Maritime transport sails stormy seas against political and structural headwinds
Shaky outlook for seaborne trade as uncertainty over world economy remains
Environmental sustainability agenda steers maritime industry towards cleaner fuel sources
World maritime trade lost momentum in 2018, with volumes expanding at 2.7%, below the historical averages of 3.0% and 4.1% recorded in 2017.
Total volumes are estimated to have reached 11 billion tons, an all-time high, according to UNCTAD records. UNCTAD is projecting 2.6% growth in 2019 and an annual average growth rate of 3.4% for the period 2019–2024. However, the outlook remains challenging, given the heightened uncertainty regarding trade policy and wide-ranging downside risks clouding the horizon.
Said UNCTAD Secretary-General Mukhisa Kituyi: ‘The dip in maritime trade growth is a result of several trends including a weakening multilateral trading system and growing protectionism. It is a warning that national policies can have a negative impact on the maritime trade and development aspirations of all.’
In 2018, world merchandise trade growth decelerated at an unexpected rate, and tariffs on trade between China and the United States of America escalated amid mounting trade tensions and a proliferation of national trade-restrictive measures.
Apart from trade policy crosscurrents, geopolitics and sanctions, environmental concerns, fuel economics and tensions involving the Strait of Hormuz – a strategic maritime chokepoint – were in the headlines.
Other forces at work continued to slowly reshape the maritime transport landscape. A new normal, contrasting with the historical perspective, appears to be taking hold. This trend is characterized by overall moderate growth in the global economy and trade, a supply chain restructuring in favour of more regionalized trade flows, a continued rebalancing of the Chinese economy, a larger role of technology and services in value chains and logistics, intensified and more frequent natural disasters and climate-related disruptions, and an accelerated environmental sustainability agenda with an increased awareness of the impact of global warming.
A transition to the new normal calls for an improved understanding of the main issues at stake, better planning, and flexible and forward-looking-policies that can effectively anticipate change and enable appropriate response measures that take into account the heterogenous nature of developing countries as a group and their varied local conditions and needs.
A copy of the UNCTAD Review of Maritime Transport 2019 is available here:
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Unlike an emergency situation on land, when a ship faces a crisis at sea, Masters cannot simply dial the emergency services for instant assistance. They take responsibility for dealing with the situation, acting decisively to protect lives and prevent or minimise damage to the ship, environment and cargo.
The International Chamber of Shipping (ICS) and the Oil Companies International Marine Forum (OCIMF) have worked in partnership to provide the industry with a practical guide
Peril at Sea and Salvage: A Guide for Masters outlines the actions a Master should take when confronted with an emergency: from the initial assessment and immediate actions, through to towage or salvage arrangements, as may be necessary. It also explains the importance of prompt notification to relevant parties with onshore support, particularly coastal States and the company.
A section is included with recommendations for a company’s shore-based personnel.
Guy Platten, Secretary General of the International Chamber of Shipping commented: ‘Over the years we have seen a reduction in shipping emergencies and major incidents due to the development of regulations governing the safe operation and management of ships. Crews are regularly trained in emergency response preparedness and the industry has adopted a compliance culture.
According to a media briefing from IMO the key project to support the reduction of GHG emissions from shipping in developing countries through regional maritime technology cooperation centres has been extended to June 2021.
Known as the Global MTCC Network (GMN) Project this implemented by IMO and funded by the European Union.
There is a global network of Maritime Technology Cooperation Centres (MTCCs). These undertake pilot projects and promote technologies and operations to improve energy efficiency in the maritime sector, it is reported.
Since their establishment three years ago, the MTCCs in Africa, Asia, the Caribbean and the Pacific have established strong regional networks and are becoming important regional players, with technical expertise in the field of maritime energy efficiency and greenhouse gas emissions knowledge.
These Centres have undertaken a range of pilot projects, completed port energy audits and established branch offices in three countries. IMO report that more than 50 capacity building activities have brought together a total 2,400 delegates from various parts of the maritime sector.
