CUS NEWS REPORT FOR WEEK 37 OF 2024

7th September 2024 – 13th September 2024

 

LOCAL NEWS

1. Advisory Committee on Competitiveness and Quality Enhancement of the Cyprus Flag and Advisory Committee on Competitiveness of the Cyprus Maritime Cluster-Announcement of the Elected Members

On the 11th  September 2024 the Shipping Deputy Ministry issued Circular No. 26/2024  announcing the names of the persons elected as Members of the Advisory Committee on Competitiveness and Quality Enhancement of the Cyprus Flag (“Advisory Committee A”) and the names of the persons elected as Members of the Advisory Committee on Competitiveness of the Cyprus Maritime Cluster (“Advisory Committee B”).

We draw your attention to the link below for more details on the names of the elected members.

Further details on the workings of the above Advisory Committee  A, will be presented by the Shipping Deputy Minister, Mrs. Marina Hadjimanoli during our Union’s AGM which will take place on 19 September 2024, at 18.00 hrs in Athens.

Related Article:

SDM C- 26/2024 - Advisory Committee on Competitiveness and Quality Enhancement of the Cyprus Flag and Advisory Committee on Competitiveness of the Cyprus Maritime Cluster - Announcement of the Elected Members

 

2. Propeller Club: Commemoration event for the 50th anniversary of the Turkish invasion and occupation of Cyprus

On Monday, 9th September 2024, the Propeller Clubs of Piraeus and Limassol hosted a commemorative event at the Yacht Club of Greece, marking the 50th anniversary of the Turkish invasion and occupation of Cyprus.

Distinguished guests from both Greece and Cyprus attended, including the Minister of Foreign Affairs of Cyprus, Dr. Constantinos Kombos, who delivered a powerful keynote address, and Mrs. Marina Hadjimanoli Deputy Minister of Shipping of Cyprus.

The evening featured moving documentaries and personal testimonies recounting the events of 1974 and send important messages showing that there is synergy between Greek and Cypriot states as well as its vibrant shipping communities.

During the event, the Vice President of our Union and President of the Propeller Club of the United States, Port of Limassol, Mr. Polys V. Hajioannou, spoke about the need to strengthen Cyprus' geopolitical position and negotiating power in order to resolve the Cyprus problem.

Mr. Hajioannou began his speech by stating that “It’s now 50 years since the Turkish invasion and the memories of the tragic events are still vivid and alive. We still remember clearly the unfolding of the tragic events of the summer of 1974 despite Turkey’s persistent efforts to rewrite the history”.

“The reunification of Cyprus should be our primary goal”, Mr. Hajioannou said, underlining that the Cypriot government and the Ministry of Foreign Affairs remain steadfastly committed to achieving a solution that will end the occupation and reunify the country for the benefits of all its people.

He went on to say that “Regrettably, attempts to achieve the longed-for solution that we all desire have as yet failed”, adding that, in spite of the challenges, Cyprus has managed over the course of the years to effectively enhance its geopolitical standing by becoming with the support of Greece, a member of the European Union and at the same time achieving an impressive increase in foreign direct investment. Referring to its strengthened relations with Israel, Egypt and the United States of America, Mr. Hajioannou highlighted Cyprus’ leadership in the Amalthea Initiative and the establishment of a maritime corridor from the port of Larnaca for delivering humanitarian assistance to Gaza via sea.

Mr. Hajioannou stressed that, amid fragile geopolitical balances, strengthening Cyprus' defence and negotiating relations must be our top priority, pointing out the need for accelerating the deepening collaboration between the United States and Cyprus.

He noted that "In Cyprus we must not forget that the enemy is not at the gates but is already within the gates". Mr. Hajioannou commented that Greece's support of Cyprus' defence sector is of utmost importance. "The defense of Greece begins with the defense of Cyprus. If Greece’s support is diminished in any way , plans for the partition of the island and two states in Cyprus will be shamelessly introduced by the other side".

Referring to the implementation of the Cyprus-Greece-Israel electricity interconnection project via the Great Sea Interconnector, supported by the US and funded by the EU, the CEO of Safe Bulkers emphatically reiterated the need to reinforce the geopolitical position of Cyprus by taking a more dynamic stance on an international scale.

Mr. Hajioannou concluded his speech with the wish "to find a solution for an independent and sovereign state, member of the EU, able to play an important role in the wider region on both energy matters and geopolitically and deliver the prosperity for all Cyprus citizens Greek Cypriots and Turkish Cypriots alike".

Related Articles:

Naftika Chronika 10/09 - Poly Hajioannou thoughts on the future of Cyprus

Maritimes 12/09 - Propeller Club - Commemoration Event for Turkish Invasion and Occupation

Propeller Club 09/09 - 50th anniversary of the Turkish invasion and occupation of Cyprus

 

INTERNATIONAL NEWS

3. Draghi report recognises global leadership of European shipping and the need to remain internationally competitive

On the 2nd September 2024, the long-awaited report by former Eurozone central bank chief and ex-prime minister of Italy, Mr. Mario Draghi, on the competitiveness of the European economy was published, delivering strong and far-reaching recommendations to enhance the competitiveness of the European economy.

