Russia’s military took control of waterways when it invaded Ukraine on Feb. 24, in what Moscow calls a “special operation”.

Ukrainian maritime officials have told Reuters fighting has left around 100 foreign-flagged vessels and hundreds of mariners stranded in Ukrainian ports.

Last week a seafarer was killed at the Ukrainian port of Olvia after a missile struck his Bangladesh-flagged cargo ship. Projectiles have hit four other vessels in recent days with one sunk.

The UN’s International Maritime Organization (IMO) convened a virtual meeting on Thursday and Friday to discuss the escalating situation.

A statement afterwards said the IMO’s Secretary-General Kitack Lim “indicated his commitment to take immediate action to realise the blue safe maritime corridor with the cooperation and collaboration of the relevant parties including littoral states”.

It said a maritime corridor would “allow the safe evacuation of seafarers and ships from the high-risk and affected areas in the Black Sea and the Sea of Azov to a safe place”.

Ukraine has accused the Russian military of targeting Olvia port facilities in a missile strike, while Russia’s embassy in Dhaka said last week the circumstances of the incident involving the Bangladesh ship were “being established”. Russia denies deliberately targeting civilians.

The IMO meeting was held with its Council, which consists of 40 member countries who are elected for two years. Non-Council member states such as Ukraine were able to make statements.

The IMO statement said separately that the Council “deplored the attacks of the Russian Federation aimed at commercial vessels, their seizures, including search-and-sescue vessels”.

The Council separately demanded that Russia “cease its unlawful activities to ensure the safety and welfare of seafarers and the security of international shipping and the marine environment in all affected areas”.

Russia’s IMO representatives could not be immediately reached for comment on Friday.

Source: www.marinelinks.com

Image: www.pixibay.com

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The sustainability-linked senior note is associated with a clearly defined sustainability target: By 2030, the CO2 intensity of Hapag-Lloyd’s own fleet is to be reduced by 60% compared with 2008, the reference year of the International Maritime Organization (IMO).

Hapag-Lloyd aims to achieve this ambitious goal by purchasing new and efficient ships, phasing out old ships, using alternative fuels and introducing additional measures to reduce emissions. The lower CO2 emissions of its own fleet are to be measured and annually disclosed according to the so-called Average Efficiency Ratio (AER) indicator: For Hapag-Lloyd’s own fleet, this was 11.68 in 2008 and is now expected to fall to 4.67 by 2030. The AER provides information on CO2 intensity measured in grams of CO2 per tonne-mile (gCO2/dwt*nm).

“We will continue to lower our carbon footprint and we will be transparently measured against it – year after year. With our new sustainability target, we are setting a clear goal for our level of CO2 intensity by 2030. This will likewise be an integral part of our expanded sustainability strategy, which we will be publishing later this year. At the same time, with the planned sustainability-linked senior note, we would like to gain additional momentum in our green financing activities,” said Mark Frese, CFO of Hapag-Lloyd AG.

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Ships are assets of high value, and the activities of trade ships envisaged annual calculation of income exceeding one and a half trillion US dollars in the rates of cargo shipping.

In the international market there are more than 50,000 trade ships carrying any types of cargo. The world’s fleet is registered in more than 150 countries, and it is employed by more than a million seamen. Sea trade continues to expand providing benefit for consumers all over the world thanks to the competitive cargo costs. The increasing shipping as a transport efficiency still has great industrial perspectives in the future.

Shipping companies are very conservative; therefore any changes take place slowly. The conservatism of the industry has partially emerged as a result of the long history of growth.

Main Present Problems of the Cargo Shipping Industry

However, although the above mentioned sounds as a powerful breakthrough in the shipping industry, in reality container shipping has faced certain decline during the last five years, which was stimulated by about to happen global financial crisis, as well as by incommensurately high increase of industrial capacity with immediate falls. This economic disbalance rocks the shipping business alike over the waves in the sea – up and down.

Market is saturated, and the industry now competes for a market share. It means that the industry players shall be ready for both new challenges and changes, as well as for the fact the smaller and less competitive players will leave the market.

Many shipping companies have no well-considered system for the management of cash flow. Most of the operators offer the same or similar service to all customers, irrespective of the needs.

Many operators have conflicts with the owners of their administrated ships. The operators have their own understanding of the shipping industry and gaining of profit, whereas owners want to manage maximum value of their assets. Some of the challenges with which the companies face ― disbalance of supply/demand and fluctuations of demand.

Thanks to the redemptions of companies, new alliances and even bankruptcies, the operators’ competitiveness in the industry decreases.

What is Expected with regard the Cargo Shipping Industry after a Year?

Essential are the tariffs that increase in the shipping industry under the influence of US and China trade war. If the countries will not achieve an agreement on the tariff rates, US will again reconsider and increase the shipping tariffs next spring.

Industry players are considerably worried about the impact of the implementation of the demand of International Maritime Organization to decrease the content of sulphur in the fuel already starting from 2020. The above mentioned regulations might have one more destructive impact on the industry.

Although operators do their best to preserve their gains in the shipping rates, the achievement of profitability during the coming years still will be complex. One or several operators still may choose to lower the rates and charges for other, thus implementing an intention to win out or obtain competitors who fight for the beginning of 2020, when there are planned the new requirements regarding fuel.

In the study “Is the Shipping Industry Embracing the Digital Age?” performed by international law firm Reed Smith it is pointed out that the most important challenges of coming five-year period are squaring of demand, consolidation of industry that makes to decrease the rates of cargo shipping and regulations with regard the fuel emissions to me implemented. The market surplus risk will affect the shipping rates and, possibly, will exclude smaller shipping companies. The survey showed that during the coming five years the directing force of most significant changes is the analysis of large data, as well as technologies to deal with environmental and emission issues.

Solutions how to Strengthen the Cargo Shipping Industry

In order to make progress, there shall be facilitated the improvement of commercial activities and strategic planning.

It may be also the analysis of a successful commercial operator’s success story that might help other operators to understand, which customers gain the most profit. For example, as one global container line uses the market information to develop its business model. On the basis of this analysis, the company can develop purposeful sales campaigns in order to keep or attract more contributing customers. The balancing of prices in the industry will help to define marginal charges and price caps to fill up the ship and to use its maximum capacity.

The conclusion of contract shall be flexible in order the operator ships would not be filled with low profit cargos that finally constitute the company’s annual budget.

A container with the lowest purchasing price often costs most. This may be dealt with by elaborating the price forecast of dry containers and by carrying out the optimal management of cargo container fleet that will enable to optimize active use.

It is necessary to understand, whether the lease of ships is always the best solution – perhaps, it is worth to consider the leasing opportunities. The shipping lines shall also choose whether to deliver cargos directly, or to perform reloading at a temporary centre, which may depend on several factors, for example, the size of the ship and the distance.

Employees working in the industry shall be motivated and provided with training. There shall be envisaged also investments into the company’s data analysis.

Irrespective of the fact, how operators achieve cleaner level of fuel, they shall figure out, how to meet the requirements International Maritime Organization on the maximum permissible sulphur content in the fuel, decreasing it gradually.”

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