With maritime transport playing a fundamental role in Malta’s Vision for 2050 and in line with the industry’s importance for trade, energy security and supply chains, the Forum emphasised the need for timely action on key priorities.

The Forum’s proposals focus mainly on:
Strengthening critical port infrastructure and operational resilience.
Supporting maritime decarbonisation, cleaner fuels and digitalisation.
Investing in maritime skills, professional certification and cadetship opportunities.
Improving standards and coordination to ensure the effective implementation of the National Maritime Transport Strategy.
Promoting more sustainable cargo transport and strengthening Malta’s position as an international maritime centre.

The MMF stressed that these priorities require clear implementation plans, defined responsibilities, realistic deadlines and appropriate resources to translate national ambitions into tangible results.

As part of the presentation, the Forum reaffirmed its readiness to contribute its industry expertise and work constructively with Government and relevant stakeholders towards the effective implementation of these proposals.

Minister Chris Bonett was accompanied to this meeting by Permanent Secretary Bjorn Callus, and key TM officials, namely Leonid McKay (CEO), Dr Ivan Tabone (Registrar General of Shipping and Seamen), Karen Zerafa (COO).

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A comprehensive presentation of the Forum’s evolving position was led by Chairman, Godwin Xerri and Vice Chairman, Alex Montebello.  They maintained that the Forum’s consistently supported decarbonisation and the objectives of EU ETS. Nevertheless, they showed how, in line with their warnings ahead of its enactment, the application caused serious competition distortions and leakages with disproportionate risks on Malta and other member states.  These risks compromise fair competition, solidarity and other fundamental EU principles.

The Forum showed how EU ETS on maritime was not achieving its climate change objectives because ships still traversed the same sea but were increasingly diverting their transhipment operations away from the EU ports instead.  Besides this carbon and business leakage, the Directive was also diverting investment in new transhipment ports outside of the Union.

In the context of Malta’s dependence on global maritime connectivity, the presentation clearly outlined the risks of loss of mainline services with direct effects on the whole of the economy including connected feeder services, towage, pilotage, port services, terminal operations, stevedoring, mooring, ship agency, legal services, bunkering, importation of raw materials and supplies, and the manufacturing industry.  Loss of connectivity can cause the relocation of certain industry away from Malta due to market proximity considerations and limitations of export channels causing loss of jobs, investment and balance of payments imbalance for the country.

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A comprehensive presentation of the Forum’s evolving position was led by Chairman, Godwin Xerri and Vice Chairman, Alex Montebello. They maintained that the Forum’s consistently supported decarbonisation and the objectives of EU ETS. Nevertheless, they showed how, in line with their warnings ahead of its enactment, the application caused serious competition distortions and leakages with disproportionate risks on Malta and other member states. These risks compromise fair competition, solidarity and other fundamental EU principles.

The Forum showed how EU ETS on maritime was not achieving its climate change objectives because ships still traversed the same sea but were increasingly diverting their transhipment operations away from the EU ports instead. Besides this carbon and business leakage, the Directive was also diverting investment in new transhipment ports outside of the Union.

In the context of Malta’s dependence on global maritime connectivity, the presentation clearly outlined the risks of loss of mainline services with direct effects on the whole of the economy including connected feeder services, towage, pilotage, port services, terminal operations, stevedoring, mooring, ship agency, legal services, bunkering, importation of raw materials and supplies, and the manufacturing industry. Loss of connectivity can cause the relocation of certain industry away from Malta due to market proximity considerations and limitations of export channels causing loss of jobs, investment and balance of payments imbalance for the country.

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The Chair of the Forum’s Sub-Committee, Mr Malcolm Custo’ explained that as an Island, Malta’s economy depends strongly on efficient and reliable maritime infrastructure and unfortunately, this fact is often overlooked.

