ASA: Shipping needs to become a social and environmental responsible industry

‘’The next generation of maritime professionals and seafarers are learning skills for a rapidly innovating industry and proper grooming and training must be provided’’, Mr Sonoda concludes.

SAFETY4SEA: What are your top priorities in the agenda for the next 5 years?

Yuichi Sonoda: Our key priorities are:

1. How to secure stable maritime transport services to underpin the life and industry in the world
2. Impact of Covid-19 on Seafarers
3. Limited liability for shipowners
4. The Hong Kong Convention (HKC)
5. IMO Maritime Research Fund (IMRF) – Decarbonisation
6. Impact of Ukraine Crisis

S4S: From your perspective, what are industry’s key challenges? What are your suggestions to move forward?

Y.S.: As you know, our industry has met unexpected and unprecedented challenges in the last couple of years, due to the COVID-19 pandemic, congestion at major ports, waterways and inland infrastructures in the world and geopolitical destabilization such as Russia/Ukraine crisis.   In other words, highly stable and reliable supply chain through international maritime transport, which global citizens have long taken for granted, was at risk.  In such circumstance, we, Asian shipowners which control around 50% of the world merchant fleet, are determined to carry out our responsibility through various activities of the ASA, namely liaising with other international maritime associations, sharing knowledge and experience, lobbying governmental authorities, calling for cooperation with stakeholders and raising our voices to the public.

One of the ongoing problems which the ASA is vigorously tackling is the Canal issues.  We have concerns that series of significant toll increment by the Suez and Panama Canal and congestion problem at the Panama Canal could add destabilising effect to the global supply chain and we, primarily through the Committee concerned (Shipping Policy Committee), have urged Canal authorities to improve foreseeability, transparency and long-term stability in terms of the tolls.  ASA will continue our effort to enhance the communication with both authorities, not only for toll and operational issues, but also for safety issues.

Furthermore, the impact of Covid-19 on Seafarers is another key challenge. Our seafarers are the essential human resources of the shipping industry. Working in the front line of the global supply chain, their welfare and wellbeing are always at most concern. It is highly important to ensure seafarers’ welfare and wellbeing under the MLC 2006, thereby attracting and retaining seafarers to remain in the industry.

Another key challenge for ASA is the Hong Kong Convention (HKC). As there is projected a sharp increase in demand for ship recycling after 2023, there is need for early entry into force of the HKC and urgent expansion of Green Yards in multiple countries. China and Bangladesh have been holding the key to the entry into force of the HKC and Bangladesh intents to ratify the HKC by 2023. However, the Convention needs further support by governments of other countries.

S4S: What are the lessons learned from recent challenges (pandemic, major accidents, Russia-Ukraine war) that industry should focus on?

Y.S.:  The Ukraine Crisis is a serious humanitarian crisis, threating the lives of all people in Ukraine, including seafarers temporally calling the port and overall. There is danger of mines in Black Sea, around 100 non-Ukrainian flagged vessels are stuck in Ukraine ports. Some crews have been killed or injured due to missile attack to the ship while more than 1,000 seafarers are still stranded in the area. Lack of transportation prevents Ukrainian & Russian Seafarers from back to their homeland with effect to ship insurance and to the economy. War risk insurance is currently spiking, due to the situation in Ukraine. All of Russia’s waters in addition to Ukrainian and Russian waters around the Black Sea and Sea of Azov, are listed as High-Risk Areas. Consumer price increases on some commodities (wheat, plant oil, LNG, petroleum) as Ukraine and Russia are the major suppliers. Furthermore, some countries imposing sanctions, such as banning imports of oil, gas and coal from Russia, may negatively affect world economy, so as shipping industry. Those may arise the transport demand to alter the source from Russia/Ukraine, however such effects are unforeseeable.

S4S: What are the key actions that will make a step change in industry’s performance across a zero-emission future?

Y.S.:  The proposal of an IMO Maritime Research Fund (IMRF) has been seen as a key step to accelerating the development of technologies for zero-carbon shipping. However, owHothe IMRF was not adopted during IMO MEPC 78. Following this outcome, the International Chamber of Shipping (ICS), representing 80% of the world’s merchant fleet, and ASA is their regional partner, stated that ‘’shipping industry is frustrated by governments’ rejection of R&D Fund to catalyse sector decarbonisation’. Our suggestion is to oppose where appropriate to unilateral and regional actions by governments, such as EU ETS proposals.

S4S: In your view, what needs to change to raise industry’s profile and attract the future talents?

Y.S.:  Shipping industry must look for innovators, creative thinkers, and a diverse set of skills to take the industry into the future. The next generation of maritime professionals and seafarers are learning skills for a rapidly innovating industry and proper grooming and training must be provided. Digitalisation is the key for the future shipping.

S4S:  If you could change one thing in the shipping industry from your perspective, what would it be and why?

Y.S.:  To be social and environmental responsible industry to protect and to serve the world and our future generations.

The views presented hereabove are only those of the author and do not necessarily reflect those of  SAFETY4SEA and are for information sharing and discussion  purposes only.