Fincantieri Gets Order Valued at Over $2.3B for Three Princess Cruise Ships

Fincantieri built new ships for Princess delivered in 2024 and 2025 (Fincantieri)

Published Apr 15, 2026 10:46 PM by The Maritime Executive

 

Italian shipbuilder Fincantieri and Carnival Corporation’s Princess Cruises confirmed an order for three new large cruise ships valued at over $2.3 billion (€2 billion), extending the record cruise ship orderbook. The orders are in keeping with Carnival Corporation’s declared strategy of strategically pacing its new ship orders for metered growth in its brands.
 
The cruise line is calling the new ships the largest and most advanced platform for its brand. At an estimated 183,000 gross tons and with a passenger capacity of 4,700 in lower berths, the ships will be approximately three percent larger in size while increasing capacity by more than nine percent versus the sister ships Sun Princess and Star Princess, built by Fincantieri and delivered in 2024 and 2025.

Princess is calling the ships “a next-generation platform” designed to further enhance its cruise experience while saying the new ships will build upon the Sphere Class platform (i.e. Sun Princess and Star Princess) previously developed by Fincantieri. The line said the new ships will feature completely reimagined outer decks, staterooms, and Piazza designs that cater to the brand's global travelers and diverse deployments. 

Similar to the two recently delivered Princess ships, the new Voyager class ships will be dual-fuel powered, primarily using Liquefied Natural Gas (LNG). It has become the fuel of choice for much of the cruise industry after the first cruise ship, AIDAnova, was introduced in 2018 with LNG-fueled engines. The new Princess ships will be Carnival Corporation's 19th, 20th, and 21st LNG-based vessels and are part of the company's ongoing fleet enhancement efforts.

In keeping with Carnival’s strategy, however, the deliveries are scheduled for late 2035, 2038, and 2039, extending the industry’s orderbook beyond the newbuilds due for Norwegian Cruise Line and Oceania Cruises in 2037. Carnival Corporation previously had seven additional new ships under contract that are scheduled for delivery between 2027 and 2033.

The new ships, which will be the largest by capacity in the Princess Cruises fleet, will be built at Fincantieri's shipyard in Monfalcone, Italy. They add to Fincantieri’s large cruise ship orderbook, which also includes 200,000-plus gross ton ships for Carnival Cruise Line and Norwegian Cruise Line.

“These new orders secure a robust workload for our shipyards through 2039 and further support the profitable development of our cruise business, as outlined in our 2026–2030 Industrial Plan,” said Pierroberto Folgiero, CEO and Managing Director of Fincantieri. With the new Voyager-class ships, we are once again leveraging Fincantieri's distinctive expertise in sustainable, next?generation shipbuilding, supporting Princess Cruises in its growth trajectory and reaffirming our role as a trusted industrial partner for the evolution of the cruise industry."

The orders also demonstrate the industry’s confidence in long-term future growth. Globally, the cruise ship orderbook had already reached a record $86 billion, according to data released this week by Seatrade Cruise. They calculated that there were 76 firm orders for cruise ships and said that with several projects pending, the cruise ship orderbook is likely to soon exceed $100 billion. Yet, there are only about 350 cruise ships in service out of more than 60,000 commercial ships.

The trade group CLIA (Cruise Lines International Association) has forecasted that cruising will reach 40 million passengers annually by the end of this decade.

The Case for Luxury

Courtesy Regent

Published Apr 15, 2026 8:27 PM by Tony Munoz

(Article originally published in Jan/Feb 2026 edition.)

 

The global cruise industry is having its moment as passenger counts rise and amazing new ships are delivered. There's something for everyone – short cruises, long cruises; budget cruises, luxury cruises; family cruises, adults-only cruises – and everything in between. Not to mention the destinations, which are endless.

Founded in 1966 as Norwegian Caribbean Lines by Knut Kloster, Norwegian was a pioneer in the industry. It helped make the Caribbean the most popular destination in the world, and it's gone through all kinds of permutations in its 60-year history, achieving many firsts along the way.

Remember "Cruise Like a Norwegian" and "Freestyle Cruising"? Known especially for its innovative marketing campaigns, it helped popularize cruising among the American public and was one of the first to use mainstream TV.

It changed hands a number of times over the years, and it wasn't until 2014 that the company, as we know it today, came together. That's when the renamed Norwegian Cruise Line, having gone public the year before, bought Prestige Cruise Holdings, which included the Oceania Cruises and Regent Seven Seas brands.

The lineup was complete. Three brands – each a leader in its category – with plenty of room for growth.

FOCUS ON LUXURY

Today, the company is realizing its full potential, and it's doing so by focusing on luxury and the upscale, affluent cruiser.

Not entirely, of course. Its contemporary Norwegian Cruise Line brand appeals to a wide audience of families, young couples and first-time cruisers, but even Norwegian has its luxury element in the form of The Haven, an exclusive retreat on all of its ships that caters to affluent guests.

The other two brands, Oceania Cruises and Regent Seven Seas, are all about luxury, and a year ago Jason Montague came back to run them.

