KPMG in Greece published the survey “The Future of Shipping”, analyzing the seaborne trade, and presenting the role and viewpoint of the Greek shipowners in the global market.
The study focuses on identifying new trends, development opportunities and challenges posed by the digital transformation, as well as on the pathway to “Green Shipping” based on global regulatory standards.
Greece at the top
KPMG notes that Greece ranks 1st globally in ownership of merchandise vessels, presenting a 28% increase in owned capacity in the last five years, while the average vessel’s size is almost double, which indicates that Greek ship-owners mostly operate in high volume markets.
Also, recent data show that Greek ship-owners are heavily investing in growing their fleets with new buildings, maintaining the average age of Greek-owned fleet’s lower than the global average.
More specifically, Greece ranks 1st globally in ownership of merchandise vessels, presenting a 28% increase in owned capacity the last five years.
The country’s average vessel’s size is almost double compared to global average of 39k tons, a fact which indicates that Greek ship-owners mostly operate in high volume markets.
In terms of flagship, Greece rank 10th with 3% of global fleet (in capacity terms) to be registered in the Greek register.
As for the top-15 key players in the Greek shipping industry, according to fleet size, the KPMG survey concluded to the following:
- Navios Maritime Holdings
- Angelicoussis Group
- Star Bulk Carriers
- Dynacom Tankers
- Costamare
- Cardiff Group
- TEN
- Laskaridis Shipping
- Thenamaris
- Eastern Mediterranean Maritime
- Minerva Marine
- Alpha Tankers
- Danaos Shipping
- Stealth Maritime Corporation
- Marmaras Navigation
Sector’s size and growth
According to the study, shipping represents up to 90% of global trade in terms of capacity. Sector’s historical growth is strongly related to the global economy as major political, economic and social events/ periods affected directly the demand for shipping services.
Namely, the global economy is set to expand 5.6 percent in 2021 – its strongest post-recession pace in 80 years. This recovery is uneven among developed and developing economies and largely reflects sharp rebounds in major ones.
- Projections are subject to significant levels of uncertainty since global demand could probably be directed to services and travel instead of products;
- This possible transition could reduce the demand for shipping services;
- Unforeseen global trade restrictions and commercial tension between global leading producers could also modify the picture of an industry which will steadily grow the next few years;
- The establishment of the African Continental Free Trade Area (AfCFTA-2021) will benefit shipping since the AfCFTA covers 55 countries with a combined GDP of USD 3.4 trillion (around 3% of global GDP) and 1.3 billion people.
Furthermore, the increased demand of manufactured products during the COVID-19 era, boosted mainly container freight rates. BDI also hit 13-year high approximately 1 year after the first severe global virus outbreak.
The pathway to green shipping
In April 2018, the Initial IMO Strategy on Reduction of GHG Emissions from Ships was adopted to enhance IMO’s contribution to global efforts in reducing GHG emissions from international shipping. Now, KPMG presents 7 key milestones that aim to achieve the environmental goals:
#1 IMO’s first regulatory measure: IMO developed the concept of EEDI and SEEMP at MEPC 62 to improve the energy efficiency of the new and existing ships at the design and operation level.
#2 Developing of alternative fuels: LNG, green hydrogen, sails and batteries are all alternative solutions that shipping is currently using to a greater of lesser extend in order to reduce its emissions.
#3 Efficient technologies: Digitalization regarding the processes in ship operation and system integration for the efficiency and safety of vessels is a promising new trend.
#4 Transparency and Data Accuracy: Transparency and data accuracy can help the shipping industry to proactively and efficiently manage disruption in its supply chain. Finding a balance to effective and financial-wise results is important to every business.
#5 The power of ESG: ESG investing, popularly known as the ‘sustainable investing’, is the three relevant factors that are used when screening the ethical and sustainability effect of an investment in a company or business.
#6 Carbon pricing: Since carbon tax uses well-established channels of tax system and does not require new infrastructure such as the cap and trade do for its trading allowance, its global implementation by IMO will be easier.
#7 Including sustainability: Looking at the various shipping line goals, such as those of Maersk Line, Hapag-Lloyd, CMA CGM partnered with Energy Observer and MSC to name a few, carbon neutrality, retrofitting, research and development, alternative fuels and zero emission vessels are common among them.
EXPLORE MORE AT THE KPMG REPORT ON THE FUTURE OF SHIPPING
