German Shipowners Cite Vital Role of Shipping Calling for New Support

The German Shipowners’ Association (VDR) released its annual report on the strength and vital role of shipping in the country’s economy and security. Citing “turbulent times” the group which represents the largest part of the German merchant fleet is calling for new long-term measures to support its smaller shipowners and efforts to reduce bureaucracy to increase global competitiveness.

The group highlighted in its presentation that despite global turbulence and uncertain times in international trade policy, that German shipping remains a key contributor to the country’s economic strength and supply security. They reported that approximately 26 percent of exports and 60 percent of imports are handled by sea.

“Without a strong and independent merchant fleet, there is neither economic stability nor national security – especially in times when geopolitical and trade policy risks are steadily increasing,” said VDR President Gaby Bornheim.

Although Germany remains a strong maritime hub and continues to rank seventh globally, VDR reported that the industry is slipping in key areas. German shipping’s tonnage has declined from a peak of approximately 90 million gross tons in 2010 and 2011 to a current 47.4 million gross tons. While container shipping remains the largest segment, Germany has slipped to third behind Switzerland (home of MSC Mediterranean Shipping Company) and China.

German shipping companies purchased 70 vessels in 2024 (1.9 million gross tons) and newbuilds numbered 74 vessels (2.6 million gross tons). However, sales numbered 180 ships (4.1 million gross tons).

“The VDR therefore calls for targeted, long-term measures to strengthen the competitiveness of German shipping companies and Germany as a maritime location to avoid falling behind internationally,” the group writes in its report.

While the total German merchant shipping industry consists of approximately 290 companies and a fleet of 1,764 ships, the VDR’s data highlights just under half are flying EU flags and only 15 percent are registered in Germany. Further, it highlights that 80 percent of German shipping companies are small to medium-sized companies with fewer than 10 ships, with 44 percent specifically operating a single ship.

It cites a broad range of challenges for the industry including Donald Trump’s imposition of tariffs which it says are causing uncertainty in the German and global merchant fleet. It also cites the geopolitical disruption to shipping routes and maritime trade. The VDR warns that national interests must not come at the expense of free global trade flows.

In addition to geopolitical and trade policy uncertainties, VDR reports that German shipping companies face an increasingly dense administrative burden within Europe. It says that double reporting requirements and regional special regulations on climate protection unnecessarily complicate ship operations and weaken competitiveness.

“It is high time for Europe and Germany to abandon their dubious leadership in excessive bureaucracy and regional special regulations. Streamlined processes and globally consistent climate protection requirements are essential to safeguard Germany’s economic strength at sea,” warns VDR CEO Martin Kröger.

While highlighting the challenges for shipping, VDR also reports a positive trend in 2024 as more young talent was attracted to the industry. It reports a 14 percent increase in trainees, with 499 training contracts at sea and 214 onshore. It highlights that shipping is attracting more young professionals while saying it is vital to continue to attract young talent into the industry.