BIMCO has published its Reflections 2014, a short and accessible analysis including its clear views on the critical issues faced by the shipping industry today and in the coming years.
Not least, the steady improvement of the global economy is bettering the outlook for shipping, as demand goes up and fleet expansion growth cools off, the market fundamentals are expected to improve across the board. Windows of sustainable earnings are likely to occur more often going forward.
But the regulatory burdens, notably those seeking to address environmental pressures, remain major challenges to the industry’s cost base at a time when resources are limited. This includes massive challenges on sulphur limits, ship efficiency, ballast water treatment and NOx regulation. Reflections 2014 also takes a closer look at maritime security, noting that the greatest emphasis is upon the scourge of piracy, but also stresses that there remain many other strands to maritime security e.g. the combating of narcotics and terrorism. The piracy situation is dynamic, and despite attacks in the Gulf of Aden and Somali basin dwindling the situation could reverse and the shipping industry must not drop its guard.
BIMCO’s traditional lead in the world of standard contracts and clauses remains strong along with its ability to respond fast and effectively to documentary demands. The Documentary Committee has been very busy throughout 2013 and has a very full agenda looking forward. In his accompanying message to Reflections 2014, BIMCO President John Denholm says: “a worrying amount of ordering is taking place, adding tonnage to an already excessive world fleet. This will delay a return to a balance between supply and demand and hence the long awaited market recovery. To add insult to injury, the ever increasing regulatory requirements impose significant costs on our industry at a time when it can ill afford them.”
To access the full message from the BIMCO President John Denholm and read the complete publication go to: https://www.bimco.org/emag/Reflections_2014/index.html#/1/
