EU urged to support liner shipping’s competitiveness and path to decarbonization

January 30, 2025, by Aida Čučuk

The World Shipping Council (WSC), the voice of the liner shipping industry, has called on the European Commission (EC) to recognize that liner shipping is investing in Europe and urged it to support the sector on its path to decarbonize supply chains, fostering open trade and protecting critical sea lanes from geopolitical disruptions.

The association welcomed the balance between sustainability and competitiveness struck in the Commission’s Competitiveness Compass, which will form the basis for the European Union’s (EU’s) Clean Industrial Deal, while also highlighting the importance of supporting the sector.

WSC’s President and CEO Joe Kramek said: “We are happy to see the Commission’s recognition that decarbonisation can drive competitiveness, and its commitment to intertwine it with EU economic, competition, and trade policies. This is the moment for Europe to seize the opportunity to support shipping in contributing to the competitiveness of a sustainable future EU economy.”

The new measures are, reportedly, envisioned to de-risk investment in renewable energy and the production and distribution of renewable and low-carbon transport fuels. According to WSC, these steps are crucial for Europe to establish itself as a maritime energy hub.

“With exports bringing over €2 trillion to the EU each year, the movement of goods across oceans is essential to Europe. In fact, 90% of goods by volume enters and leaves the EU by sea transport. These ships connect Europe to over 900 ports worldwide, reaching key markets and building important international relationships,” WSC added.

“The Commission’s pledge to make a priority of completing the EU single market and reducing the administrative burden will be welcomed by ocean carriers as well as shippers.”

As per WSC, to reach this goal, the coming years will require the creation of a maritime space without barriers, the removal of customs formalities for goods transported by sea intra-EU, the streamlining of external border controls, the harmonization of rules and the further reduction of bureaucracy.

To note, the year 2024 was marked by WSC’s advocacy for a “smoother” and “faster” path toward maritime decarbonization as the industry gets ever closer to its climate neutrality targets.

Specifically, WSC called on the EU to craft such policy frameworks that could facilitate the “pivotal” role of shipping in a globally connected economy and to work in tandem with the industry on the path to net-zero shipping by 2050.

Furthermore, the association submitted a detailed proposal, including design updates and regulatory text for the ‘Green Balance Mechanism’ to support the timely development of effective climate regulations for shipping.

In December 2024, WSC also made organizational changes. Soren Toft, CEO of Switzerland’s heavyweight Mediterranean Shipping Company (MSC), became the new Chair of the WSC Council Board, and Randy Chen, Vice Chairman of Taiwan’s shipping major Wan Hai Lines, the new Vice Chair.