UNCTAD Multi-year Expert Meeting on Transport and Trade Facilitation. 7 9 December 2011 SUSTAINABLE SHIPPING

Transcription

1 UNCTAD Multi-year Expert Meeting on Transport and Trade Facilitation Room XXVI Palais des Nations Geneva, Switzerland 7 9 December 2011 SUSTAINABLE SHIPPING by Mr. Simon Bennett Director External Relations International Chamber of Shipping (ICS) This expert paper is reproduced by the UNCTAD secretariat in the form and language in which it has been received. The views expressed are those of the author and do not necessarily reflect the view of the United Nations.

2 Sustainable Shipping Simon Bennett, Director External Relations International Chamber of Shipping (ICS) UNCTAD 7 December % of World Trade

3 Shipping is a Global Industry 50% of world fleet owned in Asia Top 5 ship registers in developing nations 5 out of 10 largest container lines in developing nations 60% maritime trade loaded in developing nations International Chamber of Shipping Principal international trade association for shipowners 80% of world fleet Members are national shipowners associations Represents shipowners at IMO

4 Sustainable Shipping Profit People Planet (Economic, Social and Environmental) Economic Sustainability Meeting social and environmental responsibilities is Enlightened Self Interest

5 Shipping is Lifeblood of World Trade One Tonne Iron Ore Typical shipping cost Australia - Europe $US 25

6 One Gallon of Petrol at the Pump Typical shipping cost Arab Gulf - US (crude) $US Shipping is Servant of World Trade Billion tonne miles Growth in world seaborne trade Source: Fearnleys est.

7 Growth of World Order Book Structural Changes for Economic Sustainability? Fewer companies Greater ownership by cash rich emerging economies More government involvement (sovereign wealth funds, loan guarantees)

8 Freight Rate Volatility (Autumn 2008)_ Maintenance of Anti-trust Exemptions Conference system (and pooling arrangements) help reduce market volatility EU prohibition of liner conferences unhelpful But other national competition authorities are maintaining status quo

9 Shipbuilding Policy Shipbuilding Policy Collapse of OECD negotiations to eliminate subsidies disappointing Banks far too willing to support speculative orders Lack of understanding of industry s cyclical nature

10 Maintenance of Free Trade Economic sustainability dependent on open shipping markets and avoidance of protectionism Incorporation of maritime services in new WTO agreement will be very helpful to codify existing free trade practices Maintaining Global Rules for a Global Industry IMO in session in London

11 Social Responsibility Industry supports ILO maritime labour standards, including new ILO Maritime Labour Convention ILO Minimum Wage for Seafarers ILO international recommendation agreed between employers and unions (With overtime) about $1,000 for Able Seafarer Probably unique to shipping

12 Shipping has Diverse International Workforce Two thirds of seafarers are from developing nation (half of officers from outside OECD) Maintenance of level playing field of high employment standards vital Ensuring supply of competent seafarers is a major challenge Safety of Life at Sea Industry s Highest Priority Source: ITOPF Source IUMI

13 The Industry is Committed to Continuous Improvement Environmental Sustainability

14 Reduction in Oil Spills Source: ITOPF Ballast Water Management

15 Switch to Low Sulphur Fuel Ship Recycling

16 Improving CO2 Efficiency Need to Reconcile CBDR with IMO Global Rules on CO2 Only 35% of fleet is registered with Annex I nations Danger of carbon leakage Ships flexible about flag of choice

17 Conclusions Shipping is global industry requiring global rules Unilateral national/regional rules must be avoided Sustainable shipping industry vital to health of world economy- including developing nations

18 Thank you For more information: