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These are the user uploaded subtitles that are being translated: 1 00:00:02,000 --> 00:00:07,000 Downloaded from YTS.MX 2 00:00:08,000 --> 00:00:13,000 Official YIFY movies site: YTS.MX 3 00:00:33,880 --> 00:00:35,830 - Our shop windows are the visible face 4 00:00:35,830 --> 00:00:37,610 of a global trading machine 5 00:00:37,610 --> 00:00:39,070 that operates behind the scenes 6 00:00:39,070 --> 00:00:41,550 to satisfy our daily needs. 7 00:00:41,550 --> 00:00:44,113 But are these windows as transparent as they seem? 8 00:00:45,140 --> 00:00:47,800 This film explores the mechanics of an industry 9 00:00:47,800 --> 00:00:50,450 that silently keeps our world spinning, 10 00:00:50,450 --> 00:00:52,620 and hides behind every tag. 11 00:00:52,620 --> 00:00:53,470 - Excuse me. - Yes? 12 00:00:53,470 --> 00:00:54,724 - You work here, yeah? - Yeah. 13 00:00:54,724 --> 00:00:55,890 - I wanted to know if you have any information 14 00:00:55,890 --> 00:00:59,110 about this jacket, about how much travel 15 00:00:59,110 --> 00:01:02,268 is involved to create this jacket. 16 00:01:02,268 --> 00:01:03,101 - Well, this jacket, as it says here, 17 00:01:05,141 --> 00:01:06,910 it's made in Bangladesh. 18 00:01:06,910 --> 00:01:08,320 - Made in Bangladesh. - Mm-hmm. 19 00:01:08,320 --> 00:01:09,480 - Okay. 20 00:01:09,480 --> 00:01:11,595 And that's all we know about the jacket? 21 00:01:11,595 --> 00:01:13,228 - Yeah, that's, yeah. 22 00:01:17,150 --> 00:01:17,983 - Where do the products 23 00:01:17,983 --> 00:01:19,810 we take for granted come from? 24 00:01:19,810 --> 00:01:21,350 - My shoes were made in China, 25 00:01:21,350 --> 00:01:23,980 my shirt was made in Indonesia. 26 00:01:23,980 --> 00:01:25,890 All these different pieces, items, 27 00:01:25,890 --> 00:01:30,360 came from places across the ocean. 28 00:01:30,360 --> 00:01:33,370 And it's really incredible that all of these products 29 00:01:33,370 --> 00:01:35,360 can be shipped around the world, 30 00:01:35,360 --> 00:01:40,086 and yet, my outfit was still really cheap. 31 00:01:42,500 --> 00:01:44,610 - Thousands of miles traveled 32 00:01:44,610 --> 00:01:46,333 for just a handful of dollars. 33 00:01:48,540 --> 00:01:51,060 - These came by ship, these came by ship, 34 00:01:51,060 --> 00:01:53,120 my shoes probably came by ship, 35 00:01:53,120 --> 00:01:56,020 microphone certainly, all this technology came by ship, 36 00:01:56,020 --> 00:01:57,312 the camera came by ship. 37 00:02:01,000 --> 00:02:02,990 - You have containers filled with scrap metal, 38 00:02:02,990 --> 00:02:05,200 you have containers filled with hay, 39 00:02:05,200 --> 00:02:06,923 you have containers filled with waste paper. 40 00:02:06,923 --> 00:02:10,300 - From the energy we use and the food we mainly consume, 41 00:02:10,300 --> 00:02:12,343 through to the gadgets we love to play with. 42 00:02:12,343 --> 00:02:14,890 - It's 90% of absolutely everything. 43 00:02:14,890 --> 00:02:17,117 - 90% of everything we consume. 44 00:02:17,117 --> 00:02:20,180 - And it all came on a shipping container 45 00:02:20,180 --> 00:02:22,382 from the other side of the world. 46 00:02:43,490 --> 00:02:47,250 - Sea shipping has taken command of our society, 47 00:02:47,250 --> 00:02:50,830 an essential link in a well-lubricated supply chain. 48 00:02:50,830 --> 00:02:54,273 It works out of sight, to quench our thirst for consumption. 49 00:02:55,410 --> 00:02:59,603 Shipping is pervasive, yet it slips under our radar. 50 00:03:01,740 --> 00:03:03,500 - We were on the navigational bridge 51 00:03:03,500 --> 00:03:05,990 for motor vessel Puelche. 52 00:03:05,990 --> 00:03:08,380 She is a container carrier. 53 00:03:08,380 --> 00:03:12,170 I'm Captain Razvan Adrianita from Romania, 54 00:03:12,170 --> 00:03:15,313 and I'm the master of this nice lady. 55 00:03:16,420 --> 00:03:19,500 - This nice lady is more than 300 meters long. 56 00:03:19,500 --> 00:03:21,430 It belongs to a German owner, 57 00:03:21,430 --> 00:03:23,333 but it flies a Liberian flag. 58 00:03:24,980 --> 00:03:27,610 Its crew's made up of just 20 men, 59 00:03:27,610 --> 00:03:29,420 capable of running this floating city 60 00:03:29,420 --> 00:03:31,240 with no other help. 61 00:03:31,240 --> 00:03:35,020 In its containers, 80,000 tons of products, 62 00:03:35,020 --> 00:03:37,670 transported from one end of the planet to the other, 63 00:03:37,670 --> 00:03:40,604 on behalf of thousands of exporters. 64 00:03:43,310 --> 00:03:45,460 What's the real story behind this industry? 65 00:03:46,550 --> 00:03:48,453 What's its impact on the environment? 66 00:03:49,410 --> 00:03:51,603 And how does it influence our lives? 67 00:03:53,000 --> 00:03:56,670 - A lot of people attribute globalization 68 00:03:56,670 --> 00:03:58,930 to differences in wages. 69 00:03:58,930 --> 00:04:02,200 They say companies are going to Southeast Asia 70 00:04:02,200 --> 00:04:04,320 because workers earn less. 71 00:04:04,320 --> 00:04:06,160 That's not exactly right. 72 00:04:06,160 --> 00:04:08,450 Workers in Southeast Asia have earned less 73 00:04:08,450 --> 00:04:11,550 than workers in Europe and in the United States 74 00:04:11,550 --> 00:04:13,140 for hundreds of years. 75 00:04:13,140 --> 00:04:15,590 And you didn't have this degree of globalization. 76 00:04:16,530 --> 00:04:18,420 What made it possible was that 77 00:04:18,420 --> 00:04:20,920 transport costs fell enormously. 78 00:04:20,920 --> 00:04:24,380 It was possible to make use of those inexpensive workers 79 00:04:24,380 --> 00:04:28,055 to make goods that could be sold in foreign market. 80 00:04:32,600 --> 00:04:36,840 - The fascinating thing about low transport costs 81 00:04:36,840 --> 00:04:39,620 enabled by the shipping industry 82 00:04:39,620 --> 00:04:43,660 is that, really, a company can treat 83 00:04:43,660 --> 00:04:45,853 the whole world as a single factory. 84 00:04:49,760 --> 00:04:52,780 - Before shipping became widespread, 85 00:04:52,780 --> 00:04:55,980 it was common to have very large factories. 86 00:04:55,980 --> 00:04:58,650 You would have raw materials coming in 87 00:04:58,650 --> 00:05:00,970 to one end of the factory, 88 00:05:00,970 --> 00:05:02,410 and you would have finished goods 89 00:05:02,410 --> 00:05:03,610 going out the other end. 90 00:05:08,320 --> 00:05:09,640 Nobody does that anymore. 91 00:05:09,640 --> 00:05:12,098 Nobody needs to that anymore. 92 00:05:16,880 --> 00:05:19,240 - Shipping has reshuffled the cards. 93 00:05:19,240 --> 00:05:22,040 Today, distances no longer exist, 94 00:05:22,040 --> 00:05:24,110 and a simple product such as a jacket 95 00:05:24,110 --> 00:05:26,333 is a result of planetary collusion. 96 00:05:31,630 --> 00:05:35,200 - When you see a made in Bangladesh tag on your clothing, 97 00:05:35,200 --> 00:05:37,920 unfortunately, you're still not getting the whole story 98 00:05:37,920 --> 00:05:41,863 of, you know, where the cotton was grown, 99 00:05:43,310 --> 00:05:47,500 where that clothing was sewn into a piece of fabric, 100 00:05:47,500 --> 00:05:48,860 or where it was dyed. 101 00:05:48,860 --> 00:05:51,410 If it has some sort of embellishment on it, 102 00:05:51,410 --> 00:05:53,170 maybe a rhinestone or a zipper, 103 00:05:53,170 --> 00:05:54,800 where were those components made? 104 00:05:54,800 --> 00:05:57,220 It may have been in a completely different country. 105 00:05:57,220 --> 00:05:59,970 All it's telling you, really, is a factory 106 00:05:59,970 --> 00:06:03,793 where it was finally, the final assembly happened. 107 00:06:05,580 --> 00:06:07,270 - The made-in tag limits itself 108 00:06:07,270 --> 00:06:09,193 to the last stage of a long journey. 109 00:06:10,160 --> 00:06:12,223 The cotton comes from the United States, 110 00:06:13,320 --> 00:06:15,083 but was woven and dyed in India. 