The Grand Harbour supports a wide range of maritime activities that have developed over decades. These include cargo handling, cruise-passenger terminal facilities, ferry services, ship repair, fuel logistics and offshore support operations. In the context of the proposed Grand Harbour Revival Project, the Sub-Committee members expressed their view that they agreed in principle with the proposed Revival Plan for Valletta port subject to the conclusions of Independent navigational and safety risk assessments which are needed to determine and ascertain that the Grand Harbour can remain, first and foremost, a working port. To this end, they reiterated their position that if parts of the harbour need to be reorganised, alternative facilities must be ready before any relocation takes place. For this reason, and in light of current operational bottlenecks and limitations, the timeliness of the completion of the Ras Ħanżir project is of essence.

The Sub-Committee also gave its views on the latest EU ETS situation, insisting that special concessions needed to be given to transhipment ports located in island and island member states of the EU to preserve their competitiveness and protect them from unfair competition which has been leading to business, investment and carbon-leakage.

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Upon the publication of this much anticipated review, the Forum welcomed the continued focus on Europe’s decarbonisation ambitions in the proposals but cast serious doubts as to whether the revisions would be sufficient to ensure the long-term competitiveness of its ports and the wider maritime sector.

These concerns on the disruption of fair competitive conditions within the shipping and port sectors are more acute in the context of island Member States whose geographical realities have, once again, not been adequately reflected in the design of the reviewed System.

For Malta, this is not merely a question of competitiveness within the shipping and port sectors. Malta’s connectivity is a matter of economic security and social sustainability.  This point was made amply clear in the analysis of Prof Briguglio and his team.  It is most encouraging for the industry to learn that the arguments put forward consistently by the MMF are now supported academically.

Unlike continental Member States, Malta has no road, rail or inland waterway connection with the European continent.  Maritime transport is therefore the principal physical route through which consumer goods, medicines and other basic necessities enter and leave the country.  This dependence is further intensified by the fact that Malta does not produce most of the essential items it consumes and is not food self-sufficient.

The consequences of reduced maritime connectivity would therefore extend far beyond shipping.  They would affect households, businesses, manufacturers, tourism operators and the wider economy.

At the same time, the current design limitations of EU ETS Maritime continue to place Malta Freeport, like other EU transhipment ports in the Mediterranean, at a competitive disadvantage. Mainline container vessels are incentivised to use transhipment hubs outside the EU, including in nearby North Africa, where ETS applies differently or does not apply at all.  The potential savings can amount to millions of euros per service annually.

Since the onset of ETS, several mainliner services have been diverted away from EU ports.  North African facilities have absorbed the lion’s share of new transhipment business to the tune of 8m:0.5m TEUs (Containers – Twenty Equivalent Units).  New investment in the capacity of North African transhipment hubs has dwarfed that taking place in Europe.

If mainliners continue in their increasing trend to tranship elsewhere, calling at Malta solely to discharge or load the relatively small domestic component would not be economically justifiable.

Today, containers linked directly to Malta’s domestic market represent only around 4-5% of the containers transhipped through Malta Freeport.  The loss of the mainline calls that sustain the transhipment operation could therefore have consequences well beyond the Freeport itself.

Malta’s importers and exporters could lose direct connectivity with major global markets in Asia and the United States.  The manufacturing sector would also face increased costs and longer steaming times for importing raw materials and exporting finished products.  This is particularly significant for an economy that has no indigenous raw-material base and whose manufacturing industry produces predominantly for export markets.  Inputs used in the tourism industry would increase in cost rendering one of the Islands’ economic mainstays less competitive.   If Malta becomes more costly and less efficient to serve, the long-term viability of maintaining certain manufacturing and tourism operations on the island could be called into question.

Within the ETS review, the MMF noted the European Commission’s proposed measures intended to safeguard the connectivity of Europe’s most vulnerable regions.  These measures complement the Commission’s recent Communication on Islands and Coastal Communities, which the Forum also followed closely during the course of 2026.  The Forum noted that these measures are limited until 2031 and apply solely to islands that are part of larger member states.

This approach does not suffice for the MMF that has consistently argued that temporary, conditional or narrowly targeted measures cannot fully address a permanent geographical disadvantage.  The Forum therefore maintains that all islands, irrespective of size, together with outermost regions and island Member States, should benefit from a permanent and automatic derogation from ETS on the basis of their geographic disadvantage and insularity. A permanent disadvantage requires a permanent response.

