The shipping industry waiting on the next stage of environmental regulations has forestalled broader ordering of new ships - particularly dry bulk carriers.
Currently, owners can lower pollution through retrofits instead of opting for newbuilds – it is expected ship repair yards will be highly busy for the coming years.
The International Maritime Organisation’s Energy Efficiency Existing Ship Index (EEXI) works on a per ton per mile basis, but not on how much of the time the ships are laden. Instead of demanding mechanical, technical changes to the global merchant fleet, a $250 a tonne levy on fuel may result in ships slowing down and alternative fuels gaining immediate traction. Basel III, due to come into effect in 2023 – the same year as EEXI funnily enough – will have an enormous effect on the shipping industry, strengthening the regulation, supervision and risk management of banks.
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