111 00:06:17,580 --> 00:06:19,410 The buttons were made in Vietnam, 112 00:06:19,410 --> 00:06:21,253 from plastic collected in Europe. 113 00:06:24,000 --> 00:06:25,853 That was then processed in China. 114 00:06:26,800 --> 00:06:30,470 A total of 48,000 kilometers have been traveled, 115 00:06:30,470 --> 00:06:32,430 more than the Earth's circumference, 116 00:06:32,430 --> 00:06:35,730 and all that for the price of a subway ticket. 117 00:06:35,730 --> 00:06:37,730 - Now we've gotten to a point where somehow 118 00:06:37,730 --> 00:06:39,640 locally made goods are more expensive 119 00:06:39,640 --> 00:06:41,530 than things that are shipped to us 120 00:06:41,530 --> 00:06:43,180 from the other side of the world. 121 00:06:44,500 --> 00:06:47,090 To me, there's something wrong with that equation. 122 00:06:47,090 --> 00:06:51,070 Obviously, there are externalities and hidden cost 123 00:06:51,070 --> 00:06:53,594 that the consumer is not paying for. 124 00:07:02,760 --> 00:07:05,140 - The equation bares its secrets 125 00:07:05,140 --> 00:07:07,093 and it may raise some questions. 126 00:07:08,110 --> 00:07:10,690 How can this industry offer transport 127 00:07:10,690 --> 00:07:12,253 at such a low cost? 128 00:07:15,812 --> 00:07:16,950 - How you doing, sir? 129 00:07:16,950 --> 00:07:18,230 - Morning. - We're kinda lost. 130 00:07:18,230 --> 00:07:20,230 We are shooting a documentary on shipping, 131 00:07:20,230 --> 00:07:22,487 and we wanted to see if we can get into ports. 132 00:07:22,487 --> 00:07:23,490 - No, no. 133 00:07:23,490 --> 00:07:25,480 Is this guy behind you with you? 134 00:07:25,480 --> 00:07:26,517 - No. - Okay. 135 00:07:26,517 --> 00:07:28,375 - No, I think he's following us or something. 136 00:07:28,375 --> 00:07:29,525 - Hi. - How you doing? 137 00:07:30,837 --> 00:07:31,720 - You guys are filming around the port? 138 00:07:31,720 --> 00:07:32,553 - Yeah, well, we are trying. 139 00:07:32,553 --> 00:07:34,730 - You need to pull out and just pull it over there 140 00:07:34,730 --> 00:07:36,850 before the red truck. 141 00:07:36,850 --> 00:07:37,800 - I will, sir. 142 00:07:37,800 --> 00:07:38,633 - What's up, buddy? 143 00:07:38,633 --> 00:07:39,880 Are you going out today? 144 00:07:39,880 --> 00:07:42,130 - Well, we are shooting a documentary. 145 00:07:42,130 --> 00:07:44,440 - Documentary on what? - On sea shipping. 146 00:07:44,440 --> 00:07:46,170 You know, shipping bringing 90% 147 00:07:46,170 --> 00:07:47,390 of the thing we consume and everything? 148 00:07:47,390 --> 00:07:50,200 - You have any kind of permits or anything? 149 00:07:50,200 --> 00:07:51,350 - Not for inside the port. 150 00:07:51,350 --> 00:07:53,683 We'd like to get shot of the containers. 151 00:07:54,630 --> 00:07:57,637 - Can I have your license registration, sir? 152 00:08:04,220 --> 00:08:06,350 - Under strict security, 153 00:08:06,350 --> 00:08:09,690 shipping operates behind the scenes of society. 154 00:08:09,690 --> 00:08:12,700 And this impenetrability has a name. 155 00:08:12,700 --> 00:08:15,373 Shippers call it sea blindness. 156 00:08:23,710 --> 00:08:28,320 60,000 vessels constantly sail the world's shipping lanes. 157 00:08:28,320 --> 00:08:30,930 They are the blood flow that fuels a global machine 158 00:08:30,930 --> 00:08:33,369 that supplies seven billion humans. 159 00:08:35,990 --> 00:08:38,050 If 90% of what is manufactured 160 00:08:38,050 --> 00:08:39,680 or extracted from the planet 161 00:08:39,680 --> 00:08:41,880 is transported by sea, 162 00:08:41,880 --> 00:08:44,746 how can the shipping industry be so invisible? 163 00:08:50,676 --> 00:08:53,070 - The ports, because the ships have got bigger 164 00:08:53,070 --> 00:08:57,250 and they need more water in which to berth, 165 00:08:57,250 --> 00:09:00,240 they've got further out, so you can't have, 166 00:09:00,240 --> 00:09:03,130 you can't have a dock in the middle of London anymore. 167 00:09:03,130 --> 00:09:05,160 You can't have a dock in the middle of New York, 168 00:09:05,160 --> 00:09:06,750 'cause there isn't enough depth of water 169 00:09:06,750 --> 00:09:08,560 and there isn't enough space. 170 00:09:08,560 --> 00:09:11,480 So, they've built these huge ports that are often 171 00:09:11,480 --> 00:09:14,480 a mile or so at least, outside of centers of habitation, 172 00:09:14,480 --> 00:09:16,630 and it's just quite difficult to the ships. 173 00:09:18,710 --> 00:09:20,160 - And ironically, 174 00:09:20,160 --> 00:09:22,510 the reason we can't see the ships 175 00:09:22,510 --> 00:09:25,223 is because of their ever-increasing dimensions. 176 00:09:32,130 --> 00:09:33,730 - Ships get bigger and bigger and bigger, 177 00:09:33,730 --> 00:09:38,670 and it seems there's no limits now, there's no records. 178 00:09:38,670 --> 00:09:41,130 Ship size that last for more than a few months, 179 00:09:41,130 --> 00:09:42,880 every few months, there's a bigger ship 180 00:09:42,880 --> 00:09:44,080 that's just as launched. 181 00:09:45,840 --> 00:09:47,580 - The Triple E is a newborn 182 00:09:47,580 --> 00:09:49,430 in the shipping family. 183 00:09:49,430 --> 00:09:51,700 With its 400 meters length, 184 00:09:51,700 --> 00:09:54,770 the equivalent of four football fields, 185 00:09:54,770 --> 00:09:58,660 it could hold 10 airbus A320s in a row, 186 00:09:58,660 --> 00:10:03,063 or the Eiffel Tower, or why not, the Titanic itself. 187 00:10:04,160 --> 00:10:06,720 But its specialty is carrying containers, 188 00:10:06,720 --> 00:10:09,850 18,000 of them on each voyage. 189 00:10:09,850 --> 00:10:12,630 If we line them all up, the result would be 190 00:10:12,630 --> 00:10:15,523 a 120-kilometer long steel snake. 191 00:10:20,690 --> 00:10:22,380 The more a ship can carry, 192 00:10:22,380 --> 00:10:23,980 the lower the price of shipping. 193 00:10:24,880 --> 00:10:27,130 Along with the economy of scale, 194 00:10:27,130 --> 00:10:29,350 there's an invention that has largely contributed 195 00:10:29,350 --> 00:10:33,660 to reduced transport costs: the container. 196 00:10:33,660 --> 00:10:34,690 - So before, you'd have a ship 197 00:10:34,690 --> 00:10:36,800 that would take weeks and months to unload, 198 00:10:36,800 --> 00:10:40,480 'cause it would have 195,000 separate pieces of cargo, 199 00:10:40,480 --> 00:10:43,900 now you've got, for example, 6,000 boxes, 200 00:10:43,900 --> 00:10:47,249 but they can all be unloaded and loaded in 24 hours. 201 00:11:00,720 --> 00:11:02,550 - Over 500 million boxes 202 00:11:02,550 --> 00:11:04,500 transit the planet each year, 203 00:11:04,500 --> 00:11:06,490 500 million steel boxes 204 00:11:06,490 --> 00:11:08,203 about which we don't know much. 205 00:11:09,090 --> 00:11:10,350 - What do we carry in containers? 206 00:11:10,350 --> 00:11:11,350 What's on your ship? 207 00:11:12,955 --> 00:11:16,490 - Some, except for them IMO cargo, 208 00:11:16,490 --> 00:11:18,170 containers containing IMO cargo 209 00:11:18,170 --> 00:11:20,293 and refrigerated cargo, 210 00:11:21,180 --> 00:11:23,680 practically, we don't know exactly 211 00:11:23,680 --> 00:11:25,697 what is in the container. 212 00:11:25,697 --> 00:11:27,280 It can be anything. 213 00:11:35,590 --> 00:11:36,950 - Each container is filled 214 00:11:36,950 --> 00:11:39,270 and sealed by the sender himself 215 00:11:39,270 --> 00:11:41,450 before it's taken to the nearest port 216 00:11:41,450 --> 00:11:42,913 and loaded on to a vessel. 217 00:11:44,090 --> 00:11:47,780 Once at its destination, the box, still sealed, 218 00:11:47,780 --> 00:11:50,920 is unloaded and forwarded to its recipient, 219 00:11:50,920 --> 00:11:54,410 and, exceptions aside, only the sender 220 00:11:54,410 --> 00:11:57,832 and the recipient know what it contains. 221 00:12:02,040 --> 00:12:04,390 - Usually, the crew and the captains 222 00:12:04,390 --> 00:12:06,850 have no idea what they're carrying. 