The twin tectonic shifts of digitalisation and decarbonisation will require the next generation of shipping leaders to rewrite the rulebook and redesign many aspects of global maritime supply chain. According to several of today’s leading industry executives, the gravitational pull towards scale and transparency is now an inevitable shift that will define the future of the industry
In this exclusive video, shipping industry leaders from across the value chain set out the essential elements of the transition ahead: the political, technical, economic and commercial requirements, and the actions needed from the sector to deliver on them
In this Expert Focus video, produced as part of Lloyd’s List’s Future of Shipping programme, OrbitMI chief executive officer Ali Riaz explains how the future of shipping is digital and why leadership is critical to building a digital future
‘The target shipping needs to hit in 2030 is about 5% of the fuel mix being zero-emission fuel. If we hit that, then we will have developed the supply chains of those fuels, resolved the safety problems and we will have reduced the costs.’
‘It is important to have some lighthouses who can have the bandwidth to invent, who have the financial muscle and capacity to do the required R&D. We need first movers who are not afraid to take some punts and go out and test… Without that bold, forward looking orientation, nothing new will be invented and we will only get small incremental steps towards improving the current assets.’
‘I think it is clear that we will have to reinvent the business and the operating models in shipping — it is essential that we move from cost to value based discussions in this industry.’
‘There’s no choice now, and it’s not just a question for the coalition of the willing. If you’re not a first mover, or very close to being a first mover, you could get left behind and indeed left out of the future of this industry.’
‘We need anywhere from $1 trillion to $1.4 trillion of investment to decarbonise the shipping industry and 80%-90% of that is imports. So, while we can talk about ships and the choices that shipowners and fuel providers like Shell will need to make, it’s the infrastructure that’s going to make the difference and I think that’s the biggest blocker we’ve yet to overcome.’
‘There are some tough decisions to be made, but I think the reality is the old business models that we had are not going to survive this and I think that a lot of companies will have to figure out how they actually deal with this.’
‘We need to get closer to our customers and co-operate on making this industry more efficient. Because there’s so much waste. The moment you put a value on carbon and decreasing the carbon footprint, I think that people have a tendency to be more friendly, open to discuss and see how they can co-operate together. So, I really want to see that happening between us and our clients and I believe that that will mean a dramatic change of the contractual relationship that exists between the two of us.’
‘We need to stop worrying about what slice of the pie we get in this great opportunity and be open to being part of creating the pie. So, what collaboration really means to me is being willing to share your knowledge, your capabilities, your data, and also creating solutions that are good for the industry, not just for an individual company.’
“We are at an inflection point. First mover activities are going to inform and inspire the rest of the industry. They need to be enabled and supported, meaning that individual governments need to engage in this process and make sure that we have regulation in place that supports it in the interim until we get global regulation in place.”
‘The shipping industry itself has set itself a pretty mealy-mouthed target of 5% by 2030. I think that 15% is a respectable target. By 2030 we shouldn’t have any engines which are not dual-fuel capable so that by 2040, we’ve got a shipping industry which can go carbon neutral.’
‘Having a fully decarbonised fleet by 2050 is possible, but the blockers, which I think we all recognise, are that you need infrastructure and you need proper pricing to be able to get these new fuels. So it’s not really about building the ships, it’s about being able to get the right fuels at the right price.’
‘I don’t think anybody today anyone can afford not to invest in some kind of future-proofed ship. Either you wait, and you don’t order any newbuildings, or if you do order you make sure that you have something that will still be around in 15 to 20 years from now.’
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