Germany remains one of the world's most influential maritime nations. Home to leading shipowners, operators, ports, shipyards and equipment suppliers, it sits at the centre of many of the decisions shaping shipping's future. Yet at a time when the industry is increasingly global and digital, one factor continues to matter: local expertise.

Jens Grunenberg, Lloyd's Register's (LR) Germany Commercial Manager, discusses why local expertise remains critical in an increasingly global industry, how German maritime businesses are navigating rapid change, and why close relationships still matter when making complex technical and commercial decisions.

Lloyd's Register is one of the world's oldest classification societies, founded in 1760, and today operates as a global provider of classification, engineering and technical services to the maritime industry — a background that frames its positioning in the German market.

Why local presence still matters

Germany is home to globally connected shipping companies with access to expertise from around the world. So why does local presence still count? According to Grunenberg, LR has strengthened and scaled up its German office, increasing local presence while working within LR's global network. That means German customers can access all of LR's global expertise, but delivered through people they know and trust.

In the heart of Hamburg — itself central to Europe's maritime industry — German customers have a German contact, and the German office remains the main point of contact in all regards. Even though LR operates a global structure, the German office is still a key function and the first point of contact for any German client.

"We are close to the market. We are close to shipowners and managers. Sometimes we are only a mile away from major clients. We are not remote. We are there in person and can meet customers face to face," Grunenberg said.

The Hamburg office serves as far more than a regional outpost. All of LR's surveyors are linked to the German office, whether they operate in north-east or north-west Germany. Everything relating to new construction goes via the Hamburg office, including support for German owners building vessels in Asia or elsewhere in the world, which is quite normal today. LR also has dedicated yard account managers and representatives responsible for German shipyards such as Flensburger Schiffbau-Gesellschaft and other major yards.

"We have strengthened those capabilities because German customers want to know there is somebody local who understands their business and can connect them into the wider global organisation when they need specialist support," Grunenberg added.

The biggest challenges facing German owners and operators

Asked about the biggest challenges German shipowners and operators face today, Grunenberg points to the news: there is a lot of global friction at the moment. Tensions in the Middle East and the conflict between Russia and Ukraine are all impacting and influencing the maritime industry.

These pressures are driving costs — fuel costs in particular. Naturally, everyone wants to become more energy efficient, reduce fuel consumption and cut operating costs. "Energy efficiency is definitely one of the biggest drivers we are seeing across the market," he said.

Regulatory pressure is adding another layer of complexity. A lot of decarbonisation measures are coming through, and the IMO is requiring the industry to reduce emissions and invest in more environmentally friendly fuels. With deadlines that need to be achieved, owners have to make important decisions now. This aligns with the IMO's 2023 greenhouse gas strategy, which targets net-zero emissions from international shipping by or around 2050, with indicative checkpoints for emissions reductions in 2030 and 2040. For German owners, EU measures such as the inclusion of maritime emissions in the EU Emissions Trading System add a further regional layer of compliance.

Every new fuel means new safety regulations, new approaches, additional work and more risk assessments. The way the industry has worked for many years is changing dramatically — and very quickly.

There are still many question marks around what the right solutions are. Owners ask: "How can I achieve this? How can I manage this transition?" For operators of large fleets, these are significant investment decisions that cannot be taken lightly. LR's strength, Grunenberg notes, lies in its three product portfolios — class, advisory and digital — which together provide extremely strong support for customers.

Local expertise amid decarbonisation, digitalisation and energy efficiency

There is so much change happening at once: new regulations, new fuels, new technologies and new requirements are arriving much faster than ever before. When dealing with that level of change, customers look for a local contact they can talk to face to face.

Sitting in the heart of Hamburg, LR can easily hold those face-to-face conversations with customers, whether that is Hapag-Lloyd, Peter Döhle or many others across the German maritime community.

While digital communication has become part of day-to-day business, Grunenberg believes personal engagement remains critical. "It is great that we can have Teams conversations and digital meetings, but walking into an office and speaking to someone face to face is still very different. German owners and managers really value that."

Having German-speaking colleagues who understand the local culture and can communicate in the customer's own language is a significant advantage. In such an international industry, that local connection and cultural understanding is something customers still highly appreciate.

"Being local to the companies and local to the clients is really a great asset. It helps build trust and makes it easier to support customers through difficult decisions," he said.

Navigating uncertainty and making informed decisions

"This journey can only be achieved as a team. Customers need colleagues, partners and joint approaches. Nobody can make this transition alone," Grunenberg said.

LR's three product portfolios — class, advisory and digital — work together to provide strong support. On the advisory side, LR carries out risk assessments, investigations and support for business decisions, helping an owner understand whether a future investment in a different fuel makes sense and what the implications might be.

Alongside that, LR's digital solutions help improve energy efficiency, fleet performance, crew management and technical management, meaning customers can access support across multiple areas through a single organisation.

This joined-up approach is becoming a key differentiator. As a shipowner or manager, it is difficult to make the journey completely alone. New technology, new regulation and new information are always emerging, and organisations naturally have limitations within their own teams.

"But we have the experience, we have the data and we have the expertise across class, advisory and digital. Bringing those three elements together allows us to support customers throughout the entire process," Grunenberg explained. LR can be connected to a vessel through digital solutions, support the owner through advisory services and provide classification expertise as well. "That combination is unique."

Why Germany remains such an important maritime market

Germany has always been a very significant player in global shipping, with major shipping companies, ports, suppliers, technology providers and shipyards — including companies like Hapag-Lloyd and Oldendorff. Hamburg is one of the largest ports in Europe, and Bremerhaven is one of the largest car ports in Europe.

For Grunenberg, Germany's importance extends beyond vessel ownership alone. When talking about Germany as a maritime hub, the conversation includes suppliers, equipment manufacturers, shipyards, logistics providers and ports. So many suppliers are connected to the maritime industry, and several ports are crucial to global logistics. "There is a lot happening around shipping in Germany, and that is what makes it such an important market," he said.

Local access will remain a critical part of serving that market. LR is extremely close to its clients: they know where to find it, can sit down together and discuss challenges directly, and customers can walk through the door and speak with staff.

"In today's world, personal relationships still matter. Being able to meet face to face, speak the same language and build trusted relationships remains a very strong asset," Grunenberg concluded.

That breadth creates opportunities, but it also means businesses are managing change across an increasingly diverse and interconnected supply chain — a dynamic that will keep demand high for both global expertise and local, trusted relationships.

Source: Lloyd's Register