Since then, the company has announced plans for five newbuilds for its Oceania Cruises brand and four for Regent Seven Seas, adding much needed capacity and representing the biggest expansion in the two brands' history. Why? Because there's a massive amount of wealth out there and massive demand for luxury at sea, and Norwegian intends to substantially increase its presence in the luxury segment and help meet that demand.

THE FINEST CUISINE AT SEA®

Oceania is known for its cuisine and bills itself as "the world's leading culinary- and destination-focused cruise line." It used to be Norwegian's upper premium brand, but under Montague's leadership it's transformed itself into a fully luxury offering.

It's also now "adults only," emphasizing its focus on "experiential cruising" and "immersive experiences" (Montague's terms) for like-minded adults, who value their privacy while enjoying each other's company.

In January, Oceania Cruises announced to great fanfare the first of its new Sonata Class vessels – Oceania Sonata – due in August of 2027. Demand was extraordinary, and it's more than a year away! Sister ships will follow in 2029, 2032, 2035 and 2037. The new vessels are larger than the previous Allura Class and can accommodate about 200 additional guests, reflecting the increased demand for luxury travel where pricing seems to be no obstacle.

Moreover, one-third of all guest accommodations will be suites, up from 25 percent previously, including four new two-bedroom Owner's Suites and two entirely new categories, Horizon Suites and Penthouse Deluxe Suites.

THE WORLD'S MOST LUXURIOUS FLEET®

While Oceania Cruises is luxury, Regent Seven Seas is ultra-luxury – for those who want the ultimate in cruising.

"There's simply nothing like it," says Montague, and it's hard to argue the point. Everything is included – Business Class air, all onboard amenities, gratuities, liquor, unlimited shore excursions, WiFi, laundry. Even a private car and driver at certain ports if requested. "We really try to deliver an all-inclusive and unrivaled experience," Montague adds.

The staff-to-guest ratio aboard Regent ships is unparalleled and almost one-to-one. Everyone feels like a VIP.

The first of Regent's four new Prestige Class vessels, the Seven Seas Prestige, is due in December with three more arriving in 2030, 2033 and 2036. According to the company, Prestige "embodies Regent's vision for the future of ocean travel and furthers the brand's commitment to excellence as reflected in every aspect of her elevated design." Demand is through the roof.

Of special note is the re-imagined Regent Skyview Suite at nearly 9,000 square feet and going for $25,000 a night. No problem. Guests are lining up to experience it. It's the largest suite at sea and, while other cruise lines may build the biggest ships, Regent will offer the biggest suites.

"It's all about the experience," Montague explains. "That's what our guests want, whether it be on the ship or off. They have money, but they don't always have time. So when they travel to different parts of the world, they want to get the most out of that experience, and that's where we thrive. We help deliver the maximum experience they can get when they cruise with us."

Montague is in his element, and he couldn't be happier. Asked what his biggest challenge is, what keeps him up at night, he replies, "I sleep like a baby. Geopolitical tensions can cause problems, of course, but you just move the ship. You go someplace else. We're not a physical asset that's stuck in one place like our land-based competitors."

VALUE PROPOSITION

Cruising is having its moment, and so is luxury.

And with so much money floating around – what with Baby Boomers wanting to enjoy their retirement and the stock market being up, not to mention the desire for immersive experiences rather than material things – why not take advantage of it?

Oceania and Regent are uniquely positioned to do just that. They have the product, and pricing is apparently no object. In fact, the higher the price, the more people seem to want it.

"We're just a great value proposition compared to land-based hotels and other forms of travel where you have to pack and unpack if you want to see more than one spot," Montague says.

Tony Munoz is the magazine's founder, publisher and editor-in-chief.

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.

 

ABS Publishes Leading Whitepaper on Human Readiness Levels for the Industry

Human Readiness Complements Technical Maturity

Published Apr 15, 2026 9:01 PM by The Maritime Executive

[By: ABS]

“Emerging maritime technologies require qualification processes that extend beyond technical maturity; Human Readiness Levels (HRLs) provide a structured approach that supports safer operations while reducing unnecessary cost and rework.”

That is an excerpt from the latest industry-leading research from ABS, Beyond Technology Readiness: Applying Human Readiness Levels in Maritime Systems, which examines existing gaps in maritime human?system integration and demonstrates how HRLs can be integrated into current maritime qualification processes.

“Technical maturity alone is not sufficient to achieve operational safety. While existing frameworks offer valuable insight into technical maturity, they do not account for the human element that ultimately interacts with, operates, maintains and makes decisions with the technology. In this whitepaper, ABS is providing guidance for owners and vendors to incorporate human factors early so new technologies can be introduced more safely, effectively and with greater confidence,” said Michael Kei, ABS Vice President, Technology.

Technology readiness levels focus on hardware and software performance, while HRLs evaluate: operator roles and responsibilities; cognitive workload and decision authority; interface usability and interpretability; alarm strategy effectiveness; training effectiveness; procedural completeness; and organizational readiness.

The ABS whitepaper builds on existing guidance from the American National Standards Institute (ANSI) and the International Maritime Organization (IMO) and provides HRL maritime application examples for remote inspections, autonomous operations, AI decision support tools and augmented reality devices.

