Outside the bubble

In my dealings around the States, the docks and supply chains are usually (though not always) far from the general populations, both physical and mentally.

New York, which historians will tell you was a “hub” for everything in the 1800s, has lost some of its maritime zest as its business has evolved. Organisations like NYMAR (New York Maritime), a group of legal and financial service providers to commercial shipping,endeavour to raise its profile around the world but are still struggling to do so locally.

At local shipping events, (often held at a port), that I’ve attended through the years, port management from the locality are invited. When they finish their perfunctory speeches
or presentations, they sometimes mix and mingle, other times they are whisked away in their waiting limos.

Happily, the maritime commerce side, at least around my home turf, has recently been re-invigorated so maybe this will be changing. Shipping’s profile, and ergo its visibility, is changing in all geographies. Shipping can no longer hide inside its cocoon.

Perversely, this is good for port strategists seeking to be more informed. Consider IMO 2020, the coming tightening of restrictions on sulphur content. It is well known inside the maritime realm that we don’t yet know entirely about its reverberations beyond shipping.

Tanker markets are on the move, though another factor, geopolitics, is playing a big role now as US sanctions have now impacted a broader swath of the crude carrier market. In the minds of the public, encompassing all types of “stakeholders” (however defined), the ports are linked in with all things maritime.

Though seemingly far afield, issues such as governmental sanctions are steadily and intrinsically put into the same “basket” (maybe “cargo hold”) with commercial considerations facing port management. On the operational side, various “external” disrupters are already playing a role.

For port planners- though perhaps better informed, all this is maddening. The world has changed.

IMO 2050 (greenhouse gas reductions) is still a work in progress. Increasingly, concerns about CO2 loom large when charterers and, now, financiers, will be looking at a vessel, or fleet’s emissions profile before entering cargo contracts, or providing financial capital.

The port financiers are no strangers to dictates of green finance – expect such concerns to increasingly drive movements of capital towards (and away from) projects. At some point, they may begin to drive movements of cargo, if they have not already done so, further complicating the port planners’ jobs.