargo transport, as well as in marine tourism through Golden Yachts.

Regarding investing in new, eco ships to align with the goal of decarbonising shipping by 2050, Mr. Dragnis believes that "today, ordering new ships is a big ticket, and in fact with longer-term deliveries. There is no way to predict now for sure the prevailing conditions when the ships will be delivered in 20272028.”

Goldenport Group placed orders in 2019 and 2022 for eco ships using conventional fuels, while also considering methanol. According to Mr Dragnis’ projections, LNG, methanol, and carbon capture will be the leading technologies in shipping.

He also believes that human resources are the most crucial aspect in shipping, both onboard and onshore. In terms of marine tourism and yachts, Mr. Dragnis emphasises that the group wishes its activities to carry as large a Greek footprint as possible (shipbuilding in Greece and Greek personnel on a 12-month basis). However, he points out that "in the yachting business, all players must follow the same rules.”

Mr. Dragnis, the shipping sector is currently undergoing significant transformation. What, in your opinion, are the most challenging issues facing the industry today?

Good evening, and thank you so much for the invitation. I'd also like to thank you for your information services.

Regarding your question about the shipping industry, I believe that, while discussion in all forums are primarily focused on issues relating to decarbonisation of shipping and new technologies, I would like to initially to refer to what I believe to be the most important factor in shipping: human resources. Human resources, both in the onshore office and, of course, onboard - the sailors.

At Goldenport Group, we concentrate on improving human resource competencies.

The majority of the individuals working in landbased offices, captains and engineers, are seafarers, but there are also electronic and electrical technicians and shipbuilders. As a group, we concentrate our efforts on improving their skills through continuing education and training. We attempt to give young individuals the opportunity to advance professionally within the organization by providing ongoing training.

The same holds true for onboard crew, an area where we are faced with the known issue affecting the maritime industry: seafarer shortage.

Finding crews?

That's correct. Certainly, the Russia-Ukraine war has made things even worse. Conscription is currently in effect in Ukraine, which has further reduced the number of available Ukrainian sailors - a pool of exceptionally skilled officers for the ships.

For our part, we assisted our Ukrainian sailors

as much as we could. We helped many of them to come to Greece, and we also have offices in Georgia and the Philippines. In this way, I believe we have successfully addressed the issue of ship staffing.

However, in the future, we will still face new challenges relating to training in new technologies and know-how. This is what worries me most today.

And how do the new ships fit in with the new IMO regulations?

We placed orders for new ships as early as 2019 and 2022. I haven't placed any further orders since then. Even though we had a thorough discussion on decarbonisation, what kind of engine to install, and what type of fuel to use, I opted to go with eco ships that will use conventional fuel. This was based on the fact that no solutions have been provided until today, but new ships are in need now.

I should note, though, that we have made some steps for the use of methanol in some of our tankers. Although the current tendency is to go for LNG dualfuel, I am confident of the potential of methanol. But the major problem still stands with producing this fuel in large enough volumes.

Of course, it is much safer than ammonia. So, I believe that methanol and LNG, as well as later technologies such as carbon capture, will be the leading technologies. However, carbon capture is still in its early stages owing to a lack of infrastructure to handle demand.

There are currently some places equipped with the required infrastructure, like Amsterdam, but there is no worldwide supply network.

In light of what you mentioned, I'd like to ask you about the extent to which shipping has evolved from earlier generations?

We prioritize the quality of our services. Although we have been a listed company since 15 years ago, we are a privately-held company. In other words, we operate the company's ships. And I lay too much emphasis on product quality, i.e. the quality of the company's service: safety, quality, and punctuality are all essential. We also strive for excellent collaboration with those that must transport their products.

We follow the model of investing in this service, i.e. enhancing the manner in which we deliver the transport project. What differs with previous generations is sustainability.

To be more sustainable on all levels, from our employees to our customers. For example, onboard free internet (starlink), bedding, meals, and overall comfortable living arrangements.

Today's vessels are nothing like the ships of earlier shipping generations.

Allow me to share a tale with you that my father, Captain Paris Dragnis, told me. The trips he took as a captain lasted a year or longer. His mother would send him a letter, telling him to dress warmly because it was cold, but he would receive that letter months later, when the ship arrived in India and the temperature was 40 degrees.

Such things were indeed true in past decades. Conditions in the seafarer profession have changed

dramatically in recent years.

Thais story just shows how things aboard the ship have changed greatly in just one generation. The seafarer profession is, of course, a sector that offers excellent prospects for professional development in addition to highly competitive pay. It's also a highly fascinating career choice for a young person. There is never a day that is the same in shipping - every day is unique.

However, it is also very demanding. You must genuinely desire it, you must love this job.

What about Greek sailors?

Our pleasure boats are staffed exclusively by Greek crews. We have assembled a team of people with whom we collaborate on a permanent basis, rather than simply during the season of yacht cruises. That is, all of our sailors are permanent, all months of the year.

Greece has the expertise to train merchant marine officers. However, the Greek flag needs to be competitive both within Europe and internationally. The career offers in this specific industry are nearly limitless. The number of Greek-owned ships exceeds 5,000. But I'm not sure if the seafarer profession appeals to young people. Even though it is quite lucrative, I feel it is impossible to staff all ships

with Greek seamen.

But, for sure, there are work opportunities. Such jobs do exist, and they differ a lot from what they used to be like in the past. The hiring contract term used to be around 12 months, but now it is merely four months. Shore-based offices offer excellent career prospects, too.

We discussed purchases and shipyards. How is the industry's finance doing right now?

There is plenty of investment, at least for startups with what I believe is a viable business strategy, and with a good foundation, i.e they do need to borrow excessively.

I should note here that Greek banks have also done a fantastic job in financing and supporting Greek shipping. They have gotten extremely competitive. And they've been rewarded for it because entered the market reasonably early before it rose. They now hold a significant market share, and offer a highly competitive and earnest product. I can say that Greek banks have been a pleasant surprise during the past five years, with an excellent, profitable portfolio. And with shipping going currently so well, their portfolios will undoubtedly improve. However, both China and Japan are highly interested in the shipping finance department.

Despite the fact that, on the one hand, competition from Asia is increasing and, on the other, there have been successive crises over the last 15 years, Greek shipowners continue to dominate the global market. What do you think is their secret?

Being more sustainable on all fronts is what sets us apart from previous generations.

This is a very big question, because shipping in Greece is a massive industry, and many companies with extensive experience have their own unique perception of the shipping market. This could be the secret of Greek shipping: not everyone views the market in the same way. In my perspective, this is very positive because of the diversity that is evident in Greece.

Many segments of the market have undoubtedly benefited from recent developments. As a result, several businesses were able to expand by placing successive ship orders.

Of course, I must tell you that ordering new ships is a very big ticket today, and in fact with longer-term deliveries. We cannot predict for sure now what the conditions will be like when the ships are delivered in 2027-2028.

Such questions, about what will happen in a few years, cannot be answered even by the best analysts. And that is because geopolitics now affect also the maritime business - geopolitics and natural phenomena, too. Consider, for instance, the impact from the Panama Canal drought, which anyhow has now

According to Mr. Yiannis Dragnis, unpredictable elements of chance now influences the market's rise or fall more than it has in the past.

Newbuilds: A big ticket with prolonged deliveries

stared to improve. We always take into account the traditional fundamentals impacting shipping, including the order book or data on the world economy, but now, more than ever, it is the unpredictable elements of chance that drive the market up or down. Just like the conflict in Ukraine, which nobody could have foreseen. I fell that the Greeks, by their investing choices, will be able to continue managing one of the world's largest and youngest fleets.

Your Group companies’ ESG reports highlight that in your capacity as CEO, you endorse candid communication among staff members, financiers, and charterers to ensure the companies navigate their ESG journeys safely. How much do financiers and charterers assist shipping businesses these days?

My point is that all businesses must be competitive, but without focusing only on making money. You need to consider how the business will be structured and run and how it will survive for the nest generation. It is not appropriate to think just of today. Empowering a firm is the same as making it more sustainable and respectful of the environment and its employees. They all complement one another.

We have set certain priorities and plans for the green transition and alternative fuels. Such plans may not be financially viable from day one, but they are something we continually evaluate and always use the best practices to the fullest degree possible. Ultimately, anything that is sustainable is something that endures over time by definition.

Marine tourism

Your company has a very strong brand in the yachting industry, from the building of opulent vessels to their sales and chartering. However, apart from being the top destination, Greece has yet to build an industry on par with, say, Italy. Is it possible to establish a comparable industry in Greece?

It is a fact that Greece lags Italy in terms of industrial development. And this affects the entire economy, not just a specific sector. Even we work with Italian businesses on a number of production-related projects. As an illustration, we are unable to locate comparable high-quality boat interior products in Greece. As Golden Yachts, the firm that constructs the boats, we aim to have as much of a Greek footprint as we can. Therefore, we ought to be competitive with other European shipyards, as Europe is a global leader in this area, given that we enter the

fuel

For the last five years, Greek banks have proven to be a welcome surprise, building up a highly profitable portfolio.

premier show in Monaco each year with one of our boats. Most Mega yachts are constructed in Europe. We thus aim to accomplish both. As a corporation, we have assisted to the upgrade of numerous businesses in the field. When it comes to top yacht building, the level is still not where it should be.

Growth prospects?

In this industry there is an issue with human resources. Today, there are many opportunities to make a career in shipyards of this type, enjoying impressive earnings and prospects. It's sufficient that you wish to learn the specific skills.

There are needs at every level. There is great demand for quality craftspeople.

Regarding management, I think Greeks are out-

standing at all levels, the engine, seamanship, etc., and as I mentioned earlier, we have Greeks on land and at sea.

What do think of the institutional framework?

There are several issues, but sadly, our industry is not adequately represented. The Hellenic Professional Yacht Owners Association (HPYOA) and the Marine Chamber of Greece are working together on those issues, but unfortunately, the industry lacks a unified voice, as seen in ocean shipping matters by the Union of Greek Shipowners. Representation of the sector of pleasure boats needs to be improved.

Furthermore, several ministries are unaware of the sector's needs in terms of labour and chartering.

While it is a huge sector, other Greek shipowners have been investing in it as well. In fact, it is an industry that operates in Greece and pays taxes to the State, at least when it comes to firms holding a Greek operating license. The new regulation allowing third-countryflagged vessels to cruise in Greece for 21 days must be properly implemented. And I think it is questionable weather this is done.

However, I believe that issuing an operating license in Greece for a vessel flying any European flag is the proper approach to ensure that taxes are collected by the Greek government and that we have Greek seamen on board our vessels. I'll use an expression borrowed from Mr. Giorgos Vernikos. “Why create a loophole for foreign flags?” Why do this? It is better to integrate foreign flags. Let it be the same for everyone. The same rules must apply for all. Foreign flag boat operators pay an amount to the Greek state only for the 21-day period, but they do not pay insurance contributions to the Greek Navy Retirement Fund (NAT) or other taxes or duties as Greek firms do.

Shipping is arguably the most competitive industry in the world. It does not require the assistance of the State. In yachting, the rules should apply equally for all players.

Golden Yachts aims to have the biggest Greek footprint possible, emphasizes Yiannis Dragnis, CEO of Goldenport Group.

Mr. Yiannis Dragnis highlights the potential of methanol, alongside the dominant trend of dual

with LNG.

CONTAINERSHIPS TANKER SHIPS

LNG CARRIERS BULK CARRIERS LPG CARRIERS

Bulk carriers had one of their finest first quarters ever, while tankers maintained their 2022 upward momentum, large containerships are becoming bigger, yards are filling up with LNG newbuildings, and the LPG carrier market performed admirably against all forecasts

In the first half of the second quarter of 2024, ocean liners found themselves in a rather unusual situation, with all five major shipping subsectors displaying rate hikes and the vast majority of demand/supply balance indicating an optimistic outlook.

Looking at each of the major markets separately, bulk carriers experienced one of their finest first quarters on record, at a period that normally causes seasonal headaches to shipowners, thanks to robust Chinese imports and a reshuffle of trading patterns as a result of the Red Sea conflict. Large capesize bulkers led this increasing trend, following a frenetic rally until eventually correcting to a certain degree, while the medium and small sizes of the market trailed a little behind.

At the same time, shipowners' unwillingness to invest in new tonnage has kept the orderbook relatively low, with fleet growth likely to be especially slow until at least 2026. While recycling activity may be slow, the fleet's enlarged yet aging profile suggests that more tonnage will migrate to demolition yards in the coming years.

Moving on to tankers, the upward momentum that began in the second half of 2022 has remained strong, despite the high volatility prompted by a variety of causes. Geopolitical tensions are still the most pressing concern for shipowners. Decisions in the Middle East, Venezuela, and Russia have created an unsettled backdrop that has so far helped freight rates, while oil demand appears to be recovering faster than anticipated.

At the supply level, despite skyrocketing newbuilding contracts, the orderbook remains at levels that are lower than recent years’ averages. Of course, the favorable market prevents shipping companies from selling ships for demolition, which has boosted the proportion of vintage ships in the operational fleet up to 50%.

MARKET

By George Georgiou ggeorgiou@naftemporiki.gr

If shipping analysts had predicted an increase in containership rates in the first quarter of 2024, they would have been dismissed as untrustworthy, given the weak demand and the start of massive deliveries of newbuildings ordered during the massive rally in the past four years.

However, the Red Sea crisis completely changed the game, and the longer route from the Cape of Good Hope raised demand for higher tonnage, in turn driving up freight rates and asset values, mostly benefiting large containerships.

Of course, the market's struggles are far from over. As a proportion of the existing fleet, the orderbook remains extraordinarily strong, with many new ships set to launch this year and next. Despite predictions to the contrary, vessels making their final voyage to a demo yard are currently fairly rare, as even the older ships are in high demand to cover regional itineraries.

The LNG market has been steadily growing in recent years, fuelling demand for new ships capable of transporting the gas.

The significantly higher storage levels in Europe in the spring and summer of 2024 drive prices lower, while an increasing part of global LNG flows returns to developing Asian markets, which had turned to coal due to the recent period’s inflated pricing. China, Thailand, and Bangladesh are hitting import records, while the conditions are ripe for the rise of new players such as Vietnam and the Philippines.

This excellent import picture coincides with a period of export growth led by the United States, while Qatar has embarked on a massive development program, filling its yards with newbuilds.

All the while, the role of LNG is being further expanded, both as a source of energy diversification from Russian gas, with more FSRUs being built, and as an alternative fuel for ships.

Finally, the LPG carrier market’s excellent performance was against all predictions. Rates, particularly for VLGCs, have risen dramatically in recent months, owing mostly to crowded conditions in the Panama Canal as a result of drought-related crossing restrictions.

Demand for new projects remains high, and while the orderbook is in double digits, a large part of the fleet is more than 20 years old.

It appears that the ammonia trade by sea will increase, along with LPG.

This is at least shown by the large orders for VLACs placed between the end of last year and the present, many of which were placed by Greek shipowners who, if nothing else, are adept at "reading" the direction of the maritime markets

GREEK SHIPPERS’ $6.7-BN ORDERS SET NEW HIGH IN SHIPBUILDING

Greek shippers singed contracts for 76 newbuilds in the first quarter of 2024, with an overall capacity of 7.54 million dwt, budgeted at over $6.7 billion

By George Georgiou ggeorgiou@naftemporiki.gr

Some 58% of the contracts signed by Greeks so far this year involved Chinese shipyards, based on the number of ships. South Koreans saw their stake rise, securing approximately 34% of orders.

Greek shipowners are preparing to break the decade-long record for newbuild orders set in 2023, signing multiple contracts in the first half of the year, primarily for tankers and gas carriers.

Specifically, based on data shared with "N" by shipbroker firm George Moundreas & Company SA, between January 1, 2024, and April 15 of the same year, the "Greeks" ordered a total of 76 ships with an overall capacity of 7.54 million dwt, budgeted at over $6.7 billion.

In the first quarter of 2023, domestic shipowners placed orders for 69 ships with a total capacity of 7.3 million dwt and an estimated value of $5.2 billion. This was in a year where Greek orders climbed to their highest level since 2013 in terms of dwt.

The Greek orderbook increased in both capacity and value benefiting from a considerable increase in contracts for ammonia and LPG carriers, despite a

CAR CARRIER ORDERS - 2024

GAS CARRIER ORDERS - 2024

marginal drop in the tanker market compared to the previous year.