223 00:12:06,850 --> 00:12:09,300 These are just all containers to them. 224 00:12:09,300 --> 00:12:12,820 The ship line itself may not know what it's carrying. 225 00:12:12,820 --> 00:12:16,890 The ship line has received what's called the manifest, 226 00:12:16,890 --> 00:12:21,000 and the manifest has the information from each shipper. 227 00:12:21,000 --> 00:12:24,387 The shipper is saying, "We've sent you this container, 228 00:12:24,387 --> 00:12:28,070 "and inside, it has wool sweaters." 229 00:12:28,070 --> 00:12:30,600 It's possible that that container has wool sweaters, 230 00:12:30,600 --> 00:12:32,410 it's also possible that that container 231 00:12:32,410 --> 00:12:34,520 has other things inside. 232 00:12:34,520 --> 00:12:35,820 - It's a mystery. 233 00:12:35,820 --> 00:12:38,870 However, the United Nations Office on Drugs and Crime, 234 00:12:38,870 --> 00:12:41,040 thanks to its inspection program, 235 00:12:41,040 --> 00:12:44,023 has some idea of what these boxes may contain. 236 00:12:45,350 --> 00:12:47,100 - In the last 10 years, we have seized 237 00:12:47,100 --> 00:12:49,490 more than 100 tons of cocaine, 238 00:12:49,490 --> 00:12:53,570 60 tons of Cannabis, tons of heroine, 239 00:12:53,570 --> 00:12:57,130 tons of precursor chemicals for drug production, 240 00:12:57,130 --> 00:12:59,200 in addition to counterfeit goods, 241 00:12:59,200 --> 00:13:01,850 misdeclared goods or weapons, et cetera. 242 00:13:01,850 --> 00:13:04,190 I mean, there's no stopping 243 00:13:05,807 --> 00:13:09,523 in listing what we have seized in this program. 244 00:13:10,960 --> 00:13:12,740 - More than half of the illegal drugs 245 00:13:12,740 --> 00:13:14,420 that flood the U.S. and Europe 246 00:13:14,420 --> 00:13:16,943 arrive in these seemingly mundane boxes. 247 00:13:18,270 --> 00:13:20,800 However, these millions of steel boxes 248 00:13:20,800 --> 00:13:22,713 can conceal more than narcotics. 249 00:13:25,000 --> 00:13:27,300 The container is a perfect Trojan horse 250 00:13:27,300 --> 00:13:30,450 to bypass embargoes and fuel armed conflicts 251 00:13:30,450 --> 00:13:32,922 or terrorist organizations around the globe. 252 00:13:37,210 --> 00:13:41,370 Every port is a gap in the nation's security apparatus. 253 00:13:41,370 --> 00:13:45,570 Following 9-11, the U.S., together with its allies, 254 00:13:45,570 --> 00:13:48,120 has put in place an inspection policy 255 00:13:48,120 --> 00:13:51,290 aimed at scanning 100% of containers. 256 00:13:51,290 --> 00:13:54,313 In reality, things are slightly different. 257 00:13:55,890 --> 00:13:57,410 - Just 2% of all the containers 258 00:13:57,410 --> 00:13:59,180 in the world are inspected? 259 00:13:59,180 --> 00:14:01,980 - Yeah, in my view, you don't need to increase 260 00:14:01,980 --> 00:14:04,560 the number of containers being inspected. 261 00:14:04,560 --> 00:14:09,560 Fortunately, most people want to follow the rules 262 00:14:10,217 --> 00:14:12,323 and they are not criminal. 263 00:14:14,300 --> 00:14:17,397 - But there's still 98% that maybe-- 264 00:14:21,102 --> 00:14:24,623 - But most of the companies, most traders, 265 00:14:26,940 --> 00:14:29,400 they want to follow the law. 266 00:14:29,400 --> 00:14:30,583 They are not criminals. 267 00:14:31,560 --> 00:14:33,400 - Stonewalling or indifference, 268 00:14:33,400 --> 00:14:36,610 the authorities and the ship owners close their eyes, 269 00:14:36,610 --> 00:14:37,830 and hope a terrorist attack 270 00:14:37,830 --> 00:14:42,410 on any of the world's 4,500 ports will never happen. 271 00:14:42,410 --> 00:14:45,423 It's another symptom of the generalized sea blindness. 272 00:14:46,571 --> 00:14:48,220 - One of the biggest container shipping companies 273 00:14:48,220 --> 00:14:50,150 in the world, the biggest is Maersk, 274 00:14:50,150 --> 00:14:53,080 which most people on the street haven't heard of. 275 00:14:53,080 --> 00:14:55,210 But it's absolutely enormous. 276 00:14:55,210 --> 00:14:58,373 It has the revenues of Microsoft. 277 00:15:00,111 --> 00:15:02,120 - It's extraordinary, if you can imagine 278 00:15:02,120 --> 00:15:05,260 the equivalent of the software industry 279 00:15:05,260 --> 00:15:09,520 without knowing anything about Steve Jobs or Bill Gates. 280 00:15:09,520 --> 00:15:11,210 This is a bit like shipping now. 281 00:15:11,210 --> 00:15:15,690 It's like a very, very important part of global trade, 282 00:15:15,690 --> 00:15:18,260 but unlike software or most of the sectors, 283 00:15:18,260 --> 00:15:20,320 we know almost nothing about the companies 284 00:15:20,320 --> 00:15:22,163 that run this business. 285 00:15:23,290 --> 00:15:25,010 They don't attract any publicity, 286 00:15:25,010 --> 00:15:28,270 so even the world's number two, three, 287 00:15:28,270 --> 00:15:31,100 four shipping companies, most people don't know 288 00:15:31,100 --> 00:15:32,910 what the initials stand for. 289 00:15:32,910 --> 00:15:35,330 They've seen the names on containers 290 00:15:35,330 --> 00:15:37,400 but they don't really know much about them. 291 00:15:37,400 --> 00:15:39,240 They don't know who owns them. 292 00:15:39,240 --> 00:15:41,040 They probably don't really know which countries 293 00:15:41,040 --> 00:15:44,410 they're based in, so it is kind of an area 294 00:15:44,410 --> 00:15:48,485 of unusually obscure kind of leadership, I think. 295 00:15:57,100 --> 00:15:59,190 - Lack of transparency, 296 00:15:59,190 --> 00:16:01,670 or magic trick of gigantic dimensions, 297 00:16:01,670 --> 00:16:04,380 capable of consuming an entire fleet, 298 00:16:04,380 --> 00:16:06,496 and a pervasive industry. 299 00:16:10,110 --> 00:16:11,930 The shipping corporations and their leaders 300 00:16:11,930 --> 00:16:13,990 avoid the spotlights. 301 00:16:13,990 --> 00:16:16,730 They pull the strings of world trade remotely, 302 00:16:16,730 --> 00:16:20,680 from European and Asian financial centers, two continents 303 00:16:20,680 --> 00:16:23,960 where more than 90% of the companies are based. 304 00:16:23,960 --> 00:16:26,603 Their annual turnover exceeds $500 billion. 305 00:16:27,640 --> 00:16:30,853 That's more than the total revenue of the airline industry, 306 00:16:32,040 --> 00:16:35,440 which makes shipping a heavyweight in the world economy. 307 00:16:40,780 --> 00:16:42,280 - Most of them are privately owned. 308 00:16:42,280 --> 00:16:44,433 Most of them are family businesses. 309 00:16:45,450 --> 00:16:49,610 We are dependent on a very private, 310 00:16:49,610 --> 00:16:51,793 in both senses, industry. 311 00:16:54,220 --> 00:16:57,330 - The top 10 shipping magnates on the planet. 312 00:16:57,330 --> 00:17:00,000 These people call the shots of our society, 313 00:17:00,000 --> 00:17:03,810 and seven billion consumers depend on their companies. 314 00:17:03,810 --> 00:17:07,893 However, their names and faces are anonymous for most of us. 315 00:17:10,430 --> 00:17:12,870 John Fredriksen is an example. 316 00:17:12,870 --> 00:17:16,320 This Norwegian is worth more than $15 billion, 317 00:17:16,320 --> 00:17:19,580 and his lifestyle, although not as publicized, 318 00:17:19,580 --> 00:17:21,840 is that of a rock star. 319 00:17:21,840 --> 00:17:23,670 He never sets foot on his ships, 320 00:17:23,670 --> 00:17:26,320 and travels by private jet to the tax havens, 321 00:17:26,320 --> 00:17:28,340 where his companies are headquartered. 322 00:17:28,340 --> 00:17:30,890 - I think you can divide ship owners 323 00:17:30,890 --> 00:17:33,650 in two broad categories. 324 00:17:33,650 --> 00:17:35,870 On one side is the industrial shipping. 325 00:17:35,870 --> 00:17:38,320 They don't really take a lot of chances 326 00:17:38,320 --> 00:17:40,470 on what we call asset play. 327 00:17:40,470 --> 00:17:43,100 They don't buy ships to sell it for profit. 