Keywords in Shipping: Realization that we live in an International World, Digital Knowledge, the Need for Adaptability, Resilience and EQ

Slide2Open Shipping Finance 2022 Conference

A Phygital, Interactive, Metaverse Ready, Experience

Slide2Open Communications, true to its annual appointment with the Shipping World, organized the 5th Slide2Open Shipping Finance 2022 Conference. With a combination of live and recorded interviews, speeches and live panel discussions between 110 World Class Speakers, some remotely connected and others physically present on an impressive TV set, the live broadcast of the conference, which took place on Wednesday 2 and Thursday 3 March 2022, set an attendance record with 15,000 “unique participants” from 52 different countries (106,000 page views). Unique participants are expected to double in the coming 2 months.

In his greeting speech, Minister of Maritime Affairs and Insular Policy, Mr Ioannis Plakiotakis, referred to the challenges of global shipping and the catastrophic invasion of Russia to Ukraine. He put emphasis on the implementation of IMO guidelines and referred to the Blue economy, which is a focus of this administration.

Conference co-Chair, Professor Hercules Haralambides, answered the main question of the conference by a clear Yes, this Euphoria is for real, but it is not sustainable. Trade will continue to flourish, but will most probably focus more on Africa, India and China. Rising protectionism may pose risks.

President of Eugenides Foundation and IMO Ambassador in Greece, Mr Leonidas Dimitriadis-Evgenidis discussed trade sustainability. Shipping is accountable for 3% of C02 emissions and 80% of cargo carried and at the same time blamed for footprints that it is not responsible for, e.g. the congestion in the ports. Shipowners help society at large, but the good image of shipping is not always passed to the society. Sustainable trade requires a common front.

The vivid panel discussion on 360^ο sustainable development in shipping, chaired by Ms Katerina Stathopoulou, of Investments & Finance Ltd concluded with 3 elements that each panelist considers essential for crew or shore personnel. For Mr Andreas Chrysostomou of Clean Shipping Alliance it is being conscious of environment, feeling part of the community and being disciplined. For Ms Maria Korkontzelou of Seanergy Maritime Holdings Corp. it is competence, awareness, flexibility and the sense of ownership. Mr Sergios Arniakos of LATSCO went for adaptability, embracing technology and having the right culture. Ms Semiramis Assimakopoulou of the Signal Group opted for resilience, agility and continuous development, while for Ms Elena Athoussaki of Motor Oil Group it is mindset, be caring and supportive for other people.

Mr Christopher Rodrigues, CBE, President of Maritime & Coastguard Agency and of Port of London Authority, discussed the goals of 2050. Some years ago, nobody would think of decarbonization. It is clear that transoceanic challenges need global collaboration and solutions. With collaboration, decarbonization will become a problem of the past. Creative financial solutions are required.

Mr Alexandros Damianidis of Watson, Farley & Williams chaired a panel discussion on ESG Assessments where Mr Michael Parker of Citi discussed the role of shipping in the global supply chain and noted that the banking industry will start allocating capital to companies making more progress towards zero emissions. Mr Stavros Gyftakis of Seanergy Maritime Holdings Corp. explained the two ways to approach the E on ESG and noted that changes have to be discussed, balanced and financed. Mr Martin Crawford-Brunt of Lookout Maritime, said that market drivers are stronger than regulators. It is important to demonstrate that you make headway and to make investments visible,​ ​to be able to show a time series of improvement, to have the right system of metrics,  to correct divergence and to be serious. Mr Kostas Kapralos of Net Zero Analysis outlined the 5 key areas: Consistence, assuring the relevance of reporting, leveling the playing field, transparency and comparability of methodologies, ESG product labeling. They all agreed that cooperation and stakeholder engagement are essential, while technology is able to decarbonize the shipping industry.

Dr Christos Gizelis of OTE Group presented Dataports, a 6m € European Union funded research and innovation project, that creates the cognitive ports of the future and consists of 12 partners from Europe and Israel. He invited participants to attend the Parallel to the Shipping Finance Conference session on The Seaports of the Future which took place on Thursday 3 March from 12:00 noon to 16:20 hrs.

