Mon - Fri 8.30 AM - 5.00 PM
Weekend Closed
call us:
+94 11 2676858 +94 113642727
Nature

What is International Maritime Organization? How can an agency help to overcome the world logistics crisis?

Introduction

In a globalisation era, countries and regions are connected with businesses needing resources demanding and supplying. According to the research( see chart 1), the global trade value of products shipped worldwide in 2019 was around 19 trillion US dollars. In comparison, in 2000, this value was roughly 6.45 trillion US dollars. The growth in the value of commodities shipped worldwide reflects changes in international commerce, globalisation, and technological advancements.

One of the international trading logistics is shipping transport which is the most efficient and cost-effective way of international transportation for the majority of products; it provides a dependable, low-cost means of carrying things abroad, promoting trade and contributing to the wealth of governments and people (Introduction to IMO, 2022). As a result, it was recognised around the turn of the century that there was a need for a universal regulatory organisation that would establish laws and standards to oversee the shipping process and the industry globally.

Thus the International maritime organisation came into being.

What is IMO

The IMO is a United Nations specialised agency (UN). Since its founding, it has been the global standard-setting authority for the maritime industry's safety, security, and environmental duties.

Many countries had developed their shipping laws and treaties before the formation of the IMO to improve ship safety. However, a centralised solution was necessary because our seas are worldwide, and the shipping sector is global. The SOLAS pact, which was adopted by a few states following the Titanic catastrophe, was the first international convention of any type between nations (History of Maritime Distress Signals, 2022).

The IMO was founded in 1948 in Geneva quickly following the establishment of the United Nations, with 51 member countries signing on. However, It was not implemented until 1959 at a conference in London, the organisation's headquarters (History of Maritime Distress Signals, 2022).

What is the role of IMO?

The major objective of the International Maritime Organization is to design and maintain a comprehensive framework of laws and policies for the shipping sector and its activities, such as maritime security, safety, technical cooperation, environmental concerns, and legal matters.

The International Maritime Organization's major areas of interest The organisation has regulated the prevention of accidents, the establishment of safety standards for ships and other vessels (including design and materials) for member states to follow, the maintenance of adherence to established safety and security treaties, the prevention of pollution and other avoidable human disasters, and the prevention of pollution and other avoidable human disasters.

IMO also promotes technical cooperation among member nations by establishing an audition and monitoring process for these rules and standards, as well as monitoring liabilities and compensation in the event of a violation of any of these regulations.

There are mainly three areas that IMO measures and regulations:

The importance of the IMO's role cannot be emphasised since guaranteeing uniform safety and care is critical in preserving the global maritime industry's commercial future. As a governing organisation, the IMO has the authority to deal with administrative and legal issues connected to the measures it implements, including those that are non-compliant or are deemed to violate rules.

To whom is the IMO affiliated?

The IMO is a member of the United Nations, an international organisation created in 1945 by 51 countries devoted to advancing social development, greater living standards, and human rights.

Why are they essential in maritime?

Maritime transportation is essential to worldwide trade and the global economy. Across 80% of international commerce by volume and more than 70% of global trade by value is conducted by sea and handled by ports around the world. The global seaborne marketing is going well, aided by the 2017 global economic upswing. (Review of Maritime Transport 2018 | UNCTAD, 2018) Maritime transportation is related to several industries. Shipping conveys food, medicines, technology, and many other items. Cost-effective shipping methods are used for growth and sustainable development, particularly in developing countries.

Maritime shipping has several advantages. The significant benefit is the large capacity of ships employed for transportation. A large number of materials may be carried at the same time. The transportation route cost is inexpensive compared to other means of transportation. The sea does not necessitate massive infrastructural improvements. Except for those with a vulnerable geographical location, no country does not employ marine transport for commerce with the rest of the globe.

What IMO has done in the past?

The International Ship and Port Facility Security (ISPS) Code, which was made required by SOLAS amendments agreed in 2002, is one example of the new, comprehensive security system for international shipping that went into effect in July 2004. This emphasis on maritime security began in the 2000s.

