By Charalampos Simantonis, President of European Shortsea Network and Hellenic Shortsea Shipping Association
The European maritime sector stands at a defining crossroad. As the European Union advances a comprehensive new maritime strategy aligned with the Green Deal and broader geopolitical priorities, shipping—long the backbone of European trade—is undergoing a profound transformation. With approximately 75% of the EU’s external trade transported by sea, maritime transport is not simply an industry; it is a strategic pillar of Europe’s economic sovereignty and resilience.
Within this evolving landscape, shortsea shipping maintains a uniquely critical position. It represents both a practical solution to Europe’s congestion and decarbonisation challenges and a sector facing structural, regulatory, and competitive pressures that demand urgent attention. At a time when the European Union seeks to build a greener, smarter, and more resilient transport system, the role of shortsea shipping must be reassessed with clarity and ambition.
The EU’s emerging maritime strategy is anchored in three fundamental priorities: decarbonisation, digitalisation, and resilience. These priorities are reflected in major policy instruments, including the extension of the EU Emissions Trading System (ETS) to maritime transport and the implementation of the FuelEU Maritime Regulation. These initiatives signal a historic shift, integrating shipping into Europe’s climate framework and introducing a direct carbon cost on maritime operations.
However, their implementation also raises significant challenges—particularly in the absence of a globally aligned regulatory framework under the IMO. The unilateral application of ETS and FuelEU creates a risk of competitive distortion, as European operators are exposed to additional compliance costs that are not borne by non-EU competitors operating on international routes. This asymmetry may incentivise evasive practices, such as rerouting via neighbouring non-EU ports, ultimately undermining both environmental objectives and the competitiveness of EU shipping.
Moreover, the lack of global fuel standards and pricing mechanisms creates regulatory fragmentation, complicating operational planning and investment decisions. Shipping is inherently international, and divergent regional rules increase administrative burden, legal uncertainty, and compliance complexity—particularly for shortsea operators with tight margins. At the same time, the premature imposition of carbon costs, without sufficient availability of alternative fuels or supporting infrastructure, risks penalising early movers rather than enabling the transition.
In this context, the gap between EU ambition and IMO progress highlights a critical concern: without international alignment, there is a real danger that well-intentioned regional measures could lead to carbon leakage, market distortion, and reduced effectiveness in achieving global emissions reductions.
At the same time, the strategy responds to a rapidly changing geopolitical environment. Maritime transport is increasingly exposed to security risks, cyber threats, and supply chain disruptions. The European Union’s renewed focus on maritime security and strategic autonomy underscores the need for a robust and adaptable shipping sector capable of withstanding external shocks.
Geopolitical developments have further highlighted the importance of resilient transport systems. Disruptions to global supply chains have underscored the vulnerability of long-distance trade routes and the need for diversified, regional alternatives. In this context, shortsea shipping can play a vital role in strengthening Europe’s strategic autonomy by providing reliable and flexible transport options within the continent.
Shortsea shipping has long been recognised as a cornerstone of European transport policy. By facilitating the shift of cargo from road to sea, it offers clear environmental benefits, reduces congestion, and enhances regional connectivity. It supports intermodality and contributes to more efficient logistics chains across the continent. Yet, despite these advantages, its full potential remains untapped.
The anticipated modal shift from road to sea has progressed more slowly than expected. Structural inefficiencies, administrative complexity, and limited integration with hinterland transport systems continue to hinder growth. This underperformance is particularly striking given the urgency of Europe’s decarbonisation objectives and the need for scalable, sustainable transport solutions.
At the same time, recent developments in climate policy risk further complicating this dynamic. The postponement of ETS II for road transport delays the introduction of a meaningful carbon cost for the road sector, effectively preserving its existing cost advantage over maritime alternatives. This creates a clear imbalance: while shortsea shipping is already exposed to carbon pricing through the maritime ETS, road transport remains comparatively insulated in the short term. The result is a distorted competitive landscape that may discourage the very modal shift the EU seeks to promote.
Without a synchronized and cross-modal approach to carbon pricing, there is a real risk of unintended consequences. Instead of accelerating the transition toward more sustainable transport modes, the current policy misalignment could reinforce the dominance of road freight, undermining both environmental objectives and the long-term viability of shortsea shipping as a greener alternative.
One of the most pressing challenges shortsea shipping is facing is the cost of decarbonisation. While the transition to low- and zero-emission shipping is essential, it requires substantial investment in new technologies, alternative fuels, and vessel upgrades. For shortsea operators—who often operate smaller vessels on tighter margins—these costs can be disproportionately burdensome. At the same time, the availability of viable alternative fuels remains limited, and infrastructure for their distribution is still under development.
Additionally, infrastructure also represents a significant challenge. The success of shortsea shipping depends on efficient ports and seamless connections to hinterland transport networks. However, many European ports are not yet fully equipped to support the next generation of green vessels or digital logistics systems. Investments in alternative fuel bunkering, shore-side electricity, and digital port infrastructure are essential. Equally important is the need for harmonised standards and coordinated implementation across the European Union.
Despite these challenges, the opportunities for shortsea shipping are significant. The transition to a greener economy creates a favorable environment for maritime transport, particularly as sustainability becomes a key criterion in logistics decision-making. Shortsea shipping’s lower emissions profile positions it as an attractive option for shippers seeking to reduce their environmental footprint.
Moreover, the integration of shortsea shipping into multimodal logistics chains can enhance efficiency and sustainability. By connecting maritime routes with rail and inland waterways, Europe can develop a truly integrated transport network that maximises the strengths of each mode. Innovation will also play a crucial role, with advances in vessel design, propulsion systems, and digital technologies driving the sector forward.
In an increasingly uncertain global environment, the strategic importance of regional transport networks is growing. Strengthening shortsea shipping can help reduce dependence on external trade routes, improve supply chain resilience, and support Europe’s broader economic objectives.
For the European maritime strategy to deliver on its promises, it must strike a careful balance between ambition and practicality. Decarbonisation must remain a central objective, but it should be accompanied by targeted support for shortsea operators, including financial incentives and access to funding for green investments. Regulatory simplification is equally important, as reducing administrative burdens can significantly enhance the competitiveness of the sector.
Investment in infrastructure must be accelerated, with a focus on both ports and hinterland connections. At the same time, greater harmonisation across Member States is essential to ensure a level playing field and avoid fragmentation. Above all, policymakers must recognise the strategic value of shortsea shipping and integrate it fully into Europe’s transport and industrial policies.
The European Union’s new maritime strategy represents a bold step toward a sustainable and resilient future. However, its success will depend on effective implementation and a clear understanding of the needs and potential of the shortsea sector. Shortsea shipping is not merely a complementary mode of transport; it is a key enabler of Europe’s green and digital transition.
The path forward is clear. By empowering shortsea shipping, Europe can accelerate the modal shift, reduce emissions, and strengthen its economic and strategic position. The challenge now lies in turning vision into reality—and ensuring that shortsea shipping plays a leading role in shaping the future of European maritime transport.
