Post on 12-Aug-2020
Shipbuilding Policy
The Shipowner Perspective
Daniel Hosseus
International Chamber of Shipping
OECD Workshop
December 2009
What is ICS?
Principal international trade
association for shipowners
Represents all sectors and trades,
75% of world fleet
Membership of national shipowners’
associations from 33 nations
ICS Purpose
Representation of global shipowners
at IMO (and other international bodies
that impact on shipping)
IMO in session
in London
Growth of World Order Book
Source: Clarkson
Decline in Container Movements
Source: ELAA
Decline in container traffic: America-Europe Eastbound (Dry and Reefer)
Source: ELAA
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
Q3 2008 Q3 2009
TE
U
Order Book as % World Fleet
Source: Clarkson
Too Many Ships, Too Few Cargoes!
Avoiding Protectionism
Governments should avoid increasing
market share regardless of the
consequences!
History lesson
1970s – OPEC oil shock/recession/
reopening Suez Canal, large tankers
uneconomic
Yards slashed prices, often below cost
Switched to bulk carriers, flooded
market
Shipping took 15 years to recover
Ships Should Not be Sold Below
Cost
Meaning of ‘below cost’ difficult to
define
But danger of sophisticated vehicles
for absorbing new ships for which
there is no demand
Eliminating Subsidies
Most important – need for greater
transparency
A New OECD Shipbuilding
Agreement?
Need for normal market disciplines
Re-opening of negotiations would be
welcome
Failure of 1994 agreement
disappointing
Focus on subsidies not on prices
Maintaining Standards
IMO regulatory pressures should
encourage innovation
Designs that reduce fuel costs – and
CO2 – enlightened self interest
Ship Recycling
Surplus capacity could be converted
into ship recycling centres
Yards could seek certification under
new IMO (Hong Kong) Ship Recycling
Convention
‘Cradle to grave’ approach of IMO
Convention means shipyards have
responsibilities
Conclusion
Recession does not stop demand for
safety and environmental
improvements
New OECD agreement would be
welcome
Need for more transparency with
shipbuilding policy
Thank you
For more information visit
www.marisec.org