Dry bulk sector on upward trend as it looks to future green goals, says INTERCARGO

Kostas Gkonis, Director & Secretary General of INTERCARGO, has said the sector’s prospects are positive in the medium term.

Within this global recovery, the Association is reportedly seeing a major contribution from China where a third of trade takes place, while inflationary pressures continue to dampen economic activity around the world and, as a result, are impacting the key trades of iron ore, coal, and wheat/grains. At the same time, a historically low orderbook, together with bulk carrier scrapping, mean only modest fleet growth of 2% is likely over 2023.

Looking to the future Gkonis has advised that shipping can no longer afford to be an activity “largely unperceived by the broader societal and economic environment.” Environmental, Social, and Governance (ESG) provide the toolkits for risk management in setting course into a sustainable future; a distinct narrative that is much larger than decarbonisation.

For shipping’s decarbonisation efforts to be successful, a “a holistic approach” is required, according to Gkonis. He also said:

“Decarbonisation is a multi-stakeholder challenge beyond the boundaries of our industry. It is well known that shipping emissions are hard to abate for a fossil fuel captive industry.

“For the dry bulk sector, the idiosyncrasies of the tramp model ask for even closer collaboration to ensure better understanding of the challenges, as well as the delivery of effective solutions.”

Gkonis also identified particular challenges for the dry bulk sector including ships sailing in irregular trade patterns rather than along fixed routes.

“The ‘Green Corridors’ concept, although relevant to some type of vessels, is not really suitable for the majority of bulkers. Dry bulk shipping needs ‘Green Hubs’.

“It is difficult to imagine that alternative fuels will be available in all ports in the short and medium term so a multi-fuel pathway for the bulker tramp shipping model is much more challenging.”

Read the article online at: https://www.drybulkmagazine.com/dry-bulk/18042023/dry-bulk-sector-on-upward-trend-as-it-looks-to-future-green-goals-says-intercargo/