Singapore looks ahead with confidence as the shipping industry evolves

NEXT week, the top people from the global shipping industry will once again be gathering in the Republic for Singapore Maritime Week (SMW).

The event, or in reality a collection of many events, comes at a time of profound change and uncertainty in the shipping industry worldwide, and of course it comes as geopolitical instability is also leaving its impact on the sector.

From a scan of the week’s programme, it is obvious that nobody could hope to attend everything that will take place, and not by a long shot. There is simply so much going on.

The international nature of SMW is highlighted by the fact that, following an opening statement by Minister for Transport and Minister-in-Charge of Trade Relations S Iswaran, the keynote speech will be given by the Secretary-General of the International Maritime Organization (IMO) Kitack Lim.

The IMO secretary-general is certain to include the challenge of decarbonising shipping in his address which will be followed by an SMW Leaders’ Perspectives session. This will be a panel discussion on the topic The Maritime Green Transition in the Current Global Economy.

SMW has brought together some of the heavyweights of the shipping scene to examine this crucial issue. Set to take part are Hing Chao, executive chairman of Wah Kwong Maritime Transport Holdings, Laurent Olmeta, Apac chief executive officer of CMA CGM (Singapore), Abhishek Pandey, global head of shipping finance at Standard Chartered, and Christopher Wiernicki, chairman, president and chief executive officer of American Bureau of Shipping.

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The session will be moderated by Caroline Yang, president of the Singapore Shipping Association and vice-chair of the International Chamber of Shipping.

No doubt the panellists will have in mind that the European Union has just decided to push ahead with including shipping in its Emissions Trading System and Fit for 55 package. Meanwhile, this July, the IMO is expected to adopt a revised Strategy for Reduction of GHG Emissions from Ships.

Unsurprisingly, decarbonisation will be a major topic at pretty much every event. Among the high-profile forums is the Advanced Maritime Leaders’ Programme (AMLP). The AMLP brings together senior maritime leaders heading maritime administrations and port authorities to discuss the issues and challenges confronting the maritime industry today.

Other prominent gatherings include the MarineTech Conference where global leaders and industry experts will share their thoughts on key growth areas for investment, emerging technology trends, startup showcase, and demand outlook for maritime technology. Then there is the long-running Sea Asia conference and exhibition organised by Informa Markets and the Singapore Maritime Foundation. Over 300 exhibitors from 70 countries are expected to showcase their products and services.

Just ahead of SMW, and also on the theme of reducing shipping’s carbon footprint, it has been announced that the Maritime and Port Authority of Singapore (MPA) and Shell Eastern Trading Pte Ltd (Shell) signed a memorandum of understanding (MoU) to expand collaboration on the maritime decarbonisation efforts in Singapore. Under the five-year MoU, MPA and Shell will work together to advance the adoption of electric harbour craft and the development of low-and-zero-carbon fuels in Singapore.

To support the adoption of electric harbour craft, MPA and Shell will identify energy-related development opportunities. These include collaboration on charging infrastructure for electric harbour craft. Both parties will also work together on the research and development of low-and-zero-carbon fuels. This includes the training of crew in the handling, operations and maintenance of vessels operating on such fuels.

This is just one of many initiatives underway in Singapore for it to be ready for the transition to zero carbon. However, there are also many immediate and pressing concerns.

Several of these will be addressed at the Singapore Shipping Forum 2023, jointly organised by Moore Stephens LLP and BNP Paribas and will be held at the Raffles Hotel next Thursday. Moore Stephens says it expects 250 shipping and financial executives to attend.

The law firm said the forum will be focusing mainly on current and imminent challenges, including “global geopolitical crises, China’s Covid-19 lockdowns and subsequent reopening, massive volatility in freight rates and asset prices, and growing ESG regulatory scrutiny”. The forum will attempt to answer the following questions: “What do these mean for maritime supply chains, and how should shipowners respond?”

I look forward to hearing how the very distinguished expert panel answers those questions.

While these serious discussions are at the heart of SMW, the event does have a lighter, more enjoyable side. For attendees and industry insiders, there are several networking gatherings and at least one gala dinner, hosted by the International Bunker Industry Association Asia.

Meanwhile, MPA has an extensive outreach programme for the general public, including putting a drone through its pace.

All in, the indications are that SMW will once again be a well-rounded package of events that effectively promotes Singapore and seeks to tackle the shipping industry’s major challenges.