Skip to main content

Oversupply still major challenge warns ICS

Oversupply still major challenge warns ICS

Speaking in Istanbul, Simon Bennett, Deputy Secretary General of the International Chamber of Shipping (ICS) warned on 3 April that avoiding overcapacity and unsustainably low freight rates is still a major challenge ten years after the massive downturn of 2008.

Mr Bennett said: ‘In that time shipping companies needed to show restraint when ordering new ships, to prevent stifling recovery. Yet the dark clouds of protectionism and slowing growth in key economies mean that the avoidance of over ordering is now more important than ever.

Addressing an audience of shipowners and operators at the Global Maritime Summit 2019, organised in conjunction with the Turkish Chamber of Shipping, Mr Bennett acknowledged that individual operators would legitimately make their own individual business decisions regarding new tonnage. Our accompanying illustration has been kindly provided by ICS and the Turkish Chamber in support of the Global Maritime Summit 2019 ©.

He added: ‘Opinion is still divided on whether the rapid globalisation that has been experienced in the last 30 years may have run its course, and whether the slower rate of trade growth seen since the 2008 crisis represents some kind of permanent structural change. Certainly in 2019, the outlook for the global economy and thus demand for maritime transport appears to be worsening. 

Ship ordering (in deadweight tonnage) fell 14% in 2018, about 17% below the average since the 2008 downturn.  This suggests that many shipowners may indeed be resisting the temptation to over order and in early 2019, the worldwide shipping order book appeared to be stable at around 10% of the fleet.  However, the reluctance of governments in Asia, where the vast majority of ships are built, to address overcapacity in the shipbuilding sector remains a serious issue.

He went on to explain: ‘As well as the temptation to over order, decisions about when to recycle older ships are also fundamental to the equation. The good news is that a number of important regulatory uncertainties which have complicated decisions about when best to dispose of older ships are finally being resolved.

In particular this includes the implementation dates of the IMO Ballast Water Management Convention.  And while the precise cost of compliance with the IMO sulphur regulations is still unknown, the situation should become clearer after January 2020 now that IMO has confirmed that the implementation date of the global sulphur cap is irrevocable.

In conclusion Bennett reflected:  ‘Notwithstanding the risks of uncertainty in the immediate years ahead, in the long term there is always cause to remain optimistic. The UN has revised its projections for population growth upwards to an incredible 8.6 billion in 2030 from 7.7 billion in 2018.  Combined with seemingly unstoppable demand for higher living standards in emerging economies, this indicates that long term demand for international shipping should continue to increase significantly.’    

ICS is also encouraged by the decision in 2018 by the Organization for Economic Co-operation and Development (OECD) to resume negotiations on an agreement to remove market distorting measures from shipbuilding that contribute to overcapacity.  However, it remains to be seen whether China (which is not an OECD member) will take an active part.      

Posted on: in:

Latest News & Events

Our picture shows a Carnival line up. Five Carnival ships are due in Durban in week commencing 24 May. (Photo: www.africaports.co.za )

No less than five Carnival Cruise ships are due to arrive in Durban between 26 and 28 May to take on bunkers and to restock depleted supplies.

These five ships are part of a group of 12 engaged in the humanitarian task of repatriating over 26,000 crew from the Carnival fleet and other companies, as well as personnel from entertainment centres ashore, who because of the coronavirus pandemic, have had their employment suddenly curtailed.

Hotel staff and entertainers

These are the entertainment staff, the onboard shop workers, beauty salon practitioners, waiters and bus boys, chefs and kitchen staff, cabin cleaners, pursers and front desk people all making up the staff working on board cruise ships.

With cruising curtailed these former employees are finally returning home to destinations like India, Myanmar, Malaysia, Indonesia and the Philippines after having remained on board their ships for more than two months, unable to go ashore or receive visitors ever since cruising operations were suspended in mid -March. Ahead they face another three or four weeks at sea before being allowed to disembark. However, there’s something of a problem.

Call to governments

IFSMA* calls upon Governments to adopt the Framework of protocols for ensuring safe ship crew changes and travel during the COVID-19 pandemic without delay to allow ship owners and management companies to change over their dangerously tired crews.

Governments must act now in order to avoid personal injury to, and mental breakdown of, seafarers and avoid the significant risk of accidents and consequential danger to life and the environment.

Concern at IFSMA

IFSMA is receiving an increasing number of reports from its ship masters’ associations around the world concerned for the welfare and safety of crews and the increased risk with which they are operating in an already high risk environment.  Seafarers are feeling let down and abandoned by their Governments. 

Unprecedented times

Following concerns from the maritime industry, the International Maritime Organization (IMO) issued a circular to all Member States, the UN and agencies and IGOs and NGOs in consultative status with IMO.  This document concerned recommendations to Member States about measures to facilitate ship crew changes in seaports during the COVID-19 pandemic. 

