As the world’s largest flag, the Liberian International Ship & Corporate Registry (LISCR) is at the forefront of global fleet trends. In your view, is the industry adapting quickly enough to meet the net zero by 2050 goal?

The industry is making progress when it comes to decarbonisation but it’s clear that greater clarity from the International Maritime Organization (IMO) would reassure shipowners and help speed up the process of adapting to meet decarbonisation goals.

There have been examples previously where shipowners have begun investing in technologies only to find out these won’t be deemed compliant in the future, so avoiding this through greater clarity can help speed up the transition.

While there’s a big focus on the 2050 goal of net-zero GHG emissions, it’s crucial that flag registries and industry organisations agree on and implement robust IMO mid-term measures that provides shipowners with meaningful incentives to foster innovation and investment in new technologies as well as accelerate the uptake of zero and near-zero GHG emissions fuels. This is the only way GHG emissions from international shipping stand a chance of reaching the indicative reduction targets in 2030 and 2040, and eventually the net-zero GHG emissions goal by 2050.

And how are these changes affecting the role of shipping registries?

At LISCR we believe in collaboration with quality stakeholders to resolve the decarbonisation challenge for shipping. Since 2016 we have been involved in more than 40 innovative ship design joint industry projects (JIPs) in partnership with shipyards, class societies, shipowners and other relevant stakeholders resulting in Approval-in-Principle for innovative ship designs, new technologies and alternative fuels using a risk-based approach.

Earlier this year we took our JIP concept to the next level by establishing the Innovation & Energy Transition Team that, in addition to accelerating our involvement in JIPs, are providing a number of added value services to our shipowner clients. These services help provide certainty for shipowners in their decision making process for investments in innovative solutions, new technologies and alternative fuels.

Another important aspect of our work at LISCR is to be the voice of shipowners to ensure their experiences are heard at the IMO and properly considered when developing new regulations for international shipping. This includes the IMO regulatory framework supporting our industry’s transition to net-zero GHG emissions by 2050.

What does the industry need to do to ensure it has the talent required to achieve a net zero future?

We absolutely need the broadest possible talent pool to address the challenges of the future.

One thing to acknowledge is that newer generations entering the workforce tend to have different desires and expectations when it comes to the world of work. Many young people are concerned they won’t enjoy sufficient agency and want the opportunity to act as entrepreneurs. Meanwhile, the maritime industry can be quite rigid and bureaucratic, which is perhaps understandable to an extent given the physical and at times dangerous nature of the work. We need to ensure the correct balance is found in order to meet the expectations of new entrants to the workforce.

We should look at where we can introduce virtual training, where appropriate, as this could mean reaching talented new employees who are unable to make multiple trips to a training centre.

Continued progress to make time spent at sea more attractive would also help. Whether that’s through providing reliable internet connectivity for staying in touch with family back home, or simply creating positions that require less time spent away.

How are geopolitical issues, the growth of the dark fleet and sanctions changing the nature of the role flag states play?

Flags now have responsibilities that have not traditionally fallen within their remit. Due to sanctions and the dark fleet in a couple of years, we have been required to keep up with the demand for information on cargo positioning, vessel spoofing, cargo values and so on. It is a whole different set of rules for Flag States.

To aid in this information sharing and collaboration is vital – and we work with other major open registries on an online database for other registries and IMO Member States to catalogue information on ships that might be engaging in sanction activities or doing things like ‘flag hopping’.

When it comes to cases like geopolitical instability in the Red Sea, for example, we may be called upon to attempt diplomatic intervention if a vessel runs into trouble. But more commonly and more usefully, flags have an important role in obtaining and sharing information with vessels in order to help them avoid difficulties and reroute if necessary.

Following recent elections, will a rise in protectionism and an introduction of tariffs pose challenges for flags?

Nothing would surprise me if tariffs were to be imposed on Flags – often it is seen as an easy way forward to focus on us.

One of the big general challenges for our industry is that there’s a tendency to use restrictions and regulations that limit how people do business as opposed to competing on the quality of service.

There’s a more general point here that understanding quality of service and gaining transparency across the entire ecosystem could improve outcomes. For example, the Flag State Performance Table provides useful information, but we could also extend that to look at Port State Control – what sort of training are officers being given and how is their performance evaluated?

Flag States face a lot of scrutiny but have a long track record of delivering results for businesses and consumers. Ultimately, too many restrictions won’t deliver favourable outcomes. If we lost open registries, the most notable outcome would be consumers paying around five times more for basic goods. As such, we’re hopeful common sense will prevail when it comes to protectionism and shifts in the regulatory landscape – the Liberian Registry will continue to demonstrate its commitment to maritime safety, environmental standards, and service excellence, as it has done since 1948.