ICS LEADERSHIP INSIGHTS - 50 years of sea changes Esben Poulsson reflects on a life in shipping
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Issue no: 03 | June 2021
ICS LEADERSHIP
INSIGHTS
Monthly insights from the International Chamber of Shipping’s global leadership community
50 years of
sea changes
Esben Poulsson reflects
on a life in shipping
In this issue…
2-3 Decision maker 6 Analysis 8-9 Global agenda
Esben Poulsson’s 50-year President Biden’s Jobs Plan Its port and shipping business
passion for the sea tops a list of global shoreside sector boost Singapore but
infrastructure projects COVID hits its labour supply
4 ICS in action
Round up of ICS news 7 Strategic thinking 10 Facts & figures
Strategies behind the current Clean technology will put
5 News focus drive for infrastructure pressure on supplies of critical
Shipping will miss zero-emission spending rely on long-term elements; Quick recovery from
target; IMO urges jabs for crews assumptions COVID recession
DECISION MAKER: ESBEN POULSSON
Esben Poulsson blends East
and West in Singapore
Multi-tasking ICS Esben Poulsson remembers the exact date his large Singapore-flagged container vessels for
maritime career began – 31 August, 1971 – and the Greek Lemos shipping family.
Chairman’s passion for he has a stamp in his passport to prove it. Twice this portfolio of positions has led to
the sea has moulded Although he had some casual shipping- potential conflicts of interest. In one case, he
related work before that, including three realised during a board meeting that the com-
his leadership style
months at sea, aged 17, it is the moment when pany was planning to explore an acquisition
for 50 years he arrived in Hong Kong that day that he that another of his clients was also consider-
counts as the start of his life’s voyage. Now, ing. “I immediately put my hand up and said,
as he approaches the 50th anniversary of that ‘I cannot be involved in this discussion’. Any
momentous arrival, he is still as passionate suggestion that you could be conflicted is not
about shipping as he was then. worth it”, he said.
“That’s because of my love of the sea”,
he told ICS Leadership Insights. “I am never Go global, go local
Front cover: Esben Poulsson happier than when I’m at sea.” And passion is As a Scandinavian living in Asia, he is aware
at sea on Thelassa Avra essential in shipping, he believes. “You can’t of the different management styles in both
(image: Esben Poulsson) teach it but if you don’t have it, find something regions. European management, “is very
else to do”. He has no plans to find something consensual [but] it is much more top-down in
Below: Thelassa Helas, else to do and the long list of senior roles he Asia”, he said. To reconcile these very different
the first in a series of ten holds is testament to that. approaches, Poulsson has adopted a slogan
13,806TEU Enesel container They have accumulated by choice and that he attributes to HSBC: ‘go global, go local’.
ships flagged and managed chance. Since 2010, his main role has been “I try to live by that. It’s not for me to impose
in Singapore. (image: Enesel) Chairman of Enesel, which manages a fleet of [changes] when I’m in a different country.”
ESBEN POULSSON’S CURRENT ROLES
Chairman, International Chamber of Shipping; UK
Chairman, Enesel; Singapore
Chairman, Cambiaso Risso Asia; Singapore
Board Member, Nordic Shipholding; Denmark
Non Executive Chairman, Tamar Ship Management; Hong Kong
Board Member, Finnlines; Finland
Board Member, BW Epic Kosan Gas; Singapore
Board Member, Maritime and Port Authority of Singapore; Singapore
Senior Advisor to the Chairman, X-Press Feeders; Singapore
Advisory Panel Member, Singapore Maritime Foundation; Singapore
Vice President, The Mission to Seafarers; UK
2 June 2021 | www.ics-shipping.org
Decision maker
he said has more than 1,000 staff in 10 offices
worldwide to represent 290 airlines. By con-
trast, ICS has 26 staff in one office, as well as
one staff member in Hong Kong and another in
Australia, and represents 80% of the world fleet.
Yet “shipping is a very individualistic type
of business”, he said, and some shipowners
do not appreciate the benefits that industry
groups bring them through the work they do.
Without them, “I suggest [the situations they
address] would be much, much worse.”
IMO faces a similar issue, he suggested.
Many business people “don’t really understand
how it actually works”. He knows how they feel:
“Before I got involved in association work, I
could never really understand it”, he admitted.
