A Report on

World Shipping Conferences & Consortium

Introduction:
There are different shipping conferences that happen throughout the globe. Each
conference has its own importance. There are a few conferences like ferry shipping
conference which are old that started around 2008. There are few other that are just 2
years old. Conferences happen globally as well as for the regions. Example is the Global
liner shipping conference. It happens throughout the globe as well as separately for the
Asia, middle-east. Some of the shipping conferences are as follows:
1. ICS International Shipping Conference
2. Global Liner Shipping Conference
3. International Mediterranean Shipping Conference
4. Maritime Cyprus Conference
5. Houston Shipping and Offshore Conference
6. LNG ship/shore interface Conference
7. Iron Ore and Coal shipping summit Asia
8. Cayman Islands Shipping Summit
9. Blue Shipping Forum
10. Ferry Shipping Conference

Cayman Island Shipping Conference:

World GDP is set to fall due to European economic problems, the lingering oversupply of
new buildings and not enough demand to absorb them, and greater regulatory demands.

While last year the belief was that China would bring the world out of the crisis, now it
seems that China is having problems of its own, with the inflation risk, tightening credit and
weakening demand. All of the above directly affect the shipping industry with the result that
the finance that used to be available to shipping companies has dried up. Only the top 15%
of the largest shipping companies are said to be able to get financing from the traditional
sources, granted at a higher rate. But it seems that for everyone else that shop has closed.

It is in these times that the savviest entrepreneurs look elsewhere and find new
opportunities. Enter the Cayman Islands offshore financial industry, with its shipping history,
direct ties to United Kingdom and developed stable economic and political climate. This
combination makes the Cayman Islands the fifth largest banking center in the world and
number one in hedge funds. As a result Cayman Islands have over 800 marine companies
registered there. And it seems to be very reasonable that the shipping industry step in and
take advantage of these financial opportunities.

This summit aims to analyse the pros and cons of shipping industry doing business offshore,
and in particular the Cayman Islands, as it is in the crossroads between North and South
America. Looking ahead, we will try to predict the trends, market outlooks, available
financing, best new technologies for environmental sustainability and ways of generating
new businesses while still making profits.

Session 1:
Advantages and Disadvantages in doing business offshore, particularly in the Cayman Islands
Speakers themes:

What are the pros and cons for registering ships in the Cayman Islands?

Is shipping a global industry or a series of global villages?

Will the tax havens come under scrutiny from the governments looking for ways to
raise more capital?

What are the main sources of finance located in the Caymans and how can ship
owners take advantage of them?

What are the strategies for a successful maritime cluster in the Cayman Islands?

What new opportunities can offshore provide for the shipping industry?

Flexibility of registering ships compared to other countries?

Session 2:
Shipping markets, Outlook and Economic World View.
Sources of Finance

Session hosted by ABS

Speakers themes:

Geopolitical considerations; exploring the risks and rewards

As the global economy slows down, going forward how is the international tradegrowth affected?

International trade and commodities outlook are trading patterns changing?

Whats the outlook of oil, gas and coal production and consumption?

How long before the shipping industry sees the start of demand bouncing back?

Shipping markets in focus per ship type, containers, dry bulk, liquid bulk, containers,
offshore, cruise ships and yachts.

What are the views from charterers, ship owners and broker-analysts?

Could the Cayman Islands be a new source of ship finance due to its position as the
fifth largest banking center in the world?

What are the realities and consequences facing the ship owners in todays
uncertain financial times, and what incentives do shipping companies have in leaving
their home base and relocating offshore?

What are the challenges facing the shipping industry in finding new sources of
finance?

How much capital is available in todays shipping market?

Since the Cayman Islands have grown to be the worlds leading offshore hedge fund
jurisdiction, could this be a potential new lucrative source for shipping finance?

In todays economic climate, it looks like only the reputable ship owners with good
track records can continue to tap the capital markets, what are the options for the

other smaller companies? What are the advantages of registering mega-yachts and
ships under the Cayman Islands flag? Some benefits include easier access to marine
mortgages and financing because in order to register any marine asset one has to go
through rigorous background and security checks. What are the tax benefits
associated with the registration in the Cayman Islands?
Session 3:
NAMEPA

Environmental

Panel

Speakers and discussion themes:

Ongoing Trends in Shipping Innovations

How can policymakers and shipping market forces create synergy towards a
sustainable shipping industry?

