Poseidonia by naftemporikiGR

POSEIDONIA COVER ENGLISH.indd 1

19/5/22 8:35 PM

JUNE 2022

FULL AHEAD

SPECIAL ISSUE FOR POSIDONIA

SHIPPING 2022

ENTREPRENEURSHIP

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IT’S WHAT UNITES US WE SHARE YOUR DRIVE TO LEAVE THE MARITIME WORLD IN A BETTER PLACE THAN WE FOUND IT. It’s what unites us; our passion for the oceans and our desire to not just protect our seas, but to shape a better maritime world for future generations.

Shaping a better maritime world.

NAFTEMPORIKI EDITOR - SHAREHOLDER

George Melissanidis GENERAL MANAGER

Spyros Ktenas PUBLISHING DIRECTOR

Platon Tsoulos DESIGN DIRECTOR

Dimitris Nikas SUBSCRIPTION DEPARTMENT

Christina Hafousidou MARKETING & COMMUNICATION DEPARTMENT

Effi Boni SPECIAL EDITIONS MANAGER

Giannis Sarantopoulos SPECIAL EDITIONS COORDINATOR

Dionysis Vassilopoulos REPORTAGE

Antonis Tsimplakis, George Georgiou, Paris Tsirigotis COPY EDITORS

Dionysis Marras, Ioulia Stamatelou, Sotiria Tsolakou COMMERCIAL DEPARTMENT

Otto Vassilopoulos, Panagiotis Antoniadis, Lisa Gezepoglou, Sofia Kasapaki, Irini Kastanaki, Graziella Kladi, Eugenia Panteli, Irini Politou, Giannis Tozakidis DATABASE

Antonela Toni AD OPERATIONS MANAGER

Penny Christou ATELIER ΜΑΝΑGER

Signed articles do not necessarily reflect the views of the newspaper

Betty Spanou LAYOUT

Eleftheria Kirykou Katerina Rota IMAGE PROCESSING

Eleni Kontou, Christos Bouvis PHOTO ARCHIVE

Konstantina Panagopoulou

ENTREPRENEURSHIP

FULL AHEAD

ENTREPRENEURSHIP JUNE 2022

OWNERSHIP - PUBLICATION

JUNE 2022

SPECIAL ISSUE FOR POSIDONIA

SHIPPING 2022

EDITORIAL

Full speed ahead Since ancient times, the sea has been inextricably linked to this land’s history, culture and economy. It has greatly shaped its culture, defined its identity and contributed the most to its prosperity. Through consistency, dynamism, self-denial and strong will, Greek shipping developed strong activities through all of the country’s historical periods, prevailing in the global maritime trade. Enjoying an undisputed dominance in the global shipping community to the present day, is has outperformed even the economic superpowers (China and US) in displacement. Greek shipowners’ strategies can then surely influence the path of international shipping, seeking solutions to modern challenges that will determine the overall conditions and the industry’s long-term future. For instance, the policy to be followed in the key issue of green transition and sharing the inconceivable costs involved, is the most critical matter modern shipping has to attend to. High on the market agenda is also the digital transformation, as well as the consequences -positive or negative- of the new geopolitical crises, not so much the short-term ones that are almost “visible,” but rather the long-term ones that remain “invisible.” The search for new sources of finance for planned investments will always remain one of the major questions for the shipping industry, especially in times of high interest rates, such as the present. Developments are also expected in the field of shipbuilding, where -more than ever- funds and in general institutional investors, banks or large producers or distributors of goods upgrade their role as shipowners, while partnerships between companies for the purpose of merging fleets are absolutely certain to carry on. Shipping pools ensure economies of scale, while resetting balances and reshaping competition conditions. The list of challenges facing global shipping seems endless. Uncertainties abound and opportunities are as many as an ocean would fit. Nevertheless, Greek shipping knows the oceans well: what a storm or a tailwind mean, how to tame the waves, how to map the future, and how to win in the shipping battles of international trade. Greek shipping knows best what it means to go full speed ahead.

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Platon Tsoulos

CMY

INDEX

JUNE

2022

Minister of Shipping and Island Policy

Head of Market Analysis & Intelligence, Optima Shipping Services Cofounder, CEO Optima-X Maritime Innovation Hub

General Secretary of Ports, Port Policy & Maritime Investments Ministry of Maritime Affairs and Insular Policy

Advanced Engineering Services

President, Piraeus chamber of commerce and industry

Interview | Filippos Filis

President of the European Community Shipowners' Associations (ESCA)

Technical director Atlantic Bulk Carriers Management Ltd

President, International Maritime Union

President, Hellenic Chamber of Shipping (HCS)

CEO of Arcadia Shipmanagement and CEO of Aegean Bulk; he is also Chairman of Green Award Foundation, and President of Ahepa Maritime Chapter HJ-45 St’ Nicholas

President, Hellenic Ports Association

Giannis Plakiotakis

Melina Travlos President, Union of Greek Shipowners

Dr. George D. Pateras

Interview | Dimitris Fafalios President of the Association of Dry Cargo Shipowners (Intercargo)

Interview | Leonidas DimitriadisEugenides President of the Eugenides Foundation and the Eugenides group, and an IMO Goodwill Maritime Ambassador

Petrofin Research Greek shipping financing rises to € 52.6 bn

George Xiradakis CEO, XRTC Business Consultants

Nikolas M. Zannikos

Angelica Kemene

Stavros Çatzigrigoris

Panos Zachariadis

Interview | Capt. Dimitris Mattheou

Sergios Arniakos Sustainability Manager Latsco Shipping Limited

Dionysis Christodoulopoulos Managing Director Man Greece

Semiramis Paliou Chairperson, HELMEPA

Giosue Vezzuto Executive Vice President, Marine, RINA

Vassilis Dimoulas Technology & Innovation Manager, Greece Cyprus & Malta at Bureau Veritas Hellas SA

Golden Destiny Research & Valuations Shipping Analyst

Giannis Parganas

Loizos Isaias, PhD

Intermodal Research & Valuations

Head of Maritime Service Centre Region South East Europe, M. East & Africa

Director/Head of Container Department HellasChart

Director South Europe Region for Lloyd’s Register

Liona Bachas George Bassakos HellasChart sales and purchase division in charge of container department

Theodosis Stamatellos

Dr. Evangelos Kyriazopoulos

Vassilis Korkidis

Antonis Venieris

Angelos Karakostas

Elpi Petraki Operations, Chartering & Business Development Manager, ENEA MANAGEMENT INC. President, WISTA Hellas Vice President B’, Association of Short Ship Shipowners

Thanos Pallis Professor, Department of Maritime Studies, University of Piraeus; President, International Association of Maritime Economists

Evi Kladaki Research fellow of the Department of Shipping and Business Services, University of the Aegean

Charalampos Simantonis President, Hellenic Shortsea Shipowners Association (HSSA)

Capt. George Koumpenas Chief Operations Officer, Celestyal Cruises, and President of the Association of Cruise Ship Owners and Maritime Agencies (EEKFN)

Maria Deligianni Director of Eastern Mediterranean, Cruise Lines International Association (CLIA)

From project conception to decommissioning, bridge the gap with RINA. Visit us at Posidonia - booth 3.211 Hall 3 Make it sure, make it simple.

rina.org

DNV looks forward to collaborating with its customers to help them turn uncertainty into confidence during these times where upcoming transformations in the maritime industry demand informed decisions.

DNV: Trust, teamwork and collaboration led to 100 years of successful operations in Greece

ADVERTORIAL

DNV was established back in 1864, but in 2021 they celebrated 100 years of operations in Greece. And with Posidonia being back again, DNV has a couple of good reasons to celebrate.

“For us, the milestone of 100 years in Greece is more than a celebration. It’s an opportunity to pay tribute to the glorious past, emphasizing the strong present and looking forward to an even brighter future for Greek shipping. All these years, we assist ship-owners in Greece, by making the vessels’ operation easier, safer at the All these lowest cost possible.” says years, we have Mr. Ioannis Chiotopoulos, worked to build Senior Vice President and trust between Regional Manager South maritime East Europe, Middle East and industry and Africa, DNV Maritime. stakeholders, One century sailing together with its people suppliers and customers, employees and customers, other partners, DNV has systems, and been continuously helping technologies. to build the maritime landscape from Greece, both local and internationally. “Our Piraeus office has been continuously expanding, reaching almost 100 people. The importance of Piraeus within DNV is given having been announced as the “third home country” after Norway and Germany, as well as having the control for a large geographical region: Black Sea, Balkans,

SHIPPING 2022

East Med, Africa and Middle. For all these years, we have worked to build trust between maritime and industry stakeholders, suppliers and customers, systems, and technologies.” comments Mr. George Teriakidis, Area Manager South Mediterranean & Black Sea. DNV back to Posidonia 2022 DNV is very happy to be associated once again with this top-tier maritime event as an exhibitor and have the opportunity to meet with customers and other stakeholders face to face and discuss upcoming transformations in the maritime industry. DNV looks forward to collaborating with its customers to help them turn uncertainty into confidence during these times where upcoming transformations in the maritime industry demand informed decisions. DNV’s people from Piraeus as well from all around the world are going to get involved in various exhibition’s side activities -from conferences and seminars to Posidonia’s sport events- as a great opportunity to connect with the industry’s stakeholders - both socially and professionally. As a meeting point of influential personalities, DNV will again capitalise on the benefits of Posidonia

and will contribute to its success! Visit DNV at Hall 4, booth 4.115. Decarbonization equals collaboration Decarbonization issue is expected to monopolize discussions and presentations during Posidonia and this is justified as getting to carbon-zero is the greatest challenge of our time. Decarbonization is a shared responsibility that will require collaboration across and beyond the maritime industry. The industry requires support in terms of the development of production, storage and bunkering infrastructure for green fuels, as well as zero carbon electricity generation, to reach this goal. With between 1,000 and 2,000 ships expected to be ordered annually through 2030, there’s a real need for informed decisions that consider a diverse array of factors; from cost, to fuel storage and propulsion, through to flexibility in design, strategic approach, and fuel ready solutions. And of course, all of this is underpinned by the need for safety. Joined-up infrastructure, energy, technology, understanding, regulations, and financial support are needed, and all the involved stakeholders striving towards the same goal.

TURN UNCERTAINTY

INTO CONFIDENCE

For the maritime industry, this is more than a moment of change. It’s a time for transformation. Never have the decisions it faces been so complex. Nor their consequences ever mattered more. As a trusted voice of the industry, we help decision-makers throughout the maritime world to make purposeful and assured choices. From regulatory compliance, next generation fuels, vessel and operational optimization, to in-depth advice and insight, explore our solutions.

Learn more: dnv.com/maritime

ΟPΙΝΙΟΝ ●

POSEIDONIA IS HERE AGAIN The 27th Poseidonia fair, organized this year after a four-year break, finds world shipping at a transitional stage, with significant changes concerning environmental regulations, digital transformation and cybersecurity

M Giannis Plakiotakis Minister of Shipping and Island Policy

SHIPPING 2022

erchant marine is the largest and most important component in international trade as it transports more than 80% of world trade to peoples and communities around the world. It is the most efficient and cost-effective method of international transportation for most goods. It is a reliable means of transporting goods worldwide, facilitating trade and contributing create prosperity between nations and peoples. Shipping’s role was enhanced by the COVID-19 pandemic, highlighting the professionalism and sacrifice of the two million seafarers serving in the global merchant fleet, which kept up with the uninterrupted transport of goods, including vital medical supplies, food and other basic goods, needed to combat the pandemic. Under such unfavorable conditions and in spite of the pandemic’s economic impact on all the commercial activities on the planet, Greek shipping was able to retain its status as the world’s leading shipping force, currently controlling 19% of the world merchant fleet and the 58% of the European Union fleet. In 2022, things so far point to a year of significant recovery in all areas, leaving behind the irregularities and havoc caused by the health crisis, which -I should underline- prevented the organization of such an important shipping gathering, the Poseidonia. Staging a dynamic comeback following a tough pandemic, organizers are ready to welcome exhibitors from all over the world, hoping that Poseidonia will again be a leading international shipping event, putting Greece in the spotlight. The 27th Poseidonia event, organized this year after a four-year break, finds world shipping in a transitional stage: a stage encompassing very important changes concerning environmental regulations, digital transforma-

tion, cybersecurity, as well as mechanical and technological developments forming the agenda of international dialogue on the industry’s most important issues. Following the collapse of world trade in the first half of 2020, global economic activity is now recovering rapidly and according to the data so far, we hope that 2022 will be a year of full recovery, with shipping and the blue economy at the forefront. To stabilize and support the market’s upward trends, we all need to try, each one in their own capacity, and reverse the effects of the crisis, by promoting a sustainable “blue economy”, as this facilitates proper distribution of ocean wealth and ensures fair opportunities for economic growth and prosperity. The transition to carbon-neutral shipping is one of the biggest issues that needs to be addressed internationally. For Greece, the de facto international nature of shipping activities requires the implementation of IMO uniform global rules. All nations should support the effective implementation of IMO’s strategy to reduce greenhouse gas emissions from ships, as we begin to consider medium- and long-term measures that will lead to carbon-neutral shipping. Another, equally important issue facing shipping and most areas of the transport industry, is the impact of rapid and major changes that modern technologies bring to everyday life, and the digital transformation, which is among the top priorities set by the government of PM Kyriakos Mitsotakis. In recent years, almost all shipping compa-

We hope that 2022 will be a year of full recovery, with shipping and the blue economy in the spotlight.

nies, regardless of their region of operation, have been implementing modern technological means in order to stabilize their dynamic presence in the market and at the same time develop competitive advantages while maintaining their position. This is the framework we are working on at the Ministry of Shipping and Island Policy. In cooperation with the Ministry of Digital Governance, we are trying to create a new, modern environment, in which both the shipping and para-shipping industries will find suitable ground to develop, for the benefit of both the economy and the community. The shipping industry is undergoing radical changes, which are expected in coming years to lead to drastic changes in the profile of future seafarers. The market will need to reinforce itself by hiring both officers and well-trained crews, equipped with the proper skills and qualifications that will help them cope in a very competitive global maritime environment, and in the long run preserve the world-famous and recognized seamanship of the Greeks. Recent studies for the coming years show that the number of officers required to staff the global fleet is below demand by 16,500, with the deficit projected to skyrocket to 147,000 officers in 2025. All of the above issues will be the main focus of interaction between shipping community representatives, during their great gathering at Poseidonia. Over time, this universal maritime meeting has been a point of reference for developments, highlighting Greece’s major role in global shipping. For more than 50 years, Poseidonia has been a pole of attraction, placing shipping at the top of international attention, with hundreds of exhibitors from around the world. We hope that this year’s fair, always under the auspices of the Ministry of Shipping and Island Policy, will exceed all expectations.

ΟPΙΝΙΟΝ ●

A BEACON OF STABILITY IN A PERIOD OF CRISES The international shipping event of Poseidonia 2022 is the ideal environment to highlight the crucial, multi-level and irreplaceable role of the shipping industry in the global economy

T Melina Travlos President, Union of Greek Shipowners

SHIPPING 2022

he decades-long and worldfamous Poseidonia Maritime Exhibition returns this year, following a 4-year break due to the pandemic, with strong foundations to meet and even exceed the high expectations of the international shipping community. Being the home of the world's largest fleet, it is with great pleasure that we welcome in Greece international exhibitors and visitors participating in this prestigious global shipping event. Greek-owned shipping retains its leading role in the industry, currently accounting for 21% of global fleet and 59% of European fleet. In particular, it controls 32% of the global tanker fleet, 25% of bulk cargo vessels and 22% of the liquefied natural gas (LNG) fleet. Greek and European shipping provide the EU with a strategic advantage in its effort to ensure supply adequacy and independence. Notably, during the four-year period since Poseidonia 2018, the shipping industry continued to serve day-and-night 90% of world trade. Amid a fragile global environment, shipping has functioned as a beacon of stability, responding to the unprecedented conditions prevailing in recent years, including the global Covid-19 health crisis, and the war in the Ukraine. Once again, the shipping industry has highlighted its strategic dimension and crucial contribution to the well-being of the citizens of the global community. In this context, the international shipping event of Poseidonia 2022 will be the ideal environment to highlight the crucial, multilevel and irreplaceable role of the shipping industry in the global economy. With a strong international interest in tackling climate change, Poseidonia 2022

Greek and European shipping provide the EU with a strategic advantage in its effort to ensure supply adequacy and independence.

will also set the stage for promoting global shipping’s environmental footprint, as well as the environmental performance of Greek-owned fleet. In addition, Poseidonia Exhibition offers a unique communication platform of the most innovative and technologically advanced capabilities of ship operation, with a particular focus on applications gradually leading to carbonfree shipping. Setting the agenda I would especially like to highlight the timeless commitment of Greek shipping to the promotion of green shipping. Greek shipping, utilizing its accumulated knowhow and experience, remains a front-runner, always promoting realistic proposals and goals, such as the research and development of alternative, environmentally-friendly marine fuels. Furthermore, we support all substantiated efforts aimed at making shipping even more environmentally friendly and internationally competitive.

The Union of Greek Shipowners is committed to fully supporting Greek shipping, as a world leader in the industry, to always remain at the forefront of initiatives to adopt viable policies for the benefit of sustainable development, protection of the planet and smooth functioning of the global ecosystem.

The Port of Piraeus - A driver of Growth and Sustainability The Port’s expansion strategy aims at enabling the perfect dialogue of the Port with the city and the communities it serves

ADVERTORIAL

he historic Port of Piraeus, the biggest port in Greece has being at the very core of a flourishing Greek shipping sector, leading the world maritime industry. Τhe Port of Piraeus’ unique geographical position at the crossroads of three continents creates favorable conditions elevating the port and also the country into a significant maritime, freight, tourism and logistics hub on a global scale, while at the same time connecting the mainland with the numerous Greek islands. In recent years, investments by the major shareholder COSCO SHIPPING alongside a great number of projects have been implemented at a fast pace based on a comprehensive plan and a holistic strategy approach aiming at a complete port upgrade and modernization. A desired modernization, which, however, is developed with the basic concern of the protection and respect for the environment, but also on the basis of a fair and good governance. The Port could transform from once a periphery port into a top ranking harbor in the Mediterranean and among Europe’s top five ports. Also, Piraeus improved its global 93rd position in 2010 to currently being among the top 30 ports in the world with a significant contribution to the local economy and industry. In the face of the pandemic and a changing planet, PPA S.A. has proved to be a resilient company built on solid foundations, a valuable asset in such unprecedented times. This is even more important given the fact that the more the company’s revenue increase, the more the local communities benefit, since 3.5% of the company’s annual revenue is returned to surrounding municipalities, as stipulated in the concession agreement with the Greek state. In 2021 alone, the concession fee amounted to approximately 5.5 million euros. Last year’s results showed a remarkable performance, revealing an all-time record in the history of PPA, achieving the highest level of profitability in spite of the difficulties of the pandemic. All company segments, including container, cruising, passenger, ship

SHIPPING 2022

repair and car terminal business, recorded a double digit growth compared to year earlier. The Port’s expansion strategy aims at enabling the perfect dialogue between the Port, the city and the communities it serves. Supporting local communities is a key performance indicator of the company’s societal footprint, with a substantial spending increase each year, while new infrastructure projects aim at community integration, such as a new playground park and a bike lane totaling 8000 sqm, to be constructed at PPA’s own expenses within the port zone and be available to all citizens. Giving back to the community and facilitating the greening of the Piraeus Port is central to the company’s strategy and a prerequisite for a sustainable future.

The company is among the “Most Sustainable Companies in Greece 2022”, and already among the 35 listed companies included in the new ESG Hellenic Exchanges index. Further, the company holds the ECO PORT status, granted by the leading European environmental network and numerous environmental certifications, in addition to actively contributing to a series of European projects, being committed to act as a role model in green innovation and environmental performance for the port industry, fully in line with the company’s vision of a sustainable, Green Piraeus Port.

P.P.A. S.A. is one of the “Most Sustainable Companies in Greece 2022” and already amongst the 35 listed companies included in the new ESG Athens Stock Exchange index.

