IACS chairman & ClassNK head Noboru Ueda
During his recent India visit, Noboru Ueda , chairman of International Association of Classification Societies (IACS) and head of ClassNK, talks to V Ayyappan on world shipping scenario. Excerpts from the interview.
How healthy is global shipbuilding industry today?
Much like the shipping industry, the shipbuilding industry is very cyclical, and in my more than 40 years in the maritime industry I have seen several market downturns like this one.
With that said, while the current downturn presents a challenge for the industry, it does not compare to previous downturns such as occurred in the late 1970s and 1980s. While these are still not the best of times for shipbuilders, I am very optimistic about the future of the shipbuilding industry.
What made the owners overbook which led to the present crisis? How long will the over capacity situation last?
While it may be true that an oversupply of new vessels is one of the reasons behind the current slump in charter rates, I think we should not overlook the lingering effects of the economic crisis. The health of the shipping industry depends on the growth of world trade, and the slowed growth of the world’s leading economies has certainly had an impact on the shipping industry as well.
While the current downturn may still continue for sometime yet, according to Clarkson’s the world order book has reached its lowest point in 5 years, and so I think the end of the crisis may finally be in sight. However, I think it is important that we do not focus only on the shipping market.
On the technical side, we are indeed going forward, and despite the downturn, there has been huge shift on a wide variety of issues over the past several years, especially in terms of safety and the environment.
It is important to realize that for all the problems with the market over these past few years, we have made tremendous steps forward in these areas, and the shipping industry is safer and greener than it has ever been before , and I think that is something to be thankful for.
Is slow steaming the ideal solution to the present problems of shipping?
While slow-steaming has many benefits, including reducing overall fuel costs and potentially increasing demand for vessels and charter rates, it is not a silver bullet for the industry’s problems . Even though slow steaming also reduces the total amount of fuel used and can reduce CO2 emissions, because vessels must maintain a certain speed in order to ensure safe operations, the overall benefits are limited.
While slow steaming is one option available to shipowners, new green technologies to improve overall efficiency such as a new hull forms, micro-bubble systems, and more efficient engine technology, for example, also have the potential to make a great impact.
Where are the green initiatives taking shipping?
I think that green initiatives, in terms of both regulation and R&D will have a tremendous impact on our industry, and bring about a green revolution in shipping . New regulations like the EEDI will have a powerful impact on our industry that will spur new innovations, and lead to a new generation of more efficient ships.
Why are we failing to address the issue of piracy? Has IACS any solution to offer to end piracy issue?
Piracy is obviously an incredibly important issue for shipowners and the entire shipping industry, but as a technical organization this is one situation that IACS cannot solve on its own. Ultimately, piracy is an issue that will need to be addressed by the joint efforts from the shipping industry and the governments of the world.
Source: The Economic Times
