A clearer view of the big picture

The shipping industry is in some ways, back where it was a decade ago. Uncertainty about what shape future environment regulations will look like and what impacts they will have on the market are already having tangible effects.

While the slowdown in new vessel contracting has been replaced by a rush to order tonnage with dual fuel propulsion or as much optionality as possible built in, there are still major question marks.

In the meantime the Pandemic has cast a cloud over the potential for business to operate as usual and the bounceback from the first wave of disruption has caused a supply chain crisis so intense that even the mainstream media has taken notice.

COVID-19 will continue to have an effect going forward but at the same time, owners and operators must once more try to determine their most effective path to regulatory compliance while continuing to maintain profitability.

Regulatory uncertainty remains the issue of greatest concern according to a recent poll conducted by Lloyd’s List. More than 45% of the respondents cited regulatory uncertainty as being the greatest risk to shipping businesses over the next five years, indicating a growing concern over the pace and uniformity of climate measures due to be imposed on the shipping sector.

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