Recent research on maritime autonomous surface ships (MASS) has highlighted emerging risks associated with supervisory control, automation trust, alarm overload and degraded situational awareness. ABS identifies ways to integrate HRLs into maritime qualification processes such as the ABS New Technology Qualification program, SMART notations and verification and validation guides.

The products and services herein described in this press release are not endorsed by The Maritime Executive.

AI-Enabled ETA Management Could be the Key to Solving Port Congestion

iStock

Published Apr 13, 2026 8:25 AM by Petter Andersen, VP Shipping, StormGeo

 

An expanding global fleet. Bigger ships. Growing trade volumes. Slower port turnarounds.

Port capacity is under increasing pressure and congestion is a significant challenge – raising operational costs for shippers, disrupting global supply chains and hitting economic activity. But AI-driven predictive ETA management can optimize port turnarounds to ease logistical impacts.

The smooth transit of 90% of global trade carried by sea remains hostage to port congestion stemming from supply-demand imbalances, operational inefficiencies and lagging investments in infrastructure. Weather also has an impact, along with labour issues and logistical constraints such as a lack of crane availability, yard space and inadequate landside transport connections.

Visibility is therefore key for vessel operators to avoid the ‘rush to wait’ at ports. This requires actionable data insights to determine accurate ETAs that can inform speed decisions to save fuel and optimize arrival times.

Counting cost of congestion

Congestion at ports can affect schedule reliability – adding days or weeks to transit times – as well as disrupt industrial production and push up freight rates due to a dearth of vessel capacity, while also increasing demurrage and detention charges. Consequently, carriers may be forced to reroute vessels or blank sailings.

As well as the negative costs and revenue impacts of port congestion, this can result in higher emissions from unplanned idle time at anchorage or suboptimal ETA management leading to higher than necessary speeds, while there are also safety concerns due to crowded waters.

Port congestion is compounded by the productivity demands of modern megaships – with ultra-large containerships discharging and loading 3000-5000 containers per call to extend berth times – that can put a strain on terminal capacity, especially if several such vessels arrive simultaneously.

Ports are also vulnerable to sudden demand surges caused by pre-holiday shipping rushes or global trade upheaval triggered by tariff changes that can lead to front-loading ahead of implementation to boost cargo shipments – causing delays, higher freight rates and congestion.

Port infrastructure issues

For example, berth waiting times can extend to several days during peak periods at Singapore – the world’s second-largest container port by TEU volume – while the European gateway ports of Antwerp and Rotterdam experience seasonal congestion, especially during the peak Q3/Q4 shipping season and when industrial action disrupts operations, according to research firm Kpler.

The biggest challenge is matching port capacity with shipping demand.

There is a lack of transparency about berthing slot availability in relation to expected ship traffic and arrival times, particularly in the container trade and possibly more so in bulkers and tankers. This means a slot may cease to be available for a waiting vessel if a port is working at full capacity, or available berths may not be used if expected vessels fail to arrive.

This leads to sub-optimal port utilization, putting intraport capacity utilization under pressure. Consequently, a port may develop port infrastructure that isn’t really needed. This also results in bottlenecks, slower vessel turnaround times and voyage delays.

Such bottlenecks – when the volume of ships calling at ports exceeds terminal capacity to efficiently process them – cause a domino effect where a delay due to congestion at one port ripples down to other ports on the route to hit entire trade lanes. Local congestion thus becomes global disruption.

S&P Global’s latest global port congestion analysis indicates a general decline in port efficiency globally with decreased port moves per hour, longer arrival processing times and increased average port hours at most ports across five regions – Northern Europe, North-East Asia, North America, South-East Asia and the Mediterranean.

Optimizing port traffic flows with AI

However, port traffic flows can be optimized by leveraging AI-driven intelligence used in smart voyage management that can enable predictive ETAs and earlier decisions on berth planning when there is a transparent flow of information between the port and shipping company.

Predictive ETA management uses AI analytics and advanced algorithms to forecast accurate arrival times based on a range of real-time data inputs – weather, vessel performance, traffic and navigational, and port and terminal operations.

This can enable more efficient planning of port calls through integration of port congestion insights, berth availability data, traffic events and analysis of avoidable waiting time.

Voyage intelligence, which combines meteorological, technical and operational data to predict ETAs, makes it possible to better navigate port call congestion when port information is included in the data stream.

Faster turnarounds, fuel savings

Real-time updates allow dynamic recalculation of optimal routes and speeds based on scenario analysis to determine the best route with the lowest fuel use and optimal arrival window.

One possible scenario is that a vessel could adjust speed 48 hours out to align with an open berth slot, thereby cutting waiting time from 18 hours to zero. It is all about facilitating the shift from a ‘rush to wait’ to just-in-time arrivals.

Ship operators are increasingly using cost-benefit analysis to vary speeds and save fuel within traditional contracts as part of intelligent routing, which can result in faster port turnarounds and savings of 5-8% in fuel and emissions, while also improving CII ratings. This is low-hanging fruit with minimal investment.

'Air traffic control system’ for ports

There is clearly also potential for wider application of smart ETA management to serve as an ‘air traffic control system’ for ports to allow more efficient berth allocation, improved resource coordination and enhanced capacity utilization.

