Greek Shipping at the Forefront of Global Trade and Commerce
Capital Link
Investor relations, financial communications, advisory firm-14 forums : Maritime, Commodities & Energy, MLPs, CEF & ETFs
Panel Discussion Speaker Highlights
9th Capital Link Maritime Leaders Summit – Greece
This panel discussion at the 9th Capital Link Maritime Leaders Summit on June 3, 2024, in Athens during Posidonia Week, brought together leading Greek shipowners who discussed the current market state, highlighting strong cash flows, disciplined investments, and market inefficiencies creating strong market fundamentals. Additionally, it emphasized the impact of upcoming environmental regulations and the strategic importance of maintaining an efficient modern fleet.
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Moderator: Mr. Rahul Kapoor , Vice President, Global Head of Shipping Analytics & Research – S&P Global Commodity Insights
Panelists:
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Highlights:
Current Market, Investments, and Industry Challenges:
Market Specifics:
Environmental Regulations:
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Link to Session Replay:
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Panel Discussion Speaker Highlights
Mr. Rahul Kapoor, Vice President, Global Head of Shipping Analytics & Research – S&P Global Commodity Insights, stated: “Greetings from Singapore, it’s a pleasure be here for the 9th Capital Link maritime leaders’ summit. This panel will focus on the current state of the market and on how Greek shipping is preparing for what’s coming. Shipping groups have enjoyed great cash flow over the last few years, and seem to have a new found discipline in their investment strategy. On the flipside of that, these are times of geopolitical uncertainty when even the basic principle of freedom of navigation is challenged.”
Mr. Aristides Pittas, Chairman & CEO – Euroseas Ltd. (NASDAQ: ESEA) & EuroDry Ltd. (NASDAQ: EDRY), stated: “ All markets are doing quite well right now. Wars and disruptions create inefficiencies and therefore result in a good market for shipping. Our group focuses on dry bulk and containerships. The dry bulk order book is extremely small, also due to the fact that the capacity to build new ships is not there. Shipyards estimate the delivery of current orders between 2027 and 2028, so that’s already 3 or 4 years down the line.
There are similarities with the previous market peak in 2005-2007, but back then China had lots of extra capacity at the yards. Today, that’s not the case. There is scarcity of employees even in China, so prices will probably go higher rather than lower, also due to inflationary pressures.”
Mr. George Youroukos, Executive Chairman – Global Ship Lease (NYSE: GSL), stated: “The recent developments in the Red Sea were unexpected but welcomed in the container industry from a business perspective. It’s a cascade effect: The Red Sea blockages created port congestion, and also a shortage of boxes to put the goods in. Similarly to the Covid era, disruptions are playing a huge role and are affecting freight rates. Also, there’s a restocking of goods taking place in the US.
Warren Buffet has said that it's wise for investors “to be fearful when others are greedy and to be greedy only when others are fearful”. Whether you’re a public or private company, it makes no difference in investments. When the market is low and things look gleam, go big. You have to be brave and stick to your policy both for new buildings and second-hand ships. Having extra cash in your pocket should not be a driver for investment.”
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Mr. John Dragnis, CEO – Goldenport Group, stated: “We have about 45 vessels in the water, mostly product tankers and containers, with more to come, which are currently under construction in China. The demand is strong, thanks to China trading large quantities of grains, soy beans, and coal. The need for an efficient modern fleet is there, since minimizing energy consumption gives you a strong advantage. One more aspect to consider is that COSCO is looking at ordering across various sectors, which could lead to fewer building slots in China, which is the major ship building nation. Greek shipowners are also active in Japan, where there is also demand from the local shipping community. There are no shipyards capable of building large amounts of vessels at the moment.”
Mr. Polys Hajioannou, CEO – Safe Bulkers Inc. (NYSE:SB), stated: “We would like to thank Capital Link for organizing this excellent event during Posidonia.
The year 2024 signals a substantial drift towards the implementation of environmental regulations. Vessels are now classified by the IMO on the basis of the carbon dioxide emissions as expressed by their Carbon Intensity Index in tones of CO2 per tone-mile, their CO2 emissions are now taxed through the EU ETS, while additional regulations are expected to apply from 2025 onwards in the EU in relation to fuel carbon content FuelEU Maritime Regulation and later probably after 2027 worldwide, through the IMO Global GHG Fuel Standard. In this environment and based on our ESG strategy we took action early on since 2020 amongst the very first, for the gradual renewal of our fleet, through newbuild orders of the most efficient vessel designs complying with IMO EEDI Phase 3 regulation, the environmental upgrade of all of existing fleet, the sale of older vessels and the replacement with younger second-hand vessels, actively tracking our progress against key ESG metrics, demonstrating transparency and accountability. As a result of this actions Safe Bulkers is very well positioned today to compete on the basis of the environmental performance of its fleet. On the social front, Safe Bulkers acknowledging the importance of social well-being is taking initiatives including annual maritime cadets scholarships and annual academic scholarships promoting the maritime professions culture amongst youth of local communities.
On the operational level, starting June 1st, we implemented voluntary a new computerized Integrated Management System in compliance with DryBMS Standards, a comprehensive framework ensuring compliance with international maritime regulations, ensuring the competence and commitment to the highest ?level of performance in terms of safety, health, security and pollution prevention for our fleet, going beyond compliance with international legislation, recognized guidelines and common practices across the industry, providing us with the opportunity to work closely together with our charterers in raising industry standards.
I would like to congratulate Capital link for an excellent forum and point out that a strong European maritime sector is crucial during periods of geopolitical instability and trade route disruptions. This necessitates the EU having greater control over its fleet by encouraging vessels to register under European flags. The Cyprus Flag presents a compelling option, aligning perfectly with Safe Bulkers' commitment to responsible operations. It upholds the highest standards in safety, security, and environmental regulations. Additionally, the registry boasts a streamlined registration process and clear communication channels, ensuring operational efficiency and transparency. For Greek shipowners, the Cyprus Flag represents a natural alternative, highlighting the critical need for a robust European flag and at the same time fostering collaboration and close ties within the respected Greek shipping community.”
Mr. Stamatis Tsantanis, Chairman & CEO – Seanergy Maritime Holdings Corp. (NASDAQ: SHIP) & UnitedMaritime Corporation (NASDAQ: USEA), stated: “Market fundamentals along with geopolitical uncertainty and events that are impactful in the short-term create a complex situation. People are waking up to the fact that we’re underbuilding, and that there’s going to be a severe undersupplying of ships for the next years. We’re indeed hearing about the collapse of major real estate companies in China, and yet the country imported 10% more materials in 2023, which is a major increase. China is still here, their manufacturing capacity is very strong, and they still produce steel, in a time when global demand for it is very high. They produce one of the most important materials the world needs for industrial production purposes.”
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9th Capital Link Maritime Leaders Summit – Greece “Dashing Ahead - Leadership in Action”
Monday, June 3, 2024 | Four Seasons Astir Palace Hotel, Athens, Greece
In Partnership with ABS. Part of Posidonia Week.
For more information, visit here:
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