The Lloyd’s List Podcast: Why shipping is struggling to navigate increasingly complex risks
EIGHTEEN months in, it’s perhaps not a shocker to hear that the shipping industry is still struggling with the complexities of the ever-evolving sanctions compliance regime they find themselves navigating. But the geopolitical realities of the situation that lies ahead are now starting to hit home. Shipping is trading in an increasingly bi-polar political environment and while no risk analyst worth talking to is going to target their crystal ball settings beyond a five year horizon, there was a general consensus yesterday inside the Lloyds building during London International Shipping Week discussions, that Russia-focussed sanctions are here for the next 5-10 years minimum. The genie is not going back in the bottle on this one. Shipping can only expect the compliance complexities to increase from here on. So in today’s edition of the podcast we are exploring what that really means. When we say we’re entering a bi-polar political world does that genuinely mean that shipping is going to have to take sides in where it is prepared to trade? We’re talking about sanctions here of course, but this is more than simply looking at what trades you can and can’t do. Sanctions are a foreign policy weapon and the financial and technical services that underpin shipping have been politicised certainly, arguably weaponised. That process has reduced the markets that insurers, lawyers and banker can offer services to. It has reduced the parts that ships can access and the safety and maintenance service required to keep the global fleet afloat. And it’s also see a significant number of traders move away from the mainstream scrutiny of those well established bodies and rules that the industry has fought so hard to establish over the past 30-40 years. This is not just about sanctions – this is about the global rules based order that shipping relies on crumbling before our eyes. Speaking on today’s edition: • Mike Salthouse, Head of external affairs, NorthStandard P&I • Dr Dominick Donald, Senior advisor, Herminius • Eleanor Midwinter, Partner Wikborg Rein • Cathrine Lagerberg, Risk Advisory Senior Manager, Deloitte