Connect with us

Impex

ESCA and ETF sent a joint letter to the council on urgent regulatory measures for the shipping industry

Published

4 years ago

on

ESCA and ETF sent a joint letter to the council on urgent regulatory measures for the shipping industry. Image: Pixabay
Listen to the story (FreightComms AudioPost)

The shipping industry urgently needs special regulatory measures and actions to prevent a total collapse of seaborne trade to and from the EU.

The outbreak of the corona virus (COVID-19) has developed into a catastrophic event affecting many countries and its citizens around the globe. The European social partners in the maritime transport sector, ECSA and ETF express their compassion with all people being struck by the recent developments.

ECSA and ETF consider it crucial that the EU shipping industry remains able to perform its crucial function for the European economy and its citizens. 76% of EU’s external trade is moved by sea, and 32% of intra EU transport of goods. It has to be ensured that essential goods, energy, food, medicines and many other products from outside the EU can be delivered to EU’s internal market, citizens and vital industries in all Member States and be transported as smoothly as possible between EU Member States. Without this many supply chains would be severely impacted or come to a complete stagnation, making the economic impact of the crisis even bigger than already is the case.

Therefore ECSA and ETF call upon the EU institutions to support the industry and its workforce with the challenges they are facing. Special measures and actions have to be taken with the greatest urgency to ensure that the shipping industry can play its role in supporting the EU economy to the fullest extent possible.

In view of the High Level Video Conference for European Union Transport Ministers on the implications of the novel coronavirus on transport taking place on Wednesday 18 March, we call for immediate action to reduce as much as possible the social, operational and economic impacts. The relationship between the impacts is very strong, so the impacts have to be addressed across-the-board.

Social impact

Seafarers from all over the world are providing an essential contribution making sure that international supply chains to and from Europe continue to function. The measures being taken by Member States to restrict the movement of people, in order to minimise the infection risks, whilst understandable, are having serious consequences for the movement of seafarers. Also the closure of ports is a relevant factor. As a consequence, workers, both at sea and onshore, are experiencing several issues which require immediate action.

  • Movement of ships’ crews: it is of utmost importance that ships are able to dock where necessary and that crew members are able to join and leave their ships with as few impediments as possible. With restrictions at ports – and reductions in flights  – this is becoming increasingly difficult. For this reason, the industry urges flexibility and assistance so as to help seafarers to continue to operate ships and be allowed to leave and return to their homes so that crew reliefs can continue to be effected. We therefore call for seafarers to be exempted from national travel bans, so that they can join their ships and keep the supply lines operating. They should also be treated pragmatically when returning home from their ships. In these critical moments, much like medical staff and security forces, seafarers are key workers and need governments to recognise them as such and afford them special consideration.
  • Maximum period of service: At their own request, or due to the absence of crew replacing them and/or due to the absence of flights from their expected port of disembarkation to their home country, seafarers may have to spend longer on board ships than specified in their employment agreements or under applicable national laws applying the Maritime Labour Convention. We therefore call upon flag and port states to apply a pragmatic approach to such situations and, on a case-by-case basis, permit crew members to remain on board for a reasonable period beyond their scheduled tours of duty in view of the implications of the pandemic, bearing in mind that ships need to sail fully crewed.
  • Seafarers’ certificates: In view of travel restrictions, seafarers may be forced to spend longer on board than usual as they are not being allowed to leave the vessel. Moreover, some training institutes have closed to contain the spread of the virus. This may therefore result in seafarers not being able to do the necessary training required for an extension of their certificate and therefore, one or more of their certificates may expire. This in turn could lead to problems with the vessels’ safe manning certificates and their ability to sail. We call on Flag and Port States to show pragmatism by extending the validity of the certificates by at least 3 months. In order to be effective this would require action in the regional Port State Control Regimes all around the globe.
  • Job redundancies affecting on board and onshore staff: Due to the substantial impact of the imposed travel restrictions on passenger operations and the reduced cargo traffic, companies have had to adjust operations and costs to limit the impact – Member States should consider to put in place special assistance measures where possible, to safeguard EU jobs. We encourage governments to exchange on best practices already implemented in some countries, such as social protection measures for seafarers or covering a percentage of employee’s salaries.
  • Access to on board inspections by specialised staff: the travel restrictions have also caused difficulties for specialised staff, such as inspectors, to access the vessels and conduct legally required inspections (safety, environmental and training). Governments should afford them special consideration in line with the considerations for seafarers’ movement possibilities.

Operational Impact

Several measures and developments are severely impacting ships’ operations globally. There are difficulties in finding medical supplies and shortage of mechanic and electronic parts for vessels. Traffic by sea between specific locations has now been stopped completely. Moreover, operational restrictions have been put in place on port calls. There is a significant increase in the number of vessels out of service due to strong operational limitations, lack of cargo or unavailability of crew.