This can provide visibility of all vessels sailing into a port for more precise scheduling of marine operation resources – such as pilots, shore labour and equipment – and better alignment with outbound logistics to avoid unnecessary costs.

Predictive ETA management can alleviate chronic port congestion to deliver measurable gains in shipping efficiency and sustainability – and dramatically improve the reliability of the global supply chain.

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.

A Hierarchy of Controls

It's the key to passenger safety.

Image courtesy Survitec

Published Apr 14, 2026 10:38 PM by Pat Zeitler

(Article originally published in Jan/Feb 2026 edition.)

 PASSENGER SAFETY: A HIERARCHY OF CONTROLS
**By Pat Zeitler**

 

Those in the business of industrial safety are familiar with the concept, "hierarchy of controls."

It's predicated on the belief that health and safety risks are controlled through a hierarchy of actions that can best be described as an inverted cone or pyramid with the most effective control on top, narrowing down to the final and least effective control on the bottom. At the top of the pyramid is elimination, followed by substitution, engineering controls, administrative controls and personal protective equipment (PPE).

Safety professionals who dedicate themselves to cruise ships and ferry boats must implement this system in a way that encompasses both the industrial component of crew and passenger safety as well as the hospitality side of business.

In theory, eliminating hazards is best (step #1). However, many hazards are permissible in this system when the probability, risk or exposure is extremely low. A good example is how the cruise industry reacted during the 2020 Covid outbreak. It simply eliminated the hazard by ceasing operations until the threat of Covid went away. Another example would be a cruise operator not allowing a vessel to get underway due to reports of severe weather.

Step #2 is substitution. This action might be applied to a cruise ship or ferry boat in the form of changing a route (due to any number of factors) or reducing emissions by shifting to alternative fuels or electric propulsion – a substitution intended to mitigate the environmental hazard more than the immediate risk of personal safety.

The remaining three steps – engineering controls, administrative controls and personal protective equipment (PPE) – are tangible and easily recognizable by passengers and crew. This is where companies like Survitec, Consilium, Lalizas and Viking come into play.

ENGINEERING CONTROLS 

Engineering controls, in the most simplistic terms, is a modification made or engineered in a way that physically separates the hazard from the person. The key factor is that the worker or passenger will not have to adapt their behavior to the known hazard.

For example, Consilium is a company that has been in the business of fire detection for marine purposes since 1967, long before the concept of a hierarchy of controls even existed. Safety technology is what Consilium is known for, and its newest innovation, SensEye, is a video monitor integrated into Consilium's SMiG automated safety management system and, with the assistance of AI, will notify the crew when abnormalities are detected.

The system monitors passengers and crew, and if a passenger enters a restricted area the system will notify the crew or if someone takes a fall the onboard emergency management system can be activated in real time.

When asked what safety trends Consilium expects to see in 2026 and beyond, Martin Steen, Consilium's Senior Vice President Americas, stated, "AI, AI, AI. We're investing heavily, same as all other leading tech companies. We'll use the AI engine to validate all our detection units such as smoke and heat detectors, flame detectors, gas detectors and – in combination with a HD smart camera – analyze the potential risk onboard. We will guide the crew in making the right decision to save life and values onboard."

Incorporating AI is taking fire detection and suppression to the next level. Detection alone is an administrative control. When combined with response capabilities like fire suppression, equipment shutdowns and emergency management system activations, it looks like the gold standard of an engineering control.

ADMINISTRATIVE CONTROLS 

Administrative controls include regulations, company policies, materials that include warning signs and markers and even worksite communication systems. Consilium's safety management software could be considered an administrative control.

The defining characteristic of an administrative control is that it changes a crewmember or passenger's actions in a way that avoids a hazard. Training might be considered the ultimate administrative control, and vessel operators who team with Survitec have a partnership that includes access to a variety of training courses like safety equipment maintenance, lifeboat operator academies and customer-specific courses available upon request.

Survitec is best known for its life rafts and marine survival technology. Tracking and servicing life rafts, immersion suits, lifejackets as well as lifesaving equipment such as davits and fire suppression systems are key administrative controls that Survitec provides for its customers.

"We've seen a strong post?COVID resurgence in cruise?vessel contracting with shipyards," states Richard McCormick, Communications Director-MES &AES. "It's been significant not only for cruise operators but also for the wider network of suppliers that support them. As a result, we've secured record-breaking sales."

The success of 2025 is due in no small part to the newbuild MES (marine evacuation systems) orderbook. Systems like the Life Ark, Martin Ark 2 and Survitec Zodiac Evacuation Slide are setting the standard for passenger safety.

Looking ahead, Survitec is working on advanced automation solutions designed for the small ferry market as well as introducing its newest MES product, the Survitec Seahaven, the world's largest inflatable lifeboat.

PERSONAL PROTECTIVE EQUIPMENT 

The last step on the hierarchy of controls is the most tangible and easily recognized one – personal protective equipment or PPE. It's the last line of defense against a hazard.

