The maritime and logistics industry is undergoing rapid change due to environmental regulations, geopolitical tensions, digitalisation, and supply chain disruptions. But while innovation and sustainability remain key priorities, the speed and cost of these changes are putting jobs and livelihoods at risk. “We all want to protect our planet and go green. But there has to be a reasonable pace, and a cost consideration,” says ANTON XERRI, General Manager at Focal Maritime Services.
“There is broad support for sustainability but the cost and pace of implementation must be considered and if compliance becomes unfeasible, businesses, particularly in transport and logistics, may struggle to keep up,” says Anton Xerri a leading maritime industry expert.
He explains how maritime businesses are having to comply with a raft of new environmental legislation amidst a very challenging context.
“Take the recent troubles in the Middle East. Besides the undeniable humanitarian catastrophe, the economic impact is huge, with ships coming from the Far East having to go all around Africa, through the Cape of Good Hope to reach Europe. This means longer delays and higher costs”.
“Moreover, transitioning to cleaner technologies, such as alternative fuel engines and electric vehicles, is not as straightforward and trucking companies cannot be expected to switch to EVs if the necessary infrastructure is not in place. If regulations move too fast, firms could face financial distress.”
Beyond environmental policies, the industry is facing digitalisation challenges, cybersecurity threats and labour shortages.
“To plan for the future, businesses need certainty and without certainty, investment and operational decisions become even more difficult,” Xerri insists.
These pressures not only affect maritime and logistics firms but also Malta as a sectoral hub. One such issue is the recent push towards investment in dual-fuel engines and alternative fuels like LNG and hydrogen whose practicality remains uncertain.
“As a bunkering hub, Malta faces limitations. Hydrogen, for example, requires three times the space compared to conventional fuels, so, large-scale adoption is unfeasible for now because such investments require years of planning.”
The Impact on Malta’s Maritime Transport Strategy
Given the divergent interests at EU levels, Xerri stresses the need for stronger advocacy and referred to the country’s national maritime transport strategy being developed under the leadership of Perit Karmenu Vella with a focus on sustainability while ensuring economic viability.
“We’re not just complying with international regulations but positioning Malta as a leading maritime hub in the Mediterranean.”
“Maltese industry stakeholders, including the Malta Maritime Forum and ATTO, are doing an excellent job representing the Maltese business community. However, government and authorities must push harder for proportionality and forge stronger alliances with like-minded Mediterranean countries to achieve common goals.”
Xerri explains how increasing EU regulation is already pushing maritime business to North Africa.
“This might not be a problem for ports based in Netherlands or Germany for example, but we are only a few miles off the African coast. If calling at European ports or undertaking maritime activities in European countries becomes overregulated, operators will find it easy to simply move to more convenient locations to our South”.
Referring to the acceleration of automation and digitalisation, Mr Xerri highlights how new technologies—autonomous vessels, smart shipping, and AI-driven logistics—are reshaping the industry.
“We are seeing increasing automation in vessel navigation, cargo management, and port operations which could reduce operating costs and minimise human error. The use of IoT, big data analytics, and predictive maintenance is becoming more widespread. However, as digitalisation expands, cybersecurity risks grow. This compels the industry to invest heavily in cybersecurity because an attack on shipping and port operations can cause significant financial losses and reputational damage.”
The COVID-19 pandemic highlighted vulnerabilities in global supply chains, prompting companies to focus on resilience.
“With global shipping volumes increasing, businesses are prioritising flexibility and digital tracking. The opening of new trade routes, such as those enabled by melting Arctic ice, will also have major implications for global shipping”.
Focal Maritime’s Transformation
Mr Xerri acknowledged that businesses must adapt to face the constantly changing market conditions and Focal Maritime will be expanding its offering to become a full-spectrum logistics provider, covering air, road, and sea transport, warehousing, and just-in-time delivery.
He explained how the company’s current major restructuring will see a consolidation of its operations under Focal Logistic Group. The structure will consist of the holding company (Antinvest) and incorporate Focal Maritime Services Co Ltd, Delta Container Services Co Ltd, Greenwaveshipping.mt and Combined Maritime Services Ltd under the Group Brand toenhance its governance and client responsiveness.
Mr Xerri will take over the role of CEO later this year and will be supported by a team made up of the Financial Controller, the Chief Operations Officer and the Chief Commercial Officer.
“We are also strengthening our market position through new agency partnerships, including representation of additional shipping lines and investing in digital solutions to improve efficiency and offer competitive pricing. Our core value will however remain – the personalised touch our clients know us for.”
“The logistics sector is going through a massive evolution and to survive, one needs to adapt and transform. We are doing all this to ensure business continuity,” concluded Mr Xerri.
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