When I first encountered the concept of circular supply chains, I was struck by its potential to transform not only how we think about resources but also how the maritime industry operates at its very core. In an age where sustainability is no longer optional but essential, the circular economy offers a compelling blueprint for maritime operations that balances environmental responsibility with economic viability.
Today, I want to take you on a journey through this evolving trend, unpacking what circular supply chains mean for maritime, why they matter, and how they could reshape the future of shipping and port operations. Whether you’re directly involved in maritime logistics or simply curious about the future of global trade, I hope this exploration offers valuable insights and inspiration.
1. Introduction: Why Circularity Matters in Maritime
Imagine a world where ships, ports, and supply chains operate in a continuous loop-where materials, energy, and products are reused, recycled, and regenerated rather than discarded. This is the essence of the circular economy, and its promise is especially powerful for maritime operations, which traditionally rely on linear processes: take raw materials, build ships, transport goods, then dispose or scrap at end-of-life.
The stakes couldn’t be higher. The maritime sector is responsible for a significant share of global emissions and waste, with ships, ports, and related infrastructure consuming vast resources. As climate change accelerates and resource scarcity looms, the industry is under increasing pressure to innovate and adopt more sustainable practices.
Circular supply chains offer a pathway to reduce waste, lower costs, and build resilience. But what does this look like in practice? And how can maritime professionals embrace this shift?
2. Context and Background: From Linear to Circular in Maritime
Traditionally, maritime logistics and port operations have followed a linear supply chain model: raw materials are sourced, products are manufactured and shipped, and eventually, waste is generated and discarded. This “take-make-dispose” model has served global trade for centuries but is increasingly unsustainable.
The circular supply chain flips this model on its head. It emphasizes reduce, reuse, recycle, and regenerate principles, creating closed-loop systems where materials and products are kept in use for as long as possible. This approach aligns with the broader circular economy movement gaining momentum worldwide.
In ports and shipping, circularity manifests uniquely:
• Maintenance and Repair: Ships and port equipment undergo regular maintenance to extend their lifespan, reducing the need for new builds.
• Reuse and Leasing: Vessels are often leased or cascaded from deep-sea to regional services, maximizing asset utilization.
• Recycling and Remanufacturing: End-of-life ships and equipment are dismantled responsibly, with materials recovered and repurposed.
• Waste-to-Energy: Some ports have introduced biogas plants powered by ship and port waste, turning refuse into renewable energy.
3. Key Insights: Circular Supply Chains and Their Impact on Maritime and Beyond
A. Environmental Benefits
Circular supply chains reduce the volume of waste entering oceans and landfills, mitigating pollution and protecting marine ecosystems. For example, ports like Copenhagen Malmö have implemented closed-loop waste management systems that convert ship waste into biogas, providing clean energy and reducing carbon footprints.
B. Economic Advantages
By reusing materials and refurbishing assets, companies can significantly cut costs associated with raw materials and new equipment. Case studies show that remanufacturing ship engines can cost half as much as new ones while delivering comparable performance. This approach also shields companies from raw material price volatility, providing more predictable budgeting.
C. Supply Chain Resilience
The disruptions of recent years have exposed vulnerabilities in global supply chains. Circular models foster resilience by reducing dependence on virgin materials and enabling local or regional recycling and refurbishment hubs. This diversification helps mitigate risks from geopolitical tensions or natural disasters.
D. Innovation and New Business Models
Circularity encourages innovation in product design, logistics, and services. For instance, some companies are shifting from selling ships or equipment to offering “mobility as a service,” where clients lease or share assets, reducing waste and increasing utilization.
4. Challenges and Lessons Learned
Of course, the transition to circular supply chains is not without challenges:
• Complex Coordination: Circularity requires collaboration across multiple stakeholders-port authorities, shipping companies, manufacturers, recyclers, and regulators. Aligning incentives and sharing data can be difficult.
• Infrastructure Needs: Ports must invest in specialized facilities for recycling, waste treatment, and energy recovery. This requires capital and long-term planning.
• Regulatory Frameworks: While some regulations support circular practices, others may inadvertently create barriers. Clear, harmonized policies are needed to encourage responsible ship recycling and material reuse.
• Cultural Shift: Moving from a linear mindset to circular thinking demands education and leadership. It’s about valuing longevity, repairability, and sustainability as core business principles.
5. Actionable Insights: What You Can Take Away
Whether you’re managing a fleet, operating a port, or involved in supply chain logistics, here are some steps inspired by circular economy principles that can help you prepare for the future:
• Prioritize Maintenance and Refurbishment: Extend asset lifecycles through proactive maintenance and consider refurbishment over replacement where possible.