A turning point for him in appreciating IMO’s
practical impact came from the long debate
Growing use of 3D printing could have a long-term impact on container about when the 0.5% sulphur cap would be
volumes, Esben Poulsson predicts (image: Jonathan Juursema/Wikimedia) introduced – 2020 or 2025 – which ended in
October 2016 when MEPC 70 agreed it should
He described his own approach to manage- be 1 January 2020. “The industry would proba-
ment as “more carrot than stick” and recalled a bly have preferred 2025 … [but] we got a deci-
situation where he had applied that to an Asian sion and a date; at least it was a done deal.”
[COVID] has client’s hiring policy during a period of growth.
At the time, it offered indentures to aspir-
Now, the emissions focus has moved on, to
CO2 emissions, and perhaps the most impor-
given rise to a ing new staff, providing training in return for tant contribution ICS has made to IMO during
a commitment to stay with the company for a his time in office has been its proposal for a
greater level of period of time afterwards. “But I wasn’t inter- levy on bunkers to raise funds for R&D into the
cooperation than I ested in tying someone down for five years, next step in the ship fuelling developments:
even though we had financially supported zero-carbon technologies.
have ever seen them.” Instead, at the end of their training, they
were offered a job if they were good enough The next 50 years
“and they were free to go if they didn’t like it.” Those will usher in a very different way of
He wanted, he said, “a positive and pleasant designing ships and operating routines from
atmosphere of mutual respect”. those of the past 50 years and Poulsson pre-
He has seen a degree of mutual respect dicted that the next five decades will be trans-
emerge across the industry as a result of formative. New fuels and their infrastructure,
the COVID pandemic as the industry faces new technology and regulatory developments
up to challenges such as crew changes and “will create massive changes”, he said.
vaccine distribution. For example, the ICS – a Change will not be limited to ships them-
shipowners organisation – has been cooper- selves. Take 3D printing, for example: although
ating with the ITF – a trade union body – in the container sector is currently booming, “on
an “extremely constructive two-way dialogue a longer-term basis, you have to question what
[about] what we can do together. [COVID] has its effect will be”, he suggested.
given rise to a greater level of cooperation Those forecasts reflect the broad view of
than I have ever seen”, he said. the industry that his experiences have provided
More broadly, groups such as BIMCO, and he brings that approach to his ICS role.
Intertanko, Intercargo and the World Ship- “As chairman, it is not my role to delve into the
ping Council are holding regular meetings on nitty-gritty”, he said. He does, however, provide
delayed crew changes and what he sees as the a sounding board for shipowners and member
biggest concern currently facing the industry: associations – he has visited most of them dur-
“seafarers being treated as they are supposed ing his terms of office – and offers a powerful
to be treated … and governments stepping up voice beyond the industry, speaking regularly to
and doing what they’re meant to be doing”. the media and working with the ICS secretariat
to prepare articles and commentaries.
ICS priority issues When he is quoted in the media, he is often
Poulsson paid tribute to the ICS secretariat, described as an ‘elder statesman’, he said but
which he said is achieving a great deal on when he began, “I was always the youngest
that and other priority issues – such as new in the room. What happened?” His passion
fuels and emissions, piracy, cyber security and remains the same, however, and it is a two-
more; “each deserves our best attention”, he way experience: “young people forget that
said. And he compared ICS with an equivalent people like me can learn just as much from
organisation for the airline industry, IATA, which them as they think they can learn from me.”
3 June 2021 | www.ics-shipping.org
ICS in action
Seafarers after receiving their
Emergency COVID-19 vaccine in Norfolk,
Virginia, US, in May (image:
seafarer Barbara (Bobbi) Shipley)
relief fund cines by sea freight: “Seafar-
ers must be prioritised for the
launched vaccine to avoid the types
of distribution delays we’ve
The Seafarers Interna- already witnessed.”
tional Relief Fund (SIRF) The document can be used
has received more than by shipping companies and
US$300,000 in donations their agents and representa-
two weeks after its launch tives, including crew agencies,
on 5 May by leading
seafarer welfare charities
ICS’ Vaccination Roadmap to maritime administrations and
national health authorities, in
who set a a target goal of hasten global seafarer jabs liaison with other authorities
US$1 million. (such as immigration, border
Kitack Lim, Secre- As the US, Netherlands and non-native crew. The Nether- control and civil aviation) and
tary-General, IMO, wel- other nations begin to roll out lands will launch its own vac- seafarers, during the planning
comed the fund saying: “I vaccines to all seafarers, ICS cination programme mid-June and rollout stages of the vacci-
am pleased to learn has published a Vaccination for all seafarers, regardless nation programme.
