Trends and challenges for the year ahead

2025 is well underway, and as a sector, dredging continues to face a period of significant transformation. With regulation changes, geopolitical tensions, economic uncertainty, ongoing environmental disruption and technological advancements, we are part of an evolving market, filled with both opportunities and risks.

At the heart of many of these challenges is the drive towards sustainability and emissions reduction, with regulations such as the EU Emissions Trading System (EU ETS) – which came into place from 1 January 2025, meaning emissions on voyages completed by offshore dredging vessels to, from and within EU ports, must be recorded and monitored for compliance. Financial charges will be due to be paid from 2027 and the tariffs placed upon these offshore vessels will see the current emissions allowance increase from 70% (current rate) to 100% from 2026, removing the free allowance benefits for the sector. Naturally, this places new pressures on dredging operators as we navigate these new compliances and costs.

Additionally, the recent challenges around the Suez Canal, coupled with ongoing disruptions in the Panama Canal due to climate-related droughts, emphasises the importance of efficient and well-maintained shipping routes. The increased global investment in coastal resilience, port expansion and offshore energy is actively encouraging and promoting our industry to adapt to an increasingly complex and interconnected global landscape, by highlighting the need for operators to enhance operational efficiency, invest in sustainable technologies and improve infrastructure to ensure resilience and adaptability for global trade.

With these developments in mind, these are some of the key trends and challenges that will define the dredging industry in the year ahead:

1. Trade dynamics and tariffs
Recent shifts in U.S. trade policies, including the imposition of new tariffs for heavy metal producers, have the potential to disrupt global supply chains. For the dredging industry, these tariffs could lead to increased costs from plant manufacturers as companies invest in cleaner technologies and vessels, which will represent a significant increase in CAPEX during 2025. This increased pressure on budgets likely means the new tariffs will lead to many operators re-evaluating procurement strategies, including seeking to invest in alternative solutions, such as introducing an integrated dredging management toolkit which can include a mix of increased surveying, alongside adaptable dredging solutions like Tiamat, which place less pressure on CAPEX budgets and offer more adaptability.

2. Shipping channels
Critical waterways like the Suez and Panama Canals have faced significant disruptions in recent years. These have strained global supply chains by changing the transport routes, which has severely increased transit times and therefore elevated operational costs for shipping contractors as a result. These disruptions directly affected dredging operators managing maintenance dredging campaigns by causing increased pressures in the shorter or less travelled routes, resulting in problems with dredging plant availability in some regions, and the ability to maintain and manage navigable mud depths.

Earlier this year, the Suez Canal Authority (SCA) announced the completion of its recent works to increase the safety in the region and improve the capacity of the canal. Whilst this is positive news for shipping operators, with many planning to redirect their vessels via the most efficient channels once more, it will reduce operating costs for transporting goods between Europe and the Middle East once again.

The return of marine traffic through the Suez Canal presents a challenge for dredging operators, who will need to redeploy dredging vessels from areas like the Cape of Africa to high-demand regions in the Mediterranean and Middle East. This market-driven shift will lead to increased OPEX for the dredging sector due to the cost and time needed to transport vessels to manage the waterway.

However, the backdrop of political uncertainty in the area is still a cause for concern for both shipping and dredging operators, as they must ensure security for the staff, goods and vessels. This means it won’t quite be “business as usual” as quickly as we might have hoped.

3. Economic and market trends
Many nations are following the trends of countries, such as the United States which has allocated $1.2 trillion to develop marine infrastructure and China, which spends approximately 4.8% of its GDP on marine infrastructure investing in maritime infrastructure to bolster trade capabilities and economic resilience. These investments often require substantial dredging work to facilitate, presenting strong opportunities for industry growth. However, companies must be prepared to meet stringent environmental regulations as set by conventions such as the International Convention for the Prevention of Pollution from Ships (MARPOL), the International Convention for the Safety of Life at Sea (SOLAS) and the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW), while also meeting community expectations associated with such projects.

4. Technology advancement
The integration of advanced technologies, such as automation and real-time monitoring systems, are becoming increasingly prevalent in dredging operations. While these innovations can enhance efficiency and safety, they also require CAPEX and OPEX as operators move away from traditional dredging practices. This can lead to increased financial pressures, necessitating careful cost-benefit analyses to justify the investments, while ensuring compliance with evolving regulatory and environmental standards.

There is no doubt that the dredging sector faces a year of challenging transformation, however it also faces great opportunities. For those looking to capitalise, the ability to adapt to these factors will undoubtedly drive the ability to succeed. It is also important to recognise that there are already suitable technologies in the marketplace, such as Tiamat by Haven Dredging – the innovative agitated hydrodynamic dredging solution. A pioneering technology, Tiamat has been designed to be adaptable for varying locations and demands, while reducing the cost of maintenance dredging and working with nature to redistribute sediment with the natural tidal flow of the water, offering a solution that complies with regulatory requirements for reducing carbon emissions, at the same time as reducing the pressure on CAPEX.

To find out more about how Tiamat can offer an adaptable solution for your dredging project, visit www.havendredging.com/tiamat.