Economic Value

No world trade without shipping

There is no denying of the crucial role played by shipping in our globalized world economy, as evidenced by the 90% share of sea-borne transport in the worldwide movement of goods. Therefore, there is no world trade without shipping. No other means imaginable would be capable of carrying clothes, food, oil, cars, electronics, etc. on such a large scale over thousands of miles. The shipping routes are the very arteries of our world economy, providing the system with its blood and oxygen. Without shipping, one half of the world would starve (due to a lack of food imports) and the other half would freeze (due to a lack of fuel supplies). Sea-borne transport is cheap, even cheaper than any other means of transport, because of the scale on which goods can be carried and the inherent high-efficiency of this transport mode. Shipping dramatically reduces the share of the transport cost in the overall product price. Consumers worldwide will be the last to complain.

Ocean-going vessels amid worldwide competition

The client asks and the shipowner carries goods to any port worldwide. How does the client choose a specific shipowner? Reliability, speed and innovation certainly play a part. However, the price is actually the decisive factor. As a result, shipowners engage in daily competition with their colleagues from all over the world. Belgian shipowners cannot fail to experience that the international market is not really a level playing field. Some shipowners operate with different technical and safety standards, whereas others pay lower wages to their non-European seafarers. Additionally, in some countries the tax and social security burden is much lower for shipowners than in Belgium. A vessel’s flag determines the regulations applicable on board. Shipowners have a choice of flags to adopt. Reflagging is an easy option as well. Shipowners are thus led to seek the Flag State providing optimum services and quality image at the lowest cost possible. If the current flag no longer meets their needs, they will adopt the flag of a country offering more opportunities for the future.

Compete on equal terms

European shipowners control approximately 40% of the world fleet. However, only a fraction of this total flies a European flag. A suitable State-aid policy is required to preserve the current European fleet and preferably to expand it. The existing State-aid guidelines must remain at the heart of this undertaking, in view of their positive effect on policy-making. Understanding that Europe can only make decisions regarding European-flagged vessels, much can be achieved: monitoring working conditions and safety on board, striving for a high-quality, environment-friendly fleet and strengthening the maritime cluster. Persevering along the path traced by the guidelines will boost the positive effects of shipping on the Belgian economy.