Therefore there is need for the Commission and Member States to:

  • Keep supply lines open: It is of critical importance that supply lines are kept open so that products and supplies can reach the ships and this depends on ships being able to dock where necessary.
  • Certification of ships: Since dry dock availability is severely limited due to precautionary measures to contain the virus, it becomes increasingly impossible for ships to dry dock in time if renewal of the certificate requires dry-docking. Flexibility by Flag States and Class Societies is required through an extension of the validity of the current certificates by at least 3 months. In order for this to be effective this would require a global approach.
  • Cruise ships have not been permitted to dock in ports of certain countries.  Many cruise ships are in the process of returning to their “home port” within Europe. There are conflicting approaches across EU member states. Clear and consistent guidelines to enable cruise ships to dock are needed as soon as possible. Cruise ships require assurances that they will be able to enter harbours, berth and disembark passengers and crew, permitting repatriation.

Economic Impact

Direct economic impacts are being seen in all shipping segments. Passenger shipping – cruises and ferries – are immediately hit due to more and more countries closing their borders or restricting travel. Global shipping will decline due to the drop of global economic growth and thus seaborne trade. There will be reduced demand for tonnage especially in deep sea container and bulk. The significant reduction in oil prices is impacting the medium and long term viability of offshore ships, that just started to recover from the previous crisis, that started in September 2014.

Therefore there is need for the Commission and Member States to provide financial assistance to the industry:

  • EU banks should be supported by a well-fit regulatory framework  at EU level to solve the immediate liquidity issues of shipowners.
  • The ECB package, as agreed to last Friday 13 March, should be made available without delay in order to make it possible for banks to continue to finance the shipping industry. EU support should also cover financing of investments that will be important for the industry to regenerate itself in the longer term.
  • be flexible in the application of the Maritime State Aid guidelines, so that state aid, like the labour cost reduction schemes, can be assured for the very special situation the shipping industry and EU seafarers are now facing.

In view of the vital importance of shipping and related services for the EU and its citizens, ECSA and ETF call on the European Commission and Member States to take decisive and assertive action in facilitating the supply chains and seafarer travel, providing much needed support to the industry and workforce.

We thank you in advance for taking into account our concerns in your deliberations and we look forward to continue working with the European Commission and EU Member States.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Topics:
Continue Reading

Impex

The European Commission and the UK signed a Brexit deal 

Published

3 years ago

on

December 25, 2020

By

The European Commission and the UK signed a Brexit deal. Image: Unsplash
The European Commission and the UK signed a Brexit deal. Image: Unsplash
Listen to the story (FreightComms AudioPost)

The European Commission has reached today an agreement with the United Kingdom on the terms of its future cooperation with the European Union.

President of the European Commission, Ursula von der Leyen said: “It was worth fighting for this deal because we now have a fair and balanced agreement with the UK, which will protect our European interests, ensure fair competition, and provide much-needed predictability for our fishing communities. Finally, we can leave Brexit behind us and look to the future. Europe is now moving on.”

The European Commission’s Chief Negotiator, Michel Barnier, said: “We have now come to the end of a very intensive four-year period, particularly over the past nine months, during which we negotiated the UK’s orderly withdrawal from the EU and a brand new partnership, which we have finally agreed today. The protection of our interests has been front and center throughout these negotiations and I am pleased that we have managed to do so. It is now for the European Parliament and the Council to have their say on this agreement.”

The draft Trade and Cooperation Agreement consists of three main pillars:

  • A Free Trade Agreement: a new economic and social partnership with the United Kingdom
  • The agreement covers not just trade in goods and services, but also a broad range of other areas in the EU’s interest, such as investment, competition, State aid, tax transparency, air and road transport, energy and sustainability, fisheries, data protection, and social security coordination.
  • It provides for zero tariffs and zero quotas on all goods that comply with the appropriate rules of origin.
  • Both parties have committed to ensuring a robust level playing field by maintaining high levels of protection in areas such as environmental protection, the fight against climate change and carbon pricing, social and labour rights, tax transparency, and State aid, with effective, domestic enforcement, a binding dispute settlement mechanism and the possibility for both parties to take remedial measures.
  • The EU and the UK agreed on a new framework for the joint management of fish stocks in the EU and UK waters. The UK will be able to further develop British fishing activities, while the activities and livelihoods of European fishing communities will be safeguarded, and natural resources preserved.
  • On transport, the agreement provides for continued and sustainable air, road, rail, and maritime connectivity, though market access falls below what the Single Market offers. It includes provisions to ensure that competition between EU and UK operators takes place on a level playing field, so that passenger rights, workers’ rights, and transport safety are not undermined.
  • On energy, the agreement provides a new model for trading and interconnectivity, with guarantees for open and fair competition, including on safety standards for offshore, and production of renewable energy.
  • On social security coordination, the agreement aims at ensuring a number of rights of EU citizens and UK nationals. This concerns EU citizens working in, traveling, or moving to the UK and to UK nationals working in, traveling, or moving to the EU after 1st January 2021.
  • Finally, the agreement enables the UK’s continued participation in a number of flagship EU programs for the period 2021-2027 (subject to a financial contribution by the UK to the EU budget), such as Horizon Europe.

