As global navigates decarbonisation, regulatory undertainty, and geopolitical turbulence, Safe Bulkers stands out for its proactive strategy and strong ties to Cyprus. With an ambitious fleet renewal program—including dual-fuel methanol-ready vessels—environmental upgrades across its fleet, and a steadfast commitment to the Cyprus Registry, Safe Bulkers continues to lead as one of the sector’s most resilient players. In this exclusive interview with NAFS, Chairman and CEO Polys Hajioannou highlights the company’s environmental progress, its deepening presence in Cyprus, and its investment in the next generation of seafarers through scholarships and training. Anchored in tradition but driven by innovation, Safe Bulkers sets a course for sustainable growth and long-term maritime leadership.
As Chairman and CEO of Safe Bulkers, what are your key strategic priorities for the company over the next 3–5 years, particularly in the context of global decarbonization efforts in shipping?
At Safe Bulkers, we are actively embracing the challenges of decarbonization focused on reducing our emissions and running one of the most efficient fleets in the dry bulk segment. To deliver on this, we are prioritizing two core strategies: i) our comprehensive fleet renewal program by ordering eighteen (18) new modern vessels, acquiring younger second-hand vessels, and selling older ones and ii) our ongoing program for the environmental upgrading of existing vessels of the fleet by integrating newer eco-efficient technologies during dry dockings. To date, 25 vessels have already been upgraded.
We believe that embracing suitable eco-friendly tech solutions and modernizing our fleet and operations will allow us not only to achieve further emission reductions, but also to lower carbon-related taxes and operating costs. In 2024, we made significant progress in improving our fleet’s emissions profile, achieving a 6.09% annual reduction to our fleet’s carbon intensity based on Annual Efficiency Ratio (AER) compared to 2023. This follows a 7.42% reduction from 2022 to 2023 and a 7.16% reduction from 2021 to 2022, marking a 19.3% decrease from 2021 to 2024 and showcasing a consistent downward trend in emissions.
As part of our fleet renewal program, the Company signed contracts for the acquisition of two dual-fueled newbuilding Kamsarmax dry-bulk vessels, capable of operating with methanol and fuel. When powered by green methanol, these vessels can produce close to zero GHG emissions based on the life cycle assessment (LCA) methodology well-to-propeller (WTP). At the same time, following the successful delivery of twelve Phase 3 newbuilds, Safe Bulkers maintains an outstanding orderbook for six additional dry bulk vessels, including the dual-fueled ships. All the newbuilding vessels in our current orderbook are designed to meet the highest operational and environmental standards, fully compliant with the latest IMO regulations, particularly those focused on reducing greenhouse gas emissions (EEDI Phase 3) and nitrogen oxide emissions (NOx-Tier III). These vessels, scheduled for delivery between 2026 and early 2027, will proudly fly the Cyprus flag, reinforcing the nation’s Registry with some of the most advanced green ships in the market.
How is Safe Bulkers balancing the need for fleet renewal with the uncertainty surrounding future fuel technologies and regulatory frameworks?
Today, the urge for decarbonization is essential for the industry’s long-term sustainability. However, it does come with significant challenges, driven by the evolving landscape of green technologies and shifting regulatory frameworks. These dynamics place considerable financial pressure on shipowners striving to stay competitive in an already demanding market. We believe that addressing these hurdles requires collective action and collaboration across all stakeholders and shared initiatives to identify the most effective and viable solutions for the future.
At Safe Bulkers, we have invested timely during periods of market softness by building a resilient, sustainable, growing company. We believe that making the right long-term investments that meet the future climate targets of our industry, will allow us to secure a stronger position in the years to come, and continue enjoying the trust of our investors and all stakeholders. We have been working actively to improve our operational efficiency investing in the latest environmental technologies and modern ship designs to further reduce our environmental footprint. Our strategy is built on agility and foresight, continuously assessing, testing and implementing tech solutions for better operations, more efficient decision-making and increased cost-efficiency within our company.
What role does Cyprus—and more specifically the Limassol office—play in the operational and strategic management of Safe Bulkers’ fleet?