CMY

ΙΝΤΕRVIEW ●

IMO's leading role in new fuels The International Maritime Organization should play a leading role in shaping the regulatory framework to take shipping to the era of decarbonization, Filippos Filis, President of the European Community Shipowners' Associations (ESCA) told the special edition of “N”, Shipping 2002 Interviewed by Antonis Tsimplakis atsimplakis@naftemporiki.gr

r. Filippos Filis says the IMO is the only organization that can introduce uniform measures worldwide and prevent a legislative fragmentation, which can seriously undermine competitiveness in shipping. With regard to European shipping competitiveness, which is gradually losing ground to Asian countries, Mr. Filis commented on the Commission’s proposal for the environmental package “Fit for 55”: “An issue that has been completely overlooked is the financing of decarbonization and the energy transition to low and zero emissions fuels. The cost of new fuels is preventive for both suppliers and consumers.” Do you think that European shipping would be able to maintain its world lead in coming years, given that competition from Asia is intensifying? What does ECSA think needs to be done? “Global and European shipping have faced a number of unprecedented challenges in recent years, such as the pandemic and the war in Ukraine. In addition, shipping is facing a number of legislative proposals aimed at tackling the climate crisis, such as the integration of shipping into the Emissions Trading Scheme (ETS), and the new fuel standard, the so-called FuelEU Maritime proposal. The bet for European shipping will be to maintain its competitiveness in an environment that is being plagued by constant crises and is becoming increasingly unpredictable, while at the same time being characterized by strong regulatory intervention. It is a big bet, but also an opportunity to both maintain and enhance its competitiveness. What is needed is an open dialogue with European institutions, bodies and agencies from the industry, researchers and civil society organizations. On the other hand, there is an urgent need to realize that shipping is a separate industry and at the same time one of the main pillars of European economic competitiveness, and even more essential for the European Union to achieve the goal of strategic autonomy. ECSA’s role is to translate industry appeals into concrete proposals and make the voice of shipping heard in Brussels. “We have achieved a lot lately but we still have a lot of work ahead of us.”

SHIPPING 2022

fossil fuels as soon as possible. ECSA's core position is that charterers who make business decisions affecting emissions, such as the fuel market, should bear the costs of ETS. Similarly, the lack of regulation on fuel suppliers in the so-called FuelEU Maritime initiative can lead to regulatory chaos, leaving the responsibility for fuel availability and quality to shipowners. Fuel suppliers will have to take on their responsibilities, just as has been the case for other sectors of transport, such as aviation. In addition, investments will have to be made to prepare storage infrastructure, management and disposal of new fuels, as well as investments in upgrading European ports. In terms of infrastructure, proposals should be bolder, too. However, an issue that has been completely overlooked is financing decarbonization and the energy transition to low and zero emissions fuels. The cost of new fuels is preventive to both suppliers and users. While there are interesting ideas for balancing out costs, such as the so-called carbon contracts for difference, what is missing is a special fund for shipping that would help achieve the green transition.”

CMY

Filippos Filis: What is missing is a special shipping fund to help achieve the green transition.

The decision to end the use of fossil fuels and reduce its environmental footprint are critical issues for shipping. What do you think of the Commission's proposal for ECSA’s role is “Fit for 55”, and what are the to translate pros and cons? industry appeals “Our fundamental stand into concrete remains that measures for proposals and fossil fuel free shipping must make the voice be taken at IMO level. On of shipping heard the other hand, shipping should also contribute to in Brussels. meeting the European climate targets of the so-called “Fit for 55” package. We have raised serious objections as to whether these proposals are characterized by coherence, and whether they take into account the particularities of an industry characterized by great diversity. Proposals focus unilaterally on shipowners, without regulating either fuel suppliers or charterers. We need to make the whole supply chain coresponsible, in order to achieve independence from

Do you think that the IMO can successfully coordinate the course of shipping for 2050, given that the success of the project has to be initially on land? “The fact that all players, including fuel suppliers, charterers and ports, have to take their share of responsibility, does not mean that the IMO will be relieved of its leading role in taking initiatives. The IMO has shown that it can take ambitious initiatives and promote appropriate measures. We should not overlook the fact that the IMO is the only organization that can introduce uniform measures worldwide and prevent legislative fragmentation. The latter is something that can seriously undermine the competitiveness of shipping. The Energy Efficiency Existing Ship Index (EEXI) and the Carbon Intensity Indicator (CII) implementation regulation is a measure recently adopted, coming into force in January 2023, that will have an immediate effect on the absolute reduction of emissions, while discussions on the revision of IMO's overall strategy and the measures to be taken are already under way.”

Your link to the future of shipping.

www.oceanking.gr

ΟPΙΝΙΟΝ ●

GREEN SHIPPING AND DIGITAL TECHNOLOGY Compliance by Greek and world shipping to the new requirements set by the decarbonization effort, in combination with the leaps of progress made by digital technology

G Dr. George D. Pateras President, Hellenic Chamber of Shipping (HCS)

SHIPPING 2022

reen shipping and how to get there have been dominant topics of discussion and reflection in recent years in the cycles of global shipping and the wider shipping community. The sustainable development programme adopted by the International Maritime Organization (IMO) calls for a 40% reduction in CO2 emissions by 2030 compared to 2008, and a 50% reduction in greenhouse gases by 2050, with the desired goal to reach up to 70%. It is doubtful whether there are any optimists out there who consider these goals achievable. Although significant steps in terms of technology have been taken, we are still a long way from a viable solution to the problem within the set deadlines. Shipping has undeniably contributed to the expansion of international trade and the improvement in humanity’s living standards. While transporting 90% of world trade, shipping generates less than 3% of human-induced pollutants, making it the most environmentally friendly transport system. However, in the context of curbing climate change, shipping must also meet the great challenge of the survival of life on our planet. Shipping as a whole is in favor of this effort, but several issues have not yet been addressed, such as:  Safety of new fuels. Some of the new fuels are highly hazardous and their use requires new strict safety rules.  Sufficiency of new fuels. The current production of ammonia, methanol, biofuels and hydrogen will not be enough to meet global shipping needs, should their use as a marine fuel prevails.  Networks and storage. Adequate infrastructure does not exist today.  Financing. It is estimated that the cost for shipping decarbonization will exceed $3.3

trillion. Where will such funds come from?  Manufacture and certification of new engines and systems.  Speeding up the development of RES networks, so that green electricity can be used to supply shortsea ship batteries. Green electricity is also necessary for the production of green hydrogen. For instance, in the Netherlands floating wind energy breaks down seawater, producing green hydrogen that is then fed into a grid.  Clarification of LNG policies. Is LNG a transitional fuel, is it banned, does it have a future? There are conflicting positions and views on the issue. Ships equipped with dual fuel engines have been built and are being built, in various combinations, but no one is sure that the technology chosen will be still applied in future. In addition to the above, two unconventional solutions are also being discussed:  Carbon Capture Storage (CCS). Its cons are related to solid waste disposal and storage, but it has the advantage of using diesel and conventional engines. It is being applied experimentally in container feeders.  Nuclear energy. New engines are based on molten salt technology. In the event of a leak, the fuel is inactivated and the risk of diffusion of radioactivity is prevented. At the same time, the technology for nuclear energy accumulators is also evolving. While shipping is still navigating uncharted waters, it has to maintain its ability to meet the needs of international trade, hoping that the weaknesses and shortcomings mentioned will be resolved within the I believe that, as always, Greek shipping will also pioneer in adapting to the new requirements.

current deadlines. The initiative taken by the Hellenic Chamber of Shipping (HCS) and the Association of Passenger Shipping Companies (SEEN) for the renewal of our shipping fleet is now widely known. Having completed the first two stages, we are now working on the business plan and the proof of concept. The latter will be an intra-island costal ferry, powered alternatively by two energy sources: hydrogen cell batteries and auxiliary diesel fuel. We still have a long way to go until we take our final decisions and resolve all the outstanding issues, but I hope that in Poseidonia 2024 things will be better. I would also like to express my belief that Greek Shipping will be a pioneer, as it has always been, also in adapting to new requirements. It has been said that technology is not treated with more technology, but without technology. I do not know if this applies to shipping, but I recalled when shipping was introduced to the option of controlling (opening/closing) hatch covers through digital commands by land. One could easily imagine the dreadful situation of a loaded bulk carrier’s hatch lids opening while sailing in the Atlantic in 10 B, as a result of either a software error or an act of malice (cyber attack). The magnetic compass and the sextant are the only necessary and reliable instruments for navigation; all other instruments are navigational aids, consulted by the captain but without relying on them. Human judgement on board should not be replaced by digital technology and automation. Any action must be decided on the spot by the officer in charge. In summing up, we should not forget that one of the most notable qualities of Greeks in shipping is their aptitude to improvise and contrive!

ΙΝΤΕRVIEW ●

$1 trn investments needed for decarbonization The decarbonization of shipping goes through the “land”, while in order to achieve the goals required by 2050, investments over $1.0 trillion are needed, Dimitris Fafalios, president of the Association of Dry Cargo Shipowners (Intercargo), told the special edition of “N”, Shipping 2022 Interviewed by Antonis Tsimplakis atsimplakis@naftemporiki.gr

s much as 87% of the investment’s value concerns infrastructure and production of low carbon fuels onshore, while only 13% is required for investments in new ships, explains Mr. Fafalios, noting: “In order for the goal to be achievable, all parties involved in this chain should bear the cost and play their part.” How feasible do you think it is to accelerate the timetable for shipping decarbonization? “First of all, it is fundamental for all stakeholders and regulators to understand that the decarbonization of the shipping sector is a challenge concerning an entire system, not just ships. Researchers have estimated that more than $1.0 trillion will be required as a cumulative investment between 2030 and 2050 in order to halve shipping emissions. As much as 87% of the investment’s value concerns onshore infrastructure and production of low carbon fuels, while only 13% is required for investments in new ships. Together with all sectors, shipping will further push for power generation from renewable sources in order to produce sufficient quantities of green fuels. For example, replacing the carbon intensive

SHIPPING 2022

Replacing carbon-intensive fuels used by ships today with green methanol or green ammonia would require more than 5,500 terawatt hours of energy.

fuels used by ships today with green methanol or green ammonia would require more than 5,500 terawatt hours of energy, which is about 20% of the current global energy generation.”

What are the parameters affecting the project’s success? “It is important to keep in mind that the maturity and possible adoption of alternative fuels (ammonia, hydrogen, methanol, etc.) depend on several parameters, which are: on-board technological readiness; OPEX & CAPEX requirements of the proposed fuel; and, the energy storage requirements and the space required on ships. Global availability and supply infrastructure are of course essential. The same goes for safety requirements, as well as crew skills which is of utmost importance. As we focus mainly on technology, we tend to neglect that the crew is the key to shipping. Ships travel thousands of miles away from the shipowner and the shipping company, to the oceans. In such an environment, crews should be trained and assigned to enforce regulations, maintain and repair critical systems on board, and of course operate the ship safely in adverse weather conditions.”

To what extent will the land be ready to produce the green energy required for making green marine fuels? “Given than maritime technology issues on board may be resolved in coming years, onshore infrastructure investment and global availability and production of green fuels are the main challenges. Any developments depend to a large extent on government motives and policies worldwide. Simple regulation of shipping without the global availability of low- and zero-carbon fuels comes down to to a significant financial burden on shipping and, ultimately, on the end consumer.” How can this transition be achieved? “For a realistic transition to succeed and meet the challenges, all parties involved must bear the cost of getting rid of coal and play their part. It is not just about shipowners and operators. They are also charterers, fuel suppliers, ports, shippers and consignees. One step behind the above, are the segments of shipping finance, insurers, shipyards, and manufacturers of ship engines and equipment. We should emphasize that regulation on shipping

Dimitris Fafalios: The new generation of shipowners must be close to the ship and crew.

companies and shipowners alone will not help achieve the desired result. Shipowners do not build engines, and they do not build ships either, nor produce fuel - they are just consumer. They go to the market and look for what is best for their needs each time. In the automotive industry, on the other hand, regulators in the US or Europe, set the standards and tell car manufacturers that unless they produce cars that meet these specific requirements, they will not be allowed to sell. The same conditions apply to aviation. Given the nature of shipping, it is important that regulations are applied globally rather than regionally, as such an approach would create more trade distortion, coal leakage, confusion and delays. Specifically considering the bulk dry cargo market, our ships are optimized and extremely efficient at stacking and handling dry bulk cargo. However, this does not leave enough room for the extra volumes required to use new low-carbon fuels. Some technologies and fuels seem more promising at the moment. Specifically, the newer generation biofuels, e-methanol or green methanol, but also carbon sequestration and storage.

It is important that regulations are applied globally rather than regionally, as such an approach would create more trade distortion.

A global standard of life cycle emissions for all fuels is of fundamental importance in providing a stable environment for industry. This should be accompanied by a global levy that will strengthen the effort to make low- and zero-carbon fuels a competitive choice for shipping. Of course, policies to boost land-based green fuel production are also needed.”

What are the differences between liner shipping and Greek type tramp shipping? “An important feature of dry bulk cargo shipping is that more than 65% of ships are involved in the tramp trade and serve areas and countries with poor infrastructure. While the basic principle of tramp shipping is simple and straightforward (supply and demand), the new short-term measures, more specifically the CII ranking of ships, may disrupt this model by introducing a parameter that will be the optimization of emission-based functions. The field of bulk tramp shipping is dominated by charters, with a ship’s CII rating determined mainly by the charterer, not the shipowner. In the field of regular lines, the CII rating can be improved by changing the schedule of a ship. This is strictly controlled by the major regular line managers. In terms of medium- and long-term measures, the

bulk sector faces significant challenges for carbon offsets due to its tramp nature, while it is the largest shipping sector in terms of number of vessels and DWT, with around 12,000 vessels (43% of global fleet in terms of tonnage), employing more than 300,000 seafarers worldwide and approaching more than 1,500 ports worldwide. It is hard to imagine that suddenly there will be either global availability of zero carbon fuels in all these ports, or the necessary infrastructure to support the effort to rid the industry of carbon emissions. The green corridors currently being discussed may prove to be a good solution for regular shipping, but they may not cover most of the trade carried out by tramp services. Over the years, Greek shipping has proven to be highly adaptable. The new generation of shipowners must be close to the ship and the crew. What made the difference between Greek tramp shipping and non-Greek shipping is the fact that the management was “on” the ships and crews. If we lose this by creating corporate structures with many references, we will lose the intimate connection with the ship and the crew, and thus we will lose every competitive advantage we may have.”

SHIPPING 2022

ΙΝΤΕRVIEW ●

Uniform maritime education system The necessity of lifelong learning and adaptability are important pillars for a career at sea, emphasizes Leonidas Dimitriadis-Eugenides, President of the Eugenides Foundation and the Eugenides group, and an IMO Goodwill Maritime Ambassador Interviewed by Antonis Tsimplakis atsimplakis@naftemporiki.gr

n the following interview, Mr. Leonidas Dimitriadis - Eugenides points out that at the regulatory level, regarding the training of seafarers, there are changes that will fill the gaps in relation to the current requirements of ships, but will also predict future developments with emphasis on the environment, digital transformation, alternative fuels, and autonomous ships. Nevertheless, he stressed that the best solutions must first be found, and in fact in an international and holistic context, “otherwise, consequences can be particularly negative for shipping and beyond.” A typical example, he said, is the speed of technology, which is moving faster than maritime education, with several studies claiming that 85% of job positions that will exist in 2030 have not yet been created. Upgrading maritime education worldwide, and attracting young people in marine professions are major challenges to shipping. With your experience in maritime education, what are the latest developments in this field? “That’s a timely question. As we know, world shipping accounts for more than 80% of world trade, and its importance became even greater during the period of the pandemic and in the recent dramatic aftermath of the tragic crisis in Ukraine. At the same time, global shipping suffers from a lack of a six-digit number of adequately trained officers. Unluckily, an even greater shortage is faced by Greek shipping, which accounts for 21% of the world fleet and 59% of the EU fleet. Such shortage is an additional deterrent to the much-needed increase in seagoing ships under Greek flag. At the same time, it is a fact that STCW, which

SHIPPING 2022

provides the minimum prerequisite knowledge for maritime education and was last revised in Manila in 2010 and implemented in 2012, requires immediate Studies show updating, as the gap between that 85% of jobs its specifications and modern to be available in requirements has widened 2030 have not significantly. The biggest gap yet been created. is observed in the prerequisite digital knowledge and skills, as well as in issues relating to the environment and fuel management. The modern sailor and especially the officer, in addition to the love for the sea, must acquire modern knowledge and skills, in order to become worthy and competitive, a true Global Marine Professional Officer. In addition to the prerequisite knowledge and skills, key elements for a modern officer should be the adoption of rules of professional and moral ethics, the ability to manage the human factor, intercultural human relationships and high emotional intelligence. Other skills needed include undertaking leadership initiatives, starting from knowledge, experience and elements of corporate and environmental governance, with understanding and responsiveness to modern challenges. Endurance and adaptability to a dynamically changing environment are also required. The Eugenides Foundation participates as a Work Package Leader of the strategy of the European program SkillSea, which will identify the future skills of existing maritime professions, as well

as the future professions that will be created by the industry’s transformation. Particularly, I believe that the Eugenides Foundation contributes significantly to maritime education. The Ministry of Shipping & Island Policy entrusted the Eugenides Foundation with the submission of a comprehensive proposal for a modern maritime training system. This was done in coordination with all stakeholders from the Maritime Academies, the academic community, the shipping industry and classification societies, and in collaboration with bodies related to maritime education issues.” What are the IMO policies in this area? “In spite of the pandemic and the war crisis in Ukraine, the IMO is systematically keeping up with its work on maritime safety and greenhouse gas emissions reduction (GHC), and on optimizing the content of maritime education. The IMO considers that adequately trained seafarers -in accordance with commonly accepted international standards- equipped with the right motivation and love for the seafaring profession, are a basic prerequisite for the smooth operation of shipping. No regulations, no operation of ships as defined by evolution and new technologies can work effectively unless seafarers can properly apply them. In this sense, attracting young people to the maritime professions and an appropriate education system assisted by on-board apprenticeship, are necessary conditions for the proper functioning of shipping. IMO began its strategic planning in 2018, with a six-year horizon. The Organization examines the management of the human factor, its capabilities and needs for the smooth operation of the ship, in

view of the ever-increasing requirements of today, and with a view to tomorrow, in order to review, strengthen and update the required skills and knowledge offered by naval training. The number of studies, committees and actions is too large to mention. This will lead us to a revised STCW, which will not only make up for the gap we mentioned earlier between the Manila 2010 specifications and current ship requirements, but will also anticipate future developments with an emphasis on the environment, digital transformation, alternative fuels, autonomous ships, etc. However, the right impact studies must be carried out in order to locate the best solutions, and in fact, in an international and holistic context, otherwise the consequences can be particularly negative for shipping and beyond. It is obvious that disruption in technology is moving faster than maritime education. In general, there are studies claiming that 85% of the job positions that will exist in 2030 have not yet been created. Therefore, it is important to have a culture of dynamism in the concept of a career at sea, and to understand the necessity of lifelong learning and adaptability. All this, of course, in a human measure and without exaggeration.” How are these implemented, if this is the case, in countries with a tradition in the production of seafarers, especially Greece? “Today, about 80% of world trade is transported by sea, about 50,000 merchant ships carry global cargo from a reservoir of 1,500,000 seafarers, of which 380,000 are from the Philippines, while a large supply of seafarers comes from China, Russia, Ukraine and Indonesia. In this context, it is completely understandable that the approximately 25,000 Greek active sailors is a particularly low figure, always according to the needs of Greek shipping. Obviously, there are serious reasons for this image, but it is also clear that there is a great variety of systems providing the necessary supply of sailors in order to turn the propellers. The response of seafarers to the new requirements of shipping obviously involves several difficulties, for both practical and historical reasons. We believe that these difficulties can be minimized through the systematic application of training and lifelong learning options, with a focus on remote education. Notably, the Eugenides Foundation has submitted a comprehensive proposal to the State in order to increase the supply of adequately trained Greek and Greek officers, because we need at least twice as many.” In recent years, a debate has developed over

by officers, are also crucial. I firmly believe that Greek officers, owing to their mentality and extroversion, can have a decisive contribution to the binding, guidance and effectiveness of their team. They are also particularly capable of thriving in different culture systems, a shining example being the Hellenism of the Diaspora. The IMO is monitoring this issue very closely.”

