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Bahrain. The objectives of ASRY cover the
building, repair and maintenance of all types
of ships including tankers and other marine
transport vessels that are related to the shipping
of hydrocarbons. This reinforces the strategic
dimension of OAPEC joint ventures and the
special attention given to the shipping sector.
The petroleum shipping sector is directly
affected by the world oil market developments.
The current fall of oil prices contributed to
a drop in the profits of the Arab petroleum
shipping sector. It caused fluctuation of crude
oil freight index from theArabian Gulf towards
the East via giant tankers of 230-280 thousand
DWT of load.
Navigational data recorded in 2015 indicate
that some oil traders have chartered tankers to
store crude oil due to the abundant oil supplies
and low prices hoping to make profits once
oil prices recover in a repetition of the 2009
scenario. United Nations Conference on Trade
and Development (UNCTAD)’s annual report
points out that oil freights havedropped last year
due to various factors including technological
developments in the tankers industry leading
to more fuel consumption efficiency in ships.
The sector has been influenced by economic,
climate, security, and other factors too. It is
also worth to mention at this point the risks
faced by OAPEC oil tankers due to piracy
in the Horn of Africa, which led to financial
losses.
The Arab shipping sector faces many
challenges, most significant of which are the
economic challenges. The sector suffers from
weak contribution of the Arab private sector
due to low participation of banks in funding
maritime services and shipbuilding projects,
the discrepancy between operational fees and
wages and the level of the provided navigational
services. This is in addition to legislative
challenges as a result of administrative and
customs restrictions, as well as the differences
between administrative systems from one
country to another.
Current shipping developments call for
more coordination and cooperation between
Arab countries in developing Arab ports, and
unifying economic and legislative procedures,
in order to face mutual challenges and make
more progress in this vital sector of promising
cooperation betweenArab countries, and boost
the Arab countries’ presence at international
and regional organizations related to the
shipping industry so that they can clarify their
stances and defend their interests, as well as,
promote cooperation with the international
community. This in itself has been a vision
and a goal called for by many Arab economic
conferences and summits.
While observing the developments in the
petroleum shipping sector, OAPEC Secretariat
General appreciates the efforts of its member
countries and joint ventures in this regard, and
hopes that the current economic conditions of
the world’s petroleum market, which affected
all petroleum sectors including transportation
and shipping, will improve. It also hopes that the
private sector’s share in the shipping sector will
increase in a way contributing to the mitigation
of economic and administrative burdens at
governmental departments. The organization
also hopes to make use of international expertise
in the shipping sector to improve it.