EUDR and the Ship Supply Industry: Navigating Compliance and Sustainability

Member of the OCEAN Sustainability Workiong Group, Axel Barat, reflects on EUDR

How does the EU Deforestation Regulation (EUDR) impact ship supply? While many suppliers are exempt, sustainability remains a key industry priority, argues Axel Barat

EUDR and the Ship Supply Industry: Navigating Compliance and Sustainability

The European Union’s Deforestation Regulation (EUDR), formally adopted in May 2023, is a groundbreaking initiative aimed at ensuring that products consumed within the EU do not contribute to global deforestation. The regulation primarily affects businesses dealing with high-risk commodities such as palm oil, soy, coffee, cocoa, timber, rubber, and cattle products. However, for the ship supply industry, the implications of EUDR are nuanced.

The Role of Ship Suppliers and EUDR Compliance

A key point reinforced in discussions within OCEAN’s Sustainability Working Group is if or no EUDR does directly apply to most ship supply operations. Under EU customs law, ship provisions benefiting from VAT or excise duty exemptions are not technically classified as exports. This means that as long as ship suppliers operate within these limits, we mights be largely relieved from the stringent compliance requirements of EUDR. This clarification is essential for ship suppliers, including those represented by the French Ship Suppliers Association (SNAN - Syndicat National des Approvisionneurs de Navires), which serves ship supply businesses operating across France.

Our focus remains: Sustainability 

However, exemption from direct regulatory EUDR compliance for those providing in-scope ship supplies does not equate to a lack of responsibility or engagement with sustainability initiatives. The ship supply industry remains deeply invested in reducing its environmental footprint, and many companies are proactively implementing greener practices to align with broader sustainability goals.

Sustainable Practices in the Ship Supply Industry

Ship suppliers across Europe, including SNAN members, are already taking proactive steps to minimize environmental impact. These initiatives include:

• Reducing Packaging Waste: Suppliers work with partners to explore innovative ways to cut down on unnecessary packaging and introduce reusable materials where feasible.

• Pallet Return Solutions: Some ports and suppliers are trialling mechanisms to recover and reuse pallets, although logistical challenges persist.

• Efficient Waste Collection: Several ports have implemented structured waste collection systems, ensuring that onboard waste is managed responsibly.

• Supply Chain Transparency: Increasingly, ship suppliers are enhancing traceability in their procurement processes to ensure responsible sourcing of goods.

Despite these commendable efforts, ship supply operates under unique logistical constraints. The nature of ship supply involves tight turnaround times, offshore deliveries, and limited opportunities for packaging recovery. In cases where deliveries are made via barge, reclaiming packaging materials or pallets is often impractical, posing a significant barrier to achieving full circularity.

The Path Forward: Advocating for Practical Sustainability

Rather than being driven solely by regulatory pressure, the ship supply industry continues to prioritize sustainability as a core business value. The industry’s approach is to focus on practical and impactful measures that align with its operational realities while still reducing environmental impact. This philosophy resonates strongly with SNAN members, who are actively engaging with sustainability initiatives while maintaining the efficiency and reliability of ship supply services.

Engaging in meaningful dialogue with European institutions is crucial to ensuring that regulatory frameworks recognize the specific challenges faced by the ship supply sector. Through continuous advocacy, ship suppliers can work alongside policymakers to craft sustainability initiatives that are both ambitious and practical.

By embracing modernization, demonstrating proactive sustainability efforts, and fostering collaboration with regulatory bodies, the ship supply industry—far from being a passive player—is proving itself to be a key contributor to a more sustainable global trade ecosystem. The commitment of industry leaders, such as SNAN and OCEAN’s Sustainability Working Group, underscores the pivotal role that ship supply can play in shaping a greener future for maritime logistics.