Forum aiming to create novel ecosystem for shipping and aviation

The 2024 North Bund Forum, which kicked off on Tuesday, is looking to create a novel ecosystem to nurture growth and collaboration in the shipping and aviation industries.

The forum, hosted by China's Ministry of Transport and Shanghai's government, aims to provide an international, high-end and professional platform for exchange of views and insights.

The opening ceremony was held at the Grand Halls in North Bund, Hongkou District, and this year's event, themed "Digital, Smart and Green: Co-creating a New Ecosystem of Global Shipping and Aviation," gathered 150 representatives from leading global shipping and aviation enterprises and institutions.

More than 10 key achievements in high-end technological progress, shipping services, policymaking as well as country-level cooperation were released during the ceremony.

Shanghai and the Ministry of Transport a signed a "Memorandum of cooperation on Building a World-leading International Shipping Center."

The fourth memorandum signed by the ministry and the city outlines goals such as building shipping hubs, upgrading shipping services, promoting green, smart, and safe development in shipping, enhancing the influence of the Shanghai International Shipping Center, and strengthening cooperative organizational support between the ministry and the city.

Gong Zheng, Shanghai's mayor, emphasized at the opening ceremony that the city is striving to become a highland for advanced shipping services, and an industry that is digital, innovative, and green.

The three-day event includes two main forums and five themed forums. The two main forums on Tuesday afternoon discussed tackling uncertainties through high-quality development in the shipping industry and shaping the future of civil aviation by using digital and intelligent means.

At the North Bund International Shipping Forum, Wan Min, board chairman of China COSCO Shipping Corporation Limited, said the global shipping industry is entering a new phase of transformation and development.

"By leveraging the certainty of our own sustainable development, we can address external uncertainties and ensure the stability of the global supply chain," Wan said.

Five themed forums will be held over the next two days, focusing on dialogue and exchange in areas such as maritime traffic safety, digital intelligence, green and low-carbon technologies, maritime arbitration, and financial insurance.

New attempts in maritime arbitration

Among the 11 key achievements launched during the opening ceremony, one highlights China's first maritime arbitration case with both parties from overseas.

The case was a dispute over crew management service contracts on international routes between two overseas companies registered in Shanghai.

After the dispute arose, the two reached an agreement, choosing Shanghai as the place of temporary arbitration and the North Bund as venue for the hearing. An expert with high reputation and influence in the international shipping industry was selected to serve as arbitrator.

After the arbitration court was formed, they followed agreed procedures and held a hearing. Following the hearing, a final ruling legally binding on both parties was made.

In foreign countries, temporary arbitration is always the first choice for resolving maritime disputes, while institutional arbitration is only selected for complex commercial disputes.

However, in the past, China only had institutional arbitration without relevant rules and systems for temporary arbitration.

"The case is a new attempt and innovation on temporary maritime arbitration," said Liu Yang, a chief representative of the International Chamber of Shipping Shanghai Representative Office.

At the opening ceremony, Mayor Gong also said the city will accelerate the innovation of maritime arbitration rules and regulations, and explore a temporary arbitration system that suits China's national conditions while being compatible with international standards.

Digital and greener

During the forum, Shanghai Port and the Hamburg Port announced the establishment of the Shanghai Port-Hamburg Port Green Shipping Corridor, aiming to cut carbon emissions by collaborating with stakeholders such as technology and equipment providers, energy suppliers, shippers, terminals, and shipping companies.

This collaboration strives to achieve carbon neutrality and promote green development among vessels from the two ports as soon as possible.

A digital supply chain product, Supply Chain Control Tower, which is developed by China COSCO Shipping Corporation Limited, was launched during the forum.

Gene Seroka, executive director of Los Angeles Port, said it is important to digitize the supply chain and reduce the pollution between Shanghai Port and Los Angeles Port.

"Using digital information can help us prepare for cargo coming to us 14, even 21, days before the vessel sails from Shanghai," Seroka said. "That gives us time to prepare our great workforce, land and machinery to capture the cargo and move it smoothly.

"The trade between our two is so great in Los Angeles. About 45 percent of our trade is with China," Seroka said.

"The work on future measurements is from how much cargo and trade we can raise up to how much pollution we can bring down."

In January 2022, Shanghai Port and Los Angeles Port jointly initiated the establishment of the green shipping corridor, aiming to achieve the cleanest and lowest-carbon mode of port-to-port cargo transportation between the two ports.