Byline: Nazir Ahmed Shaikh
Shipping as one of the world's most global businesses bodes well at the zenith of world monetary movement. Transportation is viewed as the foundation of globalization and universal exchange, as 90% of the world exchange is helped through boats. Shipping is fundamental to the best possible operation of any nation's economy and a crucial piece of a countries transport infrastructure.
Today, the shipping industry is still facing a hard period due to macro economic conditions. Most of the shipping entities are struggling to survive these difficult times. There are clear signs of economic recovery in the other sector but on contrary maritime industry has not shown any such indication of recovery form effects of havoc created by the latest economic tsunami. Seaborne trade is uncertain and that some challenging lie ahead for shipping and international seaborne trade. These challenges are further compounded by other developments of some regulations concern in the problem of maritime safety and the protection of marine environment.
The global maritime industry has presently been reeling under the impact of the ongoing economic crisis. It is expected to experience a few years of decline due to the overcapacity of ships, and a substantial reduction of shipment, resulting in a drop in tariffs. Overall, the shipping industry is witnessing a new trend of consolidation. Smaller companies, which are asset heavy, are merging with larger organizations in order to survive these difficult times. Observations indicate that the prospect of considerable improvements in trade volumes before the end of this decade.
Maritime regulations challenges
Most companies in this domain are struggling with the problem of positive cash flow. The major challenges facing the shipping industry not only stem from the economic standpoint, but also arise from strict enforcement of emission regulations and increasing safety and security issues. The Rotterdam rules are expected to replace the old Hague, Hague-Visby, and Hamburg rules. These regulations will provide fresh and fair legal rights to shippers and other cargo-interested parties. Shipping lines and terminal operators will be exposed to new legal claims system for damages, stolen goods, and shipment delays.
The criminalization of seafarers is a prominent issue clouding the industry landscape. Seafarers are subjected to severe penalties and punitive charges for acts that have nothing to do with...