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Leaders in global shipping

In the face of global uncertainty, Vassilios Demetriades Cyprus Shipping Deputy Minister says that the government continues to proactively drive positive, collaborative change in shipping

As the world faces continued geopolitical turmoil, new challenges await all sectors, including shipping. Within the context of this changing landscape, Cyprus Shipping Deputy Ministry (SDM) reaffirms its commitment to stimulating collaboration and positive change for global shipping, whilst aiming to preserve, and develop, the competitiveness of European shipping.

The global economy has faced a variety of disruptions in recent years. While recovery from the Covid-19 pandemic has been steady, the current geopolitical crisis has slowed progress. For the remainder of 2022, and going into 2023, it’s clear that world trade growth will continue to lose momentum, compounded by current and future trade restrictions that will lower living standards across the globe. This, of course, will have immense implications on shipping as a sector.

As a result of energy dependence on Russia, high energy prices will continue to climb in Europe, which will reduce spending and, in turn, demand for exports. With shipping representing a core component of global trade, the sector faces a period of both challenge and opportunity.

Decarbonisation is considered as one of the most important challenges of the sector. Cyprus is a leading advocate for sustainable shipping and that broad and diverse measures are needed at global and regional level to achieve emissions reduction targets and a sustainable future for the industry.

Cyprus is taking a proactive approach to supporting the shipping industry in this transition to meet and exceed regulatory targets by creating new policies and initiatives that incentivise shipowners and operators. Towards this direction, the Cyprus Government announced a range of green incentives to reward vessels that demonstrate effective emissions reductions beyond the agreed global levels. Annual tonnage tax is reduced by up to 30 per cent for each vessel that demonstrates proactive measures to reduce its environmental footprint.

In addition, Cyprus supports development of innovative technologies and research into alternative fuels. It is encouraging shipping companies to progress to greener shipping and is developing further incentives to support this trajectory. SDM promotes and facilitates Cyprus-flagged ships to use bio-fuels in sea trial mode. Cyprus will continue to adapt and create policies and innovative initiatives that support emissions reductions within Cyprus shipping and beyond.

Shipping is already facing massive challenges also in terms of its digital transformation. The SDM, in an effort to further increase the efficiency and competitiveness of Cyprus shipping, is working towards establishing the framework conditions for ‘One-Stop-Shipping-Shop’ by digitalising all SDM’s services with a dedicated project co-financed by EU. The project is ongoing and is expected to be completed early 2024, providing a paperless environment. By January 2023, any service that goes digital will be available to the shipping industry through a dedicated Mobile App.

Cyprus looks forward to continuing its work to proactively, and collaboratively, drive positive change in global shipping while safeguarding the sector’s competitiveness — especially considering current geopolitical challenges. This includes the ongoing implementation of ‘SEA Change 2030’ (www.cyshippingstrategy.com) — a long-term strategic vision for Cyprus shipping. As 2022 comes to a close, the SDM is reflecting on the noticeable progress made so far with a number of actions to further promote maritime safety, security, environmental sustainability, seafarers’ welfare whilst increasing the efficiency and effectiveness of Cyprus shipping. SDM will also be focusing its sights on maintaining and advancing this momentum into the new year, throughout 2023, and beyond.