Leonidas Dimitriadis-Eugenides: I believe that we do not need more Academies, but enhancing the existing ones.

crew uniformity and how necessary it is. What is your opinion on the specific issue? “The large increase in the global merchant fleet and the The State multiplicity of job offers for should allocate seafarers, both at the level of more resources officers and crews, make the to attract optimal operation of crews specialized, of different nationalities a permanent prerequisite. education staff. A basic condition is the observance of STCW, the necessary knowledge of English, and most importantly the management of the lack of uniformity. The fact is that there is a huge variety of educational systems and levels, but they lead to a common cognitive result and the acquisition of prerequisite skills. Proper management of human resources, both at the level of offices and ships, continuous training and information, a logic of lifelong learning, but above all the characteristics of leadership and crisis management ability, especially

What is the state of maritime education in our country today? Are there any countries that have taken initiatives to develop the maritime education sector? Do you have any suggestions? “I will focus on Greece, since each country produces its own officers with their own system, having their own special road map. We believe that the maritime education system in Greece is constantly being upgraded, with upgrades to AEN facilities, new masters programs, strengthening the pool of first class officers through EPAL, and increasing the permanent teaching staff of AEN. All of the above are steps in the right direction. However, we believe that the State should allocate more funds to attracting specialized permanent human resources, at the level of naval instructors/technologists. The State could, at no particular cost, support students, especially in transportation costs but also in their other fair demands. Personally, I believe that we do not need more Academies, but upgrading the existing ones. Particularly important is our transition to the digital age and blended learning, to the digital transformation of maritime education, which will lead to a de facto upgrading of curricula and the necessary familiarity with advanced technologies. We believe that the proposal by the Eugenides Foundation, as I mentioned earlier, covers the whole range, from admission to graduation and certification of students, including assessments, training, and anything else deemed necessary, for a uniform and structured maritime education system. Special importance is attached to an independent system for the certification of seafarers' skills, as we believe that this will be a springboard for the quality upgrade of maritime studies. All these presuppose a direct and interpersonal policy of attraction in all regions of Greece, provided that there is adequate information to students about maritime professions and prospects. To attract more students, no traditional practices are needed, but making more young people realize the importance of obtaining a great passport for a better and more creative career with the Greek navy.”

SHIPPING 2022

REPORTAZ ●

GREEK SHIPPING FINANCING RISES TO € 52.6 bn An outline of data collected by a Petrofin Research survey for the special edition of “N” By Antonis Tsimplakis atsimplakis@naftemporiki.gr

inancing of Greek shipping in 2021 recorded a year of recovery. According to a survey carried out by Theodoros (Ted) Petropoulos’ Petrofin Research, for the special edition of “N”, the entire Greek shipping portfolio amounted to $52.6 billion, up by $5.2 billion compared to 2020. Similarly, Petrofin's bank financing index rose to 318 from 301 a year ago. As it is typically pointed out, from 2008 onwards, when the global economic and banking crisis also negatively affected shipping, this is only the third time that this index is recovering. “Such growth by $5.2 billion represents a significant development that occurred mainly during the pandemic, a period of total destabilization,” Petrofin's survey said. Along with the increase in the Greek shipping portfolio, the data show that during the same period an expansion of the Greek-owned fleet was recorded. "It's clear that fleet growth has been achieved through additional sources of funding, shipowner resources, refinancing and significant investment in new

construction and sales over the years. Although orders for new ships have slowed, the Greekowned fleet continues to show an upward trend of about 0.5 million GT in the first quarter of 2022 (Clarkson’s Research). According to Petrofin Research, there are 69 Greek shipping companies with fleets of more than 20 ships and another 83 with fleets of more than 1.0 million DWT. The effort to enlarge fleets with modern tonnage continues,” Mr. Petropoulos noted.

Ted Petropoulos: Bank financing for shipping is expected to continue to grow.

The banks The withdrawal of some banks from shipping financing in the past decade has led to changes in the ranking of banks that finance Greek shipping. According to Petrofin, Credit Suisse remains the market leader

n Greek Banks end 2021: $13,6bn - Number of Banks: 8 Ελληνικών τραπεζών (end 2020: Εξέλιξη $11,885.25,χαρτοφυλακίου Number of Banks: 8, end82019: $9,924,09, Number of Banks: 8)

n Petrofin index (Combined index of Greek Ship Finance, Greek Fleet DWT

PETROFIN Index of GreekinShip Finance, Greek DWT and Greej Shipping Portfolios in US$bn as of and 2021 and Greek Combined Sjipping Portofolios US$bn as of endFleet 2021)

Greek Banks: 2019: 9,9 mil. 2020: 11,9 mil. 2021: 13,6 mil.

Eurobank

$380.00

$2,950.00

Alpha Bank

$3,100.00

National Bank of Greece

$2,558.20

Aegean Blatic

$520.86 $15.40

250

$250.00

200

$220.00

150

$300.00 $100.00 $88.50

*Market estimate

SHIPPING 2022

500

Drawn Loans

1500

2000

2500

3000

3500

Committed But Undrawn Loans

405

400

409

372

400

379 327

350

100

1000

450

300

$90.00

Astrobank

500

450

Piraeus Bank

Hellenic Bank*

500

$3,000.00

Bank of Cyprus

with a $5.6 billion portfolio, followed by three Greek banks: Eurobank, Piraeus Bank and Alpha Bank. In fifth place is BNP Baribas, followed by Citi, the National Bank of Greece, ING, and ABN AMRO, while the top ten’s last place is held by HSBC. One place lower (11th), is China Exim Bank. Aegean Baltic is also high, in 19th place. Overall, Greek banks have seen their market share rise from 18.47% in 2018 to 25.81% in 2021. International banks with no presence in Greece also showed a moderate increase of 2.84% compared to 2020, while international banks with branches in Greece were at about the same levels (2.99% compared to 2020). In its commentary, Petrofin Research states that the total number of banks remains the same as in 2020. It further emphasizes: “Greek banks have shown their commitment to Greek shipping and are focusing on shipping loans. They also succeeded in reducing their profit margins and competing with non-Greek lenders, especially in terms of financing

218

256

155

100

113

2001

2003

321

283

318

117 138 2005

2007

Greek fleet (DWT) Greek Shipping Portfolios

157 67

2009

170

200 150

186

100 54

2011

3 300

300 2 250

217 36

350

2013

2015

52,60 5 50

0 2017

2019

2021

Petrofin Index of Greek ship Finance

n All banks ranked in terms of their Greek portfolios (in US$m)

5,600

Gredit Suisse

3,380

Eurobank

Petrofin comments that as the values of ships have increased in many areas, lending has "reappeared" in the market.

Piraeus Bank

3,250

Alpha Bank

3,200 3,045

BNP Paribas

2,680

Citi

2,646.70

National Bank of Greece

2,300

ING

small- and medium-sized Greek shipping companies. Greek banks have overcome the storm caused by the Greek financial crisis since 2010 and are now re-emerging stronger, according to the improvement shown in their own credit ratings, as well as that of Greece. “The listing on the Athens Stock Exchange by Costamare, Capital Products Partners and Safe Bulkers has attracted support from Greek banks and is a further growth opportunity.”

2,250

ABN AMPRO

2,100

HSBC

1,900

CHINA EXIM

1,850

Hamburg Commercial Bank

1,838.07

KFW

1,600

KEXIM

Lending terms Banking competition targeting large Greek shipowners has increased. Banks' profit margins above market rates are often very low, below 2%, while lending rates often reach 60% to 65% for modern ships and newly built vessels. Greek small- and medium-sized shipowners have fewer choices of banks, but are still able to attract financing and compare terms with other non-bank financing offers. Greek small- and In addition, Petrofin commedium-sized ments that as the values of shipowners have ships have increased in many fewer bank areas, lending has "reappeared" choices, but in the market, adding that are still able to banks' ability to offer competattract finance. itive lending terms has also been affected by regulatory pressures and the need to comply with capital adequacy rules. According to Mr. Petropoulos, with the market being strong in many areas, and in spit of the headwinds caused by increased sanctions and geopolitical restrictions, bank financing for ships is expected to continue its upward trend. Finally, Mr. Petropoulos noted that new challenges for both shipowners and banks include regulations relating to ship emissions and the cost of installing new technology to ensure compliance. Alternative forms of ship financing have also been widely used, with global leasing recording significant growth in the past 5 years, as shown in Figure 4, from $47 billion in 2017 to $77 billion in 2021.

“

Nordea

1,174

DNB

1,160 800

Credit Agricole CIB Unicredit

700

Aegean Baltic

536.26 500

China Development Bank China Enerbright Bank

400

DB -Deutsche Shipping

350

Macquarie

300

Bank of Cyprus

250

CIT Maritime Finance

240

Hellenic Bank

220

Qatar National Bank

200

Barwa Bank

150

NΙBC

140

Astrobank

Amsterdam Trade Bank

Greek banks have overcome the storm of Greece’s financial crisis since 2010, and are now reemerging stronger.

7,660

OTHER BANKS 0

800

1,600

2,400

3,200

4,000

SHIPPING 2022

ΟPΙΝΙΟΝ ●

FINANCING GREEN SHIPPING The scope of financing is now clear for all shipping organizations, without pitfalls, and requires transparency, size and rational distribution of shipping risks through market cyclicality

G George Xiradakis CEO, XRTC Business Consultants

SHIPPING 2022

reek shipping has been strengthened thanks to support by shipping banks, both international and domestic, which developed significant portfolios in the specific market. While listed companies enjoy additional stock exchange support, private companies raise capital only from banks, and are currently facing serious difficulties owing to rearrangements in the international financial environment (especially in Europe), and complex and demanding conditions, as opposed to the favorable environment of past decades. In maritime financing, the portfolio of Greek systemic banks in the first half of 2021 amounted to €9.0 billion, according to the latest Financial Stability Review of the Bank of Greece (31/12/2021). In addition to the domestic banks holding 22% of the total banking financing of Greek shipping, foreign banks, holding the remaining 78%, are significantly reducing their portfolios. Many of them have closed down their Greek offices and some others are following suit, transferring the management of their portfolios abroad. It is worth noting that large and traditional European shipping banks reduced or sold their portfolios to other banks, mainly Asian or equity funds, which crabbed the perfect opportunity to buy low and sell the same loans at much higher prices, taking advantage of banks’ inability to keep up with the traditional support to the industry. The reasons for abandoning shipping financing are varied, but they are directly related to the high fluctuations in both ship costs and rates (which are the way of repaying loans), and strict regulations in monitoring circular markets. In addition, other sectors financed by banks, such as real estate management, energy, food industry and

Financing under the criteria of Environment, Social Cohesion and Governance is at the top banking strategies.

other manufacturing activities, operate under clear and more transparent corporate governance models compared to shipping.

The role of decarbonization A crucial issue currently in shipping financing is that financial institutions are joining the effort to decarbonize the global shipping industry, following the new set of mandatory instructions, frameworks and tables issued by the European Banking Authority (EBA), to be followed by banks. This became necessary following the shortcomings detected after an examination of the reports on the environment, society and corporate governance, submitted by the European credit institutions. Shipping is part of the wider transport sector, which, according to available data, contributes by 16% in global emissions. However, as the study shows, the shipping industry has a much lower impact of 1.7%. However, as IMO requirements for reducing greenhouse gas emissions become increasingly stringent, listed companies have already taken several steps to inform investors about the new policies they are pursuing in order for their business practices to be even more in line with the principles of Environment, Social Cohesion and Governance (ESG), of which the environment and its protection are a fundamental component.

The Poseidon Principles The Poseidon Principles are at the heart of the Environment component in the shipping

industry. They regard a partnership between the leading financiers of the shipping industry, also monitoring whether the shipping companies-clients comply with the IMO regulations for the reduction of greenhouse gas emissions. It was initiated in Europe in 2019, with the leading shipping banks Citi, Societe Generale and DNB, in cooperation with the leading shipping companies A.P. Moller Maersk, Cargill, Euronav, Gram Car Carriers, and supported by Lloyd’s Register, Watson Farley & Williams, Global Maritime Forum, Rocky Mountain Institute and University College London Energy Institute. Today, the signatories of the agreement include 27 large banks with shipping portfolios of some $185 billion, accounting for approx. 50% of the total banking shipping financing. The practical function and usefulness of the Poseidon Principles is that all signatory organizations must on an annual basis measure emissions, but also draw and publish conclusions about how well these measurements are in line with the strategic trend of gradual reduction. The second component of the ESG, i.e. the need for Social Cohesion, or simply “Society”, relates to the way a business manages its relationships with employees, suppliers, customers and the communities in which it operates. In addition, the Society addresses the issue of gender equality and equal opportunities, through increasing women’s representation in the global seafarer workforce, as it is currently very low compared to other sectors. According to latest IMO figures, women make up about 1.2% of the total global crew, with the IMO’s strategic goal being to gradually increase the number of women in the shipping industry. Corporate Governance is the third

component of the ESG, which relates to the system of rules, principles, practices and procedures governing the operation of a business. In the seafaring sector, this system includes, inter alia, policies and procedures aimed at combating corruption in ports with no up-to-date operating protocols. A number of green/sustainable shipping financing programs have come to light in recent years at European level at the initiative of banks and legislators. The European Investment Bank (EIB) has set up financing for green ships, while the European Banking Authority (EBA) has adopted an Action Plan on Sustainable Finance, which prioritizes ships with low carbon emissions and helps shipping do the right thing for the environment and climate change. Continuous research and development of new technologies will lead to a radical change in the way ships are designed and operate. Achieving these goals will require particularly high capital, with bank financing being a pillar for its realization. Businesses financed through Sustainability Linked Loans are motivated to meet the ESG criteria in order to benefit from competitive terms, such as lower loan pricing, by undertaking the obligation to comply with the criteria so as to enjoy the benefits throughout the term of the loan. Certainly, financing under the ESG criteria is at the top of banks’ strategy. The question is whether Greek shipping companies meet these criteria. Greek shipping consists of about 580 shipping companies, of which 25 are listed on foreign stock exchanges, as shown in Figure 1. Comparing the two categories of listed and private shipping companies in number and fleet capacity for the years 2016 and 2022, the number of Listed companies remains unchanged, while the corresponding number of Private companies shows a drop. In terms of fleet capacity, the Listed companies show a drop, while the Private ones recorded an increase. Comparing the level of bank lending for the two categories, both show a drop in 2022 (data 31/12/2021), with the listed companies dropping more than the listed ones, as the latter can raise funds either from stock exchanges, bonds or through leasing. The three shipping bonds issued through the Athens Stock Exchange by the listed companies Costamare, Capital Product Partners, Safe Bulkers, allowed them to raise 350 million euros in less than a year, and proved to be a new source of capital for listed companies, introducing the Greek stock market for the first time in

n Comparison of Greece's public/ private shipping companies 613

563

Number of companies 281 245

Ship Capacity (in million DWT) 38 19

Bank Borrowing (in $Billion) PUBLIC 2016

PUBLIC 2022

PRIVATE 2016

PRIVATE 2022

recent years to the financiers of merchant shipping. Listed companies and ESG Greek listed shipping companies, following the overall attitude of shipping companies worldwide, are recording an increasing trend in ESG criteria penetration.

Although ESG indicators are often considered “non-financial” and it is not yet possible to adequately substantiate whether ESG performance affects the course of a company’s stock, they may have an impact on corporate finances. In addition, it is characteristic that funds invested in companies that harmonize their operation with the ESG rules have increased by 170% in the period 2015-2021, while the funds invested in green bonds in the same period have increased sevenfold. Both banks and shipping companies may for the first time have a common orientation, beyond their business goals. Greek banks are presented with a unique opportunity to boost their shipping portfolio, supporting Greek shipping to achieve its environmental objectives, regarding the reduction of pollutants from its activities, while promoting responsible and sustainable banking through the adoption of ESG criteria, combining growth and economic performance with social and environmental sustainability. In this way, they project a better image to their investors with regard to the threats of climate change for the financial services industry, utilizing one of the three main pillars of the HFSF mission, that of integrating ESG criteria into the operation of banks. The specific targeting will undoubtedly promote domestic sources of wealth through the support and funding of specific sectors, such as coastal shipping, shipbuilding and ship repair industry, the shipping equipment industry, development of port facilities and services, marinas, the tourism shipping industry and yachting. In any case, integration of ESG brings changes to the industry, introducing new concepts and setting new goals and challenges for shipping companies. It is absolutely certain that for those who believe that the ability to raise capital is going through a temporary crisis and thus do not adapt to the new conditions, but rely only on the course of the market, there will be no future; and in any case there will be no fleet development with support by banks. They would have to use equity, which will be extremely burdensome to competition conditions, while also entailing multiple risks for shipowners or investors themselves. The scope of financing is now clear without pitfalls for all shipping organizations and requires transparency, size and rational distribution of risks and shipping risk through market cyclicality. And this is no longer the case only in shipping, but also in all business markets with similar characteristics.

Funds invested in companies applying the ESG criteria increased by 170% in 2015-2021.

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ΟPΙΝΙΟΝ ●

MARKET SIGNS ON CRUDE OIL In the long run, sanctions on Russia will be negative for the tanker market, especially after the European Union market balances out crude stockpiles, and transatlantic demand recedes

T Nikolas M. Zannikos Golden Destiny Research & Valuations Shipping Analyst

Bearish  SPR release from US and other IEA members  Weaker backwardation  China’s COVID-19 cases on the rise  Inflation concerns over global growth and possible demand drop

Bullish  Russia-Ukraine war unlikely to end soon  No solution from Iran and Venezuela in the horizon  Restrictions in increasing crude oil output quickly  Still room for higher demand as world recovers from COVID-19  Strong refinery margins

SHIPPING 2022

he playbook of crude oil supply-demand balance has always been difficult to read, due to the unpredictable nature of geopolitics and, in the past couple of years, due to COVID-19. Enter the Russian-Ukraine war, and the reading becomes even more difficult. Despite this, the current spike in tanker rates will most likely be short-lived. The effects of Covid-19 restrictions on local economies around the world has resulted in a large imbalance of supply and demand for crude oil, that has caused a deep shock to the market. While the total world demand for crude oil has recovered by 14% since the record lows of May 2020, it is only recently that oil supply has caught up with these demand levels. Nonetheless, oil supply is expected to continue to be more sluggish mostly because of the mode of oil production. In the US, for example, the indicators of additional supply point to increasing volumes, albeit at a slow pace. The production peaks of crude oil rigs (compared to Nov. 2018) and US crude oil output (Feb 2020) has been lagging by more than a year. The new realities of the Russia-Ukraine war have thrown a spanner in the works. Previous experience has shown that such a market disruption is beneficial for the tanker market, especially when production and consumption locations are geographically close. Russia’s crude oil and oil product exports stand at 8.0 million barells per day (mbd), half of which is crude oil. Of these, 4 mbd and 1.6 mbd are exported to China, transported equally by pipelines and vessels, mainly aframaxes. Europe absorbs 2.2 mbd, with 0.7 mbd through pipeline and the remaining 1.5 mbd seaborne, transported mainly by suezmaxes and aframaxes from the Baltic and Black Seas. With the sanctions against Russia now in

place, Europe’s new concern is from where it will source the 2.2 mbd. Assuming that the Russian crude will be phased out of the EU economy by the end of 2022, this will create a market gap of 460 million barrels in EU crude oil supply, more than the current EU’s crude oil stockpiles. At the same time, US and other IEA countries, have committed to increase production by 230 million barrels daily, from May 2022 to the end of the year. The net effect of the above points to a 1.0 mbd crude oil supply deficit in EU until he end of 2022, rendering the EU’s crude oil stockpiles below 200 million barrels. This is , in the best case scenario, assuming that all of the aforementioned additional crude oil produced is absorbed by Europe. In any case the emerging supply gap will most likely result in higher crude oil prices over the second half of the year. This equation alone forces some market observers arguing that tanker rates will drop from their current robust levels, which season-aly seems to be the case until the summer. However, there are signs pointing to the fact that at least until the end of the year, charter rates will continue to be at satisfactory // healthy levels, especially for Suezmaxes and Aframaxes. As demand gradually increases globally (with China’s asterisk though), oil prices will continue to increase. As shown in the graph, BDTI has a positive correlation with refinery margins. Assuming that crude oil demand peaks during the second half of the year, global demand from refineries will result in more ton-miles for seaborne crude, expected to positively affect charter rates.

There are signs that rates will remain at good levels at least until the end of the year, especially for suezmaxes and aframaxes.

Thus, following the seasonal BDTI pattern, the tanker market will gradually bottom out until August, before starting to rise again until the last quarter of the year. Both Suezmax and Aframax vessels are expected to benefit from increased transatlantic flows and STS operations, as the number of VLCC terminals in US Gulf is restricted, following the SPR release from US. However, the biggest uncertainty relates to China. Should COVID-19 outbursts carry on, that will add pressure to tanker rates. Floating storage has a long way to go before it starts to absorb tonnage on a prolific scale, given that on shore crude oil stockpiles in the US and EU are at six-year lows. To conclude, our view is that, in the shortterm, sanctions against Russia have been positive for the tanker market. Russia’s proximity to Europe will have a positive effect in ton-mile demand. More crude will be sourced from the other side of the Atlantic to Europe, benefiting vessels sailing out of the Atlantic Basin, as most fixture stems are out of US Gulf and West Africa, destined to Northwest Europe, impeded however from the high gas prices that is used as a feedstock in the refineries. Russia will probably seek to sell crude oil to Asian buyers at greatly discounted rates, keeping ton-mile demand for Suezmax and Aframax sizes at healthy levels. In the long term, however, sanctioning Russia will be negative for the tanker market, especially after the EU market rebalances its crude oil stockpiles and transatlantic demand drops. It is also expected that Russia will follow a similar pattern to that of Iran, with vintage vessels employed in off-grid, ship-toship operations, creating a two tier market. That will eventually prolong tankers’ fleet commercial life, hence adding to fleet numbers in an already oversupplied market in terms of tanker vessels.

