Shipping Markets: Changing Dynamics
The Institute of Chartered Shipbrokers, Greek Branch organised a Masterclass Seminar on Tuesday 13th of June 2017 at the Piraeus Marine Club, on the occasion of the ICS Education & Training Committee (ETC) meeting in Greece. The topic of the Masterclass Seminar was ”Shipping Markets: Changing Dynamics” and was delivered by Mr Jagmeet Makkar FICS, MSc (Cass), PCBA, FICS, FRINA, FIMarE(I), MCIArb, Past Chairman of the ICS Hong Kong Branch, Member of the ETC and Director & Co-Founder, SKILLSPlus Pte. Ltd A welcome address was made by Mrs Natalia Margioli – Komninou, FICS, Managing Director of the ICS Greek Branch and Hellenic Management Centre who thanked the speaker, the ETC members and the audience for their participation.
The speaker, Mr Jagmeet Makkar who expressed his gratitude for ‘’the opportunity to address the highly distinguished audience of this Great Nation, Greece, where Shipping is not just business but a Tradition’’ and looked forward to learn more through his interaction with the respectable audience. Jagmeet laid emphasis that we often ignore the subtle yet “future-significant* changes that have the potential to affect the way we do business. These could be, the impact of forthcoming or even “future-possible”* financial and environmental regulations. He also went on to discuss US’s increasing inward looking policies, possibility of a soft Brexit (if at all) and the opportunities for China to make its Belt & Road Initiative (BRI) not only a reality but a grant success.
The impact for wet and gas sector is expected to be negative due to long distance oil and gas pipes lines running for thousands of miles, positive for short distance dry bulk trade and possibly very encouraging for container industry when the countries which are part of BRI have effective infrastructure and the masses expect a better quality of life. However, this is a bit far in future and it will have to be seen how the impact of competing rail and road transportation of containers plays out. The multiplier by which global trade increases for every 1% increase in the global GDP has gone below unity due to increasing share of service oriented economy, protectionism etc. This does not bode well for the world trade, majority of which is by sea. Indian economy is expected to provide some support. However the reducing thermal coal import is a matter of concern. Finally he touched upon briefly on the technological changes and impressed upon “Think-Economic”* concept. He concluded that the negatives were slowing demand, protectionism / President Trump’s policies as we see them now, GDP versus Global Trade Growth with less than unity multiple, reduction in the growth percentage of Chinese Economy and Geo-political situation with regions of uncertainty and instability, especially Middle East.
The response to his presentation was overwhelming with comments such as “he provided food for thought and made us think about the dynamics that we often tend to ignore”. After the Seminar, a cocktail reception followed and Members, Students and Members of the Education Committee had the chance to exchange views and ideas on current shipping matters. The International Chairman of the Institute, Mr. Michael Taliotis, FICS, the Director of ICS, Ms. Julie Lithgow and the Chairman of Education & Training Committee, Mrs Susan Oatway honored the event with their presence. It was a successful and well attended event which proved once again that ICS members are truly part of an international shipping network.
Source: The Institute of Chartered Shipbrokers, Greek Branch