By: Jeffery Hewlett, Student, RMU
Introduction
In the current climate, it is very important for us to reflect and highlight how important the maritime industry is for our country and the rest of the world. It is how we make trading essential to day-to-day goods and services possible to keep powering our industries and support employment.
Maritime is everything connected to the sea or waterways throughout the world, especially in relation to navigation, shipping and marine engineering. The industry has a direct impact on much of our everyday lives.
Think about the oil that powers our cars, many of our vehicles, our electronics, the coffee we drink, the foods we eat and the clothes we wear. Most come from overseas and are sent overseas if manufactured in our home country. So then how do we define the maritime industry?
Definition
The Maritime industry is defined as consisting of individual shipping, ports, marine and maritime business services and industries, each of which comprises a diverse array of activities. It includes the construction, repair, and scrapping of vessels, as well as the movement of cargo and other materials. It is that industry in which employees perform duties on board commercial, exploratory, service or other vessels moving on the high seas, inland waterways, Great Lakes, coastal zones, harbours and noncontiguous areas, or on offshore ports, platforms or other similar sites.
If we consider the worldwide maritime industry as a system, we observe that a large number of independent rational agents such as port authorities, shipping service providers, shipping companies, and commodity producers play a role in achieving predominant positions and in increasing market share. The maritime industry can, from this perspective, again be defined as a complex system composed of relatively independent parts that constantly search, learn and adapt to their environment, while their mutual interactions shape obscure but recognizable patterns.
It is in this regard that the International Maritime Organization (IMO), has set aside the 29th day of September every year to celebrate this gallant industry. As the call for a friendly environment is being intensified, the IMO has given this year’s maritime day celebration the theme “New technologies for greener shipping: reflecting the need to support a green transition of the maritime sector into a sustainable future, while leaving no one behind.”.
The theme provides an opportunity to focus on the importance of a sustainable maritime sector and the need to build back better and greener technologies in a post-pandemic world. The IMO actively supports a greener transition of the shipping sector into a sustainable future, and showcases maritime innovation, research and development, and the demonstration and deployment of new technologies.
New technologies for greener shipping
The 2022 theme will allow for a range of activities to delve into specific topics related to the promotion of inclusive innovation and uptake of new technologies to support the needs for a greener transition of the maritime sector, especially in the context of developing countries, and in particular, the small island developing States (SIDS) and least developed countries (LDCs).
The theme is linked to the United Nations Sustainable Development Goals (SDGs), particularly SDGs 13 and 14 on climate action and sustainable use of the oceans, seas and marine resources; SDG 9 on industry, innovation and infrastructure; and SDG 17, which highlights the importance of partnerships and implementation to achieve these goals.
The IMO’s Department of Partnerships and Projects (DPP) was established in 2020 to serve as the gateway for developing partnership opportunities with a wide range of external partners, including the IMO Member States, UN agencies, financial institutions, NGOs, IGOs and the private sector. [Source: IMO website]
Analyzing The Theme
The Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity. The 17 SDGs are integrated—they recognize that action in one area will affect outcomes in others, and that development must balance social, economic and environmental sustainability.
Countries have committed to prioritizing progress for those who are furthest behind. The SDGs are designed to end poverty, hunger, AIDS, and discrimination against women and girls. The creativity, know-how, technology and financial resources from all of society are necessary to achieve the SDGs in every context.
The maritime industry as per its quota to comply with the SDGs, is actively working on the sustainable use of marine resources. Taking a look back into the past, marine vessels ply the oceans with exhaust pipes pointing upwards, shooting tons of thick black gas into the skies.
Looking at present times, that characteristic of marine transport is being faded away. With the emergence of LNG-powered vessels, and a fast-paced development into electric/hybrid vessels, the maritime industry is heading towards the green phase as stipulated by the SDGs. Also, new technologies are emerging aboard the marine craft. Environmentally friendly activities on oceans and other aquatic reserves are being enhanced.
As part of the United Nations family, IMO is actively working towards the 2030 Agenda for Sustainable Development and the associated SDGs. Indeed, most of the elements of the 2030 Agenda will only be realized with a sustainable transport sector supporting world trade and facilitating the global economy. IMO’s Technical Cooperation Committee has formally approved linkages between the Organization’s technical assistance work and the SDGs. While SDG 14 is central to IMO, aspects of the organization’s work can be linked to all individual SDGs.
