To build a more sustainable and profitable shipping industry, we must use this current period of strength to create the long-term foundations for success. Part of this will be in investment, but part of it will be about mentality.

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?

We cannot hide away from the fact that maintaining and mastering the delicate balance between commercial and environmental sustainability is the driving force of our times.

Sustainability cannot become a “hygiene factor”. Instead, we have to take responsibility for the impact we are already having and understand the reasons for that impact.

As the current way of working transforms around us — be that due to the new and lasting volatility in market rates, increased fuel prices, the new normal of supply chain congestion, the increased risk of global conflict or new demands being placed on owners and operators by their customers, financial institutions and regulators — the industry needs solutions that can help manage volatility and ensure stability.

In an era where decisions are becoming harder to make and where strategic goals are becoming more multi-faceted, knowledge becomes king. It is why I believe data is the solution to long-term sustainability and profitability in shipping.

We are leaving so much potential on the table commercially, and there is so much headroom to improve environmentally, that data can already help us to identify in normal operations today.

Data does not get ‘wrong-footed’ by volatility in the global economy. It does not make snap decisions based on currently available weather information, and it does not react to geopolitical changes on impulse.

Data is impartial and is a tool that can be deployed to support organisational strategy — a true commercial differentiator and driver of change — and a constant anchor for sensible business practices.

We must use the current bullish sentiment and good performance within the sector to entrench data-driven decision-making within our operations. We must normalise a more connected and green global trade ecosystem if we are to meet the challenges ahead.

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