The IMO Secretary General has received a framework of protocols for ensuring safe ship crew changes and travel during the pandemic, proposed by a cross-section of global industry associations in consultative status with the IMO, for example: ICS, IAPH, BIMCO, IFSMA, and P&I Clubs as well as the International Air Transport Association (IATA).

Role of Harbour Master/ Port Operations Professional
Security
Port Call Optimisation
Ship image
Vessel Traffic Services
Safety
dock image
Emergency Management
Environment

Become a Member

Join the world’s premier professional body for harbour masters and receive up-to-date information on the industry and access to the members' area of the website.

Become a sponsor

Become a sponsor of the IHMA today and reap the benefits for your business:

  • Worldwide exposure
  • Prominence on the IHMA website
  • Instant access to your services and products for your existing and potential customers
  • Access to the key decision makers on marine operations in Ports – the Harbour Master
  • The opportunity to showcase your services and products at an international congress every two years

Be a part of the future of a vibrant, respected, professional and influential maritime organisation...IHMA

Download EHMC's Newsletter

Lorem ipsum dolor sit amet, ex vix insolens oportere accusamus, mea nulla aliquip virtute id, et commodo debitis voluptua mel. Vel ut doming scaevola, habemus gloriatur elaboraret ei pro.

Download archived

EHMC newsletter

Our Sponsors

Latest Events

Klaipeda, Lithuania
Baltic LNG & Gas forum

Capitalise on LNG and gas uptake in the Baltics

Creating greater energy security and independence. Meeting environmental regulations.

Join industry game changers who are altering the Baltic gas and LNG markets by providing greater energy security and meeting European climate change targets.

Port of Sillamäe, Estonia
EHMC 2021 Seminar

The Port of Sillamäe (SILPORT), Estonia, is the most eastern port of the EU, located only 25 km from the EU-Russian border and is one of the largest private ports in the EU. It is a relatively new, multifunctional deep-sea port. Natural depth at the quaysides of the port are sufficient for servicing the largest vessels that can enter the Baltic Sea through the Danish Straights. The port was opened for navigation in 2005 and offers an infra- and superstructure capable of handling all cargo groups from oil-products and dry bulk to containerised cargo.

Theme of the 2021 event; the Climate; ports, terminals, ships and harbour masters. Captain René Sirol, Harbour Master, Port of Sillamäe and the EHMC look forward to welcoming you in 2021. Sillamäe Port will provide shuttle busses from the airport of Tallinn to the venue. 

Hilton Canary Wharf, London
Smart Ports Summit

The Smart Ports Summit, 19-20 February 2020, brings together the experts and innovators who are addressing the real need for optimatision of global supply chains and ports to secure fast and efficient movement of goods, manage mega vessels and meet sustainability targets.
Shippers have become increasingly frustrated with lack of visibility, communication, modern equipment and technology at port hubs. Problems often arise whereby a full logistics team is not ready to receive a vessel; leading to unnecessary delays with transporting goods to their final destination.
What can ports do to be more transparent for shippers?
To overcome these difficulties, ports and their supply chains are transforming into smart port ecosystems. Key to embracing this change is the adoption of data-sharing, transparency, collaboration, fast and well-connected software and corresponding cyber security protections.

Exclusive: Introducing the Just-in-Time Arrival Concept

The pioneers behind the Just om Time Concept at the Port of Hamburg have chosen the Smart Port Summit as the venue to announce their results. Created by Wärtsilä, HVCC Hamburg Vessel Coordination Center and Carnival Maritime - the findings from these innovative stakeholders will be presented for the first time at the Summit.
Join us at the Smart Ports Summit this February to find out how the marine industry is adapting to customer demands and paving the way to a new, faster approach to handling vessels and cargo.

View the full agenda >> http://bit.ly/2Rdfz81

Our experts include innovators, ports and equipment suppliers

Jan Gardeitchik, Senior Lead Digitization/Business Development Manager, Port of Rotterdam
Arjan Kampman, Head of Digital & IT, Port of Amsterdam
Hanno Husar, Head of IT, Port of Tallinn
Kyyle Flanigan, Business Analyst, Belfast Harbour
Mar Chao Lopez, Head of Commerical and Business Development, Port of Valencia
Geoff Lippitt, Business Development Director, PD Ports
Gerald Hirt, MD, Hamburg Vessel Coordination Centre
Christopher Crokall, CCO, Inchcape Shipping Services
Peter O'Shaughnessy, Chief Human Resources Officer, Port of Cork

Meet the speakers >> http://bit.ly/2Rdfz81

20% DISCOUNT

As a member of the IHMA you are entitled to an additional 20% saving.

To claim this quote your VIP code: FKT3669IHMA

Register online: http://bit.ly/2Rdfz81

Or contact Roxanna.Kashfi@informa.com

Please make sure you apply for the discount at the time of registration.  

