Sunday Shipping News (03/15/09)

Overcapacity Of 10,000 Vessels In Shipping Industry

The global shipping industry is said to be facing the problem of over-capacity in ocean vessels. It estimates that up to 1,000 are lying idle.

In a startling assessment of the current situation, Det Norske Veritas said that the number of cancellations was likely to rocket over the coming months. These cancellations are the cut of “number of orders” to ship builders. The Norwegian class society has seen 43 of its own vessels canceled over the year.

DNV said that if by 2013, if the global economy remained stagnant, there could be over 3,000 ships scrapped, 1,444 canceled and over 6,000 ships either in lay-up, slow steaming, or idling.

This is happening in effect to the crisis of the global economy. If the world economy continues to decline, the figure of 10,000 vessels could skyrocket to 12,000 after 2010. But, if the economy is to increase, there still could be an overcapacity of ships.

Japan Sends Navy To Join In Somalia For Anti-pirate Patrols

Japan is sending its two naval vessels to Somalia to join the international patrols who are securing the sea near the area in the Gulf of Aden. The Japan’s action is to help protect the cargo ships passing around the area. These patrols of international naval ships are aimed to curb attacks of pirates which are getting more and more serious in the past months.

Patrols of navy ships, for mariners, are a big help and relief to their navigation in and around the Gulf of Aden. It will certainly help bring down the number of attack incidents from a peak of 37 in November 2008 to 7 in the month of February.

Defense Minister Yasukazu Hamada told reporters that “Piracy is a treat to the international community, including Japan, and its issue that should be dealt with immediately. It is the government’s important responsibility to protect the lives and property of the Japanese in these waters, which are an essential marine traffic area for our country.”

Japan’s dispatch of these navy vessels makes it easier for other naval ships patrolling around the area. The number of navy ships patrolling in the gulf is increasing as China also sent its naval ships a few months ago. Now, over 18 countries are helping to solve the piracy in and out of the gulf, as it is considered as one of the busiest shipping areas in the world.