Regional Focus – UK Report

UK remains leading maritime professional services hub 

Jos Standerwick is standing down as Chief Executive of Maritime London after nearly nine years in the position, moving on to become Head of Membership at the Baltic Exchange as well as Chair of the Steering Group for London International Shipping Week 2027 (LISW27). Here he provides his parting observations on the UK maritime professional services sector in excerpts from his speech at the recent AGM of Maritime London – which coincided with the association’s 25th anniversary.

When I first started in this role, I don’t think that anybody could have been aware of quite what was coming down the track in regard to the regulatory, geopolitical and geoeconomic environment. 

Since then, we’ve lived through COVID, the invasion of Ukraine, and the subsequent use of shipping as a direct tool of foreign policy, the effective closure of Suez, and now, of course, the evolving crisis in the Gulf. Alongside this, we’ve seen an unprecedented wave of regulation, both domestic, regional and supranational, including CII, EU ETS, FuelEU Maritime and of course the proposed Net Zero Framework.

All of this has changed how our industry operates, how it manages risk, and how it thinks about compliance. Throughout this period of complexity, the London market has adapted, and as various industry reports continue to state, shown remarkable resilience and positioned itself firmly as a solution centre for global shipping. 

For Maritime London’s part, regardless of the geopolitical or regulatory challenge, we have consistently demonstrated our ability to inform policymakers of industry realities, whilst also convening and informing our members. During COVID, for example, we worked closely with government to inform how the market was responding at a time when global supply chains were under an unprecedented strain. And at the same time, we rapidly pivoted to support our members and during lockdown were hosting fortnightly webinars that attracted hundreds of participants each time.

I think the other significant evolution we saw during COVID were the beginnings of a material shift in sanctions policy. In 2019, OFAC issued the first maritime advisory, quickly followed by OFSI in 2020. For the first time, regulators explicitly targeted the maritime mid-sector with detailed compliance expectations.

The invasion of Ukraine in February 2022 meant for the first time shipping was not just affected by geopolitics, it became a central instrument of it. The G7 response introduced a complex sanctions regime that directly targeted the maritime sector. And almost overnight questions of legal interpretation, compliance and commercial viability became central considerations to the market.

The introduction of the Oil Price Cap represented a further step change, an ambitious novel piece of sanctions policy that relied heavily on the participation of maritime professional services. Maritime London worked with partners, helping government to understand the practical realities of compliance and the potential consequences of the mechanism.

And I think as recent developments have shown, sanctions policy continues to evolve in ways that can be entirely unexpected and difficult to interpret. Supporting members through this complexity will be a key priority for the association moving forward.

The geopolitical disruption, of course, did not stop with Ukraine. We saw attacks in the Red Sea and, of course, the current crisis in the Gulf.  Throughout this, I think Maritime London’s position has been consistent with Government. The London market is responding as it should to a crisis of this nature. The primary constraint is not commercial. It is a question of safety. Safety of seafarers, of assets, and of course, to avoid significant environmental harm.

Alongside these geopolitical challenges, we’ve also navigated the evolving decarbonisation agenda. We’ve run seminars and briefings helping members understand the implications of new regulation, and we’ve been proactive in highlighting the commercial and contractual barriers to decarbonisation.

Alongside our Maritime UK colleagues, we worked with the Department for Transport towards the establishment of UK SHORE and together unlocked over £700 million worth of government funding through to the end of the term of this Parliament. We’ve also advocated for practical solutions to support investment into the market, including the recognition of UK services under export finance frameworks. 

A longstanding structural issue with the UK has been the decline of indigenous ship ownership. While challenges remain, particularly in relation to the broader fiscal and residency environment, we’ve worked closely with government and members to improve the competitiveness of UK tonnage tax and, as a consequence, of reforms in 2023, we’ve seen a 20% rise in tonnage within the scheme, which I think is a significant achievement. 

And we’ve also supported the development of the UK Shipping Concierge, taking learnings from other jurisdictions in terms of supporting international operators establish a presence in the UK. 

Maritime London was created by the Baltic Exchange as the promotional arm of the London and professional services market.  While Maritime London become independently constituted 25 years ago, promoting the market overseas has remained at the heart of what we have continued to do. Over the years, forums in Greece, Turkey, China (including Hong Kong) and other countries have become embedded in those markets’ shipping calendars, providing our members with platforms to showcase their expertise internationally. Our role in London International Shipping Week has also been significant. 

I’d also like to take this opportunity to highlight the work of our affiliated charity, the Maritime London Officer Cadet Scholarship. When I first became involved in the charity as a trustee, we had two cadets in training. Today we have grown significantly; we have 11 cadets in training and I think three due to join in the next intake. 

If I may end on a more personal reflection, I think that one of the most significant changes in recent years has been the level of scrutiny placed upon this industry. Shipping is now firmly in the public and political spotlight, and with that comes both opportunity but also risk.

Misunderstandings, whether around sanctions, ownership structures or market behaviour, can have real world consequences now, perhaps in a way that they did not in the past. Maritime London has a critical role to play in ensuring that the voice of this market is heard clearly, but most importantly, accurately. However, we can only do that with the support and engagement of the membership. We should be really proud of this market and the role that it plays in the global economy. And if we want it to remain the world’s leading centre for maritime professional services, we must be as strong at telling that story as we are in delivering it.