Why the shipping industry needs to deliver a unified message
The maritime industry does not need to speak with one voice so much as to deliver one message. To achieve this all sectors of the shipping industry have to improve cooperation between themselves and work together, concluded the Liberty Congress, a near 12-hour long discussion in Piraeus, last week.
"We are the biggest industry in the world and it is time it was realised that without shipping half the world would starve and the other half freeze," said Spyros M Polemis, when launching the congress on enhancing cooperation and sharing responsibility.
Hosted by Polemis, the recently retired chairman of the ICS and president of the ISF, the forum was held in the refurbished hold of the ss Hellas Liberty, one of the three remaining Second World War Liberty ships, and brought together the chairmen of IMIF, The Baltic Exchange, Bimco, Intertanko, Intercargo, IACS and the chief executive officers of shipping organisations, banks, shipping companies, shipbrokers, law firms and senior classification personnel.
Efthimios E Mitropoulos, IMO secretary general Emeritus, quickly pointed out "the nature of the [shipping] business forces competition between those in it". He emphasised the key to the industry’s strength is coordination and cooperation and this can be achieved through IMO. He warned however, “a group attitude could hurt IMO”.
Mitropoulos pointed out much has been done to improve the image of shipping, but said, “’my word is my bond’ is in danger”.
It was then quickly jumped upon by shipowner, George Gourdomichalis, that among the delegates (349 registered) there was a notable absence of charterers. Indeed, it soon became a theme that charterers has snubbed the event. Gourdomichalis claimed “they just want a cheap ship” and are “not prepared to share any risk”. “They even want to put their own guards on board,” he said while calling for more transparency on the part of charterers, who he also noted “are now seeking to become shipowners”.
David Beard, senior director SSY, said owners have allowed charterers to have their own way and put conditions into charter parties which allowed them to "build a ring of steel to protect themselves". He agreed charterers have been able to do this, because of the state of the market.
With speaker after speaker pointing out charterers seemingly turned down an invitation to the congress, and shipyards also took a similar line, Baltic Exchange chairman, Quentin Soanes, said: “You cannot rely on the counterparty performing the way you did 20 or 25 years ago, sadly.” He went so far as to suggest owner bodies like Intercargo and Intertanko should "set up a vetting scheme for charterers".
As the forum proceeded, it became evident delegates felt the need for shipping to speak with "one voice" was not as important as it was "to deliver the same message”.
The fragmented nature of the industry “does not work in our favour,” said Graham Westgarth, Intertanko chairman. “We need to adopt common positions on key issues, not amalgamate. When issues arise we should develop a task force and call on expert advice and work as one.”
Westgarth said Intertanko is in the final stages of drafting a proposed code of conduct which would soon be sent to oil majors and other charterers.
But back to the regulators. Bimco president, John Denholm, said politicians are “not against shipping”, they “just lack experience”. “The industry should supply the knowledge and engage with politicians early and with energy if we are to stop this flow of well-intentioned regulation.”
John Platsidakis, chairman of Intercargo, saw different views as being “vital”, but said “we need to work together, not in conflict”.
ICS secretary general, Peter Hinchliffe, said regulators expect the industry to speak with one voice, because “ultimately when the industry is united, better results are achieved for the common good”.
IACS chairman, Tom Boardley, contended regulations through consultation, will lead to a strong foundation for the future. He said governments need to liaise more closely with shipowners, class societies and shipyards, before regulations are decide, or “even before regulators proposals are finalised”. Boardley welcomed good regulation, but insisted for that to happen “the consultation has to start before positions become entrenched”.
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