International Journal on Criminology Volume 6, Number 2, Winter 2018/Spring 2019 | Page 73

International Journal on Criminology
actors in the sector are trapped by the logic of the minimum resale value and the
fear of losses. Building a new ship means having a minimum level of funds that
come from the sale of the former vessel.
Each surge in investment results in a wave of overcapacity with an average
lifespan of fifteen to twenty-five years or more being introduced into the sector.
This wave acts as a “capacity water hammer.” 21 If the blows from this hammer
are not repaired later by growth in freight, this instant overcapacity settles in for
the duration, becomes cumulative overcapacity, and kickstarts economic decline.
These generations of water hammers accumulate over time, independently of the
yearly economic trends, which only affect the entry of new generations of ships.
Maritime Overcapacity is a Global Problem
with Few Local Solutions
In the maritime sector, we are living a paradox. What sector better incarnates
free exchange, liberalism, and the play of speculative investments? Despite being
in overcapacity, it is a saturated, limit economy 22 where neoclassical liberal
economic hypotheses no longer apply. In principle, the least performing actors
should rationally disappear. However, the mechanisms for leaving the activity, in
other words dismantlement, are very difficult to implement. The reason is simple.
Shipyards for dismantling are saturated (because the level of overcapacity has
grown too quickly) and are located in areas of great poverty, in other words where
the dismantling costs (and standards) are minimized. The Ponzi loop of capacity
in the maritime industry means that if you are the last one in the chain, you are the
one who loses out. Dismantling must therefore not be done at a loss and must cost
nothing in the hope that reselling recycled materials covers the operator’s margins
and the cost of purchasing the ship that is to be dismantled.
In a situation of overcapacity, financial support for dismantling through
public assistance, without limiting investment, would in fact lead to accelerating
the rotation of capital and would, in the end, encourage reinvestment. This type of
action is therefore not viable. International standards are only partially effective,
and then only on maritime routes that are effectively monitored by state organizations.
Investment cannot be limited due to the internationalization of the sector
and unregulated speculative market mechanisms, the real bosses in this sector.
We therefore find ourselves in a capitalistic, totally deregulated no man’s land,
witnessing the dark side of globalization. We have no other choice but to try and
protect still healthy economic sectors from potential criminal activity or from the
criminal activities taking place in other sectors, and must also protect our sea and
21 Borrowed from the world of plumbing, a “water hammer” is when there is excess pressure in pipes
that leads to a deterioration of the equipment.
22 Also known as the economics of scarcity.
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