ECSA’s newly appointed secretary general, Sotirs Raptis, has taken up the helm of an organization criticized by its own members for being invisible. In an interview with WPO, Raptis explains how he intends to alter that image.
The mandate from the members is quite clear for the new secretary general of the European Community Shipowners’ Associations (ECSA), Sotiris Raptis.
His predecessor, Dutchman Martin Dorsman, was asked to step down following general discontent among national shipping organizations in Europe saying he failed to raise the awareness expected from a lobby organization located next to the EU-Commission’s premises in Brussels.
Raptis’ task is thus to increase the visibility of ECSA and European shipping. Or in more practical terms, he needs to engage in more talks and more meetings with EU officials, thus bringing the shipping industry’s concerns higher up on the agenda.
With his past at environmental NGO Transport & Environment, Raptis knows of the decarbonization urgency. And with his Greek roots, he is furthermore conscious of the economic and political importance of the sector on a national level.
Add to this that he knows ECSA from inside – he was appointed interim secretary general when Dorsman left – and one gets a sense of some of the tools Raptis can apply to secure support from ECSA’s 19 member associations.
Shipping in make-or-break moment
And he already has a full plate in front of him.
A number of new EU climate policies will be introduced in the next two years, said to mark a make-or-break moment for the sector. So a lot of hard work needs to be done bringing the priorities of the European shipping community into the spotlight.
Raptis plans to deliver on well-known items on the industry’s agenda but does not wish to point out projects or cases that should have been handled differently in the past, he explains in an interview with WPO.
I don’t think there is a north-south conflict in ECSA’s membership
ECSA Secretary General Sotiris Raptis
”Politicians must recognize the fundamental role of shipping in the competitiveness of the European economy. In that respect, we need to set a clear message, to amplify our voice, and build up broader coalitions. Being an open, constructive and evidence-based partner is a top priority for ECSA. The climate crisis, the energy transition of shipping and financing this transition are major challenges,” Raptis states to WPO, adding:
”ECSA must come up with the right input, communicate better and present science-based solutions for the challenges we face.”
One specific criteria of success is that ECSA’s priorities and proposals are frequently reflected in the working documents and final regulation by the EU institutions. And preferably to a higher degree than what has been the case so far.
Maintain competitive edge
Another key point is to ”address the competitiveness challenge,” meaning to safeguard the competitive edge against not least Asian shipowners and – as a minimum – maintain the advantageous tax schemes such as the tonnage tax and net wage rules that have been regulatory cornerstones for European carriers for decades.
”We have already had tangible results where our proposals are visible in the final regulation. The taxonomy is just one example where our argument that shipping is a transitional sector is reflected in the regulation. Another recent success is the ETS proposal and that an Ocean Fund should be established to return proceeds to the industry. The European Parliament supports that 75% of the ETS should be paid back to the shipping industry to finance investments in new technologies. This is the work of ECSA,” Raptis explains.
ECSA’s recent reshuffles
ECSA has 19 national member associations from the EU and Norway. The current president of ECSA is Philippos Philis, chairman and CEO at Lemissoler Navigation Co. Ltd; Karin Orsel – CEO of MF Shipping Group – is ECSA’s vice-president.
Philis was appointed chair in January this year.
In the beginning of October 2021, Martin Dorsman abruptly left his position as secretary general of ECSA following strong discontent among member regarding his performance.
The organization works on the basis of a list of priorities of ten strategic goals, with Climate, Trade, Competitiveness being just three of them.
Read more about ECSA here.
However, the Ocean Fund also brings forth one of the latent conflicts, because ECSA’s members are far from alike. Often, the discussion of political topics reveals a gap between shipping organizations from the north and south, with Denmark and Norway representing one view and Greece another. Seen from Copenhagen and Oslo, Northern Europe is definitely the front runner of green shipping, whereas Athens and the Greek shipping community is not.
The north-south conflict
Regarding the Ocean Fund, Danish Shipping is concerned that shipowners which have not yet invested in the energy transition will enjoy a free ride due to the capital allocated from the fund which the entire industry must contribute to. Even shipping companies which have already upgraded their fleet or invested in green technologies with their own money.
However, Raptis does not see a geographical gap.
ECSA must come up with the right input and communicate better
ECSA Secretary General Sotiris Raptis
”I don’t think there is a north-south conflict in ECSA’s membership. I believe it is more a matter of different business models. We are the bridge between Brussels and the industry. Our role is to map out where the different views come from, to find common ground, to synthesize different priorities and interests and come out with a strong voice,” he argues.
Like with sanctions after Russia’s invasion of Ukraine: Should ECSA have a position on how members ought to react? Some carriers have already chosen self-sanctioning, others have not, leaving it up to the market to dictate. Right now, ECSA only has a position on technical matters being discussed in a committee, which probably indicates how sensitive the matter is.
Huge challenges ahead
Raptis takes the helm at a time when a number of disruptors over the last couple of years have changed the global agenda fundamentally, changing shipping as well. The climate crisis. EU’s green package, Fit for 55. Covid-19, supply chain chaos and the severe crew crisis. Russia invading Ukraine. Just to mention some.
ECSA’s new secretary general is conscious of what lies ahead of him.
”We have a completely different political landscape, and the agenda has changed a lot over the last couple years. Shipping is in the European policy-makers’ spotlight for the first time and Europe becomes gradually the de facto international regulator of the sector. We must work hard and be prepared for the challenges ahead,” he says.
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