Marine Industries Global Market Analysis - Marine Institute

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42 MARINE INDUSTRIES GLOBAL MARKET ANALYSIS • Short sea shipping – in 2001 this provided 40% of EU tonne-km and the ‘Motorways of the Sea’ programme will build on this. • ‘Marco Polo’ programme – a second programme is being established from 2007 to shift international road freight to water and rail. • Competition rules – adoption of a white paper to introduce more competition into the sector. • Safety – (following the sinking of the ‘Prestige’) the accelerated phasing out of single hull tankers. • Establishment of the European Maritime Safety Agency and the Future Maritime Safety Package. • Maritime security – enhancing ship and port security. • Human issues – directive on the Minimum Standard of Training for Seafarers. Consolidation of all existing maritime labour standards. SECURITY The continuing effects of 9/11 have increased concerns over maritime security. Maritime transport is vulnerable to terrorist attack.The cruise ship sector has benefited as a result of a reluctance of some to holiday using air travel. Many initiatives and legislation have already been adopted by individual countries and also internationally, most recently with the introduction of the ISPS Code (International Ship and Port Facility Security Code). Such legislation will lead to fundamental changes in the maritime industry.The Code stipulates a number of new regulations that require additional resources, the costs of which will fall to those whom the measures are designed to protect. Also, some believe that the Code relies on seafarers for security and the additional workload is making it more difficult to recruit and retain them. LOCAL CONTENT This is becoming an issue of growing importance in a number of sectors. Many countries demand a certain level of local content in any contracts awarded to foreign companies. For operations in developed countries this is not a great problem as work can be sub-contracted to local companies. However, developing countries present a challenge as they do not often have the established industrial infrastructure to act as sub-contractors.
MARINE INDUSTRIES GLOBAL MARKET ANALYSIS 43 Achieving local content is becoming a significant problem in the case of large hightech capital projects such as those undertaken for the offshore oil & gas industry. 5.2 GLOBALISATION & SEABORNE TRADE The world market is a growing one, stimulated by increasing consumer demand and the globalisation of production. Low-cost manufacturing areas continue to increase in importance and are increasingly involved in globalised activity.The export of manufactured goods from developing countries doubled between 1981 and 2000. As the western world still accounts for two-thirds of the world’s manufactured imports, industrial growth in the developing economies is still dependent on the markets in the developed world. In the marine sector a major impact of this in the past three decades has been the rise of South East Asia as the world’s leading shipbuilding region. However, the market positions of Japan and South Korea are increasingly likely to be threatened by China with its lower costs. China is integrating into the global economy rapidly, since becoming a member of the WTO at the end of 2001. China’s demand for raw materials and energy to feed its domestic and export industries has recently grown exponentially.Whilst European oil consumption has remained relatively constant over the past decade, China’s has doubled. In 2004 Chinese steel imports declined but exports doubled – by 2006 China is forecast to be producing 30% of the world’s steel. Since an estimated 90% of world trade is carried by sea, this helps boost the demand for shipping services. Developments in China are now considered to be one of the most important stimuli to growth for the tanker, chemical, bulk and container trades. Order books for newbuilds are at record levels and if world trade continues to grow at expected rates, then this extra capacity will eventually be absorbed without any significant long-term fall in capacity utilisation. However, there is likely to be a dampening of the currently rising rates for vessels, at least in the short term.The volume of international seaborne trade increased in 2003 by 4.4%, compared with the previous year, to 5,840 million tonnes and tonne-miles by 5.9%. In line with such increases in international trade, ports have recently shown an increase in throughput, especially in container volumes.
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Strategic Planning and Development
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Marine Industries Global Market Analysis - Marine Institute

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