The year 2023 can be characterized as a year of turbulence with geopolitical aggression in Ukraine and Middle East, disruption of sea trade in the Red Sea and the Suez Canal, efforts to control inflationary pressures within a high interest environment, uncertainty about the global Gross Domestic Product and the world trade. The sentiment in dry-bulk shipping was mixed demonstrating resilience towards the year end and the start of 2024, with expectations driven by the supply-demand equilibrium for the provision of transportation services.

However, the year 2024 signals a substantial drift towards the implementation of environmental regulations decided in the past by various decision-making bodies, as vessels now are classified by the International Maritime Organization on the basis of the carbon dioxide emissions as expressed by their Carbon Intensity Index in tones of CO2 per tone-mile,  their CO2 emissions are now taxed when they call in European ports through the European Union Emission Trading System, while additional regulations are expected to apply from 2025 onwards in European Union in relation to fuel carbon content FuelEU Maritime Regulation and later probably after 2027 worldwide, through the IMO Global GHG Fuel Standard.

Our decisions taken since 2020 for the gradual renewal of our fleet, through newbuild orders of the most efficient vessel designs complying with IMO EEDI Phase 3 regulation, the environmental upgrade of existing fleet, the sale of older vessels and the replacement with younger second-hand vessels has stabilized the average age of our fleet at about ten years old, while Safe Bulkers does not have vessels in the lowest IMO CII class “E” in relation to their green house gas emissions. In fact, we own 9 IMO Phase 3 vessels, and we expect the following years to take delivery of 8 more.

This is the result of our comprehensive effort on Environment, Social and Governance, which is described in this 2023 Sustainability Report presenting in detail actions in all aspects, including the Environment on which I was referred earlier, the return of a fair share to our Society through scholarships and other initiatives and the continuous upgrading of our governance framework the capstone of which is the formation of an ESG committee at the level of the Board of Directors.

Polys V. Hajioannou