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HIGH VOLATILITY AMID TURMOIL The recent conflict between Russia and Ukraine and the evolution of the pandemic, imposing severe restrictions on ports, are affecting the freight market and ship revenues, as well as world trade by sea

T Giannis Parganas Intermodal Research & Valuations

SHIPPING 2022

he 2022 continues to be an excellent period for shipowners in the dry cargo market. In spite of the instability and global economic slowdown that Covid-19 and the recent Russia-Ukraine conflict gave rise to, both the redesign of traditional commercial routes (which has led to an increase in tonne-miles and consequently a reduction in available fleet), and the prolonged congestion in Eastern ports continue to significantly boost profits. That said, by the first ten days of May, smaller handysize vessels had recorded the best performance with total revenue averaging $26,210 per day. It is important to emphasize the impact that the containerships sector has on handies, as the ability to convert several multi-purpose vessels to transport “boxes” has led to a reduction in their available fleet in the market, thus reducing competition. Kamsarmax ships come in second place with an average revenue of $25,158 per day, followed by supramaxes with $24,148 per day. Capsizes, in last place, following two excellent last quarters of 2021, have been faced with low demand, with their average revenue estimated at $14,872 per day since the beginning of the current year. However, there has been momentum in the past month with the average revenue in May reaching $20,902 per day amid increased exports from Brazil, and higher coal export activity from Australia, with June expected to be in high demand for similar coal shipments. The average daily revenue for the period 2018-2020 was $15,870 for capes, $9,221 for kamsarmaxes, $11,784 for supramaxes and $9,872 per day for handysize vessels. The data point to positive developments in the supply of ships. Specifically, the order

book amounts to only 6.6% of the total fleet, with 2022 expected to lead to a relatively small increase of 2.12.2%. More specifically, the largest percentage is recorded by panamaxes/ kamsarmaxes with 8.2%, followed by supramaxes/ ultramaxes with 6.4%, capesizes with 6.2%, and finally handysizes with 4.8%. In terms of age, only 7.5% of the total fleet is over 20 years old, with almost 20% of the available fleet being under 5 years old. At the same time, dry cargo orders this year amount to just 45 new ships, of which ultramaxes have the lion's share with a total of 22 orders. The high levels of congestion in the ports, mainly those of China, which is now imposing a new round of strict lockdowns following its “zero-Covid” policy, affect the overall availability of the global fleet with a positive effect on rates. According to the latest figures, more than 125 capesizes, 260 panamaxes, 285 supramaxes and 180 handysize ships are moored in Chinese ports. On the other hand, trade has been impacted by ongoing lockdowns and their clear impact on the economic growth of nations, the recent Russian invasion of Ukraine with its consequences on trade especially of grains, and also by weather disturbances and their impact on overall logistics activity. However, the shift in traditional trade will cumulatively lead to a modest 1.5% increase

According to latest data, more than 125 capesize, 260 panamax, 285 supramax and 180 handysize ships are moored in Chinese ports.

in ton-miles this year. The biggest blow has been dealt to grain trade, with Ukraine accounting for 10% of world exports. A drop by 3.8% is expected in maritime trade in 2022. The iron ore trade is expected to show a limited increase of 1%. Brazil's exports were hit by bad weather in the first quarter of the year, but a significant recovery is expected in the second half of the year. At the same time, Chinese imports of iron ore are falling sharply as declining economic growth has had a negative impact on demand amid continuing lockdowns, with steel production projected to decline slightly. Coal trade is expected to remain stable in 2022 with China's imports declining significantly amid both the growth of its domestic production and the slowdown of its economic growth, is expected to reach around 9% at the end of the year. However, recent sanctions against Russia, and the US and Europe's willingness to fully end its dependence have led to seeing coal -to some extent- as an alternative form of energy, with imports from South America and Australia clearly having a significant impact on overall ton-miles. Overall, instability remains high amid geopolitical turmoil with clear implications for global bulk demand. However, the relatively low growth of ship supply, combined with the necessary redesign of trade and the large congestion in Eastern ports, continue to offset the global economy’s slowdown so far.

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LINERS CONTINUE RALLY INTO 2022 Last year proved to be very good for liner companies, and according to many industry analysts, 2022 remains profitable. Container traffic has recorded significant increases, in spite of many unforeseen disruptions

C Liona Bachas Director/Head of Container Department HellasChart

George Bassakos HellasChart sales and purchase division in charge of container department

SHIPPING 2022

ompanies have reported record operating profits with leading container carriers (except MSC which is not publishing numbers) showing average operating margin exceeding 50 %. In particular, Yang Ming-61.3%, EMC - 59.3%, HMM - 56.5%, Wan Hai 56.1%, ZISS - 54.2%, ONE - 52.8%, COSCO - 44%, CMA CGM - 42.7%, HL - 42.2%, Maersk Line - 37.2%. Historically shipping companies' nominal results were directly linked with their carrying capacity and in this respect, it is worth emphasizing ZISS results that showed highest 2021 operating profit (EBIT) compared with operating fleet (about 5.8 Bn with only about 440K TEU operated fleet) - making it the best in the industry! Container volumes' liftings during 2021 have also increased substantially following huge demand for container shipping transportation, all these despite numerous unpredictable disruptions, such as COVID lockdowns, Russia's invasion of Ukraine, steep increase in fuel prices and ongoing worsening congestion in major ports which did not have the infrastructure to accommodate such a rapid increase in cargo volume. The numbers still remain strong; however, the growth is presently rather limited because of above mentioned constraints. A remarkable event of the 2021-2022 liner container market was the fact that MSC has overtaken Maersk Line in regard to operating fleet capacity, as they were the most aggressive players in the secondhand purchase market. counting more than 170 container vessels acquired by Geneva based carrier from August 2020 till March 2022. Another very interesting point is NOO (non-operating Owners) fleet development.

From one side, NOO container vessels fleet has lost about 500 vessels that were purchased by liner shipping companies that both, in terms of number of ships and in terms of their nominal capacity, was the sharpest decrease ever seen in the industry - about 1.7 M TEU that was simply lost...? The story is not that simple: it has become clear that NOO are back to shipyards with their new orders. Seaspan is leading with more than 70 vessels on order. Record number of newbuilding contracts were placed during 2021 exceeding 4.3M TEU, however, the activity was recently decreased due to a variety of reasons inter alia, deeply increased prices followed by very limited yards' capacity. It is worth to mention that 25 % of all newbuilding orders in container vessels shipping segment are LNG propulsion vessels where the major players are CMA CGM, MSC, HL and ZISS. Whilst liner shipping companies continue their earnings bonanza, some unexpected competitors have entered the market. If you thought that Lidl is solely a giant European budget supermarket chain, you will be surprised to find out that Lidl has registered a new container shipping company with ambitious intentions to give efficient solution to their transport needs, under the name Tailwind Shipping Lines, the new company that has already registered some activity on chartering and sales and purchase market. This step can be explained by company's intentions to improve its supply chain by

The extensive shipbuilding programs by shipowners and liners may cause market imbalances from the end of 2023 onwards.

cutting costs and increasing space availability. This is in addition to forwarding companies that have recently entered chartering market and, in the eyes of liner shipping companies view, continuously destroy chartering market with short terms fixtures against huge daily premiums. Analysts estimate however that, as long as container liner companies charge their customers extremely high rates (new contracts were just recently signed with levels exceeding those achieved during 2021), they will be able to hedge and to limit their risks and continue their successful rally for at least another 12 months, despite substantially higher estimated costs for fuel and charter that liner companies will likely experience in 2022. Although the activity is recently rising a little (that is the sentiment at least…) with some of potential tonnage takers seeking ships, the "wait and see" conservative approach is still here…driven by uncertainty, lack of promptly available tonnage and extremely high charter hire levels that have never been seen before. Main liner shipping companies proved their agile abilities blanking sailings, mitigating risks, coping with market disruptions, even though part of these disruptions are becoming chronic (COVID-19 was firstly identified in December 2019). Whilst market fundamentals remain unchanged with strong demand (ships will transport more than ¾ of all goods movements by 2050) and relatively limited supply, the extensive newbuilding program by owners and liner companies may disrupt the balance as of end 2023. It remains to be seen what the new global market disruption will be and whether it will fuel the market upwards. Interesting times ahead...

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LNG MARKET GROWING WORLDWIDE The outlook for the global LNG market looks positive, with figures holding up this year, while the Russia-Ukraine dispute is expected to help expand trade and investment in the industry, both in the short- and long-term

T Angelica Kemene Head of Market Analysis & Intelligence, Optima Shipping Services Co-founder, CEO Optima-X Maritime Innovation Hub

SHIPPING 2022

he Global LNG sector outlook looks positive, with shipping market fundamentals appearing supportive this year, and the Russia-Ukraine conflict projected to create further LNG trade and investment in the broader sector in both the short and long term. While the LNG carrier spot market (where close to 20-25% of LNG carriers operate) has been soft in 2022 so far, spot rates through the full year are likely to remain healthy, although volatility is probable, with spot rates sensitive to swings in the balance of US cargoes being shipped to Europe and Asia. Overall, LNG’s role as an interim fuel in the global energy mix appears to have been deepened by the ongoing global energy shortage and current focus on energy security, with latest estimates now suggesting potential for LNG trade to exceed 600mt by 2030. The outlook for the LNG carrier sector in 2022 remains positive mainly due to the very supportive fundamentals. Tonne-mile trade is expected to grow strong by 8.5% this year, driven mostly by European efforts to diversify away from Russian pipeline gas, while fleet growth is projected to lock up to 4% succeeding record deliveries last year. Further into 2023, the market will likely face some stress, with tonne-mile trade projected to grow by a little less than 3% because of the limited volume of export capacity scheduled to come online, while the LNG carrier fleet capacity is expected to grow by 4.5%, however upcoming environmental regulation may have some positive impact - ie: on decreased steam turbine speeds. Meantime, fundamental support for LNG remains as the energy transition progresses, with sustained growth in gas production expected into the 2030s. LNG is likely to play a key role, with a number of projects projected to reach FID (Final Investment Decision) in the coming years to support the

increasing demand for LNG in both Europe and Asia. LNG’s share of gas production can reach 17% in 2030, up from 12% in 2020. With the Russia-Ukraine war bringing security of energy supply into focus, the outlook for LNG trade appears even more positive than previously thought, with forecasts now suggesting potential for the LNG trade to grow by 5%-6% per annum to more that 615mt by 2030 (up from 4.8% previously and while today stands at 417mt). This development is estimated to initiate significant additional LNG carrier requirements, while ordering is also likely to be supported by fleet renewal, predominantly due to new environmental regulations coming into force, with steam turbine vessels still accounting for 33% of fleet capacity. The LNG carrier fleet totaled 689 vessels of 103.6m cbm at start May, following rapid growth of 9.8% in 2021 as a result of record deliveries (9.4m cbm). This year, LNG carrier fleet capacity growth is projected to moderate to 4.5%. LNG carrier contracting reached a record in 2021 with 85 vessels (77 >40,000 cbm) contracted. Strong contracting was mainly driven by project requirements (a record volume of liquefaction capacity is currently scheduled to come online in 2025-26), whilst speculative ordering amplified amid robust market conditions. With the guideline newbuild price rising from $186m to $210m across the course of the year, some owners also decided to exercise options secured at more modest prices. At the moment, Newbuilding interest remains very strong, while another very strong year of

The market is expected to be faced with certain concerns in 2023, as ton-miles are estimated to grow by less than 3%.

ordering is anticipated this year, assisted by the major Qatari expansion project. To date, a total of 50 LNG carriers were ordered, taking the orderbook at the start of May to 222 vessels, equivalent to 35.7m cbm, equivalent to 38% of fleet capacity, which is a similar level to what it was seen back in 2016. On the side of liquefaction and regasification capacity, a total of 11mtpa of export capacity started up in 2021, with one liquefaction terminal of 10mtpa (Calcasieu Pass in the US) coming online already this year and with another 5mtpa scheduled to start up in the rest of 2022. As of the end of Q1-22, there were 23 export terminals of 141mtpa under construction, with a further 297mtpa of capacity in FEED (Front End Engineering Design). Project authorizing sentiment improved last year and into 2022, with 51mtpa of capacity reaching FID/starting construction last year, and 21mtpa (all in the US) beginning construction so far this year. A record volume of SPAs was signed in 2021, many of which for US projects. However, given the conflict in Ukraine, it looks likely that the Baltic LNG and the Arctic LNG 2 (both under construction in Russia) will face delays or may not progress due to financing issues. Meantime, the small-scale sector continues to expand, with 10 small-scale import terminals (less than 1mtpa) under construction and a further 35 proposed (vs. 25 in operation). The small-scale fleet (vessels <40k cbm) stood at 60 ships at start May, of which 15 are LNG bunkering vessels. A further 18 units are on order, incl. 12 bunkering vessels. Meanwhile, to service the growing LNG capable fleet, LNG bunkering infrastructure at ports continues to expand, with 143 ports now equipped with LNG bunkering facilities, up from 132 at start 2021, and this number expected to increase to 184 by end 2022.

CMY

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ALTERNATIVE FUELS AND NEW TECHNOLOGIES I wish shipping remains home and shipowners pursue strategies to keep up with our long tradition in shipping, an industry brightly and finely exemplified by Greece

I Stavros Ηatzigrigoris Advanced Engineering Services

SHIPPING 2022

was asked to express my opinion on how I see developments regarding gaseous pollutants, new fuels, and new technologies, and provide an outlook of Greek shipping.) In order to comply with the new regulations on reduction of carbon dioxide emissions, global shipping is focusing on a search for alternative solutions, such as the use of new types of fuels and the adoption of advanced technologies. The new types of fuels that have so far attracted interest in ship propulsion are liquefied natural gas (LNG), biofuels, methanol, hydrogen, ammonia, liquefied petroleum gas (LPG) and in the future nuclear power. LNG appears to be one of the protagonists of alternative fuels, as evidenced by the ever-increasing orders for new LNG-ready Dual Fuel vessels. Specifically, in 2021 approximately 22% of orders for containerships (over 10,000 TEU) concerned LNG Dual Fuel ships, a rate jumping to 40% in 2022. However, a challenge in using it as a propellant for ships is its storage, owing to both its half energy density compared to traditional fuels, and the need to store it at very low temperatures (-160oC). In addition, crew training when using any alternative fuel is an issue to be considered. The biofuels alternative, although environmentally sustainable, does not seem to be as competitive as LNG yet, because of their higher cost and not being widely available yet. Interestingly, biofuels can be blended with other fuels, too, such as heavy fuel oil (HFO) or marine gasoil (MGO) in any proportion. Methanol as a fuel is taking its first steps, with the first Dual Fuel engines using methanol being already available on the market. Notably, methanol can be produced

from renewable raw materials, such as municipal and industrial waste, bioenergy, carbon dioxide and hydrogen. The challenges in using methanol as a fuel lie, inter alia, with its corrosive nature, which may affect the engine’s fuel supply system, as well as its difficulty of storage. Although the technology for using hydrogen as a marine fuel has not yet matured, hydrogen is a promising potential fuel for the future. Among its advantages is its wide range of flammability, but it has a low energy density per liter at storage temperature. Additional deterrents include the lack of safety regulations, higher investment cost and its storage at very low temperatures (-256οC). What seems to be a possible solution is the idea for hydrogen production onboard. The use of ammonia as a marine fuel is still in its infancy, with the first Dual Fuel engines using ammonia expected in 20242025. Its pros include the ease of storage with no need for low temperatures, and its low flammability that improves its safety profile. However, its cons include its high toxicity which can cause damage to various components, and the need to use pilot fuel, which increases greatly at low engine loads. Commercial barriers are also emerging, such as the low availability of sufficient ammonia that can be used as fuel, as shipping competes with the fertilizer industry, and this results in higher costs. With regard to LPG, several ships already have dual fuel systems installed for LPG use. Of course, the majority of ships with this option are LPG carriers, which use their cargo as fuel. In addition to the use of alternative fuels, new technologies such as advanced hull

paints, air lubrication, electrification, fuel cells, Alternative Marine Power (AMP) or cold ironing, rotor sails and carbon capture (which can eliminate the need for alternative fuels), will undoubtedly play a major role in achieving the goal of reducing carbon dioxide emissions. The newly introduced regulations will inevitably have an impact on the commercial operation of ships owing to a likely reduction in speed or engine power, as well as on the size of ships, as the larger vessels will have an advantage over smaller ones. Regarding the future of our shipping I believe that: a. Shipping in general, but especially in most of its industries, has created quite a large accumulation of capital in the past fifteen years. b. The return on investment in shipping tends to approach the return of other investments with an emphasis on new technologies, renewable energy, and also areas related to the recovery of the economy in the post-Covid era. c. Ships will be more expensive with the introduction of new technologies. d. New fuels will cost more than oil. e. Pollution taxation (initially in Europe and later in the US, China and Japan) will further complicate the picture. g. The new generation of Greek shipowners, based on their capital adequacy and borrowing options, will consider establishing new trade relations in shipping, but also in other sectors with possibly higher returns. I wish shipping remains in Greece and shipowners pursue strategies to keep up with our long tradition in shipping, an industry brightly and finely exemplified by Greece.

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SHIPOWNERS - CHARTERERS HONEST COOPERATION Communication and cooperation between shipowners and charterers is a prerequisite for the successful implementation of the international regulations CII (IMO) and ETS (EU)

D Panos Zachariadis Technical director Atlantic Bulk Carriers Management Ltd

SHIPPING 2022

ecarbonization is the biggest shipping challenge of the future. Whether it is dealt with successfully depends not only on shipping itself but also on other stakeholders, such as fuel producers, shipyards and engine manufacturers, charterers and, inter alia, the governments of the countries. So far, the governments of some countries, through the IMO, have adopted regulations for the near future, while the EU member states doing something similar with the inclusion of shipping in the “Fit for 55” package. However, these regulations are addressed to the shipowner or the ship user, while they should be addressed primarily to shipbuilders and fuel suppliers. In addition, these regulations are not well designed to really bring the maximum benefits. Governments will have to do much more to achieve this decarbonization, with generous funding for research into new technologies and alternative fuel sources (really green, not fossil fuels) instead of blaming the user. However, apart from the medium term, major challenges are coming soon, as of 2023. The IMO's CII (Carbon Intensity Indicator) and the European Union’s ETS (Emissions Trading Scheme) regulations are expected to bring about major changes in the way ships are managed, but also in the relations between shipowners and charterers. Starting with the ETS, shipping is now part of the EU's emissions trading scheme, where all ships approaching or departing from European ports must submit CO2 emission allowances equal to the emissions of 50% of their voyage. For voyages within the EU, 100% of the emissions will be deposited. These rights are bought from the European Pollutant Release and Transfer Register (E-PRTR),

where prices are set by the markets, and recently ranged from 80 euros to almost 100 euros per tonne of CO2. Since one tonne of oil emits about three tonnes of CO2, this means that each tonne of oil will cost an additional 300 euros, while the daily extra cost for a relatively small supramax or panamax ship is around 10,000 euros. In other words, a trip to and from European Union ports will in future cost a ship twice as much as normal, which will of course be borne by the European consumer, while European Union exports will become less competitive. Another scenario is to develop transhipment ports outside the European Union (e.g. Morocco, Turkey), so that such costs are charged not for the entire trip but only for the shorter distance from these neighboring countries. These rights can be purchased at any time, but are deposited by the ship manager at the beginning of next year (until April), covering all of the ship’s European voyages in the previous year. Due to the large amounts that can be accumulated, it is advisable for the shipowner to ask the charterer to hand over the respective rights to him immediately at the end of the European voyage or at regular intervals. It is also advisable to hand over to the shipowner the real carbon allowances and not just their cost in euros or dollars, because the price of the allowances (which will have to be bought in this case by the ship's manager) may change drastically,

A trip to and from EU ports will in the future cost twice as much as normal, which will of course be borne by the European consumer.

especially in the early days of each year, when everyone rushes to buy rights to their emissions. IMO’s CII regulation that will come into force from 2023, is a complex and difficult one to implement. The CII index will classify ships into energy categories A, B, C, D and E, and requires each ship at the end of each year to be at least in category C. Given that this will be harder to achieve each year (as the average line C is reduced by 2% each year), it is estimated that a very large percentage of the world fleet will not make it. Nevertheless, the consequences of a ship falling below Category C are limited (for the time being) to the submission of a “corrective” plan for the operation of the ship next year. The problems here are many, as the CII index (or any other indicator of the energy “operation” of ships) does not represent the true energy efficiency of ships, and is greatly affected by bad weather or port congestion. It also favors long voyages and even with the ship in ballast condition instead of fully loaded with cargo. In any case, the index is primarily a consequence of the operation of the ship, which means that if the ship is chartered, the charterer and their instructions to the ship will determine whether the regulation is satisfied or not. Therefore, the shipowner and the charterer should be in constant communication and cooperation, the former handing over all the data to the latter, in order for the latter (charterer) to modify his instructions (e.g. for reduced ship speed), so that at year-end the ship remains in Category C. BIMCO is working out new terms for future charter agreements on these new regulations, which can only be achieved through close and honest cooperation between shipowners and charterers.

