European shipping, representing 35% of global feet, is key for Europe’s security, two separate studies have found.
The European Community Shipowners Associations (ECSA), which represents 22 national shipowners’ associations, has released a Deloitte EU shipping competitiveness study and a CE Delft study on the economic value of European shipping.
European shipping represents a geopolitical asset for Europe facilitating the export and import of goods, food and energy. 76% of Europe’s external trade is enabled by shipping, as per the Deloitte study.
Whilst the EU represents around 15% of the global GDP, the European shipping fleet is one of the largest in the world, representing around 35% of the world fleet in terms of global tonnage across all segments , the CE Delft study finds.
Specifically, European shipping controls 30% of the world’s bulk carriers, 44% of containerships, 35% of tankers and 33% of LNG carriers.
The Deloitte study highlights that the EU faces fiercer international competition as a preferred location for shipping activities today than ever before. The European fleet is growing steadily, but other fleets are growing faster . As geopolitical uncertainty grows, European shipping should be viewed as a geopolitical asset in the region, solidifying the EU’s leading position in international supply chains, according to the study.
The study concludes that the current EU regulatory and taxation framework facilitates a competitive EU shipping sector. However, it highlights significant areas for improvement such as closing the investment gap for the uptake of clean tech and fuels, reducing administrative burden, and aligning with international regulations.
“Shipping is a cornerstone of Europe’s energy and supply chain security and is in the frontline of the energy transition. European shipping is a success story. Europe represents 35% of the global fleet against the EU’s 15% share of global GDP,” Sotiris Raptis , Secretary General of European Shipowners | ECSA, highlighted.
“The European fleet and our tonnage have been growing, but others have been growing faster. For Europe to retain shipping as a geopolitical asset, we need to maintain its international competitiveness and invest in the energy transition .”
“Investing the EU and national ETS revenues in clean tech and clean fuels will make the whole maritime industrial cluster more competitive,” he concluded.