The $1bn question

This article is part of a series written by people across shipping in response to this question about how to deploy a hypothetical TradeWinds Sustainable Shipping Fund:

How, where and why would you invest $1bn for the best return in sustainable shipping, as the industry grapples with the need to cut carbon emissions, improve efficiency and keep cargoes moving in a world facing multiple economic and political challenges? The investment will be made now and ideally held for the next seven years to the end of the decade. As an added bonus, give one policy or regulation you would like to implement from 1 January 2023 to benefit shipping?

Shipping, as you all know, is the most efficient, economical and environmentally friendly way to safely transport vast quantities of goods around the world, carrying the majority of international trade and providing the world economy with a great service. Rarely are the contributions of the unsung heroes — the seafarers — appreciated or praised, however hard they operate under harsh weather conditions.

The environmental footprint of shipping is significantly lower than any other transport sector, without that to mean efforts to further reduce this are not being made.

The industry has proved, through the Oil Pollution Act of 1990 and the double-double design legislation, that it can self-finance and redesign its future going forward. In order for any sane shipowner (this might be an oxymoron) to invest in this poorly appreciated industry, a level playing field has to exist.

Shipowners are users of vessels and are there to invest in the new technology provided by shipyards and engine manufacturers. When the dust settles and the global environmentally friendly vessel compulsion systems are approved, the shipowners will be the first to over-invest in this new technology (as they have done in the past).

In the meantime, since interest rates are higher, I would invest my $1bn in the money markets or buy depressed Tesla stock.

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