The International Maritime Organization updated the 1988 Convention for the Suppression of Unlawful Acts against the Safety of Maritime Navigation (IMO). Under the 2005 SUA Protocols, which are related to it, a State Party also has the right to board a ship flying the flag of another State Party if the requesting Party has reason to think that the ship or someone on board the ship is currently, was previously, or is about to engage in illegal activity.

As IMO instruments went into effect and were implemented, technological advances and lessons gained from accidents resulted in adjustments and amendments being enacted.

The emphasis on implementation remains, with the technical cooperation programme serving as a fundamental strand of IMO's activity.

By giving an audited Member State a thorough and unbiased evaluation of how well it administers and implements those mandatory IMO instruments covered by the Scheme, the IMO Member State Audit Scheme, which became mandatory under several key IMO instruments on January 1, 2016, will play a crucial role in assisting effective implementation.

(Brief History of IMO, 2022)

How can today’s world negatively contribute to maritime?

Covid - 19

Over the last few years, the COVID-19 epidemic has tremendously influenced the maritime sector and seafarers. IMO is working relentlessly to develop answers at all levels.

Travel restrictions imposed by governments worldwide and the limited availability of vaccinations have created substantial barriers to crew changes and seafarer repatriation. This has humanitarian and safety consequences. Seafarers must be recognised by their home countries and the International Maritime Organization (IMO) as essential workers in order for them to travel between the ships that serve as their workplace and those countries.

With low supplies, the World Health Organization (WHO) has designated mariners as one of the transportation workers to get COVID-19 vaccine. The WHO's Strategic Advisory Group of Experts on Immunization (SAGE) updated guidance for Stage II of its vaccine roadmap (July 2021) states: "Seafarers and air crews who work on vessels that carry goods and no passengers, with special attention to seafarers who are stranded at sea and prevented from crossing international borders for crew change due to travel restrictions." (Coronavirus disease (COVID-19) Pandemic, 2022)

The International Maritime Organization (IMO) has formed a Seafarer Crisis Action Team (SCAT) to assist seafarers in various urgent situations.

War in Ukraine

The war has caused considerable interruption to global shipping and is anticipated to intensify continuing supply chain disruption, port congestion, and crew difficulties caused by the Covid-19 epidemic.

So far, the war has significantly impacted vessels operating in the Black Sea and trade with Russia. Due to the fighting and a Russian naval blockade of Ukraine, Ukraine's major ports, including Odesa, were blocked. Over 70% of the country's exports are shipped, including 99% of grain exports. Hundreds of ships were stranded in ports or at anchor, leaving hundreds of Russian and Ukrainian crews with no way to escape or return home. Access to vital marine services has also been restricted to the Russian navy. Several ports have stopped providing bunkering services to Russian-owned or flagged vessels. Engine manufacturers, maintenance businesses, classification societies, and insurers have stated that they will no longer support Russian ships. The war is also affecting shipping outside of the conflict zone. In particular, sanctions imposed by the United States and the European Union constitute a considerable compliance burden for shipping businesses and insurers. Many Western firms have deliberately ceased dealing with Russia, resulting in a complicated and ambiguous legal environment for contracts, including insurance. (Impact of Ukraine war on global shipping, 2022)

Global Economic Crisis

The maritime sector has been hard hit by various geopolitical impediments, including the US-China trade war. Because geopolitical disputes frequently spill over directly or indirectly into commercial flows, commerce cannot be seen in isolation from more extensive geopolitical processes. The International Monetary Fund (IMF) believes that for future growth, the industry should look to emerging and developing nations. (Top 10 issues concerning the future of shipping, 2019) "Growth in advanced economies has been declining since the mid-2000s." "Such a scenario impacts every maritime industry throughout the world - in various ways, of course," the IMF writes.

Climate Crisis

The study discovered that climate change would have an impact on the marine industry in both positive and negative ways. Climate change-driven sea-level rise, rising sea-surface temperatures, and an increase in the frequency of extreme weather events will influence the expansion of the maritime industry. Thus, it would lead to decreasing in shipping security.

How can an agency help to overcome the world logistics crisis?

