The Shipping Industry is setting sail towards even greener horizons.
In the following years, we expect more investments in eco-friendly technologies like alternative fuels, electric propulsion, and even wind-assisted propulsion. Governments and Industry stakeholders are collaborating to
reduce further emissions from the Shipping sector. To maintain resilience, Shipping needs to set sail into the future with some innovative navigation. Embracing decarbonisation means exploring alternative fuels and green technologies.
The way forward to accelerate the development of affordable low and zero-carbon fuels and technologies is to develop a “fund and reward” mechanism to incentivize shipowners who quickly transition to green technologies and fuels, while it will contribute billions of dollars annually to produce alternative fuels and establish fuel supply infrastructure in developing countries.
The Chamber believes that the immediate implementation of a global fund will help the Shipping Industry achieve the decarbonisation goals set by the IMO more quickly and ensure a level playing field for com- petition worldwide in the Shipping Industry.
The funds collected should be invested, among other things, in providing incentives for the adoption of low/zero-emission fuels, reducing the cost gap between these fuels and conventional liquid fuels, financing applied research and development programs for alternative fuels and innovative technologies, and providing technical and economic support to mitigate negative impacts on developing countries. Additionally, the proposed mechanism will not burden Maritime Ad- ministrations, as it will be implemented through the existing IMO Data Collection System.
The Chamber believes that this proposal from the International Chamber of Shipping, addresses all concerns expressed by IMO Member States to date and can serve as an excellent framework for further development and finalisation by IMO of a Market-Based Mechanism for Shipping, starting in early 2025.
The Industry is also steering towards a more connected and automat- ed future. Digitalisation can streamline operations, from smart logistics to efficient communication. Embracing digital technologies like IoT, blockchain, and AI can enhance efficiency, streamline operations, and provide real-time data for better decision-making. Technology is also instrumental in the Maritime Industry’s efforts to decarbonise. Advances in propulsion, alternative fuels, data analytics, and emission monitoring are essential components of making Shipping more sustainable and reducing its environmental impact. These technological innovations not only help meet regulatory requirements but also make economic sense by reducing operational costs over the long term. As such, digital and ecological transitions must go hand in hand towards the digital and greener transition of Shipping.
From our side, as Cyprus Shipping Chamber, since years now, we have formed a team of “in-house” experts through our Digitalisation Committee, which monitors the development of new technologies and the fields of automation and digitalisation and promptly advises Member-Companies about new technologies which could offer efficiency, safety, and environmental performance as well as advise on cyber-attacks challenges, especially through discussions at both national and international forums, aiming to find the best approach to combat cyber-crimes.
Geopolitical tensions call for adaptable strategies and diplomatic navigation. Navigating through geopolitical waters can be tricky, but diversification of routes and suppliers, along with robust risk management strategies, can help ships weather the storm. Diplomacy and collaboration will be key in finding smoother seas.
The shortage of skilled seafarers is another challenge. To keep global trade moving, our Industry needs almost 90,000 additional seafarers by 2026, while we retain our existing human resources capacity.
The Chamber’s educational activities, which are being successfully executed for twenty years now, have contributed to a high extent in creating awareness in Cyprus for the benefits of seafaring careers and land-based professions in Shipping, as well as attracting fresh qualified talent in the industry. In addition, the “Adopt-a-Ship” Pro- gramme which was initiated by the Cyprus Shipping Chamber in 2006 and is now receiving recognition from shipping leaders and adopted by many countries worldwide, has been acquainting youngsters of ages 11-12 with seafaring professions and our ships through email communication of the crew onboard with their classroom ashore. Shipping companies can reap big benefits from improved crew welfare, and digital technology can be the driver of those benefits. Having connectivity and access to digital tools on board help improve crew morale, reduce social isolation, improve crew retention and it can have a profoundly positive impact on attracting staff working in
a maritime environment. Establishing dedicated schemes to support the role of women and other underrepresented groups can also open doors to underutilised source of maritime talent and bridge the gap of crew shortages, ensuring our industry’s sustainability.
In a nutshell, adaptability, innovation, and most importantly collaboration between industry stakeholders and regulatory bodies will be the anchors holding the Shipping Industry steady in the face of these challenges. The goal is mutual and is to create a resilient and secure maritime ecosystem that can adapt to evolving challenges.
It is a challenging sea, but with the right course, Shipping can ride the waves of change!
* Director General, Cyprus Shipping Chamber