Discover the World on the Aegean Odyssey

ΙΝΤΕRVIEW ●

Digital transition: Challenges, risks and benefits Capt. Dimitris Mattheou describes the course of action that shipping companies will have to take to move into the digital age. He is currently CEO of Arcadia Shipmanagement and CEO of Aegean Bulk; he is also Chairman of Green Award Foundation, and President of Ahepa Maritime Chapter HJ-45 St’ Nicholas Βy Antonis Tsimplakis atsimplakis@naftemporiki.gr

“Shipping companies’ management must first ensure real interconnection of ship and land, uninterrupted and high speeds, without restrictions, along with secure integrated IT and communications infrastructure on ships as cornerstones, creating healthy and secure digital environments, responsible for safe technological tools,” says Mr. Mattheou. What is your opinion on the path mapped out by the shipping industry for its digital transition? “We live in an age where technology is literally galloping, to the extent that it has been put in the minds of people and consumers as a social good. Despite the general feeling, let me start with a specific position resulting from my experience as a shipping professional, which simply says: In a vulnerable market such as shipping -responsible for the safe transport of more than 90% of goods and raw materials worldwide- compliance with regulatory frameworks, as well as respect for the sea and people will always be our top priorities. Therefore, we must look for those innovative uses of technology that can enhance the efficiency of our work and, of course, in a safe way.

SHIPPING 2022

Having this position as a filter, we must as people of this particular industry carefully consider the tools offered by digitization, so that Greek shipping can proceed The emphasis to secure digital transition on security of actions which ultimately information make sense and add value access and on economic, regulatory and transmission social levels. should have As a general observation, preceded I see that the plethora of digitization applied global shipping during the solutions is focused primarily pandemic. on its “soft” transformation, with an emphasis on decision support systems, or on optimizing the efficiency of office operations with live data from ships. I think this is just a good start.” So, what happens in practice? “In practice, we need more players who can holistically envision the future of the shipping industry, with substantial disruptive technologies synergies such as the Internet of Things, and technology contribution at the levels of Big Data, Augmented Reality, Blockchain and the general application of Distributed Ledgers. Really, imagine the time when the traditional and modern Operational Technologies of ships of an entire fleet operated on an interactive basis. Imagine all the information generated by this interoperability

and interaction feeding power data, structured or not, into big data lakes, thus ensuring the smooth operation of the entire supply chain, and making it more trouble-resistant. Imagine the above data, even the simplest, from certificates, ISM documentation and data, charter parties to planned maintenance services of ship equipment, to be blockchain blocks, ensuring the integrity and transparency of the operation of the entire industry. Imagine the capability of intervening through Augmented Reality on board when there is an immediate need, etc. I believe that in practice we should take firm and solid steps. Shipping companies’ management must initially ensure real, uninterrupted, high speed and unrestricted ship-land links, along with secure integrated IT and communications infrastructure on ships, as cornerstones, to foster the creation of healthy and secure digital environments, required for the safe adoption of disruptive technological tools such as those I mentioned above. Some of these tools are already here, while some others are expected to be available in the near future.”

Dimitris Mattheou: We must carefully consider the tools offered by digitization, so that Greek shipping can proceed with secure digital transition actions, which ultimately make sense and add value in economic, regulatory and social terms.

What are the latest developments in the area of digital security, as one of the most critical issues? “I believe the emphasis on digital security is the starting point for all shipping considerations, as the future clearly shows that there will be ever greater traffic and interaction of data from ships to land and vise-versa, which creates risks at levels that we can not fully assess at present. Really, adopting applications only as an evolution of shipping technology and not so much in terms of the safe operation of the digital environments that host these applications and their data, is like building a ultra luxury house, and skipping door and window access control. On the other hand, seeing the penetration of complex, but excellent technological solutions in terms of efficiency, we realize that huge in-house and multifaceted know-how is required by shipping companies, even at the level of managing synergies with providers. To retain our competitiveness as Greek shipping, such know-how -needed immediately- must be supplied by domestic companies. What better way than to know this knowhow comes from the Greek IT and communications

industry. An example of this is our recent collaboration, as Aegean Bulk and Arcadia Shipmanagement, with a 100% Greek-owned company, IQ Solutions, one of the few It is our companies in the world that obligation can provide 100% managed to support IT and communications the efforts ecosystems on ships, with of Greek several certifications at cyber companies security level by international active in registers of shipping. Yes, the field this domestic, Greek-owned of applied company has reached such a technologies. level of reliability of integrated IT systems at sea worldwide! I should remind that Greece has been and still is a shipping pioneering people. We currently going through a period during which complex technologies will be rapidly and vertically applied in our industry. We ought to embrace them with caution, professionalism and an emphasis on safety, all key features of Greek shipping. We ought to support efforts by Greek companies in the field of applied technologies, as we practically know that the preconditions are there to allow Greece claim a dominant position in the world market.”

a direct consequence of the simultaneous, almost chaotic disorganization state of the balances of supply and demand of goods, etc. I don’t know if the word “helped” that you used is the right one, but I think the pandemic accelerated things in a forceful way, which is not necessarily good. As a good example I shall refer to the adoption of augmented reality solutions instead of attendances and inspections, something that was accepted and suggested even by shipping registers. Such solutions have proven to be good tools for land-to-ship immediacy, and prospects regardless of the necessity of Covid are ample for the future. On the other hand, as an example of forceful progress I could emphasize the soft solutions of support and collaboration systems in shipping, which significantly increased the volume of digital data exchanges. However, the market was digitally exposed and unprepared in terms of cyber security, both at the proactive and reactive levels. I think the emphasis on security of access to and transmission of information should have preceded digitization during the pandemic.”

Do you think that the Covid era helped Greek shipping accelerate its digital transition? “Unluckily, the pandemic, caused several troubles including disorganization in the supply chains as

SHIPPING 2022

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ENTERING AN ERA OF ACCELERATED INNOVATION Challenges for the Maritime industry (both technological and environmental) for the coming years, ideas for practical solutions and a small account of the past four years

Sergios Arniakos Sustainability Manager Latsco Shipping Limited

SHIPPING 2022

s we are now halfway in 2022, the world and the shipping industry being a major stakeholder of global trade, is facing two black swan events, the COVID pandemic which is slowly receding and the Russian invasion of Ukraine at full force. Apart from the grave social implications, these two crises have caused disruption to global trade and the shipping industry specifically. We are witnessing unprecedented and tectonic changes in the global supply chains, an energy transition required to fight climate change and we are also facing the world’s first global energy crisis caused by the Russian invasion. The past couple of years, progress in seaborne trade was uneven across the sectors, with container, dry bulk and gas trade rebounding resolutely, while oil trade saw limited improvements. Recovery in seaborne trade begun in late 2020 and continued throughout 2021, with overall volumes returning to pre-Covid levels by mid-year. 2022 had already started with a number of key risk factors, including impacts on global oil demand from increasing oil prices, macroeconomic headwinds, continuing “cooling trends” in the Chinese economy, the impact of tapering stimulus, increasing pressures from inflation and concerns about emerging market debt. Furthermore, the shipping industry is being subjected to complex and diverse regulation, considered to be a game changer for the industry. Technical, operational and market-based-measures are being used from the IMO’s and the EU’s arsenal, in an effort to decarbonize the shipping industry and fight climate change. The IMO has set a target for the reduction of CO2 emissions by 40% by 2030 and 70% by 2050 and a reduction of total Green House Gases by 50% by 2050 versus 2008. In order to provide shipowners with a reference point to reduce the emissions and meet the targets, the IMO introduced two decarbonization measures, the EEXI (Energy Efficiency Existing Ship Index) and the CII or Carbon Intensity Indicator. EEXI compliance will be mandatory by 2023 and is likely to have a small impact on modern tonnage, however CII may have a more

fundamental impact and may affect commercial contracts, as it becomes progressively stricter over time. As regards to the EU, shipping is responsible for circa 13% of GHG emissions of the EU’s transport sector and in July last year, the EU, which has a higher ambition than the IMO, announced an update to the EU Green Deal, the “Fit for 55” package, aiming to reduce the net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels. The goal is to accelerate the greenhouse gases emission reduction in the next decade. The “Fit for 55” package impacts the shipping industry mainly with two dedicated proposals:  The inclusion of shipping in the EU-ETS (Emissions Trading System)  The FuelEU Maritime Initiative Extending the EU-ETS to the maritime sector will further drive energy efficiency improvements and narrow the price gap between conventional and low-emission technologies, whereas the FuelEU specifically targets the fuel mix between conventional, renewable and low-carbon fuels. While meeting medium-term regulations set for 2030 is manageable, especially for shipping companies with modern tonnage, longer-term regulations set for 2050 will not be possible without new technologies, low or zero carbon fuels and scalability. As such, the industry is entering an era of accelerated innovation in technology and increased transparency that will differentiate forward-thinking companies. This environment presents a substantial technological challenge as there is no silver bullet in terms of optimal ship propulsion technology and fuels. Regarding low or zero carbon fuels, scalability is presently a constraint and as far as larger ves-

A change of mindset in the entire value chain is required, as, apart from complying with the regulations, there is increased pressure to decarbonize, from both the customers and the end users.

sels are concerned ammonia and methanol seem to be the current forerunners. However, we need to remember that a complete value chain for these new fuels, i.e. production, distribution and on-board technology needs to be developed and tested. In addition, the IMO regulations and high EU carbon permit prices may also drive alternative methods of dealing with CO2 emissions, like post combustion carbon capture. Efficiencies may also be realized through digital technologies like AI and dedicated maritime software, but the human factor will always be the foundation and driver of the shipping industry. Man and machine need to learn to work together and complement each other. As regards to the ESG landscape, an increasing number of shipping companies align their ESG and business strategies and disclose their ESG performance. Environmental Social and Governance criteria may affect financing as a large percentage of institutional investors have already started to use ESG performance to screen their investments. Furthermore, the Global Maritime Forum has introduced two initiatives, the Poseidon Principles and the Sea Cargo Charter, which push towards the same direction as the regulations. Some of the world’s biggest shipping banks have become signatories of the Poseidon Principles in order to incentivize decarbonization in the industry and align their shipping portfolios with the sustainability objectives set by the IMO. In a similar pattern, some of the world’s biggest charterers became signatories of the Sea Cargo Charter in order to underpin their commitment to reduce the Green House Gas emissions of shipping. Looking ahead, in view of these numerous challenges that the shipping industry is facing, shipping companies are strategizing and are carefully considering their fleet renewal plans, while constantly researching and learning about the advancements in ship technology and fuels in order to make the right decisions at the right time. Sustainability, resilience and agility are required more than ever in order to create value for all stakeholders..

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SHIPPING IN THE INDUSTRY ERA 4.0 Shipping, for a variety of reasons including competitiveness, security, environmental protection, geopolitical interactivity, is as a suitable field for the application of technological developments as any other transport sector, like the automotive and aviation industries

M Dionysis Christodoulopoulos Managing Director Man Greece

SHIPPING 2022

y generation grew up with a typical American TV series, “Knight of the asphalt,” in which a car with artificial intelligence (KIT) starred as a hunter of “the corrupt and the bad.” Who would have thought in 1979 that a few decades later we would be holding a piece of artificial intelligence in our hands as an everyday tool, that is, our mobile phone, and that many cars would actually be moving without a driver. But let's take things in stride. It is certain that humanity never realized the cataclysmic changes at the time they occurred. Societies have always functioned as entities which survive evolutionary and have as their inherent characteristic the constant transformation and the perpetual adaptation of the model of production and consumption of goods. The invention of agriculture dramatically reduced the nomadic way of life. Then, steam and engines brought about the first industrial revolution. Electricity and the industrial model change brought the second industrial revolution. Computer science has automated many time-consuming and laborious processes and activities in which humans were consumed until almost half a century ago. The fourth revolution we have been living in for several years now is based on real-time data management and analysis (Datascience), Algorithms, the Internet of Things (IoT) and Robotic Process Automation. Thus we live in a period of exaltation of the most essential characteristics of the human species, such as the ability to perceive, empathy and ingenuity, where the use of the “goods” of the 4th Industrial Revolution (Industry 4.0) offer unprecedented ease in performing complex calculations in a timely manner and in a multidimensional way. The main feature of this revolution is that while it

appears as a threat to employment, it actually boosts human potential. It acts as a catalyst in making the right decisions to increase efficiency, and provides critical information for their evaluation. Shipping, for a variety of reasons including competitiveness, security, environmental protection and geopolitical interactivity, is as a suitable field for the application of technological developments as any other transport sector, like the automotive and aviation industries. In the shipping sector, a whole branch of professions has now been created that is part of the new reality, such as, for example, specialists in Ship Automation, Energy Efficiency Optimization, Data Analysis, Cybersecurity, Remote Ship Operation Monitoring, etc. Such specialties did not exist 20 or even 10 years ago, but today play key roles in shipping companies’ smooth and efficient operation. All parties involved in the shipping industry are now investing significant resources in the development of all those systems that will allow them to overcome insurmountable obstacles of past centuries. In shipping, the most important factor in serious accidents is man. The happy reality is that this factor is declining not proportionally but exponentially, because while there is a lack of empirical know-how in the crews, the “safety net” offered by artificial intelligence works in a preventive way to avoid serious failures and accidents. The constant new environmental regulations create unbearable pressure on shipowners to keep their companies in line with the

Specialties that did not exist 20 or even 10 years ago, are now playing key roles in shipping companies’ smooth and efficient operation.

current framework. Without a timely monitoring system and real-time digital simulation models, this would not be possible. Another parameter is the commercial dimension of the 4th Industrial Revolution. Shipping has traditionally been a field where relationships prevailed over objective conditions. However, platforms that now record and offer all the data to anyone interested is literally an open book for brokers, investors, banks, managers and owners of shipping companies, to make the best choices in terms of freight management, chartering, or their investment position. Similarly, activities such as general procurement, fuel purchase, crew selection, provision of technical services, forecast of meteorological conditions, etc., can be taken care of instantly and safely using the latest digital methods. And of course, the purely technological dimension could not be missing from the shipping chain. New shipbuilding and ship repair activities are further enriched with processes and methods that minimize human error and increase productivity. However, they also highlight the urgent need to drastically reduce digital illiteracy. The need for empirical knowhow by every engineer or craftsman will certainly not cease to exist; however, this part of services will be developed within frameworks defined by data routines and digital verification/correction. For instance, traditional shipyards have already completely replaced decision-making with robots receiving data from augmented reality sensors. Boasting all the guarantees (capital, human resources, socio-political penetration, access to innovation), shipping can not only capitalize on the advantages of the 4th Industrial Revolution but also help create the conditions for its further enrichment and the basis for the next, even more exciting beginning of the 5th Industrial Revolution.

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HELMEPA: 40 YEARS IN THE FRONT LINE This year, the Hellenic Marine Environment Protection Association (HELMEPA), celebrates its 40th anniversary, having always been at the forefront of the health of our seas and coasts through multidimensional action and collective offer

H Semiramis Paliou Chairperson, HELMEPA

aving ~been established and grown as an offspring of Greek shipping, HELMEPA is driven by a collective desire to bequeath to the next generations a sustainable development course, starting from marine and coastal environment protection. The Hellenic Marine Environment Protection Association has evolved into a model, open, and participatory platform of cooperation numbering more than 250,000 volunteers, young and old, from the wider society throughout Greece, also enjoying active participation by hundreds of member companies and organizations promoting sustainable development and sustainability. Sustainable shipping. Developments in the field of shipping are rapid, especially in the field of sustainable development, and the big bet up to 2030 will be the green and digital transition of shipping, such as the gradual decarbonization, further development of legislation to reduce pollution, and investing in research and development of innovative technologies. At the same time, we focus on upgrading seafarer skills. For example, officers today are also modern managers, as their role has become more complex, with a lot of administrative work. Recognizing today's challenges, HELMEPA's training proposal, offered through the Maritime Training Center, seeks to be a holistic one. Thus, in addition to technical issues, we also focus on the cultivation of soft skills, which are also essential assets for the professional development and mental well-being of seamen, especially in the pandemic era and with the green and digital transition in full development. New generation. Starting from kindergarten to entering the job market, we maintain a long-standing relationship

of trust and interaction with future leaders, through the programs of Children HELMEPA (children 5-11 years old), Nautilus (12-18 years old), and more recently the creation of Youth Ambassadors (15+ years old). We work closely and seamlessly with the educational community, highlighting human-sea interaction, enhancing educators and students’ knowledge on the oceans, and encouraging individual and collective action. To date, more than 133,000 primary school students have become “Glaropoulos,” i.e. assistants of the emblematic Gull, carrying out more than 40,000 environmental actions under the guidance of volunteer teachers, while an additional 242,000 students have visited our environmental fairs. In recent years we have witnessed a constant awareness and willingness to inform and take action to protect the environment. The new generation seems to be showing the way, and this makes us extremely happy. Coastal cleanup. While volunteering is constantly cultivated, the hands-on experience of offering and acting in the field significantly enhances the formation of a new mentality at individual and collective levels. Notably, in 2021 -in the midst of the pandemic- we set a record of coastal cleanups in the context of the voluntary International Coastal Cleanup, coordinated in Greece for the past 31 years by HELMEPA. Specifically, 196 cleanups were organized throughout the country, covering 130 kilometers of coastline, with the voluntary and Our compass is the legacy left to us by the pioneering founders of HELMEPA: “honour and decency, cooperation and collective offer.”

active participation of about 5,500 citizens. In a few weeks, we will announce the 2022 campaign, and are expecting even higher participation numbers from our ever-expanding network of members and partners. Let no one be left behind. This year HELMEPA celebrates a legacy of 40 years of multidimensional activity, and in this context we are implementing throughout Greece and abroad as many as 40 central information, awareness and mobilization actions for everyone to “move” for the health of our seas and coasts, conveying the message “The sea is life”! Through our central actions to celebrate our 40th anniversary -in addition to the sustainable development, soft skills and environmental leadership labs, which are also a guide for the coming years- we embark on a campaign to map good practices; promote the exchange of knowledge and knowhow for the green and digital transition; implement Awareness campaigns for the protection of the seas, climate change and maritime safety; reinforce the links between Universities and the shipping community; highlight employment prospects in the Blue Economy, especially for young people under the Blue Generation initiative; focus on maritime education for the development and enhancement of professional skills; and, through international collaborations and fora highlight the commitment to keep oceans clean and healthy by both Greek shipping and the community as a whole. Our main goal and success is to communicate with society, maintaining a link between knowledge, cooperation and joint action. That is why we insist on understanding the concepts and challenges, so that no one is left behind and we can have a greater and more lasting impact. Because we can save the seas.

