As the maritime industry continues to feel the impact of unpredictable geopolitics and the impeding decision surrounding the IMO MEPC Net Zero Framework (NZF), the session shared insights on market outlook, as well as how shipowners could leverage on hedging strategies to protect their funds.
On market outlook, Mr. Chua Han Teng, Senior Economist at DBS Bank shared how US tariffs are impacting the region, such as the slowing of exports and slower economic growth in the ASEAN region. However, the region is still growing and has the potential to be the 4th largest economy in the world by the end of the decade.
On decarbonisation, Ms. Christina Zhuang, Senior Economist from Deloitte shared on the IMO Net-Zero Framework (NZF), and how stakeholders from the shipyard; to port and terminals; to training institutions will have a role to contribute.
With freight being one of the more volatile commodities, Mr. David Low, Head of Derivatives Clearing, Commodities and Execution at DBS Bank shared the key benefits of hedging with Futures Contracts, which can help to eliminate price uncertainty, ease execution and be more cost effective.
The session concluded with an engaging Q&A with the speakers. One key topic of discussion included the benefits of being a first-mover or early-adopter of decarbonisation, which could help to strategically place their companies and their fleet in an advantageous position compared to industry peers.
The evening concluded with a vibrant networking session.