New report: Shipping is a key strategic industry in a more competitive world. New risks and opportunities abound for Danish shipowners

Shipping has always been a critical strategic industry. Shipping is the backbone of crucial supply chains that carry more than 80 % of the world’s goods and underpin the global energy system. 

This is truer than ever in a world that is becoming more unpredictable and where geopolitical tension is rising. 

Danish Shipping has commissioned global advisory firm Macro Advisory Partners to produce a report that analyses the risks and opportunities facing the Danish shipping industry in a changing world. 

The report highlights a series of key market risks arising from structural changes. They include more frequent geopolitical shocks, critical dependence on China in several areas, fragmented capital markets and data vul­ne­ra­bi­li­ties. 

For decades, China has viewed shipping as a key strategic sector and have in a short time made remarkable progress and become a key player in the global shipping industry. The newly elected Trump-administration also seems to have recognized the strategic importance of the shipping sector and are taking steps to boost American shipbuilding capacity and the number of ships under the American flag. 

“The great powers increasingly view shipping as a crucial strategic sector and are taking steps to bolster their position. As a small country with a large merchant fleet, Denmark – and our European allies – must prioritize framework conditions that allow our shipping industries to compete on the global market. We need to avoid critical dependence on others, especially when it comes to the production of the alternative, greener fuels that will power the green transition of the shipping sector in the years to come,” said Anne H. Steffensen, CEO of Danish Shipping. 

Shipping is particularly important to Denmark as a small, open economy that has become prosperous by trading with the rest of the world. Shipping is Denmark’s largest export industry. 

“This report shows that the importance of a thriving Danish shipping sector to national and economic security is becoming increasingly significant in a more volatile world. It is an expression of timely diligence that the government has established a growth team for Blue Denmark, which is currently working on recom­men­da­tions for the future framework conditions of our industry. We need to make sure that Danish shipping can remain competitive on a global scale and continue to thrive and make a substantial contribution to our national wealth and security for many years to come,” said Anne H. Steffensen. 

The report also mentions opportunities “for Denmark to enhance its existing maritime competitive advantages and improve their com­pe­ti­ti­ve­ness going forward”. These include working within the EU to expand trade ties and upscaling European green fuels production. 

“We must seize the opportunities that lie ahead of us. Danish shipping companies are among the most ambitious in the world, when it comes to embracing the green transition. We need to make sure that we turn going green into good business. And we need to make sure that Europe and our partners take the necessary steps to massively scale up the production of the green fuels needed to power a green future for the shipping industry. Shipping will help make Denmark richer, greener and safer,” said Anne H. Steffensen.