What are cruise ship environmental policies, ship safety and innovations?

How can we best address the environmental challenges in salvage removal?

How can we harmonize the international shipping community for more sustainable
shipping and operations?

What is the best technology available due to the North American ECA
(environmental controlled area). Will ship owners prefer to install a scrubber or
change current engines to LNG fuelled? Or to continue burning low sulphur fuel?

Houston Shipping & Offshore Conference:

This conference brought together business executives and industry experts to discuss
pressing issues in the shipping and offshore industries. Recognized as a not to miss
conference, HSOC looks at factors that are driving these industries and what issues and
opportunities lie in the future for companies looking for insights and a competitive edge.
As Houston continues to grow in importance as a center of Shipping and Energy in the
United States, we wish to continue celebrating that growth by hosting the next major
industry-wide shipping conference in Houston.
Central target groups include representatives from the international shipping and maritime
offshore industries as well as port authorities. The Conference will have representatives
from several countries, including Norway, the Republic of Korea, and Brazil.
HSOC 2014 Topics of Discussion
Stakeholders and policy makers from several countries including Norway, Korea, and Brazil,
will gather in this event to address timely topics and give you first hand information on the
industry trends and strategic marketing directions.
The title of this years conference is Facing Opportunities and Challenges in Shipping and
Offshore Markets. We will have a program with four panels on the following topics:
Filling the Funding Gap in the Shipping & Offshore Industry
Following the exit from the industry by several traditional shipping & offshore lenders, there
has been broad speculation regarding future funding sources. The goal of this panel is to
invite participants from private equity, non-traditional lenders and other financing sources
to debate on future funding sources and impacts on the broader shipping & offshore
industry. This panel will highlight a key concern in the industry and pose the question of

comparison between traditional and alternative funding, contrasting the cost of new vs.
old funding and any other major impacts.
Staying Global: Cases of Success in Different Business Cultures
Each country brings a unique approach to shipping and offshore exploration to the table.
However, are there similar characteristics that define a common success between them? Or
is it just their special ability to make it work for their country? What defines success and
how do companies plan to keep leadership positions in the next several decades?

The Challenges of the Labor Market: How to Attract Young and Talented Professionals
The dearth of qualified professionals in both the shipping and offshore industries is well
known. So how do companies attract young talent today and what are the demands they
see confronting the industry over the next several years as more senior professionals leave
the field? Whos feeding the pipeline and is anyone making sure there is a viable pipeline of
talent able to meet rising global demand in both industries?
New Technologies and Designs in the Shipping and Offshore Business
If we take a forward look, new technologies in ship design, propulsion systems, coatings and
new technologies in energy exploration at greater depths and more hostile environments
are limited only by ones imagination. However, what is real and what is fantasy? Look at
what the experts say about the ideas and realities that are driving innovation around the
world.

Iron Ore and Coal Shipping summit Asia:

Trade commodities - iron ore coal steel maritime transportation shipping
innovations sustainability - finance and smart investments in shipping
The conference focused on the maritime transportation of iron ore and coal, making an
attempt to forecast the trends of global economy; iron ore, coal and other commodities,
production and distribution; the trading markets, shipping capacities, shipbuilding and
shipping requirements; the financing and investment climate, shipping innovation effects on
ship-values

and

the

environmental

imperatives.

This summit featured many high profile speakers from shipping companies, charterers,
traders, mining companies, steel mills, shipbuilders, ports, classification societies, financial
institutions, politicians, regulators, brokers.
Session 1:
The Big Picture - Geopolitics; the World today and tomorrow

The world economy, the global trade outlook, the financial crisis and its effect on
shipping.

Geopolitics, the switch of power from West to East?

The multipolar world in motion

The world economy, world energy needs, resources, geopolitics, challenges and how
it affects shipping

The role of Hong Kong in Asia and in the world

Session 2:
Global trade and commodities outlook; Supply and demand of iron ore, steel, coal and other
commodities

What are our market perceptions and expectations on commodities, trade and
shipping markets?

The view from the shipbrokers - traders analysts

Outlook for Asian demand and supply of raw materials in 2014/15

What are the market expectations for iron ore, steel and coal production and
consumption?

