Dear colleagues,
It gives me pleasure to present our 91st annual report.
The last twelve months have truly been a period of great volatility, especially with the advent of the Iranian conflict joining the list of the other areas such as the Black Sea and Red Sea, where trading has become extremely difficult.
The Persian Gulf conflict has created a situation where we have realized the important contribution that the three principal exports of that region have made to our daily lives i.e. oil, LNG and fertilizers.
However, several very volatile months later, we have witnessed how international shipping has risen to the challenge and seen to it that the disruption to our daily lives has been minimized. We have kept the lights on, cars still running, planes flying and, in the case of fertilizers, fields still being ready to grow all our agricultural products.
As to the effects of the above situation, we have seen the tanker market reach record highs this year, unseen before in its history.
The container market has also had a positive year with the various imbalances creating a lot of extra demand.
The LPG market has also had a very positive year with some very good results seen.
LNG has risen from the depths seen last year but the lack of Middle East cargo has seen some very good times and some less good.
The dry bulk market has improved since the beginning of the year, with the large ships in particular seeing some very positive returns.
Against these positive signs one must stress that the world newbuilding orderbook has risen to historic highs in the case of tankers, bulk carriers, container ships and gas carriers. This, on the one hand, may signal a strongly renewed fleet. However, on the other hand, the spectre of an overtonnaged fleet is getting ever closer.
In light of the above, the Greek merchant fleet has the world’s second largest orderbook and the largest in terms of high technology, high specification ships at Japanese, Korean and Chinese yards.
The Greek fleet has been relentlessly selling older less fuel-efficient tonnage in all categories and buying newer more efficient ships, despite having the above mentioned orderbook.
As the Greek fleet is the dominant tramp shipping supplier of tonnage, its vessels have to be the most versatile and competitive ships in the world markets. As a result, it is not possible for such a large fleet not to be able to use very low sulphur fuel since no other fuels have as large availability at this point in time.
All of us want a green, non-polluting future but none of the available new fuels have global availability. One must not forget the dominance that the Greek fleet has within the EU, commanding more than 60 percent of total EU capacity.
When it comes to regulation, it is very important to support the most experienced global regulator, the IMO, who have the greatest experience and will try to pursue global solutions to all the existing issues and problems.
The IMO itself, however, must try and take a global position and not give in to the more vocal and less practical thinking organizations, and instead support the actual tonnage providers in the world.
The issue of future fuels and real solutions to net zero have not been solved in any meaningful way, and a lot more thought must be devoted to long-term solutions, as opposed to pushing forward solutions that have a shelf life of about ten years.
Another area where more thought and flexibility has to be applied is the scrapping of ships. In the first instance the sanctioned fleet, which is older and less well maintained, should be allowed to be scrapped in an easier manner, which would make the existing fleet both safer, younger and more efficient.
Secondly, the combination of the Hong Kong Convention and the Basel Convention make ship scrapping both complicated and costly as not enough eastern recycling facilities are on the approved list.
This has to be rectified at the soonest opportunity.
With regards to the decarbonization debate, we are still too far away from a
credible solution that is fit for purpose for the entire global fleet of ships, be they
in the tramp or liner sectors.
From a logistical point of view, we do not have a fuel that would be available at the necessary bunkering ports in order to serve global trade. Few of the existing alternatives, on a well-to-wake basis, would truly satisfy the objective of reducing shipping’s carbon footprint, especially when the newbuildings on order are themselves so significantly more carbon efficient than the existing fleet.
The shipping industry must be encouraged to continue this quest to make the fleet more efficient rather than accepting what is effectively a penalization such as that of the Net-Zero Framework.
Extra levies and taxes will not create a cleaner future and will only negatively affect the smaller weaker nations, who will have to absorb much higher freight costs in order to get their goods delivered.
There should be more emphasis on the technology providers in the industry such as shipbuilders, engine builders and fuel suppliers to provide the truly groundbreaking solutions that we need.
In all these issues that we have faced over the decades, the G.S.C.C. and the U.G.S. have played a very important role in creating not just the Greek fleet of today but the global fleet whose safety and efficiency has so improved over the decades.
The safe and robust ships of today are the result of many years of striving for improved standards in shipbuilding and ship operation, and of course for more qualitative ships’ comforts themselves to look after our crews, who spend their time at sea away from their families and continue working in a most professional manner. The Greek seafarers have been among the greatest strengths of Greek shipping.
We must continue to train a new generation of Greek officers and crew to handle the ships of today and tomorrow in order to provide the quality of ship management that today’s environment requires.
Greece itself plays an integral part in the strength and importance of its shipping industry.
However, it must do better to make the Greek flag more attractive. This will not happen unless the bureaucracy related to Greek flag ships is not substantially reduced.
At present, it is both time-consuming and unnecessarily cumbersome when flagging and de-flagging Greek ships. This has to improve as does the operational efficiency out of office hours.
Equally important is the area of maritime education. We need more well-trained Greek officers and crew to serve on the ever expanding and more sophisticated tonnage that is joining the Greek fleet.
We need more places in state and privately funded schools. We also need better paid and more teaching staff in order to turn out the high-calibre of seafarer that our fleet needs. The schools themselves must be upgraded.
Today’s seafarers are tomorrow’s owners and chief executives.
Greece should expand its position as a ship management centre. We should not
delegate this responsibility to other parts of the world.
