LONDON IS STILL THE SHIPPING CAPITAL OF THE WORLD
London is, without doubt, “still the shipping capital of the world, ” according to the Chairman of the International Chamber of Shipping, Masamichi Morooka. But he also suggested that London should not rest on its laurels and that a truly world class centre would wish to retain its position for the very long term and have an ambitious strategy for achieving this.
Speaking on behalf of the world’s shipowners at the London International Shipping Week conference in the UK capital, Mr Morooka outlined what he felt as an employee of a major non-UK shipping company, was needed for a city to be a first class maritime centre.
He remarked that London’s continuing success suggested that a large concentration of beneficial ship ownership was not in fact necessary to be successful, as was also the case with its merchant banks, or indeed the British car industry. But in the long term this strategy would only work so long as the foreign companies concerned were committed to stay.
Highlighting the need for a critical mass of shipping people, a trustworthy legal system, a sound infrastructure, good communications and genuinely international outlook, Mr Morooka said a pre-eminent worldwide maritime centre need to be a ‘one stop shop’ providing immediate access to the expertise and support services required to conduct international operations on a twenty-four-seven basis.
London is the inventor of marine insurance, is home to one of the largest and oldest classification societies, houses the Baltic Exchange, is the financial capital of the world, and has a commitment to open markets and free trade principals, he pointed out.
“As a centre for maritime business services, London still truly lacks a comparable rival, ” he said.
He concluded by pointing out the need for any great maritime centre to enjoy strong support from its national government and city authorities and to have policy makers who treat the maritime sector “as being vital to the health of the rest of the economy.”
From: The Institute of Chartered Shipbrokers, London and South East Branch
“London v Singapore” – The sun most definitely has not set in the West!
Last night (Wednesday 11th September 2013) saw the Institute of Chartered Shipbrokers’ London and South East Branch hold their Autumn seminar in conjunction with London International Shipping Week. A capacity audience of 120 shipping industry professionals were enthralled by two very passionate presentations, the outcome confirming London’s on-going role as the predominant global shipping centre.
The seminar, titled ‘“London v Singapore” Is the sun setting in the West?’, saw Heidi Heseltine (Managing Director of Singapore & London based specialist shipping recruitment firm Halcyon Recruitment) make a very strong case for Singapore being the main shipping hub following the substantial growth in their shipping sector over the past decade. However this was not enough to persuade the audience that London had completely lost its crown, and Alan Marsh (former CEO of Braemar Shipping Services PLC), was able to demonstrate that key elements of the London market will continue to play a dominant role going forward.
The seminar was followed by a lively drinks reception and networking session.
The Institute of Chartered Shipbrokers’ London and South East Branch would like to thank Clyde & Co for their very generous support of this event.
From: Apostleship of the Sea
London gets new port chaplain
As the shipping community gathers in London for the London International Shipping Week, seafarers’ charity Apostleship of the Sea has stressed that crew welfare must remain a top priority for the industry.
Newly-appointed port chaplain for Thames and Tilbury Wojciech Holub believes the work of the organisation, which includes ship visits and practical support for seafarers, is more important than ever as shipping becomes more globalised and automated.
“Sadly, some crew still have not got internet access on board their vessels and don’t have the time to get ashore because of the short port stay, so this is where we come in to provide practical help and advice.”
“I bring along things such as telephone cards with me when I go onboard but often all that the crew are looking for is a friendly face and someone who has the time to listen to them.”
“It can be hard work but I find it rewarding and it keeps me busy, ” says Wojciech, who comes from Gdansk, Poland.
The Apostleship of the Sea is a supporting charity of the London International Shipping Week. Its 14 chaplains work regionally to cover all major ports within the UK. It also provides cover for smaller ports when the need arises. Last year, the organisation visited 10, 032 ships and assisted 203, 640 seafarers in the UK. The Apostleship of the Sea undertakes the majority of ship welfare visiting in the UK and is also present in nearly 300 ports around the world. For more details about the work of the organisation, visit www.apostleshipofthesea.org.uk
From : Reed Smith LLP
LSIW U.S./EU Sanctions Update Seminar Summary
International trade sanctions are of increasing concern to the shipping industry. Inevitably, given the current regional tensions, sanctions against Iran and Syria have received much media attention recently, but both the United States and EU have sanctions regimes in place in respect of other territories and designated entities and individuals.
Reed Smith Shipping Partner Andrew Taylor explains; “sanctions affect our clients in many ways, and not only those within the shipping industry. Sanctions target the goods they may wish to carry or trade, the parties with whom they may wish to do business, and the ability to transfer funds. Where applied, sanctions can affect the existence of insurance cover. Even where they do not threaten the existence of cover, they often affect a P&I Club’s ability to provide support to its members should a problem arise.”
Today, at London International Shipping Week, Reed Smith London’s Shipping Practice held a U.S./EU Sanctions Update Seminar in which two members of the Practice gave an overview of current international sanction regimes. The aim of the event was to enable businesses and individuals to be better protected against sanctions.
Alexandra Allan, Shipping Associate gave a whistle-stop tour of EU sanctions causing the greatest impact on shipping and international trade. This included asset freezes as well as restrictions that apply to imports and exports, fund transfers, financial services and general transport.
