BIMCO Forecasts Growth; Analyzes Challenges to Shipping

press release
Thursday, January 03, 2013

BIMCO has published its Reflections 2013, a concise, condensed and thought-provoking analysis of the challenges facing the shipping industry today and during the coming year.

 

Shipping is a key facilitator of world trade and the performance of this essential sector is completely interdependent with those of the global economy. While there is some optimism that the worst of the global downturn  is now behind us, a perceptive economic analysis outlines the challenges facing the main shipping sectors on account of the excessive supply of ships. It emphasises the need for a worldwide industry to be regulated globally, calls for pragmatic and practical environmental policies, underlines the need to value, treat fairly and educate the human resources , upon which the industry depends and  for the maintenance of strong defences against piracy and lawlessness.

 

  • Turning point foreseen


Against the background of a world economy struggling out of the financial crisis, positive global growth of both GDP and world trade at 3.6% and 4.5% respectively encourages BIMCO to suggest that 2013 will be the turning point in macroeconomic terms. But while such a scenario might normally offer comfort to ship operators, all the main shipping sectors continue to labour under a substantial overhang of tonnage of ships ordered in more optimistic times. Despite slow steaming, layups and the recycling of redundant vessels, it is suggested that any balance between supply and demand will not be swiftly achieved. And while highly efficient “ECO-ships” might appear attractive, they too add to the totality of a remarkably young world fleet. Challenging times, BIMCO forecasts, will continue to face the industry.

 

  • Why global regulation matters
     

Free market access, along with a regulatory “level playing field” for all participants has been a rallying call for BIMCO for more than a century, with plenty of evidence that such an approach works best. With effective international regulatory bodies available, there is every reason to reject any moves toward regionalism or local protectionism and under the banner “Keep Regulation Global”, BIMCO provides in these Reflections 2013 compelling evidence why such policies need international support and why international regulation that is ratified and works in practice remains essential. Worrying tendencies toward regional and local regulations, along with a revival of local voices calling for trade protectionism as a result of hard times need to be energetically countered.

 

  • Towards greener shipping

With a closer focus of the environmental footprint of shipping, the shipping industry is working hard to improve and demonstrate its sustainability in environmental terms. Technical advances and fuel saving measures, along with operational efficiencies show many encouraging trends, although emission controls, such as limits to SO2 emissions, show that regulatory changes are neither easy nor cheap to implement and may produce many unanticipated consequences.  Nevertheless, the focus on energy efficiency shows that an environmental agenda need not be viewed in isolation. Reflections 2013 does however illustrate that the complexities of implementing the IMO Ballast Water Convention to its designed timescale at the same time as developing adequate treatment systems may have been overlooked or not adequately addressed.

 

  • The essential human element
     

With 1.3million seafarers servicing the material needs of the entire world population of 7billion people, BIMCO emphasises once again our dependence upon a highly professional workforce which deserves rather more recognition than 21st century society often provides. BIMCO, which has catalogued the unfair treatment of seafarers by certain legal regimes, once again points to the ways in which seafarers are unjustly criminalised after accidents and more regularly treated with disrespect by shoreside bureaucracy. The entry into force of the ILO Maritime Labour Convention in August 2013, will, it is hoped, be a further contributor to better and fairer treatment of this essential workforce. Reflections 2013 also emphasises the value of continuous education for marine industry personnel, with BIMCO enlarging its role with an expanded education programme.

 

  • Thinking beyond piracy
     

The fight against piracy needs much more than Best Management Practice or armed protection. A combination of political, economic, legal and diplomatic efforts, possibly supported by military action will, suggests BIMCO, be needed if the problem is to be eradicated. As a catalyst of information and advice on piracy, BIMCO continues to challenge governments to fulfil their obligations to protect shipping and to interdict and prosecute these lawless people who are making seafarers’ lives a misery. Let us also remember around 150 seafarers still held in terrible conditions by Somali pirates, while pursuing the ultimate objective of keeping the seas safe and secure.

 

  • Practice and pragmatism – and some optimism
     

In his accompanying message to Reflections 2013, BIMCO President Mr Yudhishthir Khatau speaks of his confidence that the “worst is behind us” and that there is room for optimism and that the industry outlook remains positive for the coming year, despite the challenge of oversupply of tonnage.  Meanwhile, he emphasises that BIMCO’s practical and pragmatic approach in influencing regulators, legislators and politicians really works and that free trade and fairness remain the most important ingredients to enable shipping to fulfil its irreplaceable role as the consistent and predictable servant of world trade and globalisation.
 

Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Knightsbridge Closes Vessel Acquisition Transaction

Bermuda-based Knightsbridge Tankers Limited announced that it has closed the first stage of its vessel acquisition transaction. Knightsbridge has issued 31 million

Maersk Sells Ven Drilling Barges

Danish shipping conglomerate A.P. Moller-Maersk said on Tuesday its offshore oil and gas drilling unit has sold its Venezuelan barge activities. Maersk Drilling

Deadliest Weekend Ever in the Mediterranean: UNHCR

More than 700 people fleeing Africa and the Middle East may have drowned in shipwrecks in the Mediterranean over the last week, bringing the death toll this year to almost 3,

Shipbuilding

Survey Vessel Delivered to Fugro N.V.

Fugro Pioneer is the second of three vessels to be delivered to Fugro in 2014. Fugro has taken delivery of the second of the three Fugro Offshore Coastal Survey

Mexican Navy Contracts Damen for Two Vessels

Secretaria de Marina orders seventh patrol vessel and a fast crew supplier In August 2014 the Mexican Navy (Secretaría de Marina) and the Netherlands’ Damen

Ferus Smit Building LNG Powered Cement Carrier

The first unique LNG powered ship that Ferus Smit has on order for Erik Thun A.B. will be built and equipped as a dedicated cement carrier. The ship will be delivered to the joint venture JT cement,

Finance

Knightsbridge Closes Vessel Acquisition Transaction

Bermuda-based Knightsbridge Tankers Limited announced that it has closed the first stage of its vessel acquisition transaction. Knightsbridge has issued 31 million

Maersk Sells Ven Drilling Barges

Danish shipping conglomerate A.P. Moller-Maersk said on Tuesday its offshore oil and gas drilling unit has sold its Venezuelan barge activities. Maersk Drilling

Trelleborg Report Optimistic for Port Investment

The latest 'Barometer Report' from Trelleborg's marine operations business sector, discusses the issues impacting ports and terminals around the globe, and reveals

Environmental

Survey Vessel Delivered to Fugro N.V.

Fugro Pioneer is the second of three vessels to be delivered to Fugro in 2014. Fugro has taken delivery of the second of the three Fugro Offshore Coastal Survey

The Switch to Deliver Full-Power Converter for Floating Power Plant

Vancouver-based Water Wall Turbine Inc. (WWT) has selected The Switch to provide a 500 kW full-power converter for its self-floating power plant. This new system

Caterpillar Named to Dow Jones Sustainability Indices

Caterpillar Inc. has been named to the 2014 Dow Jones Sustainability Indices (DJSI), recognizing Caterpillar as a sustainability leader in the Industrial Engineering sector.

Fuels & Lubes

Upcoming Winter Tanker Market Same as Last Year?

Will the 2014/15 winter tanker market be a repeat of the previous one? Poten & Partners consider the question in their latest 'Poten Tanker Opinion'. As the

MN 100: Total Lubmarine

Le Diamant B – 16, rue de la République 92922 Paris-La-Défense Cedex, France E-mail: rm.total-lubmarine@total.com Web: www.lubmarine.com The Company: Total

Brent Oil Hits 26-month Low Under US$97

Brent crude oil on Monday slumped to its lowest in over two years, below $97 per barrel as lacklustre economic data from China, the world's top energy consumer,

News

Knightsbridge Closes Vessel Acquisition Transaction

Bermuda-based Knightsbridge Tankers Limited announced that it has closed the first stage of its vessel acquisition transaction. Knightsbridge has issued 31 million

Majority of Global Tanker Fleet Yet to Adopt ECDIS

UKHO calls on tanker owners and operators to ensure compliance with SOLAS rules on ECDIS carriage from July 1, 2015 The majority of ships in the global tanker fleet have yet to adopt ECDIS,

Survey Vessel Delivered to Fugro N.V.

Fugro Pioneer is the second of three vessels to be delivered to Fugro in 2014. Fugro has taken delivery of the second of the three Fugro Offshore Coastal Survey

Maritime Safety

Maritime Reporter @ 75: The Daily Cartoon

Maritime Reporter & Engineering News was founded by John J. O'Malley (1905-1980) in 1939, and today ranks as the world's largest audited trade publication in the world serving the maritime industry,

Majority of Global Tanker Fleet Yet to Adopt ECDIS

UKHO calls on tanker owners and operators to ensure compliance with SOLAS rules on ECDIS carriage from July 1, 2015 The majority of ships in the global tanker fleet have yet to adopt ECDIS,

Video: Former Captives Discuss Iceberg 1 Hijacking

Piracy: Not a Thing of the Past Think Somali piracy is a thing of the past? That “past” haunts thousands of seafarers today; but the reports from individual seafarers mostly go unnoticed,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Naval Architecture Navigation Pipelines Port Authority Salvage Ship Electronics Ship Repair Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.7388 sec (1 req/sec)