Scanning the Greek orderbook

A more thorough analysis of the Greek orders placed during the reviewed period shows that tankers accounted for the majority of shipbuilding orders, with 34 contracts, 13 of which involved ships for chemical and oil products transport. Most of the contracts for newbuilds are for Suezmax crude oil tankers, with a capacity of 158,000 dwt, in addition to contracts for four VLCCs. In the same period a year earlier, the Greeks inked agreements for 47 tankers.

Gas carriers jumped to second place this year, with contracts for 24 ships. Eleven of them will transport LNG, seven will carry only LPG, while the remaining four will carry ammonia/LPG. Merely nine gas carriers (five LNGCs and four LPGCs) were ordered in the first quarter of 2023. Of course, the contracts

SHIP TYPE ORDERS - 2024

for the 88,000 - 93,000 cubic meter large ammonia carriers (VLACs) are the most notable. The Greeks are pioneers in this area, which has seen strong growth from the second half of 2023 until the present, with an ever-growing orderbook. Finally, this year's orders for gas carriers include two ships capable of transporting liquefied CO2 with capacities of 22,000 cubic meters apiece.

Moving on to the other ship types, in the bulk carrier sector, the Greeks entered "shallow waters" by ordering 13 ships, the vast majority of which were kamsarmaxes. Domestic shipping companies committed to build the same number of ships in 2023 as well. At the same time, contracts for container ships resurfaced this year, but with a low intensity, with orders for two ships, each with a capacity of 8,258 TEUs, compared to nil market activity in the first four months of 2023.

Finally, on an annual basis, orders for pure car

TANKER ORDERS - 2024

CONTAINERSHIPS ORDERS - 2024

and truck carriers (PCTCs) increased in 2024 as well. Specifically, this year the Greeks singed deals for building three PCTCs, as opposed to none in the previous year. In fact, the Greek contracts specified ships with capacities of 4,200 CEUs and 7,000 CEUs (vehicle equivalent units).

China is the first choice, Korea is rising China's hegemony over Greek shipowners' tastes appears to be solidifying this year, though South Korean shipyards are gaining new impetus, bolstered by a robust investment plan spearheaded by the government in an effort to reclaim ground. Based on the figures, it appears that this plan is working, since the Greek orderbook's deficit with the Chinese has decreased dramatically compared to 2023. Another conclusion is that Japan has steadily declined on the Greeks' list of options.

More specifically, according to George Moundreas

& Company data, approximately 58% of the contracts signed by Greeks in the period under review this year involved Chinese shipyards, based on the number of ships. South Koreans increased their stake, securing approximately 34% of orders. Among the remaining shipbuilding countries, Vietnam (Hyundai Vietnam) accounts for around 5.3% of this year's contracts, while Japan accounts for 3%.

Notably, in the first quarter of 2023, the Greeks placed around 71% of new ship orders in China, with 21% in South Korea. In addition, Japan received 6% of the deals, while Vietnam received a mere 1.5%.

Green vessels

This year, Greek shipowners have intensified their shift to ships capable of using alternative fuels, building on tremendous progress made in previous years. Specifically, around 58% of the newbuilding contracts singed this year (based on the number of ships) con-

SHIPYARDS-BULK CARRIERS-2024

SHIPYARDS-CONTAINERSHIPS-2024

cern vessels that will be able to use new fuels either directly or after conversions (capable and ready).

LPG, ammonia, and LNG were prominent as propulsion options in this year's Greek orders, a condition that is, of course, linked to the expansion of contracts for gas carriers, as mentioned above. In contrast to worldwide trends, the Greeks are currently avoiding methanol. Another intriguing aspect is the mix of fuels, which indicates, on the one hand, that the dominance of a single fuel is not yet visible in the near future, and on the other, that the Greeks want to equip their ships with all technological capabilities in order to be prepared and reap the corresponding benefits when the time comes.

Orders were placed for 44 ships using alternative fuels. Of these, 17 will be LPG/ammonia-capable and

-ready, 17 will be LNG-capable and -ready, 3 LNG/ methanol-ready, 2 ammonia/LNG-ready, 2 methanol-ready, 2 with hybrid battery-LNG propulsion, and 1 will be LNG-capable/ammonia-ready.

As of the first quarter of 2023, only 29% of the new ships ordered by Greek shipping companies have alternative propulsion systems (capable and ready), meaning that the majority of the ships will be built to use only conventional fuels.

However, it should be mentioned that the traditional newbuilds will be constructed in accordance with the most recent emissions criteria set by the International Maritime Organization (IMO), meaning that they will comply with both current and future requirements. Lastly, the vast majority of newbuildings will have scrubber systems installed.

BULK CARRIER ORDERS - 2024

Tankers dominate the global orderbook

Together with the Greeks, the global shipowner community is ramping up the pace, having placed orders for 416 ships with a combined capacity of 33.41 million dwt, in the period under review. In comparison, between January and April 2023, contracts were signed for 368 newbuildings with a capacity of 21.8 million dwt.

The international trend appears to be consistent with the preferences of domestic shipping businesses, since tankers are the top choice. By a large margin in second place are dry bulk carriers and LNG/LPG/ammonia carriers.

In particular, orders for 167 tankers with a combined capacity of 17.1 million dwt were placed this year. The majority, 36 in total, will be MR2 tankers, followed by small tankers, with contracts for 26 vessels. The comeback staged by shipowners in the shipyards for the construction of VLCCs is, of course, this year’s highlight so far. In the first quarter of this year, a total of 24 ships of this type were ordered, compared to 18 orders in the whole of 2023.

As already stated, bulkers take second place in terms of newbuild orders this year, with contracts signed for 88 vessels totaling 8.41 million dwt in capacity, according to shipbroker firm G. Moundreas. Almost one out of

every two bulkers ordered, or 46.6%, will be mid-sized ultramaxes. This year’s first semester orders for 41 ultramaxes are less than half of about 100 newbuilds of the same type ordered in the 12-month period of 2023.

The next most popular ships are the larger kamsarmaxes (22 orders), with rising interest in the enormous newcastlemaxes (16 orders). In contrast, no contracts were signed for capesize bulkers. The larger kamsarmaxes, with orders for 22 ships, are the next most popular type of ships, while there was also a surge in interest in the huge newcastlemaxes, with orders for 16 ships of this type. On the other hand, no contract for capesize bulkers was signed in the period under review.

In recent years, gas carriers have remained steadily high in the maritime world's choices, with a new entry being ammonia transport ships, as especially mentioned above. Specifically, so far this year, orders have been placed for 82 gas carriers with a total capacity of 9.27 million cubic meters. LNG carriers continue to lead the way, with 33 orders, followed by VLACs, with orders for 24 vessels. In fourth place are LPG carriers, with shipowners having signed contracts to build 20 ships of this type. Qatar's enormous shipbuilding program, combined with the growing trend of seaborne ammonia trade, is projected to keep shipyards busy building gas

carriers, primarily those in South Korea, which have acquired the vast bulk of contracts.

In the remaining ship categories, following the rally of 2020-2022, containership contracts are steadily declining on an annual basis. This year, in the period under review, orders were placed for 26 containerships totalling 214,153 TEUs. Almost half of them, 12 in total, will have a capacity of 12,000 - 16,999 TEUs, with nine falling into the 3,000 - 5,999 TEU range.

Vehicle carriers have enjoyed tremendous growth and excellent freight rates in recent years, resulting in a warming up of shipowners' interest in ordering ships to maintain the trade in the long run. In this context, agreements were singed for 19 vessels of this type, with a total capacity of 106,350 CEUs.

Other types of ships include orders for 34 vessels totalling 323,546 dwt. This includes conventional cargo ships, deck carriers, and MPP/Heavy Lift vessels.

Finally, looking at the placement of shipbuilding countries in the global orderbook, if gas carriers are excluded, as South Korea received about 90% of the orders, China is the top choice for the remaining ship types. The Chinese have obtained over 90% of bulker orders, 76% of tanker orders, and an absolute 100% of containership contracts

The Chinese have placed almost 90% of orders for bulk carriers, 76% for tankers, and an absolute 100% for containerships they record an absolute 100% of contracts.

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The myDSV platform allows for seamless track and trace functionality, enabling customers to manage their shipments across different time zones. Additionally, DSV's dedicated Marine Parts Warehouse Management System facilitates efficient Purchase Order management, ensuring that inventory levels are accurately maintained, and shipments are processed promptly. The DSV Marine Parts Logistics service ensures that critical ship spares are delivered on time, minimizing downtime for vessels. Navigating customs regulations can be challenging, but DSV’s experienced customs brokerage team ensures smooth and efficient clearance of marine parts through the main ports or under Customs Bond. This service is vital for preventing delays and ensuring that parts reach their destination without unnecessary hold-ups. In the complex and demanding world of maritime logistics, DSV stands out as a partner for ship spares services. Its strategic network, combining global reach with local expertise, ensures that the shipping industry can operate smoothly and efficiently.

The company leverages its dedicated Control Tower team which operates 24/7, ensuring that ship spares can be sourced and delivered from and to any part of the world.

Trends and perspectives in shipping finance

Discussing banks’ shift to financing primarily green ships, as well as the required funds to achieve the IMO decarbonisation targets, and the obstacles in the way of the EU's legislative framework to support sustainable investment

George Xiradakis

President, Association of Banking & Financial Executives of Hellenic Shipping; FounderManaging Director, XRTC Business Consultants

Over the last decade, the shipping finance market has seen significant changes, shifting focus primarily on loans for green ships. This results to finance being available to fewer and fewer types of ships, as finance is focusing particularly on newbuilds or very modern ships. This excludes smaller shipowners who wish to obtain finance for the acquisition of older ships (e.g. vessels aged 10-15 years), even in the case those ships have advanced fuel-saving systems.

The decarbonisation of shipping and the transition to green shipping are extremely complex processes, as transport safety is paramount. In terms of greenhouse gas emissions, shipping is responsible for 3% of global emissions, and it is estimated that this share will increase in the coming years. Looking at the transport sector in Europe, maritime transport accounts for 13.5% of greenhouse gas emissions.

In order to reduce greenhouse gas emissions, the International Maritime Organization (IMO) has set the target of reducing CO2 emissions from maritime transport by 2050. For the same year, the European Union has set itself the target of reducing emissions by 90% compared to 1990 as part of the EU Green Deal. Reducing greenhouse gas emissions is therefore a top priority and is perhaps the biggest challenge for shipping in the coming years.

The transition to green shipping is extremely complex, as what comes first is transport safety.

With the aim of decarbonising maritime transport, the EU has included shipping in the EU Emissions Trading System (ETS), from January 2024. Under this system, shipping companies must pay a type of tax (through trading so-called EU Allowances - EUAs) for the intensity of greenhouse gas emitted by their fleet.

At the same time, with the inclusion of shipping in the EU ETS, the shipping industry is also included in one of the EU's largest financial instruments, the Innovation Fund. This programme is financed directly from the revenues of the EU ETS and allows shipping companies to recoup some of the money they have spent on the purchase of EUAs. The Innovation Fund finances innovative technologies that contribute to the reduction of greenhouse gas emissions in maritime transport in the form of grants rather than loans.

What is certain is that the shipping industry will not be able to reduce its emissions to zero overnight. Considerable investment and further funding will be required. The only way forward, while aiming for greater sustainability, is an integrated approach combining regulatory and financial instruments, technical standards and money market instruments, research and industrial policy.

To achieve the IMO target, it is projected that cumulative investments in the shipping sector and its supply chain will need to reach up to $1.0-1.4 trillion. According to research conducted by UMAS maritime consultants and the Energy Transitions

Commission on behalf of the World Maritime Forum for the 'Getting to Zero' Coalition, land-based infrastructure accounts for 87% of the aforementioned investment, with onboard technologies accounting for the remaining 13%. The capital, which will be generated by a collaborative effort between many stakeholders, primarily banks and financial institutions, will be distributed over 20 years, between 2030 and 2050.

Banks are increasingly being asked to play their part in tackling today's environmental and social challenges by following the new series of binding guidelines, frameworks and tables issued by the European Banking Authority (EBA).

The European Union's green transition plan, which links financing to borrowers' environmental, social, and corporate governance (ESG) performance, as well as the implementation of the Basel IV framework by European financial institutions, provides guidance and practices for shipping companies seeking bank financing.

Thus, the banks are pressuring the shipping businesses to align their operations with ESG guidelines. The competitiveness of the industry and bank financing availability may be impacted by the possibility of ESG performance becoming a regulatory obligation, even though it is not currently. However, a maritime firm must incorporate ESG into its operations in order to enter

foreign financial markets.

The legislative framework of the EU which aims to facilitate sustainable investments (EU Taxonomy Regulation), recognizes that shipping can contribute to the transition to a climate-neutral economy. However, the specific conditions and criteria provided are not suitable for the specific sector and must be revised, mainly by removing the restrictions related to the type of cargo transported.

The European Union's prudential supervisory regulations for banks are now overly stringent in the banking industry because they fail to consider the unique attributes and financial risk profile of maritime finance. Since major, established European shipping banks have been reducing or selling their portfolios in recent years, it is imperative that the EU take the required institutional steps to halt the declining trend of shipping finance from these banks.

Because of the fall in European portfolios, the lack of regulatory frameworks in Asia, and Asian countries’ desire to support national shipyards, several Asian leasing businesses, primarily Chinese, have expanded their portfolios.

Potential access to a new kind of investment base through the capital markets is one of the factors motivating banks and other financial institutions to increase their lending portfolios of green and sustainable loans. In contrast to conventional bonds, green or sustainable bonds have an issuer that provides a set of green or sustainable criteria and agrees to use the funds obtained for projects that fit those requirements. Banks and other financial organizations may therefore have money set aside specifically for environmentally-friendly or sustainable initiatives. The bulk of Greek shipping businesses, on the other hand, are clearly not the target market for these prod-

A maritime business must incorporate ESG into its operations before it may enter overseas financial markets.

To achieve greater sustainability, shipping can only move forward with an integrated strategy that incorporates regulatory and financial instruments, technical and money market standards, and research and industrial policies. ►

Many leasing companies from Asian countries have expanded their portfolios, taking advantage of the decline in European portfolios.

Unpredictable geopolitical developments in Ukraine and the Middle East typically benefit the maritime sector. However, the safety of the financed ships presents the banks with new and pressing conditions.

ucts as they are meant for the large shipping conglomerates, resulting to Greek shipping companies’ debts being mostly secured by the mortgaged ships.

Unforeseen geopolitical developments in the Middle East as well as Ukraine usually favor the shipping industry. But the banks face a new critical condition, that of the safety of the financed ships.

Early in May 2020, the US Coast Guard, the US Department of State, and the US Department of the Treasury's Office of Foreign Assets Control (OFAC) jointly released a directive offering guidelines on combating sanctions evasion activities and illicit navigation, with a particular emphasis on Iran, North Korea and Syria. The directive specifically stressed the necessity of performing more due diligence on shipments for which transit locations pose a significant risk. The directive makes clear that the regulator's core interests lie with all parties involved in a shipping transaction, including the insurer, bank, trading group, fuel provider, and any other link in the marine supply chain.

The Automatic Identification System (AIS)-related contract terms, ship-specific audits, historical and continuing examination of AIS transmission data, and due diligence of shipping papers are some of the new compliance procedures. In addition, banks ought to investigate the shipping firm, any intermediaries or other parties involved in the transaction, and if feasible, be aware of the ship's ports of call for the specific transaction flow. Banks can gain

insight into the range of possible activities that may lead to sanctions being placed on their mortgaged boats by utilizing shipping data to find out what is documented in the OFAC network.

The implementation of these procedures has grown progressively more intricate for banks. Shipping financiers, in addition to screening borrowers through Know Your Client (KYC) applications, must monitor ships' movements and routes at all times.A sort of Know Your Ship (KYS) application is required.

There are ways to accomplish this, but the necessary technological advancements are needed. It is possible to use mission algorithms with machine learning and artificial intelligence capabilities. When used in the context of a maritime sanctions investigation, artificial intelligence techniques can at least identify high-risk vessels and promptly alert banks to their presence.

The Greek shipping community, which controls over 50% of the EU fleet, has recognized the new financial issues facing the industry and utilises creative and digital

technology in its effort to contribute to reducing pollution emissions while retaining its ability to obtain bank financing.