SHIPPING 2022

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DECARBONIZING SHIPPING Success takes cooperation, and the Hellenic Decarbonization Committee, founded by RINA in 2021, provides a forum for cooperation, discussion and exchange of ideas, with participation by all shipping industry stakeholders

T Giosue Vezzuto Executive Vice President, Marine, RINA

SHIPPING 2022

he shipping industry has to meet tough decarbonization targets, in line with IMO2030 and IMO2050 directives. We ought to accept that today there is no practical nor viable zero carbon solution. On the contrary, we are on a progressive journey, which requires a multifaceted approach to the problems encountered, including technologies, fuels, regulations, management issues and procedures. Although we have a long way to go, what’s important is that much progress has been made and many options are under consideration. We do not know what the final solutions will be, and do not have the luxury of time to ignore any potential technology or alternative fuel. Solutions using existing technologies and readily available fuels, such as LNG, offer ways to substantially reduce carbon emissions in the industry today, in view of achieving IMO2050 targets. Another significant progress is the recent approval in principle (AiP) of a dual fuel engine for an MR Tanker, which uses LNG and hydrogen. LNG is used in the production of hydrogen directly onboard using a gas reformer, thus eliminating the need for hydrogen infrastructure in ports. It is a perfect example of how modular, scalable proposals can power the industry with solutions so that we can move forward step by step. The technology can be added over time to increase the amount of hydrogen used as ship fuel. Ultimately, it offers a way to surpass not only the IMO2030 but also the IMO2050 targets, using technology available today, and even though the AiP was about an MR Tanker, the general idea could be applied to other types of ships as well. The progress of digitization in recent years is another important aspect of the decarbonization effort. Fleet digitization provides the data we need to understand how efficiency can be increased. The number of

ships using RINA's fleet optimization platform continues to grow, and the more data we collect in order to power analytical artificial intelligence algorithms, the greater the potential for increased efficiency. If we want to succeed, it is important to work together. The Hellenic Decarbonization Committee, founded by RINA in 2021, provides a forum for collaboration, discussion and exchange of ideas, with the participation of all stakeholders in the industry, including shipowners, technology providers, ship designers, shipyards, financial institutions and RINA as a classification society. The Committee has already shown how ideas can be put into practice. For example, engine derating, which offers a significant reduction in emissions, is now feasible in terms of full power testing. Other significant advances have been made, with ideas involving the use of hydrogen, ammonia, methanol and hybrid or all-electric designs, with RINA continuing to work on assisting with implementation. There are zero carbon technologies and fuels that will ultimately lead us to our goals, but we have a long way to go to ensure that these are economically and practically sustainable, and that the required infrastructure is there to support global shipping in all categories of new fuels and technologies. As mentioned above, cooperation and being open to all options are important factors in achieving the IMO goals.

Although we still have a long way to go, it is important to know that much progress has already been made and many options are being considered.

What to expect in 2030? Failure is not an option, but what technology

will provide the answers we need? No one has a crystal ball, and that's one of the reasons we have to pursue all the options available. Progress has been made and there are some exciting technologies and some research project, and if we can create the financial background and infrastructure to support them, we will produce green fuels at such a cost and scale as to support international shipping. This requires the input not only of stakeholders in the shipping industry but also of governments, regulators and the energy industry. Of course, decarbonization is not the sole shipping industry responsibility. It is an international challenge for all sectors. With a long history and experience in shipping, RINA is fortunate to be able to work in areas such as energy, transportation and infrastructure, and in many industries, including highly polluting industries such as iron, striving to cut emissions and increase sustainability. This enables us to have insight into potential technology applications and some responses to shipping challenges that could well come from other industries. Summary Many changes have been made in recent years in terms of both technology and global mentality on decarbonization. For example, this can be seen from strong participation in international decarbonization committees, where all stakeholders are actively involved in strategies to achieve the decarbonization goal. Indeed, RINA has set up an exclusive Decarbonization Operations Unit to support the needs of all of its customers from all business sectors for decarbonization services. It is a collective approach that will offer practical solutions to the decarbonization challenges not only in the shipping industry, but the world as a whole.

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ACCELΑRATIΝG BY... REDUCING SPEED Four years after the first announcement of the IMO targets for reducing emissions, we record what shipping has achieved and what can be expected by the first milestone of 2030

I Vassilis Dimoulas Technology & Innovation Manager, Greece Cyprus & Malta at Bureau Veritas Hellas SA

SHIPPING 2022

t has often been reported that in the transport sector, seagoing shipping is the most efficient way of transporting cargo with much less emissions per ton of cargo compared to others ways, such as land or air transport. Nevertheless, keeping up with the tradition of self-regulation, the shipping industry itself has recognized its obligation to reduce and possibly eliminate ship greenhouse gas emissions to zero. The International Maritime Organization (IMO) in April 2018 set the targets for reducing carbon dioxide emissions, with the milestone dates being 2030 and 2050, and a reference date of 2008. For the first milestone of 2030, the target is to achieve a reduction of at least 40% in emissions intensity (tonnes of emissions per transport project). Today, exactly four years after this first announcement of the IMO targets, it is interesting to try and record what shipping has achieved and what can be expected by the first milestone of 2030. The first and very critical task towards achieving a quantified goal is to define the index of measured performance. Much has been written and said in public debates about the choice of the IMO to set this indicator as the so-called Carbon Intensity Indicator (CII). CII is a simple indicator that defines the transport project as the product of the distance that a ship travels during the year by its maximum carrying capacity. The CII has been described, not unjustly, as relatively inaccurate, as it does not contain the actual amount of cargo transported. The truth is, however, that with the CII, the IMO had available data at its disposal to quantify relatively well the performance of the global fleet in 2019, and to determine the rate of decline that would achieve the first target for 2030. These data wee derived

by measurements through the DCS (Data Collection System), which the IMO implemented for the first time in 2019. The IMO estimate following the 2019 emissions study was that the fleet had already achieved an average reduction in emissions intensity by 20% - 22%. This reduction was mainly attributed to the lower speeds which were gradually adopted. The evolution in ship energy efficiency design technology from 2008 to 2019 also played a role, but only minor, since no impressive progress was made during this period. Bureau Veritas Piraeus’ Technology & Innovation team attempted to make a comparison of global fleet performance between 2019 and 2020 using DCS data. The comparison was made for four main types of merchant ships, bulk carriers, tankers, containerships and LNG Carriers. The results are shown in the following charts: A first glance at the results shows that variations in performance are negligible. The reduction in required CII is 1% between 2019 and 2020, while the prices of attained CII are more or less the same, sometimes better and sometimes worse between the two years. The latter is an indication that seagoing ships, by simple business practices such as speed reduction, have little room for improvement in energy efficiency. This means that over time, and by reducing the required CII by 2% each year after 2023, the deviation in the required and attained prices will grow.

Without new technologies and alternative fuels, shipping cannot further reduce emissions.

There are a number of technical solutions that can be applied to existing ships to help them keep up with the decline in CII by 2026, with some of them being more costeffective and some others less cost-effective, but at a lower cost. These costs should be able to be compensated by corresponding profits or savings, either from energy/fuel costs or from reducing emissions costs in the event of legislation, such as the EU ETS or FuelEU Maritime coming into force. On a purely operational level, a better time management of the ship by reducing port waiting time, can increase the transport work that the ship performs during the year, thus reducing the intensity of emissions. It takes very good cooperation between managers, charterers and ports to achieve this. Using alternative fuels Beyond that, however, in order to achieve the already ambitious goal of reducing emissions by 40% by 2030, the use of some kind of alternative fuel or technology is required. A very popular first choice is biofuels, as they are ready for use by existing diesel engines without conversions. Biofuels have a low CO2 emission balance in their life cycle (carbon-neutral), as the biomass from which they come has bound CO2 during its production. The IMO has begun to develop a regulatory framework that will address this life cycle balance, something that does not exist to date. LNG is also already in use, since with the current method of calculating emissions from the tank to the propeller (well to wake), it offers an emissions reduction by about 20%. The growing trend of LNG

n Performance comparison of world Fleet based on CII Avg. Dwt - Avg. CIIs Avg. Dwt [Mil. Tons]

Attained CII Based Avg. Fleet Values

Required CII Based On Avg. Dwt

Bulk Carriers 8.66

8.35 300

300

250

5.66

250

5.47

200

4.14

150 100 50

31.6

58.3

Handysize/ Handymax

Supramax/ Ultramax

79.3

4.43

3.01

150

3.08

155.5

Panamax/ Mini Capes/ Kamsarmax Capes

2.29

2.15

209.0

303.4

Newcastlemax

VLOC

2.25

2.27

209.1

308.0

Newcastlemax

VLOC

100 50 0

32.0

58.5

Handysize/ Handymax

Supramax/ Ultramax

79.5

155.6

Panamax/ Mini Capes/ Kamsarmax Capes

2019

2020

Tankers

18.10

300

7.78

300

6.84

250

5.33

2.71

150

100

20.6 Other

48.8

73.0

108.3

149.3

MR/Tanker Panamax/LR1 Aframax/LR2

309.2

Suezmax

6.77

5.44

200

150

7.85

250

4.57

200

19.75

VLCC

4.11 2.68

20.8 Other

49.3

73.8

108.5

149.6

MR/Tanker Panamax/LR1 Aframax/LR2

308.6

Suezmax

2019

VLCC

2020

Container Ships 23.15

250

200

23.13

200

13.58

150

9.95 7.21

100

4.87

13.31 9.64

100

7.28 4.67

11.4

27.3

55.6

112.9

201.2

Feeder

Handysize

Panamax

Neo Panamax/VLCS

Megamax /ULCS

11.5

27.6

55.7

Feeder

Handysize

Panamax

113.0 Neo Panamax/VLCS

2019

213.3 Megamax /ULCS

2020

LNG

150

11.53

150

10.76

120

9.92

13.79

13.36

120 90

7.44

30 0

14.15

7.60

78.1

87.5

94.2

122.5

Steam Turbine

DFDE/TFDE

2-Stroke DF

QFLEX/QMAX

2019

76.5

87.1

93.6

122.1

Steam Turbine

DFDE/TFDE

2-Stroke DF

QFLEX/QMAX

2020

use has slowed down recently, due to an increase in prices and geopolitical developments, but it still is a transitional solution toward the next generation of carbon-free fuels. We are also seeing increased interest in methanol, which can be carbon-neutral if produced from renewable sources, and the technology for its use already exists. There is also growing interest in ammonia, a carbon-free fuel, which, however, poses several safety issues due to its increased toxicity. Ammonia engines are expected to be ready for installation on ships around 2025. In the past four years, shipping has not shown significant steps to improve emissions, as it has already improved significantly since 2008, having reached the limits of improvement that can be achieved without new technologies and alternative fuels. In the coming 3-4 years, some additional steps are expected to be taken with regard to operational optimization and application of energy efficiency technologies in the existing fleet, as well as the first applications of new fuels by the “pioneers.” By the year 2030, we expect more expanded use of alternative fuels -initially LNG and biofuels- as we will be expecting the evolution of technology and solutions that will lead shipping to the ultimate goal of zero emissions by 2050. An enhanced time management of a ship, by reducing port waiting time, can increase the transport work that the ship performs during the year, thus reducing the intensity of CO2 emissions.

SHIPPING 2022

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MEASURES TO REDUCE CARBON EMISSIONS There are three fundamental parameters that can lead to ship decarbonization: regulations and policies, access to investors and funds, and the expectations of cargo owners and consumers

Loizos Isaias, PhD Head of Maritime Service Centre Region South East Europe, M. East & Africa

SHIPPING 2022

t the threshold of 2023, shipping -and shipowners in particular- continue to struggle in the face of the great challenge of decarbonization. The global shipping market is working hard in this direction, but in order to zero the carbon curve, there are still many issues that need to be addressed. The effects of the implementation of the IMO’s GHG strategy and the forthcoming European Commission's “Fit for 55” package on the design and operation of ships are already visible. There are three fundamental parameters that can lead to the decarbonization of ships: regulations and policies, access to investors and funds, and the expectations of cargo owners and consumers. DNV's “Maritime Forecast to 2050” study shows that access to finance will increasingly depend on achieving decarbonization targets over ships’ life cycle. So far, twenty-seven (27) banks, collectively translating to $185 billion in maritime financing, have joined the Poseidon Principles. The “Sea Cargo Charter” is also expected to step up its CO2 reduction requirements in addition to IMO targets. Newly built ships, ordered and delivered in recent years, are implementing various measures to reduce and/or eliminate carbon emissions, such as optimizing hull lines and using more efficient engines and propulsion systems to meet new regulations and the environmental expectations by shipping and other stakeholders. Compliance of newly built and existing ships A direct challenge facing existing ships is to comply with CII (Carbon Intensity Indicator) regulations. About 40% of the world's existing tankers and bulk

carriers will need to take decarbonization measures by 2023 (a rate that is expected to rise to 50% by 2026 should no compliance measures are taken). Conditions for container ships are even more critical, as approximately 55% of the global fleet must start implementing carbon reduction measures by 2023 (70% in 2026 without compliance measures). In the context of compliance by newly built and existing vessels, measures must be taken to reduce and/or eliminate carbon emissions, which may drive CII down:  Speed reduction and other operational measures: >20%  Improvement in ship hydrodynamic characteristics (cleaning and painting of hull, hull line optimization, etc.): 5% -15%  Enhancing engine and auxiliary machine performance, application of waste heat recovery, engine de-rating, use of batteries, etc.: 5% -20%  Use of alternative fuels (LNG, LPG, ammonia, etc.): 0% -100% For instance, should the above measures be applied to a capesize freighter that is about 10 years old and with a current rating of D (a rating of C is required for compliance), its capabilities and compliance path can be seen in the graphs table 1. This ship in question, even with the application of the technical and operational measures shown in the graph (excluding speed reduction beyond the

New ships currently being ordered should be designed to allow fuel upgrade or change during their lifetime.

Engine Power Limitation [EPL]), during the years 2022 and 2023, will not be able to maintain its compliance with the CII until the expected end of its service life. This means that additional mitigation measures will have to be implemented in accordance with the CII regulations. In order for the ship to remain in compliance until 2030, further measures are recommended during its third tanking in 2027. Implementation of these measures will mean that the ship will be able to remain in compliance until 2030. The role of fuel and new orders While the industry continues its development and implementation work on new decarbonization technologies, fuel -in the long run- will be the most important factor in achieving the shipping sector’s goals. The trend towards alternative fuels has recently intensified, especially following the finalization and implementation of the IGF code for LNG. A look at latest data reveals that an interesting development in 2021 was the number of orders of ships equipped with alternative fuel systems. DNV's Alternative Fuel Insight (AFI) platform has been monitoring this trend closely over the past few years. Alternative fuel vessels accounted for 17% of the total number of ships ordered in 2021, and over 36% based on gross tonnage, which shows the growing trend of using alternative fuels on larger vessels. Specifically, in 2021 the number of ships running on alternative fuels rose to more than 240 ships that can be LNG-powered, 48 LPG ships, 22 methanol ships and 4 hydrogen vessels, as shown in the table 2. Orders for LNG-powered ships contin-

n 1. The different measures and time of implementation needed for selected compliance strategy Measures to be implemented

Operational

CO2 ep. reduction potential (%)

Machinery and hydrodynamics

2.9

2020

2023

•W eather routing

• I mproved auxiliary engine load •A uxiliary systems optimization • PMI VIT

Σ ~ 11%

• EPL

Σ ~ 7.24%

2024 2025

2026

2027

2.7

2021

2022

•A utopilot optimization and usage •P ont optimization • T rim and draft optimization

3nd Dry Docking

2nd Dry Docking

3.1

Carbon Intensity (gCO2/dwt-nm)

Year

E D C B A

2.5 2.3 2.1 1.9 1.7 1.5

2020

• EconCam

2021

2022

2023

2024

2025

2026

RATING BOUNDARY

Σ ~ 5.51%

2027

2028

2029

2030

EXAMPLE VESSEL

n 2. Alternative fuels and technologies Number of ships (in operation and ordered)

Scrubber

2020.01.01

2021.01.01

2022.01.01

3.867

4,572

4,690

LNG (excluding LNG carriers)

308

414

654

LNG ready

141

146

210

Battery*

387*

497*

559*

Methanol

Hydrogen

LPG

* Note on batteries: 1. Covers both fully electric and hybrid ships. 2. T he figures are considered to be a minimal indication; the actual number is probably higher, as available data from battery manufacturers are incomplete. 3. B atteries can be an option in cases of special ships involved in specific routes and functions, such as ferries and passenger ships on coastal and shortsea routes, etc.

ued their upward trend in 2022, with 70 new ships ordered by April 1. LNG-enabled container carriers alone currently make up a quarter of the industry's total orders, with the majority entering the market in 2023 and 2024. The growth in the number of larger ships operating on alternative fuels will help create demand for construction and expansion of the required refueling infrastructure in major ports. DNV’s AFI currently lists more than 110 LNG refueling stations in operation worldwide, with another 60 confirmed for construction and a further 50 under discussion. It is expected that by 2030, the share of LNG as fuel will be moving higher until a likely tightening of regulations in 2030 or later. Bio-MGO, e-MGO, bio-LNG and e-LNG may evolve into additional

alternative fuels for existing vessels. By 2050, e-ammonia, blue ammonia and bio-methanol are forecast to claim a share of the fuel market, and in the long run are considered to be the most promising of green fuels. Flexibility in fuel use For newly built ships, flexibility in fuel use is a key tool in dealing with the uncertain future of shipping decarbonization. New ships currently being ordered should be designed to allow for upgrading or refueling during their lifetime. DNV has issued various class notations covering the capability for future ship upgrade or fuel change, including the “Fuel Ready” notation for ammonia, methanol, etc. These notations undoubtedly add value

to these ships. Achieving decarbonization is currently the great challenge of shipping and is everyone's responsibility. Cooperation is required between all parties involved in shipping, but also beyond. To achieve this goal, the industry needs support in order to push for the development of green fuel production, building storage and refueling infrastructure, as well as generating zero-carbon electricity. The road to greener shipping is long and tough, and a broad consensus is needed to resolve the issues facing the industry. Our ultimate goal can be attained by the development and application of appropriate technology, implementation of effective operational measures and adoption of fuel flexibility, we can reach the ultimate goal.

Up to 55% of the global container carrier fleet should start taking carbon reduction measures by 2023 (70% in 2026 without compliance measures).

SHIPPING 2022

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SHIPPING ON THE ROAD TO 2030 We are going through a decade of major changes, with the main concern being the maturation of the regulatory framework and the technological solutions so that decarbonization designs are put into practice

T Theodosis Stamatellos Director South Europe Region for Lloyd’s Register

SHIPPING 2022

he messages received from the planet are clear: We need a cleaner environment, and we ought to offer our children the right to a healthy and sustainable future. Therefore, for the world economy and society, the green transition is a oneway option, and shipping can certainly contribute to the international efforts to reduce environmental pollutants. The realization of the interconnection of environment and sustainability is constantly gaining ground in recent years, pushing shipping on a decarbonization path, with a series of regulatory, social and technological initiatives, that aim in the long run to its complete detachment from coal. Already since 2018, when the International Maritime Organization (IMO) set a goal to reduce greenhouse gas emissions by 50% by 2050, and carbon dioxide emissions by 40% by 2030, against 2008 levels, the shipping industry went through a period of continuous transformation and adaptation to new and future environmental requirements. The first steps were taken in the form of regulatory action, requiring modern fleets and newly built ships to check their environmental footprint, through the application of complex calculations and holistic methods that assess whether they are environmentally friendly. This is one of the current challenges of shipping, putting ships on a compliance alert in view of 2023, which is also the starting point of the regulation. At the same time, by following the technological developments preparing the ground for the use of alternative fuels of zero pollutants by ships, such as ammonia, hydrogen, etc., there is an increasing

Shipping is adapting to decarbonization requirements, putting its forces at the disposal of science and technology.

participation of shipping companies in joint technology development programs (JIP/JDP), actively contributing to the timely preparation of the industry for its transition to green fuels.

Building new ships Despite a climate of uncertainty about the adequacy and supply of these fuels, fuel-ready ships are already being built and are gradually being put into operation using alternative fuels. Recently, it was announced the delivery of the first VLCC tanker in 2025 to the company AET that will use green ammonia for propulsion, within the Castor Initiative, which includes the Lloyd's Register (LR) and Samsung Heavy Industries (SHI) . Progress has also been made in the field of biofuels, with several shipping companies participating in biomass fuel blend testing programs, monitoring their environmental performance, engine behavior and ship safety conditions. It is therefore clear that shipping is adapting to the requirements for decarbonization, putting its forces at the disposal of science and technology to make this transition feasible from a technological point of view. Additionally, there are many cases where shipping is moving faster than regulations, with many initiatives coming from the private sector and the wider shipping community, encouraging the acceleration of the energy transition. It is essentially an “intangible” adaptation to the cultivation of green culture.

