FREIGHT RATES

It has long been the contention of IMIF that the ultimate requirement is for freight rates to reach a proper level. For years statements have been made in this regard and I quote below one that I made on behalf of IMIF in 1989.

"The message should he confirmed that every economic activity deserves its just reward. The sea transport element of any commodity is, almost without exception, ridiculously low and the cargo owners do not ultimately prosper by having a shipping industry that is losing money.

On the whole we have a shipping scenario where only the 'bottom line' (a cheap rate) counts and no premium is paid for first class ships or management. This will ultimately face responsible professional shipowners with the choice of lowering their standards or going out of business altogether. No one - least of all cargo owners will in the long term benefit from such a state of affairs."

There are now other initiatives around and members will be aware of the 'MSR' principle elaborated by Paul Slater (MSR standing for Minimum Safety Rate) and of a recent report prepared by Hans Peters of The World Bank who predictably points out that the finance will not he available for rejuvenating the world fleet unless freight rates increase markedly.

All the things we have been talking about over the 25 years of IMIF's existence (scrapping initiatives, sub-standard ships, Port State Control etc etc) have in the end been aimed at improving freight rates, with subsequent benefits to all the Maritime Industries.

I think that this should be one of our main initiatives. I suggest our members should examine all the schemes being put forward and throw the weight of IMIF behind the hardly original concept that shipowners must be paid a proper rate for the services they are offering