328 00:17:43,100 --> 00:17:47,383 They run sustainable business over long period of time. 329 00:17:51,610 --> 00:17:53,870 The other part of the industry is the guys 330 00:17:53,870 --> 00:17:57,750 that have enormous fortune, don't pay tax, 331 00:17:57,750 --> 00:18:01,790 and don't speak too much public about the business. 332 00:18:01,790 --> 00:18:03,820 And I think John Fredriksen 333 00:18:03,820 --> 00:18:07,417 is a typical figure in that sense. 334 00:18:10,180 --> 00:18:11,810 If you go to a petrol station 335 00:18:11,810 --> 00:18:13,760 and fill up your car, 336 00:18:13,760 --> 00:18:16,460 it's a high probability that that oil 337 00:18:16,460 --> 00:18:19,694 was actually transported by John Fredriksen. 338 00:18:21,810 --> 00:18:23,690 - Fredriksen owns the largest tanker fleet 339 00:18:23,690 --> 00:18:24,800 in the world. 340 00:18:24,800 --> 00:18:27,780 Mostly based in Bermuda, his companies transport 341 00:18:27,780 --> 00:18:30,690 half of the crude oil extracted on the planet. 342 00:18:30,690 --> 00:18:33,803 But until proven otherwise, this is not a crime. 343 00:18:35,130 --> 00:18:37,040 - And we had a saying that it's a crime 344 00:18:37,040 --> 00:18:38,600 behind every fortune. 345 00:18:38,600 --> 00:18:43,110 And I think John Fredriksen is a typical character 346 00:18:43,110 --> 00:18:44,793 that fits into that story. 347 00:18:47,690 --> 00:18:48,900 - In the 80s, 348 00:18:48,900 --> 00:18:52,560 he had his first jackpot during the Iran-Iraq War. 349 00:18:52,560 --> 00:18:54,880 In league with the Ayatollah's regime, 350 00:18:54,880 --> 00:18:57,010 the young businessman placed his first tanker 351 00:18:57,010 --> 00:18:59,030 at the disposal of Iran, 352 00:18:59,030 --> 00:19:01,590 thus enabling the country under embargo 353 00:19:01,590 --> 00:19:03,630 to continue selling its oil, 354 00:19:03,630 --> 00:19:05,163 and to finance its weapons. 355 00:19:06,580 --> 00:19:09,500 Later on, he made headlines in Norway. 356 00:19:09,500 --> 00:19:11,790 He had allegedly stolen $10 million worth 357 00:19:11,790 --> 00:19:14,653 of his client's oil to fuel his own vessels. 358 00:19:16,520 --> 00:19:19,373 And every time, the ship owner slipped through the net. 359 00:19:20,520 --> 00:19:23,870 If some ship owners find ways to dodge the law, 360 00:19:23,870 --> 00:19:26,283 it's because the system allows them to do so. 361 00:19:29,990 --> 00:19:33,860 - It's very easy for unscrupulous owners 362 00:19:33,860 --> 00:19:38,860 to slip out of the boundaries of law and justice. 363 00:19:40,530 --> 00:19:41,731 And the reason they can do that 364 00:19:41,731 --> 00:19:43,733 is because of the flag. 365 00:19:45,640 --> 00:19:47,490 - This flag is also known 366 00:19:47,490 --> 00:19:49,023 as a flag of convenience, 367 00:19:50,000 --> 00:19:52,780 and thanks to it, a ship owner can wrap 368 00:19:52,780 --> 00:19:55,360 a veil of secrecy around his business, 369 00:19:55,360 --> 00:19:58,210 and vanish from the legal frame of his country of origin. 370 00:20:00,930 --> 00:20:02,060 - So you've got the coast, 371 00:20:02,060 --> 00:20:04,820 you've got territorial water, 372 00:20:04,820 --> 00:20:07,700 then you might have a 200-mile exclusive economic zone 373 00:20:07,700 --> 00:20:12,700 where that coastal state will have the right to extract, 374 00:20:12,950 --> 00:20:16,100 to exploit what's in the water, what's in the seabed, 375 00:20:16,100 --> 00:20:17,230 and then you've got the high seas 376 00:20:17,230 --> 00:20:18,980 and the high seas belong to nobody. 377 00:20:21,060 --> 00:20:23,050 And everybody has to follow certain rules. 378 00:20:23,050 --> 00:20:24,457 Everybody has his flag on a ship 379 00:20:24,457 --> 00:20:26,810 and that flag represents a sovereign state, 380 00:20:26,810 --> 00:20:29,110 and while that ship is in the high seas, 381 00:20:29,110 --> 00:20:31,790 then it's the responsibility of that sovereign state, 382 00:20:31,790 --> 00:20:34,223 and the laws of that sovereign state should apply. 383 00:20:36,980 --> 00:20:38,440 - Once on the high seas, 384 00:20:38,440 --> 00:20:40,930 200 nautical miles from any coast, 385 00:20:40,930 --> 00:20:44,270 a ship is subject to the laws of its flag's country. 386 00:20:44,270 --> 00:20:46,580 However, most Greek, Japanese, Chinese 387 00:20:46,580 --> 00:20:49,220 and German ships are registered in Panama, 388 00:20:49,220 --> 00:20:53,000 Liberia, the Marshall Islands, or Mongolia. 389 00:20:53,000 --> 00:20:54,730 This way, they slip away from the laws 390 00:20:54,730 --> 00:20:56,390 of their country of origin, 391 00:20:56,390 --> 00:20:59,158 a move that can be very rewarding. 392 00:21:02,510 --> 00:21:04,360 - For example, I'm a ship owner, 393 00:21:04,360 --> 00:21:07,240 I'm looking to flag my ship, 394 00:21:07,240 --> 00:21:09,180 I don't want to use my own country's flag, 395 00:21:09,180 --> 00:21:10,410 'cause I am British, 396 00:21:10,410 --> 00:21:12,620 so I know that there are certain taxes, 397 00:21:12,620 --> 00:21:14,750 I know that there are certain requirements 398 00:21:14,750 --> 00:21:19,200 regarding labor, minimum wage, things like that. 399 00:21:19,200 --> 00:21:20,800 So, I don't want that hassle. 400 00:21:20,800 --> 00:21:22,990 So, I think, okay, well, let's go online 401 00:21:22,990 --> 00:21:26,380 and I'll end up flagging to, I don't know, 402 00:21:26,380 --> 00:21:28,000 the Marshall Islands, so, 403 00:21:28,000 --> 00:21:30,290 Mongolia, which doesn't even have a coastline, 404 00:21:30,290 --> 00:21:32,210 or Bolivia, also doesn't have a coastline. 405 00:21:32,210 --> 00:21:35,220 So, let's say I choose a Bolivian flag, 406 00:21:35,220 --> 00:21:37,440 I can probably register in 24 hours 407 00:21:37,440 --> 00:21:39,380 and certainly got their requirements 408 00:21:39,380 --> 00:21:40,400 as to minimum wage. 409 00:21:40,400 --> 00:21:41,840 I have lower taxes. 410 00:21:41,840 --> 00:21:45,062 I have a much smaller wage bill for my crew. 411 00:21:48,430 --> 00:21:50,260 - And a simple piece of fabric 412 00:21:50,260 --> 00:21:52,248 can reap massive returns. 413 00:22:14,560 --> 00:22:17,010 In their frantic race to cut down cost, 414 00:22:17,010 --> 00:22:18,650 ship owners have found these flags 415 00:22:18,650 --> 00:22:20,350 to be a major asset. 416 00:22:20,350 --> 00:22:23,460 Each year, they gather in flags of convenience fairs, 417 00:22:23,460 --> 00:22:26,260 where countries offering compliant regulation packages 418 00:22:26,260 --> 00:22:28,310 promote the benefits of their flags, 419 00:22:28,310 --> 00:22:32,524 and make successful business deals between cocktails. 420 00:22:39,470 --> 00:22:41,342 - We flag ships in Marshall Islands, 421 00:22:41,342 --> 00:22:42,940 administrator. 422 00:22:42,940 --> 00:22:44,790 We're the third largest in the world. 423 00:22:47,400 --> 00:22:48,370 - Dominica. 424 00:22:48,370 --> 00:22:49,780 It's the Nature Island, 425 00:22:49,780 --> 00:22:51,570 probably the most cost-effective 426 00:22:51,570 --> 00:22:52,930 out of the registries. 427 00:22:52,930 --> 00:22:55,030 - I would say the Bahamas is the best. 428 00:22:55,030 --> 00:22:58,324 We're in the top 10 in the world. 429 00:23:14,410 --> 00:23:17,400 - In the miracle recipe of low-cost shipping, 430 00:23:17,400 --> 00:23:19,513 the flag is the key ingredient. 431 00:23:20,530 --> 00:23:23,620 But far from the needed decision-making circles, 432 00:23:23,620 --> 00:23:25,853 convenience has its side effects. 433 00:23:26,730 --> 00:23:28,550 On the deck of the ships, 434 00:23:28,550 --> 00:23:31,960 where one and a half million seafarers live by sledded 435 00:23:31,960 --> 00:23:34,963 and are victims of the fixed game of flags. 