Unsettled Times Annual Report 2 Contents
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17 Unsettled times annual report 2 Contents Foreword 5 Key figures Shipping Industry 6 Entrepreneurship and Economy 9 Employment and Manning 12 Recruitment and Education 17 Interview with Presidents 20 Climate and Environment 22 Safety and Security 29 annual report 2017 | 3 4 Foreword Welcome to the Royal Association of Netherlands Shipowners 2017 Annual Report. Just as the sea often rough and stormy, it was once again an unsettled year for the Dutch shipping industry. It is not only businesses that have experienced a After almost ten years of calling for sufficient turbulent year; a lot has happened within the KVNR standards of security against piracy for Dutch ships too. We celebrated the 25th anniversary of our and their crews sailing through the Gulf of Aden, an founding; marking the occasion in style on board the crucial moment occurred in the political arena. In SS Rotterdam in June. The then KVNR president March 2018 the Dutch House of Representatives Tineke Netelenbos presented the anniversary book adopted a bill for armed private security detachments. ‘Forward full throttle’ to Her Royal Highness Princess Now the matter is in the hands of the Senate mem- Margriet, whose presence was particularly apprecia- bers, who will hopefully also support the proposal so ted by the Dutch shipowners present. that Dutch seagoing vessels and their crews will receive adequate protection to navigate safely in all Tineke Netelenbos is described here as ‘the then’ circumstances. KVNR president because changes to the KVNR management structure have led to a new way of filling What else does 2018 hold for the shipping industry? the role of president. Upon leaving her position as As far as we are concerned, it will be a year of econo- president, she was appointed honorary member of mic recovery, accident prevention and sustainability. the KVNR in recognition of her efforts for the Dutch For example, regarding the latter, we are conducting shipping sector since 2008. intensive consultations with the relevant parties about the reduction of CO2 emissions from shipping. Board members Karin Orsel (from MF Shipping Group) and Sibrand Hassing (from Holland America However, this is just a small part of our work. This is Line) took over the president’s gavel as co-presidents. why we invite you to turn the page and continue Also at the management level, there has been a reading about entrepreneurship, safety, the environ- significant change. Martin Dorsman left the KVNR to ment and the employment market in the Dutch become the secretary general of the European shipping industry. umbrella organization ECSA in Brussels. By now, there is a new managing director and we are setting We wish you a prosperous 2018. course for the coming years. 2018 will be a year of Annet Koster and Guido Hollaar closure as well as new initiatives in many areas. KVNR Management Team annual report 2017 | 5 THE DUTCH SHIPPING INDUSTRY NUMBER OF SHIPS ADDED VALUE Direct Indirect 1,4 € 1 billion billion 2.012 1.059 € 2,4 billion Dutch Management Dutch flag Total 6 NUMBERS 2016 EMPLOYMENT FIGURES 7.506 4.895 Dutch nationals Dutch seafarers 29.705 On shore and on board 22.199 2.611 Foreign seafarers On shore personnel annual report 2017 | 7 KVNR Autumn members meeting Policy advisor for legal and tax affairs Lodewijk Wisse talks about the zero VAT rate for deliveries of goods and services to seagoing vessels. After lobbying by the KVNR, this parliamentary bill has been amended and will enter force in one year’s time. 8 Entrepreneurship and Economy Despite improvement in the overall economic climate, the cruise industry is in excellent health. While the bulk 2017 was not a particularly strong year for Dutch sector has not had a bad year, a comprehensive and shipping. However, there are some positive signs to stable recovery has yet to be seen. The tanker shipping be seen. For example, although still low, freight rates industry is still suffering from overcapacity, and showed slight improvement. And although there are businesses are still anticipating the recovery of oil and relatively few new ships, 2018 could still become a year gas. Although some of these signs are indeed optimis- of recovery. For example, one maritime branch that is tic, the recovery and stabilisation of most sub-sectors doing well is the cruise industry. With positive growth is not enough to allow talk of a prosperous Dutch rates, global expansion and strong demand for 2018, shipping industry. annual report 2017 | 9 Postponing the adjustment of zero VAT rate Netherlands does not introduce stricter regulations On the subject of tax, the change to the zero VAT rate than its neighbouring countries. for seagoing vessels is the most striking one. In current VAT legislation, it is permitted that all delive- Maritime Strategy Work Programme ries of goods and services to seagoing vessels are The Maritime Strategy Work Programme was