What on earth is the significance of Ships and the Maritime industry in our lives?

‘I understand why there are taxis and trains, people need to commute to get to work and so forth. However, Sharon could you please help me understand why ships are important, what’s their significance? I’ve watched Titanic and Pirates of the Caribbean and I just don’t understand what is your obsession over these gigantic toys.’

Very well you curious soul, let me simplify this for you. In this article, I will help you understand the significance of Ships and the Maritime industry in our lives.

I have observed that many people who read my posts about the Maritime industry did not previously have any knowledge or awareness of the existence of this industry or better yet, had no understanding of how it operates and its importance to the global and national economy, as well as to our day to day lives. I agree, there are interesting practices within the industry that always catch the attention of people when I talk about the Maritime industry, and one of those practices is what I wrote about in my last week’s article: Pirate Activities.

However, did you know that amongst others, the fundamental reason for the existence of this industry is to advance international trade and generate income? The interesting question is, on whose behalf is this income generated, would it be shocking if I said members of the community also benefit from it? Anyway, keep scrolling!!!

Yes, ships collide and are sometimes attacked by Pirates and at times even sink, all of which may require legal expertise and policy development to regulate such incidents, but at the end of the day, ships are another mode of transportation, and their main objective is to advance business activities and ultimately generate income for their owners. Of course, there are warships and patrol vessels etcetera, which are not primarily involved in the generation of income but rather focus on the up keeping of safety and security within the territorial waters of each State, while some ships are used for research and training purposes. Although it is true that these ships’ primary objective is to maintain safety and security, I submit that their activities are also crucial for the advancement of safe international trading; one has to be sure that they are trading in a safe environment after all.

Now, not only do ships generate income for their owners, but the government also stands to benefit exorbitantly from the Maritime industry and the subsequent operation of ships within their territory. For example, in 2013, the South African government under the Presidency of Jacob Zuma, established Operation Phakisa which seeks to achieve economic transformation in a short period of time. This operation is said to be a result-driven approach, involving setting clear plans and targets, on-going monitoring of progress, and making those results public.

The whole idea behind the starting point of this operation was the realization that South Africa (SA) is surrounded by a vast ocean which the government has not fully taken advantage of the immense potential of this untapped resource as it was estimated that the ocean has a potential to contribute up to 177 Billion rands to the Gross Domestic Product (“GDP”) and create just over one million jobs by 2033.

Despite this great initiative to improve the economy, it is unfortunate that SA’s oceans’ economy has not yet reached its highest potential and sadly, Coronavirus has somehow contributed to the inability, or rather slow, achievement of this objective.

It is quite easy to understand how ships generate income for their owners. The owner either charter (leases out) the ship and gets paid on a weekly or monthly basis, or the owner gets into a contract of carriage with various people to transport their goods and receive freight in return. However, which activities can the government invest in generating income should it choose to take advantage of the ocean’s potential? There are few activities that governments can invest in and these include Tourism, Coastal Development, Carriage of Goods by Sea (charging of import and export tax/duty), as well as Offshore Oil Extraction which will generate much-needed tax revenue for the government.

In addition, did you know that most of our local businesses have their stock imported from other parts of the world? The very same car you drive might have traveled from Germany to SA via a ship because not all cars are manufactured in our country. Therefore, the Maritime industry also contributes to the competitiveness of SA markets by enabling the transportation and subsequent sale of otherwise scarce goods in our country.

Compared to other transport industries such as rail and road transportation, does this mean there is a need for the government to prioritize the development of the Maritime industry? Unfortunately, there is no information provided or suggestions made that, in comparison to other industries, the Maritime industry should be given priority. However, I believe that there is a pressing need for the government to take active steps in prioritizing the fulfillment of Operation Phakisa’s objectives and thus alleviating unemployment and poverty. This submission is not premised on the basis that the Maritime industry is far more important by comparison, but merely on the fact that there is an estimated 177 Billion rand that could potentially contribute to the GDP and create millions of jobs.

Therefore, by simply reading this article, one can understand that the significance of ships in the Maritime industry is more economical than anything; and their significance to our lives is that they keep an industry that has the potential to generate millions of jobs alive, thus creating hope for the alleviation of unemployment in our society. It is unfortunate that this potential is not readily ascertainable and comprehended by many members of our communities because maritime education has not yet been prioritized beyond coastal areas.

However, it is pointless to prioritize the study of something if there are no resources available to ensure that skills acquired are utilized effectively. Perhaps, instead of prioritizing maritime education, the government can seek to work on utilizing currently available resources and mechanisms (i.e. Operation Phakisa) to strategize on how to create more opportunities that will accommodate new skills to be acquired through the maritime education programmes and ultimately creating a bigger pool for many people to participate in getting the most out of this industry, economically.

The Maritime industry will not cease to be important, at least not anytime soon, and that's simply because transporting goods by sea is far cheaper and allows for a large number of goods to be transported at a time, that's another finacial consideration. Despite arguments about the emissions produced by ships and how dangerous those are to the environment, the International Maritime Organization through the promulgation of the International Convention for the Prevention of Pollution from Ships (commonly known as “MARPOL”) has put in place regulations that should be observed by ship owners when it comes to sulfur oxide emissions from ships and this was obviously to limit pollution from ships.

Therefore, the maritime community is taking steps to deal with challenges and dangers presented by the continued use and reliance on ships, but until such a time when other toys with similar capabilities of these "gigantic toys" can be invented, ships remain extremely important in the maritime industry as well as in our lives.

In conclusion, unlike taxis and trains, one might not necessarily be able to understand the importance of ships and the maritime industry in our day to day lives because not everyone uses a ship to go to work or grocery shopping. However, I trust that this article managed to help you understand why we need ships and the maritime industry. The impact may very well not be direct, but one way or the other, we benefit from the operation of this industry and perhaps next time you wear that jean that says 'made in China' you can take a few moments to thank MV 'Algeciras' for ensuring that your clothes were transported safely.