In recent years, the European shipping industry, a global leader in trade, has faced transformative shifts. Digitalization and decarbonization are driving these changes, demanding innovative solutions to ensure the sector’s resilience, competitiveness, and sustainability. GeoTrends sat down with Sotiris Raptis, Secretary General of the European Community Shipowners’ Associations (ECSA), to discuss the industry’s path forward.
In this exclusive interview, Mr. Raptis explores the progress of digitalization and decarbonization in European shipping, the vital role of European policies and initiatives in supporting this transition, and the challenges and opportunities arising from the green shift. He also shares his perspective on the pressing need to reduce administrative burdens within the industry.
– Mr. Raptis, one of the main challenges facing today’s shipping industry is digitalization. How do you envision this process transforming the industry over the next decade? Additionally, are there specific technologies or initiatives that ECSA is focusing on to accelerate this transformation?
Digitalization is set to significantly reshape the shipping industry over the next decade. The integration of advanced digital technologies will streamline operations, enhance navigational safety, and help reduce environmental impacts. However, this transition also comes with challenges, such as the need to upskill the workforce, address cybersecurity concerns to safeguard sensitive data, and manage the costs associated with technological upgrades.
ECSA is actively driving initiatives to accelerate this transformation. Notably, we are involved in EU-funded projects like SKILLSEA, which aims to equip maritime professionals with the digital, green, and soft management skills required for the future, and WESS, which focuses on exploring the benefits and challenges of digitalizing ship operations. Building on these efforts, ECSA, together with the European Transport Workers’ Federation (ETF), launched the Seafarers Go Digital initiative. This initiative presents a series of commitments and policy recommendations to ensure that our workforce is well-prepared for the digital age.
– In recent years, global trade has become increasingly reliant on just-in-time deliveries and digital platforms. In your opinion, can European shipping maintain its competitiveness, and how?
Despite the challenges posed by the COVID-19 pandemic and geopolitical uncertainties, the shipping industry has consistently demonstrated its resilience and adaptability. Digitalization plays a key role in supporting better information sharing across the supply chain, ensuring a smoother flow of goods, and enhancing overall efficiency. It also helps improve the working conditions for seafarers, making the profession more attractive to younger and more diverse talent, which is crucial at a time when the industry faces a growing labor gap.
The EU has also taken steps to ease the administrative burden on the shipping industry. Initiatives such as the upcoming European Single Window environment aim to streamline the reporting of formalities in EU ports by digitalizing the process. While progress is being made, much work remains to be done to further reduce the administrative burden and ensure that European shipping remains competitive in a rapidly evolving global market.
– The green transition is a top European priority. In your view, are there sufficient incentives for shipowners to invest in alternative fuels and green technologies? And what role does the EU play in this?
The recent Draghi Report estimates that the shipping industry will require €40 billion in annual investments between 2031 and 2050 to meet its energy transition goals. Building a robust supply chain for clean fuels in Europe is critical to both the shipping industry’s decarbonization efforts and Europe’s broader climate targets.
The Clean Industrial Deal, a new flagship initiative by the European Commission, presents a valuable opportunity to bolster the international competitiveness of European maritime industries. By aligning shipping, clean energy, and technology producers at the forefront of the green transition, this project can strengthen Europe’s position in the global market.
To accelerate the transition, it’s vital to invest Emissions Trading System (ETS) revenues at both the EU and national levels to support the shipping sector’s energy transformation. This includes bridging the cost gap between clean and conventional fuels—since clean fuels can be up to four times more expensive, making shipping one of the hardest sectors to decarbonize. Additionally, the EU must enforce strong requirements for fuel suppliers to ensure the availability of clean fuels in the market.
– With the re-election of Donald Trump, are there specific concerns about a potential re-escalation of trade wars? How could this affect European shipping?
The EU heavily benefits from free and open access to international markets. European shipping, which represents nearly 40% of the global fleet, positions the EU as a leader in global supply chains and bolsters European security.
Europe’s supply chain security is intrinsically tied to unrestricted access to these international markets. Shipping plays a critical role, facilitating 76% of Europe’s external trade. This, in turn, depends on the EU’s continued efforts to establish and uphold strong bilateral trade agreements.
As Europe works to strengthen its economic security, it is crucial that this does not lead to a rise in protectionism. A protectionist stance would disrupt established trade patterns and potentially undermine Europe’s dominant role in global supply chains, especially as traditional markets face increasing uncertainties. For European shipowners, the key priorities are ensuring open trade, securing trade routes, and investing in strategic international trade partnerships.
– One possible scenario is that the new U.S. administration may seek to reduce its participation in international climate agreements. How does ECSA view this possibility and its potential impact on the green shipping transition?
European shipowners have long supported climate targets at the EU level and continue to collaborate closely with EU policymakers to ensure the effective implementation of initiatives like the ETS and FuelEU. The upcoming Clean Industrial Deal and Maritime Industrial Strategy are key opportunities to further accelerate the green transition in shipping.
However, it is crucial to recognize that shipping is a global industry. To ensure European shipping’s international competitiveness, global regulations are essential.
Shipping is the only sector with uniform climate targets both at the EU and international levels, with the goal of achieving net-zero emissions by 2050. We urge the European Commission to continue its efforts with the International Maritime Organization (IMO) and its member states to secure an agreement on the IMO’s greenhouse gas (GHG) strategy by spring 2025. Aligning EU policies with global regulations is critical for maintaining a level playing field and safeguarding the competitiveness of European shipping on the global stage.