of the establishment of Roadmap framework, along- of nationality, flying under the The roadmap allows govern-
this industry-led emer- side other major maritime Dutch flag or aboard Dutch- ments, regions and companies
gency fund to assist sea- NGOs, to help more countries owned or managed vessels. responsible for port authorities
farers and their families establish crew vaccination ICS Secretary General Guy to expedite putting procedures
during these unprece- hubs across the world. Platten stressed the essential in place to create vaccine hubs,
dented times”. At the time of writing, 21 role seafarers have played once they are ready to begin
ICS helped coordinate US states have begun vac- during the pandemic, noting vaccine rollout to seafarers.
and bring together the cination programmes for they will soon deliver vac- ● See also News Focus, p5
leading international
seafarer welfare organ-
isations, The Seafarers’
Charity (formerly Seafar- Alang ship recycling yards hit hard by COVID-19
ers UK) supported by The
Mission to Seafarers, The pandemic is taking a toll on shipbreaking in amid a nation-wide shortage and the impact of
ISWAN, Sailors’ Society, India, said speakers at an ICS Leadership Insights crew change bans.
Stella Maris, and other Live event about ship recycling on 12 May. “The number of ships coming to Alang has
charities – that are lead- Anil Sharma, Founder and CEO, Global fallen due to crew change bans in Dubai and
ing this united appeal to Marketing Systems said crew change bans Singapore ports – two locations that send the
the shipping industry to have meant his firm has “really struggled…[to most ships to India for recycling,” he said.
deliver urgent support get] ships from A to B”. Kalthia added this has seen business in
to seafarers and their Chintan Kalthia, CEO, R.L Kalthia Ship Alang drop below 50% in the last six to eight
families in India, which Breaking, said ship breaking yards in Alang months, with ships for recycling going instead
has been identified as an are facing: a shortage of workers after many to Pakistan and Bangladesh.
initial focus. returned home in the first wave, government Watch the event here and find future ICS
Esben Poulsson, Chair redirecting oxygen from yards to hospitals Leadership Insights Live here.
of the International Cham-
ber of Shipping, said: “I
am calling on shipowners
and all those engaged Ships to sound horns for seafarers on 25 June
in the maritime sector
to support this initiative ICS, along with industry and tise seafarers for vaccinations. Seafarers and #FairFuture-
and consider increas- social partners, are encour- Currently more than half of 4Seafarers.
ing your contribution to aging ships in ports around the international seafarer Guy Platten, ICS Secretary
seafarer charities at this the world to sound their workforce is from develop- General, said: “Unfortunately,
time. When faced with horns at 12 noon local time ing nations that have limited with the new variants and
significant challenges on 25 June, in honour of the vaccine supplies. the dreadful outbreaks in
the maritime community International Maritime Organi- Companies taking part are India, seafarers are once
always come together – zation’s ‘Day of the Seafarer’. encouraged to share vid- again being forgotten. We are
this is what we do.” The #ShoutOutForSea- eos of crews sounding their calling for ships at port across
To learn more or make farers campaign will call on ship’s horns and share on the globe to sound their horns
a donation click here. governments to stop reimpos- social media on 25 June with on 25 of June to ensure that
ing travel bans and to priori- the hashtags #ShoutOutFor- seafarers voices are heard.”
4 June 2021 | www.ics-shipping.org
News focus
Shipping will miss 2050 emission goal
Shipping will be “one of the few transport
modes that does not achieve zero emis-
sions by 2050”, according to a report
published by the International Energy
Agency (IEA) on 18 May.
Titled Net Zero by 2050 – A
Roadmap for the Global Energy Sector,
the 222-page study urges an immediate
mass roll out of all available clean and
efficient technologies and a major push
to accelerate innovation. It stresses
there can be no more investment in
fossil fuels “from today”.
