Editorial of Ship&Offshore 1/2023: Harnessing the potential

2023 is only a few weeks old but for many, the turn of the year may already be only a distant memory. Too much is happening: almost every day there are new developments to which society, politics and industry must adapt.

Globally, the Russian attack on Ukraine continues to dominate the agenda. For almost a year now, the people of Ukraine have been subject to unimaginable hardship under Putin‘s imperialist fantasies; for almost a year now, war has been back in Europe.

The aftermath of Covid-19 is also still being felt in many places, the consequences of climate change are becoming increasingly apparent, inflation continues to rage, and there is a shortage of skilled workers everywhere. Against this backdrop, it is difficult to look ahead to the coming months with optimism. The various sub-segments of the maritime industry, be it shipowners, ports, suppliers, shipbuilders or offshore and marine technology firms, continue to find themselves in an exceptional situation.

However, while we can’t predict what the future holds, a realistic view upon 2023 may reveal some exciting prospects not only, but also for the maritime sector – alongside the serious challenges that need to be tackled.

In addition to the fight against climate change, one of the most important issues is and remains the security of energy supplies in Europe.

Interestingly enough, Germany, which is sometimes hampered by its rigid bureaucracies, set some good – and fast – examples in this respect. Several floating LNG terminals have been connected to the grid in northern Germany within a very short time; additionally, the award of contracts for two urgently needed converter stations for offshore wind energy has also been massively accelerated.

The opportunities that are opening up in the industry are huge. The demand for supply and maintenance ships alone, not to mention crew transfer vessels, may result in attractive business cases for specialised local shipbuilders. Now it’s time to harness the potential and, above all, not let the reins be taken out of our hands. Here, of course, it is once again up to the politicians to create the appropriate framework and – if possible – to compensate for any competitive disadvantages caused outside of Europe.

Speaking of regulatory framework – this leads us to the next, very relevant, matter that will be at the very top of at least every shipowner’s and ship manager’s lists of attention this year: with the Energy Efficiency Existing Ship Index (EEXI) and the Carbon Intensity Indicator (CII), two new statutory requirements entered into force on January 1st.

And while we do not want to go into the textual details of these regulations again at this point, it is important to mention that there are manifold ways to meet these standards which offer many promising options – especially for the supplying industry. In addition to the mechanical improvements that can be reached, such as through the application of air lubrication, new propellers, engine adaptations etc., operational adjustments, such as real-time voyage monitoring, just-in-time arrival, can also generate interesting efficiency gains which are available immediately. The profitability and attractiveness of particular ships are likely to depend heavily on CII ratings in the future, i.e., the carbon intensity of the shipped cargo.

Of course, only time will tell what exactly the ratings will achieve, also with regard to possible retrofitting of the existing fleet and the real reduction of CO2 emissions.

However, while the IMO’s processes are sometimes criticised for taking too long – partly because of the organisation’s consensus-based procedures – it is now quite possible that these two indices will provide an effective tool to assist the industry in its drive towards climate neutrality.