From green transition to geopolitical risk: Shipping faces cost, safety and staff shortages

Maritime Affairs and Insular Policy Minister Vassilis Kikilias voiced Greece’s strong reservations implicit the European Union’s decarbonization model for shipping, while underscoring the request for a much realistic, economically and socially grounded approach, during his involution astatine the Delphi Economic Forum 2026.

As helium noted, Europe is designing the sector’s transition with a multi-decade horizon, placing accent connected alternate fuels and decarbonization targets, without adequately addressing contiguous marketplace challenges and real-world implementation constraints. “Many of these measures are not feasible,” helium stressed, highlighting the request to strike a equilibrium betwixt ambition and realism.

The curate warned that the imposition of extended taxation to execute zero emissions—at an estimated outgo of up to 130 cardinal euros by 2027 and betwixt 100-300 cardinal euros by 2035—poses important risks to the economy. He pointed retired that these costs would ultimately beryllium passed connected to charterers and, successful turn, to the existent economy, starring to higher prices and intensifying inflationary pressures. “Europe is already being tested by rising costs, conflicts, and the vigor crisis. Such an further load cannot beryllium placed connected societies,” helium underlined, calling for a common-sense attack and the recognition of viable, implementable solutions.

Shipping done the Strait of Hormuz under heightened risk

Referring to the seriousness of the situation successful the Strait of Hormuz and its contiguous implications for planetary shipping and the economy, Kikilias described conditions arsenic comparable to a struggle environment, posing elevated risks to planetary navigation.

He emphasized that the extortion of quality beingness and seafarers remains the top priority, noting that the situation is unfolding astatine 1 of the astir captious geostrategic chokepoints for the vigor supply concatenation and planetary trade.

“Between 80% and 90% of planetary trade is transported by sea, while under mean conditions astir 20% of the world’s lipid and 25% of earthy state transit done the Strait of Hormuz,” helium said.

The curate underlined that disruptions to vigor and earthy worldly flows are amplifying pressures connected the planetary economy, warning that the longer the situation persists, the greater the risks to vigor information and mundane life.

11 Greek-flagged vessels presently successful the Persian Gulf

He besides made specific notation to the beingness of Greek vessels successful the region, noting that 11 Greek-flagged ships—one tugboat and ten tankers—are presently operating within the Persian Gulf, while an further 27 vessels are located extracurricular the Strait.

The ministry remains successful changeless connection with crews, up to three times daily, ensuring the proviso of guidance and support.

At the aforesaid time, helium noted that repatriations of seafarers who requested to instrumentality person already been carried out, assuring that “all those who wished to instrumentality person done so.” He added that crews person capable supplies, arsenic galore vessels are presently astatine anchorage.

However, Kikilias expressed his interest implicit maritime safety, referring to the dozens of vessels that person travel under onslaught successful the wider region, either by drones oregon missiles.

He stressed that though Greece does not person nonstop jurisdiction implicit foreign-flagged vessels, there is continuous monitoring of developments and ongoing efforts to safeguard Greek seafarers.

“No 1 tin foretell when this situation will extremity oregon what the aboriginal repercussions will be,” helium concluded, emphasizing that operating successful a struggle zone entails persistent risks for crews and requires heightened vigilance from each parties involved.