While items like gloves, safety glasses and hard hats immediately come to mind, PPE for passengers includes things like Survitec Marine Evacuation Systems, life rafts, immersion suits and all lifesaving equipment in general.

Lalizas is another leader in this space.

"At Lalizas, safety isn't simply about products – it's about people and outcomes," says Iasonas Lalizas, Marketing & Communications Director. "In 2026, we continue to build on our legacy by delivering rigorously tested, regulation-compliant lifesaving equipment, partnering with global operators to enhance onboard safety protocols and investing in education and innovation that protect passengers and crew alike. Our mission remains clear: to elevate safety standards across every voyage, from commercial fleets to recreational craft."

PPE for crew and passengers at sea is what Lalizas is all about.

Since the company's inception in 1982, the core product lines of Lalizas have been life rafts, inflatable and foam lifejackets, man overboard (MOB) systems, immersion suits and breathing devices. While staying true to its product roots, Lalizas introduced two new product lines in 2025 – a mini-version of the Lalizas Foam Folding Compact lifejacket, designed to save stowage space on board, and in-house production of pilot and embarkation ladders.

Beyond developing products, Lalizas acquired Ativa Náutica, Brazil's leading lifejacket manufacturer, a move that strengthened its global network in South America.

No survey of maritime PPE would be complete without mentioning Viking Life-Saving Equipment – the world's largest supplier of marine evacuation systems for cruise ships and passengers.

When aboard a ship, there exists inherent risks that cannot be removed or substituted – a fact that Tage Sørensen, who founded Viking Life-Saving Equipment back in 1960, knew very well. He began producing inflatable rubber life rafts for local Danish mariners.

Today, Viking is a synonym for safety at sea. Its product line of lifesaving PPE includes life rafts, immersion suits and firefighting equipment as well as lifeboats, evacuation systems and life jackets. Viking does more for passenger safety than just providing PPE. Its customers rely on Viking for engineering controls like boat davits and evacuation systems as well as administrative controls that include servicing agreements for life rafts and fire control systems.

Personal protective equipment like life jackets, immersion suits and life rafts are what most people initially think of when the conversation turns to passenger safety, and those items are a key component. However, safety at sea – especially as it relates to passengers – must be examined through a multilayered approach like the hierarchy of controls.

Pat Zeitler is Dive Superintendent at Orion Group in Houston.

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.

 

Construction Starts on Port of Montreal's Long-Delayed Container Terminal

Courtesy Port of Montreal

Published Apr 13, 2026 9:31 PM by The Maritime Executive

 

Canada has finally started the construction on the new Contrecoeur container terminal at the Port of Montreal. The megaproject, which was first proposed nearly 40 years ago and has been the subject of delays and controversies, is expected to expand the capacity of the port by approximately 60 percent, making it the largest Atlantic coast port expansion in the country's history. The project will add up to 1.15 million TEU in annual container handling capacity, effectively eliminating capacity constraints that have bogged down the facility.

Prime Minister Mark Carney broke ground on the project, stating that the federal government through the Canada Infrastructure Bank has committed US$839 million in financing. Other financiers include the Government of Quebec that is contributing $94 million and Transport Canada with $108.5 million.

For the current Canadian government, Contrecoeur is a priority project for ongoing efforts to double non-U.S. exports and diversify trade partnerships, particularly in Asian markets. The new terminal will offer the shortest shipping route from North America's industrial heartland to Europe and the Mediterranean, two of the most promising alternative markets for Canadian importers and exporters. To seize this opportunity, the administration launched the Major Projects Office (MPO) in August last year, which streamlined approvals for the project, developed the financing model and helped secure permits in record time.

The project involves the construction of two berths, a container handling area, an intermodal marshalling yard connected to the main rail network, a truck gate connected to the road network, and secondary facilities. Work on phase 1, which includes in-water works such as dredging and quay wall construction, started in October last year; phase 2 is set to begin next year. Commercial operations of the new terminal are targeted for 2030, with DP World Canada having secured the agreement to operate the facility for 40 years.

Montreal has built a reputation as one of Canada's critical gateways to the world, handling over 35 million tonnes of cargo annually and around 2,000 ship calls. The port generates nearly $72.3 billion for the economy annually and supports approximately 590,000 jobs.

 

Net Zero by 2050? This Decade's Fuel Choices Will Decide

iStock

Published Apr 12, 2026 2:24 PM by Daniel Bischofberger

 

Green-hydrogen based synthetic fuels are stalled by a coordination problem across industries. Pooling demand and investment across sectors could unlock the production scale needed for shipping and other hard-to-abate industries, while strengthening energy security in the transition to net zero.

The debate over whether net zero is possible by 2050 may continue for years, while global emissions and temperatures continue to rise. But the question of green hydrogen’s role in achieving it has swung from hype to skepticism to a pragmatic center: shipping and several other hard-to-abate sectors need green hydrogen to reach net zero. Yet, the hydrogen itself remains elusive. Demand waits for supply. Supply waits for demand. It’s an ouroboros.

Technology ahead of fuel

Taking shipping as an example, the industry has innovated and invested in dual-fuel ships capable of running on both conventional fuels and synthetic ammonia or methanol – and these ships are already setting sail. Their engines are designed to use fuel as efficiently as possible: today to reduce emissions from fossil fuels, and in the future, to make the most efficient use of the more expensive synthetic ammonia and methanol.