Mr George Teriakidis of DNV discussed electrification and autonomy and presented Yara Birkeland, a fully electric autonomous vessel. The stakeholders of this project include no shipowner and no traditional yard. But is Yara Birkeland a threat or an opportunity? Threat if left unexplored. Yet overall it is an opportunity, especially in short sea shipping. Electrification and autonomy are now being developed. Cooperation is the driving force – the new fuel.

Mr John Platsidakis noted that environmental sustainability is a relatively new word in shipping. Shipping companies are now on the defensive, because they are getting a different treatment compared to other industries. Regrettably shipping does not have the political weight. Big countries do not have substantial shipping.

Ms Elisabeth Calbari of Self-Balance explained how a euphoric state of mind can lead us into making wrong decisions, because of the feeling of happiness and self-confidence that we experience, which can cloud our judgment.

Mr Alexander C. Hadjipateras of Dorian LPG discussed with Ms Danae Bezantakou of Navigator Ltd about decarbonisation and climate change. New technologies can help, but all stakeholders are not always sitting on the same table. The big issue is the financial aspect. Charterers must be part of this dialogue. The human element keeps the Greek shipping miracle alive. Strong investment in training is necessary to give young seafarers the best skills.

Mr Sheraz Malik of Digitorize presented the Kyoto Network Proposal, the world’s first decentralized carbon credit market using blockchain technology. The Kyoto Network aims at helping to create a more sustainable ESG world, with the creation of a currency Kyoto Coin to the benefit of people and the environment, ultimately creating net zero. Ms Olympia Papazoglou, naval architect and marine engineer, and Cpt. Gina Darsaklis, maritime expert, joined the presentation.

Mr Georgios Plevrakis of the ABS noted that sustainability goes beyond just reporting. Decarbonization is a challenge and the shipping industry has to accelerate its transition scenario in order to reach the 2050 target. The pathway to decarbonization requires several steps: 1. develop a carbon footprint and carbon intensity profile, 2. consider options, 3. implement strategy and then 4. revalidate target, report progress and verify metrics.

Dr George Vaggelas of the University of the Aegean, Mr Dimitrios Fafalios of INTERCARGO and of Fafalios Shipping S.A., Mr Konstantinos Oikonomou of Marine Tours, Mr Sotiris Raptis of ECSA and Mr Panos Zachariadis of Atlantic Bulk Carriers Management discussed over-regulation, the cost to meet new requirements, the EU’s ambition to become the first carbon neutral continent, EU ETS and Fuel EU, how all these affect the attractiveness of EU for shipping activity. They also discussed the role and the burden carried by shipowners and how this should be transferred to charterers/operators, the availability of clean fuels and the changing mindset of Greek shipping companies.

Cpt Georgia Darsakli, Captain Class A at Springfield Shipping Co. discussed with Ms Czarina Catalogna, Chair of the American Institute of Aeronautics and Astronautics (AIAA), on Nautics, Aeronautics and Astronautics. Advancements in space have led to safer seas. They both explained how they decided to pursue their careers, following their passion. Propulsion systems, clean fuel, mentoring and problem solving, women in male dominated professions, communication via satellite and the rewards of their jobs mingled into the discussion.

Mr Evan Cohen of CIT Group, Mr Vassilis Maroulis of Citi, Mr Nicholas Pavlidis of Bank of Cyprus, Mr Christian L. Speer of M.M.Warburg & Co and Mr Christos Tsakonas of DNB Bank discussed about the Shipping Cycles with Mr Angelos Roupas Pantaleon of Second Wind & Partners. Special note was taken of Poseidon principles and ESG assessments, cashflows, good relationships with their customers and how understanding the logic of a decision is crucial for an investment. Shipowners and financial institutions that do not recognize the new realities will find themselves in a difficult situation – it is going to be even more tight for them.

