chamber of shipping driving economic research on the uk maritime economy
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Chamber of Shipping
DRIVING ECONOMIC RESEARCH ON THE UK MARITIME ECONOMY
Trade Association
140+ Members (Full & Associate)
860 Ships
23 Million GT
Sea Vision UK
Established 2003: to raise awareness of the sea and the maritime sector
Over 400 partners and 5,000 friends from across the maritime sector
2009: focused on raising awareness of maritime in education and promoting the job and career opportunities across the sector
Sea Vision UK
• Need for data on wider maritime economy
Established a working group of industry experts to define the maritime economy
Desk-top research to estimate size and importance based on turnover and employment
UK Maritime Economy - 2001
Sector Turnover Employment(£bn)
Oil & Gas 9.20 25,500
Shipping 5.12 31,500
Manufacturing 5.20 40,600 Shipbuilding 2.54 24,000 Marine Equipment 2.66 16,600
Maritime Services 4.54 13,800
Ports 1.69 25,000
Defence/Naval 6.66 61,500
Leisure Marine 1.61 26,378
Other 2.82 30,460 Telecommunications 0.50 Research & Development 0.61 8,040
New Technologies 0.23 Education & Training 0.14 1,100 Ocean Survey 0.10 Safety & Salvage 0.32 4,200 Minerals & Aggregates 2,000 Fisheries 0.92 15,120
TOTAL 36.84 254,738
One Voice
Brings together Shipping, Ports and Maritime business services to speak as ‘one voice’ to Parliament on key strategic and practical issues of joint concern.
The participating organisations : The Baltic Exchange The British Ports Association The Chamber of Shipping The Federation Council of the Institute of Chartered Shipbrokers Maritime London UK Major Ports Group
One Voice
• Need for more detailed analysis of the major players in the UK maritime economy
Turnover Employment Contribution to GDP Contribution to Exchequer (tax revenues)
Oxford EconomicsWorld leader in quantitative economic analysis and forecasting, and in
practical, evidence-based business and public policy advice.
International reputation built on:
The calibre of staff: more than 60 experienced professional economists and have staff in the UK, US, Singapore and France.
Rigorous, quantitative approach, including a range of models and scenario tools to answer practical questions.
Ability to answer the 'So what?' questions, helping clients to understand challenges and strategic choices.
Close links with Oxford University and a range of partner institutions, providing access to the latest thinking.
Economic Impact Analysis Assess the contribution of the ports and shipping industries to
the UK economy, focusing on four main channels:
Direct - employment and activity in the ports and shipping industry.
Indirect - employment and activity supported down the supply chain, as a result of both industries’ purchases of goods and services from UK suppliers.
Induced - employment and activity supported by those directly or indirectly employed in both industries spending their incomes on goods and services in the wider UK economy.
Catalytic – industries enabled by both industries.
Direct Economic Impact of Shipping
0
2
4
6
8
10
12
1999 2000 2001 2002 2003 2004 2005 2006 2007
Value added
Turnover
£ million
Shipping industry's annual turnover and contribution to GDP
Direct Economic Impact of Shipping
0
20,000
40,000
60,000
80,000
100,000
2004 2005 2006 2007
Non-UKRatings
Non-UKOfficers
UKRatings
UKOfficers
Onshore
Number of people
Employment in the UK shipping industry
Total Economic Impact of Shipping
.
.
.
.
Direct
+ indirect
96,000
+ induced
+ catalytic
Employment
GDP (mn)
£4,670
£3,520
£1,640
£plus
79,000 plus37,000
Direct Economic Impact of Ports
Direct Economic Impact of Ports
Total Economic Impact of Ports
.
.
.
.
Direct
+ indirect
132,000
+ induced
+ catalytic
Employment
GDP (mn)
£7,660
£6,680
£3,580
£plus
150,000 plus80,000
Combined Impact – Adjust for Double Counting
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
Individual Industries
Employment impact of both ports and shipping
industries
Shipping
Ports
Combined
Economic Impact of Maritime Sector• Maritime Services:
London is a leading global centre in the supply of business services to the international maritime shipping community. It has a 60% share of the world’s protection and indemnity insurance.
The Oxford Economics study did not investigate the maritime business service sector. It is intended to be included next year. Based on Crown Estate’s (2008) data, Oxford Economics estimates it supported 27,000 jobs and contributed £4 billion to UK GDP.
• ‘OneVoice’ – shipping, ports and maritime business services
In 2007, the OneVoice sectors directly contributed £12.7 billion to UK Gross Domestic Product
In total, they contributed around £25 billion to UK GDP. The OneVoice sectors directly employ 230,000 people. This is 0.8% of all
employment in the UK. In total, they supported around 500,000 jobs.
One Voice
Over time the intention is to extend the coverage of ‘OneVoice’ to most, if not all, of the component parts of the UK maritime economy. As that occurs, a proportionate level of economic analysis could be applied to each new sector.
However, in the interim.........................
UK Maritime Economy - 2007
2001 Estimate 2007 EstimateSector Turnover Employment Turnover Employment
(£bn) (£bn)
Oil & Gas 9.20 25,500 4.550
Shipping 5.12 31,500 9.814 38,400
Manufacturing 5.20 40,600 3.865 51,000 Shipbuilding 2.54 24,000 1.950 25,000 Marine Equipment 2.66 16,600 1.915 46,000
Maritime Services 4.54 13,800 3.006 14,100
Ports 1.69 25,000 19.402 138,000
Defence/Naval 6.66 61,500 8.185 74,760
Leisure Marine 1.61 26,378 2.952 35,680
Renewable Energy 0.671 600
Construction 0.587 6,200
Decommissioning Platforms/Rigs 0.080 1,200
Other 2.82 30,460 2.445 30,833
Telecommunications 0.50
Research & Development 0.61 8,040 0.797 10,360 New Technologies 0.23
Education & Training 0.14 1,100 0.073 350 Ocean Survey 0.10 0.104
Navigation and Safety 0.32 4,200 0.450 5,000 Aggregates 2,000 1,670 Fisheries 0.92 15,120 1.021 13,453
TOTAL 36.84 254,738 55.56 390,773