The problem is that while ship technology ran ahead, the fuel front was stalling.

First, hydrogen fuel production is a massive undertaking: renewable energy, electrolysis, synthesis plants, storage, pipelines, and ports.

Second, the bill. To reach net zero by 2050, shipping alone will need 100 to 150 million tons of green hydrogen annually as feedstock, even at maximum efficiency across the sector. The hard-to-abate sectors together will need 500 to 600 million, an investment of $9 trillion.

So, just for the feedstock, shipping would need to fund $2 to 3 trillion upfront. Which sector can afford today to commit three trillion dollars for a fuel that will be ready in 5-10 years and require upfront purchase contracts of 10 to 15 years?

And yet, that’s the timeline: 25 years to 2050.

The snake eating its tail

Meanwhile, the collapse of hydrogen projects around the world proves that the challenge is more than isolated anomalies; it is systemic.

Underpinning shipping’s deadlocked fuel transition is a set of five tightly linked factors – fuel fragmentation, geography, finance, regulation, and port constraints, that reinforce each other.

First, fuels. In the absence of synthetic fuels, shipping is trying to juggle oil, diesel, liquefied natural gas, and biofuels. This hedging is rational, but it dilutes investment and prevents any single fuel from scaling. It would be comparable to an electric vehicle charging infrastructure with 12 different types of current, which thankfully isn’t the case, or there would probably be no electric vehicles.

Second: geography. Following the oil and gas model, hydrogen production is concentrated in a few nation-scale projects – some as large as half of Switzerland. For shipping, 80% of the global fleet operates on flexible routes. An early market that forces trade to reroute from 6,000 ports to a mere handful of fuel supply hubs will limit adoption. Aviation would face a similar challenge.

Third: finance. Shipping’s low-cost, low-margin business model is predicated on the universal availability of the cheapest fuel in the global mix. Synthetic fuel contracts overturn every precedent: expensive, long-term, limited.

Fourth: regulation. Shipping’s global regulation should be a strength. Global carbon pricing could level the playing field for the entire industry. However, that strength depends on a two-thirds vote from member states. With the onus on national governments and local producers to assemble subsidies, permits, materials, and financing, many are reticent to approve the carbon pricing that would force demand. Aviation faces a similar challenge.

Fifth: ports. Ports are already stretched for power, land, and trained operators. Most cannot justify investment in new bunkering systems without predictable supply and demand.

The ouroboros tightens, and every hard-to-abate sector faces some version of this deadlock loop.

Breaking the loop

There is one way to get the snake to release its tail: give it more to eat – with coordinated demand across sectors.

Both shipping and aviation giants have tried to make their own hydrogen and synthetic fuel supplies. Each industry has tried to pool demand within the industry. It hasn’t worked, because no single company or sector can carry the cost and scale of green hydrogen alone. The balance sheet requires multiple industries. Shared offtake produces contracts large enough to start building, and allows sequential planning. Shared risk makes early projects insurable, and shared infrastructure avoids duplication.

Competition across sectors is stalling production, but collaboration can enable it.

Chance or illusion?

The willingness to embrace cross-sector collaboration depends on whether fossil fuels are still regarded as the safer economic bet.

However, even the oil majors are beginning to question that assumption. Wood Mackenzie estimates that oil and gas production could fall nearly 40% by 2040 without hundreds of billions of dollars in new upstream investment. Oil companies therefore face the same dilemma as hydrogen producers: demand uncertainty is freezing investment on both sides of the energy transition.

In the Asia-Pacific region, that same uncertainty, combined with volatile fossil import supply, is accelerating the shift toward carbon-neutral energy security.

China made that decision before many others had even asked the question. It cornered the global market in critical mineral processing for clean technologies, overbuilt renewables that can now be converted into hydrogen and synthetic fuels, and scaled its shipbuilding industry within four decades. As with electric vehicles, China can absorb early fuel price differentials through subsidies and leverage its domestic market to drive costs down.

China’s integrated energy, industrial, and shipping policy is material to developing the cross-sector sequencing required to make the transition work. Despite its size, it is also bringing smaller, modular e-fuel facilities online faster and cheaper, with one unit producing over 300,000 tons of green ammonia per year, already on export to Asia Pacific and Europe.

In Japan, Korea, and Singapore, the focus is on imports. Utilities are committing to ammonia offtake under national energy strategies, allowing safety standards, terminals, and bunkering systems to develop ahead of shipping demand.

Meanwhile, the Chinese modular approach is already being exported to Brazil. Vast land availability and very low solar power costs give Brazil a strong advantage in exporting synthetic fuels, and the country is already developing the ports of Açu and Pecém as green hydrogen and e-fuel hubs for power generation, industry, and shipping.

Across these cases, the pattern is consistent: land-based sectors lead; investment, risk, infrastructure, and offtake are shared and publicly supported; shipping follows once the regulatory framework is in place.

The decade of decision

At a time when the global debate between reinvesting in fossil systems and accelerating a fossil-free future is hardening once again, which path is industry betting on?

