WSC - Experts & Thought Leaders

The World Shipping Council welcomes the balance between sustainability and competitiveness struck in the European Commission’s Competitiveness Compass released that will form the basis for the EU’s Clean Industrial Deal.  WSC, however, called on the Commission to recognise that liner shipping is investing in Europe and urged the Commission to support the sector on its path to decarbonise supply chains, fostering open trade and protecting critical sea lanes from geopolitical disruptions. Low-carbon transport fuels “We are happy to see the Commission’s recognition that decarbonisation can drive competitiveness, and its commitment to intertwine it with EU economic, competition, and trade policies,” WSC President and CEO Joe Kramek said. “This is the moment for Europe to seize the opportunity to support shipping in contributing to the competitiveness of a sustainable future EU economy,” he said. The new measures are envisioned to de-risk investment in renewable energy and the production and distribution of renewable and low-carbon transport fuels. These steps are crucial for Europe to establish itself as a maritime energy hub. Supply chain resilience & competitiveness The Commission’s pledge to make a priority of ending the EU single market and reducing the burden With exports bringing over €2 trillion to the EU each year, the movement of goods across oceans is essential to Europe. In fact, 90% of goods by volume enters and leaves the EU by sea transport. These ships connect Europe to over 900 ports worldwide, reaching key markets and building important international relationships. The Commission’s pledge to make a priority of completing the EU single market and reducing the administrative burden will be welcomed by ocean carriers as well as shippers. Creation of a maritime space To reach this goal, the coming years will require the creation of a maritime space without barriers, the removal of customs formalities for goods transported by sea intra-EU, the streamlining of external border controls, the harmonisation of rules and the further reduction of bureaucracy. The WSC welcomed the Commission’s recognition that partnerships with industry are vital to make legislation and policy work better and advocated for this approach to focus on policy design and implementation.

The World Shipping Council (WSC) Board of Directors has elected Soren Toft, CEO of MSC Mediterranean Shipping Company, as the new Chair of the World Shipping Council Board. Randy Chen, Vice Chairman of Wan Hai Lines, has been elected Vice Chair. Soren Toft and Randy Chen will serve a two-year term, effective immediately. The new Chair and Vice Chair succeed Rolf Habben Jansen, CEO of Hapag-Lloyd AG, and Jeremy Nixon, CEO of ONE, who have served as Co-Chairs of the WSC Board for two terms, starting November 2020. Innovation and sustainability in shipping  WSC President and CEO - Joe Kramek highlights the extensive expertise that Soren Toft and Randy Chen will bring WSC President and CEO - Joe Kramek highlights the extensive expertise that Soren Toft and Randy Chen will bring, and their contributions to the global shipping industry. "I am looking forward to working with Soren Toft and Randy Chen in their new roles. Both are esteemed pioneers with a proven track record of driving innovation and sustainability in the global shipping industry. Their experience and expertise will be instrumental in continuing to develop the World Shipping Council as the united voice of liner shipping," says Joe Kramek. Council’s growth and development "I also extend my sincere gratitude to Rolf Habben Jansen and Jeremy Nixon for their exceptional leadership over the past four years, during a critical time for the industry and WSC. Their commitment has been instrumental in the Council’s growth and development, strengthening its representation internationally and extending its scope of work," says Joe Kramek. Future growth of shipping industry "It is an honour to step into the role of Chair for the World Shipping Council and to represent the global liner shipping industry alongside our members. WSC is today a respected voice of liner shipping, engaging with governments and organisations globally," says Soren Toft, CEO of MSC Mediterranean Shipping Company. Soren Toft adds, "An ever-changing world presents both challenges and opportunities for our industry as we head into the future, and I am eager to further advance our work to shape the future growth of a socially responsible, environmentally sustainable, safe and secure shipping industry."

The Cargo Integrity Group (CIG) commends the recent circular issued by the China Maritime Safety Administration (MSA), following the explosion incident involving the vessel – ‘YM Mobility’ on August 9, 2024, at Ningbo-Zhoushan Port. This incident, along with other recent fires aboard container vessels, underscores the critical need for enhanced safety measures and vigilance in the transport of dangerous goods by sea. In its circular, the MSA reiterated the need for all shipping-related enterprises to implement comprehensive safety protocols, particularly during high-temperature seasons. This includes the rigorous management of dangerous goods, adherence to safety regulations, and thorough education and safety training for employees and crew members to handle potential risks effectively. The Cargo Integrity Group Each party must contribute to a culture of safety that prioritises the well-being of supply chain employees The Cargo Integrity Group echoes these sentiments. It is imperative that all parties involved in the supply chain – including shippers, freight forwarders, carriers, and port operators – recognise their roles and responsibilities in ensuring the safe transport of containers, both in compliance with dangerous goods regulations and in adopting sound industry practice, such as the CTU Code. Each party must contribute to a culture of safety that prioritises the well-being of supply chain employees and vessel crews. Key Responsibilities for Safe Container Transport: Shippers: Must ensure that all cargo is correctly classified, packaged, and labelled according to the International Maritime Dangerous Goods (IMDG) Code. Accurate and timely provision of emergency information to carriers is not just a regulatory requirement but a critical component in mitigating risks associated with the transport of dangerous goods. Carriers and Shipping Companies: Must maintain robust safety management systems and conduct regular training and emergency drills to enhance the preparedness of crews. Proper stowage, segregation, and isolation of dangerous goods, along with diligent inspection protocols, are essential to prevent incidents. Freight Forwarders and Port Operators: Should work closely with carriers and shippers to verify cargo documentation and ensure the accurate declaration of dangerous goods. They should also be vigilant in inspecting containers for any potential hazards. Importance of immediate communication and coordination The Cargo Integrity Group also stresses the importance of immediate communication and coordination among all parties to address any discrepancies or emergencies swiftly. As noted in the MSA circular, the proper management of dangerous goods, including temperature-sensitive materials and those with lower flash points, requires stringent adherence to safety guidelines. “We must all work together to uphold the highest standards of safety in the transport of containers,” said the Cargo Integrity Group, adding “The recent incidents serve as a stark reminder that there is no room for complacency. We urge all parties to renew their commitment to safety, ensuring that the tragic events we have witnessed are not repeated.” By adhering to international safety regulations and best practices, everyone can all help prevent future incidents and protect the lives of those working within the global supply chain.

