The German Shipowners' Association (VDR) has published new data on the situation of the German shipping industry. President Gaby Bornheim and CEO Martin Kröger were able to report positive developments despite a difficult geopolitical environment for the shipping industry: Overall, Germany continues to have the seventh largest merchant fleet in the world and remains world leader in container shipping. Recently, significantly more young people have also opted for a career in the shipping industry.
Shipping
is increasingly confronted with challenges caused by wars and conflicts. The
Red Sea has become unsafe for navigation owing to attacks on merchant vessels
by Houthi rebels, a situation stemming from the ongoing conflict in the Middle
East. Large parts of the Black Sea remain a war zone and high risk area for
shipping due to Russia's attack on Ukraine. Additionally, the strain between
China and Taiwan, along with tensions in the South China Sea, are continuously
intensifying.
"The
current geopolitical developments are worrying. Even though the shipping
industry is in principle crisis-tested and can react flexibly to new
geopolitical conditions, stability and security are essential in the long term.
If maritime supply chains continue to be constantly disrupted, at some point
our sea-based supply will be at risk," explains VDR President Gaby
Bornheim. Germany conducts approximately 60 percent of its import and export
activities via shipping routes, facilitating the entry of essential goods such
as energy, food, clothing, technology, furniture, and medicines into the
country.
"Maintaining a robust merchant fleet within the country is, and
continues to be, of paramount importance for Germany. The encouraging current
figures highlight the stability of the German merchant fleet," says Martin
Kröger, CEO of the VDR.
At
the end of 2023, the German merchant fleet consisted of a total of 1,800 ships
(previous year: 1,839 ships) with a gross tonnage (GT) of 47 million (previous
year: 44.8 million GT). This means that Germany remains the seventh largest
shipping nation in the world. Greece, China and Japan occupy the first three
places in this order. Germany remains the leader in container shipping (29
million GT), ahead of China (28.1 million GT).
The
majority of German shipping companies are small and medium sized enterprises.
80 percent of the companies have fewer than ten ships. 881 ships in the German
merchant fleet fly the flag of an EU country at the stern, among them 259 the
German flag, 386 the flag of Portugal, 135 the flag of Cyprus, 41 ships the
flag of Malta, and 60 the flag of another country of the EU. Therefore, every
second German ship sails under the flag of an EU country.
Attracting
and competing for young talent is of critical importance to the shipping
industry. Thus, it is heartening to observe that the number of new training
contracts in the shipping industry for the 2023 training year has increased by
approximately eleven percent compared to the previous year. Last year, 418
young people started training at sea (previous year 377) and 214 on land
(previous year 192).
"The
future of our shipping sector hinges on the skills and enthusiasm of
well-trained young individuals. Their contribution is essential for advancing
and future-proofing shipping in Germany. It is encouraging to see a growing
interest among the youth in pursuing careers in the shipping industry. We
remain committed to drawing young talent to maritime professions, reinforcing
the notion that shipping is an attractive and promising field of work,"
says VDR President Bornheim.
One
of the biggest challenges facing shipping is the transition to climate-neutral
operations by 2050. The industry is undertaking significant efforts and
investments to realize this goal. In a landmark decision, the European Union
has resolved to incorporate maritime shipping into the EU Emissions Trading
System starting in 2024. Consequently, shipping companies will be required to
compensate for their CO2 emissions within the EU and acquire emission rights.
"We
endorse the principle of emissions pricing, recognizing it as a potentially
effective tool for enhancing climate protection," says Martin Kröger.
“Nevertheless, it is imperative for the German government to now promptly
specify the modalities of integrating shipping into the emissions trading
scheme, as a legislative proposal to transpose the european regulation into
national law has yet to be presented. For us, the cornerstone of our operations
is not only planning certainty but also the assurance of uniform competitive
conditions on an international scale. While we support emissions pricing as a
policy measure, it must be implemented consistently across the globe. The
fragmented approach of regional specificities is untenable for global shipping
and undermines effective climate protection. Furthermore, we seek to avoid the
redundancy of compensating for the same emissions more than once," says
the VDR CEO.
All
new data on German merchant shipping can be found at: www.reederverband.de/en/facts-figures-maritime-shipping-germany