Photo 1 A group photo of guest speakers and other guests in discussions

The 2016 SISI-KMI International Ocean Shipping Forum – Outlook of World Ocean Shipping Market and Major Hotspots in Chinese and South Korean Port and Ocean Shipping Industries in 2017, co-organized by Shanghai International Shipping Institute (SISI) and Korea Maritime Institute (KMI) was held at Shanghai Oceans Hotel on the afternoon of Nov 16.

Renowned Chinese and South Korean scholars and experts in the industry were pooled together in the forum. The event was also attended by representatives of many shipping and port enterprises from both countries. The two sides shared ideas and suggestions on the future development of the port and shipping industries. This forum eyed industry hot spots from a professional perspective, conducted in-depth profiling and put forward bold assumptions on the outlook of global dry bulk cargo ocean shipping market and global container shipping market.

At the opening ceremony, Yang chang ho, dean of KMI, Prof. Yu Shicheng, director of SISI, Park Jong Suk, deputy consul-general of the Consulate General of South Korea in Shanghai, and Xu Guoyi, director of Shanghai Combined Port Management Committee Office, delivered speeches respectively. They extended warm congratulations to the opening of the forum and wished success and productive outcomes of the forum.

                                                    Photo 2 Dean Yang chang ho is delivering a speech.

                                           Photo 3 Prof. Yu Shicheng is delivering a speech.

Photo 4 Deputy Consul-General Park Jong Suk is delivering a speech.  

                                             Photo 5 Director Xu Guoyi is delivering a speech.

After years of rigorous development, the SISI-KMI International Ocean Shipping Forum has been enjoying increased scale and influence with its level and status on a stable rise. The forum has established a broad platform for the ocean shipping sectors of South Korea and China to enhance further exchanges and cooperation, and has triggered in-depth dialogues between shipping think tanks in both countries.

This forum took place in the form of themed speeches and discussions. Four experts from China and South Korea first expounded on four fields in depth respectively and another five guests from both countries offered their input on the topics.

Li Gang, secretary and deputy secretary general of SISI, analyzed the current environment of international dry bulk cargo shipping market. At present, the global economic growth remains in stagnation. The growth rate in 2016 is expected to stand at 3.1%, down by 0.1% from 2015. The figure may rise to 3.4% in 2017. The economic growth of developed economies in 2016 will register merely 1.6%, lower than last year’s 2.1% and also lower than the forecasted 1.8% in July. The global trade growth rate has slowed down remarkably in recent years. Since 2012, the growth of world trade volumes of goods and services has been lingering around 3% due to the aftermath of the global financial crisis, less than a half of the growth rates in the previous 30 years. The world trade growth narrowly catches up with the world GDP growth, and the trade growth slowdown spreads to a wider scope. According to the market outlook forecast in 2017 based on demand and supply perspectives, Li Gang asserts that the shipping supply will maintain weak growth in the future, while the structural adjustment pace of ship types will gain speed and non-mainstream ship types will be weeded out faster. The market outlook forecasts three major scenarios: first, a midterm pickup and quick recovery; second, turbulence at the bottom followed by a recovery; and third, fluctuations at the bottom.

                                Photo 6 SISI Deputy Secretary General Li Gang is delivering a speech.

Hyung jin chun, director of the Ocean Shipping Market Analysis Center under KMI, analyzed the container shipping market trends and outlook from several perspectives such as market conditions, North American routes, European routes, and Asian routes. Currently the global trade is sluggish, discouraging investments. The global production division structure is weakened against the strengthened trade protectionism. The five major ship companies in the world enjoy rising market shares, expanding the monopoly trend. The deteriorated supply conditions gradually drag down the operating rates of ships which figure has been on the decline since 2014 when super-large ships were formerly delivered. A majority of ship companies suffered deficits in the first half of 2016. It is estimated that fierce price competition will emerge on Asia-Europe, Asia-North America and other east-west routes. To get rid of current difficulties, Director Hyung jin chun explored the mutual-benefit cooperation schemes with the present participants.

                                     Photo 7 Director Hyung jin chun is delivering a speech.

Xu Kai, director of the Shipping Information Research Office under SISI, discussed with the forum participants about what shipping big data is in the port and shipping big data study and practice aspects. Director Xu Kai pointed out the importance of data analysis methods. Only by digesting the most valuable information from the data through analysis can it be called “big data”. Otherwise, it is no more than “bunch data”. The objective of analyzing data is to ultimately serve operation decision making. At present, the port and shipping big data has been widely applied to ports, shipping, and trade sectors. Through studies on the port and shipping big data, ship companies can know the actual sailing conditions of every liner route, calculate the real voyage and fuel consumption of every route for more accurate cost accounting and the punctuality rate of every route for cargo owners as well. In terms of ship’s energy consumption and air pollutant emissions, we can measure and calculate the distribution of different concentrations of pollutant emissions and carbon emissions using the port and shipping big data. At present, this achievement is also being applied to the research for setting up China’s Yangtze River Delta and Pearl River Delta air emission control areas. In the era of big data, the port and shipping big data is playing a more and more important role in shipping development.

                                     Photo 8 Director Xu Kai is delivering a speech.

Kim geun sub, chief of Port Policy Research Office under KMI, probed into the status quo and outlook of international cooperation of South Korean ports from the aspects of domestic and foreign condition changes, impact on the port policies and South Korean port policy tendencies. He pointed out that South Korean port policies should focus on improving the international cooperation capability through strengthening the logistic functions in compliance with various port features, elevating port operation levels, building top ports, diversifying port space utilization and creating added values. In essence, foreign port development and cooperation projects should promote cooperation, supporting enterprises to “go global” and providing a system basis. At the same time, the green management of ports should be enhanced.

                                   Photo 9 Chief Kim geun sub is delivering a speech.

At last, hosted by Kang moo hyun, the former minister of Maritime Affairs and Fisheries of South Korea and the chief discussing guest of this forum, four other invited guests, namely Zhang Jieshu, deputy secretary general of SISI, Zhu Jianhua, deputy director of Expert Committee of SISI, Kim beom jung, research supervisor of Port Logistics Research Headquarter under KMI, and Hwang jin hoi, chief of Ocean Shipping Industry Research Office under KMI, together with Kang moo hyun, led the present audience in discussions and encouraged guests to carry out further interactive exchanges and discussions in future.

Photo 10 Discussing guests

This forum achieved a great success under the joint efforts of both sides from South Korea and China.