Millions of cargo containers are transported each year, and only a tiny fraction are lost at sea. However, the number of lost containers has increased in recent years, propelled by high-impact incidents that skewed the numbers upward. Factors impacting the higher number of lost containers include more violent weather events (due to global warming) and rough seas. Stresses on the global supply chain have led to higher numbers of containers loaded per ship and possibly less care being taken when securing them. Ships are getting larger, and containers are being stacked higher. Port congestion, a symptom of supply chain problems, is adding stresses that can cause human error. Poorly maintained equipment Circumstances impacting container losses also include rare events such as ship groundings, structural failures, and collisions. Damaged containers, worn-out constraints and poorly maintained equipment are other factors. Human error can include failure to follow guidelines, poor distribution of weight, cargo improperly packed, and human fatigue. Damaged containers, worn-out constraints and poorly maintained equipment are other factor According to the World Shipping Containers Lost at Sea Report for 2020-2021, the number of containers lost overboard represents less than one thousandth of 1% (0.001%) of the millions that are transported. However, in the last couple of years, the percentage (although remaining small) has increased by 18%. For example, the winter of 2021 saw an unusually high number of incidents — 3,113 container losses, many weather-related, compared to 779 in the previous period. Container shipping industry In all, during the period of the study, international liner carriers managed 6,300 ships to deliver $7 trillion in supplies inside approximately 241 million containers. Only a tiny few were lost. Losses of containers can range from a single container that is not mounted correctly to a major disaster in which an entire ship sinks. The average shipping container represents about $50,000 in value, which translates into millions of dollars lost at sea each year. Even so, the loss is negligible compared to the massive scale of the container shipping industry. There are also environmental considerations: Lost containers can add pollutants, including plastics, to the oceans. Shipping container losses Between 2008 and 2019, there was an average of 1,382 containers lost at sea each year Between 2008 and 2019, there was an average of 1,382 containers lost at sea each year. Skewing the average upward was a shipping accident in June 2013 in which the MOL Comfort broke in two and sank about 200 nautical miles off the coast of Yemen. Some 4,293 containers sank into the Indian Ocean. 2021 saw the largest spike in shipping container losses since 2013. Between November 2020 and April 2021, an estimated 3,000 containers were lost in the North Pacific in five incidents, double the annual average within a matter of weeks. Exceptional container losses Parametric rolling movement (PRM) has been a factor in some incidents with exceptional container losses that occurred during the winter season 2020-2021. The PRM phenomenon can cause a ship to roll at extreme angles of up to 30-40 degrees The PRM phenomenon can cause a ship to roll at extreme angles of up to 30-40 degrees or more and may in extreme cases lead to capsizing of the vessel. PRM mainly affects modern container vessels and car carriers that have hull forms with flared fore and aft decks. Rolling motion can cause containers to break free from their lashings and be tossed overboard. The ONE Apus ship lost more than 1,800 containers during a storm in the Pacific Ocean northwest of Hawaii in November 2020. Just a couple months later, the Maersk Essen lost 689 containers overboard during a routine voyage from China to Los Angeles. In the Maersk event, an investigation determined that heavy rolling was most likely a result of parametric rolling. Modern container ships The loss of containers and their impact on the marine and coastal environments has raised public and political concerns about the safety and environmental impact of modern container ships. The three-year Top Tier project involves active participation of major stakeholders In response, the MARIN maritime institute’s Top Tier Joint Industry Project seeks to evaluate container securing processes and to improve regulations and practices to avoid such loss of containers at sea amid an increase in the size of deep-sea container ships over the past decades. The three-year Top Tier project involves active participation of major stakeholders, including the World Shipping Council and member lines. Phase 1 reviewed current practice and incidents and identified gaps. Container lashing equipment Phase 2, beginning in mid-2022, engaged six working groups to conduct detailed technical research and investigations. Phase 3 will combine the results into practical safety improvements and specific, actionable recommendations to reduce the risk of losing containers overboard. Improvements to the Safety of Life and Sea (SOLAS) convention have previously reduced risks of lost containers, including creation and communication of the Code of Practice for Packing of Cargo transport units (CTU Code) and ISO standards for container lashing equipment and corner castings.