How Will the United Nations (UN) Biological Beyond National Jurisdiction (BBNJ) Agreement Affect the Shipping Industry in the Future?

Park, S.J. and Kim, J., 2023. How will the United Nations (UN) Biological Beyond National Jurisdiction (BBNJ) agreement affect the shipping industry in the future? In: Lee, J.L.; Lee, H.; Min, B.I.; Chang, J.-I.; Cho, G.T.; Yoon, J.-S., and Lee, J. (eds.), Multidisciplinary Approaches to Coastal and Marine Management. Journal of Coastal Research, Special Issue No. 116, pp. 398-402. Charlotte (North Carolina), ISSN 0749-0208. The discussion on the creation of a new international maritime order to change the freedom of the high seas, which has been maintained following the adoption of the United Nations Convention on the Law of the Sea (UNCLOS), is expected to be at a fever pitch. In 2004, the UN General Assembly (UNGA) adopted a resolution establishing an ad hoc working group on the conservation and sustainable use of marine biodiversity in the Areas Beyond National Jurisdiction (ABNJ). After 10 years of discussion till 2015, developed and developing countries agreed to create "a legally binding international instrument" and United Nations' member states finally agreed to a text on the Biological Beyond National Jurisdiction (BBNJ) agreement at the resumed 5th Intergovernmental Conference (IGC), which was held in March 2023. This international new order is anticipated to limit "freedom of the high seas" and significantly impact marine use, including navigation, fisheries, marine resources development, and marine scientific research. This study analyzes the effects of this new order on the shipping industry. To analyze this impact, changes in ship operating costs were calculated for container ships, dry cargo ships, and oil tankers under the assumption that two regulations apply to certain waters of Korean import routes: a reduction of average speeds by 1 knot and a 100-nautical-mile detour. Based on scenario analysis, when freight rates are high, shipping costs will rise in all scenarios regardless of fuel oil prices. However, profitability worsens when freight rates and fuel oil prices are low. Therefore, in responding to the adaptation of the UN BBNJ agreement, it is necessary to establish countermeasures for the shipping industry and strengthen cooperation systems with international organizations related to the UN BBNJ agreement. In addition, it is vital to improving the scenario and derive accurate results by cooperating with the industry. [ABSTRACT FROM AUTHOR]