History of the World Maritime Day Celebration
The United Nations (UN), via the International Maritime Organization (IMO), created World Maritime Day to celebrate the international maritime industry’s contribution towards the world’s economy, especially in shipping. The event’s date varies by year and country but it is always on the last week of September.
Throughout history, people have understood that international regulations that are followed by many countries worldwide could improve marine safety so many treaties have been adopted since the 19th century. Various countries proposed for a permanent international body to be established to promote maritime safety more effectively but it was not until the UN was established that these hopes were realized. An international conference in Geneva in 1948 adopted a convention formally establishing the IMO, a specialized UN agency that develops and maintains a comprehensive regulatory framework for shipping.
The IMO’s original name was the Inter-Governmental Maritime Consultative Organization (IMCO) but the name was changed in 1982 to IMO. The IMO focuses on areas such as safety, environmental concerns, legal matters, technical cooperation, maritime security and the efficiency of shipping.
World Maritime Day was first held on March 17, 1978, to mark the date of the IMO Convention’s entry into force in 1958. At that time, the organization had 21 member states. It now has about 167 member states and three associate members. This membership includes virtually all the nations of the world with an interest in maritime affairs, including those involved in the shipping industry and coastal states with an interest in protecting their maritime environment.
What happens in the maritime industry?
The maritime industry uses computers and cyber-dependent technologies for navigation, communications, ship systems monitoring and control, cargo transfers, access control, passenger and cargo screening, fire detection, financial and other business transactions, and other purposes. Let’s explain this in detail per the above, using an instance of buying an item online; and the said item is currently in China.
After placing your order and making payments (depending on your preference), the item is moved from its location to the port: paper works preceding this. This is the start of the maritime industry.
A set of personnel at the port ensure that the item gets aboard a ship safely to your destination. On the ship, a different set of personnel endure the harsh and terrific environment to maintain and navigate the ship: all to get your item to you.
Finally, after the long voyage, and in your home port, another different set of personnel ensure that the item safely gets off the ship and into a storage facility: booked for your destination.
This is briefly what happens in the maritime industry. Do you now see how important the maritime industry is to you, the nation, and the globe at large?
Importance of the Maritime Industry to the world.
“Maritime transport is the backbone of international trade and the global economy. Around 80 per cent of global trade by volume and over 70 per cent of global trade by value are carried by sea and are handled by ports worldwide.
Global seaborne trade is doing well, supported by the 2017 upswing in the world economy. Expanding at 4 per cent, the fastest growth in five years, global maritime trade gathered momentum and raised sentiment in the shipping industry.” United Nations Conference on Trade and Development (UNCTaD) official website.
The U.S Bureau of Transportation Statistics says that in 2020, waterborne shipping carried more tonnage (nearly 1.5 billion short tons) and value (more than $1.5 trillion) in U.S. trade than any other mode of transportation. Higher-value, light-weight cargo shipped in cargo containers accounts for most of U.S. imports, while lower-value, heavy cargo shipped in bulk contributes heavily to exports.
According to maritimeuk.org: “The UK Maritime Industry facilitates 95% of all UK trade and is larger than both the automotive and aerospace transport industries. The sector not only boasts high productivity and economic impacts but is also a huge contributor to the UK Exchequer.
The Maritime Industry supported a total of £46.1 billion to the UK’s Gross Value Added (GVA) in 2017, an £8.3 billion increase since 2010. To put this in context, the Maritime Industry is larger than other comparable transport industries in the UK, including, Rail and Aerospace and is only marginally smaller than the road transport industry. The industry is relied upon to connect British business with the rest of the world. Never has this been more important than now.
The sector’s direct Gross Value Added (GVA) contribution was £17 billion in 2017, a 25% increase compared to 2010 (£13.6 billion). This is larger than the entire Rail and Transport Sectors combined and is an important indicator that Maritime, which greases the cogs of global trade, is a fundamental industry for the continued growth and prosperity of the UK economy. This is evidenced by the far-reaching impact of maritime, as is revealed that for every £1 in GVA directly contributed by Maritime, the industry supports another £2.71 in GVA across the UK economy.
The sector is also found to be a valuable contributor to the Exchequer, having directly generated an estimated £5.3 billion in tax revenues for the UK in 2017, 20% higher than the £4.4 billion in 2010.”
Conclusion
From the above it is obvious that the maritime industry is arguably the most important aspect of the world’s economy because it is linked to almost every sector.
Let’s do our best to show our appreciation to the industry by actively supporting and partaking in its development. Also, the day of appreciation set aside by the IMO as World Maritime Day should be supported and well encouraged.