The MMF also notes the Commission’s decision to amend the neighbouring port rule by lowering the relevant transhipment threshold from 65% to 50%.  While this may appear to strengthen the rule, it does not resolve a fundamental difficulty: competing ports in North Africa may not necessarily submit the data required for the threshold to be calculated.

Moreover, public statements by major container lines have made clear their objective of investing in North African terminals specifically for transhipment purposes.   Such facilities may remain outside the new 150-nautical-mile scope of the neighbouring port rule while nevertheless competing directly with EU Mediterranean ports.  This creates the risk of continuing and potentially increasing diversion of transhipment activity.

The Forum continues to emphasise that the neighbouring port rule is ineffective where a vessel simply does not call at an EU port as it traverses the Mediterranean.  Indeed, unless the broader structural imbalance is addressed, the current approach could create a further incentive for shipping companies to divert traffic away from EU ports altogether.

The Malta Maritime Forum is most appreciative of the Maltese Government for its direct involvement in this subject and of all the authorities and dignitaries, both locally and in Brussels, who have met the Forum and listened to its arguments and positions in advance of this review. Their engagement is important, but the process of consultation, analysis and review must continue relentlessly.

To this end, the MMF remains committed to advocating further reform of EU ETS Maritime, including explicit recognition of the particular circumstances of island Member States that depend on ro-ro maritime services as a principal link in their consumer and industrial supply chains. This position has been consistently advanced through the Forum’s numerous policy papers and recommendations.

The objective of decarbonisation must be pursued, but climate policy must also be designed in a manner that does not unintentionally isolate Europe’s islands, weaken their economic resilience or undermine the very connectivity on which their populations and industries depend. Socially sustainable maritime reform requires that Europe’s permanent geographical realities be recognised not as exceptions to be managed temporarily, but as structural conditions deserving permanent solutions.

In conclusion, as Prof. Briguglio argues, sustainable maritime reform must be not only greener but socially sustainable.  The Forum believes that besides socially sustainable, such reform must also serve the national interest.  Malta, as an island state, stands to be disproportionately affected by an ETS review that fails to adequately reflect its unique realities as an island Member State.

Godwin Xerri is the Chairman of the Malta Maritime Forum 

Source: The Malta Independent on Sunday, 30 August 2026

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Almost everything that reaches Malta − fuel, food, medicines, raw materials and consumer goods − arrives by sea. Equally, much of the country’s economic activity is linked to the maritime sector: since Malta has no raw materials, it needs to import all its inputs and export a vast proportion of its manufactured products.

Today, the global shipping industry is facing one of its most challenging periods in decades. Armed conflicts stretching from Ukraine to the Middle East, alongside persistent security threats in parts of Africa, have transformed some of the world’s busiest sea routes into dangerous waters. Merchant vessels, once regarded as neutral carriers of global trade, increasingly find themselves caught in the crossfire.

For the thousands of men and women who crew these ships, the risks have become very real. Missile and drone attacks, piracy, vessel seizures and the constant threat of escalation have turned routine voyages into dangerous missions. Beyond the physical danger, many seafarers face growing psychological pressure as they sail through areas where commercial shipping has become an unintended casualty of geopolitical disputes.

While sea-faring careers are becoming less popular by the day, the consequences extend well beyond those on board.

Several of the world’s most important maritime chokepoints have become increasingly unstable.  The Strait of Hormuz remains vital for global energy supplies, while the Black Sea continues to be affected by the war in Ukraine. Elsewhere, attacks on commercial shipping in the Red Sea have forced many vessels to take much longer routes around the Cape of Good Hope, adding weeks to voyages and significantly increasing operating costs.

These disruptions eventually find their way into household budgets.

Higher insurance premiums, longer sailing distances, increased fuel consumption and operational uncertainty all translate into higher transport costs.