Being Cypriot, it has always felt like Cyprus was more than just a place. It is part of who we are. So when it came to plan our next steps, establishing a base there was not just a strategic move, it was something that has been in the cards for us from the very beginning. At the same time, as a company listed on the New York Stock Exchange, Cyprus offers a steady and flexible business environment, high-quality services and strong levels of security, making it the perfect place to grow. Cyprus is a place that resonates with us both personally and strategically.
Today, ten years after the establishment and successful operation of our company in Limassol, we have officially relocated our headquarters to Limassol, from where the majority of our fleet is now effectively managed. At the same time, we maintain a large office in Greece, a combination that allows us to benefit from the best each country has to offer.
Safe Bulkers has received recognition for maintaining a large number of vessels under the Cyprus flag. What drives this commitment, and how do you view the future competitiveness of the Cypriot registry?
Being the largest shipowner under the Cyprus Registry, with 45 out of 47 of our Company’s vessels flying the Cyprus flag, we are convinced for the quality, the dynamism and the business friendliness of the island’s Registry compared to other competing registries and we are proud to be part of the Cyprus maritime cluster.
The Cyprus flag is a European flag that has established itself as a reliable and reputable choice of flag among the leading registries worldwide. The Cyprus-flagged fleet ranks 3rd in Europe and eleventh globally. I always refer that the major advantages of the Cyprus Registry and flag are the professional expertise, the high quality of administrative assistance and technical support and of course the investments in new and advancing technologies which enhance the speed and responsiveness of the Registry to a fast-changing competitive business environment.
Cyprus is an attractive flag and can become stronger than it already is. If you are a shipowner or a shipmanagement company, especially those based in Cyprus or Greece, registering your vessels under the Cyprus flag is more than a business decision. It’s a statement of support. By choosing Cyprus, you are backing a Registry with a proven track record, strong regulatory standards, and real potential to grow. The more vessels we have proudly flying the Cyprus flag, the stronger Cyprus’s voice becomes across Europe and on the international stage.
In your capacity as Vice President of the Cyprus Union of Shipowners, what are the most pressing challenges currently facing the Cypriot maritime sector?
Cyprus has come a long way in establishing itself as a leading maritime centre. Still, there are several pressing challenges ahead that require our collective focus and unified efforts. To keep moving forward, we need to speed up decarbonization and digital transformation, both of which require serious investment and technical expertise. At the same time, geopolitical tensions continue to impact operations and crew welfare, adding complexity to an already demanding landscape.
At CUS, we are confident that with unified efforts and a focus on innovation and resilience, Cyprus is well-positioned not only to overcome these challenges, but to lead the way forward. A key part of enhancing Cyprus’s maritime standing is expanding the Cyprus-flagged fleet. This will enhance the Registry’s competitiveness and elevate the nation’s role in global maritime affairs. After all, the Cyprus flag, with its compelling advantages, is an ideal choice for shipping companies looking to expand their fleet registrations while simultaneously supporting the ongoing growth and success of the Registry.
How do you see Cyprus evolving as a global maritime hub, and what policies or incentives would you advocate for to strengthen its position?
Today, Cyprus stands as a premier global maritime hub attracting key industry players and fostering significant investment opportunities that contribute to the nation’s economy and overall quality of life. Its strategic location at the crossroads of major shipping routes, combined with a business-friendly environment offering attractive tax incentives, a transparent regulatory and legal framework makes it exceptionally appealing. On top of that, with modern maritime infrastructure, high-quality ship registry, and skilled workforce in the field, Cyprus really stands out as a go-to spot for global maritime business.
Cyprus’ shipping industry has seen remarkable growth in recent years. President Christodoulides and the government have been putting real focus on elevating diplomacy, and that effort is playing a big role in safeguarding Cyprus maritime interests and expanding its international standing. To keep up that momentum and strengthen its position in Europe and beyond, Cyprus needs to step up efforts to build and strengthen cooperation mechanisms and strategies that protect and expand its maritime interests. With everything going on geopolitically, Cyprus needs a multi-layered diplomatic and strategic approach. That includes strengthening regional coalitions, deepening its bilateral ties and maritime relations with global powers such as the United States while continuing leveraging its EU membership to give its maritime interests wider reach.
