The debate is definitely turning environmental. I am not necessarily referring to discussions over green house gas regulations and market-based measures, although they are important. What I am alluding to is the growing relationship the industry is starting to have with the notion that Eco-Ships could be the panacea the industry has been waiting for.
And so they may be. After all, bunker fuel is seemingly more valuable than liquid gold and as was correctly pointed out at our Shipping Association Round Table, all the ships on the water now or those being delivered, are in fact old technology and the industry needs to seriously consider returning to the drawing board and completely redesigning ship forms that are capable of delivering the fuel savings the industry needs.
But I detect a dilemma. This would mean a massive re-ordering spree and isn’t that the last thing the shipping industry needs right now. And at a time when the banks are shut, taising the cash may be a problem. As one Greek ship owner forcefully told me, owners must move away from re-ordering and if they want additional tonnage then they should look to the burgeoning second hand markets. Good point, but you also have to realise that if you order a ship from a shipyard you not only get a new ship but you don’t have to take delivery for up to three years. A purchase from the second hand market is good news if you can stump up the readies and take delivery tomorrow.
But back to Eco-Ships. I hark back to my comment in the last issue which referred to the volte face by Maersk over its 20+ options for the much heralded and highly eco-friendly EEE class containerships. The market has altered to the extent that this shipping giant has realised that profit still has to come first. And it does. And while the dash may be on to drive more ships up the demolition beaches of India and Bangladesh – a viable prospect for owners of ageing tonnage at today’s inflating scrap prices - will a move to eco-friendly ships really happen as quickly as some say is needed? Scrapping can’t really happen any faster and the last thing the industry is calling for is new orders. And what if the oil price falls? Well it could I suppose.
Onto something a little less controversial. Piracy. Yes the inability of the shipping industry (sorry, replace that with the international community) to find a workable and durable solution to this problem, has caused consternation in some camps. That erstwhile blogger Clay Maitland has been at it again pointing the accusing finger at the establishment for failing to stand up for what is right and to do something about stopping these brigands once and for all. Clay used the opening session of the recent CMA conference to vocally highlight his concerns over this issue and it was well-placed when you consider the droves of USCG officials present in the audience.
He also used his highly enjoyable London press lunch to re-emphasise the points again. But, surely it has been established that Somali piracy is an international issue which was why at least one prominent shipping trade association president managed to persuade the then IMO Secretary General to take the issue of piracy to the UN Security Council in the first place. And what of the droves of USCG officials, rubbing their ears after Clay’s opening verbal vollies. Has anything come of that?
As if we didn’t have enough to worry about.
Happy reading
Sean Moloney
