The Covid pandemic led to a severe global recession unique in its depth and severity.
The Cyprus flag, reconfirming that crises create opportunities, stood strong providing practical solutions, such as the introduction of a safe corridor for crew changes, in addressing the single most important operational challenge, the inability to con- duct timely and cost efficient crew changes. Cyprus shipping has also taken brave
steps ahead to adapt to the ever-changing environmental regulations, green shipping and de- carbonisation. We at Safe Bulkers, are proud of being the largest ship-owner under the Cyprus registry and of the role that Cyprus shipping has played despite the uncertainties of the crisis.
Shipping markets emerged stronger in 2021 as the winds of global trade changed, so did Safe Bulkers. In line with our fleet renewal strategy, we have sold 6 of our older or Chinese built vessels, acquired 2 younger second-hand Japanese built ships and ordered 5 Japanese newbuilds designed that meet the NOx-Tier III and Phase 3 requirements of Energy Efficiency Design Index. When ordering newbuilds we invest in the latest technology that is currently available, complying with the strictest emission limits.
Our industry’s regulatory environment is becoming more complex and includes U.S, E.U and
the greenhouse gas ‘GHG’ regulations of the United Nations’ International Maritime Organization, ‘IMO’. In the foreseeable future we expect the trend of increasing regulatory compliance complexity to continue. The Paris Agreement aim is to limit global warming caused by GHG emissions, to less than 2 degrees. IMO’s strategy has set specific targets, to reduce CO2 emissions per transport work by at least 40% by 2030 vs. 2008 level, by 70% by 2050, and eliminate GHG emissions from shipping entirely before century ends, which represents a major challenge for the industry and for Cyprus shipping.
There is only one way for Cyprus shipping to follow and that is foreword. Building greener
& smarter ships, hull and propeller optimization, friction-reducing hull coatings, digital route optimization, electronic bills of lading, remote safety inspections by classification societies and cyber resilience will be the new normal.
We at Safe Bulkers, have been very active in the environmental front, setting the tone for the Cyprus flag the last years. We have taken action by placing our environmental investment activities at the very heart of our business strategy. We are committed to improving further the quality of fuel emissions and distinguish ourselves among our peers as an environmentally conscious leader. Taking risks and bearing investment costs comes in tandem. During the last three years we have invested more than $70 million in environmental upgrading of our fleet installing exhaust gas cleaning devices manufactured by reliable European makers in half of our fleet, and ballast water treatment systems ‘BWTS’ on 75% of our fleet, noting significant commercial benefits.
Shipping is a business that is all about tradition, experience and learning from past mistakes. Based on that philosophy, passing our knowledge, good reputation and an environmental friendly sustainable shipping business to the next generation, is the key driver behind our investment strategy. Safe Bulkers is an environ- mental industry leader. We believe, we lead by example the Cyprus shipping by investing ahead of competition, in the most technologically advanced and energy efficient vessels currently available.
I always refer that the major advantages of the Cyprus Flag and of the Cyprus registry such as the outstanding professionalism; the administrative support and practicality, testimony of which
has been the early vaccination of key personnel and superintendents by the Cyprus Shipping Ministry. I encourage fellow Greek ship-owners that use till now other flags to embrace also the Cy- prus Flag. The responsiveness of the Cyprus Shipping Ministry to a fast changing competitive environment, by securing a favourable tax regime for the next 10 years will further enhance Cyprus as an international shipping business destination. We have been enjoy- ing this business environment since 2015, when the biggest part of our shipping management operations moved to Limassol.
Lastly, I would like to refer to Safe Bulkers Maritime Scholarships program for the professions of marine engineering, naval architecture and maritime law. During a year when the Cyprus society has faced significant challenges, and as a part of our corporate governance and social responsibility initiatives, we established an annual scholarship program which we feel can offer perspective for a brighter future to young students who are interested to indulge in the shipping industry. The program consists of 5 scholarships of 10,000 Euros each annually, which will be granted to students, either Cypriot citizens or Greek citizens settled in Cyprus, who are attending studies at universities in Greece and the United Kingdom. These scholarships will also benefit the next few years many shipping companies that may bring some of their operations to Cyprus.
* Chief Executive Offifficer and Chairman of the Board, Safe Bulkers Inc. & Vice President, Cyprus Union of Shipowners