Having performed small study on the information provided in the public space in relation to the global economy after yet another postponed “Brexit” transaction, I can draw a conclusion that the economic recession of some countries still moderately continues, while some countries have stable positions in the financial markets.

The economists have forecasted that in 2020 the decrease of the growth rate of the United Kingdom gross domestic product (GDP) down to 1%. It is clear that the global economic recession will creep up suddenly, if “Brexit” takes place without any agreement. It is also anticipated that Great Britain will be the most affected by global financial risks; it is hoped for the country to be sufficiently prepared for such situation now.

The trade war between the Unites States of America (USA) and China is still at the level of power games. At present it is observed, however, that the positions of China have weakened lately. The Chinese government forecasts that the growth of the country in 2020 will be less than 6.0%.

The most significant growth in the European Union has been observed in Central European countries, for example, in Poland. Almost as significant as the growth in Poland, it have been also in Belgium and in the Netherlands; while in the rest of the countries certain economic recession has been experienced.

Germany, the greatest economy of the euro area, is close to the recession. Its economic recession might also affect all neighbours. The European Central Bank has already lowered interest rates; however, the economists still have doubts, whether the measures taken would provide the desirable result.

The growth rates of Germany are almost the worst since 2013. On the one hand, the labour market is tensed with a very low level of unemployment, and the consumers’ expenditure has a stable increase. On the other hand, alongside with the decrease of production volume, the industry faces recession. Although Olaf Scholz, the minister for finance of Germany, states that Germany has no crisis, and the next year even growth could be expected, it should be pointed out that the uncertainty with regard to the transaction with the USA and the United Kingdom causes consequences.

The economic stability of the USA is destroyed also by rapid decline of automobile manufacturing. The output of automobiles from September till October has decreased by 7.2% in comparison to the year before – by 11.9%. But the investors are longing for stability and certainty in relation to the future economic policy.

It seems that India has a wait-and-see policy in all the economic theatre, and it scrupulously protects its positions from the observer’s angle, while reforms introduced by France already give the first results regarding the stabilization of economy, Germany fights to keep its positions; however, it should be pointed out that not all available resources have been used.

The labour market reforms of France bring positive tendency, which is related to the permanent increase of the growth rate of employment. The employment in France in the third quarter increased by 0.3% in comparison to the preceding quarter. Meanwhile, the industrial manufacturing continues to grow, even when neighbouring Germany faces drastic decline. France even could partially benefit from the less impact of global economic recession than it is in the case of Germany.

Mexico still faces the decrease of investment amount in business sectors. Its main problem is export-oriented industry. The investments into machinery and equipment decreased by 9.5%, but in the construction – by 0.1%, in the housing sector – by 3.4%. The investment issue partially reflects the problems of the huge automobile industry. The automobile export of Mexico during the first 10 months of the year decreased by 1.7%.

The number of the working unemployed in the all euro area has not changed significantly over the last three months. The lowest unemployment levels in the euro area were in Germany – 3.1% and in the Netherlands – 3.5%. The highest indicators were in Greece – 16.9%, Spain – 14.2%, Italy – 9.9% and in France – 8.4%.

The year 2020 might be important for economies of many countries on the whole; however, there should be evaluated also the complex preparatory work done in each country that have been carried out in conformity with the common measures of countries envisaged for the stabilization of economy.

 

 

 

The lifetime of modern vessels lasts from 25 to 30 years, before the layer of corrosion starts covering them, the engines have defects and other types of wear and tear that make the operation of ship not only expensive, but also dangerous. Then the operators face the considerable dilemma – what to do with the large floating equipment that is of no use anymore. Scrapping of vessels enables to obtain the valuable steel and to recycle into new articles, besides, fittings and other equipment situated on a vessel, may be used repeatedly.

Every year there are around thousand large vessels scrapped, out of which most vessels are scrapped at Asian seashores. The employees risk with their lives, suffer from the influence of toxic substances, and seashore ecosystems are destroyed.