Mr Kenneth Juhls of ZeroNorth, Mr Christos Matsikoudis of Wärtsilä Voyage Solutions, Mr Nikolas G. Theodorou of ABC Maritime and Mr George Kalianis, MoB of HELMEPA discussed with Ms Danae Bezantakou Why Greece? Why Now? With offices opening in Greece, firms seek to be closer to their customers. The Greek maritime community is here and Greece is now a much more stable environment, more business friendly. Technology, environment, port logistics, all has improved – a healthy ecosystem allows all to flourish.

Mr Mark O’Neil of Columbia Shipmanagement and Ms Gina Panayiotou of Oceans Arena discussed the current Euphoria and whether it is sustainable in the future and noted that sensible money does not know on which fuel to invest, so the existing fleet is not growing much. Yards are overstretched despite uncertainties about the fuels of the future. The debate on sustainability and green shipping brings to the fore the need of shipping to speak with one voice, though it would be a small voice, especially when it comes to green issues. Shipping has to find a way to fit into the logistics chain.

Mr John Dragnis of Goldenport Group, Mr George D. Gourdomichalis of Phoenix Shipping & Trading S.A., Mr Vasilis Α. Papagiannopoulos of Common Progress Co. Na Ltd and Mr Harry N. Vafias of Stealthgas and Imperial Petroleum discussed with Mr Angelos Roupas Pantaleon the dilemma To Divest or To Invest? They all agreed that 2021 has been an excellent year, though not across all sectors of the shipping industry. Shipping is part of a big chain, it accounts for 80% of the volume of goods carried, but has a relatively small voice. ESG is evolving and is becoming more relevant in financing decisions, but much depends on the relationship between the financier and the shipping company. Special mention was made to the seafarers, where 15% of the world crew is from Russia or Ukraine.

Finally, Yuri Bender of the Financial Times and Timothy Ash of BlueBay Asset Management discussed about the current situation in Ukraine. A key point that was made in the discussion is that even if President Putin wins, and sets a regime in Ukraine, that regime will not be able to trade with the world. The economic impact on Russia will be enormous. Russians will be much poorer because of this inexplicable war and this can ultimately be the end of the Putin regime.

The shipping world also participate in the sanctions, e.g. Maersk will not allow containers sent to Russia. People usually focus on energy but, across the board, companies are going to reduce interaction with Russia and this will have devastating effects on Russia.

It is a clash of civilisations, a clash of systems of governance, where elections can be rigged and politicians bought, there is going to be huge impact globally, disruptions to supply chains, higher prices. This is about law, about democracy, indiscriminate bombing of civilians, this is why previous Russia allies are now changing sides and support Ukraine. This can be an opportunity for improvement of relationships between China and the West.

Ukraine is not dead yet. The people of Ukraine have shown resilience, bravery, decency and their leader has proven great.

After welcoming the participants and wishing them a good second conference day, the conference organizer Ms Despina Travlou announced an amazing over 9.000 unique viewers during the first day sessions. She added that following last year’s analytics this number is expected to exceed 25.000 unique viewers in the next 2 months.

In commenting Euphoria, Mr Esben Poulsson, Chairman of the International Chamber of Shipping (ICS) and executive Chairman of ENESEL PTE. LTD replied to Ms Panagiotou of Oceans Arena that it is very topical in shipping, especially in containers. As for the future, we know the carrying capacity of the industry, but we cannot predict demand. One should never underestimate the resilience and ingenuity of the shipping industry. Investment in people and training should only be emphasized more.

Prof. Costas Synolakis of University of Southern California and Member of the Academy of Athens in an in engaging discussion with the Conference co-Chair and moderator, Mr Angelos Roupas Pantaleon, agreed that there has to be a collaborate approach by all parties and believes that shipping has to be more forward looking and trying to avoid overregulation. The market needs to regulate itself, otherwise regulation will come from the government. He is confident that technologies will be there, to the benefit of all society.

Dr Konstantinos Papapanagiotou of OTE Group explained that the rise in cyber-attacks during the pandemic called for immediate action. At OTE Group a three-step approach was adopted to protect their customers: detection, testing and prevention.

