Tom Barlow-BrownAs the UK maritime industry steers toward the future, piloting between the demands of decarbonisation and the urgent need to modernise its shipbuilding sector, Peter Aylott, Director of Policy at the UK Chamber of Shipping, sheds light on the path ahead.
In an exclusive interview with ship.energy, ahead of the Shipping UK Conference taking place on 8 October during Maritime UK Week 2024, Aylott gave an overview of an industry which is currently at a crossroads, balancing the push for renewable fuels with the stark realities of continued reliance on fossil fuels, while ensuring economic stability. As well as the need for strategic partnerships and government support in modernising the sector.
Aylott highlighted that while decarbonisation is an industry priority, it cannot be achieved overnight. ‘We will need fossil fuels for some time in the transition towards that place in the future where we’ll be operating ships on different alternative fuels,’ he noted. Abruptly cutting off oil and gas exploration, particularly in the North Sea, could jeopardise thousands of jobs and harm regional economies, according to Aylott. The offshore sector, which still supplies 16% of the world’s fossil fuels, plays a critical role in this transition phase.
On the state of the UK’s shipbuilding capabilities, Aylott was candid about the challenges. ‘Shipbuilding is an incredibly difficult industry to get right, to be sustainable and profitable. I don’t think there’s any shipyard in the world that’s achieved that,’ he remarked. The current shipbuilding industry in the UK does not have the capability to build modern commercial vessels. ‘When it comes to traditional vessels, so tankers, dry bulk carriers, and short sea shipping, those sorts of activities, yes, we can repair them. But what we don’t do is build it from bottom to top,’ he explained.
He pointed out that the UK needs strategic alliances with more advanced shipyards in Europe and Asia if it hopes to rebuild its competitive edge. ‘Many of the shipyards in the UK aren’t as digital as their competitors in Europe. If you take a ship designer in Holland that wants to take its blueprint out for a build, it probably isn’t going to bring it to the UK because the UK isn’t digitalised in the same way,’ he said.
Aylott also stressed the importance of embracing new technologies like LNG propulsion and alternative fuels. ‘We haven’t moved into areas where transition fuels might be used,’ Aylott said, underscoring the urgent need for modernisation.
Collaboration between industry and government is key to achieving decarbonisation and revitalising UK shipbuilding, Aylott argued. ‘It’s only going to happen with strategic alliances,’ he said. ‘We’re only going to regain that competitive edge if we strike up alliances with mature, modern, technically oriented shipyards in Asia and Europe.’ He also emphasised that UK shipyards would need long-term government investment and international partnerships to rebuild organically.
Investment in port infrastructure is another area where the UK is lagging, Aylott noted. He cited the government’s commitment to invest £1.8 billion into port infrastructure as a positive step but cautioned that it needs to be aligned with the shipping industry’s needs. ‘Upgrading port infrastructure to support alternative marine fuels will require strategic planning,’ Aylott said. Determining the right fuel mix and ensuring bunkering capabilities for alternative fuels like LNG and ammonia are vital to supporting the industry’s green transition.
In addition, any upgrade of port infrastructure will need to be carefully aligned with multiple stakeholder interests to balance specific needs of different areas within the UK. ‘It will be quite nuanced…we have 400 ports in United Kingdom. So not everyone is going to get a piece of the cake. It needs to be where shipping dominates,’ Aylott stated.
As the industry awaits the outcomes of the IMO’s MEPC 82 meeting, which convenes in London next week, Aylott expressed optimism that global fuel standards and economic measures would be on the agenda. However, he acknowledged that the full implementation of these may take longer than expected. ‘We are expecting to see some conformity on a global fuel standard,’ he said. ‘But consensus on economic measures is less likely – it will generate a huge fund and agreeing how this would be distributed will take some time.’
Aylott made it clear that the UK’s maritime future depends on a delicate balance between embracing decarbonisation, forming strategic alliances, and investing in the necessary infrastructure to support a low-carbon future. The road ahead may be long, but with coordinated effort, the UK could once again emerge as a competitive force in global shipping.
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