This transformation will be difficult
for the marine sector “due to a lack of
available low-carbon options on the mar- Global transport energy consumption trends to 2050 (source: IEA)
ket and the long lifetime of vessels”, the
report says. But it predicts a significant term measures such as slow steaming Meanwhile, ammonia and hydrogen
decrease in CO2 emissions from around and wind-assistance. Longer-term, fuel could be produced in industrial hubs
830M tonnes in 2020 to 120M tonnes in advanced biofuels and hydrogen-based located at the world’s 20 largest ports to
2050 – a reduction of 6% annually. IMO’s fuels, such as ammonia, will increas- supply both shipping and chemical and
GHG reduction target is to halve emis- ingly displace oil until, by 2050, ammo- refining industries.
sions by 2050, compared with 2008. nia and hydrogen are likely to provide ● IMO’s Marine Environment Protection
“In shipping, energy efficiency 60% of shipping’s energy consumption. Committee will discuss a proposal from
improvements [will] significantly Sustainable biofuels will add a further ICS for a fund to develop decarbonisa-
reduce energy needs (especially up 20%, while “electricity plays a very tion technologies during its 76th meet-
to 2030)”, it predicts, thanks to short- minor role”, it says. ing, 16-20 June.
IMO urges jabs for seafarers as vaccinations start
Vaccinating seafarers should Royal Belgian Shipowners’ The Netherlands ports in 21 US states, accord-
be a priority, IMO Secre- Association, said that the From mid-June, The Nether- ing to the North American
tary-General Kitack Lim told single-dose Johnson & John- lands will offer the Johnson Maritime Ministry Associa-
member states, urging them son/Janssen vaccine will be & Johnson/Janssen vaccine tion (NAMMA), which has
“to enable and accelerate the offered in Antwerp and Zee- to all seafarers “working compiled information about
vaccination of seafarers”. brugge to Belgian nationals on seagoing vessels flying each port’s provider. NAMMA
Although 58 IMO member on ships of any flag. They the Dutch flag or managed Executive Director Dr Jason
states have declared seafarers will not be offered to other from the Netherlands” in Zuidema said in a statement
to be key workers, very few maritime personnel. a programme coordinated that requirements for receiv-
have so far established vacci- by the Royal Association of ing vaccines differ from port
nation programmes for them. Canada Netherlands Shipowners to port. In Florida, vaccines
They include Belgium, Can- Foreign seafarers will be the (KVNR). At the time of writing, are available to anyone in
ada, The Netherlands and the focus of Canada’s scheme, KVNR could not say whether the state “for the purpose of
US, while others are under- said Lanna Hodgson, Secre- the scheme will also apply providing goods or services
stood to be following suit. tary General of the Interna- to Netherlands Antilles ships for the benefit of residents
tional Shipowners Alliance of and managers. and visitors”.
Belgium Canada. Domestic seafarers About 49,000 doses Some countries are not
In April, Belgium was the first will be covered by the joint will be administered over planning to vaccinate seafar-
European nation to announce national and provincial vac- the next few months at the ers, such as the UK. Speaking
a scheme, with the first vacci- cination programme. At the country’s larger ports and at during a webinar on 11 May,
nations for Belgian seafarers time of writing, details of the Schiphol Amsterdam Airport. UK Shipping Minister, Robert
due to start on 26 May, as seafarer scheme were still to Courts was asked for his view
this issue of ICS Leadership be finalised but she expected US on vaccines for seafarers. In
Insights was published. vaccinations to be offered As this issue was published, reply, he referred only to the
Wilfried Lemmens, through existing vaccination vaccinations for foreign sea- UK government’s programme
Managing Director of the centres in all Canadian ports. farers were available at 40 to vaccinate its citizens.
5 June 2021 | www.ics-shipping.org
Analysis
COVID recovery prompts infrastructure plans
President Biden’s American Jobs Plan
has shone a spotlight on the potential
impact that infrastructure spending can
have on a nation’s economy, especially in
difficult times. A White House summary
says the plan is an investment “that will
create millions of good jobs, rebuild our
country’s infrastructure, and position the
United States to out-compete China”.
Chris Connor, President and CEO of the
American Association of Port Authorities,
stressed the need for the investment.
Reflecting on the shipping delays that have
plagued US ports, he told ICS Leadership
Insights: “the long lack of investment in our
national freight network is playing out in
real time in front of us today”.