Mr Alexandros Mavromatos and Mr Paul Deftereos from Space Hellas explained that according to a survey, most shipping companies are not cyber-attack proof. Hackers are ready to attack and the ship is full of assets that can be attacked. They propose a step-wise approach: 1. Cyber security assessment, 2. Cyber security plan, 3. Personnel training, 4. Penetration testing, 5. Implementation and certification.

At a time of exponential increase in maritime data, a time where shipping requires stable, secure and reliable connectivity the president of Inmarsat Maritime Mr Ben Palmer OBE presented Orchestra, a connectivity enabler developed in Inmarsat, which brings together different components to provide global seamless connectivity at high capacity.

Ms Eirini Liadi of OTE Group noted that four words, Technology, Digital transformation and Shipping, when coming together, require a partner that knows his job. Technological superiority and customer-centric services are in the heart of OTE.

Mr Yannis Anastasakos of Space Hellas, Mr Peter Broadhurst of Inmarsat, Mr Nikos Botinis of Cisco and Ms Eirini Veniami Mangos of BEWISE discussed with Ms Eirini Liadi of OTE Group and each gave a key message about Acting with Tact and Vision. Their keywords are summed up in embracing new technologies, developing understanding and a new skillset that is not afraid of the future; technology is the enabler, but cultural change should be the focus; there is a need to embrace new technology and be agile; management of change is required.

Ms Katerina Stathopoulou of Investments and Finance Ltd discussed with Dr George Pateras of Contships Management Inc. and president of the Hellenic Chamber of Shipping and Mr Christopher Conway of Citi about containarisation, infrastructure availability, automation and alternative fuel. Battery powered vessels could be a solution for island traffic, but not for longer haul.

Flag registries for a sustainable future was the topic of discussion between Mr Dan Vivian of the UK Ship Register and Ms Gina Panayiotou, where the systemic nature of ESG was discussed and the need of partnerships was raised. Flags should take the lead and not compromise safety.

Ms Danae Bezantakou of Navigator Ltd. discussed Myths and Truths about Maritime Hellas with Mr Kostis Achladitis of Golden Cargo, Mr George Alexandratos of Apollonia Lines SA and Ms Helen Polychronopoulou of HEMEXPO. The Hellenic Chamber of Shipping, the Union of Greek Shipowners and Piraeus Chamber of Commerce and Industry have come together to establish the Greek shipping cluster. The transformation of Piraeus into a logistics hub, in an environment of better infrastructure, better legislation and digitalization, can only benefit the shipping world, provide new business opportunities and create employment in a globalised and more competitive world.

The discussion of Ms Katerina Stathopoulou with Mr George Margaronis of LATSCO Shipping Ltd and Mr Aristidis Pittas of EuroSeas & Eurodry moved beyond the excellent outcome of containers and the not so good of tankers, to covid, ESG and the profound impact of new regulations to shipping. The keywords of discussants were: realization that we live in an international world, digital knowledge, the need for adaptability, resilience and EQ.

Mr George Souravlas of Load Line Marine S.A., in his interview to Ms Danae Bezantakou of Navigator Shipping Consultants noted that major changes are happening in the shipping industry, related to decarbonization. The questions that emerge are more than the replies, as no-one can be certain now which technology will ultimately prevail.

Mr Angelos Roupas Pantaleon asked Mr Harris Antoniou of Neptune Maritime Leasing Ltd, Mr George Giannakis of Alantra, Mr Martin Hugger of Meerbaum Capital Solutions Inc., Mr Elias Sakellis of Australis Maritime Limited and Mr Vasilis Theofanopoulos of Mount Street Hellas to compare the current situation in alternative financing against a few year ago, whether ESG has been infiltrated into the equation of alternative lending and the countercyclical nature of shipping investment decisions. Despite changing views, it seems that “alternative finance” tends to become mainstream.

In the AMMITEC Panel, Dr Matthew Maheras of Metrostar Management Corp. discussed recent cyber-attacks with Mr Michalis Kantartzoglou of Eletson Corporation, Ms Katerina Raptaki of Navios Group of Companies and Mr Konstantinos Stais of Pleiades Shipping Agents. Shipowners do not always realise the risk or are reluctant to take it seriously, but cyber threats are there, ransomware attacks rose by 150% in 2021 and the realization of a treat can be very costly –  therefore action is needed.

