Annual Report 2023

The winds of change are blowing – not only over shipping but over the entire world.

And as our industry – shipping – is inherently global, we are particularly affected when the tectonic power plates shift, creating a new geopolitical reality.

Whether it is Russia's war against Ukraine, rivalry between the USA and China, or global climate politics, these are all things that have significant implications for us in the shipping industry, and which we have had to navigate through over the past year.

It has challenged all of us, I dare say. But let us pause for a moment and rejoice in the fact that we have come through the past year more than well. We have kept the supply chains flowing, and many of our shipping companies have delivered extra­or­di­na­rily impressive results. And even though freight rates in many segments have taken a significant hit, it is still possible to achieve remarkable results.

I am particularly pleased that this year has brought a couple of milestones in the green transformation of shipping. Maritime transport was included in the EU's emissions trading system, and shortly thereafter, a political agreement on FuelEU Maritime was also reached, which will ensure that more green fuels are blended into the tanks of our ships.

Now, all our attention is focused on the upcoming global decisions – starting with the summer meeting of the UN's International Maritime Organization (IMO), where member states will need to agree on a new greenhouse gas strategy. In close collaboration with the Danish Maritime Authority, the government, and especially the Minister for Industry, Business, and Financial Affairs, we have worked diligently to secure support for the most ambitious regulation possible. We simply need other countries to join us in making shipping climate-neutral by 2050 at the latest. This is where it matters.

Regardless of our work towards a climate-neutral future, there is a significant task at hand right now to increase the energy efficiency of our ships. The shipping companies are taking a substantial responsibility, assisted by the many innovative subcontractors we have in the maritime ecosystem in Denmark.

However, we still have too much CO2 in our atmosphere. That is why it was also historic when the talented people at the CCS partnership Greensand injected the first CO2 into the Danish subsurface in the North Sea. We need to scale up these solutions and obtain the necessary permits, but then it can become an invaluable contribution to achieving Denmark's and the EU's climate goals.

In line with our focus on green transformation, Danish shipping companies are investing in green newbuildings like never before. In the latest report, over half of the ships in the Danish shipping companies' order books were green. We expect the first e-methanol-powered ship under the Danish flag to be launched this summer.

There is reason for optimism. Danish shipping remains strong, and we are setting all sails to steer global shipping onto a climate-neutral course.

Jacob Meldgaard, CEO of TORM and Chairman of Danish Shipping