Posidonia 2026 attested to the enormous success of the Greek shipping industry and the record number of exhibitors and attendees proved how important Greece is in the global shipping leagues.
One of the greatest strengths of the Greek shipping industry over the last halfcentury has been the close relationship between the Greek Shipping industry and the Ministry of Maritime Affairs and Island Policy, the Hellenic Coast Guard, and, of course, the Government itself.
Not undermining the progress already made towards the digitalization and the reduction of bureaucracy, we urge the Greek Ministry of Maritime Affairs and Island Policy to drastically reduce the bureaucratic burden involved with vessels flying the Greek Flag or it will lose its significance for Greek managed shipping.
Actions are needed and not just promises.
Without the appreciation of how strong this link is, the Greek maritime cluster would not be as prominent as it is, and shipping would not hold the position of Greece’s second most important export industry. The link must be maintained going forward to guarantee a vibrant maritime sector.
Apart from its close and warm links with the Union of Greek Ship Owners in Greece, the G.S.C.C. prides itself on maintaining a close dialogue with all major international maritime organizations, such as the I.M.O., I.C.S., Intercargo, Intertanko, BIMCO, the EU, national governments, MEPs and the International Group of P&I Clubs. We have P&I Club Chairmen and Directors on our Council.
Our relationship with senior IACS members is also very close, not least due to our presence as individual members on the boards of many National and G.S.C.C. Annual Report
International Committees of leading Classification Societies. We also work together with them to press for ever higher vessel standards in construction and operation.
Being based in London gives us the opportunity to keep close contact with the IMO, the Baltic Exchange (the world’s leading shipping indices provider), the UK Chamber of Shipping, Maritime London, and other London-based organizations.
Finally, I would like to thank our Member Offices for their support, the Council, and the Secretariat for their hard work. Their efforts allow us to continue keeping our membership well-informed and lobby on a global basis in favour of positive practical legislation. When legislation is negative, we make our opinion very well-known, backing it up with well-reasoned arguments.
I am particularly grateful to our Vice-Chairmen, Constantinos I. Caroussis, John M. Lyras and Nikolas P. Tsakos, our Honorary Chairman Epaminondas G. Embiricos, our Treasurer Diamantis Lemos and Deputy Treasurer Dimitri – Frank Saracakis.
My special thanks go to John M. Hadjipateras, Alex J. Hadjipateras and Basil E.
Mavroleon, without whom our monthly reports and other documents would not
be as professionally prepared as they are.
Our technical subcommittee, headed by Dimitri Monioudis, has proven extremely
popular and effective, with active participation by senior technical officers of
member companies in the U.K. and Greece, as well as achieving wider input from
our extensive contact network within the global maritime community (e.g.,
classification societies, consultants, shipbuilders and propulsion manufacturers).
Our Director, Konstantinos Amarantidis, assisted by Maria Syllignaki and Vasso
Giadikiaroglou, continues to run the Committee smoothly and very professionally
and I thank them for their sterling efforts.
This speech would be incomplete if we didn’t acknowledge the huge role that our
seafarers play in this great industry. The daily sacrifice that these men and women
make in ensuring the safe manning of all the world’s ships and the professionalism they possess in the way they do their job is second to none.
We owe them our gratitude.
GSCC Chairman, Mr. Haralambos J. Fafalios.
Viwers can log to the link here below and read the full report:
For viewers’ easy reference, the table of contents of the above link’s report, has as follows:
Table of Contents
From the Chairman ………………………………………………………………………………………………….. 2
G.S.C.C. Council Members 2024 – 2026………………………………………………………………………7
Fleet Statistics …………………………………………………………………………………………………………… 8
The World Fleet ………………………………………………………………………………………………………… 8
The Greek Controlled Fleet ………………………………………………………………………………………. 8
Developments in Greece ………………………………………………………………………………………… 10
Economic Outlook…………………………………………………………………………………………………… 10
Other News …………………………………………………………………………………………………………..… 12
Developments in the UK ………………………………………………………………………………………… 13
Economic Outlook………………………………………………………………………………………………….. 14
Other News ………………………………………………………………………………………………………….… 15
Decarbonization …………………………………………………………………………………………………….. 17
IMO Developments ……………………………………………………………………………………………….. 17
EU Developments …………………………………………………………………………………………………. 19
UK ETS ……………………………………………………………………………………………………………….….. 21
Fuel Transition Pathways ……………………………………………………………………………………….. 22
ECAs………………………………………………………………………………………………………………………. 26
US – China Port Fees………………………………………………………………………………………………. 28
Hormuz Crisis ……………………………………………………………………………………………………..… 31
Piracy ……………………………………………………………………………………………………………………. 33
West Africa …………………………………………………………………………………………………………… 35
East Africa ……………………………………………………………………………………………………………. 35
Asia……………………………………………………………………………………………………………….……… 36
Cyber Security …………………………………………………………………………………………………….. 38
Ship Recycling …………………………………………………………………………………………………….. 40
Ship Building ………………………………………………………………………………………………………. 44
Activity ………………………………………………………………………………………………………………… 44
Yards ………………………………………………………………………………………………………………….… 46
Panama Canal ……………………………………………………………………………………………………… 49
Suez Canal …………………………………………………………………………………………………………… 54
Sanctions Against Russia …………………………………………………………………………………….. 59
US Sanctions Against Venezuela …………………………………………………………………………. 63
US Sanctions and War against Iran ……………………………………………………………………….67