• Explore Leasing and Sharing Models: Investigate opportunities to lease equipment or vessels, increasing utilization and reducing capital expenditure.
• Engage in Collaborative Networks: Build partnerships with recycling firms, technology providers, and other stakeholders to create closed-loop supply chains.
• Invest in Training and Culture: Educate your teams about circular principles and embed sustainability into your company’s core values.
• Advocate for Supportive Policies: Work with industry associations to promote regulations that facilitate circular practices.
The circular supply chain isn’t just a trend-it’s a transformative shift that promises to redefine maritime operations for decades to come. By embracing reuse, recycling, and regeneration, the maritime sector can reduce its environmental footprint, lower costs, and build resilience in an uncertain world.
For me, this journey toward circularity is both a professional imperative and a personal passion. It challenges us to rethink how we use resources, collaborate across borders, and innovate with purpose. As we navigate these waters together, I encourage you to consider how circular principles can enhance your own operations and contribute to a more sustainable, prosperous maritime future.
Cheers,
Fernando
⚓ Maritime Term of the Week
GMDSS (Global Maritime Distress and Safety System)
This week, I want to share the story of a system that quietly stands guard over every ship at sea, ready to leap into action when it matters most: the GMDSS, or Global Maritime Distress and Safety System.
What is GMDSS?
GMDSS is a worldwide network of automated emergency communications, designed to ensure that no distress call from a ship, boat, or even aircraft ever goes unanswered. Developed by the International Maritime Organization (IMO) as part of the SOLAS (Safety of Life at Sea) Convention, GMDSS brings together a set of safety procedures, specialized equipment, and communication protocols to protect lives at sea.
Think of GMDSS as the ultimate safety net: whether you’re crossing oceans or hugging the coast, it connects you instantly to search and rescue authorities and other ships nearby at the press of a button. It doesn’t just send out distress calls; it also broadcasts vital safety information like navigational warnings and weather updates, helping ships avoid trouble before it starts.

Where Did GMDSS Come From?
The roots of GMDSS lie in the lessons learned from past maritime disasters, where slow or missed distress signals cost precious lives. In the late 1970s, after several high-profile incidents, the IMO recognized the need for a standardized, reliable, and global system. The result was the GMDSS, which began to take shape in the 1980s and became fully operational by February 1, 1999. This marked a turning point: gone were the days of relying on Morse code or hoping another ship would hear your call for help. Now, every distress alert is automatically routed to the nearest Rescue Coordination Center, ensuring a swift, coordinated response.
How Does GMDSS Work?
GMDSS isn’t a single device, but a collection of technologies working in harmony. Here are some of its key components:
• EPIRB (Emergency Position Indicating Radio Beacon): Sends your location via satellite to rescue authorities if you’re in trouble.
• SART (Search and Rescue Transponder): Helps rescuers pinpoint your exact location once they’re nearby.
• Digital Selective Calling (DSC): Allows ships to send automated distress alerts at the push of a button.
• NAVTEX: Broadcasts navigational and meteorological warnings.
• Satellite and Radio Communications: Ensures coverage everywhere, from coastal waters to the most remote oceans.
GMDSS divides the world’s oceans into four “sea areas,” each with specific equipment requirements based on how far you are from shore and what kind of communication coverage is available. This ensures that, whether you’re within VHF range of land or in the middle of the polar seas, you’re never out of reach.
How Has GMDSS Evolved?
Since its introduction, GMDSS has replaced old-fashioned, manual radio watches with automated, digital systems. It’s made maritime distress communication faster, more reliable, and truly global. Over the years, new technologies like GPS-enabled beacons and satellite communications have been woven into the system, making it even more effective and precise.
Why Does It Matter?
GMDSS is the silent guardian of the seas. It’s there to make sure that, no matter where you are, help is always within reach-and that vital safety information keeps you out of harm’s way in the first place. For anyone who spends time at sea, knowing GMDSS is on watch brings peace of mind and, quite literally, saves lives.
So next time you see a ship on the horizon, remember: behind every safe voyage is a web of technology and international cooperation, quietly working to keep the world’s mariners safe.
If you’d like to contribute a term for a future edition, feel free to reply to this email or send me a DM — I’d love to hear your ideas.
🧠 Wisdom Gems I Heard
Yesterday, I was clever, so I wanted to change the world. Today, I’m wise, so I’m changing myself.
