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WELCOME
UNITED FRONT
SIMON GUTTERIDGE, CHIEF EXECUTIVE ABTO
By standing together, organisations representing shipping and ports and terminals can be unified in their aims, from cleaner shipping to safety
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he first quarter of 2021 started well for dry bulk, when BIMCO reported: “The first four months of 2021 have been record breaking in volume terms, with demand reaching 1.69bn tonnes – the highest-ever start to a year. Volumes are up 6.1% compared with the same period in 2020, and only slightly down from the 1.72bn tonnes in the final four months of 2020.” In the second quarter, BIMCO’s chief shipping analyst Peter Sand posted: “The swift recovery from the pandemic in China has seen its dry bulk imports rise to their highest levels ever, boosted by infrastructure heavy stimulus and high grains demand, causing a spike in the appetite for many dry bulk imports, which have reached their highest levels ever.” Platts, meanwhile, sees this trend continuing into the third quarter. However positive the markets, political dispute – as we have seen with the impact of China’s spat with Australia on the latter’s bulk exports to the Middle Kingdom – and civil disruption can spoil the good news. Citing “an escalation in the security situation at the operations”, at the beginning of July, Rio Tinto declared a force majeure on customer contracts at its Richards Bay Minerals project. At the time of going to press, meanwhile, riots and looting in KwaZuluNatal and Gauteng had resulted in the suspension of transport operations along the NATCOR rail line, representing a substantial blow to South Africa’s embattled economy – although
BULK TERMINALS
Transnet, the state-owned freight and logistics company, said operations at the Durban and Richards Bay ports were being restored, having previously declared force majeure on the line. Despite the violence, some terminals have managed to continue operating. Recently appointed Fiya Nxumalo, operations planning manager at the Richards Bay Coal Terminal) – who takes over the role following the sad death earlier this year of Bulk Terminals International reader Silven Chetty – reports that the terminal has kept operations running.
views on eu’s climate plan
For climate change to be reduced, there needs to be a unified international approach to reduce emissions, no less so in the shipping and port sectors of maritime operations. Shipping is divided. The EU has announced a new climate change plan, “Fit for 55”. This includes shipping to be part of the Emissions Trading Scheme (ETS). The International Chamber of Shipping (ICS) – which, in line with the International Maritime Organization (IMO), wishes to see international agreement rather than regional regulation – was highly critical. Guy Platten, secretary general, ICS says: “Other than as an ideological revenueraising exercise, which will greatly upset the EU’s trading partners, it’s difficult to see what extending the EU ETS to shipping will achieve towards reducing CO2, particularly as the proposal only covers about 7.5% of shipping’s global emissions. This could seriously put back
international | SUMMER 2021
climate negotiations for the remaining 92.5% of shipping emissions.” Danish Shipping thinks differently. Maria Skipper Schwenn, executive director of security, environment and maritime research, says: “As a starting point, it looks very reasonable and we feel that the contributions we, as a sector, have delivered in the preparatory work, have been heard” – and happy that this could pressure IMO into adopting the same approach. Claes Berglund, president of the European Community Shipowners Association, gives cautious support, preferring international agreement, but genuflecting in the direction of the EU: “We recognise that shipping should contribute its fair share to address the climate crisis, at EU level as well.” The port and terminal sector in the EU is broadly in favour. The Federation of European Private Port Operators (FEPORT) welcomes the “Fit for 55” proposals as a necessary step to meet the EU’s enhanced climate targets. Lamia Kerdjoudj-Belkaid, secretary general, FEPORT, underlining the need to support the efforts of port stakeholders to decarbonise the maritime sector, adds a note of caution: “We fully subscribe to the objectives of the Green Deal and EU’s enhanced climate targets. However, it will also be essential to keep in mind that the competitiveness of European ports is also a priority and that the competition with non-EU neighbouring ports is an important issue to be considered when discussing mechanisms that may impact imports and exports transported via EU ports”