Is net zero possible by 2050? That depends on the decisions taken in this decade. The trade-offs will be felt by the next generation, one way or the other.

The task for industry and institutions is to move beyond siloed efforts and coordinate demand, infrastructure and investment across sectors to build a secure, net-zero energy future.

Daniel Bischofberger is chief executive of Accelleron, a maker of turbochargers, fuel-injection systems and digital technologies for the energy and shipping industries.

 

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.

S. Korea Donates Patrol Vessel to Help Ecuador Fight Drug Smuggling

Korea Coast Guard's patrol ship 3001, recently refurbished and painted in haze gray to become BAE Jambeli (Korea Coast Guard file image)

Published Apr 13, 2026 6:05 PM by The Maritime Executive

 

Ecuador intends to push its full-scale war on drug trafficking and organized crime a notch higher with the impending arrival of a multipurpose vessel that was donated by South Korea in 2024.

The Ecuadorian Ministry of National Defense says that the BAE Jambelí is currently in San Diego, U.S, en route to South America. She is slated to become a key asset in the war against the cartels that have turned Ecuadorian waters into a haven of drug trafficking to key markets in Europe and the U.S.

Christened Jambelí, the vessel is a former Korea Coast Guard ship that was commissioned in 1994. The 3,000-tonnes Tae Pyung Yang-class offshore patrol vessel served for three decades before being decommissioned in March 2024. Measuring 105 meters in length with a 15-meter beam, the vessel underwent full modernization and refitting before departing South Korea in January this year for a 62-day journey.

Upon arrival in Ecuador, the vessel is expected to become a critical asset for the Ecuadorian Navy. Her primary mission will be the fight against drug trafficking and organized crime. Apart from being armed with two 20 mm six-barrel Sea Vulcan cannons, the ship can carry three pursuit boats, a medium helicopter and 60 personnel. Endurance is 40 days, ideal for extended coastal patrols.

Jambelí’s other critical missions will include maritime surveillance and control, search and rescue, deterring illegal fishing and protecting the country’s marine environment off the Galapagos Islands. She also expected to provide logistical support to other military units.

“The countdown has already begun. Ecuador is preparing to receive a new force at sea. The country is strengthened and will not take a single step backwards in the defense of its people,” said the Ministry of National Defense in a statement.

Owing to its geographical location between Colombia and Peru - the world's largest producers of cocaine - Ecuador has in recent years become a key transit country for illicit drugs destined for Europe and the U.S. Recent estimates show that as much as 70 percent of cocaine produced in Colombia and Peru is shipped through Ecuador. The country’s Pacific ports, especially those in Guayaquil, act as the most efficient gateways for bulk cocaine concealed in containerized cargo.

President Daniel Noboa, who came into office in November 2023, has prioritized the war against drug cartels that have seen the country become one of the most violent in the region. Last month, the government deployed more than 75,000 police officers and soldiers in some of the most dangerous regions and is also expanding cooperation with the U.S. military and private security.

 

Op-Ed: Mideast Conflict Provides a Test of Economic Resilience

Areiram / CC BY SA 4.0

Published Apr 14, 2026 6:13 PM by The Conversation

 

[By Adi Imsirovic and Antonio Fatas]

The world economy survived the shocks of the Ukraine-Russia conflict, which has had limited impact on economic growth. But the escalation of hostilities in the Middle East has transformed what had been, until early 2026, a surprisingly benign outlook into a far more uncertain one. It has created the ultimate test for how resilient the world economy really is.

Amid stalled ceasefire negotiations, the US president, Donald Trump, has threatened a blockade of vessels transiting through Iranian ports in the strait of Hormuz. This sent oil prices back up over US$100 (£74) a barrel. Meanwhile the current ceasefire is looking very shaky.

The key economic factor in this conflict is straightforward: the near-halting of shipments through the strait and the closure of energy infrastructure.

These elements have disrupted roughly one-fifth of global oil production and nearly another 20% of the world’s trade in liquefied natural gas (LNG). With little spare capacity elsewhere, the result has been a sharp and rapid surge in energy prices.

Forecasts of price surges for benchmark oils

This is a classic energy price shock. The consequences for the world economy are predictable in direction but uncertain in magnitude. The latest interim economic outlook from the Organisation for Economic Co-operation and Development (OECD) projects global GDP growth at 2.9% in 2026. This is almost unchanged from its forecast before the war started.

But the OECD report also highlights the conflict’s expected consequences: energy exporters gain from improved terms of trade, while importers – including most of Europe, Japan, Korea, and much of emerging Asia – face a squeeze on real incomes.

For example, US growth has been revised up by 0.3 percentage points (to 2%) while growth in the euro area and the UK have been revised down by 0.4 and 0.5 percentage points respectively.

When it comes to inflation, exporters and importers face similar cost increases. Inflation is expected to increase everywhere, with headline inflation in the group of G20 countries predicted to rise by 1.2 percentage points to 4%. The European Central Bank (ECB) has made similar predictions for growth and inflation.

