Page 6: of Maritime Reporter Magazine (December 1998)
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International
Representatives
EDITOR'S NOTE
Plotting The Course For 2000 T he maritime industry has always provided fertile grounds for the breed- ing of a good suspense — whether it be of the political, financial or nationalistic pride variety — and the past year proved to be no excep- tion. Coming into 1998, most attention was squarely focused on the "clock ticking" toward July 1 and the implementation of the ISM Code. Gloom and doom sayers had a field day, predicting dire consequences regarding the ability of the world fleet to effectively acquire the necessary stamp of approval, and forecasting the literal stop- page of international trade. July 1 came and went, much like any other day of the 24 hour variety, and on July 2 the world was still spinning.
The ongoing sagas regarding subsidies, "price dumping" and excess building capacity remain just that...ongoing sagas. While it has become abundantly clear that the U.S. is in no hurry to ratify the
OECD agreement regarding the elimination of shipbuilding subsidies, it has left the EU and the indi- vidual European countries in a quandary regarding the support to their shipyards. The mantra of unfair competition and "price dumping" has grown louder and more frequent, as more and more orders fall into the hands of Asian yards. China has now fortified its position among the world's mos prolific ship- builders, taking the number three slot in terms of tonnage built behind Japan and Korea. While the continuing financial crisis will surely shake-out some of the corporate weaklings, it has become clear that the balance of new ship orders is not about to shift from the Far East anytime soon.
Thus, yards with addresses outside of Japan and Korea will continue to focus on the high-value and niche vessel segments. The formation and operation of the Aker Group of shipyards, under the direc- tion of Otto Soberg, and the expansion of Halter Marine Group in the U.S. under the direction of John
Dane III, could be considered blueprints for shipyard operations of the future: a grouping large enough to withstand the financial rigors inherent in the market, yet small enough to be responsive, flexible and capable of responding to a diversity of market demands with a high degree of excellence.
What's Next?
It seems a necessary exercise to conjure a "deadline" upon which to focus attention, and the coming year provides the mother of all deadlines in the form of January 1, 2000 and the inevitable Y2K prob- lem. Companies worldwide are in top gear to ensure that there is no catastrophic shutdown at the stroke of midnight on December 31,1999. While it can be reasonably assured that there will be a num- ber of problems — given the sheer size and inter-dependancy of the international maritime market — it is similarly reasonable to assume that the shipping industry will weather the storm relatively well.
The upside of Y2K is the strong focus on technology: revealing how automated the "conservative" maritime market has become, and additionally, how many more levels of automation can be achieved.
The "high-tech" side of the maritime market will be a recurring theme in MR/EN throughout 1999 (starting with an in-depth Y2K assessment feature in January) with many articles and sections dedicat- ed to exploring the way in which companies — vessel builders, owner/operators and marine equipment suppliers — are integrating advanced solutions to save time and create new efficiencies and profit opportunities.
Coming Up In MR/EN in 1999
February 1999 April 1999
Cruise Ship Yearbook International Offshore Annual
Nav/Comm Electronics Selection Guide World Ship Repair Atlas & Directory
Country Focus: Norway World Regional Report: Middle East
March 1999 May 1999
World Ship Repair Technology Guide Nor-Shipping '99
Guide to Satellite Communications Fuels, Lubricants, Additives & Filters Review
Country Focus: Spain Country Focuses: Finland & Canada
IHTERNATIONAL OPERATIONS
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