According to the European Community Shipowners’ Associations (ECSA), the report acknowledges the global leadership of European shipping and identifies that a fit-for-purpose regulatory and taxation framework has ensured that the sector has remained globally competitive.

The report also recognises that shipping and aviation are the most difficult sectors to decarbonise. Investment needs for shipping alone will be around 40 billion each year from 2031 to 2050. In this regard, the report identifies the need for adequate access to finance, including special calls for shipping under the ETS Innovation Fund.

The report mentions the EU ETS revenues in several chapters and affirms that funding for the green transition in the EU is complex to access, fragmented, and CAPEX-focused. To support investment to reduce emissions in the transport sector, the report proposes that the EU should:

  • De-risk investment in sustainable renewable and low carbon fuels, via schemes based on Contracts for Difference and auctions as a service similar to those designed for the Hydrogen Bank.
  • Ensure continuity and expand existing funding mechanisms (the current Transport Alternative Fuels Infrastructure Facility under the Connecting Europe Facility programme, blending EU grants with support by EIB and National Promotional Banks) for refuelling and recharging infrastructure.
  • Launch dedicated sectoral calls under the Innovation Fund for the first deployment of decarbonisation solutions, possibly even per technology.

Furthermore, the report stresses that the EU holds technology leadership for the sustainable renewable and low-carbon fuels for the decarbonisation of transport, but has limited installed capacity and planned production. The report calls for the EU to start building a supply chain for alternative fuels to meet its decarbonisation targets.

The overarching objective of the Draghi report is to propose a new industrial strategy for Europe, to tackle the three main transformations that Europe needs to address: 1) closing the innovation gap, 2) develop a joint plan for decarbonisation and competitiveness and 3) increase security and reduce dependencies.

With respect to the issue of Shipbuilding., the report states the following:

  • The report identified EU manufacturing of transport equipment as not being on a level playing field with production in other world regions, impacting some segments in particular. In combination with price gaps, the EU is reported to be losing out or is increasingly challenged by global competitors.  
  • The report identifies that for merchant shipbuilding, the EU has become almost fully dependent on Asia (94% of merchant shipbuilding). The report also highlights possible impacts on military shipbuilding.
  • In response, the report proposes that the EU could “leverage synergies with industrial defence production and public support provided for dual use technologies, consider conditionalities in EU financial instruments or tax incentives for shipowners to buy ships made in EU and extend EU financial and policy instruments dedicated to renewable energy projects to specialised vessels.
  • For merchant shipbuilding, the report proposes to:
    • Maintain the current industrial base (more complex and value added).
    • Regain leadership in ferries, energy transport and research vessels.
    • Gain global leadership in the production of floating technologies and in the supply of vessels for the installation and maintenance of offshore wind

Related Articles:

ECSA EU 11/09 - Draghi report recognises global leadership of European shipping and the need to remain internationally competitive

Financial Times 12/09 - Mario Draghi calls for joined-up thinking in Europe

Safety4sSea 11/09 - Draghi report examines ways to boost European shipping

Hellenic Shipping News 12/09 - Draghi urges EU to catch up rivals

 

4. INTERCARGO Calls for Urgent Review of Carbon Intensity Indicator (CII) System

The International Association of Dry Cargo Shipowners (INTERCARGO) has submitted proposals to the International Maritime Organization (IMO) urging a review of the Carbon Intensity Indicator (CII) system at the 82nd session of the Marine Environment Protection Committee (MEPC 82), which will be held between 30th September and 4th October at the IMO Headquarters in London.

INTERCARGO’s proposal is based on extensive studies analyzing data from over 5,600 bulk carriers. The studies submitted by IINTERCARGO, including analyses by Bureau Veritas (BV) and DNV, revealed several key issues with the current CII system, including the negative impact of idle time on ratings, Inconsistent efficiency indicators, size-based disparities and potential perverse incentives that could lead to increased emissions.

To address these challenges, several proposals have been put forward to revise the CII framework, including that the IMO:

  • Review and adjust the CII to better reflect a vessel’s true energy efficiency, rather than, by implication, reflecting the efficiency of a port or other factors outside the control of a ship.
  • Implement a system that further incentivises overall GHG emission reduction, rather than potentially resulting in encouraging behaviour that improves ratings but increases total emissions.
  • Consider a multi-phased approach to refining the CII, starting with solutions based on current data and progressing to more refined measures as additional data becomes available.

Related Articles:

Gcaptain 12/09 - INTERCARGO Calls for Urgent Review of Carbon Intensity Indicator

Rivieramm 12/09 - IMO to consider CII revision proposals

Safety4Sea 13/09 - Intercargo calls for urgent review of CII System

 

5. TREASURY REPORT  

The US Treasury Report for all actions reported is hereby attached.

Related Article:

Attachment 1: US Treasury Report for week 07/09/2024 – 13/09/2024

 

6. PIRACY REPORT  

The Piracy Report for all actions reported is hereby attached.

Related Article:

Attachment 2: Worldwide Threat to Shipping (WTS) Report, for the period between 14/08/2024 – 11/09/2024

 

Nothing important to report from the IMO, the House of Representatives and ILO.


Download Attachment 1

Download Attachment 2


Share