Sunil Kapoor: "Today, it’s tariffs, Red Sea attacks, and unpredictability that keep shipowners awake at night"

"Right now, shipping feels like it’s navigating through fog—without radar. Most owners are caught between sanctions, compliance rules, and rising operating risks. Decarbonisation and digitalisation are still important—but they’ve taken a back seat. Today, it’s tariffs, Red Sea attacks, and unpredictability that keep shipowners awake at night," Sunil Kapoor, COO & Partner at OL Shipping Group, suggests.

However, in an interview with CBN, Kapoor also underlines that he remains optimistic about the sector and its future.

Among other things, he also shares his view of how Cyprus can further improve its role in global shipping while also commenting on India's Prime Minister Narendra Modi's recent visit to the island.

Kapoor, in addition, discusses OL Shipping Group's expansion into the dry bulk sector.

What do you see as the biggest current challenges facing shipping, locally and globally?

This is the season of conflicts, tariffs, and uncertainty. Right now, shipping feels like it’s navigating through fog—without radar. Most owners are caught between sanctions, compliance rules, and rising operating risks.

Decarbonisation and digitalisation are still important—but they’ve taken a back seat. Today, it’s tariffs, Red Sea attacks, and unpredictability that keep shipowners awake at night.

In the last couple of months, Houthi attacks in the Red Sea have intensified. Ships are being bombed or hijacked and sunk.

As someone who’s spent decades at sea and shore, I simply cannot justify sending our crew into that danger. With more women now working onboard, the risks become even more personal. It’s not courage, it’s recklessness.

Some owners still take the risk. I prefer sleeping at night.

Globally, we’re facing more headwinds: the Russia–Ukraine war disrupting the Black Sea, Iran–Israel tensions, economic uncertainty in China, and the rise of shadow fleets. I am sure IMO is likely to crack down in near—especially on safety and insurance standards.

And let’s not forget climate change. Ports are flooding, storms are intensifying, and delays are routine. If we miss net-zero goals, we’re not just hurting the planet—we're burning cash.

How have these challenges affected your outlook on the shipping sector and its future?

Despite everything, I remain optimistic—you don’t survive four decades in shipping without learning to adapt.

Shipping has always bounced back. Yes, coal carriers may lose demand—but some can be repurposed. Not easy, not cheap, but possible. Tankers face different challenges and that is a totally different story.

We’re also working with an aging global fleet. Scrapping is low, second-hand prices are high, and newbuilds are lagging. We need bold investment—new ships, greener retrofits, smarter designs.

Personally, I’m bullish on Handysize and Ultramax bulkers. They’re flexible, efficient, and ideal for emerging markets. Think of them as the Swiss Army knife of dry bulk—they just work.

What can be done to improve Cyprus’s role in global shipping?

As for Cyprus, we have a real opportunity—but first, we need to clean up our image. We must shed associations with the so-called "dark fleet", step up compliance, and rebuild trust. Too often, we’re linked—rightly or wrongly—to sanction loopholes and questionable trades. That must change.

We need stronger enforcement, better vetting, and a genuine commitment to quality.

We also suffer from a lack of global branding. Cyprus has strong fundamentals, but we don’t market ourselves like Greece, Singapore, or Norway. That needs to change.

Education is key. Let’s scale up the Maritime Skills Accelerator and partner with global institutions to train the next generation—seafarers, managers, digital specialists, all of them.

And we must address the elephant in the room—ship finance. There’s a lot of talk, but very little action. In our case, we couldn’t get financing on acceptable terms. High rates, strict conditions—it’s simply not designed for small, honest owners. So, we financed our ship ourselves.

Cyprus must build a financial ecosystem that supports responsible owners—not just the big players.

As I often say: “Cyprus shouldn’t just be a flag or a port—it must be a force multiplier for innovation, talent, and trust in global shipping.”

Your thoughts on Indian PM Modi’s visit to Cyprus?

That visit was more than symbolic—it was a statement of intent.

India and Cyprus agreed to strengthen maritime security, naval visits, and joint rescue drills. Cyprus has been positioned as a key node in the India–Middle East–Europe Corridor (IMEC).

The launch of the India–Greece–Cyprus Business Council, and cooperation in fintech, smart shipping, and logistics, shows real potential.

And with Cyprus holding the EU presidency in 2026, the timing is perfect. If we stay focused, Cyprus can emerge as Europe’s maritime bridge to Asia.

Can you tell us more about OL Shipping Group expanding into the dry bulk sector?

After decades in ship management, I wanted to build something lean, focused, and high-quality boutique ship-owning and Management company that keeps things simple and transparent.

We started managing third-party ships but saw a worrying trend—owners unwilling to pay realistic OPEX or delaying payments for months. What used to happen during downturns has now become normal—and that’s not sustainable.

So, we shifted focus. We now own four vessels including a recently acquired a 10-year-old modern Japanese built Handysize bulker, proudly flying the Cyprus flag.

Our goal is simple: grow to five quality vessels, then launch a shipping fund. Slow and steady focused on cost-effective operations without compromising on quality.

Because shipping isn’t a sprint—it’s a long voyage. And for us, the journey has just begun.