The International Perspective

Delivering an irreplaceable service

Shipping provides an irreplaceable service to the global economy. Maritime transport is a prerequisite for the well-being of billions of people worldwide, as it carries almost 90% of traded goods. In 2023, global seaborne trade increased by 2.4%¹, reaching 12.3 billion tonnes with the largest part of the quantities transported relating to the dry bulk (44.2%) and the tanker (25.2%) sectors².

When the distance travelled is also taken into account, the bulk/tramp sector is not only the largest segment of the shipping industry (representing almost 85% of total tonne-miles³), but it is also the main driver behind the sharp increase in global seaborne trade over the past two decades.

Shipping has traditionally shown resilience and adaptability, especially in response to emergencies and crises such as the COVID-19 pandemic, geopolitical tensions and armed conflicts, providing its invaluable services under any circumstance.

Shipping is the lifeblood of the global economy, transporting essential cargoes for the welfare of people around the world.

The indispensability of the Greek-owned fleet: international and cross-trading

Greek shipowners control more than 20% of the global merchant fleet, in terms of deadweight tonnes - dwt (Figure 1), making Greece the world’s largest shipowning nation. The Greek-controlled merchant fleet is not only the largest in the world, but it is also dynamic, exhibiting steady growth. Over the past decade, the total capacity of the Greek merchant fleet, comprising 5,543 ships, has seen a 53.5% increase (Figure 2).

In fact, the Greek-owned fleet is the largest cross-trader in the world, moving cargoes between third countries with over 98% of its capacity. The international, cross-trading character of Greek shipping, together with its size, render it indispensable for global trade.

Greek shipping is predominantly engaged in the bulk/tramp sector (Figure 3). This specialises in transporting staples such as grains and agricultural products, oil and gas, iron, bauxite, alumina and other ores, coal, fertilisers, steel, chemical and forest products. It, therefore, transports essential goods which are necessary for the survival and wellbeing of the populations around the world. With the bulk/tramp sector being inherently itinerant and flexible in nature, the Greek-controlled fleet is highly responsive to changing or new trading areas and patterns.

Greek shipping ranks first in the world and is mainly active in the bulk/tramp sector with significant presence in all segments of the industry.

Access to affordable goods

Τhe bulk/tramp sector comprises thousands of Small and Medium-Sized Enterprises (SMEs). It also still operates in an almost perfectly competitive market, with shipowners being price-takers with regard to the price of each individual transportation contract. This is because of the large number of shipping companies participating in the bulk cargo trades.  According to recent data⁴ there are almost 4,700 companies in the tanker sector owning 3.6 vessels on average and almost 2,500 bulk carrier owners holding 5 vessels on average.

This business model, together with technological innovations and the implementation of energy efficiency measures, has helped contain transport costs to the benefit of end-consumers worldwide. This can be illustrated by the fact that shipping is the most affordable mode of transport (Figure 4), with the real cost of moving cargo by sea falling significantly over the decades.

It is expected, however, that in the future it will become increasingly difficult to attain such low transport costs, as shipping will need to move towards the use of alternative low- or zero-carbon marine fuels with a high price differential from traditional fossil fuels. Recent data show that conventional fossil fuels for marine use can be up to 5-6 times cheaper than biofuels and 10-12 times cheaper than synthetic fuels⁵.

Shipping has ensured very low transportation costs over the past decades.

An energy-efficient mode of transport for a sustainable future

The strategic importance of shipping and, by extension of Greek shipping, for the world’s future is also depicted by the energy-efficiency profile of the industry. Shipping is a key vehicle for the fight against climate change, exhibiting exceptional achievements in the reduction of Greenhouse Gas (GHG) emissions. It is characteristic that the sharp increase in global seaborne trade, which has almost doubled in less than a quarter of a century, has not been met by a similar rise in CO₂ emissions from shipping. On the contrary, as a percentage of global CO₂ output, shipping has seen its share fall (Figure 5). This is especially illustrative of the fact that shipping is the most energy efficient mode of transport; it not only transports the overwhelming share of global trade but it improves its environmental record at the same time.

In terms of GHG emissions, international shipping accounted for 1.4% of total global emissions in 2022, down from 1.8% the year before. Despite its vast transport work, shipping’s emissions globally are only a small fraction of the emissions of many national economies, with a declining trend (Figure 6).

Compared to other modes of transport, shipping is 4 times more energy efficient than road transport and 116 times more energy efficient than air transport (Figure 7).

Greek shipowners have been a major force behind this trend, as they have been constantly investing in new, larger and more efficient vessels. Currently, the Greek orderbook stands at 384 vessels with a total capacity of 34 million dwt, recording a substantial rise compared to previous years. In relation to 2023, the orderbook is higher by 60% in terms of vessels’ number and by 79% in terms of deadweight capacity, while compared to 2021 it is almost four times higher in terms of vessels’ number and more than two times in terms of deadweight capacity⁶.

Apart from ordering larger vessels - the average capacity of a Greek-owned vessel currently on order is 88,748 dwt compared to 62,237 dwt for the world fleet⁷ - these vessels are also fitted with state-of-the-art environmental equipment (Figure 8).

Greek shipowners continue to invest in an increasingly modern and environmentally friendly fleet.

Shipping is by far the most efficient mode of transport. Greek shipowners are at the forefront of developments to reduce the GHG emissions from shipping while maintaining energy efficiency.

¹United Nations Conference on Trade and Development (UNCTAD), Review of Maritime Transport 2023

²Clarksons Research, Seaborne Trade Monitor, February 2024

³Clarksons Research, Shipping Intelligence Network, February 2024

⁴Clarksons Research, Shipping Review & Outlook, September 2023

⁵International Energy Agency, Indicative shipping fuel cost ranges, 2020

⁶UGS calculations, based on data from S&P Global Market Intelligence, February 2024 and UGS Annual Reports, 2021- 2023

⁷UGS calculations, based on data from S&P Global Market Intelligence, February 2024