Matthew Thomas, a partner at the Reed Smith Washington D.C. office with over 20 years of experience in international trade, transport and maritime law, explored the key trends and themes within the growing territorial expansion of US sanctions. These included the evolution of the US from domestic to extraterritorial sanctions; the importance of dialogue; the global evolution of sanctions awareness, due diligence and contract clauses. Ultimately, Matthew pointed to the need for shipping to have a more elevated voice in Washington.
Event chair David Myers, Shipping Counsel, Reed Smith concluded; “the real concern for those involved in international shipping is making sure that there aren’t issues on the other side of the Atlantic.”
When Investment Saves in the Long Term
Maritime industry leaders attending London International Shipping Week heard how ship owners and managers can achieve 10 per cent operational savings if they focus on the value of satellite communications rather than on cost.
In a keynote speech at the event, Frank Coles, President of Inmarsat Maritime, urged delegates to weigh up the cost of investing in improved satellite communications against the substantial benefits.
“The problem is people haven’t always moved with the times and so may not know what’s possible, ” he said.
“So, they’ll look at their current cost, which is an average of US$25 per day, and seek a reduction.
“In reality, though, that’s just 0.3 per cent of a ship’s running costs. It’s literally a drop in the ocean.
“However, if they were to increase that to just US$100 a day to take advantage of unlimited email and data, our figures show they could actually reduce the cost of running a ship by 10 per cent.”
In monetary terms a vessel using satcoms to their full potential could cut running costs by nearly US$200, 000 a year, Frank Coles claimed.
The potential savings presented to delegates come from a variety of sources, including:
• Fuel savings
• Performance improvements
• Lower port charges
• Insurance premium reductions
• Better crew morale and retention, and
• Lowering the cost of remote IT repairs and support.
He urged ship owners and managers to draw a comparison between how they hasten to equip their teenage children with a mobile phone, so they are safe and contactable, with their reluctance to invest in satcoms to keep in contact with a ship worth US$50 million or more.
Frank Coles was speaking at London International Shipping Week as part of Inmarsat’s Platinum sponsorship of this year’s inaugural event.
LISW: Interview with Roberto P. Cazzulo Chairman, IACS Council and of RINA Services S.p.A.
• What makes a first class maritime centre?
o A first class maritime centre is capable to propel the world towards ambitious targets regarding maritime safety, protection of the environment, ship efficiency and sustainability, providing practical and general guidance to all the world, addressing public concerns and the changing demands of society, and supporting innovation and new technologies.
o The International Association of Classification Societies (IACS), which was established by 7 classification societies (ABS, BV, DNV, GL, LR, NK and RINA) in 1968, currently consists of 13 members, and is governed by a Council, which I have the privilege to chair this year, would like to continue to contribute to these developments.
• Why is it so vital to be in London?
o London is a leading, global maritime centre, due to the presence of the International Maritime Organisation, underwriters and P&I Clubs, brokers, charterers, shipping industry associations and, last but not least, classification societies. It represents an ideal hub to discuss issues among organisations and associations that in fact concern the whole world.
o The fact that about twenty years ago, in 1992, we decided to establish the headquarters of the International Association of Classification Societies, the so-called Permanent Secretariat in London, is just functional to these needs, i.e. to be close to the IMO – IACS has an accredited permanent representative at the IMO – and industry.
• Is there a need to maintain first class excellence?
o There is a need to maintain first class excellence at all levels within the shipping industry. It is a public request for the vital role that the shipping industry continues to have for world economic growth and trade, and for protection of the environment. It is an internal need to continually enhance ship efficiency and safety, and shipping industry sustainability in the long-term.
o London is not just the capital of the UK. It is the hub of international maritime industry developments. It is no mere chance that the IMO, the UN specialised agency dedicated to safety of life at sea, security and protection of the marine environment, and nowadays sustainability, was established in London.
• Are the challenges faced by the shipping industry today different than in the past?
o IACS has recently reviewed its objectives, strategies and short-term plan (adopted in June and published on the IACS website www.iacs.org.uk) based on an analysis of the challenges faced by the shipping industry today, including, inter alia, globalisation, environmental awareness and ship efficiency, shifting the emphasis to people, which are by the way among those addressed in the IMO strategic plan for the next 20years.
o With regard to globalisation, shipping is very international. More than 90% of goods and commodities are carried all around the world, economically, cleanly and safely, by ocean-going ships. However, new networks for energy supply and mass transportation may be needed, raising environmental, economic and social concerns, relating to sustainability.
• How can we support innovation and new technologies?
o Focus on the environment and energy efficiency will drive shipbuilding and shipping industries towards innovation and new technologies.
o The challenges faced today concern the interface between safety and environmental regulations, and their implementation. Measures to enhance maritime security are also to be considered interconnected with safety and environmental protection measures.
• Are we doing enough for shifting the emphasis to people?
o As concerns shifting the emphasis to people, the human element must be considered the most important contributing factor to safety and environmental protection. People should be attracted to work at sea.
o Crew training, which has become more rigorous through the amended STCW Convention, should provide continuous updating on the use of new technologies both on board and ashore. Attention should also be paid to the revised MLC, which inter alia aims to improve working and living conditions on-board ship.
• What does it mean leadership in this context?
o In this scenario, IACS has recognised the need to maintain its “leadership” that may be defined as the ability to go ahead and co-operate with regulators and other industry bodies on initiatives that can effectively promote maritime safety, protection of the environment and sustainability.
o We believe that the same aims can also be expressed by other industry organisations and associations that form the London shipping community, that means essentially the international shipping community.