German Shipping Companies Lament Excessive Reporting Requirements Ahead of Federal Elections
Hamburg, Germany – As Germany gears up for federal elections this Sunday, the German Shipowners’ Association (VDR) has voiced its frustration over the excessive reporting obligations faced by the country’s shipping companies.
The VDR highlights the burden of having to report data at national, European, and global levels. Often, companies are required to enter the same information multiple times, using different systems and adhering to varying deadlines.
"We are drowning in a sea of bureaucracy," exclaimed Martin Kröger, Managing Director of the VDR. "The administrative burden is simply unreasonable. Our companies cannot afford to maintain dedicated departments solely for paperwork."
The association pinpoints several EU regulations as a major source of the problem. These laws include those governing the inclusion of shipping in the emissions trading scheme, the carbon intensity of fuels, and sustainability reporting.
Impact on Small and Medium-Sized Companies
Small and medium-sized shipping companies, which account for 80% of the German shipping industry, are particularly hard-hit by these reporting requirements. The VDR represents approximately 200 member companies that collectively operate the majority of the country’s commercial fleet.
Call for Simplification
The VDR is calling on the incoming federal government to take action and simplify the reporting process. "We need to reduce the burden on our companies," Kröger emphasized. "They should be able to focus their resources on their core business, not on endless paperwork."
Examples of Redundant Reporting
The VDR provides several examples of the duplicative and inefficient nature of the current reporting system:
- Companies must report the same data on CO2 emissions to the International Maritime Organization (IMO), the European Maritime Safety Agency (EMSA), and the German Federal Maritime and Hydrographic Agency (BSH).
- Vessels entering and leaving European ports are required to submit identical information to both national authorities and the EU’s European Reporting System (ERS).
- Companies must gather and submit extensive data on sustainability performance according to different frameworks, such as the Global Reporting Initiative (GRI) and the UN Sustainable Development Goals (SDGs).
Recommendations for Improvement
The VDR proposes a number of measures to address the reporting burden:
- Harmonization: Establish common reporting standards and systems across different jurisdictions.
- Digitization: Implement electronic platforms and standardized data formats to streamline reporting processes.
- Reduction of Reporting Frequency: Adjust reporting deadlines to avoid unnecessary duplication and overlap.
- Targeted Exemptions for Small Companies: Provide relief from certain reporting requirements for small and medium-sized shipping companies.
The VDR urges the new federal government to prioritize the simplification of reporting requirements as a matter of economic importance for the German shipping industry. By reducing the administrative burden, companies can redirect their resources towards innovation, sustainability, and job creation.