There are concerns with regard the use of the poorest countries without strict environmental legislation, because, for good reason, it is considered one the most dangerous sectors in the world. Environmentalists and trade unions state that there is necessary a new legislative action to reduce the constant number of workers’ deaths and injuries.

Chittagong now is the world’s largest centre of scrapping vessels, where there are annually on average 230 vessels recycled and 10 million tons of steel produced – up to 60% out of all steel used in Bangladesh. Besides, the above mentioned trade transactions often lack “transparency”.

Reconstruction instead of Shipbreaking

One of the alternatives would be at least trying to give the second chance for a worn out ship, namely, to reconstruct it.

Welcomed are the attempts of different companies to implement such plans as, for example, to install additional wind-assisted propulsion systems, to use different hybrid-solutions with electric traction system, to combine diesel and battery energy.

As another type of solution is the conversion of a large and long vessel by converting the damaged sections, in order it could serve for a certain period longer, however, this should be done by outstanding professionals of the field, and there should be evaluated the costs of investments.

Figure – Conversion of a Vessel.
Source: https://krz-fa.com/services/conversion-and-modernization-of-vessels-2.html

At present Peking has made considerable efforts to modernize its fleet. Russia also has become aware of the necessity to modernize its fleet, because most of the bulk and dry bulk vessels soon will quit their operation. However, the time of the use of some vessels may be prolonged by using new engine brands of foreign manufacturers that are used the dry bulk and bulk vessels; this considerably reduces operational and diesel engine repair costs, as well as prolong their life-time.

The Advantages of Using Alternative Resources

An electric engine vessel will be more expensive solution than the hybrid-vessels; however, both of them will not be appropriate for long-distance transportation, therefore also here the manufacturers have several challenges to deal with in the nearest future.

Norway has already offered the world’s first autonomous electric container vessel ‘Yara Birkeland’, which will change the cargo transportation in the sea. It is planned that the operation of the ship will be commenced this year, the batteries of the ship will withstand from seven and a half up to nine megawatt hours. Since the battery technology has not been sufficiently developed for long distances, the ship will be operated only on short routes. However, it is a considerable step, so that Norway could position itself as a pioneer, offering an alternative traction system. Taking into consideration this geographic location and country’s rich hydro-electric resources, there is no wonder that Norwegians have made progress regarding the development of electric shipping. By 2023 all country’s ferry fleet will be either completely electric or for the long-distance routes it will be equipped with hybrid-technology, state experts. Norway already now is the world’s leader regarding the introduction of electric vehicles, which is considerably stimulated by hydro-energy that ensures 98% of country’s electricity.

Other countries – including Finland, the Netherlands, China, Denmark and Sweden – also start placing on the market the electric vessels. For example, last year China ordered the 230 feet long electric cargo ship that ironically transports coal in the Pearl River.

If electrification of world’s automobile and truck fleet is a difficult challenge, then the transformation of world’s shipping fleet from considerably polluting heavy fuel oil and diesel to renewable energy sources. It should be taken into account that a new electric ferry decreases amount of CO2 emissions by 95%, but operational costs – by 80%.

Using of solar and wind energy for the cargo ships in the field of commercial carriage by now was undeservedly forgotten resource. Alike sailing ships, even if they do not provide for the main propulsion, if they are combined with other modern technologies, it is possible to attain great alternative results.

The transformation of world’s shipping using renewable energy is a long-term goal, and, according to experts, it will be necessary to develop more complex battery technologies and new legislation.

 

The European Union is working very hard to make ship recycling greener and safer in the future. It is quite clear that the dismantling of ships in many parts of South Asia in a way it is being done is not acceptable, either from an environmental or a social point of view.

The ship recycling regulations, adopted seven years ago, are finally gathering pace now. In particular, the Regulation firstly prohibits or restricts the installation and use of hazardous materials such as asbestos or ozone depleting substances on board ships..