The larger Greek shipping businesses are making significant efforts, while the medium-sized and smaller companies are not able to meet these issues in the same manner. A Maritime Emissions Reduction Center has been established in Athens jointly by Lloyd's Register and five leading Greek shipping companies, Capital Group, Navios Maritime Partners, Neda Maritime, Star Bulk and Thenamaris. The Center's primary goal will be to increase the current fleet's energy efficiency through the use of cutting-edge technologies and applied research.

The shipping sector requires a significant amount of capital to meet its decarbonisation goals and renew its fleet. Greek shipping, with its collective dynamism and long-term experience, has always demonstrated resilience and adaptation, and carries on with its efforts for a balance between environmental management and corporate profitability which will be crucial to achieve success.

Greek shipping's future success and dynamism will depend on how much it invests in innovation and how effectively its executives and employees are educated and trained. Ultimately, the national shipping industry's capacity to sustain its leadership position hinges on its sustained strength and willingness to take on high-risk investments.

Tankers resist volatility

There are signs that global oil demand might be recovering faster than expected, with easing inflation and improving global manufacturing, crucial for trade and oil consumption, being the contributing factors

The first four months of 2024 have seen a surprisingly strong tanker market. Rising tensions in the Middle East and Houthi attacks significantly disrupted oil trade routes, pushing freight rates upwards. According to the Baltic Exchange data, VLCC time charter equivalent rates peaked at a staggering USD 65,537/day on February 16th, a 117% increase compared to the beginning of the year. Similarly, Suezmax and Aframax rates reached their highs on January 17th and 18th, respectively, climbing 33% and 75% from January 1st at USD 67,219 /day and USD 80,514 / day. The product tanker market also experienced a boom, with MR rates in both the Atlantic and Pacific basins rising by over 50% by the end of January at USD 42,494 /day and USD 59,894/day, respectively. While rates have since been corrected to more sustainable levels as the market adjusts, strong underlying fundamentals continue to support healthy freight rates despite ongoing volatility and geopolitical tensions.

There are signs that global oil demand might be recovering faster than expected. Easing inflation and improving global manufacturing, crucial for trade and oil consumption, are contributing factors. The International Energy Agency (IEA) already upgraded its 2024 oil demand forecast to a higher-than-expected 1.7 mb/d, while the global supply for 2024 is forecast to increase by 800 kb/d to 102.9 mb/d. However, global supply growth seems limited, with OPEC+ sticking to its decision to extend its production cuts by 2.2 million barrels per day, offset only partially from non-OPEC+ countries.

Geopolitical events are further impacting oil routes. The US re-imposed sanctions on Venezuelan oil and Canada expanded its

The strong -albeit volatiletanker freight market which started within 2022 and continues has stimulated not only the newbuilding market but also S&P.

export capacity with the Trans Mountain pipeline. This, along with Europe replacing Russian oil with Middle Eastern and America sources, and Asian countries turning to Venezuelan, Iranian and Russian oil has disrupted traditional flows. Additionally, Houthi attacks in the Red Sea and rising risk aversion among operators are causing a shift away from the Suez Canal, forcing ships to take the longer route, around the Cape of Good Hope. These extra nautical miles significantly increase voyage time and costs, leading to higher vessel utilisation and potentially impacting tanker availability.

Moving from the tanker demand to the tanker supply, the tight tanker fleet growth for the coming years, translates to robust fundamentals for the tanker market, fuelling optimism among investors and owners. In the tanker sector, the orderbook-to-fleet ratio (by number of DWT) currently sits at 8.7%. While this is nearing the levels of 2020 and 2021, it remains almost 40% below the average orderbook-to-fleet ratio observed between 2014 and 2019. Despite a strong start to 2024 with nearly 67 tanker orders placed year-to-date, the tanker market needs more orders. Nearly 50% of the active tanker fleet consists of vintage vessels (16+ years old). The tanker fleet growth (in DWT) was about 2% in 2023. Our predictions based on the orderbook and the assumption of about 8.1 million DWT in yearly demo (based on the average of the last 24 years - since 2000) are that

the fleet growth will be 2024: 0.02%, 2025: 1.5%, 2026: 2.1%.

On the other side the total oil trade - in terms of million tonnes - increased by 2.8% in 2023 and in 2024 the growth is forecast to be around 2.1%. The current strong freight market environment, with healthy rates, is leading to a significant decline in vessel demolition activity. If these favorable conditions continue into 2024 and beyond, demolition rates could stay well below the 24-year average, potentially resulting in upward revisions to fleet growth forecasts.

The strong --albeit volatile-- tanker freight market which started within 2022 and continues has stimulated not only the newbuilding market but also S&P. However, in the first quarter of 2024, the tanker market’s S&P activity has decelerated, with 118 sales having been recorded y-t-d, almost 40% down compared to 2023’s Q1 activity. MR2, Aframax/LR2 and VLCCs drive the tanker S&P activity until the end of March, with 36, 19 and 15 sales respectively (constituting almost 31%, 16% and 13% accordingly out of the total tanker sales). Interestingly, despite the overall slowdown, sales of tankers aged 6-10 years old have increased. In fact, we observe a 25% jump compared to the same period of 2023, with 20 sales taking place so far this year.

Dimitris Roumeliotis Research Analyst, Xclusiv Shipbrokers

Dry cargo ships: The critical factors of demand and supply

Firm demand along with the Red Sea crisis and trade disruptions, have driven a strong start to the dry bulk market

Research Analyst, Xclusiv

During the first three months of 2024, China has imported a total of 115.9 million tonnes of coal and lignite, up almost 14% compared to the same period of 2023, while its iron ore imports increased by 5.5% to 310 million tonnes. In the meantime, rising tensions in the Middle East have pushed shipowners to reroute their vessels away from Red Sea routes, opting to navigate around Africa’s Cape of Good Hope, significantly increasing tonne-miles. Firm demand along with the Red Sea crisis and trade disruptions, have driven a strong start to the dry bulk market. Within March 2024, the Baltic Capesize 5 TC routes climbed to USD 35,780/day, almost 24% up compared to the beginning of the year, highlighting one of the strongest Q1 averages of at least the last 10 years. The Baltic Kamsarmax 5 TC routes recorded its lowest for 2024 on 12th January 2024 at USD 12,693/ day before rallying and briefly averaging 20,757/day in late March. In a similar trend, Supramax earnings dropped to USD 11,301 per day on January 22nd. However, they rebounded and briefly reached an average of USD 15,515 per day in late April. While Supramax and Kamsarmax earnings this quarter were up 27% and 36% respectively compared to last year, they still fell short of the average earnings from the first quarter of 2021 and 2022. Finally, the Baltic Handysize 7 TC routes have experienced

Currently, the average age of the bulk carrier fleet is around 12.4 years old, which is almost 2 years older than the 10.5-year-old average observed back in January 2021.

less volatility during the first Q1 2024, with rates ranging between USD 10,197/day and USD 14,537/day. Moving to the supply front, the dry bulk orderbook to fleet ratio is standing currently at 8.5% in terms of number of ships, while in March 2023 it was 6.7%. Within the first 3-month period of 2024 a total of 55 vessels were ordered, a significant reduction of 61% compared to the same period of 2023 when 143 contracts were signed. Almost 25% of the total bulk carrier fleet is older than 16-years old. In the Bulker sector the fleet growth (in DWT) was about 2.9% in 2023. Based on the orderbook and assuming an average yearly demolition of 10.1 million DWT (in line with the average since 2000), our predictions for fleet growth are 1.2% for 2024, 1.5% for 2025 and 1.3% for 2026.

The World seaborne dry bulk trade had a growth of about 3.7% in 2023 and it is estimated to grow 1.2% in 2024. However, since January 2021, bulk market recycling activity is very subdued, with monthly demolition activity being below 1.5 million DWT. From January 2021 to March 2024, a total of 16.22 million DWT carrying capacity has gone for demo, almost 163% down compared to the dry bulk vessels demolished during the previous 3-year period of 2017-2020. The subdued recycling activity of the past years has resulted in ageing of the bulk carrier fleet. Currently, the average age of the bulk carrier fleet is

around 12.4 years old, which is almost 2 years older than the 10.5-year-old average observed back in January 2021.

During the first 3-months of 2024, dry bulk S&P activity was brisk, with over 220 vessels changing hands. This represents a nearly 35% increase compared to the same period in 2023, approaching the volume recorded in Q1 2021. Handysize, Supramax, and Capesize sectors have been the stars in Q1 2024, with 43, 55, and 31 sales respectively (constituting around 19%, 25%, and 14% accordingly out of the total of bulk carrier sales). Surprisingly, the Capesize sector has experienced the strongest Q1 in terms of sales, of at least the last 10year period, despite the increase in the second-hand prices. Within the past year, Capesize second-hand prices have realised the greatest increase compared to other segments, with 5-year, 10-year and 15-yearold prices climbing by 21%, 35% and 39% respectively. Panamax/Kamsarmax and Post Panamax sectors have also performed a great beginning, with a total of 58 vessels finding new owners, more than double compared to the same period of 2023. Looking into the age group profile, there is a tremendous increase in the demand of vintage vessels (16+ years old) from January to March 2024 compared to the same period of 2023, as a total of 57 vessels have been sold, almost double compared to 2023’s Q1 period.

Eirini

Diamantara

Shipbrokers Inc.

Unexpected upward rally for the containerships - but for how long?

Despite the large orderbook and record deliveries during the first quarter of the year, the requirement for more ships to cover the longer route via the Cape οf Good Hope, has helped a lot in absorbing the influx of new ships

The ongoing situation in the Red Sea due to the Houthi attacks has actually been quite beneficial for the container market actually. Despite the large orderbook and record deliveries during the first quarter of the year, the requirement for more ships to cover the longer route via the Cape Of Good Hope (COGH), has helped a lot in absorbing the influx of new ships and maintaining a strong momentum in the freight market. Asset prices keep climbing too. It seems that larger (and medium-sized) ships are benefitting more at the moment (no open ships available in the market!), compared to smaller vessels (even though they are faring better too) and most probably this will be the pattern going forward, as these larger vessels are more suitable to cover the new trading patterns, created by the situation in the Red Sea.

It would be easy to attribute the current market strength to the disruptions in the Red Sea events, but this has not been the only reason behind the current buoyant market. It is obvious that the start of the crisis provided an unexpected boost to Charterers' New Year fixture plans, yet availability was already structurally

The ongoing situation in the Red Sea due to the Houthi attacks has actually been quite beneficial for the container market actually.

deficient, pushing some of them to grab ships while they still could.

What has arguably helped sustain the rally since then has been the cyclical recovery in demand following the extended post pandemic destocking, and this can be seen from the results of the most recent PMI reports. The end March surveys show global manufacturing output rising for a third successive month, supported by the fastest growth in new orders since May 2022. The relevance here is that even if there is a prompt resolution to the conflict (and that is a big ‘IF’), allowing the largest vessels to once more transit the Suez Canal, the charter market will still be short on ships in the coming months, especially the larger ones. In the meantime, Panama Canal’s ability to handle more ships in the coming months is an encouraging sign for ocean carrier executives who say the added capacity will be needed as container shipping continues to avoid the Suez Canal. Yet the liner industry is calling on Panama to invest more to mitigate the effects of climate change on the canal. The Panama Canal Authority announced that starting in the second half of May, it would allow 31 ships to transit the canal daily, up from 24 ships each day during the first half of May. So, we are down to the big question: how long will the current party last for Container Shipowners? We definitely don't have a crystal ball here, so it remains to be seen how many factors will affect the market. Of course it’s difficult to tell if the positive ones will outperform the negative ones.

Orderbook remains at quite high levels, with massive deliveries expected for this year and next. During Q1 more than 100 ships of 700,000 teu capacity were delivered, whilst more than 150 ships of more than 1,000,000 teu capacity are expected to be delivered during Q2.... impressive numbers indeed. Scrapping is hovering at low levels at the moment, as even older ships are in demand to cover regional markets. We currently count about 20 ships scrapped so far year to date with around 30,000 teu capacity (really poor numbers).

On the political front, there is still a lot of uncertainty with the tensions between Israel and Iran re-escalating again. How long this conflict will last and how longer it will affect world trade lanes, needs to be seen in the months to come. Then we have the election year in the US and obviously President Biden would love to be handed the 'Peacemaker' award of the year but we all know that you need two to tango... lets see. It's going to be an interesting summer ahead for the container market. Let's enjoy the good rates and asset prices and hope that peace is restored everywhere in the world soon.

Georgios P. Bassakos

Sale and Purchase, Containers, Hellaschart

LNG market moves from stormy years to steady growth

The LNG industry has proved remarkably adaptable to market conditions, both in the ability to redirect flows to the areas of greatest need and in the rapid deployment of new import facilities to allow those cargoes to be received

Alex Froley

Senior LNG analyst, ICIS

The global market for liquefied natural gas is emerging from the turmoil of the last two years to enter a period of steadier and more affordable growth through the rest of the decade.

Demand for the fuel soared higher in 2022 when Russia halted most pipeline gas supplies to Europe. The region looked for replacement gas elsewhere, paying record high prices to attract new production from the US and to divert cargoes away from Asian buyers such as China, India and Pakistan.

Over 10% of the global LNG market share, more than 40 million tonnes, shifted from Asia to Europe from 2021 to 2022, drawn in by ICIS TTF European gas prices soaring to all-time highs over $80/MMBtu, ten times the highest spot prices seen in recent years before the crisis.

Europe has now survived two winters without Russian gas, partly helped by mild weather in the 2022/23 and 2023/24 heating seasons. The LNG industry has proved remarkably adaptable to market conditions, both in the ability to redirect flows to the areas of greatest need and in the rapid deployment of new import facilities to allow those cargoes to be received.

Floating storage and regasification units proved a vital resource for Germany in particular, a country which had no LNG import facilities when Russian pipeline flows stopped, but by the end of 2023 had three FSRU-based import projects in place, with two more FSRUs being installed

in early 2024. Newly-developed FSRU projects were also added in the last two years in the Netherlands, France, Italy and Turkey, as well as the completion of the previously-planned Alexandroupolis facility in Greece.

This all came at a cost. Gas prices for households and industry soared higher, leading some industries to halt output in Europe. Meanwhile, Asian buyers unable to compete against Europe’s high prices lost access to clean energy supplies, turning back to coal.

In Summer 2024 however, the global market looks more secure, with record high gas storage levels in Europe at the start of the season allowing prices to fall and an increased share of global LNG to return to growing markets in Asia.

Countries including China, Thailand and Bangladesh were recording record monthly import figures in the early months of 2024, with new LNG importers such as the Philippines and Vietnam, which both opened their first facilities in 2023, also expected to buy more.

After a couple of years when new additions to global LNG supply had slowed,

there is also a new wave of exports on the horizon. From late 2024/early 2025 onwards the US and Canada will start to open a large number of new plants such as Corpus Christi stage three, Plaquemines, Golden Pass and LNG Canada.

Meanwhile, Qatar plans to almost double its LNG output to 142 million tonnes per annum by 2030, up from 77mtpa now. Industry expectations are that expansions in the US, Qatar and elsewhere will grow the total LNG market by 50% by the end of the decade, from around 400mtpa in recent years to 600mtpa.

The shipping industry has played a key part in the success of LNG to date and was central to the flexibility that allowed the market to adapt in recent years. The growth of the LNG market across the rest of the decade will provide considerable opportunities for shipbuilders and shipowners to take advantage of.

A much larger market will, of course, need more ships to carry the production, over and above the ongoing need to replace older, less efficient vessels. New importers may require additional FSRUs, having seen the value these can offer in times of need. LNG can also be a clean fuel for ships themselves, and the LNG bunkering market looks set to grow, having already made a strong entry in sectors such as ferries and the cruise market.

After the upheavals of recent years, a period of steadier growth and more secure supplies could be a welcome development for both industry and consumers too.

Bullish trends in the trade of LPG and ammonia

The combination of higher demand prospects and longer voyages are likely to drive demand for large LPG carriers (VLGC), designed for high-volume trading over long distances

Expectations for higher demand for large LPG carriers (VLGCVery Large Ammonia Carriers) are primarily driven by three important considerations: firstly, it is anticipated that China will continue to be a major market for projects involving the dehydrogenation of propane (PDH). Secondly, refiners are anticipated to continue operating PDH units to generate cash flows to manage debt and support demand. The third cause is the traffic limits in the Panama Canal, which have increased the number of ships returning without cargo to the United States via other routes. In this setting, an increasing number of ships are opting for lengthier routes through the Suez Canal or the Cape of Good Hope compared to a year earlier. These alternative routes are estimated to result in a 50% increase in journey times.

