7th Capital Link Singapore Maritime week

26 March 2025

Attended the 7th Annual Capital Link as part of Singapore Maritime Week

Multiple impactful topics were discussed with respected panelists . 

I saw a red thread of Geo-Political tensions across all topics, some of which do not seem obviously connected at first, 

I. Geopolitics, trade and politics

USTR will impact 80% of container ships and 60% of bulk ships. We already know that,

1. China's shipbuilding market share was at 50% in 2023;

2. China controls 95% of shipping container production and 86% of intermodal chassis supply;

3. While just over 4% of the global merchant fleet is US built;

As one speaker said, "Europe is a knowledge-based economy, so it should not be forced to focus on bridging labour gaps." 

II. AI and Digitalisation at Sea

Geopolitical tensions will slow down agreement of on global standards and data sharing policies, and so tech implementation.

III. Will the green transition continue?

1. Again, lack of global standards and only the EU trying to take the lead may not be sustainable while bigger players are anti or ambivalent towards the goals;

2. As a speaker said, it is ironic that the talks were focused on sustainability when there are wars and people dying as we speak. EU will (justifiably) have other funding priorities to keep this at bay.

IV. Strategies for fleet optimisation

1. We know general preferences around crew members. Filipinos, Indian, Chinese and Ukrainians. Supply of Ukrainians is uncertain.

V. Ship financing

1. If demand slows down from tariffs, then lower ship demand=>lower TC rates=>higher risk for banks=fewer banks and, or higher funding rates.

What I wanted to hear more about,

I. Lot of talk about uncertainty but little about what respected speakers' companies are doing to risk-manage. Scenario based plannings, supplier diversification, considering intra or transshipment trades or anything more?

II. As one speaker pointed out, "We have not talked about demand supply during any topic, and it is still important for our industry, you know"!

III. Mentioned that ship financing may be difficult and is more difficult for mid and small size. Not much on what are the options available. Ship as collateral financing, sale and leaseback, securing through time charter payments? A voice from financiers on the panel would have been useful.

Overall, the industry remains cautiously optimistic. I will leave it to the reader for further interpretation.

#MaritimeGeopolitics #SustainableShipping #DigitalMaritime

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