The maritime and logistics industry is experiencing swift transformation driven by environmental regulations, geopolitical challenges, digitalisation and supply chain disruptions. While innovation and sustainability remain top priorities, the pace and cost of these shifts are threatening jobs and livelihoods.
“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,” argues Anton Xerri, general manager at Focal Maritime Services.
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 to enhance its governance and client responsiveness.
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 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 the 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.”
Sustainability and cost challenges
“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 Xerri, a leading maritime industry expert.
He explains how maritime businesses are having to comply with a raft of new environmental legislation amid 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.”
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.”
Digitalisation and cybersecurity risks
Referring to the acceleration of automation and digitalisation, 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.”
Beyond environmental policies, the industry is facing digitalisation challenges, cybersecurity threats and labour shortages.
“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.”
“To plan for the future, businesses need certainty, and without certainty, investment and operational decisions become even more difficult,” Xerri concludes.