Looking at the fleet's age profile and, by extension, the future circumstances of tonnage offered in the market, the figures available show that the LPG carrier orderbook accounts for 13.5% of the current fleet in operation, based on the number of vessels. At the same time, 41.9% of the ships in the current fleet are more than 20 years old. The current average age of VLGCs is

Ammonia transport ships have taken on a new dynamic in recent months, with multiple contracts being signed for the building of VLACs.

9.8 years, while that of MGCs (medium-sized LPG carriers) is 10.5 years. The combination of longer trips and expectations of increased flows to key importers will allow LPG carriers, particularly VLGCs, to operate at full capacity. At the same time, relatively low-order books will contribute to a limited supply of ships in comparison to the estimated volume of seaborne LPG traffic.

At the same time, ammonia transport ships have taken on a new dynamic in recent months, with multiple contracts for the building of VLACs (Very Large Ammonia Carriers).

According to Arrow's LPG Desk, the VLAC order book now includes 46 vessels, with 83% built in South Korea and the remainder in China. At the same time, there are approximately 430 vessels in the existing fleet of LPG carriers that can transport ammonia, but only 50 of them are LGC or larger.

Because of ammonia's chemical qualities, not all LPG carriers may be utilized for this purpose, while those that can carry ammonia are actually able to fill their tanks only up to 80%-85% of their maximum capacity. On the other hand, the VLACs that have been recently ordered will be outfitted with reinforced tanks, allowing ammonia to be stored at up to 98% of capacity.

Notably, the newly built VLACs that will enter operation from 2026 onward will be nearly 16 years younger than the age of existing ships capable of carrying ammonia.

Currently, medium-sized LPG carriers (MGCs) carry approximately 61% of all ammonia trade.

According to several forecasts, ammonia traffic might rise to 40 million tonnes annually by 2030, meaning that up to 50 VLACs will be needed for that job, provided that the entire ammonia trade is carried out by sea. Alternatively, if ships deliver only 10% of this growth, five VLACs will suffice by 2030, given that ships currently transport only 10% of yearly ammonia production.

Looking at demand more closely, we see that it is expanding rapidly worldwide. To begin with, growing populations and changing diets will continue to drive demand for ammonia, which is utilized in the production of artificial fertilizer that feeds half of the world's population. Currently, agriculture accounts for 70% of synthetic ammonia uptake.

At the same time, ammonia is the best medium for hydrogen transfer due to its energy density and cost-effectiveness.

Another consideration is ammonia's excellent potential as a decarbonisation fuel for the steel and iron ore industries, as well as a ship fuel, due to its extremely low emissions when using renewable energy feedstocks.

Christos Triantafyllidis

Director, Greek LPG Desk, Arrow Shipbroking Group

Geopolitical tensions impacting trends in maritime trade flows

It is now undeniable that the global economy and maritime trade are in a new era in which geopolitical tensions are driving commodity flows and volumes, with the risk of rising prices and transport costs

Maria Bertzeletou

Market Analyst, Signal Ocean

The geopolitical tensions between Russia and Ukraine, which began in February 2022, have been a major factor influencing the global shipping market. In terms of maritime trade, the concerns triggered by these tensions had a wider impact on grain and oil trade.

The bans imposed by the West on the import of Russian crude oil into European countries had a significant impact on the flow of oil. This concern has prompted Russia to look for alternatives for its oil flows to Asia. China and India appeared to be significantly increasing their import volumes from Russia over the course of 2023, thereby reducing the pressure on the Russian oil market from Western sanctions.

This shift in oil flows from Europe to Asia has had a significant impact on the global shipping market. Demand for shipping services increased in the Asian region, while European markets saw a decline in oil imports. In the figure 1a, data from the Signal Ocean platform illustrates the significant increase in crude oil imports from Russia to China since the start of tensions between Russia and Ukraine, which rose by 28 per cent in March 2024 compared to the same month last year.

The dynamics of Russian crude oil exports are of particular interest due to the divergence observed this year on the part

China and India appeared to be significantly increasing their import volumes from Russia over the course of 2023, thereby reducing the pressure on the Russian oil market from Western sanctions.

of India. As can be seen in figure 1b on the right, there was a significant slowdown in crude oil imports from Russia to India in March, with a downward trend emerging from December 2023. The significant decline raises questions about the influence of the US on India and the eventual stagnation of Russian crude oil imports. Nevertheless, a US Treasury Department official clarified in early April that the United States had not asked India to reduce imports of Russian oil. The main objective of the sanctions and the price cap of $60 per barrel imposed by the Group of Seven (G7) is to maintain the stability of global oil supplies and affect Moscow's revenues. At this point, it should be recalled that the price cap imposed by the G7, the European Union and Australia prohibits the use of Western shipping services, such as insurance, for tankers carrying Russian oil at prices of $60 per barrel and above. This restricts the ability to transport Russian oil, which has an impact on transport and global oil supplies. The price set is high enough to serve Russia's interests in selling oil, but at the same time is below the current market price to limit Moscow's revenue increase.

According to Reuters calculations based on official data, China's commercial or strategic reserves rose by a total of 790,000 barrels per day (bpd) in March, compared with 570,000 bpd in the first two months of 2024. In the first quarter of 2024, China added a

total of 670,000 bpd, a figure that to some extent undermines the prevailing market view that China's oil demand is strong.

China's increase in crude oil reserves signals a major shift in the global oil market landscape. This increase shows that China is ready to capitalise on opportunities arising from Western pressure on Russia, especially after sanctions were imposed on the country over the Ukraine conflict.

The increase in Russian crude oil imports is an important sign for China, which does not want to be solely dependent on supplies from other sources such as Saudi Arabia and other Middle Eastern countries. In addition, this increase could give China greater bargaining power in the global oil market as it will be able to influence prices and supplies worldwide.

However, the increase in China's oil reserves also points to concerns about a potential decline in the country’s oil demand. This may be due to many factors, such as uncertainty in the global economy due to geopolitical instability, the increasing use of alternative energy sources and the transition to more sustainable forms of energy. These developments could have an impact on the global oil market and influence prices and trade flows worldwide.

With regard to the US, we see a significant increase in exports to Europe, especially

FIGURE 1 a . RUSSIAN SEABORNE OIL TRADE FLOWS TO CHINA

Russian seaborne oil trade flows to China

Seaborne oil trade flows from US to Europe

Seaborne oil trade flows from Russia to Brazil & Turkey

FIGURE 1 b . RUSSIAN SEABORNE OIL TRADE FLOWS TO INDIA

Russian seaborne oil trade flows to India

Source: Signal

Source: Signal

FIGURE 3. SEABORNE OIL TRADE FLOWS FROF RUSIA TO BRAZIL & TURKEY

FIGURE 2. SEABORNE OIL TRADE FLOWS FROF US TO EUROPE

The bans imposed by the West on the import of Russian crude oil into European countries had a significant impact on the flow of oil.

from the end of the first quarter of 2023 (figure 2) . December 2023 marked a record for US crude oil flows by sea to Europe with more than 8.0 million tonnes. The first quarter of 2024 also remains at a significantly high export level compared to the first quarter of 2022. This trend reflects a shift in crude oil trade flows, with the United States increasing its presence on the European market amid geopolitical changes and restrictions on other Russian oil producers.

In terms of the transport of oil products, 2024 is characterised by a significant shift in maritime flows from Russia to Brazil and Turkey, a trend that was already evident at the end of Q1 2023 (figure 3). In January, the monthly volume of Russian diesel imports from Brazil and Turkey rose by more than 100 per cent, while the increase in February was around 70 per cent. March exceeded the import record registered in the corresponding month of 2023 by 13 per cent. As a result, the trend in seaborne trade flows of petroleum products to other non-European destinations is now clear, with Turkey supporting this trend with 70 per cent and Brazil with 20 per cent.

At this point, it is also important to consider the changes in trade flows in the grain and coal dry bulk carrier sector. As the figure 4 shows, Egypt is becoming a strategic recipient of grain flows from Russia. The months of January and February 2024 in particular saw the highest monthly import volumes since the beginning of 2022. This trend shows Egypt's importance as a major hub for international trade, especially in grain and coal. The high imports in these sectors may reflect Egypt's demand for these types of commodities for domestic use or for re-export to other areas of the region. In addition, this increase may be the result of trade restructuring due to geopolitical changes or economic dynamics in the region.

It is worth noting that the development of Ukraine's grain exports after the termination of the Black Sea Grain Initiative in August 2023 is an impressive phenomenon. Despite the unrest in the region and the

In terms of the transport of oil products, 2024 is characterised by a significant shift in maritime flows from Russia to Brazil and Turkey, a trend that was already evident at the end of Q1 2023.

pressure exerted on Ukraine, the country has managed to continue its exports, with impressively high growth rates to Spain, as the figure 5 shows.

The increase in Ukrainian grain exports to Spain can be attributed to several factors. One possible factor is the reorganisation of Ukraine's trade relations with other countries following the abolition of the Black Sea Grain Initiative. In addition, economic and commercial factors may have influenced this increase, such as Ukraine's ability to offer competitive prices and high quality to the Spanish market.

This development is a strong signal of Ukraine's individual potential and its determination to maintain its position in the global grain market despite the challenges and upheavals it faces. This development emphasises the flexibility and resilience of the country's agricultural sector and its ability to adapt to new conditions and challenges.

In the coal sector, a clear change in the dynamics of Russian exports to China can be observed. This is particularly interesting because it reflects the competition Russia faces from other coal exporting countries such as Australia and Indonesia, which offer competitive prices and quality to the Chinese market, leading to a decline in monthly import volumes, as shown in the figure 6 In addition, environmental challenges and pressure to reduce greenhouse gas emissions may also have contributed to China favouring green energy alternatives over coal. This shift in the balance of coal exports may have a significant impact on the Russian economy and the global coal market, as well as on geopolitical relations between the countries involved. It could also prompt Russia to seek new markets or focus on other energy sectors, such as natural gas and renewables.

The geopolitical tensions between Russia and Ukraine have undoubtedly had an impact on maritime trade flows, especially for ships carrying crude oil, grain and coal. Concerns about a possible disruption of crude oil flows from Russia have been voiced on several occasions, but Russia has managed to overcome these challenges by forging closer ties with countries in Asia, thereby strengthening its trade operations in

this region. However, in 2024, there are new concerns about global oil supply and price changes due to the ongoing resurgence of geopolitical tensions between Iran and Israel.

The likelihood of a new round of tensions in the Middle East is quite worrying for global oil markets as it could impact the production and exports of one of the world's largest oil producers, Iran. This unrest could lead to price rises and concerns over energy supplies worldwide, increasing the importance of energy diversification and the strategic importance of energy security.

The recent resurgence of tensions between Iran and Israel has caused oil prices to skyrocket. In April 2024, the price of Brent crude oil rose by 3.5 per cent and exceeded USD 90 per barrel for the first time since October. Concerns are centred on the uninterrupted flow of global oil through the Strait of Hormuz. The likelihood of an interruption to oil transport through the Strait of Hormuz could increase the risk premium for oil and have further implications in the event of an attack on tankers.

The month of April is expected to play a decisive role in the second quarter of 2024 in terms of potential disruptions to global oil supplies and prices. The International Energy Agency (IEA) forecasts that the price of Brent crude oil will average $88.55 per barrel this year, up from its previous forecast of $87 per barrel. This increase reflects expectations of a sharp decline in global oil reserves this quarter and ongoing geopolitical risks, according to the agency.

It is now undeniable that the global economy and maritime trade are in a new era in which geopolitical tensions are driving commodity flows and volumes, with the risk of rising prices and transport costs. Global shipping players must address these re-emerging challenges and make strategic decisions to manage their fleets and maximise their employment, while minimising operating costs and safety, and avoiding high-risk areas such as the Red Sea and other places where they may suffer significant losses.

FIGURE 4. RUSIAN SEABORNE GRAIN TRADE FLOWS TO EGYPT

FIGURE 5. SEABORNE GRAIN TRADE FLOWS FROM UKRAINE TO SPAIN

FIGURE 6. SEABORNE COAL FLOWS

Green fuels lack production and distribution bases

In an interview with Naftemporiki, Dimitri Frank Sarakakis, the CEO of Ionic shipping company, outlines the main obstacles on the road to decarbonisation, the role of bank finance, charterers’ attitude, maritime training on new technologies and geopolitical developments

By Antonis Tsimplakis atsimplakis@naftemporiki.gr

In an interview with Naftemporiki, Dimitri Frank Sarakakis, the CEO of Ionic shipping company, outlines the main obstacles that tramp shipping faces on the road to decarbonisation.

Regular lines and other conventional, long-term scheduled itineraries are not followed by tramp shipping, like the Greek one. Tramp shipping is estimated to account for over 80% of the worldwide fleet.

The technologies required for the green transition of shipping currently exist, Mr. Sarakakis points out, adding that what is missing is the infrastructure for the production of these fuels by "green" methods in large enough quantities, and their distribution at ports throughout the world.

“Infrastructure for certain intermediate solutions, including liquefied natural gas (LNG), is restricted to a few major ports. As a result, they are only good for regular lines (coastal shipping, containers, PCC) that can schedule bunkering at the specific ports several months or even years in advance."

But as he points out, "Ionic’s fleet, like the majority of the Greek fleet, does not consist of liners, therefore there is currently no infrastructure, and in the medium term, there will be no infrastructure in 95% of their ports of call.”

Regarding the charterers' attitude, he comments that: "on the non-scheduled lines, regardless of some high-sounding language, we observe that the charterers, being further from the consumers, are unwilling to pay the extra cost. They experiment selectively, only when they can pass on the additional expense and residual risk to shipping companies. So there aren't many examples.”

However, on the other hand, Mr. Sarakakis stress-

“The banks are positive about financing the green transition as it also helps them with their own goals ESG,” says Mr. Sarakakis.

es that "the banks view this type of funding favorably since it aligns with their own objectives of minimizing their environmental impact.”

Coming from a family with a long history in enterprises, specifically the road passenger transport and motoring sectors, in 2009 you decided to venture into maritime transport and established a shipping firm, The Ionic. From your experience, what are the similarities and differences between

these two business sectors?

Let me begin by extending my congratulations to “Naftemporiki” for its centennial anniversary of providing reliable and continuous information services, all while upholding a high level and constant values. In 2022, the family-run business you mentioned also celebrated its 100th anniversary.

I believe that the automotive and the shipping industries combine worldwide trade, mechanical engineering, as well as close collaboration with multinational enterprises.

Greece's comparative advantage is in shipping, as no other nation can match its extensive knowledge and training of human resources in this area. Obviously, Greece’s centuries-long maritime tradition is unquestionable. I can't conceive of another nation in the world that would be more suitable to accommodate shipping companies.

It is important to note that shipping and its related sectors enjoy unlimited growth potential in our country, in contrast to the other industry for which we are known as a nation, tourism. Tourism has started outgrowing its viable volumes as is evident from the regrettable accelerated deterioration of certain regions observed in recent years, and this may have a detrimental effect on our tourism product.

Selecting a field of interest is, in my opinion, the most crucial step. The likelihood of success increases then.

You place a high value on the caliber of services you offer to your clients. In fact, many ships in your fleet have been awarded the US Coast Guard's QUALSHIP 21 quality certification, which

is regarded as the highest worldwide. What were the policies you implemented that got were your are at today in just a few years?

From the start, the business model has been centered on fully managing a high-quality fleet of vessels that exceed industry standards, not just in terms of each vessel's specs, but also in the way of operation and management. Granted, our objective has always been to be recognized for quality rather than fleet size.

Due to our exposure, our tanker fleet's control and inspections by major oil corporations throughout the world and the requirement to maintain high operating standards has given us an advantage also in the dry bulk sector. These factors, combined with the substantial knowledge we have at our offices in Athens, London, and Manila, have played an important role in our success to date, which we are really pleased of.

Ionic, from its very start, has consistently supported the QUALSHIP21 program run by the US Coast Guard, and I am incredibly delighted that together with my colleagues both ashore and at sea, we have gained QUALSHIP21 certification for almost 100% of both fleets. This is an outstanding feat, given that less than 20% of the world's commercial vessels

Ionic recently adopted a novel and breakthrough nanotechnology hull coating solution for its tankers, with zero chemical release to water.

entering the United States are at this level. Ionic's objective is to continue to maintain these high levels of quality while also ensuring that the Greek shipping industry remains at the top of the list of shipping countries globally.