President Biden plans to tackle this
with an additional US$17 billion for inland
waterways, coastal ports, land ports of
entry, and ferries, coupled with a Healthy
Ports programme.
President Biden’s American Jobs Plan promises US$17 billion will be spent on
Investing out of a crisis maritime infrastructure (image: The White House)
Many other regions are also planning infra-
structure investments and Dr Patrick Ver- Australian vulnerabilities
hoeven, Managing Director for Policy and On the other side of the globe, the
Strategy at the International Association of Australian government published an
Ports & Harbors, sees this as a sign of the Infrastructure Priority List in February
times. “In periods of crisis, governments
In periods of crisis, followed in March by an interim report on
tend to turn to infrastructure as a good governments tend to turn Vulnerable Supply Chains. Joshua Apple-
investment. We saw that in the 1930s”, he ton, communications director at Ports
reminded ICS Leadership Insights. to infrastructure Australia, told ICS Leadership Insights that
But there are important differences Dr Patrick Verhoeven “investment in the Australian ports indus-
between the various schemes, he said. try remains constant and strong, whether
“In some countries, the government is that be from a state or private level”.
providing funding … and in others the He also welcomed a Supply Chain Resil-
government says this needs to come ience Initiative (SCRI) that was announced
from the private sector”. in October and backed by an Office of
An argument can be made for both In the UK, where ports are not state- Supply Chain Resilience, announced in the
models, he said. “On one hand, it’s stra- owned, the government’s National government’s budget on 11 May.
tegic [and] you could argue it’s wise for a Infrastructure Strategy, published in “Ports Australia hopes the considera-
government to invest in it. On the other November 2020 sets out how the tions we called for in our submission [to
hand, it’s commercial so, from that point government will support private sector the Vulnerable Supply Chains report] are
of view, if a government starts funding, it investment and mentions a £200 mil- realised by this new office”, Appleton said.
distorts competition”. lion (US$280 million) Port Infrastructure That submission included two proposals:
Europe, for example, has rules about Fund “to ensure that ports across the one was to establish a national committee
state aid but they do not prevent invest- UK have the necessary infrastructure to monitor developing supply chain risks
ment in supporting infrastructure, so in in place for freight to continue to flow and the other was to consider implement-
late April the European Sea Ports Organ- smoothly … post-BREXIT”. ing a trade community system to improve
isation (ESPO) welcomed the European Mark Simmonds, Director of Policy risk identification and planning.
parliament’s adoption of a report by its & External Affairs at the British Ports Underlying the supply chain initiative
Committee on Transport and Tourism that Association, is less upbeat about this is the same COVID-recovery motivation
proposed including shipping in the EU’s funding. It is specifically for building identified by Verhoeven. As the intro-
emission trading scheme. The revenues infrastructure needed for new border duction to the SCRI online consultation
raised by it “must go towards investments checks “and that was not the sort of noted, the experience “taught us that we
to decarbonise the maritime sector”, with infrastructure we want to see”, he said, need to be on the front foot and the SCRI
a substantial part earmarked for “ded- because until now, “the direction of will help to ensure Australia has access
icated investments in alternative fuels travel has been towards removing to essential goods and services in the
infrastructure”, ESPO said in its response. non-tariff trade barriers”. face of external shocks”.
6 June 2021 | www.ics-shipping.org
Strategic thinking
Fuel strategy is
vital for ports
Planning ahead for future fuel require-
ments presents a challenge for port
infrastructure planners and the Chief
Executive of Singapore’s Maritime and
Port Authority (MPA), Quah Ley Hoon,
recognises that decisions about fuel
supply infrastructure cannot be made
in isolation. “What will the future ship
be like? This can affect the type of
bunkering we put in place”, she said
during a briefing ahead of April’s Sin-
gapore Maritime Week. The port of Melbourne has a development strategy extending to 2050
For Singapore – the world’s larg- (image: Port of Melbourne)
est bunkering location – at least two
projects are underway to prepare for
future fuels, both of them focusing on
ammonia. ABS, Singapore’s Nanyang
Culture changes; connectivity
Technological University and the
Ammonia Safety and Training Insti-
drive long-term port strategy
tute are leading one study, looking
at supply, bunkering and safety chal- Population shifts, cargo growth, e-com- have suggested we should have a
lenges, while another study is focused merce and online shopping are all stra- dialogue about this”, he said. In practice
on ship-to-ship bunkering of ‘green’ tegic drivers for investment in America’s it could only happen at the level of an
ammonia at the Port of Singapore, supply chains, believes Chris Connor, individual port and shipping operator, he
involving Sumitomo Corp, AP Møller- President and CEO of the American believes, because of the different owner-
Maersk and others. Association of Port Authorities (AAPA). ship structures and commercial drivers in
Dr Patrick Verhoeven, Managing He made his remarks to the US Sen- the shipping and ports sectors.