The ESG principles One such case is the adoption of ESG (Environmental, Social, and Corporate Governance) principles by the major companies in the industry, and the interconnection of decarbonization with the environmental component, with the Poseidon Principles as its central axis. This is a widespread evaluation framework for shipping companies, which took shape in 2019, incorporating the International Maritime Organization strategy for climate change in the process of investing in the construction of ships by international financial institutions. We are therefore seeing more and more shipping companies -in the context of the ESG strategy they are developing- setting more stringent environmental targets for the operation of their fleets, so that they can be more attractive and gain greater access to funding packages. In the same vein, voluntary initiatives focusing on shipping decarbonization and contributing to a faster achievement of IMO goals, such as the Getting to Zero Coalition, are becoming more and more entrenched with the participation of a variety of shipping companies, including several of Greek interests. Issues such as the future training needs of crews in the context of energy security are emerging and seeking answers. The year 2030 has been set as a milestone not only because of the IMO's medium-term goal of reducing emissions by 70%, but also for the emergence of commercially viable zero-emission vessels to meet the long-term goal of 2050. So we are inevitably going through a decade of major changes, with the main concern being the maturation of the regulatory framework and the technological

solutions so that decarbonization designs are put into practice. The supply chain The LR study “It's time: how to make shipping's decade of action a reality,” published in September 2021 as part of the celebration of the London International Shipping Week, underlines the crucial role of preparing the supply chain for ships powered by alternative fuels. It has been realized that during the green transition, there will be an energy mix of alternative fuels. What started in recent years is now considered necessary with the partnership of all stakeholders in the supply chain: manufacturers, designers, shipyards, ports

and companies, to enhance the readiness of any solution, from a technological, commercial and social point of view. The Lloyd’s Register Maritime Decarbonisation Hub, an initiative by the LR and LR Foundation, seeks to provide answers through an assessment system of the maturity of each solution, gathering data and involving representatives from all stages of the chain. At the same time, the maturation of Questions seeking answers include the future training needs of crews in the context of energy security.

suitable and commercially viable alternative fuels is expected to clarify the landscape in terms of regulatory requirements, as well as to put under individual collective effort the individual national and regional initiatives. This will provide shipowners with an extra incentive to renew their fleets with ships using zero emissions fuels. Finally, special mention should be made of the contribution of digital technology, which facilitates strategic decision-making and implementation of environmental efficiency improvement initiatives by analyzing complex data. Such digital applications and solutions are expected to multiply in the current decade.

The year 2030 has been set as a milestone both for the IMO's medium-term goal to reduce emissions by 70%, and the emergence of commercially viable zeroemission vessels to meet the long-term goal of 2050.

SHIPPING 2022

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A DIFFERENT POSEIDONIA Since 2018, when the Poseidonia Exhibition was last hosted due to the pandemic, an unprecedented tsunami of political, environmental and geopolitical developments has altered our daily life and way of thinking. Everything is completely different!

Dr. Evangelos Kyriazopoulos General Secretary of Ports, Port Policy & Maritime Investments Ministry of Maritime Affairs and Insular Policy

SHIPPING 2022

t this year's meeting at the Poseidonia Exhibition, we discuss a number of critical issues, including: commitments and obligations arising from the new global economic war we are currently experiencing; the radical overhaul of supply chains and e-commerce, which abruptly expanded during the pandemic; intelligent shipping;, the anxious evolution of the shipbuilding and ship repair industries; and, the emerging pivotal role of ports at both operational and energy levels. Most of the world's major classification societies gather to discuss, inter alia, ways to cut greenhouse gas emissions, with the IMO target for gradual decarbonization of shipping, to be implemented on all ships as of 1/1/2023, the calculation of the Energy Efficiency Existing Ship Index (EEXI) and the introduction of an annual operational Carbon Intensity Indicator (CII). IMO deadlines for 2030 (-40% of CO2 emissions compared to 2008) and 2050 for zero emissions may seem far away, but the fact remains that ships built today will have to meet energy standards that will apply 20 years later. This remains the question for which the global shipping community has been hesitant in recent years to find an answer: what marine fuel or what marine fuel mix will prevail in the market? Thus, standards and guidelines are already being prepared for marine fuels based on ammonia and methanol, while hydrogen or the so-called blended or drop-in fuels are also expected to be available soon. The Poseidonia Exhibition seems to be an ideal opportunity to meet and align all parties involved so as to shape a shared perception and position on the obligations that will soon come into force.

Ships being built today will have to meet the energy standards that will apply in 20 years from now.

A similarly large debate has been under way since last summer in the context of the "Fit for 55" legislative package introduced by the European Commission, regarding the infrastructure of alternative fuels that will be supplied to

ships in ports. While mandatory 2030 targets for onshore electricity supply are already being proposed in the 25 Greek ports belonging to the trans-European transport network, the respective national policy frameworks to be drawn up should specify, as of 2025, the national planning for the entire alternative fuel infrastructure that they will have by 2030. Such planning should start as soon as possible, as it is more complex compared to European and American ports, given that the large number of Greek ports are tightly connected, at spatial level, with the urban network. Multilevel developments are constantly taking place. A few months ago, the European Commission introduced new European transport corridors in the context of the revision of the relevant Regulation Proposal since 2013. With the new plans, in coming years, two new transport corridors to both the Western Balkans and the Baltic countries will provide new opportunities and destinations for the national port system and the transport of goods by sea. Growth plans for the main Greek ports of Piraeus and Thessaloniki are being implemented seamlessly, raising the bar in the role they play as the main transit hubs of SE Europe. Tenders in most of the country’s major ports are progressing rapidly, and

by the end of the year the first results are expected to be announced. In addition, the effort to configure the parameters for the overall reorganization of the port management system is underway, an issue that concerns the whole port community and will explicitly affect the competitiveness and efficiency of our ports through its implementation. Every passing day, the fragmented approach to transport is proving to be a wrong practice. Ships, no matter how expensive or technologically advanced they are, are directly connected even to the motorbike that delivers the goods to the end consumer. All links in the supply chain (production, storage, transportation, retail, distribution, etc.) must communicate and cooperated with each other. As theoretical as this position may sound, in practice it is very substantial and already emerging as a trend, with some companies undertaking to fully manage their supply chains on their own. To prevent loosing ground in terms of traffic -either as result of competition with other means of transport or by a shortage of the goods themselves- ports and ships must not only become more competitive, but also more necessary and flexible in the ongoing process of redesigning supply chains. In addition, the targeting of ships by the decarbonization policy of the world economy, also makes shipping activity conditions even tougher - but not impossible for the Greek shipping community. In every major historical change in the operation of trade (e.g. the transition from sailing to steam, world wars, crashes, oil crises, etc.), the Greek naval demon was always able, through careful steps, to stand on its feet and find its own way. So, it is more than certain it will do it again!

Liberian Registry: Proudly Serving Greek Shipping since 1948 Greece remains the undisputed number one shipping nation in the world, and Liberia remains the number one flag of choice for Greek shipowners

ADVERTORIAL

ith more than 5,062 registered vessels, aggregating more than 220 million gross tons, or 14% of the world fleet and average fleet age of 13 years, the Liberian Registry is the largest quality registry worldwide. In addition, Liberia has been the preferred flag of choice for Greek shipowners, according to the Greek Shipping Co-operation Committee of London, accounting for 25.3% of DWT of the Greek controlled fleet, as published in March 2022. Current statistics on the Greek fleet as of April 2022, show that 1,450 Liberian flagged vessels are controlled by Greek shipowners. This news is testament to the strong links which have existed between Greek shipping and the Liberian flag, dating back to 1949, when the Stavros Niarchos-owned oil Dr. Michalis tanker World Peace Pantazopoulos, became the first ship Senior Vice to be registered under President & the Liberian flag. From General Manager that modest early of the Liberian operation, until the International present day, the Greek Ship & Corporate shipping community Registry’s (LISCR) has supported the Piraeus office, Liberian Registry, and managers of the vice-versa, through Liberian Registry good times and challenging times. In fact, this relationship has grown even stronger during hard and challenging times, when shipowners and operators have looked to their ship registries for innovative solutions to help maintain efficiency and profitability, and it has always been close and mutually respected, founded on trust, solidarity, commitment, credibility and responsibility. The Liberian Registry was established with major assistance by Greek shipowners back in 1948. Greece remains the undisputed number one shipping nation in the world, and Liberia remains the number one

flag of choice for Greek shipowners. Liberia has contributed to the quality growth of Greek shipping, which is testament to the spirit of trust, respect and partnership existing between the Greek ship-owning community and the Liberian Registry. That has been attributed to the unparalleled, non-bureaucratic services both locally in Greece and globally, as well as the Registry’s investment in industry-leading technology, and cost-saving advantages that come from using the Liberian Registry. This relationship and spirit of partnership was critical as the attained Maritime Transportation agreement between China and Liberia that has among other benefits reduced the Chinese tonnage port dues by 28% for the Liberian flag vessels calling Chinese ports, was driven by the urge, and the advocating desire of the Greek shipowners. Our motto “All Services Locally” has received acceptance, recognition, and appreciation by the Greek shipping community. Our capability to offer all services locally in Piraeus and worldwide, saves time as well

as money for the shipowners. Our approach to Greek shipping is simple, based on hard work, consistency, responsibility, credibility, immediate response and service around the clock. Our aim is to find solutions to better support both vessels and operators. As the Liberian Registry celebrates its 74th anniversary of operation in the internationally competitive shipping industry, where longevity is a badge of honor awarded only to businesses that are in it for the long haul, and survive because of the quality of services they provide, we feel honored to be part of the Greek Shipping community. Our gratitude and commitment to the Greek shipping community has been the ground we have been founded on since 1948, and that’s why we continue to honor Greek shipping more than ever today.

M/V GREEN K -MAX 4: State-of-the-art Bulk Carrier of 80,8911 DWT managed by Aegean Eco Carriers S.A., built by COSCO Shipping Heavy Industries (Zhoushan), People’s Republic of China, proudly registered with the Liberian Flag Administration.

SHIPPING 2022

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BUSINESS IN PIRAEUS: “THE FULL PACKAGE” The Piraeus Chamber of Commerce & Industry firmly believes that entrepreneurship in Piraeus’ major port area boasts “the full package” to support Greek and world shipping

T Vassilis Korkidis President, Piraeus chamber of commerce and industry

SHIPPING 2022

he development and prosperity of the Port of Piraeus has been and still is a common goal of the productive classes of the port area but also the users of its port facilities. It has become clear to everyone that an increase in cargo handling not only benefits COSCO's investors, but all stakeholders, including productive and economic operators, port workers and of course their families. Capitalizing on its favourable geopolitical position, Piraeus, as a key hub in the "Belt and Road" economic initiative, known as the new Silk Road, facilitates China's communication with the West and, above all, with the European Union. However, today the Port of Piraeus is called upon to deal with a special situation that prevails in global logistics, intensifying the struggle between Mediterranean ports competing to win cargo, in addition to gaining container companies’ good reviews, thus promoting their good image. Notably, the Port of Piraeus, in 2019 climbed for the first time to the top position in the Mediterranean in terms of container traffic. However, traffic loads have been constantly decreasing since 2020, meaning that our common interest, as I mentioned above, is harmed. What is certain is that Piraeus lost the lead not because of our choices, but because of a series of events, e.g cancellation of sailing due to adverse weather conditions, capacity problems in the port’s container storage areas, and several labour strikes, which unfortunately continued to be staged in 2022. The risk of further harming the port's competitiveness has not been eliminated. And this is not going to happen unless labour peace is achieved, as this is a prerequisite by shipping companies when considering their preferred ports. The quality of services provided to the port’s international and domestic customers is certainly associated with the customer-cen-

tric policy pursued by the port, as well as its investment plans, and a series of parameters related to combined transport, currently exploited by Piraeus competitors. Even though exhaustive discussions have been held about the Piraeus Port “master plan,” investments are currently pending, even though they are designed to enhance the port’s competitiveness. Currently, Piraeus Port is not equipped with the “weapons” it needs to deal with supply chain troubles affecting port traffic. Certainly, investments respecting the environmental requirements must be made in the commercial port but also in the cruise wing. And, of course, we should eliminate bureaucratic and other procedures. However, the productive classes of Piraeus maintain their optimism for a dynamic recovery/resumption of traffic in the second half of the year, while hoping that “the port’s wealth spreads to the city, not vice versa,” in order to have a greater impact on the local and national economy, as well as on trade and logistics, employment and shipbuilding, but also to improve the quality of life of Piraeus’ population. A port alone can not “win the world”. We need to look at quality and other features to allow interaction between the port, the city productive classes, and shipping. Singapore rated Piraeus in top place in the category “Shipping,” while Shanghai was rated top in “Ports & Logistics.” Piraeus lost some ground in “Maritime Finance & Law.” I will never tire of pointing out that we must not overlook the fact that Piraeus is the heart of Europe and the world’s strong-

The port of Piraeus is currently called upon to manage the special conditions prevailing in the global supply chain.

est shipping. Business activities with good prospects in Piraeus include a multitude of fields, including transports, energy, logistics, supply chain, financing, value added services, construction, ship repairs, assembly, and legal, insurance and reinsurance services for shipping. More than 1,200 large shipping companies are based in Greece, the majority of which in Piraeus, providing direct employment to 10,000 employees. Also, there is a significant number of companies related to shipping, based in Piraeus. Such businesses include shipping registers, financial institutions, law firms, financial advisory companies, and marine insurance companies covering the shipping risks undertaken by the Greekowned fleet. It is estimated that approximately 200,000 people are employed Greece’s shipping sector. Piraeus can also excel in the field of combined transport, as the port has adequate railway infrastructure, provided that the required upgrading work of the PATHE railway will be completed soon. We must not forget that cargo unloaded in Piraeus can reach European distribution hubs in just three days, compared to the much more time required for the voyage from Suez to the ports of Northern Europe. This crucial consideration -especially following the recent hikes in transit costs as a result of higher energy prices and a crisis in logistics- must be strongly outlined and communicated by both the port operator, PPA S.A., and all other stakeholders, so that the port may regains losses or even claim an even higher share of in transit traffic. The Piraeus Chamber of Commerce and Industry firmly believes that entrepreneurship in the large port area offers “the full package” to support Greek and world shipping. So Piraeus may grow stronger the day after the energy crisis, and play a key role in European trade.

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INVESTING IN PORT INFRASTRUCTURE One hundred years after the founding of the IMU in Greece, its members, the companies they represent, and the entire supply chain are forced to operate in a new mix of adverse circumstances

T Antonis Venieris President, International Maritime Union

he International Maritime Union (IMU) was founded in 1922, recording to this day a dynamic course, with a continuous and fruitful presence in the maritime arena. The Union’s establishment was dictated by the need to contribute to dealing with the great problems facing Piraeus at the time, given that the port had no berths for ship docking and port facilities were in a primitive state. Such conditions were of concern to anyone, and Piraeus was a “port to avoid” for Greek and foreign ships. The IMU drafted and submitted a comprehensive bill to the then Prime Minister of Greece, Eleftherios Venizelos, on the establishment of the Piraeus Port Authority, which was enthusiastically accepted and led to the establishment of the PPA under law 4748/1930. In 1941, during the tough years of Greece’s German Occupation, the activities of IMU members collapsed. The Union was at its most crucial point in its history. “History will blame us if we dispel a 20year history and instead of rallying, we intensify the dissolution…” With these meaningful words, the then IMU president Eugenios Eugenidis opposed any thought of dissolving the IMU, and agreed to allow the Union go on with voluntary participation with regard to members' fees. In 1968, the IMU submitted an urgent study to the PPA administration on the need for immediate preparation and equipment for the management of the new mode of cargo transportation - containers. In spite of PPA’s reactions, through IMU insistence, a space for containers was developed, initially in Akti Vassiliadis and later in Neo Ikonio. Thus, Piraeus’ traffic numbers skyrocketed from 5,000 TEUs in 1969 to 5.0 million TEUs in 2021. In the 1990s, IMU succeeded in increasing the procurement of new

PPA cranes from 2 to 4 (to meet the already increased traffic), while it pioneered the Organization's computerization process, as well as further development of the Car Terminal. It also explicitly supported the port’s privatization at the end of 2010, as it foresaw the increased dynamics that Greece would acquire through the privatization of port operations. Notably, the IMU is a member of FONASBA (Federation of National Associations of Ship Brokers and Agents), and has submitted an official proposal for the organization of the world conference of FONASBA in 2024 in Greece, which will attract the attention the international shipping community in our country. One hundred years after the establishment of IMU, the environment in which its members, the companies they represent, as well as the entire supply chain are forced to operate is a new mix of adverse circumstances: The Covid-19 pandemic; a sharp increase in demand for consumer goods worldwide; lack in containers, ships of all types and available space; blockades of key waterways due to accident (Suez Canal); unprecedented increase in freight rates; lack of workforce due to overcrowding and labor action; rising energy costs (oil and derivatives, gas, electricity); global inflation; and, an armed conflict with a looming food crisis on Europe’s borders. The global supply chain has in the past gone through one or two periods of adverse conditions such as those mentioned above, but never all together at the same time. The continued pressure the transport and goods distribution sectors have been subjected to over the past two years was many times higher than the theoretical breaking point, which would logically lead to the collapse of the global transport web. Such a collapse, however, has so far been

averted, as mathematical models cannot quantify the human ingenuity, perseverance, dedication and adaptability exhibited daily by all those involved in transport and port infrastructure operations, irrespective of position or office. Signs for 2022 so far are not very encouraging. Globally, the consistency rate of arrivals of container ships in ports in 2021 was below 40%, meaning that most cargo arrived or departed with a significant delay, in turn creating a chain effect on the production industry and the operational capacity of ports - which operate continuously under conditions of saturation of available container storage space and difficulties in work planning. An obvious lesson from the conditions we are all experiencing is that the future success of Greek ports need nothing else than smooth growth investments. Such investments must be completed on time, away from bureaucratic entanglements and petty politics that run against the domestic economy’ future. Direct competitors to Greek ports continue their investment plans smoothly, aiming at the transit cargo currently moving mainly from Piraeus. A potential drop in Piraeus cargo traffic will automatically reduce the number of direct approaches by mother vessels. It will also end the good rates currently enjoyed by Greek importers and exporters. Even though Greece's geostrategic position is great, this fact alone cannot guarantee a prosperous future for the local shipping industry. Conditions It is now dictated by the prevailing conditions to give weight and priority to the port growth plan and upgrading port facilities. That is the only way to reassure potential investors in other regional ports that Greece offers a stable investment environment, worth of attracting capital and enhancing the entire economy.

SHIPPING 2022

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LINKING & DEVELOPING GREEK PORTS In the new, dynamically developing landscape, the role of the Hellenic Ports Association is now more important than ever as a result of further enhancing the already existing strong ties between Greece’s Port Organizations

T Angelos Karakostas President, Hellenic Ports Association

SHIPPING 2022

he Hellenic Ports Association (ELIME) acts as a link between Greece’s 13 Port Organizations and the 10 most important Port Funds, in terms of activity. In recent years, two Port Organizations, Piraeus and Thessaloniki, have come under the control of international investors and investment schemes, with companies that are also listed on the Hellenic Exchanges. Another four Port Organizations, in Alexandroupolis, Kavala, Igoumenitsa and Heraklion, are currently taking steps toward privatization. At the same time, the Association is expanding to include the Municipal Port Funds of Ios, (representing both Ios and Anafi), Folegandros and Sikinos, as well as some other Port Funds that have shown keen interest. ELIME participates in all important domestic and international events and exhibitions, effectively promoting members’ views and positions. The Association is the State’s main advisor in matters of port policy. In addition, it participates in parliamentary consultations on all port issues, making proposals and in-depth suggestions, while it represents the country in the European Sea Ports Organization (ESPO), having a leading role. Recently, following the end of pandemic restrictions, ELIME multiplied its activity and accelerated its pace, while raising its recognition as a link, of an undoubtedly positive contribution to developments in the wider shipping industry. In the current tough conditions prevailing internationally, the Association is actively involved in shaping developments in port affairs, with a multilevel presence and interventions. The great challenges, of course, include the war in Ukraine and its consequences, with the management of

the crisis inevitably affecting Greek ports, and the finalization of health protocols for the pandemic this year. ELIME works closely with the Ministry of Shipping and Island Policy, and several other ministries and agencies on these two very serious issues. However, apart from the major challenges facing our country as a whole, i.e. the war in Ukraine and the pandemic, Greek ports are on a path of dynamic transformation to face another three very important challenges: firstly, the green transition with the use of renewable and other clean energy sources; secondly, promotion and completion of the digital transition; and, thirdly, upgrading and modernization of port infrastructure and port services at the level that Greece deserves to be: a leading force in the global shipping industry. Particularly in green transition, there are major legislative initiatives at both European and national levels with extremely ambitious goals. ELIME and its members are actively participating in the consultation for the adoption of a new Regulation of the European Union for the development of alternative fuel infrastructure, in the framework of the “Fit for 55” initiative, concerning the reduction of greenhouse gas emissions by 55% by 2030. A new Regulation is being formulated, planned by the European Commission to be passed within 2022. The current draft Regulation provides, inter alia, for the supply of electricity to 90% of ships over 5,000 tonnes at each port, after a two-hour stay at its facilities, with a deadline

ELIME participates in all important domestic and international events and exhibitions, effectively promoting members’ views and positions.

of 2030, even though there are voices calling for an earlier implementation date for smaller ships. It also stipulates the construction of LNG fuel supply facilities by 2025 for the service of dual fuel ships and, in this general context, facilities on floating FSRU platforms and other related projects. As it is understood, the level of investment required is very significant, so that in principle it is possible to supply this large amount of electricity to the ports, both in the transmission of electricity to the port facilities and to the port infrastructure itself. Indicatively, in the port of Piraeus, the country’s largest, power must be supplied simultaneously to 11 container ships, 8 cruisers and 24 passenger ships, which means that a high value investment is required just for the port's connection to the grid. Thessaloniki, Patra, Heraklion and other ports within the urban fabric have similar needs. Such necessary investments will require significant state aid in the field of networks and substantial funds that will result in a higher cost of providing port services. At the same time, in all ELIME member ports, investments are being launched in the field of digital transition and on-going upgrades of infrastructure, utilizing both own resources and EU, national and other funds, always based on regulation provisions and laws. Finally, signs for the field of cruising in 2022 are very optimistic, as confirmed by traffic numbers in the first four months of the year. According to ELIME data, bookings so far record an increase by 25% in total for Greek ports, with emphasis on homeporting, the leading source of growth for the Greek cruise and tourism. Greek ports work in accordance to plans and strategies, presenting tangible results for Greek economic growth and job creation.

