FEPORT Newsletter February 2025

For Odessa and the Ukrainians

Since the start of the Russian invasion of Ukraine, the port of Odessa has been the target of bombings and very soon many Europeans started to understand how vital this port is not only for Ukraine but for Europe and other regions outside the EU.

Indeed, beyond the deep geopolitical, economic, and humanitarian consequences, the bombing of the port of Odessa has been an eye-opener on the role of Ukraine and its ports for global grain exports, trade, and military logistics.

Ukraine is one of the world’s top grain exporters (especially wheat, corn, and sunflower oil). Attacks on grain terminals have immediately worsened food insecurity, especially in Africa and the Middle East.

To handle the significant ripple effects of the attacks on Odessa’s terminals on European ports, global trade, and supply chains, Ukrainian grain and other exports had to be redirected by rail and truck to European ports like Constanța, Gdańsk and Hamburg and other European ports.

Shipping companies avoiding Black Sea routes due to missile threats had to pay skyrocketed insurance rates to return to the Black Sea and countries relying on Ukrainian exports faced longer delivery times. Odessa’s attacks also affected oil and gas transit, making energy security a bigger issue for Europe.

As we are commemorating the three years of the war in Ukraine, it is worth remembering that beyond the political and economic considerations and depressing statistics about deaths, as in all war theatres, behind figures, there are people.

People whom we see every day on our TV, computer and smartphone screens are certainly discouraged and desperate about the future. We should not get used to suffering or surrender.

What is currently taking place in the White House, far from Europe, is not just about the end of the war in Ukraine. What will be agreed upon regarding Ukraine will continue to have significant cascading effects on the EU and the rest of the world.

The cost might be extremely expensive, and it will not be only about grain related logistics and the reorganisation of our supply chains.

Dear colleagues, guests, and friends,

The EU’s maritime cluster plays a critical role in global competition on digital dominance and decarbonization. While the EU is not as prominent as the U.S. in digital technologies or as aggressive as China in renewable energy production, it is crucial that future EU support measures scale up in driving sustainability and innovation in the maritime sector.

The EU maritime cluster encompasses shipbuilding, shipping, ports, marine technology, and blue economy sectors. The EU is home to some of the world’s leading shipping companies, innovative shipbuilders, and advanced port superstructures operated by competitive world class players.

However, Asian shipyards, particularly in South Korea and China, dominate commercial shipbuilding, making it hard for EU yards to compete on cost. High costs of alternative fuels and retrofitting vessels also pose barriers to rapid decarbonization. Some lessons are to be learnt, and strong measures to support the competitiveness of the entire maritime sector must become a priority.

The way in which European policymakers look at the value of the maritime ecosystem must evolve as all industries that are part of the cluster play a decisive role and are totally interdependent.

During the eighth FEPORT Stakeholders Conference, we will, among others, discuss the competitiveness of the maritime and port sectors, trade policies that are required to give access to markets in the EU and outside the EU for all players; and how reciprocity can rebalance our relationship with our competitors.

We are looking forward to having an interesting conversation with our high-profile speakers and guests on how the EU can be more offensive and assertive towards its competitors.

The conference will start at 9:00 am and conclude at 16:30 pm. It will include opening addresses followed by two moderated sessions and exchanges with the audience.

We look forward to welcoming you on April 9th, 2025.

The FEPORT team