Nikolas Veniamis: Shipping guarantees EU’s supply chain security and diversification

ECSA: In the fourth edition of the interview series #ShippingPeople – meet the European Shipowners, we hand the microphone to Nikolas Veniamis, Director of Golden Union Shipping Company S.A. and CEO of Starboard Shipping & Trading, Secretary of the UGS Board, ECSA Board Member.

Meet Nikolas Veniamis, Director of Golden Union Shipping Company S.A. and CEO of Starboard Shipping & Trading. He is Secretary of the Board of Directors (BOD) of the Union of Greek Shipowners (UGS) and also serves on the BODs of both the Hellenic War Risks & West of England P&I Clubs. He holds a BSc in Management from Manchester Business School and an MSc in Shipping from MIT as well as an LLM in Maritime Law from City University.
Considering Europe’s goal to meet climate neutrality by 2050, which are the main challenges for shipping?
Humanity is faced with a great global problem, climate change, which must be addressed as a priority. The shipping industry, being the most efficient mode of transport, is really more part of the solution than part of the problem. Shipping carries over 80% of global trade, yet its global share of Green House Gas emissions is only a fraction of the share of individual countries.
It is characteristic that although global seaborne trade has almost doubled over the last 25 years, shipping’s share in global CO2 output has fallen. However, shipping is committed to its energy transition and continues to do everything in its power to achieve this.
The EU goal for climate neutrality by 2050 is indeed an ambitious target which should be seen in light of two main dimensions: the lack of available, safe alternative fuels and the need for EU’s industries to remain globally competitive.
As far as shipping is concerned, without new fuels, which are still not available, full decarbonization of the sector cannot take place. And we do not produce the fuels that we use. This falls in the remit of other industries, which must expedite the new fuels’ production and worldwide distribution. And they must do so while adhering to the strictest rules of safety onboard and of economic viability. In this process, collaboration among all pertinent stakeholders is required.
Very importantly, amidst a changing geopolitical and economic environment globally, it would be detrimental if Europe were not in a position to maintain its competitive edge, especially in industries, where the EU is leading, like the shipping industry.
The President of the European Commission Ursula von der Leyen recently presented the “Competitiveness Compass”, aiming to enhance EU competitiveness and sustainable prosperity. What are your views in connection with this initiative?
The initiative is both timely and necessary. We, as people engaged in a truly international industry, know very well that maintaining global competitiveness is a sine qua non for sustainability.
EU shipping, of which 61% is Greek shipping, is an “export industry” for the EU. Its largest share is international and cross-trading. In this respect, it is subject to fierce international competition, increasingly losing its market share, especially to Asian competitors. Its viability is threatened in the absence of a global level-playing field.
Therefore, it is vital that the EU shipping is carefully considered in the action plan in the Competitiveness Compass framework. The initiative clearly mentions that shipping has a critical role in the future of the EU economy. However, this recognition must be materialized accordingly in the design and implementation of the forthcoming EU Industrial Maritime Strategy.
For example, and building on the recommendations of the Draghi report, we are looking forward to seeing in the Maritime Strategy, among other:
A tailor-made and fit-for purpose action plan for the decarbonization of the sector, given that it is one of the hardest to abate sectors
A stable regulatory framework that will ensure that the sector’s global competitiveness is enhanced
Reduction of the bureaucratic and financial cost, stemming from regulations, especially for the SMEs, which are the backbone of EU shipping.
Overall, it is very encouraging that the EU institutions are realizing that decarbonization must go hand in hand with competitiveness. Over the last years, the EU has heavily concentrated its regulatory work on environmental issues. Its environmental agenda and regulatory output, however, had unfortunately not taken due account of their effect on the competitiveness of the EU’s industries at a global level. We are pleased to see that today the EU understands that some calibration of its regulation may be needed in order to ensure that this does not harm, undermine and put at risk the industrial competitiveness of the Continent.
The European shipping fleet is one of the largest in the world, enabling the EU to play a leading role in the global supply chains. How do you perceive the strategic role of shipping for European security?
The EU fleet is indeed the largest fleet of a single bloc in the world. This is a strategic asset that the EU must never lose.
Shipping is the backbone of EU’s maritime cluster ensuring the creation of thousand hundred jobs in the EU. But its strategic role exceeds its indisputable economic contribution.
Shipping secures the EU’s supply chain autonomy, Europe’s food and energy security. More than two thirds of the total extra-EU trade in agricultural products is transported by ships, while for oil and oil products the EU relies on shipping for more than 87% of its imports.
In addition, the set environmental objectives of the EU can only be met with the vital contribution of shipping. The ships will transport the new, alternative fuels and technologies from the areas of their production into / out of the EU. In this way, shipping is a critical factor of the EU’s energy transition, too. It will lead the EU to a new energy era.
Most importantly, shipping is the most flexible and responsive means of supply source diversification for the EU and to changing trade patterns. Amidst geopolitical uncertainties and crises, like the recent global health crisis of Covid-19, EU shipping provides alternatives and supply chain solutions in a timely and effective manner for the welfare of all EU citizens.
It is evident, therefore, that the EU cannot afford to leave its shipping industry out of its main strategic priorities for the years to come.

ECSA