Director for Policy and Strategy at ate Subcommittee on Surface Trans- He also pointed to the different
the International Association of Ports portation, Maritime, Freight, and Ports timescales for ship and port investments:
& Harbors, stressed the need for when it met on 11 May to look at ‘Freight while a ship might be designed for an
“joined-up thinking with the shipping Mobility: Strengthening America’s Supply economic life of 20-25 years, port infra-
lines” to understand what fuels they Chains and Competitiveness’. structure is expected to be functional for
will want to use. “And you need the Although that hearing was not con- perhaps 50 years.
fuel providers [to advise on] what is nected with President Biden’s American Australia’s Port of Melbourne Author-
going to be available, in what amounts Jobs Plan, it “took on a whole new mean- ity recognises the long-term nature of
and to what quality.” ing” because of their shared emphasis port investments. Its 2050 Port Devel-
Green fuel production relies on on infrastructure planning, Connor told opment Strategy lists the factors it took
renewable electricity to avoid CO2 ICS Leadersip Insights, and he believes into account when developing the plan,
emissions during its manufacture his proposed US$26.5 billion list of such as the types and amount of cargo it
and Mark Simmonds, Director of investments in ports by 2028 as part of expects in the years ahead; vessel num-
Policy & External Affairs at the British “a robust national freight strategy” was bers, types and sizes; landside transport,
Ports Association, anticipates that received positively. AAPA had previously with a focus on rail, and the facilities, ser-
much of the green fuel that will be detailed some of this investment in 2018. vices and technology the port will need
needed in the future will be produced In the UK, there is a similar demand. to make its operations safe and efficient
close to where it is used. Coupled Mark Simmonds, Director of Policy & for the long term.
with likely demands for more shore External Affairs at the British Ports Asso- But because of the timeframe
power connections and battery-charg- ciation, pinpointed what he sees as a lack involved, its framework “also seeks to
ing installations, “we are fairly con- of a “strategic approach from government provide adaptability and responsiveness
fident that in [any] decarbonisation to port connectivity” which he said is to changing needs over time”.
scenario, there’s going to be a need essential if ports are to be competitive. Wherever in the world infrastructure
for a lot more power in ports,” he told Long-term shore-side infrastructure plan- investment takes place, Connor’s closing
ICS Leadership Insights. ning would benefit from more coordination remarks to the subcommittee underline
This will need considerably more between the shipping and ports sectors, the importance of successful strategy:
substantial power supply infrastruc- believes Dr Patrick Verhoeven, Managing “Investments in our multimodal and port
ture and, from a UK point of view, “I Director for Policy and Strategy at the Inter- infrastructure is critical to meeting the
am not sure the government has got national Association of Ports & Harbors. current and growing needs of our supply
its head around that and what invest- There is little interaction between chains. … Robust, thoughtful investment
ment will be needed”, he said. shipowners and port planners, although is key to ensuring that we are successful
“the OECD and some other institutions in accomplishing this goal.”
7 June 2021 | www.ics-shipping.org
Global agenda
Singapore’s combination of shipping operations and business services makes it a global leader, says one analysis (image: PSA)
Singapore’s shipping sector has global
status but faces COVID challenges
Automation is a key Singapore seems to have everything: a government and has developed “a mari-
huge port, the world’s biggest bunkering time eco-system with a wide spectrum of
goal as Singapore operations, shipyards and an impressive services”, she said.
looks to streamline set of shipping services, including law “I prefer to view them as complemen-
firms, brokers, banks and ship managers. tary maritime clusters [with] possibilities
operations for ship It is a combination that has earned it of joint development and implementation
operators the top spot in all seven editions of the of new internationals standards in areas
annual International Shipping Centre such as electronic shipping and trade
Development Index, prepared by the documents”, she said.