436 00:23:35,950 --> 00:23:37,660 - Flag of convenience is a perfectly good phrase 437 00:23:37,660 --> 00:23:38,760 because that's what they are. 438 00:23:38,760 --> 00:23:42,650 They are convenient because you can employ anyone you like. 439 00:23:42,650 --> 00:23:45,720 So, before like American ships, under U.S. law, 440 00:23:45,720 --> 00:23:47,450 have to employ American seafarers, 441 00:23:47,450 --> 00:23:49,300 but it costs about three or four times as much 442 00:23:49,300 --> 00:23:51,850 to run an American ship with American seafarers 443 00:23:51,850 --> 00:23:54,410 than it does with Ukrainians or Bangladeshis, 444 00:23:54,410 --> 00:23:56,223 or Filipino whatever crew. 445 00:23:58,200 --> 00:23:59,904 - People take advantage of the vulnerable, 446 00:23:59,904 --> 00:24:01,430 and that's what the flag of convenience is, 447 00:24:01,430 --> 00:24:03,930 to make sure it's a system where the people 448 00:24:03,930 --> 00:24:06,539 are the vulnerable parts of that process. 449 00:24:08,830 --> 00:24:11,820 If it was a national system with a national employment group 450 00:24:11,820 --> 00:24:14,000 and a salary that was very attractive, 451 00:24:14,000 --> 00:24:16,930 then you wouldn't have to go to developing culture 452 00:24:16,930 --> 00:24:18,907 and over less prices. 453 00:24:28,430 --> 00:24:31,880 - Every era has its particular workforce. 454 00:24:31,880 --> 00:24:34,380 And as is the case in other periods 455 00:24:34,380 --> 00:24:36,230 of globalized industries, 456 00:24:36,230 --> 00:24:39,010 often you'll see that there are changes 457 00:24:39,010 --> 00:24:41,240 according to who becomes more cost-effective, 458 00:24:41,240 --> 00:24:43,510 who becomes cheaper, so the Filipinos 459 00:24:43,510 --> 00:24:45,970 are quite cheap and they speak very good English. 460 00:24:45,970 --> 00:24:47,323 So they're very popular. 461 00:24:50,620 --> 00:24:52,580 - Filipinos account for 40% 462 00:24:52,580 --> 00:24:54,670 of the sea shipping workforce. 463 00:24:54,670 --> 00:24:56,980 At sea, they are in five or six times 464 00:24:56,980 --> 00:24:59,160 more than in their country. 465 00:24:59,160 --> 00:25:03,580 - They pay me for my job, but it's like a jail. 466 00:25:03,580 --> 00:25:05,950 I can find job in the Philippines, 467 00:25:05,950 --> 00:25:09,653 but then the salary is $100 per month. 468 00:25:11,640 --> 00:25:15,969 How can I survive for that? 469 00:25:18,340 --> 00:25:20,160 - Once past the horizon, 470 00:25:20,160 --> 00:25:23,560 the floating prison, as seafarers call it, 471 00:25:23,560 --> 00:25:25,133 enters a confinement area. 472 00:25:28,270 --> 00:25:31,460 We live in a highly connected world, but most ships, 473 00:25:31,460 --> 00:25:34,780 despite being at the epicenter of our global scheme, 474 00:25:34,780 --> 00:25:38,231 have no cell phone or Internet connection for the crew. 475 00:25:47,900 --> 00:25:50,530 - People are on it for nine months, 10 months, 476 00:25:50,530 --> 00:25:52,620 and they should have Internet access. 477 00:25:52,620 --> 00:25:54,580 They want to talk to their families. 478 00:25:54,580 --> 00:25:55,990 They want to Skype them. 479 00:25:55,990 --> 00:25:58,270 They want what the average seven-year-old 480 00:25:58,270 --> 00:25:59,310 takes for granted, 481 00:25:59,310 --> 00:26:01,610 that level of communication, 482 00:26:01,610 --> 00:26:03,537 and they don't have it. 483 00:26:06,020 --> 00:26:08,850 - Some 20 men, isolated for 10 months, 484 00:26:08,850 --> 00:26:10,773 on a 300-meter long ship; 485 00:26:11,820 --> 00:26:14,730 three meals a day, taken in silence, 486 00:26:14,730 --> 00:26:16,423 and in a handful of minutes; 487 00:26:17,480 --> 00:26:19,810 and long work days don't really boost 488 00:26:19,810 --> 00:26:21,253 the morale of the troops. 489 00:26:25,470 --> 00:26:28,180 A direct consequence of the long working hours, 490 00:26:28,180 --> 00:26:30,700 isolation and lack of sleep, 491 00:26:30,700 --> 00:26:32,930 60% of all shipping accidents 492 00:26:32,930 --> 00:26:34,493 are due to human error. 493 00:26:36,930 --> 00:26:40,340 - Try to make an analogy between a car and a ship, 494 00:26:40,340 --> 00:26:42,120 where you can stop the car, 495 00:26:42,120 --> 00:26:44,490 you can lock the car, and get out. 496 00:26:44,490 --> 00:26:45,880 If you are onboard a ship, 497 00:26:45,880 --> 00:26:48,960 and there's a technical problem with the engine, 498 00:26:48,960 --> 00:26:53,850 irrespective of the weather, one, on a calm day, 499 00:26:53,850 --> 00:26:56,070 you can be sitting there very isolated, 500 00:26:56,070 --> 00:26:59,270 very alone, different cultures, 501 00:26:59,270 --> 00:27:01,035 panic in different languages, 502 00:27:03,860 --> 00:27:08,800 and then in a storm, if you survive, 503 00:27:08,800 --> 00:27:10,256 you'll be lucky. 504 00:27:24,225 --> 00:27:25,940 - Seafaring is the second 505 00:27:25,940 --> 00:27:28,280 most dangerous occupation in the world. 506 00:27:28,280 --> 00:27:29,493 The first is fishing. 507 00:27:30,910 --> 00:27:32,530 It's a very dangerous activity. 508 00:27:32,530 --> 00:27:33,363 You're dealing with weather, 509 00:27:33,363 --> 00:27:34,370 you're dealing with current, 510 00:27:34,370 --> 00:27:36,450 you're dealing with a huge object 511 00:27:36,450 --> 00:27:37,500 that you're trying to operate 512 00:27:37,500 --> 00:27:39,500 in the middle of a very dangerous place. 513 00:27:40,500 --> 00:27:43,620 It's not surprising, it's about 2,000 a year 514 00:27:43,620 --> 00:27:45,760 seafarers are killed. 515 00:28:13,590 --> 00:28:15,810 - If you look at the worst crises, 516 00:28:15,810 --> 00:28:17,960 it's been where the ships haven't been maintained 517 00:28:17,960 --> 00:28:19,630 over a period of time, 518 00:28:19,630 --> 00:28:22,160 where the ship owner hasn't invested, 519 00:28:22,160 --> 00:28:24,050 where maybe they're not really ship owners, 520 00:28:24,050 --> 00:28:26,650 maybe they don't love the industry in that sense. 521 00:28:26,650 --> 00:28:27,790 They speculate. 522 00:28:27,790 --> 00:28:29,590 The markets are good, I can invest this 523 00:28:29,590 --> 00:28:32,295 in some steel that ply at sea. 524 00:28:34,730 --> 00:28:36,840 - Once again, the flags of convenience 525 00:28:36,840 --> 00:28:37,763 are implicated. 526 00:28:39,110 --> 00:28:41,750 Thanks to their permissive maintenance regulations, 527 00:28:41,750 --> 00:28:43,810 ship owners only spend a minimum, 528 00:28:43,810 --> 00:28:45,663 and push their vessels to the limit. 529 00:28:47,800 --> 00:28:49,100 Three quarters of all shipwrecks 530 00:28:49,100 --> 00:28:51,610 involve boats more than 25 years old 531 00:28:51,610 --> 00:28:53,970 that have not been duly maintained. 532 00:28:53,970 --> 00:28:56,720 Almost half the fleet is made up of oil tankers. 533 00:28:56,720 --> 00:28:59,770 When a hull breaks, or a shipwreck occurs, 534 00:28:59,770 --> 00:29:01,913 the environment pays the consequences. 535 00:29:04,530 --> 00:29:07,550 In addition to the shocking images of black beaches, 536 00:29:07,550 --> 00:29:10,090 oil spills mostly happen in high seas, 537 00:29:10,090 --> 00:29:12,410 far from the cameras' gaze. 538 00:29:12,410 --> 00:29:15,770 Every year, 150,000 tons of crude oil 539 00:29:15,770 --> 00:29:17,460 pollute the oceans. 540 00:29:17,460 --> 00:29:18,543 And that's not all. 541 00:29:57,721 --> 00:29:59,350 When they are not fully loaded, 542 00:29:59,350 --> 00:30:01,660 the ships pump in large amounts of water 543 00:30:01,660 --> 00:30:03,430 in their so-called balance tanks 544 00:30:03,430 --> 00:30:05,370 to ensure their stability. 545 00:30:05,370 --> 00:30:07,820 Once the vessel is reloaded and sufficiently heavy 546 00:30:07,820 --> 00:30:09,550 to ensure its balance at sea, 547 00:30:09,550 --> 00:30:11,730 this water is released. 548 00:30:11,730 --> 00:30:14,420 Very often, thousands of miles separate the port 549 00:30:14,420 --> 00:30:15,910 where the water was taken, 550 00:30:15,910 --> 00:30:17,710 and the port where it is discharged. 551 00:30:19,160 --> 00:30:21,390 - Living creatures may be carried 552 00:30:21,390 --> 00:30:24,220 from one place to the other. 