Speaking during a ceremony in which you were awarded, in the context of the Efkranti Awards, you stated that the key to the company's success was human resources, which combine experience with a low average age. How do you achieve this combination?

What activities do you take to ensure the continued development of your executives?

An essential component of our organization's human resources is the blend of youthful enthusiasm and experience. We take a number of steps to support this combination and help our executives grow and develop, including the following:

1. We invest in education and training: To help our

staff acquire new skills and knowledge and adjust to changing market demands, we offer them ongoing education and training;

2. We encourage open communication and teamwork: We uphold an environment where idea sharing and teamwork are encouraged, regardless of experience level;

3. We offer opportunities for advancement: We encourage internal staff development and promotion since we value their talent and commitment; and,

4. We foster originality and inventiveness: We advocate for the "everyone learns, everyone teaches" philosophy and welcome younger members to contribute fresh concepts and recommendations.

One of the most important challenges in world shipping today is the International Maritime Organization's goal of gradually decarbonising shipping by 2050. Do you believe this target is attainable, and under what conditions?

This topic will undoubtedly remain a source of contention for many years to come.

Decarbonisation necessitates sector-wide and leadership transformations, as well as multi-stakeholder collaboration. Although change is already being made and the focus on decarbonisation has

Ionic’s the business model has always been centered on fully managing a high-quality fleet of vessels that exceed industry standards.

intensified among governments, businesses, and society as a whole, there is a growing consensus among stakeholders that more must be done to achieve “net zero” by 2050.

Right now, there are numerous technologies for potentially minimal emissions ship propulsion systems, including green ammonia, green methanol, and even nuclear energy. What is lacking is the scaled production and distribution of such fuels, which is dependent less on shipping (marine fuel demand is a very small percentage of the energy market) and more on the energy sector as a whole, as well as the regulatory framework established by governments and international organizations.

However, the environmental footprint is being lowered on a daily basis by continuously improving the efficiency of internal combustion engines until the aforementioned parameters are met.

With its unique role as the backbone of global trade, the shipping sector is not just a sector that should be decarbonised, but also a driver of the global decarbonisation project through the transportation of low and zero carbon fuels.

What strategies have you developed and implemented to reduce the company's environmental footprint, both at sea and on land?

The fleet managed by Ionic is entirely made up of Japanese-built ships, which are known for being the most economical and fuel-efficient in the world.

In addition, we examine a variety of solutions and methodologies in order to continuously optimize our footprint.

For instance, as part of our sustainability objectives to safeguard the oceans, Ionic recently adopted a novel and breakthrough nanotechnology hull coating solution for its tankers, with zero chemical release to water, adhering to the goal of UN's SDG14: Life Below Water.

We take pride in the fact that Ionic was among the first shipping firms to support marine environment conservation through the use of innovative zero-impact green coating solutions and ship energy efficiency technologies, with an emphasis on increasing the annual efficiency ratio (AER) and CII indicators.

Do you believe the required technologies and infrastructure are available today for a shipping business to invest in alternative fuel ships?

As I said earlier, the technologies do exist; what is lacking is the infrastructure, or the capacity to produce these fuels in large enough quantities by "green" methods and transport them to ports all over the world.

There is infrastructure for certain intermediate solutions, including liquefied natural gas (LNG), but this is limited to a few major ports. As a result, such infrastructure is only useful to regular lines (coastal shipping, container transport and pure car carries [PCC]) that can schedule bunkering at specified ports months or even years in advance.

Regrettably, the public opinion in Greece, or at least a substantial portion of it, has a negative perception of the seafarer profession.

Since the Ionic fleet, like most of the Greek fleet, is made up of tramp vessels, up to 95% of the ports of call do not have the required infrastructure either now or in the medium term.

What is the purpose of financing such projects? How responsive are the charterers?

The new technologies are still at an experimental stage, mostly because of a lack of infrastructure and fuel at scale. As a result, testing and implementation can only be accomplished through collaboration between shipping firms, charterers, and fuel suppliers.

Regular line customers, such as major retailers and automakers, are ready to pay a premium to lower

their supply chain footprint since they are closer to consumers. Regular lines enjoy the further advantage of being less hampered by a lack of infrastructure.

Regarding the non-scheduled lines, regardless of some high-sounding language, we observe that the charterers, being further away from the consumers, are unwilling to pay the extra cost. They experiment selectively, only when they can pass on the additional expense and residual risk to shippers. So there aren't many examples. However, the banks are positive about such financing as it helps with their own goals of reducing their own footprint.

Another major issue is a seafarer shortage, but also the sufficient training of mariners in new technologies. What tools and procedures are you implementing to address these unique challenges? What actions do you believe should be taken on a global scale?

Regrettably, the public opinion in Greece, or at least a substantial portion of it, has a negative perception of the seafarer profession, as well as an

Dimitri Frank Sarakakis: “Ionic has consistently supported the QUALSHIP21 program, and I am incredibly delighted that together

ignorance of its current status and the opportunities it offers. Living conditions on board have greatly improved. The new ships are similar to hotels in that they provide great catering, security, and rapid and continuous access to online communications, with an average stay of only a few months on board. Salaries are exceptionally high, and the rate of development is excellent. At the age of 30, a young individual might easily earn more than 10,000 euros per month and be in demand for shore-based work whenever they wish, with highly competitive pay.

Comprehensive training programs that emphasize both theoretical and practical training must be developed in order to address the issues related to seafarers' lack of training in new technologies. And there should be an end, at last, to the state maritime academies’ historical monopoly, which would help them raise their own bar as well.

Our efforts to address these concerns are primarily centered on investing in long-term cadet officer programs. We provide flexibility in employment contracts, allowing sailors to choose their working

Europe's quick energy independence from Russia would not have been possible without European shipping, the vast bulk of which is Greek.

hours, and we focus and invest in training through simulation systems and manufacturer seminars.

Further, we make significant investments in the ships' quality of life, going above and beyond of what is required.

What are your policies to promote diversity, equity, and inclusion (DE&I)?

Our diversity, equity, and inclusion policies are incorporated throughout the company's organizational structure. We encourage the diversity of people and ideas and see each employee as a vital member of a team. Clearly and realistically, our decisions on employee recruitment, selection, growth, and promotion are not influenced by gender, age, national origin, gender identity, mari-

tal status, handicap, or any other factor.

How much do you believe geopolitical competition affects now and will affect the shipping industry in the future?

Shipping has an amazing ability to adjust to any changes, and it always will. Its power and significance are sometimes overlooked, but Europe's quick energy independence from Russia would not have been possible without European shipping, the vast bulk of which is Greek. In the short term, geopolitical events have reduced supply and raised fares. In the long run, however, a potential division of trade into areas of influence would be detrimental to both shipping and the global quality of living.

Notwithstanding any adverse consequences, the so-called globalisation is the primary reason that the world's quality of living is at its highest level in human history. This is why, despite occasional hiccups, I am optimistic that humanity will continue to trade, socialize, and work more closely together to the benefit of everyone.

with my colleagues, we have gained QUALSHIP21 certification for almost 100% of both fleets.”

Is the green transition environmentally friendly?

The objective to achieve "net-zero" emissions by 2050 is not attainable. Ships are the most environmentally friendly and effective means to carry commodities. Environmental regulations must be motivated only by ecological concerns and provide unquestionable environmental benefits

Panos Kourkountis President, MARine TEChnical Managers Association (MARTECMA); Technical Director, Sea Traders SA

The growth of shipbuilding technology and shipping in the last century provided fresh considerations for international trade competition and the global economy. Fuels and other energy sources, basic raw materials, cereals, ores, and industrial commodities are no longer limited to the location where they are produced. They are available worldwide at a low transport cost. Low transportation costs benefit countries with advanced industries, low production costs, or a surplus of raw materials, allowing them to dominate the global market and economy.

Most people do not comprehend the importance of shipping until a global crisis disrupts the sea routes and they face grave repercussions. However, shipping has always played an important role on the geopolitical chessboard. Especially in recent years, all states have recognized shipping’s expanded global role and attempted to take advantage of it. In recent decades, China has made massive investments in shipbuilding and shipping. The country currently builds 40% of new ships globally, and its merchant fleet is among the world's largest. The United States has also opted to establish its own commercial fleet with American seafarers. In every global geopolitical crisis, shipping emerges as a protagonist. Ships are utilized as "humanitarian bridges," and the success of economic sanctions is dependent on them.

Fragile international ties raise questions about the future of shipping. The conflict between nations also extends to the IMO's environmental laws. Although all states recognize the importance of addressing air pollution, there is no agreement on the specific methods.

Ships transport 90% of world trade, but the shipping sector accounts for 2.5% of global CO2 emissions. Unlike other indus-

The goals and environmental benefits of the measures are debatable, but the amounts of money to be collected are enormous. Discussions are underway regarding the management of the collected funds.

tries, most of the emissions from ships occur far away from residential areas. Despite the extremely low percentage of emissions on the part of shipping, ships are continuously advancing, implementing innovative technologies, and lowering their emissions.

Measures

In recent years, the IMO has adopted a number of measures, including the Energy Efficiency Existing Ship Index (EEXI) and the annual operational Carbon Intensity Indicator (CII). However, both of the indicators present severe faults. At the same time, the European Union implemented an emissions tax (ETS) and gradually mandated the use of alternative fuels (FuelEU).

It is anticipated that the IMO will be forced to adopt global shipping regulations comparable to those of the European Union in order to prevent countries from imitating the EU and implementing national carbon trading systems.

The IMO is expected to adopt two major proposals: the Levy or Feebate and the GFS (Global Fuel Standards). The Levy/Feebate is a tax imposed on fossil fuels or their emissions. The GFS classifies fuels according to their carbon footprint per unit of energy efficiency (CO2e/KJ), while it establishes acceptable limits, and imposes fines on existing ships that cannot use them.

The ultimate goal is to arrive at "net-zero" for shipping by 2050.

Europe, America, and numerous environ-

mental organizations advocate for stronger implementation of regulations, emphasizing that climate change threatens planet Earth, that we have lost valuable time, and that we can’t afford to overlook any source of greenhouse gas emissions.

On the other hand, China, India, Brazil, and other countries believe that reducing pollutants by 9.5% should be a priority and that the motive for targeting shipping’s global emissions rate of 2.5% is not related to the environment but rather to a slowdown in their economic growth. They see shipping's geopolitical component as an accelerator for global trade, and they believe that taxing pollution and imposing higher fuel costs will have an impact on product pricing and the economy. They estimate that increasing transportation costs will impose a major burden on the raw materials and fuels they purchase, as well as on the final products they export, rendering them uncompetitive in international markets.

The exact rise in the cost of maritime transit could only be assessed after the measures are finalized. A series of recommendations to the IMO include a tax (levy/ feebate) ranging from $20 to hundreds of dollars per tonne of fuel. The fines proposed to be imposed by GFS are at similar levels.

Should the IMO apply global taxation and sanctions similar to those imposed by the EU on the ETS and FuelEU, the cost of maritime transport will skyrocket. For example, if the tax is 100 USD/CO2e and the GFS fine is equal to FuelEU, a modern capesize bulk carrier with an average yearly use of 8,460 tons of conventional fuels will pay each year:

 $2,664,900 per year for the levy, while GFS fines will be increasing incrementally as follows:

 from 2030: $1,376,080/year;  from 2035: $3,076,200/year;

 from 2040: $6,376,430/year;

 from 2045: $12,576,870/year; and,

 from 2050: $16,177,120/year.

The goals and environmental benefits of the above measures are debatable, but the amounts of money to be collected are enormous. The management of the money to be collected is being discussed. A portion of these funds will be channeled to research and promotion of low-carbon energy technology. Ships using fuel that meets the requirements will also receive part of the funds as incentives.

The issue here is that, while the taxes and fines are quite steep, there is no other alternative for ships to comply with and bring the expected environmental benefit.

Alternative Fuels

Biofuels that can be used in ship engines as a temporary solution to environmental goals are prohibitively expensive and insufficient for even a small portion of the world's fleet. Marine technology for alternative fuels, including methanol, ammonia, and hydro-

gen, is still in its early stages. The available quantities are limited. Their prices are more than twice those of fossil fuels. There is no worldwide supply network. Their production requires a large amount of electricity, which should be generated from renewable energy sources like solar or wind farms. It is anticipated that to supply shipping solely with alternative fuels, 160% of the world's electric power will be required and should in fact be generated entirely from alternative types of energy.

Even if we could achieve large-scale production of alternative fuel and build a global distribution network in the next few years, it will take several years to replace the world fleet's 56,000 ships with new ones that can use alternative fuels. The global shipbuilding sector can deliver approximately 2,000 new ships each year. Furthermore, there are also concerns regarding the overall ecological footprint of the green transition and whether alternative fuels do not have an environmental footprint or that their widespread use would not result in more serious

environmental challenges in the future.

Nuclear energy is being examined as a potential future solution. But, do we prefer radioactive waste or CO2 emissions? Even Molten Salt Reactors (MSRs), which are thought to be very safe, produce radioactive waste that has a long lifespan and can have severe implications if released into the environment. It would be dangerous to proceed with a widespread deployment of nuclear reactors, while underestimating the environmental impact of their waste and take for granted that it will be safely stored and handled for millennia.

The objective of arriving at net-zero emissions by 2050 is not attainable. Ships are the most environmentally friendly and efficient mode of transportation, and they will remain so even as environmental efforts cause sea transport to become significantly more expensive. Geopolitical and economic debates will always prioritize shipping, but only ecological concerns and demonstrable environmental benefits should drive environmental restrictions.

It will take several years to replace the 56,000 ships in the world fleet with new ones, as the global shipbuilding sector can deliver some 2,000 new ships a year.

The exact rise in the cost of maritime transit could only be assessed after the measures are finalized. A series of recommendations to the IMO include a tax (levy/feebate) ranging from $20 to hundreds of dollars per tonne of fuel.

Resilience, innovation, and superior services

Greek shipowners, equipped with their vast experience and adoption of new technologies, are prepared to embrace the future and effectively face any challenges presented

Manager, Business Development, ABS

The Greek maritime sector is highly diverse and reflects global trends in shipping. Since the COVID pandemic, strong demand and the impact of geopolitics on supply chains has provided support to many sectors.

The hallmarks of the Greek shipping industry include the ability to create innovation in business opportunities, an appetite for commercial risk taking combined with high quality operations.

The Greeks' long experience in operating ships, together with talent that passes from older to new generations and passion for what they do (not only owners but also employees) are all essential ingredients to success.

In terms of the challenges that the industry has to face, the evolving regulatory agenda driven by the energy transition and its impact on vessel and fleet operations are among the most sector-specific risks. In order to plan their investments, owners need first to understand the opportunities that can be created from new fuels and new energy efficiency technologies.

More broadly, the impacts on trade and safe operations from geopolitical risk and climate change are increasing and are adding to the instability around trade and investment outlook.

Increasing regulation

The EU ETS is a 'new normal' for shipping and as such, ABS is closely monitoring how it begins to work in practice and the impact it has on our clients. It is important to understand that the regulation will evolve over time and the longer term impact is yet to be felt.

This said, the intention is clearly to encourage the shipping industry to be more efficient on a voyage and fleet operations basis and as such it will help to serve as a

Because it is not practically possible to replace the existing fleet by 2030, it is essential to improve efficiency using voyage management tools.

driver towards cleaner and more sustainable fleet operations. Because it is not practical or possible to replace the existing fleet by the time that the first of the IMO's decarbonization goals in 2030, improving efficiency using voyage management tools and especially retrofits of energy efficiency technologies will be essential.

ABS provides advice and support on the practical adoption of these innovative technologies, including performing a techno-economic analysis of assets and fleets to understand the options best suited for individual customers.

Lower carbon emissions

The most important challenge we face towards 2030 is twofold: the production, distribution and adoption of renewable fuels and the ability to capture carbon emissions until new fuels are available at scale.

The magnitude of the clean energy challenge before us is daunting but it can be boiled down to our ability to drive down costs and drive up efficiencies in two critical technologies: electrolysis and carbon capture.

Ultimately, our ability to harness clean energy to split water into oxygen and green hydrogen via electrolysis at scale, and to efficiently trap CO2 from fossil fuel emissions and produce blue hydrogen via carbon capture technology are going to be the defining challenges.

