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MARINE | Political In association with Ed Broking
Wind of change Stephen Barton, Chairman – Marine, Ed Broking, asks what the change of administration in the US means for the international shipping industry Last year was one of unprecedented challenges in shipping as Covid-19 had a catastrophic impact in some sectors and a negative effect on all. So, does a change of administration in the US hold out any hope of better times ahead in shipping? Only time will tell but the initial signs might give cause for optimism, both domestically and internationally. It would be wrong to imply that the outgoing President did nothing for shipping, particularly in port development grants and domestic ship-building. But the overwhelming impact on the industry was the ongoing trade dispute between the US and China. There are two sides to every story, but the Trump administration took centre stage. Statistics show a very significant drop in volumes of goods exported from the US to China and this will have directly affected shipowners around the world, particularly in the shadow of the Covid-19 pandemic and a failure to compensate for its impact with increased volumes from other trading partners. One of the Trump administration’s earliest acts was to pull out of the Trans-Pacific Partnership (TPP). This decision will be impossible to reverse because the TPP has now been overtaken by a new agreement – The Regional Comprehensive Economic Partnership. This, with China’s involvement, creates the largest trading bloc in the world. It does seem however that the Biden approach will be less protectionist and more focused on “free” trade. As we move towards a post-Covid-19 environment this must be seen as positive.
SHIPPING DIVIDEND There are also real prospects of a domestic shipping The Marine Insurer Nordic & Asia Special Edition | April 2021
dividend arising from President Biden’s well-known credentials on environmental matters. One of his first acts as President was to reverse his predecessor’s decision to leave the Paris Accord on Climate Change, which the US has now re-joined. President Biden has previously articulated the role shipping has to play in his decarbonisation plan during his election campaign. Membership of the UN’s International Maritime Organisation (IMO) as a Category ‘A’ Council Member gives the US a leadership opportunity that it has not really been exercising with any real authority. This is expected to change, particularly as the IMO moves towards its stated goal of reducing emissions by 50% by 2050, allied with President Biden’s stated interest in shipping becoming greener.
WHAT COULD THIS MEAN IN REALITY? > Support for cleaner fuels such as Liquefied Natural Gas (LNG) and new methods of propulsion such as using fuel-cell technology to develop electrically powered ships (using hydrogen, ammonia for example); > Continued support for the development of the existing ports with a much greater emphasis on sustainability and accountability for measuring emissions; > Improving the immediate environment around ports; and, > Growing dependence on electrical power in all port activities. The potentially big dividend for shipping, particularly but
