By Yang Huiwen

THE shipping industry is in for challenging times - faced with not just a global downturn in trade, but also problems such as marine pollution, piracy and a shortage of young people entering the industry.

The grim outlook was provided yesterday by the head of a global maritime body who was visiting Singapore.

'We must acknowledge that since 2004, we have had a boom in the world economy which had a most welcome impact on the shipping markets, where the dry cargo market and freight rates were extremely high for long periods of time,' said Mr Efthimios Mitropoulos, secretary-general of the International Maritime Organisation (IMO).

'So, sooner or later, there will be some kind of a decline,' he told The Straits Times in an interview.

He said no sector will be unscathed by the financial crisis and that shipping will be affected to some extent. He is here for Singapore Maritime Week.

However, Mr Mitropoulos said that shipping, which accounts for about 90 per cent of world trade, will remain the preferred mode of transport due to cost efficiencies.

The IMO, which regulates the shipping industry on issues that include safety, environmental and legal issues, is working to reduce harmful emissions such as greenhouse gases and sulphur oxide from ships.

Shipping contributed about 3.5 per cent of global carbon dioxide emissions last year, but that figure is expected to rise.

He said the IMO is 'working towards the development and adoption of a robust regime that will regulate shipping at the global level and contribute to the slowing down of climate change'.

These include deciding on whether to impose a fuel tax to cut greenhouse gas emissions or use more complex market-based instruments such as emissions trading.

The IMO hopes such moves will be enough to prevent the United Nations from imposing its own emission rules at a Climate Change Conference in Copenhagen in December next year.

The Kyoto Protocol, which expires in 2012, will be replaced by the outcome of the Copenhagen meeting.

Mr Mitropoulos said that greenhouse gas emission reductions agreed by the IMO 'should extend to all ships, no matter what flag they fly'.

Under existing regulations, only 25 per cent of the world's fleet is obliged to comply with mandatory reduction measures.

'If reductions in carbon dioxide emissions from ships are to benefit the environment as a whole, they must apply globally to all ships in the world fleet.

'To me, it seems incongruous that two ships carrying similar cargo, loaded in the same port, sailing at the same speed and having the same destination, should be treated differently simply because they are registered under two different flags.'

He is also 'very concerned about the reluctance of promising young people to join the maritime organisation'. He pointed out: 'We have to act early to prevent a situation arising where we have state-of-the- art ships but there are not enough qualified professionals to man them.'

The IMO is working to make the profession a more attractive one and to retain talent, he said. It aims to solve problems such as mistreatment of seafarers and cut down on piracy.

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This article was first published in The Straits Times on October 17, 2008.