12 March 2024 (Lloyd's List) - GERMANY still controls the world’s largest boxship fleet by tonnage and remains the industry’s seventh-largest beneficial ownership country, according to new figures published by the German Shipowners’ Association (VDR).
As of the end of 2023, the German merchant fleet consisted of a total of 1,800 ships, down slightly from 1,839 vessels the previous year. But aggregate gross tonnage increased from 44.8m gt to 47.0m gt.
Some 881 German ships — nearly half the overall total — are EU-flagged. Of these, 386 are registered in Portugal, 259 in Germany, 135 in Cyprus, 41 in Malta and 60 with another EU flag.
Greece, China and Japan are the top three beneficial ownership nations, with Germany sliding from sixth to seventh. But, Germany remains the leader in container shipping, with 29m gt, ahead of China on 28.1m gt, although industry observers point out that China has the edge by teu.
Most German shipping companies are small and medium-sized enterprises and 80% of them have fewer than 10 ships.
“The data underscore Germany’s status as one of the leading maritime nations in the world, owning and operating a significant fleet, while also affirming its position as a competitive hub for shipping,” VDR chief executive Martin Kröger told a press conference in Hamburg this morning.
“To preserve this standing in the future, it is crucial to maintain attractive and stable conditions for shipping companies operating within Germany.”
VDR president Gaby Bornheim addressed the challenges for the industry caused by war and conflicts, including in the Red Sea and the Black Sea, and the growing strains between China and Taiwan.
Bornheim described current developments as worrying, even though the shipping industry is in principle crisis-tested and can react flexibly to new conditions.
“If maritime supply chains continue to be constantly disrupted, at some point our sea-based supply will be at risk,” she added.
Germany conducts approximately 60% of its import and export activities via shipping routes, including essential goods such as energy, food, clothing, technology, furniture, and medicines.
“Maintaining a robust merchant fleet within the country is and continues to be of paramount importance for Germany. The encouraging current figures highlight the stability of the German merchant fleet,” Kröger added.
The number of young people entering the industry in 2023 grew 11% compared to the previous year, with 418 young people started training at sea, up from 377, and 214 on land, up from 192.
“The future of our shipping sector hinges on the skills and enthusiasm of well-trained young individuals. Their contribution is essential for advancing and future-proofing shipping in Germany,” Bornheim said.
“It is encouraging to see a growing interest among the youth in pursuing careers in the shipping industry. We remain committed to drawing young talent to maritime professions, reinforcing the notion that shipping is an attractive and promising field of work.”
Another challenge is the transition to climate-neutral operations by 2050, with the EU including shipping into its Emissions Trading System from this year.
“We endorse the principle of emissions pricing, recognising it as a potentially effective tool for enhancing climate protection,” said Kröger.
“Nevertheless, it is imperative for the German government to now promptly specify the modalities of integrating shipping into the emissions trading scheme, as a legislative proposal to transpose the European regulation into national law has yet to be presented.
“For us, the cornerstone of our operations is not only planning certainty, but also the assurance of uniform competitive conditions on an international scale.”
VDR was founded in 1907 and merged with the Association of German Coastal Shipowners in 1994. With around 150 members, it represents the largest part of the German merchant fleet.
