John Keynes has proved that income will have more unstable tendancies versus consumption. A prime example is the aspect of digitilization in the labor force. Forbes has noted that the US Bureau of Labor Statistics forecasts a strong growth for data science jobs and that it will grow by 28% through 2026. The high salary demands of today will most likely drop to more high-to-mid average salaries over time. The shift in salary is predictable due to a strong and growing competitive market for data science. Thus, Keynes's statement is still relevant. Additionally, consumption for technology may only increase. For the factor of free movement of labor, globalization has shown that there's no need to physically move anymore (concept of the : Work From Home). So, we've have entered in the full cycle of modern era globalization, now it is only upgrading their systems. On one hand we have technology as mentioned, but where can we include the maritime industry in all of this ?
With globalization, the world economy has based its framework around fast consumption, hence making speed a big part of a profitable maritime shipping business. Now, speed could come in various forms of propulsion, but the most used one is engine propulsion. Thus, in the long term, is this a sustainable model ? Does this generate a common ground with ecosystems and all natural habitats? This is quiet a rhetorical question, since it is proven that it is not sustainable due to the major fuel consumptions and GHG or CO2 emissions. The choices the industry has made is to continuily follow and support the markets in search for profits on the short term, it was fairly predictable that the models were unsustainable in the long term. Only now and in the coming decades will we see a shift in the ways shipping is defined. Sadly in the scenario we are in, the ecological aspects and the environment as a whole will need time to recover. We are responsible for how the world is and we are responsible for what it will become.
If shipping is redefined, what will it be defined as ? Fellow readers the answer is SET Project. Although still young and very slowly gaining maturity, SET has the vision to enable a better future for shipping. As new markets are emerging with the will to push for domestic growth, green energies and innovative models; SET can be a compatible offer to represent the emerging markets. Communities are growing slowly and recognizing the unbeneficial aspects fast consumption has, and this simple realization is key for the vision of a better future.
SET would work around Low Emissions Vessels that can lead to the regeneration of marine reefs, reproduction of fish and overall a better environment in which humans are simply a part of the equation. SET Shippping can redefine how we trade, how logistics are managed, how businesses develop their markets. A great reset for a greater world, nothing less.
Nowadays, we are also seeing that shipping companies are very dependent on the cost of fuels and the costs of raw material which have skyrocketed. Therefore, all the new ships being built have to have their budgeting reviewed and even have the builds put on standby. The maritime industry as a whole is established around either great market returns in which shipyards have orders through the roof, or it is a recession based economical forecast. An example, would be ABG shipyard in India. They had great returns, but then came the 07-08 crisis and additionally had multiple bumps in the road, they did not manage to pull through. Alongside not making profit they also made as what is known as the "biggest scam in Indian history".
The maritime world has specific economics behind what is the 80% share of how goods are traded.
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