operational committee's reports - Singapore Shipping Association

O ur
Mission
2 SSA Annual Review 2010/2011
AS AN ASSOCIATION
The Association will protect and promote the interests of its
members. It will undertake activities on shipping matters which are
beneficial to its members.
FOR THE INDUSTRY
The Association will take the view of the shipping industry as a whole.
It will play its due role to promote the interests of shipping in Singapore,
ASEAN, Asia and the world. To do so, the Association will co-operate
with other shipping organisations, in ASEAN, Asia and elsewhere.
FOR SINGAPORE
The Association will work closely with the government of Singapore
to protect the extensive maritime interests of Singapore and to
promote Singapore as a major port and international maritime centre.
FOR INTERNATIONAL SHIPPING
The Association will co-operate with governmental and non-
governmental organisations to promote freedom of the sea, safety at
sea and to protect the marine environment.
The global economic climate today is very much an improved one as compared
with the global economic recession experienced in 2009. Continued rapid
economic developments and expansion in countries, such as China, India
and Vietnam, have largely played key roles in maintaining buoyancy in the supply
and demand of shipping services, particularly in Asia in the last one and a half years.
For the most part of 2010, the shipping industry and seaborne trade have
recovered some of the lost grounds. Whilst many had assumed that the worst was
over, we should be mindful that the global economy on the whole is still in a fragile
state. Prospects for shipping in the near term remain difficult and uncertain, due
in particular to the significant size of the ship supply capacity and the impact of
the demand/supply mismatch in the shipping markets. There are also many other
challenges looming in the horizon.
The economic and debt situation in the US and some EU countries is still far
from over. If this problem continues to be unresolved and soon, economists have
forewarned that it may lead to another global downturn. Besides, we are also
coming to grips with the tragic effects of the devastating earthquake and tsunami
which hit Japan in March this year. The ongoing political upheaval in the Middle East
and North Africa is also another area of concern, especially if it brings disruption to
East – West trade passing through the Red Sea. Already, we have witnessed higher
commodity and energy prices. Crude oil prices were also exceptionally volatile over
the past year.
Generally, the shipping industry is facing a period of substantial adjustment in
the wake of the downturn in the world economy and slump in world trade, due
largely to events and developments not within our control. The shipping industry
should maintain its course on an even keel and weather the rough seas as they
come. I am confident that we are well-placed to seize the opportunities that await
us.
The InTernaTIonal Scene
PRESIDENT’S REPORT 2010/2011
Shipping is a global industry. Besides the depressed freight market, a number of
issues have arisen which the Association had to pay full attention to in the past year.
In particular, the Association has been very concerned with the ever-growing threat
of pirate attacks and ship hijacks by Somali pirates. We were also actively engaged in
issues relating to ongoing debates at the International Maritime Organisation (IMO)
relating to the reduction of Greenhouse Gas (GHG) emission from ships.
Our Association has expressed grave concern and great alarm at the everincreasing
threat of attacks by Somali pirates as they extend their reach into the
Arabian Gulf and greater Indian Ocean. Currently, whilst we are having our meeting,
there are 14 merchant ships, 5 fishing vessels and 2 yachts with about 445 seafarers
still held in captivity by armed gangs of Somali pirates, in appalling conditions, and
subject to physical and psychological abuse. One of the victims, unfortunately, is a
Singapore flag ship.
Whilst the SSA is pleased that the Singapore government and other governments
have contributed ships, personnel and air assets to the naval forces stationed in the
region, the SSA continues to maintain that these are temporary stop-gap measures
and are not sustainable in the longer term. Instead, the SSA is of the view that the
MR. S. S. TEO
President
Singapore Shipping Association
”
The shipping
industry should
maintain its
course on an
even keel and
weather the
rough seas as
”
they come.
SSA Annual Review 2010/2011
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