ABS research demonstrates that we can

get to net zero by 2050 but to do so we will need to harness the potential of energy efficiency improvement technologies to reduce aggregate fuel consumption by 15% on the existing fleet and new vessels. At the same time, we will need carbon capture rolled out across much of the oil-burning fleet, reducing onboard CO2 emissions by 70%. Those that do not or cannot adopt carbon capture will need to switch to e-diesel or zero-carbon biofuels. As we look ahead we can see that change will continue, regulation will tighten and owners will need to prepare and execute highly detailed and flexible strategies that respond to both design and operational requirements for greater efficiency and lower emissions.

Angelos Minakis

Modern shipping: Myths and realities

Decarbonisation and green shipping are not pipe dreams; they require commitment, cooperation and investment, but the benefits for the environment, economy and society are multiple and long-term

Dr. John Kokarakis

Technical Director, SEEBA Zone Bureau Veritas

The shift to green shipping brings with it a host of questions and concerns. Myths and misconceptions overshadow reality, creating confusion and mistrust. It is important to separate the facts from the myths about shipping. This industry, with its immense importance to the global economy and our daily lives, deserves recognition for its progress and efforts towards a sustainable future.

Myth: Decarbonisation is impossible. Technology is evolving rapidly, offering sustainable solutions for shipping. Alternative fuels, electrification and innovative practices pave the way to a "clean" future.

Myth: Green shipping will send transportation costs skyrocketing. The initial investment in green technologies may seem high, but in the long run, fuel savings and reduced emissions pay off both financially and environmentally.

Myth: Green shipping will put jobs at risk. The shift towards green shipping is creating new jobs in areas such as the development and maintenance of green technologies. At the same time, shipping companies adopting sustainable practices gain a competitive advantage.

Myth: Hydrogen is not a greenhouse gas. Hydrogen, a light and abundant element, has been proposed as a promising alterna-

The notion that fossil fuels will completely go away by 2050 is wrong. Fossil fuels are the dominant source of global energy.

tive to combat climate change. It is often presented as a "clean" fuel, ignoring the environmental impacts associated with its production and use.

Myth: Hydrogen is a green solution to all decarbonisation problems. Hydrogen can be a useful tool for decarbonisation, but it is not a panacea. The production, storage and transportation of hydrogen pose significant challenges, such as the need for high pressure or liquefaction, which are energy-hungry processes.

Myth: Hydrogen technology is ready for widespread adoption. Hydrogen technology is still in its infancy.

Myth: Green fuels are ready for widespread adoption. Green fuel technology is still at an early stage of development. Many alternatives, such as ammonia, hydrogen, methanol and biofuels, present potential but also bring significant challenges. Producing, storing and using them on a large scale still needs a lot of work.

Myth: Green fuels are economically acceptable. The cost of producing and using green fuels is currently higher compared to fossil fuels. Their adoption will bring increased shipping costs.

Myth: The shipping industry is ready for a smooth transition to green fuels. The adoption of green fuels requires significant investment in infrastructure, technology and seafarer training. The lack of a clear regulatory framework and the existing knowledge gaps create obstacles to a smooth transition.

Myth: A carbon tax will automatically lead to decarbonisation. The effectiveness of the carbon tax depends on several

factors, such as its level, the coverage of emissions and the existence of alternatives. Without a comprehensive plan and complementary policies, the carbon tax alone may not be sufficient to bring about the desired shift towards clean technologies.

Myth: A carbon tax is the only solution to decarbonisation. A carbon tax is a tool, not a panacea. At the same time, it is necessary to adopt policies that promote the development and adoption of green technologies, energy efficiency and behavioral change.

Myth: Fossil fuels will disappear by 2050 The idea that fossil fuels will disappear completely by 2050 is wrong. Fossil fuels are the dominant source of global energy. A complete departure from them within 26 years is a huge undertaking. Many economies around the world depend on fossil fuels for energy production and revenue generation. Cutting the fossil fuel umbilical cord would cause significant economic disruption. Building renewable energy infrastructure requires huge investment and time.

Decarbonisation and green shipping are not pipe dreams. They require commitment, cooperation and investment, but the benefits for the environment, economy and society are multiple and long-term. Let's put the myths aside and embrace the change towards a "clean" future in shipping.

Sailing beyond sustainability: Α shipmanager's ESG mentality

In the dynamic world of maritime operations, the integration of ESG principles has become a fundamental aspect of corporate strategy. Αmidst this backdrop, certain ship management companies stand out for their pioneering ESG approaches, setting a standard for the industry to emulate

George Skrimizeas

Managing Director Caliber Maritime S.A.

The journey of such companies showcases how their differentiated Environmental, Social, and Governance (ESG) strategy has propelled them to the next level and created an example to be followed.

Setting the Course: A Differentiating ESG Strategy

At the heart of our company's ESG strategy lies a commitment to innovation, collaboration, and continuous improvement. Unlike conventional approaches that merely aim for compliance with regulations, we adopt a proactive stance towards sustainability, viewing it as a strategic imperative rather than a mere obligation. Our approach encompasses three key pillars:

1. Environmental Leadership: The company recognizes the pressing need to address environmental challenges facing the maritime industry. As such, we have embraced a leadership role in pursuing environmentally sustainable practices. This includes investments in cutting-edge technologies to reduce emissions, enhance fuel efficiency, and minimize environmental impact. From the adoption of biofuels to the installation of Energy Saving Devices, we work with key stakeholders and major industry players who are at the forefront of driving innovation in environmental stewardship.

2. Social Responsibility: Central to the company's ethos is a deep commitment to social responsibility. We place a strong emphasis on the well-being and safety of our crew onboard, implementing rigorous safety protocols, comprehensive training programs, and wellness initiatives for seafarers. Furthermore, the company actively engages with local communities both in Greece and

Recognizing the interconnected nature of sustainability challenges, we actively collaborate with industry peers, governments, NGOs, and other stakeholders to drive collective action.

the Philippines, supporting educational, healthcare, and infrastructure development projects. By fostering a culture of respect, diversity, and inclusion, we strive to create a positive impact on society at large.

3. Governance Excellence: The company upholds the highest standards of governance, transparency, and ethical conduct. We have established robust compliance frameworks to ensure adherence to regulations, mitigate risks, and uphold integrity across our operations. Moreover, the company promotes accountability and stakeholder engagement, actively seeking input from investors, customers, and other stakeholders to inform its decision-making processes. By fostering a culture of trust and integrity, we aim to build long-term relationships based on mutual respect and transparency.

Navigating the Waters: Taking ESG to the Next Level

What we believe sets us apart is our unwavering commitment to continuous improvement and innovation. Rather than resting on its laurels, the company is constantly seeking new ways to raise the bar and push the boundaries of sustainability. We leverage technology, data analytics, and collaborations to drive meaningful change across our operations.

We embrace technological innovation as a catalyst for sustainability. We invest in

state-of-the-art systems and equipment to optimize vessel performance, reduce fuel consumption, and minimize environmental impact. From digital twin simulations to real-time monitoring and control systems, the company harnesses the power of technology to drive efficiency and sustainability across the fleet.

Recognizing the interconnected nature of sustainability challenges, we actively collaborate with industry peers, governments, NGOs, and other stakeholders to drive collective action. We participate in industry consortia, research partnerships, and knowledge-sharing initiatives aimed at advancing sustainable practices and addressing common challenges. By fostering collaboration and partnership, the company amplifies its impact and accelerates progress towards shared sustainability goals.

Most importantly, the company positions itself as a thought leader in sustainable shipping, sharing best practices, insights, and lessons learned with the wider maritime community. Through conferences, seminars, and publications, we raise awareness about the importance of ESG and advocate for greater industry-wide adoption of sustainable practices. By leading by example and sharing our experiences, we aim to inspire others to follow suit and drive positive change in the maritime industry.

The maritime industry plays a pivotal role in global trade, facilitating the movement of goods across continents. In the realm of maritime operations, ship management companies are the key to ensuring the efficient and responsible operation of vessels. Shipmanagement ESG is evolving rapidly, driven by emerging trends and shifting stakeholders expectations. As such, we all have the obligation to continuously improve towards a more sustainable and resilient future.

Nuclear energy in shipping: Friend or Foe?

Nuclear energy in shipping offers opportunities and challenges. While nuclear fission is an existing and proven technology, fusion technology, the "hot holy grail of energy and propulsion", demands our attention

Harilaos Petrakakos

Founder and Senior Consultant to P&P Marine Consultants and Chairman of Panel M48 "Nuclear Power in Commercial Shipping"

Some years ago, as in 1973, at the height of the energy crisis of the time, we began to explore the emergence of nuclear power in shipping so that the US and the world would not be held to ransom by fossil fuel producers. It was a follow-up of the test of the MV SAVANNA, which was equipped with a water-cooled reactor, but this time we considered the possibility of installing a molten salt reactor.

Only a year earlier, in 1972, the safest method of producing nuclear energy at the time at the US Oak Ridge National Laboratory had been barred from further funding by an executive order from President Nixon, ostensibly or conspiratorially because it could not produce material that could be used to build nuclear bombs. This was the molten salt reactor technology. As a result, these efforts were abandoned before they had even begun.

Because of the Chernobyl and Fukushima accidents, the world turned back to rebuilding Generation IV reactors. I like to call them the new molten salt reactors because they are a continuation of the then abandoned Oak Ridge lab research.

Their modus operandi is easily accessible to anyone who is really interested in history.

It was in 2012 that the Oak Ridge lab handed over the technical documentation for the molten salt reactors to the Chinese.

At the same time, we have the good news of fusion technology opening up new avenues and new achievements, bringing the hope of energy and propulsion as the sun and the stars do.

Even though nuclear power in shipping offers potential benefits, several issues must be carefully addressed to ensure its responsible and sustainable implementation.

As the shipping industry strives to achieve a zero carbon footprint by 2050, there is a very serious debate about whether nuclear reactors installed in ship designs that are simpler than those used for offshore wind turbines will decarbonise the energy sector on the one hand, and use smaller reactors to power the ships on the other.

Nuclear energy in shipping has its advantages and disadvantages. On the one hand, it offers a reliable and efficient source of energy that reduces emissions and increases the range of ships. On the other hand, safety concerns, potential accidents and environmental hazards must be carefully managed. Overall, it is a complex issue that requires thorough assessment and regulation.

Nuclear power in shipping has attracted attention due to its potential to address the challenges of energy efficiency and emissions reduction. Here are some detailed points:

Advantages:

1. Efficiency: Nuclear propulsion can provide constant and high power, allowing ships to maintain their speed and efficiency over long distances without the need for frequent refuelling.

2. Lower emissions: Compared to conventional fossil fuels, nuclear energy produces minimal to possibly zero greenhouse gas emissions during

construction and operation. This contributes to cleaner maritime transport and certainly mitigates the effects of climate change, especially if coal-fired power plants near the coast or diesel power plants on islands and other areas are eliminated.

3. Extended range: Nuclear ships have the advantage of having a longer range and operating life, making them suitable for long-distance voyages without the logistical constraints of conventional-fuelled ships. The elimination of fuel tanks also increases the cargo capacity of ships of the same size.

4. Cost savings: Although the initial construction costs of nuclear-powered vessels are high, the long-term operating costs can be lower due to reduced fuel consumption and maintenance requirements. The reactors are "leased" for three ship sets or 75 years, i.e. for the life of the reactors --whether fission or fusion-and at the end of the ship's life they are simply transferred to the newly built ship.

Disadvantages:

1. Safety concerns: Nuclear accidents at sea pose a significant risk to human life, the environment and ship operations. Ensuring strict safety protocols, emergency procedures and adequate training of crew members is of paramount importance. The risk analysis has already been initiated by the Panel M48 of the Society of

Naval Architects and Marine Engineers (SNAME). It analyses the risks and makes separate recommendations for ships with fission reactors and ships with fusion reactors.

2. Environmental hazards: While nuclear energy itself causes almost no air pollution, the disposal of nuclear waste in the case of fission reactors and the possibility of accidents leading to a low probability of radioactive contamination are environmental risks that need to be carefully addressed. In this context, the Panel M48 will look at ways and means --beyond industry guarantees-- to prevent radioactive or other marine pollution.

3. Regulatory challenges: The use of nuclear energy in maritime transport requires compliance with strict regulatory frameworks at both national and international levels. Compliance with safety standards, licensing procedures and international treaties such as the United Nations Convention on the Law of the Sea is essential. Regulations will be the

biggest hurdle, as the UN’s IMO will have to accept the regulations that allow ships to move freely with the reactors on board. And that is something that will certainly happen at some point.

4. Public perception: Public perception of nuclear energy, especially after accidents such as Chernobyl and Fukushima, can influence the acceptance and adoption of nuclear-powered vessels. It is important to allay public concerns through transparent communication, community engagement and education. Education, information and more education.

To summarise, nuclear power in shipping presents both opportunities and challenges. While it offers potential benefits in terms of efficiency, economics, zero emissions reduction and operational resilience, safety, environmental, regulatory and public acceptance issues must be carefully weighed and considered to ensure responsible and sustainable implementation.

Based on our description above, we therefore believe that while fission is an existing and proven technology, the technology that requires our attention is fusion, the "hot holy grail of energy and propulsion".

We need a few years, which I will say --as believed by the optimists-- that it is 4 years, while the pessimists believe that fusion technology will never come about. I admit that I am confident the marine sector will be used first in National projects as China has proven it can do, until all countries create a standard for fission with molten salt reactors and a separate standard for fusion. Finally, it should be underlined that fusion is not considered radioactive and therefore risk analysis and regulatory regimes will be much easier than generation IV reactors. However, all this remains to be seen.

Although the initial construction cost of nuclearpowered ships is high, long-term operating costs can be lower due to reduced fuel consumption and maintenance requirements.

The second photo is the set up of the Molten salt reactors as designed by Flibe, In the lower part of the photo are the drains in case of an accident.

Cross-section of a fusion reactor of a diameter of 2m, generating between 12 MW and 20 MW of electricity.

The green transition in the shipping industry

Spyridon Zolotas, South EMEA Senior Director at RINA (Registro Italiano Navale), examines some of the recent technological advances in the efforts to decarbonise shipping and discusses innovations we might see by 2030

Spyridon Zolotas

South EMEA Senior Director, RINA

As the shipping industry looks to reduce environmental impact and promote sustainability, a wave of innovations has emerged. If we are to meet carbon reduction targets and address the challenges of climate change, it is imperative we explore all options available to us and take steps today to reduce emissions, not only in shipping but across all industry and society. For the marine sector, technology, new fuels, and advances in operating processes all offer pathways to progress on the path to cleaner future.

There are many project examples in which RINA is supporting clients and the wider sector in reaching their targets. We have been exploring alternative fuels like ammonia, green methanol and hydrogen to decrease the maritime industry's carbon emissions. For example, we have been working with a global leader in engineering and construction for the energy and infrastructure sectors on the use of ammonia, studying all aspects related to the installation of ammonia containment systems, refuelling, and distribution systems, along with ammonia fuel cell technology, and ammonia-fuelled engines and gas turbines.

Another collaborative project, this time with Eni, is exploring the use of Hydrogenated Vegetable Oil (HVO), hydrogen, and ammonia, both "blue" and "green," derived from biogenic, renewable, or waste raw materials. Initiatives include implementation of experiments focused on the onboard carbon capture, and the use of hydrogenated vegetable oil (HVO) as drop-in alternative to traditional fuels.

Aasen Shipping is a great example where proactive measures being taken today can significantly reduce emissions. It has optimised design and implemented hybrid propulsion with batteries in its ships, making them the most environmentally friendly

We expect that the push to reduce emissions will spur innovation in ship design, resulting in more streamlined vessels with advanced hull coatings, air lubrication systems, and wind-assisted propulsion.

of their kind. The initiative significantly reduces fuel consumption (by approximately 400 tons each year), reducing both costs and emissions.

We are also seeing a heightening emphasis on improving onboard energy efficiency. This includes improving hull designs and propulsion systems. The adoption of digital tools such as SERTICA further helps ships manage their fuel and energy usage more efficiently, leading to less waste and better compliance with global energy standards. For example, the Greece-based ferry company, Attica, has digitally transformed its fleet management using SERTICA modules including Planned Maintenance System (PMS), Safety Management System (SMS), Inventory of Hazardous Materials (IHM), Certificate tracking, electronic forms, and analytics capabilities. These tools assist in optimising its operations with greater overall operating efficiency, reduced costs, and, ultimately, lower emissions.

