Non-Subscriber Extract
Executive Overview: Merchant Ships
11 June 2009
The recession is squeezing global trade and ship prices, causing owners to consider the decision to scrap some of their vessels in order to reduce costs. There are approximately 1,000 vessels laid-up around the world's anchorages, but the classification society, Det Norske Veritas, has warned that by 2013 there could be 6,000 vessels laid up and that overcapacity could reach 10,000 vessels worldwide. The withdrawal of vessels over 30 years old, is one way to solve the problem of overcapacity in the industry, however, other short-term solutions such as using sheltered bays as safe havens for unemployed tonnage have created business opportunities in Southeast Asia.
Another problem that has led to dire warnings from industry professionals is the shortage of seafaring skills. Ole Stene, the head of the International Ships Managers' Association, stated that the industry needs to find around 400,000 new ratings and 45,000 officers to crew the 10,000 ships due to come into service during the next three years.
Another cost-cutting measure that many owners are practising is 'slow-speed' sailing. Slowing by 10 per cent can lead to a 25 per cent reduction in fuel used. This practice also has the advantage of reducing CO2 emissions.