ICS Points to Shipping's Economic Challenges at OECD Meeting

The International Chamber of Shipping (ICS) explained the serious economic challenges presently confronting shipping to 50 transport ministers.

ICS explained its position on the financing of sustainable maritime transport at this year’s Organisation for Economic Co-operation and Development (OECD) International Transport Forum in Leipzig.

Speaking on behalf of ICS, Stena CEO Carl-Johan Hagman said: “In the current economic climate the shipping industry has to work in close contact with shipping’s global regulators, especially the IMO, and make them fully aware of the implications of their actions.”

He added that protecting the environment is of great importance but pointed out the need for a balance between the measures taken do this and their economic impact.

Mr Hagman told the closed meeting: “Distillate fuels currently cost around fifty per cent more than residual fuel and the difference between the two fuels is expected to increase as the use of distillate becomes mandatory. Without significant extra production of distillate fuels, how should ship operators manage these extra fuel costs?”

Questioning how ship operators will manage the additional costs associated with eco-measures, Mr Hagman said the increases “threaten to rise so high that they may have a dramatic impact on world trade or force cargo back onto roads or to other less carbon-efficient modes of transport.”

He cautioned: “If governments and regulators are serious about the concept of sustainable shipping, then we must give serious consideration to these cost-benefit questions.”