2030: What could the future hold?

With the International Maritime Organization (IMO) setting ambitious targets to halve greenhouse gas emissions by 2050, shipping companies will almost certainly accelerate their adoption of low-carbon and carbon-neutral fuels. Biofuels, synthetic fuels, and LNG will become more prevalent, with significant investments in the development of green hydrogen and ammonia as

viable alternatives to traditional bunker fuel. The work we are doing today in areas such as hydrogen, HVO, ammonia, and developing onboard CO2 capture technologies are steps toward this future.

No solution can be ruled out. RINA is, in fact working with the industry on methanol options too. It offers a viable alternative as it can reduce the carbon dioxide in emissions generated by marine diesel oil or marine gasoil, especially when bio-methanol is used. Methanol has the benefit of being liquid at room temperature and atmospheric pressure, being sulphur-free, and having low overall emissions. So, while it has its limitations, methanol is easier to handle and has higher energy density than hydrogen. Both methanol and hydrogen have a low flash point, which must be addressed both by applying existing safety rules and by carrying out detailed risk analysis.

Furthermore, we anticipate that battery technology will continue to advance, allowing for the broader adoption of fully electric and hybrid propulsion systems in short-sea shipping. Innovations in battery density and charging infrastructure will enable longer journeys and quicker turnaround times for electric vessels.

We also expect that the push to reduce emissions will spur innovation in ship design, resulting in more streamlined vessels with advanced hull coatings, air lubrication systems, and wind-assisted propulsion such as rotor sails and kites especially if combined with electrical propulsion. These technologies will help to decrease fuel consumption and enhance operational efficiency.

The role of digitalisation for the future Digitalisation will play a significant role in transforming the shipping industry, particularly in the realm of vessel maintenance

and safety management. With the advancements in PMS and SMS, ship operations will become more predictive, proactive, and efficient.

PMS technology is poised to become more sophisticated, integrating real-time data analytics to predict maintenance needs, thereby avoiding unnecessary downtime and extend the lifespan of critical ship components. By employing predictive analytics, PMS will provide ship operators with the insights needed to perform maintenance tasks just in time, preventing both premature and overdue servicing, which often results in higher costs and increased risk of equipment failure.

Safety Management Systems will also see a boost from technological developments. Incorporating elements like IHM and comprehensive certificate tracking will ensure that vessels not only adhere to the strictest safety standards but also comply with environmental regulations. Moreover, as electronic forms replace paper-based reporting and record-keeping, this will not only reduce the environmental impact of shipping operations but also enhance the accuracy of records and streamline the flow of information between ship and shore. Ultimately, analytical capabilities will play a central role in operational decision-making, enabling shipowners and operators to draw actionable insights from data collected, ranging from fuel consumption patterns to machinery performance. This will drive more informed decisions

and allow voyages to be optimised for both economic and environmental efficiency.

Beyond ship operations

Our focus for the future needs to not only be on operating ships but also on their entire lifecycle. We see more sustainable practices in shipbuilding, including the use of recycled materials and modular designs that can be easily disassembled for recycling, becoming the norm, along with stronger regulation around the end-of-life phase to ensure environmentally sound dismantling and recycling.

A sustainable future

By 2030, the integration of these technologies and innovations will be critical in supporting the maritime industry's shift towards greener and more sustainable operations, offering enhanced safety, improved environmental compliance, and optimized vessel performance. These advancements will propel the industry forward in the green transition, and provide a competitive edge to those who adopt them early.

Challenges Ahead

Despite the strides we are making in reducing carbon emissions, the industry faces several significant challenges. High costs and technical difficulties related to new technologies, such as large battery storage and hydrogen fuel integration, are major hurdles. There is also a critical need for better fuel infrastructure to support the uptake

of new fuels like ammonia, green methanol and hydrogen.

Additionally, keeping up with stringent global emissions regulations can be complex and expensive for ship owners and operators. Whatever solutions we look to for the future, we need to ensure they are practical and economically viable to ensure we not only meet our decarbonisation targets, but also ensure broader sustainability of the industry.

Ultimately, the key driver for greener shipping will be increased collaboration across the entire supply chain. Partnerships between shipping companies, fuel suppliers, ports, technology providers, and regulatory bodies will be crucial in aligning efforts towards sustainability goals.

Conclusion

Compliance will drive innovation, with new international and local regulations shaping operational practices. We expect increasing investment in technologies and processes that not only meet but exceed compliance requirements to provide competitive advantage.

Overall, the shipping industry is on a promising path towards significantly enhancing its sustainability by 2030, but we cannot afford to take our ‘foot off the pedal’. However, with ongoing innovations and collaborative efforts, current challenges can be overcome and, if we continue to embrace all options open to us, we will succeed in the ‘Green Transition’ of this vital industry.

Τhe key driver for greener shipping will be increased collaboration across the entire supply chain. Partnerships between shipping companies, fuel suppliers, ports, technology providers, and regulatory bodies will be crucial in aligning efforts towards sustainability goals.

The jigsaw is highly complex, but the stakes have never been higher

The entire maritime value chain may be a competitive industry, but it must collaborate and leave behind outdated practices which hinder progress

The International Bunker Industry Association (IBIA) represents the interests of the full range of the marine energy industry on all critical international regulatory issues at the IMO and beyond, also through partnerships with acclaimed associations, such as BIMCO, HELMEPA, or the Global Center for Maritime Decarbonisation. Since obtaining NGO consultative status at the IMO in 2005, IBIA engages in meetings, submissions, and direct discussions with members through global events, Working Groups -especially on future fuels, mass flow meters digitalization- Regional IBIA Boards, and training.

Decarbonisation is the clear goal, but the roadblocks are immense. It is therefore an understatement to state that the shipping and bunker industry are faced with unprecedented challenges. Commercial certainty is yet unattainable, technological advancement is ongoing but not yet fully existing, new fuels' massive quantities needed are far from being produced, enforceability of regulations is untested, and regulations themselves have not been fully finalized. The energy transition is radically different from earlier evolutions, being an environmental and social imperative, emphasized by regulatory demands to reduce emissions, and geopolitics, which are also critical and serve as a stark reminder of how paramount energy sources are to the global economy.

Greek shipping, always focusing on innovation and thinking outside of the box, remains at the forefront of decarbonisation developments, but it should not go the extra mile alone. Shipping is an interconnected industry, and we need to focus on having

Shipping is an interconnected industry, and we need to focus on having international, clear, and enforceable rules and pathways.

international, clear, and enforceable rules and pathways. All stakeholders have an essential role to perform and all of us should be focusing on the elements and game-changers of this transition. It is their progress which can act as its real strength, whilst any shortfall will prove to be a dramatic setback. These are, indicatively:

Regulations. There is an evergrowing list of compliance and disclosure obligations from multiple authorities. Progress in the IMO is noticeable and last July's MEPC 80 brought the revision of its GHG strategy. The targets are now clear, even though characterized as "indicative checkpoints": reduction of GHG emissions by at least 20% (striving for 30%) by 2030 and by at least 70% (striving for 80%) by 2040, compared to 2008, so to reach net-zero GHG emissions "close to" 2050. Moreover, uptake zero or near-zero GHG emission technologies, fuels and/or energy sources by at least 5% (striving for 10%) of the energy used by international shipping by 2030. Further work is still outstanding and the recent MEPC 81 decided that discussions will continue so to set up technical (a global fuel standard based on clear Life Cycle Assessment regulations) and economic (a carbon tax or levy) measures.

In parallel, the EU has added shipping in its ETS and together with the Fuel EU they will have enormous financial

repercussions for owners/operators/ charterers, aiming at creating obligations and incentives to reduce GHG emissions. Moreover, national regulations may come into play, complicating compliance even further.

Accordingly, we see the same goals, but different paces, fragmented regulations, untested modes of enforcement. This leads to desperate calls to harmonise the standards into a global set of rules, as uniformity and clarity are essential.

Production & availability. A multifuel future is unavoidable, so to attempt to cancel one in favour of another or declare that one fuel is the winner adds little to the complex investment decisions needed. However, the current global production capacity of green fuels from renewable energy sources cannot yet meet a decent percentage of the global shipping demand and this situation is not going to change imminently.

All other fuel "colors" are a compromise, an antechamber, at best, to the full transition. For green fuels to be produced, the relevant projects need to multiply immensely and to succeed, especially as shipping does not operate in a vacuum and there are other, crucial to our civilization, industries which will seek the same energy sources.

Research & development. For new fuels to become a gradual reality they need to be producible, transportable, storable, technologically feasible, produce enough energy, safe, and inexpensive. R&D progress is truly

Constantinos Capetanakis

IBIA Chair Bunker Director at Starbulk

remarkable, but there is no doubt there is still a long way to go to achieve such scalability and accelerated pace which would allow us to view fossil fuels as a source of energy to which we will bid farewell soon. This is why all stakeholders are, rightly so, equally focusing on optimizing the energy efficiency of existing vessels.

Infrastructure. This factor is sometimes being underplayed. Transportation, storage, fueling stations, ports' readiness, bunker players' adoption, can either advance (when projects mature) or hinder (when they are lagging) the timely adoption of clean technologies. No offtake agreement or investment can materialize without knowing -in advance- where the chips will fall and how a vessel's maritime adventure is to be safely performed. The bunker industry, especially, needs to be kept fully informed, consulted, and incentivized if sufficient levels of infrastructure readiness are to be reached.

All stakeholders have an essential role to perform and all of us should be focusing on the elements and game-changers of this transition.

Costs. Currently, new technologies and alternative fuels are prohibitively expensive. Zerocarbon fuels are multiple times the price of conventional fossil fuels, hence the widespread prediction that a tax and subsidy system is essential for these fuels to achieve a feasible commercial scale. Otherwise, the existing price gap will lead to further delays and to an uneven playing field, as those who will ultimately be called to pay the price are the consumers.

Incentives. The amounts needed to be invested for production, research, infrastructure, acquisition of new vessels, barges, storage facilities, are in the realm of trillions of US dollars per year. Accordingly, financial support, subsidies,

The entire maritime value chain may be a competitive industry, but it must collaborate and leave behind outdated practices which hinder progress. We need trust, new technologies, sharing of knowledge in a structured way, awareness of what it means not to conform.

government incentives, are all imperative to encourage stakeholders to invest, consider offtake agreements, and project the future through a viable business model. And this leads to the next point.

Collaboration. There is neither time nor room for isolation. The entire maritime value chain may be a competitive industry, but it must collaborate and leave behind outdated practices which hinder progress. We need trust, new technologies, sharing of knowledge in a structured way, awareness of what it means not to conform.

Collaboration is the key accelerator. No one ever considered that this energy transition would be anything less than one of the greatest challenges for our civilization. Still, all of us need to act in concert, and to use all available means of ingenuity to make it a reality.

In conclusion, the shipping and bunker / marine energy industry explores all options, participates in regulatory authorities' deliberations and R&D projects, optimizes fleet performance, focuses on crew training, consults with Associations, Classification Societies, engine makers, fuel producers, green initiatives. Will this be enough to achieve the set milestones? It can be done, provided all basic parameters are fully met, without delay or hesitation by global regulators, and always with prior and ongoing assessment of the different social, environmental, geographical considerations. The jigsaw is highly complex, but the stakes have never been higher.

ONEX yards speed up toward a new era of green shipping

Panos Xenokostas President and CEO of ONEX Group, tells "N" about the investment made in the Neorio Syros and Elefsina yards, the shipbuilding activity following a streamlining strategy, and the new potential opening up in the industry

By Paris Tsirigotis ptsirigotis@naftemporiki.gr

Amajor streamlining project for the shipyards of Syros and Elefsina, now run by ONEX Shipyards & Technologies Group, is seen as a personal bet by the Group’s President and CEO, Panos Xenokostas.

Speaking with "N" about the two shipyards, Mr. Xenokostas emphasises that he is very proud of the quality of work delivered by employees, which proves their excellent skills and and know-how, and is, in turn, the reason why the specific shipyards enjoy the preference of the majority of shippers.

As Greece is regarded the strongest shipping power in the world, the country now acquires its own shipbuilding base in the Mediterranean and, in fact, in a major geostrategic location for ocean shipping, he points out, calling on the EU to make the needed institutional arrangements to bolster European shipyards in view of the sector’s green transition.

Elefsina shipyards streamlining project

Expounding on the streamlining plan for ONEX’s Elefsina shipyards, he outlined that procedures for the transfer of the shipyard's assets have already been concluded and the required protocol is currently being finalised.

"There is some paperwork involved in this matter and a number of issues that should be resolved, such as the removal of mortgages from creditors for previous management debts, while all areas of the facility must be inspected by town planning authorities to speed up the signing of contracts, which is to be followed by some mortgage procedures, so that everything is legal and orderly."

He points out that a similar procedure has been followed in the case of the Syros shipyards, where numerous asset transfers required adjustments.

"In Syros, the ONEX Group in was forced to make several town planning adjustments that had been

neglected by the previous management, with the cost amounting to hundreds of thousands of euros."

Mr. Xenokostas notes that while there is a timeconsuming bureaucratic process and risks involved in all areas, it was imperative for the shipyard to be in operation, otherwise the process would have been delayed for at least two years, with workers held in "captivity".

"We took a big risk by investing in the shipyard before we even owned it. However, the issue is now under control, and coordination with the Greek government is outstanding. We saved a lot of time, while the sites have begun to operate and there are considerable earnings distributed to employees and the organization, allowing us to move on with the restructuring plan.

Greece, regarded as the strongest shipping force in the world, now gains its own shipbuilding base in the Mediterranean, and, in fact, in a crucial geostrategic location for ocean transport.

“Until two years ago, workers had gone unpaid for an extended period of time, and debts had climbed to 44 million euros, while two of the drydocks were underwater and all facilities were in a bad state.

“In the last year and a half since the (what we call) interim operation began, workers have received around 21 million euros in previous ownership arrears, pay, and compensation, with another 43 million euros expected to be repaid under the restructuring plan. At the same time, over 50 million euros have been invested so far, out of a total investment valued at

more that 250 million euros.”

He adds that more than 85 ships have been repaired or are still under repair at the Elefsina yard in just 13 months. The facility expects to repair an annual total of 110 to 120 ships, with this figure expected to rise even higher with the operation of additional floating drydocks to be installed in both shipyards.

Referring to the ‘bad habit’ of filing judicial appeals against privatisation procedures that frequently plagues the country, the president of the ONEX Group emphasized that this may be remedied in only one way: “The price of the processing fee should be greatly raised. As weird as this may appear at first glance, anyone who understands how these things work realises that such a thing would never prevent someone with a legitimate interest; on the contrary, it would deter those who do it solely to oppose the investment at hand. After all, you cannot deny someone the right to claim their rights, and we would not want that. Simply put, investments need to be secured.”

It should be emphasized that ONEX Elefsis Shipyards LLC committed to acquire Greece's second largest shipyard through the Greek Bankruptcy Law, namely by presenting a Restructuring Plan for approval by the Greek Courts. “A high investment rating means, among other things, that timetables in Greece should be observed both for rights and obligations."

Going into shipbuilding mode

According to Mr. Xenokostas, the first shipbuilding deal for a 100-metre ferryboat would be signed with Attica Group in the coming period, with the option for another one.

He clarified that the option for the second ferry was given to allow time for the shipyards’

reorganisation, but he said the newbuild’s sheet metal cutting work will be completed within the current year. At the same time, he explained that the ship's engines are gradually being build, while the alternative fuel to be used is still being considered.

Another deal, also with a Greek shipowner, is currently in the works, concerning the building of two tugboats of latest standards, in partnership with one of Canada's largest design offices. Finally, current plans include a third contract for the building of a 45-metre offshore vessel.

"Our goal is to start building up a production line in both shipyards," Mr. Xenokostas exclaimed.

Personnel Training

The President of the ONEX group addresses the challenge of training new hires by pointing out the expanding needs and the difficulties in finding individuals who meet the necessary qualifications. Thus, in cooperation with the Public Employment Service (DYPA) and the Ministry of Education,

Vocational Training Schools are now operating in Syros and Elefsina, with a focus on the majors required to make up for significant shortages. These schools offer students a combination of paid internship and theoretical instruction within the Group's facilities.