The maritime workforce is undergoing generational and technological shifts. What is your vision regarding talent development and maritime education in Cyprus and across Europe?
At Safe Bulkers, we recognize that cultivating highly educated young talents, equipped with the academic skills necessary to join the country’s future workforce, is a strategic priority that will further attract international shipping business to Cyprus and expand the country’s maritime cluster. To this end, in 2021 we introduced our annual scholarship program for Cypriot or Greek students in Cyprus wishing to pursue a professional career in the maritime industry. For the 2023-2024 academic year, we awarded 10 scholarships of €10,000 each to undergraduate and postgraduate students undertaking studies relevant to the maritime industry’s needs and we have awarded the same number of scholarships for the 2024-2025 academic year.
We have also launched Safe Bulkers Annual Cadet Scholarship Program, which grants five annual scholarships of €5,000 to Cypriot or Greek students enrolled in the four-year Nautical Science program at the Cyprus Maritime Academy. The scholarships will be renewed annually subject to the recipients’ satisfactory academic progress and successful promotion to the next year. Safe Bulkers will provide them with sea-service training onboard its modern, energy-efficient, Cyprus-flagged vessels and, upon graduation, full employment leading to a career as Deck Officers up to Captain Class A and prospective placement as Port Captains or fleet operators in the marine department of its Cyprus-based offices.
More information about our scholarship program is available on Safe Bulkers website (www.safebulkers.com).
Safe Bulkers has introduced scholarship programs and environmental initiatives in Cyprus. How do these reflect your long-term vision for corporate responsibility?
At Safe Bulkers, we have integrated and elevated our sustainable efforts across every aspect of our operations, continuously improving our Environment, Social, Governance (ESG) performance while creating long-term sustainable value for our stakeholders. Each year, we release our annual Sustainability Report published on our website to better inform our stakeholders on our Company’s approach and performance on Environmental, Social and Governance (ESG) matters. These annual reports reflect Safe Bulkers’ steadfast commitment to transparency and sustainability, detailing our actions across all ESG dimensions. We are glad to announce that our 2024 Sustainability Report is already available on our Company’s website (www.safebulkers.com), providing an insight into the work and progress we have made over the past year.
I am proud of the progress we have made and the commitment our team has shown to corporate responsibility and sustainable growth. Our governance framework combines experienced independent directors with family representatives, creating a solid balance that keeps us focused on long-term growth while staying true to our core values that define who we are. We remain deeply rooted in the business we know best, while continuously striving to evolve, leading the way through regulatory frameworks and technological advancements. Our hands-on management approach is currently focused on executing our environmental agenda, with shareholder value firmly anchored the center of how we operate. We have built some strong momentum, and I’m confident we will keep deepening our efforts and making an even bigger impact for all our stakeholders in the years to come.
What personal values or leadership principles have guided you in navigating both the commercial and institutional sides of the maritime world?
My father, Vassos Hajioannou, first entered shipping in 1958 and our family has stayed committed to the dry bulk sector ever since. For over 65 years, we have grown Safe Bulkers through dedication, hands-on management and daily engagement. We’ve built a reputation for operational excellence, strong financial profile and transparent corporate governance practices, establishing long-standing partnerships with key industry players. I’m proud to carry forward our maritime tradition each day, and I hope to pass these values of work ethic, hard work and perseverance to my children.
As we continue to grow, I am confident about the future prospects of our company. Safe Bulkers has a robust foundation built on experienced leadership, a skilled team, a modern fleet with high specifications, enduring world-class partnerships, as well as a solid corporate strategy. By leveraging this solid base, our Company can continue to grow and evolve, capitalize on new opportunities, and maintain profitability even in volatile market conditions.
*Polys V. Hajioannou Is Chairman & Chief Executive Officer Of Safe Bulkers, Inc.
