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Decline in Confidence is Turning Shipowners Away from New Fuels

The ICS Maritime Barometer Report 2024-2025, launched by the International Chamber of Shipping (ICS), reveals a steady decline in confidence among global maritime leaders to manage the risks posed by increasing political instability, alongside a growing hesitance to adopt new fuels.

Decline in Confidence is Turning Shipowners Away from New Fuels
TINNews |

The ICS Maritime Barometer Report 2024-2025, launched by the International Chamber of Shipping (ICS), reveals a steady decline in confidence among global maritime leaders to manage the risks posed by increasing political instability, alongside a growing hesitance to adopt new fuels.

Now in its fourth year, the ICS Maritime Barometer draws on comprehensive survey data to identify the key risk areas shaping the strategic priorities of C-suite level leaders, shipowners and operators worldwide. This year’s results highlight an increasingly volatile geopolitical environment, with political instability emerging as the most significant concern across the industry for the third consecutive year since the 2022-2023 report.

Over four years of data, there has been a consistent decline in shipping leaders’ confidence to manage geopolitical and regulatory challenges. This unease is compounded by uncertainty around future fuels and infrastructure, with many respondents expressing a desire for clearer pathways to support decarbonization goals.

Cybersecurity has also grown in prominence, now firmly established as a top-tier risk. Industry leaders report increasing concern over vulnerabilities posed by digital integration and emerging technologies, especially in the context of heightened geopolitical tension.

Given the uncertainty around global politics and changing decarbonization regulation, maritime leaders are decidedly more bullish towards tried and tested fuel options – shying away from their confidence in all near-zero and zero alternative fuels and technologies over the next decade. Instead, LNG, HFO with abatement technology, and biofuels are clear frontrunners in this year’s findings - with a majority of 55% of respondents backing LNG.

Methanol and ammonia remain key future fuel choices, but, as the realities hampering alternative fuel availability and infrastructure become clearer, leaders appear to be more comfortable planning operations around fuels with established infrastructure, known bunkering and safety procedures and clearer cost profiles. Shipping risks missing its decarbonization targets without strong economic and regulatory signals plus increased public funding - which currently sits at a four-year low in confidence and one of the top impact factors.

The report states: “Given the pressing concerns of political instability, regulation and public funding, closer collaboration between industry, governments and regulators is essential if shipping and the wider maritime sector are to ensure sustainable and resilient business operations.”

In contrast, the newly-released second edition of the Global Maritime Decarbonisation Survey, jointly conducted by GCMD and BCG between October 2024 and February 2025, indicates sustained commitment across the industry.

The survey gathered 114 responses from shipowners and operators across a range of vessel types, fleet sizes, and regions, before MEPC 83 session in April.

Survey results show that 60% of respondents have now set net-zero targets (up from 54%), while the use of bio-blended fuels has more than doubled to 46%, and methanol use has increased from 3% to 6%.

However, uptake of more nascent technologies—such as ammonia, wind-assisted propulsion systems, solar panels, super-light ships and air lubrication—remains limited.

Nearly three-quarters of respondents identified either compliance measures or financial incentives as the most important policy objectives. A level playing field will ensure that early adopters are not competitively disadvantaged on cost and stakeholders with limited resources can benefit from financial support to overcome economic barriers.

#END News
source: marinelink
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