What are the changing routes due to different energy demands?

What is the role of emerging markets in todays demand and supply of iron ore and
coal?

How do China, Brazil, Australia and India affect the dry bulk commodities?

What are the signs of improving world market outlook?

What is the future of Coal vs other energy commodities?

The shipping market and the future Shipping Trends

What will it take for shipping to become profitable again in todays economic
situation?

Is scrapping enough to rebalance the fleet?

How do we create a more efficient shipping industry that is going to be profitable in

the long-term?

What is the criteria that charters look at before ordering a ship?

Can environmentally sound ships generate enough revenue to be profitable?

Is dry bulk maritime transportation an opportunity?

Where do we see freight rates going in the near future?

How can we create synergy between the shipping profits and shipping sustainability?

The derivatives market in drybulk shipping; is it still relevant? Does it do a good job
of hedging risk?

Session 3:
Ship Finance and Investments. Where is ship finance capacity for new business?

The macro economic outlook of China and unique opportunities for HKEx to operate
in an era of transition

Has the crisis fundamentally changed the future of global ship finance picture or
not?

Where is ship finance available now and will there be sufficient finance for all?

Who can access the sources of finance

Alternative sources of finance - a picture of where else you can get finance today
other than traditional banks.

Which banks are active now and who will be active in the future?

Finance resources; Where are our banks? Private, public equity

Session 4:
New ships - new Fuels Environment business, Innovations, technological advances,

How will shipping be in the next 20 to 30 years?

Is LNG the fuel of the future?

Does investing in eco-ships make economic sense?

Is the shipping industry prepared for the ECAs worldwide?

Will Hong Kong become the next ECA and if yes when?

Who has the ability to finance the new shipping technology?

What are the pros and cons of using eco-ships?

Who will benefit from the use of scrubbers?

Is now the right time to implement these regulations?

Maritime security services in west Africa ISO 28007 a lifeboat for the ship owner.

Liner Shipping Conference

The term liner shipping describes the shipping service where there is an advertised regular
route and timetable for the operation of the ships. The rates charged to shippers are
normally based on a tariff. Where two or more shipping lines offer a joint service, they are
described as forming a liner conference, (also called a freight conference or shipping
conference). The members agree a set of tariffs, conference terms and conditions of
carriage, the number and type of ship each member will contribute, and the timetable for
sailings. A secretariat, often run by one of the members, will co-ordinate activities.

Dominating liner services since the first conference was established between U.K.- Calcutta
in 1875
Objective: to avoid competition
Its function includes:

price-fixing cartel on a particular route

same tariffs/surcharges and terms setting

revenue-sharing and capacity-control

Topics assessed in Global Liner shipping Conference 2014:

Analysed the potential impact of the P3 alliance

Explored relationships between carriers and forwarders: Today and

tomorrow

Assessed shippers' requirements with key perspectives from seven BCOs

Participated in the shippers / carriers speed networking session

Debated how Germany will maintain its share of the container industry

Discussed key industry issues in champagne round table breakout sessions

Networked and dined aboard the Mare Frisium in an exclusive sailing trip

Received key trade statistics and market data in Containerisation

International's Data Hub

Analysed which terminals will be best placed for 2015

Examined the future of container vessels: LNG and innovative vessel design

Consortium and Global Alliance:

Consortium/Bilateral Alliance:

Co-operative behavior where shipping firms share resources/assets in specific markets

through coordination of operations and marketing

objective: to provide efficient/ convenient services

Global Alliance/Multilateral Alliance:

cooperative behavior where more than three firms form a group in global markets rather
than specific markets and share resources/assets in wider scope in terms of operation than
consortium

Business environments affecting change in cooperative behaviors in shipping

industries:

Containerization; enabling intermodal freight transport and reducing entry barrier

into liner services

Integration of world economy and increase in international trade

Fragmentation/dispersion of production process across countries through

foreign direct investment

Customers needs for transport more diversified and cost-sensitive

Implementation of competition policy toward the shipping conference and

liberalization in airline services.

Conclusion:
These conferences are a few top rated conferences and are attended most of the region
shipping companies. These conferences helped in developing European laws for shipping
industry and helped to establish a safe way for transportation.