In his discussion with Ms Katerina Raptaki, Mr Ewan Robinson of Yango Satellite Communications Ltd stressed the role of IT people in a shipping firm, the fact that most of the hardware used is corrupted, and agreed that cyber security is very crucial to be viewed as just an add-on.

Mr Antonis Lambros of Centrofin had an interview with Mr George Laios from the Association of Banking and Finance Executives of Hellenic Shipping and Intermodal, where the war in Ukraine, challenges, environmental regulations and decarbonisation, blockchain and crypto were discussed. In a nutshell “a ship is worth as much as it can earn”.

In an interested panel, conference co-Chair Prof. Hercules Haralambides, Mr Jan Hoffmann of UNCTAD, Mr Paul Kent of MEG, Prof. Mike Lai of Hong Kong Polytechnic School and Prof. Theo Notteboom of University of Antwerp and Shanghai Maritime University, discussed global inflation outlook, congested ports, the war in Ukraine and its implications for trade, transport and logistics, supply chain disruptions and regulatory concerns.

AI advancements was the topic of Dr Harris Apostolopoulos of PMO Global Alliance presentation, where AI is understood as a simulation of human intelligence with the actions of a robot and digital transformation is seen as part of a complex business transformation ecosystem.

Mr John Cotzias of Xclusiv, Mr George G. Mangos of Interunity Group, Mr Theocharis V. Terzis of Queensway Navigation Co. and Mr Konstantinos Rokkos of TST International answered Mr Angelos Roupas Panaleon’s questions on financing appetite towards shipping investments. Mr Roupas Pantaleon presented the findings of a mini poll survey contacted prior to the Conference which received 500 answers. The findings of the poll reveal that people think that the impact on the dry cargo and containership segments the latest resurgence in COVID will have is that rates will stabilize around 2021 averages, that financing appetite towards shipping investments in 2022 will increase on the back of increased activity from alternative sources of financing and finally that after falling for the last two years, global power generation from coal increased significantly in 2021 and is expected to increase further during 2022 which along COVID will lead to a substantial increase in tanker freight rates. Panelists agreed that this is a challenging period, demand is unpredictable, markets are not yet pricing in the new geopolitical reality and that regulation is the main driver for change and pushes towards a stratification of vessels.

Mr Ioannis Kounas of Atradius explained how credit insurance can be the cleanest fuel for the liquidity voyage, ensuring a win win situation for both sides.

Mr Llewellyn Bankes-Hughes of Petrospot Group, Mr Ioannis Kounas of Atradius, Mr Anthony Mollet of Marine Fuel Alliance, Ms Irene Notias of Prime’s BunkersPlus Services and Mr John Phillips of Awyr Las Ltd discussed the bunkering industry, which is a world on its own, however absolutely essential since ships cannot move without bunkers – or some sort of energy. Bunkering, just as shipping, is depending on financing deals where payment behavior and morale play a crucial role.

Ms Elpi Petraki of ENEA Management and WISTA Hellas and Mr Vassilios Th. Terzis of Queensway Navigation Co. and HSSA, discussed with Mr Angelos Roupas Pantaleon the challenges and relevance of short sea shipping, which concentrates mainly in the Mediterranean, the Black Sea and the European seas. The nature of the business is closer to Greek reality, while competition from neighbouring countries is high.

In his traditional closing speech, Mr George A. Tsavliris of Tsavliris Salvage Group and OneGlobal Broking, expressed his skepticism about Euphoria and the Poseidon Principles, explained that the shipping industry is overregulated and shared with the audience of 15.000 unique viewers his deep concern about the war in Ukraine and the protection of our seafarers.

You can watch the Conference’s Replay at:

https://youtu.be/bjBEqY7HcwM  (DAY 1)

https://youtu.be/sphUQkXz198   (DAY 2)