Baltic Exchange and China’s Xinhua state That suggestion stems from one
news agency, which takes account of all of SSA’s current priorities. “The SSA
the services available in the main shipping has been promoting the adoption and
centres. London has been in second or acceptance of electronic bills of lading
third place each year; this year’s index is (eBLs). We see huge potential to sig-
due to be published in July. nificantly reduce administrative costs
But Caroline Yang, President of the associated with printing, delivering and
Singapore Shipping Association (SSA), authenticating printed copies through
does not see Singapore and London the supply chain”, she explained.
as competitors. They each have their Her enthusiasm is shared by Singa-
own strengths, she told ICS Leadership pore’s government, which passed the
Insights: London hosts many interna- Electronic Transactions (Amendment)
tional shipping bodies and is strong in Bill in February to recognise eBLs as
shipping services, while Singapore is equivalent to their paper versions, mak-
strategically located, has a pro-business ing Singapore the second country to
8 June 2021 | www.ics-shipping.org
Global agenda
adopt the United Nations Commission on
International Trade Law’s Model Law on
Electronic Transferable Records.
Speaking in April during Singapore
Maritime Week (SMW), organised by the
Maritime and Port Authority of Singapore
(MPA), Minister for Transport Ong Ye Kung
launched the second phase of MPA’s
digitalPORT@SG, which began in 2019 as
a one-stop clearance platform for all ves-
sel-related transactions. This next stage
“will optimise port resources and enhance
efficiency through artificial intelligence by
facilitating just-in-time operations”.
In the same vein, in February Sin-
gapore’s port operator PSA and the
Container Depot and Logistics Associ-
ation launched SmartBooking, which it
describes as “an integrated one-stop
booking platform for container depots,
terminals, hauliers and logistics facilities
across Singapore”. It is part of Singa- Singapore’s shipyards rely on overseas workers but COVID-related travel restrictions
pore’s National Artificial Intelligence have created a shortage of skilled labour (image: Ying Lim / Shutterstock.com)
Strategy that its government expects to
“transform our economy [by] fundamen- Service sector
tally rethinking business models”. Singapore’s service sector is large: an
online business directory lists 72 compa-
COVID-19’s impact The shortage of skilled nies offering ship management services
COVID-19 has had a significant impact of various types and an award presented
on Singapore’s maritime activities. On workers has impacted during this year’s Singapore International
3 April 2020, Prime Minister Lee Hsien Maritime Awards (IMA) – which formed part
Loong addressed the nation as cases some of our projects of SMW – recognised their importance.
began to rise and announced the closure Although many SMW sessions took
of most workplaces for a short period, place online, some in-person events
including shipyards. were held, including those awards,
Many foreign workers went home during which the ‘Maritime Service Pro-
and are now having difficulties returning, Sri Lanka, although it will consider crew vider’ award went to Singapore-based
because of border controls in countries changes under certain criteria. On 7 May, Synergy Group.
such as India and Bangladesh. This has the 7th edition of the Singapore Crew In his acceptance remarks, its
had a significant effect in the ship repair Change Guidebook was published with Founder and CEO, Capt Rajesh Unni,
sector, as Sembcorp Marine described references to the latest development. It referred to what he called “the Singa-
in its Q1 report, issued on 3 May. was first issued on 1 June 2020 to pro- pore shipping ecosystem” and recalled
“The shortage of skilled workers has vide “a safe and controlled framework why he chose to set up his company in
impacted the execution and scheduled to allow for crew change in Singapore, Singapore in 2006: “Singapore was the
completion of some of our projects”, it when ports around the world stopped perfect location due to the high quality
said. Now, as the Singapore economy crew changes”, Yang said. of education and maritime training, plus
improves, this “has led to increased In late August 2020, MPA chief exec- its world-renowned port and shipyard
competition for foreign labour already utive Quah Ley Hoon proposed a fund facilities”, he said.
