Unanimously in favor of establishing environmental regulations at an international level that do not take into account the proposals and particular characteristics of shipping, five shipping personalities on panels participating in the Maritime Cyprus 2025 framework took a stance.
Taking the floor, Mr. Georgios Prokopiou, President of Dynacom Tankers Management Ltd., emphasized, among other things, that at the present moment, the future regarding the energy transition is technologies around Carbon Capture and not alternative fuels. “We entrepreneurs act and choose the doable and not the desirable,” adding that the shipping community seeks and is already moving towards more efficient solutions.
The Greek shipowner characteristically mentioned that the operational measures that can be implemented immediately, combined with the fact that new generation ships emit 35% fewer air pollutants compared to older ones, are the answer to this issue. “If we add the above, we can achieve approximately 50% fewer air pollutants, without turning to alternative fuels.
“My fleet under construction numbers 103 ships and I am proud that we will do exactly that,” he stated, among other things.
Indeed, in a statement that sparked interest, Mr. Prokopiou stressed that in his opinion, the upcoming vote on the IMO Net-Zero Framework will not “pass.” In the event that this happens, the consumer will inevitably suffer the greatest consequences, he concluded.
Subsequently, Mr. Thanasis Martinos, Managing Director of Eastern Mediterranean Maritime Limited, focused his attention mainly on European legislation, arguing that it is unfair for ships that trade for only a few days in EU ports to be called upon to pay exorbitant amounts. “The European consumer is the one who will ultimately pay the cost,” he pointed out. Asked about the evolution of the global shipbuilding industry, the experienced shipowner commented that China has now emerged as a significant shipbuilding center, with the quality of domestic shipyards being equally good as that of Japan and South Korea. He also expressed the opinion that India, due to low labor costs and high technology, will be able to play a significant role in the future. Finally, referring to US port fees, Mr. Martinos described them as “wrong” and that “the next US administration will probably change them.”
For his part, answering the question regarding the upcoming vote on the IMO Net-Zero Framework, the CEO of Cyprus Sea /Hellenic Tankers and President of the Cyprus Union of Shipowners, Andreas Hadjiyiannis, mentioned that in his view the said resolution will “unfortunately” be crowned with success.
“The two big losers from this development will be the European Union and the consumer, while the big winner will be China,” he characteristically stated. Indeed, he noted that if Europe remains so divided, China will dominate even more.
Regarding alternative fuels, Mr. Hadjiyiannis was on the same wavelength as Prokopiou, agreeing with his statements. As he characteristically mentioned, 90% of global pollution does not come from human activities. Of that 10%, only 3% comes from shipping. “And they tell us to change that, while shipping is so critical for global trade,” he stated, among other things.
Dr.
Ioannis Koustas, president and CEO of Danaos of Danaos Corporation, characteristically stated that “we cannot have policies for shipping without the proposals of the industry being heard.” On the same wavelength, he emphasized his skepticism about where the funds collected from the imposition of environmental regulations will be channeled. In a related question about the fuel of the future, he stressed that Danaos’s ships on order are methanol-ready, as, he added, the shipping community should have its sights set on China and the energy production projects it is launching: “Only China is scaling up the production of green fuels… […] Have you seen Cosco investing in LNG? Only in dual-fuel and methanol engines.”
“Decarbonization is an expensive process,” stated Ms. Semiramis Paliou, CEO of Diana Shipping, in her initial remarks. According to her, the adoption of the Net Zero Framework will have a real impact on shipping’s green transition, only under the condition that the funds collected are used to scale up the production of alternative fuels and build appropriate infrastructure. “What creates uncertainty is the lack of clarity about the next steps,” commented Ms. Paliou. When asked about the future marine fuel, she pointed out that it depends on many factors, such as the size of the ship and the routes it operates on, and that “it is difficult for anyone to place an order today and feel confident that the ship will not be considered economically uncompetitive after a few years.”
The panel was moderated by Mr. Georgios Mouskas, vice president of the Cyprus Union of Shipowners.