signed charged 0% VAT. The only criterion is that these in February 2018. This programme will strengthen the services are to a ‘sea-going vessel’. However, in a cooperation between the maritime sector and the procedure against France, the European Court of Dutch government and combine the current maritime Justice (ECJ) has ruled that this is too broad an policy intentions of the Minister of Infrastructure and interpretation of the European VAT Directive. As a Water Management. The most relevant aspects for the consequence, the ECJ has ruled that a seagoing vessel shipping industry are the shipping register and the must actually operate on the high seas. The European (economics of) sustainability issues. This includes Commission has since informed the Netherlands inter alia CO2 reduction in international shipping, the government that this additional detail is absent in sustainability fund for shipping, and new financing Dutch VAT legislation and must therefore also be models for sustainability targets. The KVNR is included. The Cabinet subsequently made its initial committed to increasing sustainability, with a strong proposals to address this issue, and due to substan- shipping sector as the starting point. Please note that tial implementation problems, the KVNR has reported this Annual Report has a separate section devoted to this to the House of Representatives. At the end of environmental issues. 2017, the House of Representatives adopted a proposed amendment that allows for a postpone- The future of the Dutch shipping register ment of one year. In the coming year, the KVNR will It is imperative that the Dutch shipping register be work with the Ministry of Finance and the Tax Authori- modernised. As well as the registration process being ties to identify and solve any implementation pro- a well-oiled machine, there are numerous other ways blems and administrative burdens. The aim throug- to ensure that the Dutch flag is the natural choice for hout this process will be to ensure that the shipowners. To an honorary member Long-serving member of the KVNR Secretariat Marijke Harberts (with 44 years in service!) addresses resigning director Martin Dorsman, his family, and members. For his contribution and service to the Dutch shipping industry, Martin was appointed honorary member of the KVNR by Co-President Sibrand Hassing on behalf of the members. 10 • High standards of service provision, Spotlight 2018: realization of a Brexit deal? • Cost competitiveness, Following the Brexit referendum in the UK on 23 June • Rapid inclusion of international legislation, 2016, the British government informed the European • No additional national legislation affecting Commission on 29 March 2017 its desire to leave the international legislation. EU. Two years after that date, on 29 March 2019, Brexit will be a reality. The EU and the UK are cur- This is not only important for Dutch shipowners, but rently negotiating the so-called divorce terms and is also beneficial to the Dutch maritime business their future trade relationship. Because the UK is the climate and strengthens the sector as a whole. To this Netherlands’ third largest export destination, the end, the Minister of Infrastructure and Water Manage- outcome of the Brexit deal is of great importance to ment has proposed to outsource the promotion of the Dutch shipping industry. Therefore, in 2017, the the Dutch register and the acquisition of new tonnage KVNR began identifying the problems and opportuni- to a commercial party. The KVNR has lobbied strongly ties for ferry, short sea and offshore services in a for a smoother and more appealing register, and European context. This will continue in 2018 with the continues to do so. After all, the success of the Dutch goal that Anglo-Dutch trade continues as much as economy is determined in part by the success of possible while keeping new customs formalities or Dutch shipowners. (phyto) sanitary and veterinary checks to a minimum. annual report 2017 | 11 Employment and Crews Development in the labour market its contribution to solving various bottlenecks in the Despite the on-going economic situation, the number Seafarers Act. This includes the issuing of a Certificate of Dutch seafarers has increased slightly. Moreover, of Receipt or Application (CRA) resulting from an levels of unemployment among Dutch seafarers has application for recognition of a foreign tanker certifi- stayed low. Although, in general, the labour market cate. It is also important that the relevant legislation can be described as relaxed, this is far less the case allows more leeway in issuing experimental sailing for the higher-ranked engineers. A positive develop- licenses, which will facilitate innovative developments ment is that almost all of the captains and officers in the manning matters. who lost their jobs as a result of the bankruptcies of Flinter and Abis have found work with other Dutch Various aspects of crew legislation were modified in shipping companies.