Radisson Blu Edwardian New Providence Wharf Hotel, London
LNG Bunkering europe
LNG Bunkering Europe

 

Hilton London Tower Bridge
Salvage and wreck conference London

IHMA members can save 20% on their registration for Salvage & Wreck Removal conference, 4 – 5 December 2019, London.
The following information is provided by the conference organiser:

Kick off the festive season by attending the biggest salvage industry event of the year – Salvage & Wreck Removal conference (4 – 5 December 2019, London) – meet all the key industry stakeholders, and discuss legal and insurance issues, examine recent casualty operations and incidents, and focus on the future of salvage, new ways of working and emerging technology.

Use IHMA’s exclusive VIP code FKT3652IHMA at the checkout to save 20% on your place: http://bit.ly/36knRBO.

What’s on agenda

Casualty management case studies:

  • Hear how the ‘MSC Zoe’ incident was managed with Jason Bennett, Director EMEA, Ardent and Joram Bootsma, Project Manager, Deep BV
  • Understand the legal implications of the ‘Sanchi’ with Andrew Chamberlain, Partner, HFW, Victor Fenwick, Legal Director, HFW and Paul Walton, Shipping Technical Director, LOC

Dealing with the risks of salvage in a war zone:

Find out how to effectively manage the risks in the Straits of Hormuz and other hot spots – presentations by Helene Peter-Davies, Partner, MFB Solicitors and Jim Scorer, Secretary General, International Federation of Shipmasters' Associations (IFSMA).

New approaches to wreck removal:

Use of Quantitative Risk Assessment for assessing wreck removal with Sam Kendall-Marsden, Director of Claims, The Standard Club.

See the full agenda and speaker line-up to date: http://bit.ly/2N0Z9ir.

Networking Dinner

As part of Global Marine Casualties Week, Salvage & Wreck Removal will offer you a unique opportunity to connect with 300+ industry professionals while enjoying a relaxed atmosphere, superb three-course meal with a great selection of drinks. Find out more here: http://bit.ly/2WppauT. Register now

Places are filling up fast so secure yours while you still can. Use code FKT3652IHMA to save 20%: http://bit.ly/36knRBO.

If you have questions about the event or registration process, please email event organisers at viktoriia.derkach@knect365.com.

This block is broken or missing. You may be missing content or you might need to enable the original module.

Download the IHMA Constitution

The IHMA constitution sets out the establishment of a region of the IHMA, the committee role and authority, its formation and management.

Latest News & Events

Our picture shows a Carnival line up. Five Carnival ships are due in Durban in week commencing 24 May. (Photo: www.africaports.co.za )

No less than five Carnival Cruise ships are due to arrive in Durban between 26 and 28 May to take on bunkers and to restock depleted supplies.

These five ships are part of a group of 12 engaged in the humanitarian task of repatriating over 26,000 crew from the Carnival fleet and other companies, as well as personnel from entertainment centres ashore, who because of the coronavirus pandemic, have had their employment suddenly curtailed.

Hotel staff and entertainers

These are the entertainment staff, the onboard shop workers, beauty salon practitioners, waiters and bus boys, chefs and kitchen staff, cabin cleaners, pursers and front desk people all making up the staff working on board cruise ships.

With cruising curtailed these former employees are finally returning home to destinations like India, Myanmar, Malaysia, Indonesia and the Philippines after having remained on board their ships for more than two months, unable to go ashore or receive visitors ever since cruising operations were suspended in mid -March. Ahead they face another three or four weeks at sea before being allowed to disembark. However, there’s something of a problem.

Call to governments

IFSMA* calls upon Governments to adopt the Framework of protocols for ensuring safe ship crew changes and travel during the COVID-19 pandemic without delay to allow ship owners and management companies to change over their dangerously tired crews.

Governments must act now in order to avoid personal injury to, and mental breakdown of, seafarers and avoid the significant risk of accidents and consequential danger to life and the environment.

Concern at IFSMA

IFSMA is receiving an increasing number of reports from its ship masters’ associations around the world concerned for the welfare and safety of crews and the increased risk with which they are operating in an already high risk environment.  Seafarers are feeling let down and abandoned by their Governments. 

Unprecedented times

Following concerns from the maritime industry, the International Maritime Organization (IMO) issued a circular to all Member States, the UN and agencies and IGOs and NGOs in consultative status with IMO.  This document concerned recommendations to Member States about measures to facilitate ship crew changes in seaports during the COVID-19 pandemic. 

The IMO Secretary General has received a framework of protocols for ensuring safe ship crew changes and travel during the pandemic, proposed by a cross-section of global industry associations in consultative status with the IMO, for example: ICS, IAPH, BIMCO, IFSMA, and P&I Clubs as well as the International Air Transport Association (IATA).