Shifting regional economies have introduced new pressures for ship owners and operators assessing investments in decarbonisation technologies, writes Aleksander Askeland, Chief Financial Officer at Manta Marine Technologies.
The newly introduced protectionist U.S. tariff policy — including the announcement of soon-to-be-implemented U.S. port fees for Chinese-manufactured vessels (which comprise a significant portion of the global fleet) — has already seen the announcement of responding tariffs from China, exacerbating fears of a US-China trade war and potential economic downturn.
This sits alongside abrupt shifts in the energy market, impacting fuel costs and availability. Longer term concerns around research and development of alternative fuels, as well as the availability of essential infrastructure to support decarbonisation, are also in flux.
The pressure is on, and the margin for error feels smaller every day as shipping’s CEOs weigh these variables in their financial decision-making.
However, despite the upheaval in trade markets, shipping’s commitment to decarbonisation remains paramount — and the risks of non-compliance are as significant as ever.
Most ship owners and operators will be only able to afford a limited number of technologies to support their decarbonisation efforts, based on their financial capacity. The technology in question is likely to impact existing models of operation and require amendments, adding new operational risks to this scenario.
These operational risks have the potential to compound financial risk — particularly if a shipping company has taken the grand leap of major investment in a single technology or alternative fuel to future-proof their vessel or fleet.
In this market, emissions reduction technologies need to be proven, independently verified, and viable to scale. Ship owners and operators also know that technologies retrofitted onboard need to be balanced with commercial considerations, such as time in drydock or training for crew.
Green technology providers like Manta Marine Technologies are trusted partners in mitigating these risks — understanding the financial and operational drivers around shipping’s decision-making, evolving and streamlining approaches, collaborating on solutions, and tackling the new challenges that emerge as our industry progresses.
Want to know more? Find the article freely available at Seatrade Maritime: Managing risk with decarbonisation investments