For a country like Malta, which, by necessity rather than choice, must import almost all of what it consumes, these additional costs cannot simply be avoided. While Malta has little influence over global commodity prices or international shipping routes, it must absorb the consequences of decisions and conflicts taking place thousands of kilometres away.

The effects are felt across the economy. Businesses pay more for imported materials, retailers face higher distribution costs, and consumers ultimately encounter increased prices for everyday goods.  All this also renders tourism, one of Malta’s main economic pillar less price competitive.  Energy markets are equally vulnerable. Even when physical supplies remain available, uncertainty alone can trigger price volatility that affects electricity generation, transport and industrial production throughout Europe.

Malta’s position as a maritime nation also brings responsibilities alongside its vulnerabilities. The country’s shipping register represents thousands of vessels trading across every ocean, while the maritime services sector supports a wide network of legal, financial, technical and operational activities. Any prolonged disruption to global shipping, therefore, has implications not only for merchandise trade but also for one of Malta’s most internationally connected industries.

The human dimension should not be overlooked. Behind every cargo ship are professional seafarers who continue to keep global trade moving despite increasingly hazardous conditions. They transport the fuel that powers economies, the grain that feeds populations, the medicine that cures the sick and the products that stock supermarket shelves. Yet their work often receives little public attention until tragedy strikes.

The growing insecurity at sea also serves as a reminder that maritime security is no longer solely a concern for naval forces or shipping companies. It has become an economic issue, a supply chain issue and, ultimately, a matter of national resilience for island states such as Malta.

The reality is that Malta cannot determine the course of international conflicts, nor can it influence global shipping markets or energy prices. Those are external realities that must largely be accepted. What Malta can do is continue strengthening the resilience of its maritime sector, invest in efficient port infrastructure, support international cooperation on maritime security and maintain the competitiveness of the services that have made it one of Europe’s leading maritime jurisdictions.

The sea has always been Malta’s greatest connection to the world. It remains our principal gateway for trade, prosperity and economic opportunity. At a time when global shipping is increasingly under siege, safeguarding the resilience of maritime commerce is firmly in Malta’s national interest.

Godwin Xerri and Kevin J. Borg are the Chairperson and CEO of the Malta Maritime Forum, respectively

Source: Times of Malta/Photo: Shutterstock.com

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The Commission published its review of the EU ETS on 17 July, proposing a number of changes aimed at reducing carbon emissions while addressing concerns raised by the shipping industry over the impact of the scheme on European ports.

MMF Chairman Godwin Xerri said the proposed amendments acknowledge several of the concerns raised by the sector but argued that additional changes will be necessary to ensure the EU’s decarbonisation objectives do not come at the expense of Europe’s maritime competitiveness.

Among the proposals welcomed by the Forum is a temporary reduction in EU ETS allowance-surrender obligations for certain container cargo transhipped through EU ports, including Malta Freeport. The measure would apply until the end of 2035 for inbound voyages from non-EU ports undertaken by container ships with a capacity exceeding 10,000 TEUs, where cargo is transferred to another vessel destined for a non-EU port.

While the exemption would not apply to Malta’s import and export cargo, the MMF said it would help reduce the competitive disadvantage faced by European transhipment hubs when compared with nearby non-EU ports that are not subject to the same emissions trading rules.

According to the Forum, Malta Freeport has come under increasing competitive pressure from ports in North Africa, particularly in Egypt and Morocco, which have significantly expanded their infrastructure and capacity in recent years. Several shipping services have already shifted operations away from EU ports, resulting in non-EU hubs capturing the majority of new transhipment business.

The Commission has also proposed tightening the rules governing neighbouring non-EU transhipment ports by lowering the transhipment threshold from 65% to 50% and broadening the criteria used to identify ports that could benefit from avoiding EU ETS costs.

However, the MMF said these changes do not fully address the issue, noting that the rules become ineffective whenever vessels bypass EU ports altogether.

“The proposed changes represent positive progress in addressing business and carbon leakage resulting from the implementation of the Directive,” Xerri said. “However, the review process must continue to ensure the legislation protects both Europe’s environmental ambitions and the competitiveness of its maritime sector.”

