Like no other time in recent history, the current global financial situation has reinforced the primary importance of stability. The ability of ocean carriers to generate sustainable rates in an overtonnaged market environment is critical in 2010.
For the maritime industry, this is a challenge that, simply, must be met. As the economic recovery gains traction, there will be a growing demand for fossil fuels, which is certain to increase costs.
Transportation service providers must be vigilant in the effort to recoup this variable cost in partnership with the client. As we find more cost-effective approaches to drive business, maintaining a focus and delivering superior customer service become more and more crucial.
Most companies’ growth in earnings has been generated from cost cutting rather than top line sales growth. As we head into 2010, companies must face the challenge of managing a slower growth rate than in years past.
The ocean carrier industry, working in tandem with the International Maritime Organization has also been focusing on efforts to develop an IMO standard that would regulate carbon dioxide emissions of ships.
While ocean transport is widely recognized as the most carbon-efficient mode of cargo transport, our industry understands the obligation to do its part to reduce greenhouse gas emissions. In the spring, the Marine Environmental Protection Committee of the IMO will meet to evaluate several proposals to reduce the carbon dioxide emissions of ships.
Regardless of which proposal is ultimately adopted, carriers will be challenged to innovate to achieve the necessary carbon dioxide reductions. In conjunction with this, it is imperative that ocean carriers continue with the pursuit of their slow steaming efforts in a unified approach to conserving energy resources.
These endeavors mark a fundamental shift in how the maritime business operates, but they are environmental preservation initiatives, which our industry should undertake gladly in 2010 and beyond.