In addition, as early as the end of this year, from 31 December 2020, in accordance with the European Union Ship Recycling Regulations (EUSRR), ships of 500 gross tonnage and upwards with the European Union (EU) member state flag and all other ships, regardless of flag, will be required to keep an inventory of hazardous substances and materials (IHM) when visiting an EU or European Economic Area (EEA) port.

New European ships and EU-flagged ships which are being dismantled must have this list of hazardous materials (IHM), inspected by the relevant administration or authority, indicating the location and approximate quantity of these materials.

However, as a result of the COVID-19 pandemic, many ship-owners may not be able to complete the required inventory of hazardous materials (IHM) before the deadline. To this end BIMCO* recommends that its members firstly develop an IHM on older ships. Older ships are usually recycled more quickly, and such planning will show that ship-owners are proactive in meeting the requirements of the new EU regulation.

In addition, as members of BIMCO, we have already written to the European Commission and asked for favourable conditions for all parties concerned regarding the deadlines for shipping companies to complete the IHM process while dealing with COVID-19 limitations and outages.

The letter also includes a set of industry guidelines on compliance with European Union ship recycling regulations and the establishment of an inventory of hazardous materials, which BIMCO members are encouraged to use.

It is now known that the new regulation will affect approximately 137 (58%) of the 236 BIMCO member vessels. It is already known that only 33 ships have completed their homework, while the rest are in various stages of development in meeting the requirements.

We are propounding streamlining of the system, but we also want it to be a reasonably achievable condition for all market participants and for the new bureaucratic burden not to further restrict companies which are already crisis-hit.

 

*BIMCO – The world’s largest direct-membership organisation for ship-owners

The European Union is working very hard to make ship recycling greener and safer in the future. It is quite clear that the dismantling of ships in many parts of South Asia in a way it is being done is not acceptable, either from an environmental or a social point of view.

The ship recycling regulations, adopted seven years ago, are finally gathering pace now. In particular, the Regulation firstly prohibits or restricts the installation and use of hazardous materials such as asbestos or ozone depleting substances on board ships..

In addition, as early as the end of this year, from 31 December 2020, in accordance with the European Union Ship Recycling Regulations (EUSRR), ships of 500 gross tonnage and upwards with the European Union (EU) member state flag and all other ships, regardless of flag, will be required to keep an inventory of hazardous substances and materials (IHM) when visiting an EU or European Economic Area (EEA) port.

New European ships and EU-flagged ships which are being dismantled must have this list of hazardous materials (IHM), inspected by the relevant administration or authority, indicating the location and approximate quantity of these materials.

However, as a result of the COVID-19 pandemic, many ship-owners may not be able to complete the required inventory of hazardous materials (IHM) before the deadline. To this end BIMCO* recommends that its members firstly develop an IHM on older ships. Older ships are usually recycled more quickly, and such planning will show that ship-owners are proactive in meeting the requirements of the new EU regulation.

In addition, as members of BIMCO, we have already written to the European Commission and asked for favourable conditions for all parties concerned regarding the deadlines for shipping companies to complete the IHM process while dealing with COVID-19 limitations and outages.

The letter also includes a set of industry guidelines on compliance with European Union ship recycling regulations and the establishment of an inventory of hazardous materials, which BIMCO members are encouraged to use.

It is now known that the new regulation will affect approximately 137 (58%) of the 236 BIMCO member vessels. It is already known that only 33 ships have completed their homework, while the rest are in various stages of development in meeting the requirements.

We are propounding streamlining of the system, but we also want it to be a reasonably achievable condition for all market participants and for the new bureaucratic burden not to further restrict companies which are already crisis-hit.

 

*BIMCO – The world’s largest direct-membership organisation for ship-owners

The lifetime of modern vessels lasts from 25 to 30 years, before the layer of corrosion starts covering them, the engines have defects and other types of wear and tear that make the operation of ship not only expensive, but also dangerous. Then the operators face the considerable dilemma – what to do with the large floating equipment that is of no use anymore. Scrapping of vessels enables to obtain the valuable steel and to recycle into new articles, besides, fittings and other equipment situated on a vessel, may be used repeatedly.

