These sessions explored the potential impact of global trade policies and environmental regulations on the shipping industry, offering valuable insights into how businesses can navigate the changing landscape.
Trump Versus Trade: The Global Economic Outlook for 2025
Held on 12 February 2025, this session featured Mr. Kaushik Rudra, Standard Chartered Bank’s Global Head of Fixed Income and Head Asia Research, who provided expert insights into the evolving global trade environment.
With Donald Trump potentially returning to office, global trade is expected to undergo significant shifts. His administration’s emphasis on protectionism, higher tariffs, and reshoring initiatives could disrupt global supply chains and alter shipping patterns. Countries reliant on exports may face increased trade barriers, leading to rising costs and supply chain realignments.
For the maritime industry, this could mean increased regulatory challenges, shifting cargo flows, and volatility in freight rates. Trade fragmentation may drive changes in key shipping routes, as companies look for alternative markets to mitigate risks. Meanwhile, fluctuating interest rates and oil prices—driven by US policies—could affect fuel costs and investment decisions for shipping companies.
Geopolitical tensions will also play a critical role. The US-China trade relationship remains a focal point, with tariffs and economic policies potentially influencing container trade volumes. Additionally, a more isolationist US stance could impact global alliances and trade partnerships in Asia and Europe.
Charting the Course: EU ETS, Risk Management, and Decarbonisation in Shipping
Taking place on 21 February 2025, this session featured Lucy Palairet, Carbon Markets Development, Standard Chartered Bank, and Oi Lee Choo, Chief Executive Officer, Climate Impact X. They shared insights on the latest regulatory developments and strategies for managing carbon costs in shipping.
The push for sustainability and emissions reduction remains a top priority for the maritime sector. The EU Emission Trading System (EU ETS), set to take effect in 2025, will require shipping companies operating in European waters to manage carbon costs and comply with stricter regulations. This is part of the broader ‘Fit for 55’ package, which aims to reduce emissions across the EU economy.
The inclusion of shipping in the EU ETS will introduce new cost considerations for vessel operators, impacting profitability and competitiveness. Companies will need to explore emission allowance trading, alternative fuels, and energy-efficient technologies to adapt to these changes. Effective hedging strategies will also be crucial to managing carbon price fluctuations and maintaining operational efficiency.
As the regulatory environment becomes more complex, industry players must stay informed and proactive in developing long-term sustainability strategies. Failure to do so could lead to higher compliance costs and reduced access to key markets.
SSA remains committed to providing its members with critical insights and strategic guidance to navigate these challenges. As developments unfold, SSA will continue to facilitate discussions and share knowledge through Maritime Conversations@SSA, ensuring that Singapore’s shipping industry remains resilient and well-prepared for the future.
Stay tuned for more industry discussions in the months ahead!