Four shipowners were called to express their views on the thorny issue of alternative fuels, as well as the delicate balances between upgrading the existing fleet or expanding through new investments, within the framework of Maritime Cyprus 2025.
Initially, Mr. I. Xylas, President and CEO of Ariston Navigation Corp., emphasized that the shipping industry remains committed to the overarching issue of decarbonization. However, the way to achieve this goal must be done in a realistic manner, he stated among other things, while also stressing that the much-discussed Net-Zero Framework (NZF) is anything but perfect.
“Small businesses are the backbone of international shipping, and their views have not been heard,” he characteristically mentioned. However, according to him, the risk entailed in case the NZF is not passed is greater. According to Mr. Xylas, while the regulatory framework in question is objectively problematic, it offers a common path. “If the NZF does not ‘pass’, we will enter uncharted waters and chaos will be created,” he characteristically stated.
Mr. Yannis Xylas.
Taking the floor, the newly elected President of the Cyprus Union of Shipowners and head of Safe Bulkers, Polys V. Hadjioannou, mentioned that in case the new regulatory framework is adopted, shipowners will react to the “earthquake” that the impending inconceivable costs will cause. “In case the NZF is passed, the numbers (i.e., costs) will be unreal, with prices for newbuildings even multiplying, as we also heard in yesterday’s panel. We are not against the IMO, but against the numbers that are being heard,” he characteristically emphasized. According to him, the shipping industry will be called to work very hard, because if these numbers are confirmed, global trade will be irreparably harmed. In fact, in order to describe the blurry landscape around alternative fuels, he stated among other things that “in 2023 we ordered two dual-fuel methanol-powered ships. We knew more then compared to now,” he characteristically stated.
Mr. Polys V. Hadjioannou.
In addition, Mr. Hadjioannou revealed the expansion of his company’s activities into the tanker sector. As he characteristically mentioned, Safe Bulkers recently placed an order for two MR tankers from the COSCO shipyards.
Finally, regarding his company’s strategy, he mentioned that starting in 1993, when it had proceeded with the order of 3 newbuildings from the Samsung shipyards, the company has been oriented towards this market. “We believe in newbuildings and we had not been involved in the secondhand market until very recently. The future is in newbuildings,” he emphasized. However, according to him, with current developments, orders are prohibitive due to the explosive prices. “You cannot stay out of the game for a long time, however, so caution is needed.” At the moment, Mr. Hadjioannou’s fleet numbers around 60 ships with 6-7 newbuildings scheduled for delivery at the end of 2026.
A wait-and-see stance is the most advisable option for shipowners regarding investments, especially in the current period of increased uncertainty around technologies and fuels, emphasized Mr. Filippos Efstathiou, CEO of Efnav Company, in one of his rare public statements.
On the same wavelength, he added that currently his company is focusing on the energy upgrade of its existing fleet, while maintaining its liquidity, as newbuilding prices are at very high levels. Referring to the headwinds of ETS, he pointed out that Efnav’s “shield” is the clauses in the charter parties.
Mr. Filippos Efstathiou.
When asked if in the future he would consider the possibility of diversification, Mr. Efstathiou noted that this specific strategic choice has more benefits for companies with large fleets, whereas, conversely, specialization “is a wiser choice for companies with smaller fleets.”
Capt. Stefanos Angelakos, CEO of Angelakos (Hellas) S.A., agreed with Mr. Efstathiou’s remarks about upgrading the existing fleet in order to “reduce exposure to upcoming regulations.” As part of its fleet renewal and expansion, Angelakos (Hellas) S.A. recently sold older Panamaxes and replaced them with newbuild Kamsarmaxes. The result of these transactions is that its fleet’s GHG emissions have been reduced by more than 20%. Capt. Stefanos Angelakos added that in the absence of available technologies and fuels for decarbonization, conventional propulsion solutions remain the dominant solution when placing orders, also stressing that “any technological solution must be operationally, technically, logistically, and environmentally sustainable.”
Capt. Stefanos Angelakos.
Finally, when asked about the role of the human factor today, he reminded the audience of the sacrifices of seafarers during the pandemic period, who contributed immensely to keeping trade and the international economy unaffected. “In times of crisis, they are always on the front line.”
The panel moderator was Mr. Nikolas Bornozis, Founder & CEO of Capital Link, Inc.