In reference to the shipyard's current workforce skills and expertise, Mr. Xenokostas says that, in light of the Group's collaboration with Italy’s Fincantieri, and provided that a contract for the building of four corvettes is ultimately awarded to ONEX, the first of the these ships will be built in Greece with the intention of providing Greek shipyard workers with a comparable education in the new methods applied on warship building.

"Our already active staff members are easy to train because they have a lot of experience." Training on new areas will be tailored accordingly. Not to mention that the Greek shipyard workforce is highly skilled and well-regarded throughout the shipbuilding

industry. “Our goal is for the group's shipyards to develop a comprehensive culture of cooperation in the coming years, allowing them to operate as one cohesive organization.

“Size counts in an internationalized sector like shipping, and it should be noted that we, as a Group, compete on a daily basis with countries like Malta, Turkey, Italy, and France.”

The EU must legislate in favour of European shipyards

In his capacity as President of the Union of Greek Shipyards (EEN), Mr. Xenokostas highlights that the union is involved in talks with the Greek government and EU bodies regarding shipyard-related changes and initiatives that must be implemented at both the national and European levels.

“Europe needs to look at itself and talk with sector entrepreneurs. Whether it's about commercial or state-owned shipyards, the legal framework must protect Europe-based shipyards against unfair competition,” he says, emphasizing that the parties proposing a right must also bear the corresponding obligation.

The installation of additional floating drydocks at both yards will greatly boost shipbuilding activity in Syros and Elefsina.

In terms of the green transition of shipyards, he emphasizes that, while the Greek government has taken several steps to secure the necessary European resources, much remains to be done at the European Union level, which appears to treat shipping and shipyards in a rather guilty manner, undermining its very self. At the same time, while the government has made numerous and important changes to the national legislative framework, this is nevertheless often out of date, causing protracted delays for investors and entrepreneurs.

"The sector-related issues that are currently being intensely discussed are labour-oriented, but also regard taxation issues, as the area of shipyards - even though considered as tax-free - in reality this in not true in any way” he points out, adding that: “Shipyards should disengage from domestic bureaucracy and adapt to the way shipping works, operating in a liberated manner.

"It is impossible for shipyards to work under different rules than the ships they work on, as these ships operate under a tax-free and flexible framework. Shipyards must operate under the same framework as shipping because they are part of the shipping sector, not of the rest of the industry,” argues Mr. Xenokostas, saying that “something like this will assist the domestic economy, the wider shipbuilding business, and above all the country’s shipyard workforce.”

Panos Xenokostas: Over 50 mln euros have already been invested, out of a total investment of more than 250 mln euros.

Europe needs rules to protect its shipyards

ONEX Group has made specific proposals for several issues facing the sector, some of which include VAT and taxation considerations. Natural issues, such as the need to train new employees, as well as the option to hire personnel from third nations, have been also raised. After all, as Mr. Xenokostas particularly stressed, Greeks no longer choose to work in certain shipbuilding jobs, such as ship cleaners. These inadequacies also result in the loss of years of experience.

Employee safety

Regarding workplace safety, the president of ONEX emphasizes that at the Group’s shipyards, strong safety standards are in place for workers, while safety technicians supervise the work being carried out, as all projects are executed in accordance with particular safety procedures and certifications.

He notes that in all operations, teams are set up for firefighting and supervision, while the shipyard facilities are equipped with all of the appropriate protective equipment (e.g., masks, safety belts for working at heights, and everything else required by safety rules). At the same time, employees receive ongoing training on adhering to safety protocols and procedures.

“Don't forget that every year there are safety certifications that both shipyards should have in order to carry out their work based on ISO standards", he noted, adding that it is often the workers’ representatives themselves who motivate their colleagues for proper compliance. Mr. Xenokostas concluded by saying that: “There are only very few workers who do not comply with the due observance of safety measures. They have been eliminated from time to time, with union consent, despite the fact that most often security issues become a subject of political and communicative exploitation by certain interest groups, which actually cover up legislation violators for their own benefit."

Wind farms

Efforts are currently being made to launch the initial projects for the building of floating offshore wind farms. This is where Greece's competitive edge rests, as the locations these wind farms are to be installed will enjoy enormous energy potential, according to the president of ONEX.

The Ministry of Environment and Energy has already undertaken major work in this area, with the institutional framework having been completed.

According to Mr. Xenokostas, the business

ONEX Group is set to participate in the construction of 4,000 - 5,000-tonne floating platforms for Greece's first offshore wind farms.

expects to be involved in the construction of 4,0005,000 tonne offshore floating platforms on which wind turbines would be based, capable of generating up to 15 MWh of power, enough to supply 20,000 households.

"We have set up a special team for the development of the specific project, while we also collaborate with other countries having exceptional know-how in individual fields, with the goal being to offer a comprehensive solution. However, our objective is to produce as many wind turbine components as possible in Greece,” he said, adding that “the big bet is building the platforms, as we hope to establish a production line. Furthermore, the wind turbines that will be constructed in Greece will need to be transported and erected on the platforms, a project

for which the ONEX organisation is already prepared to undertake.” As he explains, “this specific project will initially supply power to some small island areas, but it will eventually contribute to the country's energy balance. Of course, there are safeguards in place to protect underwater life and the overall environment. Special sensors are used to cope with cases of sabotage on wind generators and will be operational at all times, while auxiliary ships will be available for maintenance and assistance.

"The wind farms not only can alleviate the country's energy problem, but can also help Greece end up being a power supplier to other countries," emphasizes Mr. Xenokostas, adding that Greece can claim existing EU subsidies for this specific project, as it is part of the green transition.

"There are definitely substantial economic benefits involved, including a considerable contribution to Greece’s GDP and the creation of thousands of jobs. In this arena, we hope to lead an international race and leave our mark on changing the way of interaction between people, the sea, and sustainable development."

Panos Xenokostas, president of the Union of Greek Shipyards, told "N" that "EU regulation needs to protect Europe-based shipyards against unfair competition."

Enhancing the overall passenger experience

Contrary to what many expected during the pandemic, the cruise industry not only did not dip but rebounded faster than other forms of tourism, while more than 60 new cruise ships of varying sizes are scheduled for delivery over the course of the next five years

Capt. George Koumbenas President, Union of Cruise Ship Owners & Associated Members (EEKFN)

International passenger travel exceeded pre-Covid levels, hitting 31.7 million passengers in 2023, and is expected to exceed 35.7 million in 2024, with a goal to reach up to 40 million by 2027.

According to a CLIA (Cruise Lines International Association) release, the number of cruise passengers in 2023 was 7% more than in 2019, the last year before the Covid pandemic.

Asia saw the largest growth in the sector, with 2.3 million more passengers at a rate of 37.7%. The number of travelers in North America climbed by 17.5% from 2022 to 2023, reaching 18 million, while the number of travelers in Europe rose by 6.5% to surpass 8 million.

In a similar vein, more cruise passengers arrived in Greece overall in 2023 than ever before.

The Hellenic Ports Association (ELIME) reports that at 49 Greek ports, there were 5,230 cruise ship arrivals overall, with the number of passengers jumping to 7,003,150, which translates into an increase of 450 ship arrivals and 2,373,500 passengers

New environmental rules on a global and, in particular, European scale are among the challenges facing the cruise industry.

compared to 2022. In terms of percentages, there was a 9.41% rise in cruise ship arrivals and a 51.26% increase in passenger numbers in 2023 compared to 2022. Notably, a new record for the number of passengers was reached, with an increase of 14.4% from 2011. The previous all-time high for arrivals was set in 2011 with 5,261 cruise ships and 6,121,360 passengers.

The variance in the percentage changes between ships and passengers for the years 2023-2022 and the historical records 2023-2011 indicates that, on average, there were more passengers aboard cruise ships calling at Greek ports in 2023. Hence, in 2023, a ship's arrival corresponds to 1,339 people, as opposed to 969 in 2022 and 1,164 in 2011. Notwithstanding the adverse conditions in the Red Sea and the Eastern Mediterranean as a whole, a further expansion of cruises in Greece is anticipated for 2024, with a passenger increase of nearly 10%.

The numbers above demonstrate unequivocally that the cruise industry not only did not dip as many expected during the pandemic, but also rebounded faster than other forms of tourism.

More than 60 new cruise ships of varying sizes will be delivered by shipyards over the course of the next five years, guaranteeing the industry's continued growth. Estimates place the shipyards' contribution to the European economy at 47 billion euros.

In spite of the encouraging signals, the cruise industry is faced with a number of challenges, including ensuring compliance

with new environmental rules on a global scale, particularly in Europe where the EU ETS and FuelEU Maritime will be implemented starting in 2024 and January 1, 2025, respectively.

Additionally, the cruise firms are impacted in different ways by the geopolitical upheavals in the Eastern Mediterranean, the Red Sea and the Ukraine crisis.

However, the most pressing issue, by far, for the cruise industry is dealing with certain areas where it is believed that the phenomenon of overtourism is mostly caused by the number of ships and cruise passengers. In order to enhance the passenger experience and the perception of the cruise in the destinations, ongoing efforts are being made to improve management and upgrade the infrastructure.

To summarize, the global dynamics of the cruise business are enormous since it now appeals to people of all ages, making it a particularly popular form of holiday, while also providing major financial benefits to destinations.

Navigating the tides of change: the evolution of ship management

Ship managers must actively develop value-added services to meet evolving client demands, while also enhancing their expertise and specialization to further solidify their importance in the industry

In the face of an evolving maritime landscape with technological advancements, enhanced connectivity, the rise of “internet of things” and the imperative race towards net-zero, the maritime industry is heading for a paradigm shift. Unquestionably, the path forward needs a harmonious fusion of traditional know-how, expertise as well as active development of value-added services that meet evolving client and industry demands.

A notable shift towards monitoring

Ships are inevitably becoming more automated and complex in their operation; therefore, a demand will surge in certain segments of the industry for ‘multi-talented’ crew aboard, coupled with higher levels of shore-based support and monitoring. In these segments it is likely that routine maintenance functions shift from shipbased to many maintenance activities conducted by shore-based specialists or temporary riding teams on board.

With an increase in ship-to-shore data transfers, there may be a notable shift towards monitoring and control using remote computer and automation systems. Marlow Navigation has been proactive in preparing for this transition by establishing a state-of-the-art Fleet Operations Centre at their facilities, equipped with cutting-edge technology to oversee and bolster operations of ships under management.

“The ability to access shipboard data remotely and without human involvement will undoubtably reduce the administrative burden on crew. This will allow them to focus on their primary tasks of maintenance, safe ship operation, navigation and cargo. Alerts, warnings, deviations, navigation updates, cargo operations and emergency assistance will become automated. However, 24/7 monitoring is necessary” stated Marlow Operations & insurance Manager, Graham Cowling.

Ship managers must provide more measurable resources

As regulatory requirements increase in areas such as emission schemes, MARPOL compliance, environmental control and stricter

safety standards, ship managers must provide more transparent, measurable and specialised resources with a greater focus on ESG. This development will create new jobs as ship managers diversify their traditional role of providing technical support to ships, to include open reporting on areas such as environmental compliance, global regulations compliance, sanction prevention, and the ability to handle unforeseen so-called ‘black swan’ events.

While shipboard attendance will remain compulsory, the amount of travel for technical support outside of drydocking and emergency repair could decrease as the interface between shore and ship-based teams becomes more efficient and faster. For instance, with AI enhanced readings from specialised drones and cameras as well as access to condition monitoring equipment,

physical visits and inspections onboard could significantly decrease.

Skills & mindsets required to navigate future of shipping

A recent ITF report forecasts that approximately 750,000 seafarers will require upskilling to handle alternative fuels and technologies by 2050. The push towards net-zero continues, forecasting that seafarers will play a greater role in environmental stewardship, as they will be required to operate and control complex alternative fuel systems such as ammonia, methanol, as well as emission-reducing technologies like on-board carbon capture and storage. Marlow Navigation has proactively implemented training programmes with practical insights into the operation and maintenance specifically tailored to alternative fuel technologies.

New skills and mindsets will be required to navigate the future of shipping. Not only will seafarers operate, maintain, and troubleshoot these technologies but must also have a deep understanding of environmental regulations, emissions control, and waste management. “Crew managers must anticipate this transition and recognise the rapid pace of change will require continual acquisition of specialised expertise. Consequently, continuous learning will become part of daily workflows” mentioned Marlow Training Director, Joern Clodius.

Despite the rise of novel technologies, welfare and mental health will remain a significant concern. As recent events have shown, future seafarers must navigate more frequent upheavals both at sea and ashore, as well as adapt to short and long-term global disruptions. Specialised crew training centres must persist in promoting and developing soft skills such as Bridge Team and Resource Management Training. Adaptability, communication, teamwork, and emotional intelligence are just a few cornerstone abilities that will remain vital for future seafarers. By leveraging the specialised expertise and innovative solutions offered by Marlow Navigation, ship owners can navigate the complex waters of maritime. Providing value-added services that go beyond traditional ship management, not only enhance operational efficiency but also allow ship owners to focus on what matters.

Charting the Course - Marlow Navigation ‘Bridge Team & Resource Management’ Training

Cruise benefits on the economy and society

Cruise passenger traffic in 2023 rose to 31.7 mln worldwide, posting a 7% increase compared to 2019, with Greece hitting a record of 7.0 mln of cruise passenger visits in the same year

Maria Deligianni

Regional Director, Eastern Mediterranean, CLIA

With an ever-increasing economic contribution, a leading position in environmental sustainability, and an emphasis on responsible tourism, the cruise market has now grown beyond its historical figures. As a result, it emerges as a leader in both the tourism sector and the green transition of shipping.

According to a CLIA’s recently released 2024 State of the Cruise Industry Report, cruise passenger traffic in 2023 rose to 31.7 million people worldwide, recording a 7% increase compared to 2019. At the same time, cruise intention is at 82% (up 6% from 2019), validating CLIA's forecast for 35.7 million cruise passengers this year (2024), with over 40 million passengers forecast for 2027. This has urged cruise companies to raise passenger capacity, estimated to increase from 677,000 beds in 2024 to 745,000 beds in 2028.

Notably, expedition cruises emerges as the fastest expanding segment of cruise tourism, with a 71% rise in passengers who traveled on such itineraries between 2019 and 2023.

Greece is seeing a boom in cruise tourism, with a record of over 7 million cruise passengers and 5,230 cruise ship arrivals in 2023. This trend is anticipated to continue in 2024, reaching a new record. In 2024, a total of 131 cruise ships will be operating in Greece; of them, 70% will be homeporting or partly homeporting at Greek ports, setting an all-time high. The country’s economy enjoys multiple benefits from homeporting in several ways. Not only does it generate income from housing guests before and after their cruise and from their air travel, but also helps with ship maintenance and supply, refueling, crew changes and their in-country spending.

The economic advantages are already

CLIA member cruise lines are heavily investing in the industry's green transition, including investment in new ships, technologies, alternative fuels, and innovations.

evident: Greece's economy benefited from some 14,300 jobs and €1.4 billion in revenue from cruise tourism in 2022. Four primary cruise-related activities contributed to Greece's economy: cruise line supplies, shipbuilding and ship repair activities, shore-based passenger consumption, and crew spending.

Cruise passenger consumption added €324 million to Greek GDP, accounting for 53% of the overall contribution.

In the same year, approximately 2,425 jobs were created by cruise lines in Greece, including cruise ship crews and corporate head office staff. Furthermore, 11,915 job positions were created by cruise lines through direct, indirect, and induced contribution to the country’s overall economy. Passenger consumption and associated activities generated 43% of these jobs.

The cruise sector’s growth requires suitable management in order to be sustainable, giving consideration to local communities and aiming at a passenger experience that meets high passenger expectations. CLIA and its members make an important contribution in this area because, with great respect for the local communities that support the cruise industry, we work together on itineraries, port operations, and improved destination management practices to provide sustainable, optimal experiences to communities and visitors.

In addition, our member cruise lines are heavily investing in the industry's green transition including investment in new ships, technologies, alternative fuels, and innovations that benefit everyone. The order book from 2024 to 2028 numbers 56 newbuilds of a total budget of $38 billion. Our members are also working on 32 pilot programs to evaluate sustainable fuels. We estimate that 44,000 tonnes of sustainable marine fuel will be required in Europe by 2025 to meet the EU's 2030 emissions reduction targets.

To this goal, CLIA has undertaken a study in cooperation with classifiers RINA and DNV which, based on fuel infrastructure, technology, and ship routes, will assess the local investments required to decarbonise the industry by 2050.