here [and] the Group is actively sourcing – the SG Star Fund – “to establish safe It is a sector that SSA encourages,
skilled workers from other countries”. and scalable corridors for crew change especially companies developing inno-
The MPA identified key roles in ship- by ensuring quality checks on quaran- vative concepts. In 2020, the association
ping and aviation that it would prior- tine, medical and swabbing facilities in introduced a new ‘Startup’ membership
itise for vaccinations. On 18 January, crew-supplying countries”, she said. tier for nascent technology services
it announced its Sea-Air Vaccination It has attracted support from many providers and one of its first such mem-
Exercise (SAVE) and promised vaccines industry organisations and port author- bers – ShipsFocus, a digitalisation con-
to port side workers going onboard ves- ities and, at the time of writing in mid- sultancy – won the IMA’s ‘Outstanding
sels and coming into contact with people May, has attracted a total of Sing$1.6 Maritime R&D and Technology’ award.
from outside Singapore. million (US$ 1.2 million). It is now over- Yang explained SSA’s encouragement
As part of the country’s national seen by a taskforce and the CrewSafe of such companies, telling ICS Leader-
efforts to arrest the sudden spike of audit programme. The taskforce has ship Insights that the association “rec-
COVID-19 cases, the MPA issued a circu- also been working to have the authori- ognises the importance of nurturing a
lar on 6 May prohibiting crew changes ties help procure vaccines for seafarers, vibrant ecosystem of maritime innovation
for those with recent travel history to which Singapore declared to be key- that will … enhance Singapore as a lead-
Bangladesh, India, Nepal, Pakistan and workers last December. ing international maritime centre”.
9 June 2021 | www.ics-shipping.org
Facts & figures
Clean tech lifts rare mineral demand
Clean energy technologies require
considerably more mineral inputs than
those that run on fossil fuels, according
to a report issued by the International
Energy Agency (IEA) in May.
In a supporting commentary, IEA
executive director Dr Fatih Birol said: “a
typical electric car requires six times the
mineral inputs of a conventional car, and
an offshore wind plant requires 13 times
more than a similarly sized gas-fired
power plant”. These minerals include
critical elements, such as copper, lithium,
nickel, cobalt and rare earths. Minerals used in selected clean energy technologies (source: IEA)
He warned that “today’s supply and
investment plans for many critical miner- come from a small number of producers. there are sizeable opportunities for those
als fall well short of what is needed” and But despite these concerns, Birol said who can produce minerals in a sustaina-
he noted that many of these minerals there was no shortage of resources “and ble and responsible manner”.
Global trade recovers sharply from COVID-19 recession
Global trade is recovering higher than pre-crisis levels.
faster from the COVID-inspired By contrast, it took 13 quar-
recession than it did in 2009, ters for global trade to recover
following the global financial after the 2015 recession and
crisis, or 2015, after structural nine quarters to bounce back
changes in East Asian econ- from the 2009 recession.
omies and declines in com- Looking ahead, the report
modity prices, according to predicts that the recovery
UNCTAD’s latest Global Trade will be uneven. “The econ-
Update, published on 19 May. omies of China and the US
In a statement supporting are expected to be the main
the analysis, UNCTAD Econo- drivers of global growth during
mist Alessandro Nicita said that 2021” while “COVID-19 is
by the fifth quarter after the expected to continue disrupt-
Cumulative change in global trade from the start of each start of the current recession ing the economies and trade
recession (source: UNCTAD, based on national statistics) – Q1 2021 – global trade was of many developing countries”.
Contact us Design and layout
International Chamber of Shipping Phil McAllister Design
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( + 44 20 7090 1460 ( +44 (0) 1273 737481
ICS is the principal international trade info@ics-shipping.org
association for merchant shipowners www.ics-shipping.org Press and Communications
and operators, representing all sectors Duncan Bray,
and trades and over 80% of the world ICS contacts Woodrow Communications
merchant fleet. Tanya Blake, ( +44(0) 797 222 4445
ICS Communications Manager
For more ICS contacts:
tanya.blake@ics-shipping.org Sales
www.ics-shipping.org/contact-us/
( +44 (0) 7498 871353 Richard Emsley
richard.emsley@ics-shipping.org
Paul Gunton, ICS Newsletter Editor ( +44(0) 7730 289 459
paul.gunton@ics-shipping.org
( +44 (0) 7776 441192
Disclaimer: Whilst every effort has been made to ensure the quality and accuracy of the information contained in this newsletter at the time of going to press, the International Chamber of Shipping, its affiliates and any person,
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