00:00Global shipping bosses are warning of a perfect storm of pressures hitting the industry as tensions in the Middle East
00:06continue.
00:07Shipping, which moves 90% of global trade, is being squeezed by soaring energy costs, geopolitical instability and unclear environmental
00:16rules.
00:17Nearly 7 in 10 executives say the uncertainty is making it harder to make key decisions.
00:22The survey was carried out by Finland's marine technology company, Wattisla.
00:27Hakan Agneval is president and CEO.
00:32I would say as long as we don't see an escalation of the conflict where you really start to destroy
00:40important energy infrastructure,
00:44I think we can see a fairly quick recovery when the parties can get together and hopefully make an amicable
00:52agreement, so to say.
00:53Now, it will be different if both parties start to really destroy the energy infrastructure.
00:58So these are the short terms.
01:00I mean, we clearly also see short-term impact on container availability, etc., etc.
01:04But I think we can also see a fairly quick recovery if and when there is an agreement.
01:10If we look at the more long-term ramifications, because I think this is something to reflect upon.
01:16I think this is once again in an era of increased geopolitical tension.
01:25Energy is coming top of the agenda, on the political agenda.
01:30And it is becoming a topic of national security.
01:35It's becoming a topic of national sovereignty.
01:39And in this world of volatile energy prices and geopolitical instability that you outline, how do shipping companies decide where
01:47to invest?
01:50So, basically, when you invest in shipping, you need to have a long-term perspective.
01:55Yes, we have short-term, you know, a very dynamic and volatile situation.
02:02I think investments very much are looking at how do I create fuel flexibility and fuel efficiency.
02:09The decom transition will take place over the coming decades.
02:12So it's really how do I deal with that with flexibility and fuel efficiency?
02:18You talk about decarbonization.
02:20I thought that was really interesting that two-thirds of shipping leaders say that environmental rules are unclear, yet decarbonization
02:27is urgent.
02:29So how do you balance these huge investments with uncertain payback?
02:36So, basically, if you're a ship owner today, you need to have a 25 to 30-year time horizon because
02:43that's the lifetime of a vessel if you build it today.
02:46And ship owners, they will, you know, they need to de-risk 25 years going forward.
02:54And then you cannot only focus on, you know, what is here today, but you need to take a strategic
03:00view.
03:01How is the world going to develop?
03:03How is regulation going to develop?
03:06How is fuel availability going to develop?
03:08And there is uncertainty around that, but there are a couple of things that are certain.
03:13You can deal with the situation by having fuel flexibilities.
03:16You can adapt.
03:17And you need to continuously work with your operational excellence and fuel efficiency to stay competitive.
03:23Now, China handles a huge share of global trade.
03:28I wonder how you think that the country is positioned in this shifting shipping landscape.
03:35Now, China is a formidable player, both in the building of ships, more than half of the world's shipping capacity,
03:42but also many of the major ship operators, they are Chinese.
03:46I think one of the key things is, of course, MEPC 83, wasn't the decision that the vote on establishing
03:55the global carbon pricing mechanism was delayed.
03:59Let's see what's happened.
04:00I think the challenge that the industry is facing, we might enter an era where we will see a fragmented
04:06landscape of carbon pricing mechanism.
04:08Europe will have its carbon pricing mechanism, China is contemplating, and if we cannot get together, it will create even
04:18more complexity for the ship operators in the world.
04:23Now, in terms of decarbonizing the marine industry, China is very much engaged in MEPC 83.
04:29China was actually one of the parties that supported the introduction of a global carbon pricing mechanism.
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