Yara Marine Technologies
Reducing carbon emissions from shipping will test operators’ adaptability and willingness to embrace the demands of their customers, writes Vasileios Gkikas, director of business development and global lead for dry bulk at class society, ABS.
The challenges facing the dry bulk market are a microcosm of the broader struggle facing the industry – and will require change on the same fundamental level.
Over and above the market fundamentals of supply and demand – or even the influence of geopolitics or emissions regulations, there are still some key elements that define and will determine the course of the sector.
A key strength of dry bulk shipping has always been its flexibility and versatility, but the competitive environment is highly challenging and requires owners to vigilant in terms of managing their position.
The majority of dry bulk trade is still conducted on a /spot basis; the ownership profile is large and highly fragmented and the role of other stakeholders like charterers and commodity traders is important.
Large charterers and commodity traders in particular are planning ahead and arguably leading the energy transition with a positive influence acting as a lever and enabler of decarbonisation.
ESG or CSR strategies at the large groups are quite advanced and have been long passed from pledge level to actual implementation, paving the way for the rest of the market to follow. Technology and green finance providers have also a critical role to play on this journey.
The sector needs to think about how operations and mindsets will need to change so that the responsibility for achieving this global goal is shared rather than weighted more towards owners as the asset operators.
To achieve this in the dry bulk sector definitely requires looking further into data exchange and analysis with transparency among the stakeholders and a willingness to embrace a collaborative approach, because no player or actor can succeed on their own. Classification societies have an important role to play in helping all these elements and components meet.
