On the occasion of GSCC vassilopitta (New Year’s pitta) the chairman Mr. Charalambos Fafalios, referred to the latest shipping and geopolitical developments described the current conditions in each shipping sector and expressed his expectations for the New Year.
Last year Ukraine has become a war zone and the effects of this conflict have been more far reaching than we would have ever imagined.
All of a sudden, commodity prices rose briskly, supply routes changed and trade patterns have altered to a degree that we would not have envisaged.
The result has been positive for some sectors of shipping and negative for others. If we look at dry commodities Ukraine was mostly a very short haul exporter therefore replacing their grain and coal exports has had a very beneficial effect on tonne miles. The resulting sanctions on Russian exports such as oil and gas have also been very positive for the tanker and gas carrier markets.
However, we should never forget the sad consequences for the citizens of Ukraine who are living through this unnecessary conflict with great loss of life.
World shipping has to navigate in this global environment whilst at the same time trying to reduce its carbon footprint appreciably.
It must never be forgotten that shipping has always made a virtue of creating ever more energy efficient ships and reducing its fuel footprint per tonne of cargo carried.
The issue of what future propulsion method will be adopted or what fuel is chosen, is still anything but settled as an issue.We are still awaiting engine and ship builders to come up with real green solutions.
It is very important to stress that we support the IMO exclusively and not the many regional markets because we need global solutions and not regional efforts.
In the short term, we must be patient and realise the real benefits of EEXI. The operational index, CII, another short-term measure in the IMO roadmap seems to have no respect from either charterers or shipowners. World shipping is too complex to try and use rather simplistic measures for vessels fuel efficiency.
Looking back over the last 12 months, the fates of various shipping sectors have almost been a rollercoaster ride. The container market, which saw the highest freight rates ever last year, is now languishing at levels which are 80-90 percent below their peaks and with a disturbingly large order book. The tanker market rose from the doldrums and even now various sectors are performing very well. The LNG / LPG markets also have seen some historically high freight rates and the order book has risen to very high levels. The car carrier sector has also risen from its pandemic level lows and is rewarding its owners well at the moment. The dry bulk market, which started 2022 strongly is now at rather disappointing levels and it is uncertain as to what may bring about a turnaround. Its fleet is the largest on record and the orderbook although historically low is certainly not negligible.
Against this background, the Greek controlled merchant fleet, amongst the largest in the world, is getting younger by the year due to judicious second-hand sales and a substantial orderbook of low carbon high technology newbuildings in all sectors.
We still urge the Greek government to improve the maritime education system and allow more private education establishments. If bureaucracy is greatly reduced, the Greek flag itself will benefit.
Through conflicts, pandemics, bad weather and difficult circumstances, the men and women who are part the shipping industry including our seafarers are the unsung heroes that make world trade possible and so positively impact our way of life. Governments should enshrine this status with deeds and not only with words!
ELNAVI Newsletter
More information: ELNAVI,
19, Aristidou str., Piraeus 185 31,
Tel.: +30 210 45.22.100, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.