The Forum is also calling for permanent exemptions for island member states and other geographically disadvantaged regions, arguing that their dependence on maritime transport places them at a structural disadvantage.

Xerri said Malta’s insularity makes reliable maritime connectivity essential for both consumers and businesses, and that this should be permanently recognised within the EU ETS framework.

The MMF further urged the European Commission to clarify what would happen should the International Maritime Organization (IMO) introduce a global carbon pricing mechanism for shipping. The Forum believes the Commission should commit to withdrawing the regional ETS regime if a global measure is adopted, thereby avoiding overlapping compliance obligations and additional costs for shipping operators.

The Forum also welcomed proposals to earmark EU ETS revenues for the shipping sector through both national funding and the planned Maritime Transport Decarbonisation Fund.

However, it argued that financial support should extend beyond wind-assisted propulsion and shore-side electricity to include a broader range of technologies capable of improving energy efficiency and reducing emissions across all shipping segments, including short-sea, bulk and tramp shipping.

The MMF said it remains committed to working with the Maltese government, European institutions and industry stakeholders to pursue further reforms to the EU ETS Maritime framework, particularly those recognising the unique challenges faced by island states that rely heavily on maritime links for their supply chains.

Source: Malta Business Weekly

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It was reported that the deal would also extend the ceasefire between the two nations, but challenges remain to ending the war. The deal’s details were not immediately released, but it appeared it would not be implemented until it is signed on Friday.

The war has had an impact on trade in the Gulf region and also on international oil prices. In Malta, fuel and energy prices have remained stable due to Government subsidies, which have been in place since the Covid-19 pandemic, but international oil prices had risen.

Chairman of the Malta Maritime Forum, Godwin Xerri, welcomed the news of the deal. “If the flow of fuel continues on its normal path, the first reaction should be a drop in the price of oil, which will be very positive,” he said.

He also mentioned the positive humanitarian perspective of such a agreement, saying that the seafarers who were stranded in the region would no longer be so.

As for the impact of the war on Malta, “there were some import and export industries affected in the country,” he said. “Hopefully negotiations will be successful and a permanent solution will be found.”

While services operating from the Freeport in Malta were not very negatively impacted to begin with, the opening of the Strait would be good news for the entire shipping industry, Alex Montebello, the CEO of Malta Freeport Terminals, told this newsroom.

“It will bring about an element of normality which we have been deprived of over the past few months in the region. For shipping in general it also means stability in oil prices, which is one of the main cost items for shipping. This augurs well for shipping at large,” he said.

Shipping sector operators also welcomed the news of the deal.

Kurt Camilleri, Managing Director of O&S Shipping Ltd, a Maltese company that provides freight, logistics and relocation services, said that freight costs skyrocketed as a result of surcharges and fuel prices emanating from the war.

The news of the initial deal, he said, means that if the Strait of Hormuz is reopened fuel from the Gulf to the rest of the world will resume as normal. He expects the market to settle, prices to go down, and some trade to pick up after the Strait is opened. “Hopefully it will be back to business as usual.”

Karl Gollcher, an Executive Director at the Gollcher Group, a transportation, logistics, supply chain and storage company, said that if the deal is signed it would help tremendously on the economic side of the shipping industry. Many owners who have ships locked in the Strait would be relieved, he said, adding that if it opens, goods, especially fuel, would move freely affecting market prices.

He hopes that it would be a long-term agreement that holds.

Thomas Sullivan, Commercial Director at Seatrans Shipping Ltd, a multifaceted maritime service organization, said that aside from easing world oil supply prices, a deal would also mean that vessels might start using the Suez Canal again.

“For local market and service providers, this will mean an increase in maritime activity,” Mr Sullivan said. He said operators would likely wait a while to ensure things settle down before doing so.

If that happens, prices will also drop, as instead of vessels going around the Cape of Good Hope, spending 10-12 days extra which increases costs, they would pass through the Suez Canal, he explained.

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MMF Electoral Proposals 2026

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