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A DIVERSE, EQUITABLE SHIPPING Being already engaged in shipping, we want to bring more women to the sea. We need to understand the problems they face when working on board so that the necessary steps can be taken to resolve them

T Elpi Petraki Operations, Chartering & Business Development Manager, ENEA MANAGEMENT INC. President, WISTA Hellas Vice President B’, Association of Short Ship Shipowners

his year, the IMO celebrated for the first time the International Day of Women in Shipping, on May 18, with the main theme “Training - Visibility - Recognition: Supporting a barrier-free working environment.” As President of WISTA Hellas and member of the international family of WISTA International, with a presence in 55 countries around the world, I feel proud and content of our organization’s 48 years of significant contribution to embracing and supporting women working in every field of shipping. In 2018, the IMO approved a request by WISTA International to be granted the “consultative status,” which helps WISTA promote diversity, professional inclusion and women empowerment. In fact, in January 2020, a Memorandum of Cooperation was signed between the IMO and WISTA International, with the aim of technical cooperation and continuous promotion of diversity through enhanced and coordinated actions in shipping. As part of such cooperation, the International Women's Day in Shipping was established with the aim of emphasizing the need to further recognize the contribution of women in the shipping sector, and be more extensively represented in decisionmaking and positions of responsibility. This course is certainly significant, but I think we could objectively consider it a complete success only when the barriers faced by women in the shipping work environment are actually removed. There is no reason to focus on differences, either natural or due to prejudices, between the two sexes. I now believe that this debate is simply a waste of time, ending at an invisible but

enduring struggle for supremacy, ultimately with neither winners nor losers. It should be emphasized that the elimination of gender inequality is not assessed by measuring the increase of the quota of women in various professions, but by evaluating the constructive cooperation between the sexes for the empowerment of women, and the recognition that they possess the skills and experience to lead effectively, make critical decisions, and meet any challenge at any level. After all, the rate of women in various professional fields has increased significantly, but women are still under-represented, especially in senior management positions, technology and research, as well as at sea. In particular, for the maritime service, no one can deny that women do face several issues, even though the nature of the profession itself has changed for the better. Being already engaged in shipping, we want to bring more women to the sea. It is a new professional choice with interesting everyday life and attractive prospects. But in order to attract them, we must first ourselves understand the problems that women face when working on a ship, so that the necessary steps can be taken to resolve them, allowing seafaring women Eliminating gender inequality is not assessed by measuring the increase in the quota of women in various professions, but rather by assessing constructive cooperation between the sexes.

feel safe and happy at work. Another way we can help remove barriers is through education and access to training programs, and through the publication of good practices and examples of women sharing their knowledge and experience with others. Being an example is very important, it is a practical proof that what we teach or support can be done and bear fruit. During the POSEIDONIA 2022 week, WISTA Hellas organizes a discussion panel on “Women at Sea,” precisely because it wants to widely communicate the views and experiences of both women working on ships, and company executives supporting crews. However, raising public awareness is only the first step, as the development and adoption of diversity and inclusion policies must be of concern to companies, employees and governments throughout the year. I firmly believe that only when we all work together and exchange our experiences, we can bring about changes in entrenched misconceptions, encourage others to take the next crucial step in their careers, and create a more supportive, diverse and inclusive shipping.

SHIPPING 2022

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PRIORITY IN TRANSPARENCY The limited process of assurance practices highlights the need for ports to take action to combat corruption and enhance their operational integrity

O Thanos Pallis * Professor, Department of Maritime Studies, University of Piraeus; President, International Association of Maritime Economists.

Evi Kladaki * Research fellow of the Department of Shipping and Business Services, University of the Aegean. * Both are members of a research team for the creation of the Global Platform for Port Reliability.

SHIPPING 2022

ne of the major challenges facing shipping around the world is tackling corruption that may occur during the approach and mooring of ships in ports, or while conducting transactions to complete the transport process or ship inspection. The growth in maritime trade and the development of maritime transport systems are aggravating problems, with the shipping industry taking initiatives to address them. The Maritime Anti-Corruption Network (MACN), set up through collective action, in 2022 celebrates if 10th anniversary. Today, more than 60% of global shipping, including pioneers in this field of Greek companies, a significant number of P&I Clubs, shipping agents and companies active in maritime transport. Important actions in tackling corruption include the “say no to corruption” strategy, which includes specific practices for ship crews, onshore crews and mutual information on how to deal with incidents. Initiatives are also quite successful in countries where corruption is rampant (Egypt, Argentina, India, Indonesia, Nigeria), with significant results.

Global Platform for Port Integrity The Global Port Integrity Platform (GPIP) is regarded a pioneering collective action. The platform includes, firstly, the recording of corruption incidents in ports in a systematic way and, secondly, an analysis of the practices of the global port system and the bodies involved in dealing with the relevant incidents. Sea transport stakeholders share their experiences in an online system, which already contains more than 45,000 cases of corruption in 1,195 ports in 149 countries. The countries with the most reported cases are in East Asia and the Pacific, Middle East and North Africa. Overall, the incidents reported in these areas account for about 61% of all reported incidents. The international system for recording corruption has already been recognized by international organizations, such as the International Maritime Organization (IMO), the United Nations Development Program BIMCO and the International Chamber of Shipping (ICS). The data are used to improve corporate practices, better prepare for tackling

n Availability of integrity assurance practices in the global port system Port Authorities

Customs Authorities

Immigration Authorities & Services

Health Authorities

Adoption and full implementation of FAL Convention) *

10%

Implementation of anti-corruption policies

10%

17%

10%

36%

53%

28%

Implementation of a mechanism for anonymous corruption reporting Publication of customs clearance procedures and ship inspections in ports * Regards only Port Authorities

corruption and to intervene or provide data to governments and stakeholders to address issues. The anti-corruption shipping strategy extends to the systematic monitoring of the operational integrity of processes, corporate and business practices in ports. The focus is on port administrators, port service providers and the public or private bodies involved (ship inspections, customs, health checks, etc.). The rapid development of communication and information technologies and their gradual penetration in the supply chains help the relevant development. The related industries are now equipped with mechanisms and tools that are useful both for their operational efficiency and enhancing safety and transparency. With our research contribution and collection of relevant data over the past two years, the platform records and captures actions, policies and practices in ports around the world. In particular, the platform provides comparable port-by-port information on transparency mechanisms, corruption reporting policies, and analysis of the implementation stages of the IMO Convention on Facilitation of International Maritime Traffic (FAL Convention) in digitization and, consequently, transparency of transactions. The goal is, through regular updating, to dynamically record specific criteria and integrity indicators both by port and by geographical area. Providing a system for the evaluation of existing integrity practices and, consequently, the performance of each port, this platform works in addition to the corruption reporting

system, facilitating shipping companies in timely preparing for the next voyage. The results of the ongoing survey in more than 200 ports worldwide -and for a set of authorities operating inside and outside ports, related to freight (port authorities, customs authorities, sanitation services, etc.)- make it obvious that it remains necessary for ports to lay greater emphasis on transparency. Indicatively, only 10% of port authorities currently have a comprehensive anti-corruption policy. Even lower is the rate of port authorities having designed and implemented (anonymous) complaints systems, for reporting incidents of corruption (Table 1). The Incident Reporting System and the Global Platform for Port Integrity contribute in practice to upgrading maritime transport through improved corporate practices, internal control standards, corruption management and compliance with relevant regulations. At the same time, the creation of open channels of communication within the shipping industry, both between ports, authorities and governments and between other stakeholders, encourages dialogue on the integrity of the global shipping industry, offering a perspective for a shipping industry free of restrictions and corruption. It is a valuable system of joint action, combining the contribution of shipping with that of scientific knowledge, enhancing the operational environment and governance practices of the port industry, paving the way for a better and more sustainable future.

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SHORTSEA SHIPPING IN GREECE AND EUROPE The EU’s new strategic green transition policy is the golden opportunity for the shortsea shipping industry to modernize and renew its fleet, setting SSS at the center of developments

S Charalampos Simantonis President, Hellenic Shortsea Shipowners Association (HSSA)

hortsea Shipping (SSS) includes all European offshore maritime transport, including coastal, inland and offshore. It also includes all types of ship transport by sea or river, in each member state separately. Shortsea Shipping in Greece is represented by the Hellenic Shortsea Shipowners Association (HSSA), founded in 1940, originally representing Mediterranean shipping and currently numbering about 700 Greek-owned ships, active in maritime freight in Europe and the Black Sea, as well as neighboring countries, i.e. North African countries. The “Athens Declaration” was the basis for further development and implementation of Europe's maritime policy, emphasizing the environmental efficiency of shortsea vessels. With the help of the “Connecting Europe” program, it is possible to advance the shipping industry’s environmental efficiency, innovation and full development of maritime flows. Recognizing the importance of SSS, the EU has promoted shortsea and multimodal transport in an effort to reduce carbon footprint and carbon dioxide emissions, given that maritime transport enjoys much higher energy efficiency compared to other modes of transport, therefore emitting less carbon dioxide per tonne or per passenger. In Greece, shortsea shipping is highly important, taking into account that over 10% of the population live in island areas. Given the above, one can easily understand the social and economic contribution of SSS, both nationally and at European level, as 60% of intra-European maritime trade is carried out by SSS ships. Especially in Greece, shortsea shipping is the backbone of the maritime transport network, with approximately 75% of cargo transported by SSS ships. Even though one could, referring to the above data, consider that SSS in Greece is flourishing, the exact opposite is true. The critical issues facing shortsea shipping, in particular

purely shortsea ships under 3,000gt, have remained unresolved for decades, leading the industry to decline. Suffice it to say that in 2007, ships between 500gt and 3,000gt were about 700, while currently the number of corresponding capacity ships has dropped to only 60 Greek-flagged and 80 Greek-owned with foreign flag; at the same time, the fleet of Greek-owned ships over 3,000gt numbers about 600 ships, which could well be listed under the Greek register. An SSS ship operates in a completely anachronistic environment, while it has been proved to be the most expensive one, with the highest operating costs, not only compared to the European flags but also worldwide. Greece’s current legal environment and operation of domestic shipping are so outdated that ships daily face laws and regulations enacted in the 1950s, and there are certainly even older ones in force. These regulations referred to ship characteristics of other decades, to other ports, to other technologies and in general to another reality, which has already been left behind by developments. Unfortunately, the regulatory framework governing the shortsea shipping industry has not kept pace with the new reality, given the new technologies available to modern ships, and this is happening at a time when we are even talking about autonomous ships. In addition, the lack of financial tools creates additional problems and is a deterrent to the process of fleet upgrade and renewal. To create the conditions for the industry’s smooth transition, the HSSA launched the Europa Ship Plan, voted by the European Parliament, which was an EU lending program for the renewal and environmental upgrade of Greece’s SSS fleet. Unfortunately, owing to Greek shipyards’ inability to undertake the construction, in addition to difficulties in providing construction guarantees (refund guarantees), and the imposition of

VAT at a rate of 24% on shipbuilding repairs, prevented the implementation of the plan and the absorption of funding in Greece. The European Union's new strategic green transition policy is the golden opportunity for the shortsea shipping industry to upgrade and renew its fleet, setting SSS at the center of developments. Due to the size of SSS fleet, the shorter distances travelled and the existence of specific ports of loading and unloading, compared to seagoing shipping, the SSS fleet could potentially be the basis for the application of pilot technologies, especially in the case of Greece, due to its geographical location and the large number of islands it has, and, with the appropriate financial tools, proceed with upgrading the Greek fleet. For example, it is clearly more realistic for an SSS ship to invest in the use of electric batteries compared to a seagoing ship. If the government does not realize that it has to modernize the legal environment governing the shipping industry and harmonize with the new technological data, the renewal of the fleet will not be possible, at a time when the social and economic contribution of the SSS to the country's GDP is particularly important. Paradoxically, in the era of digitization, autonomous ships, and modern technologies, Greece’s legal framework still contains regulations and laws (even before Greece’s EU accession) which ignore the two basic principles, Fair Competition and Equitable Treatment of member states’ ships. An industry that has been historically pioneering, cannot enjoy prosperity and progress under such an institutional framework. Critical issues must be resolved straightaway, while the Greek government should do away with procrastinating, to facilitate shortsea shipping becoming competitive again, keeping up with the current and future demands and achieving economic viability.

SHIPPING 2022

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SUSTAINING DYNAMIC GROWTH 2022 will be a special year for cruise activity in our country, with a large number of cruise ship approaches in all ports, but with an average occupancy rate that will not exceed 80% of ship capacity

T Capt. George Koumpenas Chief Operations Officer, Celestyal Cruises, and President of the Association of Cruise Ship Owners and Maritime Agencies (EEKFN)

he international cruise is on a recovery trajectory, with more than 7.5 million passengers traveling to almost 90 countries since the resumption of services. At the same time, according to the latest CLIA data, all passengers are expected to recover and exceed 2019 levels by the end of 2023, while the number of passengers who prefer cruises is estimated to exceed pre-pandemic levels by 12 % by the end of 2026. At national level, before the onset of the Russia-Ukraine war, all indications agreed that 2022 would be a great year for cruising in our country. The number of ship approaches announced is particularly increased, with a large number of ships based on Greek ports. About 68 different cruise ships will start cruising from Piraeus alone. What can not be predicted at the moment is passenger numbers, owing to the COVID-19 pandemic and the tragic developments in the Ukraine war. Nevertheless, the cruise in our region does not seem to be significantly affected. However, the hike in energy prices, transportation and in general the cost of basic goods may have an impact on the final number of bookings. Notably, there is a significant increase in the number of

ships based in Greek ports, creating multiplier benefits for the national economy. In addition, the fact that many of these ships are smaller in size and cater to high-income passengers is just as important, as they approach smaller destinations that have not been on the cruise map until now, having a major economic benefit for local economies. Summing up for 2022, we can say that it will be a special year for the cruise activity in our country with a large number of cruise ship approaches in all Greek ports, but with average passenger numbers that will not exceed 80% of ship capacity. Regarding the country’s revenues, given the record increase in homeporting, we believe that they will be very close to 2019 record levels, i.e. 556 million euros (according to Bank of Greece data). The big bet is the proper management by all stakeholders in our country to maintain this dynamic growth and the undeniably positive prospects. There are several issues that need to be addressed, such as the lack of the necessary infrastructure of a rational system for allocating cruise ship approaches, but also the sudden increases in the cost of ship services, which could easily divert companies’ interest to other nearby countries.

The country’s revenues from the cruise industry in 2022 will be very close to 2019 record levels, i.e. 556 million euros.

Competition with Turkey Competition that may come from Turkey, in particular, is an issue of concern. After a long absence from cruises from neighboring ports, we already see large cruise

SHIPPING 2022

companies choosing them as starting ports. Istanbul has already been selected by large companies as the basis of their ships, as it boasts one of the largest airports in Europe, and is completing a huge project for the renovation of Galataport, at a cost of over one billion euros. Other ports, such as Antalya, are also in talks with one of the largest groups in the industry to become the permanent base of all of the group’s ships. The strategic initiatives taken by Turkey, such as inbound tourism subsidies, construction of major infrastructures at ports and airports, as well as the ease of access (no visa required), make the neighboring country attractive to companies in the industry. Also noteworthy is the effort to establish cruise companies of Turkish interests, as the hitherto traditional Aegean cruise, starting from Greece and approaching Turkey, can be easily reversed, i.e. cruises starting and ending in Turkish ports and simply approaching Greek islands. Finally, the new EU requirements with regard to marine fuels, as well as the implementation of the electronic visa system that is being promoted, are additional incentives for ships to sail from Turkey.

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SEA CRUISE: LEADERSHIP OPPORTUNITY-COMMUNITY These are the three words that come to mind as I think of the cruise industry in 2022. I see an industry that has navigated uncharted waters to overcome major challenges

I Maria Deligianni Director of Eastern Mediterranean, Cruise Lines International Association (CLIA)

see an industry whose value reaches millions of people, creating opportunities for growth and wealth for all. I see a future brighter than ever, guided by an unfailing spirit of cooperation and innovation. Our members look ahead, pioneering responsible tourism and shipping practices, investing in new ships and pursuing the goal of a clean, carbon-neutral cruise industry by 2050. For the cruise industry, 2022 is a pivotal year of transition, paving the way for a full recovery to pre-pandemic levels in 2023. Nearly 100% of the global passenger capacity of CLIA members’ fleet is expected to be operational by the end of July 2022. The intention to take a cruise trip is recovering, with 63% of passengers or potential passengers stating in a survey that they are “very likely” or “likely” to take such a trip within the next two years. Up to 69% of respondents who have never cruised said they are open to this type of travel, a rate that exceeds pre-pandemic levels. Millennial cruise passengers are the most enthusiastic about going on a cruise again, with 87% saying they will cruise again in the coming years, followed by Gen Xers with 85%. Taking into account all the signs, we can realistically expect that passenger numbers will recover, outperforming 2019 record levels by the end of 2023. In Greece, an opportunity emerged out of the crisis. The country supported the industry’s restart amid a pandemic and created the prospects for enhancing its position on the cruise map. With an annual contribution of 1.0 billion euros to the national economy, and with more than 16,500 professionals active in the

industry, the cruise now has the voice it deserves in Greece, while in the midst of a pandemic the sector’s importance was recognized. In 2021, the number of cruiser visits amounted to 50% of the record numbers of 2019, with the operation of 30 CLIA member ships in Greek waters. In 2022, the signs are very promising and numbers may reach close to the 2019 levels. Approximately 90 CLIA member ships are scheduled to operate in Greece in 2022, a number relatively close to the 97 ships which operated in 2019. In addition, this year the cruise season in Greece has already opened since March, as every year. The sea border with Turkey is open again and travel is also expected to continue in the winter, as several companies have already announced themed Christmas and winter cruises in the first quarter of 2023. At the same time, the cruise sector in Greece is changing. New destinations are emerging, such as Thessaloniki, enhancing the potential of Northern Greece, and creating a new cruise passenger community from the Balkans and Southeastern Europe. Finally, the outlook for the entire region is very positive. Turkey and Cyprus remain firmly high in the companies’ preferences, while Israel is also expected to enter the cruise map more actively, as does Egypt. After all, the Eastern Mediterranean region provides a unique opAlmost 100% of the global passenger capacity of CLIA members’ fleet is expected to be operational by the end of July 2022.

portunity for a multicultural experience to cruise passengers, with countries so close but also so different from each other. In 2019, the global cruise industry welcomed onboard nearly 30 million passengers, creating jobs for 1.8 million people worldwide and contributing more than $154 billion to the global economy. At the same time, 6 out of 10 cruise travelers state that they have returned to at least one destination from those they visited for the first time on a cruise ship, confirming our contribution to the development of broader tourism. Beyond facts and statistics, there is a story of an industry that is best described as a “community”: from passengers and crew members, to ports and destinations, travel agents, suppliers, store owners and millions of others. Together, we are paving the way for positive, sustainable change in the community we serve. I look forward to seeing this story continue to unfold in the coming months and years. About CLIA: The International Association of Cruise Companies (CLIA) is the world's largest association of cruise ship owners. CLIA accounts for 95% of the world's passenger capacity, as well as 54,000 travel agents and 15,000 of the world's largest travel agencies.

SHIPPING 2022

the sea

How nicely the ship leaves the port. Its smoke looks pink in the gold dust of the sunset. Well, no matter how many times you have been denied or even you denied, a white house on the hill asks for your look, a child wets his feet in the sea smiling, a bird sings for you too at night. Well, let's procrastinate again, let’s enthrone this little butterfly on the cracked glass. Giannis Ritsos, Calculated postponement (Karlovasi, 29. VI. 87.)