553 00:30:24,220 --> 00:30:27,060 And if the living creature picked up in this port 554 00:30:27,060 --> 00:30:30,810 is discharged into a port that has similar enough 555 00:30:30,810 --> 00:30:34,090 environment conditions that it can survive, 556 00:30:34,090 --> 00:30:38,400 that new environment may be a new home 557 00:30:38,400 --> 00:30:40,150 for the flourishing of that new creature. 558 00:30:40,150 --> 00:30:42,773 We call that creature an invasive species. 559 00:30:44,010 --> 00:30:46,170 - Originally, innocuous species 560 00:30:46,170 --> 00:30:48,150 become invasive when they are dropped 561 00:30:48,150 --> 00:30:52,140 in a new habitat without their natural predators. 562 00:30:52,140 --> 00:30:54,630 Whether animals, plants, or bacteria, 563 00:30:54,630 --> 00:30:57,380 the can destroy everything in their wake. 564 00:30:57,380 --> 00:31:00,600 - Plant life, or the fish life in that new place 565 00:31:00,600 --> 00:31:02,973 will forever be impacted. 566 00:31:05,240 --> 00:31:06,950 - The cost of invasive species 567 00:31:06,950 --> 00:31:08,560 to the U.S. economy 568 00:31:08,560 --> 00:31:12,073 is estimated at $120 billion each year. 569 00:31:12,940 --> 00:31:15,550 In addition to their economic impact, 570 00:31:15,550 --> 00:31:17,570 they are a direct cause of the decline 571 00:31:17,570 --> 00:31:20,423 of 42% of endangered species. 572 00:31:22,710 --> 00:31:26,510 The industry itself is also invasive. 573 00:31:26,510 --> 00:31:30,890 It applies constant stress on the ocean and its inhabitants, 574 00:31:30,890 --> 00:31:34,867 who put up with it in silence, or almost. 575 00:31:49,430 --> 00:31:52,810 - This engine makes a lot of noise. 576 00:31:52,810 --> 00:31:56,830 It's bolted to the hull of a steel ship, 577 00:31:56,830 --> 00:32:00,880 which is like a drum that's able to transfer that noise 578 00:32:00,880 --> 00:32:03,583 at very, very low frequencies. 579 00:32:04,695 --> 00:32:07,824 It's... 580 00:32:11,210 --> 00:32:15,190 If you converted the decibels levels of noise 581 00:32:15,190 --> 00:32:17,210 to the range in which humans live, 582 00:32:17,210 --> 00:32:20,623 and compare that with the range in which mammals live, 583 00:32:21,620 --> 00:32:24,860 in the United States, I would be required 584 00:32:24,860 --> 00:32:26,643 to have hearing protection. 585 00:32:33,170 --> 00:32:36,200 - Marine mammals have no hearing protection. 586 00:32:36,200 --> 00:32:38,560 Constantly bombarded with low-frequencies 587 00:32:38,560 --> 00:32:40,630 comparable to a hundred times the decibels 588 00:32:40,630 --> 00:32:43,100 of a jet engine, they can't communicate, 589 00:32:43,100 --> 00:32:46,370 are are unable to orientate themselves. 590 00:32:46,370 --> 00:32:49,750 Disoriented by the noise and fleeing from the ordeal, 591 00:32:49,750 --> 00:32:52,380 many of them end up stranded on beaches 592 00:32:52,380 --> 00:32:54,520 at the cost of their lives. 593 00:32:57,734 --> 00:33:01,590 - The acoustic habitat of a Humpback whale 594 00:33:01,590 --> 00:33:03,423 has been reduced by 90%. 595 00:33:06,950 --> 00:33:11,187 We're wrecking the ocean acoustically with ships. 596 00:33:23,930 --> 00:33:25,450 - One third of cetaceans 597 00:33:25,450 --> 00:33:28,120 suffer irreversible hearing damage 598 00:33:28,120 --> 00:33:31,053 directly resulting from the ships' acoustic pollution. 599 00:33:32,290 --> 00:33:34,930 But nothing can stop the great shipping machine, 600 00:33:34,930 --> 00:33:37,240 nor the engines that keep it going, 601 00:33:37,240 --> 00:33:40,978 noisy and particularly voracious engines. 602 00:33:50,670 --> 00:33:53,570 - The heart of the ship is its engine. 603 00:33:53,570 --> 00:33:56,380 This engine is the kind of technology 604 00:33:56,380 --> 00:34:01,380 that can burn, can combust any, any kind of fuel 605 00:34:03,370 --> 00:34:05,630 that you can think of, that you can make 606 00:34:05,630 --> 00:34:09,253 from gas, to a coal slurry. 607 00:34:10,560 --> 00:34:12,430 I think of it as an omnivore. 608 00:34:12,430 --> 00:34:14,360 It can eat any kind of fuel 609 00:34:14,360 --> 00:34:16,070 that has energy content 610 00:34:16,070 --> 00:34:17,812 that can be combusted. 611 00:34:21,300 --> 00:34:25,273 - Those omnivores favor quantity over quality. 612 00:34:27,830 --> 00:34:31,423 - We are burning 200 tons a day sometimes. 613 00:34:34,400 --> 00:34:39,270 We cannot think about burning expensive fuel. 614 00:34:39,270 --> 00:34:42,113 We are burning residual fuel oil. 615 00:34:47,970 --> 00:34:50,120 - Bunker fuel is twice as cheap 616 00:34:50,120 --> 00:34:51,970 as any cleaner fuel. 617 00:34:51,970 --> 00:34:54,640 And if these turbine engines can digest it, 618 00:34:54,640 --> 00:34:56,790 it would go straight to the dumping ground. 619 00:34:59,360 --> 00:35:01,090 - It is the leftover. 620 00:35:01,090 --> 00:35:04,070 And some people will call this the trash. 621 00:35:04,070 --> 00:35:05,830 This fuel smells terrible. 622 00:35:05,830 --> 00:35:08,500 This fuel has high sulfur. 623 00:35:08,500 --> 00:35:10,730 This fuel has leftover metals. 624 00:35:10,730 --> 00:35:14,830 This fuel has ash particles, some water, 625 00:35:14,830 --> 00:35:16,530 and this fuel is very, very thick. 626 00:35:19,790 --> 00:35:23,000 - The shipping industry has been a natural source 627 00:35:23,000 --> 00:35:27,190 of disposing, if you like, of this residue product, 628 00:35:27,190 --> 00:35:31,153 and for many years, frankly, went unnoticed. 629 00:35:34,180 --> 00:35:37,140 Around 10 years ago, some academic started 630 00:35:37,140 --> 00:35:40,700 to look at the impact of burning this fuel 631 00:35:40,700 --> 00:35:42,660 particularly in coastal regions, 632 00:35:42,660 --> 00:35:46,180 and discovered, of course, that residue bunker fuel 633 00:35:46,180 --> 00:35:48,980 had incredibly high levels of sulfur, 634 00:35:48,980 --> 00:35:51,190 of particulate matter. 635 00:35:51,190 --> 00:35:53,660 And indeed, they were burning fuel 636 00:35:53,660 --> 00:35:56,257 at around, on average, 3,000 637 00:35:56,257 --> 00:36:00,210 to three and a half thousand PPM of sulfur. 638 00:36:00,210 --> 00:36:03,420 For that so, it's calculated parts of a million PPM. 639 00:36:03,420 --> 00:36:07,670 Just to give you a comparison, a car in EU has to, 640 00:36:07,670 --> 00:36:12,283 by law, burn sulfur under 15 PPM. 641 00:36:14,010 --> 00:36:17,170 And indeed, you know, some campaigners 642 00:36:17,170 --> 00:36:19,453 began to compare cars with ships, 643 00:36:21,330 --> 00:36:24,000 and the comparison was that one ship 644 00:36:24,000 --> 00:36:27,703 was burning similar sulfur as around 50 million cars. 645 00:36:28,940 --> 00:36:30,600 - If just one ship emits 646 00:36:30,600 --> 00:36:34,040 as much sulfur oxide as 50 million cars, 647 00:36:34,040 --> 00:36:36,500 then the 20 largest vessels pollute 648 00:36:36,500 --> 00:36:38,550 more than the billion cars on the planet. 649 00:36:39,670 --> 00:36:43,250 And it's not 20 but 60,000 ships 650 00:36:43,250 --> 00:36:46,460 that constantly roam the world's oceans year-round, 651 00:36:46,460 --> 00:36:49,463 spitting their sulfur particles into the atmosphere. 652 00:36:50,530 --> 00:36:52,960 - These particles are produced 653 00:36:52,960 --> 00:36:54,980 at exactly the right sizes 654 00:36:54,980 --> 00:36:56,810 and at very high numbers, 655 00:36:56,810 --> 00:37:01,020 so that they can be breathed easily into our lungs 656 00:37:01,020 --> 00:37:03,620 and not only breathe easily into, 657 00:37:03,620 --> 00:37:05,690 but they can get deep inside our lungs 658 00:37:05,690 --> 00:37:07,387 and they can be deposited. 659 00:37:10,400 --> 00:37:12,010 - Fingers are often pointed 660 00:37:12,010 --> 00:37:13,810 at the automotive industry first 661 00:37:13,810 --> 00:37:15,360 when it comes to air pollution, 662 00:37:16,230 --> 00:37:19,150 while the shipping industry escapes criticism 663 00:37:19,150 --> 00:37:22,341 and burns the dirtiest fuel in the world. 