The Trade and Cooperation Agreement covers a number of areas that are in the EU’s interest. It goes well beyond traditional free trade agreements and provides a solid basis for preserving our longstanding friendship and cooperation. It safeguards the integrity of the Single Market and the indivisibility of the Four Freedoms (people, goods, services, and capital). It reflects the fact that the UK is leaving the EU’s ecosystem of common rules, supervision, and enforcement mechanisms, and can therefore no longer enjoy the benefits of EU membership or the Single Market.  Nevertheless, the Agreement will by no means match the significant advantages that the UK enjoyed as a Member State of the EU.

Even with the new EU-UK Trade and Cooperation Agreement in place, there will be big changes on 1 January 2021.

On that date, the UK will leave the EU Single Market and Customs Union, as well as all EU policies and international agreements. The free movement of persons, goods, services, and capital between the UK and the EU will end.

The EU and the UK will form two separate markets; two distinct regulatory and legal spaces. This will create barriers to trade in goods and services and to cross-border mobility and exchanges that do not exist today – in both directions.

Continue Reading

Impex

India and US in negotiations to make a trade deal

Published

4 years ago

on

September 1, 2020

By

India and US in negotiations to make a trade deal
India and US in negotiations to make a trade deal. Image: Pixabay
Listen to the story (FreightComms AudioPost)

India and the US are in negotiations to make a trade agreement. The  Commerce and Industry Minister Shri Piyush Goyal has invited the United States commercial enterprises to take the bilateral exchange to new heights. Addressing the US-India Strategic Partnership Forum (USISPF) via a digital convention, ShriGoyal stated that the 2 democracies percentage deep dedication with each other, on the Government, Business and those to people to people levels.

Both nations trust in free and fair trade and the United States is India’s biggest buying and selling partner. He said that going beyond trade, in this interconnected world, the two nations can be the resilient trusted partners in the global value chain.

He further indicated to the members of US-India Strategic Partnership Forum about the initiatives taken by the government to facilitate industry and investments. He said that a GIS-enabled land bank has been launched on pilot basis, with six states on board, which will help the investors in identifying the land and location. 

India is ready to sign an initial limited trade package, and it is upto the US to move ahead, he said. 

The US is eager for a deal in advance of its presidential elections in November and had indicated that a preliminary deal ought to encompass recuperation of the GSP advantages to India and marketplace entry for each other’s agricultural products. India has demanded exemption from excessive obligations imposed on steel , aluminium products and its farm products, even as the United States is looking to have a  market entry  for its farm production, merchandise and clinical devices. 

He said, the trade deal has challenges but also a number of opportunities. This could be a foundational exchange deal on the way to deepen our engagement going forward.

 

Continue Reading

Food Logistics

India ranks first in number of organic farmers and Sikkim becomes first state in the world to become fully organic

Published

4 years ago

on

August 20, 2020

By

India ranks first in number of organic farmers and Sikkim becomes first state in the world to become fully organic
India ranks first in number of organic farmers and Sikkim becomes first state in the world to become fully organic. Image: Pixabay
Listen to the story (FreightComms AudioPost)

As the global pandemic situation continues the demand for access to good quality food is on the rise and it’s a high priority to India. In a very recent official statement from the government, India ranks first within the number of organic farmers and ninth in terms of area under organic farming. Also Sikkim became the first state in the world to become fully organic and other states such as Tripura and Uttarakhand have similar goals.

With the aim of aiding farmers to adopt organic farming and improve remunerations, government had introduced two dedicated programs specifically Mission Organic Value Chain Development for North East Region (MOVCD) and Paramparagat Krishi Vikas Yojana (PKVY) were launched in 2015 to encourage organic farming. 

The major organic exports from India are flax seeds, sesame, soybean, tea, medicinal plants, rice and pulses, which were instrumental in driving an rise of nearly 50% in organic exports in 2018-19, touching Rs 5151 crore. 

Modest commencement of exports from Assam, Mizoram, Manipur and Nagaland to UK, USA, Swaziland and Italy have proved the potential by increasing volumes and expanding to new destinations because the demand for health foods increases.

Both Mission Organic Value Chain Development and Paramparagat Krishi Vikas Yojana are promoting certification under  Participatory Guarantee System (PGS) and National Program for Organic Production (NPOP) respectively targeting local and international markets. 

Before making a purchase a consumer should look for the logos of FSSAI, Jaivik Bharat / PGS Organic India on the produce to ascertain the organic authenticity of the product. This can be a very important element of an organic produce. 

Presently, the commodities with highest potential include ginger, turmeric, black rice, spices, nutri cereals, pineapples, medicinal plants, buckwheat, bamboo shoots, etc. Supplies of organic produce has started from the north eastern region including for Mother Dairy from Meghalaya, Revanta Foods and Big Basket from Manipur. 

The organic e-commerce platform www.jaivikkheti.in is being strengthened for directly linking farmers with retail as well as bulk buyers. Infusion of digital technology in a much bigger way has been a major takeaway during the pandemic period.

Indian organic farmers will soon be reinforcing the top place in the global agriculture trade. 

Continue Reading

Popular

Copyright © 2017-18 | FreightComms | Made with ♥ in Singapore