Shocking paper about the industry that handles over 80% of global goods trade: the maritime shipping industry: papers.ssrn.com/sol3/papers.cf… by Guillaume Vuillemey
The paper documents what happens to "end-of-life ships"...
thread 1/
The paper documents what happens to "end-of-life ships"...
thread 1/
"almost all ships globally are dismantled in poor environmental conditions after being “beached” on the shores of Bangladesh, India or Pakistan"
Moreover, "a fast-growing number of shipping companies use “last-voyage flags”...
2/
Moreover, "a fast-growing number of shipping companies use “last-voyage flags”...
2/
... most likely in an attempt to hide such dirty practices: ships are sold to a third party just for the last voyage to a beaching yard.
In doing so, shipping companies get paid for the value of a ship’s raw materials ...
3/
In doing so, shipping companies get paid for the value of a ship’s raw materials ...
3/
...but do not assume any of the responsibilities associated with toxic wastes or oil residuals (which end up at sea).
While last-voyage flags were close to non-existent in the early 2000s, they represented 55.2% of all end-of-life ships globally in 2019"
4/
While last-voyage flags were close to non-existent in the early 2000s, they represented 55.2% of all end-of-life ships globally in 2019"
4/
"the six most-popular last-voyage flags are primarily flags that did not exist in the early 2000.
The most striking example is the one of Palau, an island with a population below 20,000 inhabitants and a capital city below 300 inhabitants...
5/
The most striking example is the one of Palau, an island with a population below 20,000 inhabitants and a capital city below 300 inhabitants...
5/
... Its ship registry represents less than 0.001% of the world fleet, but 59.5% of last-voyage flags in 2019.
In other terms, it is likely that this registry has been created specifically with the purpose of allowing shipping companies to evade end-of-life responsibilities"
6/
In other terms, it is likely that this registry has been created specifically with the purpose of allowing shipping companies to evade end-of-life responsibilities"
6/
The paper points to a dark side of globalization:
"the drop in transportation costs [that facilitated globalization] was partly achieved via the evasion of shipowners’ responsibilities, including environmental liabilities"
As a result, "globalization may have gone “too far“
7/
"the drop in transportation costs [that facilitated globalization] was partly achieved via the evasion of shipowners’ responsibilities, including environmental liabilities"
As a result, "globalization may have gone “too far“
7/
Read the full paper here:
Evading Corporate Responsibilities: Evidence from the Shipping Industry papers.ssrn.com/sol3/papers.cf…
A very important work by Guillaume Vuillemey @HECParis (and a great example of #whateconomistsreallydo)
end/
Evading Corporate Responsibilities: Evidence from the Shipping Industry papers.ssrn.com/sol3/papers.cf…
A very important work by Guillaume Vuillemey @HECParis (and a great example of #whateconomistsreallydo)
end/
• • •
Missing some Tweet in this thread? You can try to
force a refresh
