Credit crunch could compromise maritime safety

According to a recent poll of Lloyd?s List readers, some 70% of those polled have serious concerns that shipping industry safety standards will be hit by the global economic crisis. “Marine insurers and regulators are concerned about a ?flight from quality? as companies grapple with the financial impact of the credit crisis,” explains Richard Meade, News Editor of Lloyd?s List.

Freight rates have plummeted across the shipping sectors as global demand falls and in some cases rates are currently not even covering a vessel?s operating costs. The Lloyd?s List poll highlights industry fears that as economic conditions deteriorate people could be prepared to cut corners on safety. “A collective maritime industry response on quality standards is becoming more essential with each passing day ? it must be done now and not in response to a future environmental or human disaster,” insists Meade.

“Lloyd?s List believes that shipping companies must cooperate with flag states and other responsible bodies in order to prevent quality from being compromised in these difficult economic times,” says Meade. “The stakes could not be higher as a shift towards substandard quality will ? without doubt – spell disaster for the environment and for our industry.”