664 00:37:25,990 --> 00:37:28,810 Newark is New York City's backyard, 665 00:37:28,810 --> 00:37:31,900 is silent and perfectly oiled part in the machine 666 00:37:31,900 --> 00:37:35,663 that supplies the metropolis and half of the country. 667 00:37:39,180 --> 00:37:42,520 For those who live near the largest port on the East Coast, 668 00:37:42,520 --> 00:37:46,653 ships pollution is not a scoop, but a palpable reality. 669 00:37:49,350 --> 00:37:51,830 - You do have the thickness in the air 670 00:37:51,830 --> 00:37:52,820 that comes from the port. 671 00:37:52,820 --> 00:37:54,640 You can feel it in your chest. 672 00:37:54,640 --> 00:37:56,190 You could feel it in your eyes. 673 00:37:57,090 --> 00:37:58,260 Ever since we came here, 674 00:37:58,260 --> 00:38:01,370 I've noticed that I have more colds. 675 00:38:01,370 --> 00:38:04,533 There's more post-nasal drip. 676 00:38:04,533 --> 00:38:06,840 I didn't need and asthma pump before. 677 00:38:06,840 --> 00:38:08,993 I need an asthma pump almost everyday now. 678 00:38:10,330 --> 00:38:11,990 - Seeking refuge indoors 679 00:38:11,990 --> 00:38:15,200 is a tacit rule all the locals abide by 680 00:38:15,200 --> 00:38:17,423 to escape from ambient toxicity. 681 00:38:18,270 --> 00:38:20,450 - The most polluted area is the area 682 00:38:20,450 --> 00:38:22,110 immediately surrounding ports. 683 00:38:22,110 --> 00:38:26,100 So you end up with basically hot zones of pollutions. 684 00:38:26,100 --> 00:38:28,790 And actually, the fact is made even worse 685 00:38:28,790 --> 00:38:32,710 by the fact that trucks and rail cars 686 00:38:32,710 --> 00:38:37,450 come to the ports to offload boxes from the ships, 687 00:38:37,450 --> 00:38:39,940 and then to deliver them around the United States, 688 00:38:39,940 --> 00:38:42,340 or around whichever country we're talking about. 689 00:38:45,480 --> 00:38:48,730 - Trucks are a ship's best allies. 690 00:38:48,730 --> 00:38:52,083 Combined with ships, they make an explosive cocktail. 691 00:38:53,610 --> 00:38:56,433 - You have air toxics that can cause cancer. 692 00:38:57,650 --> 00:39:00,700 You have fine particulate matter that's basically soot, 693 00:39:00,700 --> 00:39:03,160 gets into the lungs and creates asthma, 694 00:39:03,160 --> 00:39:05,700 especially in kids and older people. 695 00:39:15,440 --> 00:39:17,220 - One out of every four individuals 696 00:39:17,220 --> 00:39:19,453 in the community suffers from asthma. 697 00:39:20,600 --> 00:39:22,250 Port areas are at the forefront 698 00:39:22,250 --> 00:39:24,460 of the stealthy contamination 699 00:39:24,460 --> 00:39:26,223 that knows no frontiers. 700 00:39:30,180 --> 00:39:33,160 - The communities that live closest to shipping lanes, 701 00:39:33,160 --> 00:39:36,353 in and around ports, are the most heavily impacted. 702 00:39:38,130 --> 00:39:42,110 However, the coastal winds go far inland. 703 00:39:42,110 --> 00:39:46,100 So, many hundreds of kilometers inland, 704 00:39:46,100 --> 00:39:47,620 there can still be impacts 705 00:39:47,620 --> 00:39:49,620 that are directly attributable 706 00:39:49,620 --> 00:39:51,520 to the air pollution of ships, 707 00:39:51,520 --> 00:39:53,510 where there can be health impacts. 708 00:39:53,510 --> 00:39:57,828 It's not just limited to those that can see the ships. 709 00:40:01,550 --> 00:40:06,150 60,000 people per year die prematurely 710 00:40:06,150 --> 00:40:08,980 from health impacts from shipping 711 00:40:08,980 --> 00:40:10,393 around the world. 712 00:40:12,367 --> 00:40:15,150 - The population relentlessly inhales 713 00:40:15,150 --> 00:40:19,690 the poison in daily doses, victims of an epidemic 714 00:40:19,690 --> 00:40:21,940 that claims thousands of lives every year 715 00:40:22,780 --> 00:40:24,393 in the name of world trade. 716 00:40:31,710 --> 00:40:34,110 The International Maritime Organization, 717 00:40:34,110 --> 00:40:36,170 a branch of the United Nations, 718 00:40:36,170 --> 00:40:38,593 is responsible for regulating the industry. 719 00:40:40,830 --> 00:40:42,830 How's it planning to clean up the fleet? 720 00:40:45,160 --> 00:40:49,250 - The impact of new regulations 721 00:40:49,250 --> 00:40:53,760 takes some time to achieve its full effect, 722 00:40:53,760 --> 00:40:57,000 because ships have an economic lifetime 723 00:40:57,000 --> 00:41:00,400 of maybe something like 25 to 30 years, 724 00:41:00,400 --> 00:41:03,030 but essentially, improvements and enhancements 725 00:41:03,030 --> 00:41:04,750 will apply to new vessels, 726 00:41:04,750 --> 00:41:07,160 rather than to the whole fleet at one go, 727 00:41:07,160 --> 00:41:09,142 because that's simply not possible. 728 00:41:17,360 --> 00:41:19,150 - 30 years, 729 00:41:19,150 --> 00:41:21,870 the average lifespan of a ship, 730 00:41:21,870 --> 00:41:23,210 ships that end their days 731 00:41:23,210 --> 00:41:26,600 in the graveyards of India or Bangladesh, 732 00:41:26,600 --> 00:41:29,370 where their remains continue to pollute, 733 00:41:29,370 --> 00:41:31,583 far from the eyes of the western world. 734 00:41:33,150 --> 00:41:34,820 30 years, 735 00:41:34,820 --> 00:41:37,710 the time required to modernize the world fleet, 736 00:41:37,710 --> 00:41:39,413 and make it less toxic. 737 00:41:40,550 --> 00:41:43,183 Can the planet wait 30 years? 738 00:42:02,060 --> 00:42:03,910 Shipping has a carbon footprint 739 00:42:03,910 --> 00:42:06,793 equivalent to a country like Germany, or Japan. 740 00:42:07,940 --> 00:42:09,890 It is responsible for 4% 741 00:42:09,890 --> 00:42:12,163 of the Earth's greenhouse gas emissions. 742 00:42:14,470 --> 00:42:16,000 - 4% is a lot, actually, 743 00:42:16,000 --> 00:42:18,510 when you're talking about addressing 744 00:42:18,510 --> 00:42:20,050 the challenges biggest climate change. 745 00:42:20,050 --> 00:42:21,980 Every percentage difference in emissions 746 00:42:21,980 --> 00:42:26,924 makes a huge, huge impact on the globe's climatic stability. 747 00:42:29,260 --> 00:42:31,000 - Climate change is a threat 748 00:42:31,000 --> 00:42:32,600 for the whole planet. 749 00:42:32,600 --> 00:42:34,010 But it's near the poles 750 00:42:34,010 --> 00:42:37,340 that its consequences are more evident. 751 00:42:37,340 --> 00:42:39,660 Every year, the Arctic ice cap loses 752 00:42:39,660 --> 00:42:42,810 37,000 square kilometers of its surface. 753 00:42:42,810 --> 00:42:45,623 That's more than three times the surface of the Bahamas. 754 00:42:46,520 --> 00:42:49,270 As a consequence, new shipping lanes are opening 755 00:42:49,270 --> 00:42:51,343 on the east and west of the North Pole. 756 00:43:06,210 --> 00:43:09,910 The ice caps melting to the north of Siberia and Canada 757 00:43:09,910 --> 00:43:13,460 translates into a major geopolitical stake. 758 00:43:13,460 --> 00:43:16,740 It opens new routes in the east and the west, 759 00:43:16,740 --> 00:43:18,570 able to cut the distances 760 00:43:18,570 --> 00:43:20,880 and the cost of shipping by three, 761 00:43:20,880 --> 00:43:24,053 between main Asian and European ports. 762 00:43:37,650 --> 00:43:41,670 By 2050, the ice will be entirely gone. 763 00:43:41,670 --> 00:43:44,923 And these new routes will be practicable all year long, 764 00:43:46,260 --> 00:43:49,120 which doesn't really bother ship owners. 765 00:43:49,120 --> 00:43:52,220 - It's tragic in its irony that we're again 766 00:43:52,220 --> 00:43:56,200 creating this loop where we pollute more, 767 00:43:56,200 --> 00:43:59,490 and put more heat trapping emissions into the air, 768 00:43:59,490 --> 00:44:02,000 accelerate melting, and then, oh look, 769 00:44:02,000 --> 00:44:04,600 here's another opportunity 770 00:44:04,600 --> 00:44:06,723 to upload even more. 771 00:44:10,310 --> 00:44:11,620 - There are ships going through the, 772 00:44:11,620 --> 00:44:15,200 are going to also contribute to the global warming 773 00:44:15,200 --> 00:44:16,830 that has formed the route in the first place. 