Every year there are around thousand large vessels scrapped, out of which most vessels are scrapped at Asian seashores. The employees risk with their lives, suffer from the influence of toxic substances, and seashore ecosystems are destroyed.

There are concerns with regard the use of the poorest countries without strict environmental legislation, because, for good reason, it is considered one the most dangerous sectors in the world. Environmentalists and trade unions state that there is necessary a new legislative action to reduce the constant number of workers’ deaths and injuries.

Chittagong now is the world’s largest centre of scrapping vessels, where there are annually on average 230 vessels recycled and 10 million tons of steel produced – up to 60% out of all steel used in Bangladesh. Besides, the above mentioned trade transactions often lack “transparency”.

Reconstruction instead of Shipbreaking

One of the alternatives would be at least trying to give the second chance for a worn out ship, namely, to reconstruct it.

Welcomed are the attempts of different companies to implement such plans as, for example, to install additional wind-assisted propulsion systems, to use different hybrid-solutions with electric traction system, to combine diesel and battery energy.

As another type of solution is the conversion of a large and long vessel by converting the damaged sections, in order it could serve for a certain period longer, however, this should be done by outstanding professionals of the field, and there should be evaluated the costs of investments.

Figure – Conversion of a Vessel.
Source: https://krz-fa.com/services/conversion-and-modernization-of-vessels-2.html

At present Peking has made considerable efforts to modernize its fleet. Russia also has become aware of the necessity to modernize its fleet, because most of the bulk and dry bulk vessels soon will quit their operation. However, the time of the use of some vessels may be prolonged by using new engine brands of foreign manufacturers that are used the dry bulk and bulk vessels; this considerably reduces operational and diesel engine repair costs, as well as prolong their life-time.

The Advantages of Using Alternative Resources

An electric engine vessel will be more expensive solution than the hybrid-vessels; however, both of them will not be appropriate for long-distance transportation, therefore also here the manufacturers have several challenges to deal with in the nearest future.

Norway has already offered the world’s first autonomous electric container vessel ‘Yara Birkeland’, which will change the cargo transportation in the sea. It is planned that the operation of the ship will be commenced this year, the batteries of the ship will withstand from seven and a half up to nine megawatt hours. Since the battery technology has not been sufficiently developed for long distances, the ship will be operated only on short routes. However, it is a considerable step, so that Norway could position itself as a pioneer, offering an alternative traction system. Taking into consideration this geographic location and country’s rich hydro-electric resources, there is no wonder that Norwegians have made progress regarding the development of electric shipping. By 2023 all country’s ferry fleet will be either completely electric or for the long-distance routes it will be equipped with hybrid-technology, state experts. Norway already now is the world’s leader regarding the introduction of electric vehicles, which is considerably stimulated by hydro-energy that ensures 98% of country’s electricity.

Other countries – including Finland, the Netherlands, China, Denmark and Sweden – also start placing on the market the electric vessels. For example, last year China ordered the 230 feet long electric cargo ship that ironically transports coal in the Pearl River.

If electrification of world’s automobile and truck fleet is a difficult challenge, then the transformation of world’s shipping fleet from considerably polluting heavy fuel oil and diesel to renewable energy sources. It should be taken into account that a new electric ferry decreases amount of CO2 emissions by 95%, but operational costs – by 80%.

Using of solar and wind energy for the cargo ships in the field of commercial carriage by now was undeservedly forgotten resource. Alike sailing ships, even if they do not provide for the main propulsion, if they are combined with other modern technologies, it is possible to attain great alternative results.

The transformation of world’s shipping using renewable energy is a long-term goal, and, according to experts, it will be necessary to develop more complex battery technologies and new legislation.