According to DHL, a German logistics company, it gives digitalisation, customer experience, future of work, diversity and inclusion and sustainability as global logistics solutions in the future (DHL, 2019).

Digitalisation

Technology is altering how people connect, live and work. Some of us don't even consider how computerised our lives have become. The wristwatch tracks our sleeping habits, the smart coffeemaker in the kitchen produces a fresh cup of coffee when we wake up, and the smartphone in our hand keeps the world at our fingertips - or just a voice command away. Technology has enabled us to mould the future, create new solutions and improve people's lives. However, it is critical to note that, while digitisation is a trend in the logistics business - and indeed in many industries - it is an evolution. And it's about people, not things or answers. It's all about how we use digital technology.

Customer experience

The customer experience is separated into three categories: technical or functional, emotional, and memorable. Nowadays, most businesses concentrate on the functional. If everything goes as planned, the consumer will be pleased: place an order, make payment, and get the product. Done. But achieving success requires much more. To keep ahead of this logistics trend, the consumer experience must be more intelligent. It takes a large team of individuals working behind the scenes to create genuinely memorable consumer experiences. That means that knowledge is just as crucial, if not more so than the movement of things. Unfortunately, information flow is frequently underestimated. No matter how well-oiled the supply chain is, we will always have to deal with operational challenges. Information may shift expectations and prevent consumers from being startled when the gap increases and the experience deteriorates. Information flow is underserved and has the potential to have a significant effect. It is a value-added service that shippers and businesses may provide in addition to the actual movement of products. And information isn't only for consumption. It must be bidirectional. For example, they are giving clients a choice to select their delivery time and place. It's a conversation - a dialogue - with the consumer. Behind the scenes, it's also a two-way street. Customer support representatives, logistics analysts, and marketing managers want this information for various reasons and to achieve different results.

Future of work

The COVID-19 epidemic has expedited what many refer to as the Fourth Industrial Revolution, and we are experiencing one of the most profound workplace upheavals in history. People, workplaces, and technology are all melting together. Right now, every company needs a plan for transitioning to a hybrid model that considers both inputs and outcomes and a management assessment system that does the same. Monitoring employees is impossible since it causes stress. Instead, organisations ahead of the logistical curve will aim to attract trustworthy personnel and develop management evaluation systems that assess outputs and simplify remote work.

Diversity and inclusion

To get there, businesses may lead on a variety of levels. Training programmes, as well as staff education and awareness, are required. Accountability and openness should be top concerns as well. Making leaders responsible and using data to drive development keeps us on track. Leaders must be role models who bring people together and treat everyone with respect and decency. The private sector may also advocate for diversity and inclusion. We can convince the rest of the world that the more varied we are, the better. This might send a strong message and inspire others to speak up.

Sustainability

A sustainable company must begin with governance, with the board serving as a role model. The most exemplary leaders reaffirm the strategic importance of sustainability and explain that it is a commercial opportunity that may provide a competitive advantage. They show that sustainability is a strategy, not merely a corporate ESG programme or a fad in logistics, by using education and awareness building as a carrot.

Making a social effect in the logistics sector entails thinking about the whole supply chain, not just my suppliers but their suppliers and suppliers. Human rights are critical, and tolerance for diversity is necessary. Many individuals discuss fostering an inclusive culture, but logistics firms must practise it and remember that actions speak louder than words. Many businesses are taking crucial steps to integrate responsible business practices. This requires significant effort, particularly in large, global corporations. Companies may develop teams, coordinate across departments and suppliers, and ensure sales teams communicate with consumers expecting more sustainable business practices with the correct governance framework in place. Job seekers are also concerned about excellent government. Young people, in particular, are increasingly checking if a firm is sustainable before applying for jobs.

Sustainability should include environmental preservation, social responsibility, and strong corporate governance, according to the trend in the logistics sector and beyond. However, and this is critical, it must be much more than an ESG programme. This logistical trend is much more than a fad. It is about guaranteeing a future for ourselves and future generations. Companies that see it as an opportunity will be the ones to pave the road for a more sustainable future.

References