Seeing the world from the capital market or the boardroom, our horizon is the same — and, although I have changed position during the year, my perspectives remain the same.
In reality, the industry was totally unprepared for a pandemic coming as a whirlwind, locking us not just down, but also in. Having said that, it is amazing how quickly we adapted to a virtual world. Businesses have experienced a seismic and formative digital transformation, which was unimaginable at the start of the year.
After a year like no other, TradeWinds asked 40 shipping industry stakeholders what they see for 2021 after a year beset by the coronavirus, and how the pandemic will shape shipping's future.
Our crew has suffered most. Being on board vessels for extended periods of time, with the huge challenges to change crew around the world, it is impressive how owners and crew in cooperation have managed to handle the people and safety aspects.
Resilience to crises and external shocks will determine survival. We need to make a deep dive into how resilient we are. The vaccine will mitigate the health-concern aspects of the pandemic, but it is a major opportunity missed if that is our only safety net. New surprises will appear on the horizon. This is “the new normal”.
In that respect, are we asking the right question?
Is our business model set for that, have we built in operational and financial flexibility? Is our digital strategy sufficiently ambitious and integrated in our business model to ensure our future success? Is our organisation set for the disruption of managing a team working from home? Do we have the necessary contingency plans for our crew and team? Are we actually planning for “a smarter future” or just a “return to normal”?
And above all: What is our competitive advantage and where can we as a company use this to our advantage, to leapfrog the competitors?
Some ask if environmental, social and corporate governance [ESG] efforts will suffer a setback from the pandemic effect, which I will argue strongly against.
The focus on investment and innovation in fuel efficiency, carbon reduction, hydrogen, green ammonia and carbon capture and storage — to mention a few — show we are “hunting high and low”.
Key takeaways from the last Global Maritime Forum show that a solid ESG focus is our recipe for success. As a final remark in this respect, shipping recently was included in a draft for the European Union's Taxonomy Regulation, stating all ships using fossil fuel after 2025 will not be Taxonomy-aligned — that is, they will be deemed a non-sustainable activity. Although a draft, it emphasises the direction of financial flows.