But these estimates are based on specific (and possibly optimistic) assumptions about energy prices. In their baseline scenarios, energy prices are expected to peak below US$100 per barrel this quarter and begin falling gradually from the middle of the year – as priced in by oil futures markets.

And what about less benign scenarios such as a resumption of the conflict or Trump’s threatened blockade limiting traffic in the strait of Hormuz? Energy prices could stay higher for longer and would be unlikely to be eased by a temporary ceasefire.

The here and now

The most immediate impact of the war on the global economy has been a sharp shortage of distillate fuels, particularly gasoil and jet fuel. This disruption comes at a time of seasonally high demand, driven by agricultural planting and the approach of peak holiday travel, when air traffic typically rises.

Gulf oil producers are key suppliers of these fuels to Asian markets, leaving countries such as South Korea, Singapore, Taiwan and Australia especially vulnerable to supply constraints.

Compounding the problem, crude oil from the Gulf is particularly suited to producing jet fuel and diesel, and cannot easily be replaced by refining alternative grades of oil. As a result, distillate prices in affected markets have surged dramatically, in some cases rising by as much as 200%.

Further blockage of the strait will starve the global market of at least 10% of its demand. This would result in a “demand destruction” (the curtailment of demand for road and air travel in particular) that can only be achieved through raised prices.

If the war in Iran were to go on just for another couple of months, prices for Brent could reach US$120 per barrel. Six months of conflict could see prices exceed US$200 a barrel. This is because supply losses are cumulative – as commercial and strategic reserves are depleted, the supply risk increases.

Oil price projections if the hostilities continue

The ECB’s March 2026 projections for the euro area incorporate some of these scenarios. For example, in what it calls an adverse scenario where oil prices peak at US$120 and decline slowly, economic growth in the euro area becomes negative for 2026.

And in its most pessimistic scenario, oil prices shoot even higher (US$140), which results in a deeper recession and inflation reaching more than 6%.

The last two scenarios are the perfect example of the stagflationary world that policymakers dread: contracting output and high inflation. In this environment, the levers that they have at their disposal are severely constrained.

Central banks face a classic dilemma: raising interest rates to contain inflation risks slowing growth even more. But cutting them to encourage spending and faster growth risks increasing prices at precisely the wrong moment. The ECB’s data-dependent, meeting-by-meeting approach is the right posture, but it offers no easy exits.

Fiscal policy faces its own challenges. Governments will be tempted to protect households and firms from higher energy costs, as they did after the 2022 energy crisis. Some targeted support for the most vulnerable would be legitimate and necessary, but broad subsidies that suppress energy prices send the wrong signal.

Countries that import energy have become poorer, and policies that negate this fact will only sustain energy demand at a time when the opposite approach is required. Put simply, everyone needs to be more efficient or use less energy. And let’s not forget that governments, because of high levels of debt, now have even less fiscal room to support the economy through this crisis. With no clear path out of the hostilities, the resilience of the global economy is facing a very tough test.

Adi Imsirovic is a Lecturer in Energy Systems, University of Oxford.

Antonio Fatás is a Professor of Economics at INSEAD.

This article appears courtesy of The Conversation and may be found in its original form here. 

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.

 

IMF Warns Against Fuel Hoarding as Reality of Oil Supply Cut Sets In

Damage to the tanker Al-Salmi after an Iranian attack, March 2026 (KPC)

Published Apr 13, 2026 7:49 PM by The Maritime Executive

 

Following news of a collapse in talks between the U.S. and Iran last weekend and the launch of a new U.S. Navy blockade at the Strait of Hormuz, oil markets are adapting to the prospect of a longer period of supply constraints. Benchmark Brent prices for June delivery remain below $100 per barrel, but the volume of physical barrels has not changed - and the last of the tankers that made it out of the Gulf before hostilities began will finish their delivery voyages soon, to be followed by a gap. 

From here out, energy analysts warn, the world must adapt to the reality of 10-15% less oil until several basic constraints are satisfied: a durable security arrangement at Hormuz that satisfies shipowners; inbound empty tankers arriving at Gulf loading terminals; and a restart of shut-in wells in Iraq, Kuwait, the UAE and Saudi Arabia. As onshore storage is limited in the GCC, the long process of restarting well production cannot begin until empty tankers pass westbound through Hormuz and reach loading berths, thereby providing a tank for the oil to go into. At present, about eight million bpd of wellhead production is offline, according to OPEC; even if the U.S. and Iran conclude a peace agreement, the process of restoring full flow will take several months. 

Adaptations to the limited oil supply are varied, from demand destruction (Sri Lanka and Thailand) to fuel tax breaks (Europe) to product export bans (China). On Monday, the International Energy Agency, World Bank and International Monetary Fund urged national governments to reject the temptation to hoard fuel supplies by closing down exports. "The first principle should be to not impose export controls that only make the imbalance worse," said IMF managing director Kristalina Georgieva at an event sponsored by the Atlantic Council. 

Fatih Birol, head of the IEA, told Reuters that the organization stands ready to authorize an additional release from the international petroleum reserve system. It has already green-lit a coordinated release of 400 million barrels, and has room to go further, though the speed of delivery to the global market is constrained by practical limits of storage and distribution infrastructure.