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

People & Company News

Container Manufacturer Reports Profit Plunge

World-leading container manufacturer and logistics services provider Singamas Container Holdings Limited (Singamas) has  announced its unaudited interim results for the six months ended 30 June 2014.

CACI Named MSC Logistics Prime Contractor

CACI International Inc says it has been selected as a prime contractor to provide logistics support to the U.S. Navy’s Military Sealift Command (MSC) on the Worldwide

Iconic Star Ferry in Move to New Wan Chai Pier

With effect from the first departure on Saturday 30 August 2014, Hong Kong's “Wan Chai – Tsim Sha Tsui” ferry service will operate from the new Wan Chai Ferry Pier.

Shipbuilding

Bid to Rescue Clyde Shipbuilder Ferguson

Jim McColl, one of Scotland's richest men, has tabled a bid to rescue collapsed Clyde shipbuilder Ferguson and aims to return the yard to its former glory by creating hundreds of jobs,

US’ Largest Floating Drydock Heads to Portland

The country’s largest floating drydock, the Vigorous, is headed for Portland this weekend. The drydock, a piece of equipment used to lift vessels as large as cruise ships out of the water,

Country’s Largest Floating Drydock Coming to Portland

The country’s largest floating drydock, the Vigorous, is headed for Portland this weekend. The drydock, a piece of equipment used to lift vessels as large as cruise ships out of the water,

Finance

Container Manufacturer Reports Profit Plunge

World-leading container manufacturer and logistics services provider Singamas Container Holdings Limited (Singamas) has  announced its unaudited interim results for the six months ended 30 June 2014.

Bid to Rescue Clyde Shipbuilder Ferguson

Jim McColl, one of Scotland's richest men, has tabled a bid to rescue collapsed Clyde shipbuilder Ferguson and aims to return the yard to its former glory by creating hundreds of jobs,

Scotland Site for World's Biggest Tidal Array

The world’s biggest tidal array is to be built in North Scotland bringing jobs and energy security to the Pentland Firth region, informs a UK Government news release.

Environmental

DoD Awards US$117-M New Orleans Dredge Contract

The US Department of Defense informs that it has awarded Boh Bros. Construction Co., LLC, New Orleans, Louisiana, a US$116,956,672 firm-fixed-price contract with

Chilean Court Rejects Appeal Against Crow River Project

Chile's Supreme Court on Thursday rejected an application for an environmental organization against Crow River hydroelectric project, which plans to build in the

Scotland Site for World's Biggest Tidal Array

The world’s biggest tidal array is to be built in North Scotland bringing jobs and energy security to the Pentland Firth region, informs a UK Government news release.

Fuels & Lubes

LNG America Selects Topside Designer for LNG Bunker Barge

LNG America has selected Taylor-Wharton to commence the front-end engineering and design work for the cryogenic topside of the company’s 3,000 cubic meter Gemini

Lithuania Inks First Statoil LNG Deal

Lithuania seeks to cut dependence on Russia; Statoil to supply 0.54 bcm of gas per year. This will cover about 20 pct of Lithuania's demand. Lithuania signed

'Double Jeopardy – Trial by Media, Trial by Law' London Opening

BIMCO notes that the highly acclaimed "Double Jeopardy - trial by media, trial by law" first showcased at the BIMCO AGM in Dubai earlier this year is to be brought

Maritime Security

Navy CNO Sets Out Annual 'Navigation Plan'

The Navy's top leader has released a detailed plan that highlights the U.S. Navy's intended track and investments for the next 5 fiscal years, informs Chief of Naval Operations Public Affairs.

CBP Aircraft Locates Vessel in Distress

U.S. Customs and Border Protection Office of Air and Marine agents assigned to the North Dakota Air Branch have located four people on Red Lake after a call

IMB: Guard Against Threat of Cyber Attacks

The International Maritime Bureau (IMB) is calling for vigilance in the maritime sector as it emerges that shipping and the supply chain is the ‘next playground for hackers’.

News

400 Migrants Rescued by USCG & RBDF

Coast Guard crews and Royal Bahamian Defence Force (RBDF) rescued more than 400 Haitians illegally migrating in three separate at sea interdictions in the span of 11 days.

Chilean Court Rejects Appeal Against Crow River Project

Chile's Supreme Court on Thursday rejected an application for an environmental organization against Crow River hydroelectric project, which plans to build in the

Navios Maritime Reports Better Revenues for 2Q & 1H, 2014

Navios Maritime Holdings Inc. a global, vertically integrated seaborne shipping and logistics company, today reported financial results for the second quarter and six months ended June 30, 2014.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Navigation Offshore Oil Pipelines Ship Simulators Shipbuilding / Vessel Construction Sonar 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: 0.3456 sec (3 req/sec)