The Teekay Corp CEO fears the fight for
survival could have life threatening consequences if companies put health,
safety, environment and quality (HSEQ) programmes on the backburner but
acknowledged the importance of managing costs during the downturn.
“The
importance of HSEQ is true throughout the cycle,” he told TradeWinds in an
interview. “I continue to worry that with today’s economic pressures, as an
industry, someone will drop the ball, which would not be good for anyone.”
Even though the shipping segment is
notoriously competitive Evensen believes the rise and fall of individual participants
can impact sentiment and the market as a whole, which is why the
executive hopes some of Teekay’s adversaries can overcome the crisis.
“Everyone talks about how competitive
the industry is but too often people forget that we rise and fall as an
industry,” he explained. “It isn’t good for Teekay or the market in general,
for instance, when our competitors file for bankruptcy.
“What you’re talking about is an
industry’s reputation with people and investors both in and outside the space. During
earnings people will say ‘Teekay outperformed the industry’, which is great
but the industry itself has to do well, we should never ever forget that.”
Given continuous widespread media covered
of maritime disasters like the Deepwater Horizon and Costa Concordia, Evensen is
urging compatriots from all corners of the market to continue to invest in the
improvement of health and safety initiatives.
Basil Karatzas, founder of Manhattan-based
consultancy Karatzas Marine Advisors, says the likelihood of casualties, pollution and charter disputes rises
when owners stop spending money on vessel maintenance, a trend that typically
accelerates during times of market duress.
“With
freight rates at close to cash break-even and several owners low on working capital,
sometimes companies feel corners have to be cut to make ends meet,” he added in
an email exchange with TradeWinds Tuesday.
“We have seen such concerns [expressed by] charterers
and those with deep pockets like oil companies but also from creditors [with
troubled loans] and banks that in some cases are forced to step in [following]
mechanical breakdowns or could be pursued in cases of pollution.”
