Norwegian shipowners see slowdown in hiring of pinoys as trade war drags on
A group of Norwegian shipowners might eventually hire fewer Filipinos, if the trade war between China and the United States continues to drag on.
The Norwegian Shipowner’s Association has expressed its grave concern over having a more protectionist world, where the rising costs of trade would discourage countries from doing business with one another.
The ongoing clash between the world’s two largest economies had already adversely affected global economic growth, said NSA CEO Harald Solberg, who called this a “worrying signal.”
A slower economic growth, he said, could lead to a slower demand for shipping services, and even a slower demand for new ships.
“If this trade war goes on and even with the tightening of the tariffs in the next five years, I would be very worried,” Solberg said in an interview with reporters on Tuesday.
Solberg worried that might be the start of a “deglobalized world,” which would unwind the benefits made possible by an established global value chain.
“If this trade war is the start of a reverse process, there is a possibility that this could harm shipping and recruitment over the long time,” he said.
There are around 20,000 Filipino seafarers currently employed by NSA member companies.
Earlier this month, the World Trade Organization lowered its trade growth forecasts for 2019 and 2020.
In 2019, global merchandise trade volume is only expected to grow 1.2 percent, significantly slower than the 2.6 percent growth forecast back in April. In 2020, the projected growth is now 2.7 percent, down from 3 percent.
