Shipping rules global trade

The shipping industry plays a critical and also a crucial role in world trade. In fact, shipping is an irreplaceable part of global infrastructure as it connects all the continents, islands and countries. Shipping ensures the transportation of important consumables such as medicine, food and other daily products, and also important goods such as machinery, various components and spare parts, vehicles and construction materials, just to name a few, which are necessary for every country. In summary, the world trade and well-being of all societies are dependent on seamless functioning of the global shipping network.

Free trade used to be considered one of the best policies to achieve economic growth and to lift people and nations out of poverty. Recently there have been indications of rising protectionism when tariffs and quotas have been imposed, also in Europe, on our key market. Not long ago, the International Chamber of Shipping commissioned a study, which drew the conclusion that an open trading system is worth supporting. Markets are primarily driven by economic growth and consumer demand, and consequently, positive signs are awaited and highly dependent on free trade without barriers and tariffs.

CO2 emissions and EU regulation

All parties involved in transportation must make massive investments by 2050 in order to reduce CO2 emissions. This impacts especially the shipowners, but also ports, engine and other equipment manufacturers, the whole production and transportation chain, must commit themselves to decarbonisation. The shipping sector is determined to decarbonise, but decisions on adaptation of new technology may be difficult and even uncertain.

First, our Group opts for global regulations which should be well prepared to avoid design flaws and, above all, to ensure that today’s decisions will be optimal and widely approved in the future years, the ultimate target being year 2050. A robust regulatory framework should therefore be in place.

Secondly, new alternative fuels should be clean, reasonably priced in comparison with conventional fuels, and available in sufficient volumes on several locations.

It could be argued that EU ETS system penalises European shipping companies vis à vis non-European companies. The Grimaldi Group and Finnlines are clearly the forerunners of green shipping, and our latest ro-ro, ro-pax and pctc vessels are a remarkable evidence of us investing in all possible green technology that is available today. Moreover, we will soon announce another major green investment programme for methanol powered vessels worth close to EUR 1.5 billion. Therefore, the Grimaldi Group, if any shipping company in the world, can be considered to be one of the most committed to reduce its CO2 and other emissions.

Thus, it is astonishing that EU officials and decision-makers do not realise the consequences that are already seen within the EU. Shipping is vital for global trade. It has its own bodies such as the International Maritime Organization (IMO), International Chamber of Shipping (ICS) and European Community Shipowners’ Associations (ECSA) to achieve a better and more sustainable world. It can be viewed that EU is in isolation from the rest of the world and acts harmfully toward its many industrial sectors e.g. towards shipping. There will be a huge need for capital and financing to fund the new production facilities of green fuels, the green fuel supply infrastructure, and the production of new engine technology for green vessels.

Both the ECSA and ICS have told the European Commission that EU ETS was destructive. Unfortunately, they disregarded our message. Through IMO we have agreed to reach net-zero by 2050. This is extremely ambitious and, yet, we do not have the knowledge and green fuels, not to mention the necessary funds, to meet this ambitious target. Therefore, it should be of paramount importance, that the EU Emissions Trading Scheme’s fees paid by the shipping companies should be directed to the development and production of new fuels on a large scale and fuel infrastructure in several ports in order to secure the availability and distribution of new fossil-free fuels.

Finnlines’ future is green

The Grimaldi Group has long prioritised environmental sustainability, investing significantly in fuel efficiency and emissions reduction. As part of this commitment, it has proactively ordered a total of 20 ammonia-ready vessels, with more on the way. Methanol, batteries, solar energy, biofuels and hybrid solutions, all will also be plausible future alternatives. Finnlines has renewed its fleet during the past few years and has recently completed EUR 500-million Green Investment Programme. We are currently considering a further investment of EUR 500 million in three new ro-pax vessels, which will be powered by methanol engines. These are the first few methanol powered vessels in the world showing our continued commitment for lower CO2 emissions. These methanol and multi-fuel vessels are projected to enter into service at the beginning of 2028.

Although there are many uncertainties in the operating environment, we expect the 2025 financial figures to go up from 2024. In spite of a myriad of challenges, we consider that new regulations enhance sustainable maritime industry. Moreover, technological innovations improve efficiency, reduce costs and drive the market forward.

Finally, I want to thank Finnlines customers and numerous stakeholders for their invaluable trust and support. Finnlines’ employees deserve recognition for their commitment and efforts during 2024.

The maritime sector is undergoing a thorough transformation, and the entire Grimaldi Group, Finnlines being an important part of it, will continue to provide efficient, reliable and environmentally friendly services to our freight customers and passengers. Rest assured that we will remain your trusted partner and the forerunner in green transition. We continue to invest in green technology and renew our fleet with the most environmentally friendly vessels, which will reduce both our and our customers CO2 footprint throughout the whole logistics chain.

Emanuele Grimaldi, Chairman of the Board

”Shipping forms the global infrastructure for trade.”