H.Fafalios: “We face great uncertainty in the global economy"

 

A reception for the annual cutting of the Vassilopitta was hosted by the GSCC at the Baltic Exchange on 22^nd January 2015 and was attended by members of the diplomatic corps of Greece and Cyprus in the UK, representatives of city institutions, classification societies, P&I Clubs, law firms, banks, as well as representatives of the Member Offices. The Vassilopittas were blessed by His Eminence, Archbishop Gregorios of Thyateira and Great Britain. 

In his welcome speech, the Chairman, Mr. Haralambos J. Fafalios, inter alia, stressed that this year is especially significant for the GSCC as it represents the 80th year since its inception.  Since 1935, the GSCC has been representing Greek shipping on the global stage, commencing with the Great Depression, the Second World War and all the challenges that have faced the global shipping industry ever since.

He added that this year starts with no fewer challenges, whether they be economic, political or legislative.  

“We face great uncertainty in the global economy with China slowing down, Europe trying to decide whether to indulge in a money printing exercise and a market where global commodity prices seem to be falling to new lows.

In shipping itself we still have a huge number of new ships being built in every category. We have large numbers of bulk carriers, tankers, gas carriers and mega-containerships entering what is a challenging environment in dry cargo, but a very positive market in tankers and LPG, at levels not seen since 2007-2008. For the tankers – long may this continue, and for the bulkers, let us hope recovery is around the corner.

Scrapping has picked up a bit for Bulk Carriers albeit at lower prices due to a deluge of low-priced Chinese steel.

The Greek shipping industry itself is still growing with deliveries of Bulk Carriers, Tankers, LNG/LPG Carriers, Containerships as well as more specialised vessels such as Dynamically Positioned Drill Ships and offshore support vessels.

The Greek fleet is probably the largest in the world, the average age is coming down significantly and the Greek Flag fleet is on the white list of Port State Inspections.

As regards legislative issues, we are still involving ourselves actively in trying to deal with the following major ones:

1. Ballast water management;

2. M.R.V’s and E.E.D.I’s;

3. Cargo liquefaction;

4. Piracy in all its forms;

5. Common structural rules;

With regard to these issues we find it tragic that 18 lives were lost on the m/v “Bulk Jupiter” due to cargo liquefaction. This should not happen. We are spending more time dealing with the eradication of invasive species than saving the human species. The GSCC believes that there should be an emphasis on higher shipbuilding standards, greater scrutiny of terminals, more cargo vetting and swifter and more transparent casualty investigations.

The GSCC does not hesitate to lobby on national and international matters at the highest levels when necessary, to deal with problems faced by its members.

Working together with the Union of Greek Ship Owners in Greece makes our voice stronger and our message clearer.

Although based at the Baltic Exchange which we consider to be the spiritual home of world shipping and having good contacts with British maritime organisations of which we are very proud, we do see a dark cloud on the horizon. The fiscal environment in this country has become uncertain and as a result, more and more shipping companies are decamping to more stable locations. Let us not allow London to suffer the fate of New York, which in Shipping terms became a backwater after a negative tax environment in the early 1960’s caused a complete exodus of most maritime companies.

I think that any discourse on our industry would be incomplete without recognising the huge contribution made to Shipping by all the seafarers who man the vessels that ply their trades on the seven seas. Without their hard work and sacrifice, Greek shipping would not be in the prominent position that it finds itself in.”

The Chairman ended by thanking all his colleagues and the GSCC Secretariat.