High Shipping Costs Are Here to Stay, Says Bloomberg
By Henry Ren (Bloomberg) Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers....
In the wake of the forthcoming legislation on ballast water, the UK P&I club has published an updated report highlighting a number of key issues that need to be addressed before the Ballast Water Convention countdown starts.
The UK P&I club is one of the largest mutual marine protection and indemnity organisations with over 200 million tonnes of owned and chartered ships insured. For this reason, it has a keen interest in assessing how the changes and challenges of the industry will shape the market in years to come.
The Ballast Water Convention, with Germany as its latest member, is now very close to fulfilling the minimum ratification requirements: It must be ratified by countries representing a total minimum global tonnage of 35%, after which point the Convention comes into force 12 months later.
“There are many stages to compliance and shipowners are urged to start familiarising themselves with the requirements of the Convention if they have yet to do so,” Tan writes.
“The cost of compliance is very high and the necessary finance will therefore need to be organised. A ballast water treatment system can cost from half a million to four million dollars. In addition to the cost of the actual system, there will also be ancillary costs such as the cost of developing a ballast water management plan, drydocking cost and installation cost,” she continued.
The update breaks the steps down towards compliance in the following ways:
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