774 00:44:16,830 --> 00:44:19,750 So, as far as it's good news for shippers, 775 00:44:19,750 --> 00:44:22,181 but I don't think it's good news for us. 776 00:44:52,040 --> 00:44:53,700 - Nature is very resilient 777 00:44:53,700 --> 00:44:57,220 and has proven that ship can recover, 778 00:44:57,220 --> 00:45:01,860 but there is also times when we inflict more damage 779 00:45:01,860 --> 00:45:05,083 than, you know, nature's resilience can accommodate. 780 00:45:08,960 --> 00:45:11,840 It's really, really deeply urgent 781 00:45:11,840 --> 00:45:14,646 that we address pollution from this industry. 782 00:45:19,730 --> 00:45:21,320 Sometimes, that's what leadership requires, 783 00:45:21,320 --> 00:45:24,290 is pushing the envelope and realizing 784 00:45:24,290 --> 00:45:27,880 that you're not gonna be able to please everyone. 785 00:45:27,880 --> 00:45:31,290 And we really need that kind of leadership from the IMO. 786 00:45:31,290 --> 00:45:33,960 But it's hard to be a leader when you're afraid 787 00:45:33,960 --> 00:45:36,333 of making anyone angry. 788 00:45:38,090 --> 00:45:40,270 - The IMO is slowly taking steps 789 00:45:40,270 --> 00:45:43,150 to limit pollution from ships in northern Europe 790 00:45:43,150 --> 00:45:45,180 and parts of North America. 791 00:45:45,180 --> 00:45:46,890 But enforcing the regulation 792 00:45:46,890 --> 00:45:50,070 is proving problematic for member-states. 793 00:45:50,070 --> 00:45:51,540 Who are they? 794 00:45:51,540 --> 00:45:52,920 And what are their interests 795 00:45:52,920 --> 00:45:54,170 within this organization? 796 00:45:55,520 --> 00:45:58,840 - IMO is funded by its member-governments. 797 00:45:58,840 --> 00:46:03,840 And rather unusually for a United Nations organization, 798 00:46:04,040 --> 00:46:07,970 the amount of funding that each country puts in 799 00:46:07,970 --> 00:46:11,150 is decided according to the size 800 00:46:11,150 --> 00:46:13,320 of the national fleet for that country. 801 00:46:13,320 --> 00:46:15,240 So, for example, the highest contributor 802 00:46:15,240 --> 00:46:17,270 to the IMO budget is Panama, 803 00:46:17,270 --> 00:46:20,210 and that's followed by Liberia and the Marshall Islands, 804 00:46:20,210 --> 00:46:24,190 because they currently have the largest national fleets 805 00:46:24,190 --> 00:46:25,363 in world shipping. 806 00:46:27,000 --> 00:46:29,650 - The same countries that sell their nationality 807 00:46:29,650 --> 00:46:32,000 to the less scrupulous shipping companies 808 00:46:32,000 --> 00:46:33,833 are the hidden side of the IMO. 809 00:46:34,940 --> 00:46:36,780 They fund the organization 810 00:46:36,780 --> 00:46:39,000 and make sure that no new regulation 811 00:46:39,000 --> 00:46:41,320 will come to disrupt their business; 812 00:46:41,320 --> 00:46:44,250 these same flags of convenience business 813 00:46:44,250 --> 00:46:47,820 that is the source of all the abuses in the industry, 814 00:46:47,820 --> 00:46:49,910 that enables unscrupulous ship owners 815 00:46:49,910 --> 00:46:52,510 to act in complete anonymity, 816 00:46:52,510 --> 00:46:54,850 that encourages tax evasion, 817 00:46:54,850 --> 00:46:57,223 that allows the exploitation of seafarers, 818 00:46:58,140 --> 00:47:00,106 and that contaminates the planet. 819 00:47:08,410 --> 00:47:10,720 The enormity of the fleet makes shipping 820 00:47:10,720 --> 00:47:13,050 a highly polluting activity, 821 00:47:13,050 --> 00:47:14,503 but it's still our best bet. 822 00:47:16,070 --> 00:47:17,710 If we use planes instead of ships 823 00:47:17,710 --> 00:47:20,320 to transport the same amount of cargo, 824 00:47:20,320 --> 00:47:22,630 the financial and environmental cost 825 00:47:22,630 --> 00:47:23,783 would be much higher. 826 00:47:25,460 --> 00:47:27,740 - Shipping is still, by far, 827 00:47:27,740 --> 00:47:30,430 the most efficient means of transporting goods. 828 00:47:30,430 --> 00:47:32,600 We shouldn't forget that. 829 00:47:32,600 --> 00:47:35,757 It's a huge asset and we all need shipping, 830 00:47:35,757 --> 00:47:38,470 and we all rely upon ships to transport 831 00:47:38,470 --> 00:47:40,933 our ever-increasing demands. 832 00:47:46,830 --> 00:47:48,380 There are things we can all do, 833 00:47:49,584 --> 00:47:52,630 and industry, in particular, can do profitably, 834 00:47:52,630 --> 00:47:54,653 reduce carbon and make money. 835 00:47:57,360 --> 00:47:59,030 - If profitability is the priority 836 00:47:59,030 --> 00:48:01,840 for ship owners, money can be a key argument 837 00:48:01,840 --> 00:48:04,837 for improving the energy efficiency of their vessels. 838 00:48:07,440 --> 00:48:09,240 With a relatively small investment, 839 00:48:09,240 --> 00:48:11,120 they can increase engine performance, 840 00:48:11,120 --> 00:48:12,990 improve the quality of the hull, 841 00:48:12,990 --> 00:48:16,380 or use other innovations, such as the wind. 842 00:48:19,060 --> 00:48:22,140 The result would be 30 to 40% saving on fuel, 843 00:48:22,140 --> 00:48:24,270 more profitability for ship owners, 844 00:48:24,270 --> 00:48:25,443 and less pollution. 845 00:48:26,690 --> 00:48:28,440 A win-win solution would be 846 00:48:28,440 --> 00:48:30,860 to raise awareness among shipping companies, 847 00:48:30,860 --> 00:48:33,290 that for the industry to be profitable, 848 00:48:33,290 --> 00:48:35,243 it has to become more sustainable. 849 00:48:43,140 --> 00:48:45,250 However, this industry exists 850 00:48:45,250 --> 00:48:47,990 because it supplies goods to consumers. 851 00:48:47,990 --> 00:48:50,510 So, consumers should also open their eyes 852 00:48:50,510 --> 00:48:51,593 to these matters. 853 00:48:53,310 --> 00:48:57,090 - The embedded energy use and embedded pollution 854 00:48:57,090 --> 00:49:00,270 in all that we wear and all that we use 855 00:49:00,270 --> 00:49:01,653 needs to be accounted for. 856 00:49:02,660 --> 00:49:04,529 But the first thing that needs to happen 857 00:49:04,529 --> 00:49:06,930 in order for us to address it though 858 00:49:06,930 --> 00:49:08,480 is for people to know about it. 859 00:49:11,730 --> 00:49:15,200 - Information is key to triggering change. 860 00:49:15,200 --> 00:49:18,090 Can we imagine a world of transparency, 861 00:49:18,090 --> 00:49:20,570 where the traceability of the products we buy 862 00:49:20,570 --> 00:49:22,163 could be easily available? 863 00:49:25,460 --> 00:49:27,050 - I absolutely would love 864 00:49:27,050 --> 00:49:28,480 to be able to walk into a store 865 00:49:28,480 --> 00:49:30,830 and on the tag, it gives me 866 00:49:30,830 --> 00:49:32,330 every piece of information 867 00:49:32,330 --> 00:49:34,190 about where that piece of clothing has been, 868 00:49:34,190 --> 00:49:35,120 where it's traveled to, 869 00:49:35,120 --> 00:49:37,194 how many miles it's traveled. 870 00:49:42,640 --> 00:49:44,850 I think that we have the technology 871 00:49:44,850 --> 00:49:47,330 and the resources to make that happen. 872 00:49:47,330 --> 00:49:49,460 You know, the companies that we buy products from, 873 00:49:49,460 --> 00:49:52,833 it's their responsibility to give us that information. 874 00:49:55,400 --> 00:49:57,570 And I hope sooner rather than later, 875 00:49:57,570 --> 00:50:01,200 that that's something that is available to consumers. 876 00:50:01,200 --> 00:50:02,475 Absolutely. 877 00:50:07,890 --> 00:50:09,730 - Could a simple tag contribute 878 00:50:09,730 --> 00:50:11,557 to change consumer habits? 879 00:50:16,010 --> 00:50:20,060 Maybe one day this can help inspire some manufacturers, 880 00:50:20,060 --> 00:50:23,400 and encourage the whole system to change direction, 881 00:50:23,400 --> 00:50:26,423 and stir it towards a more conscientious model of society. 882 00:50:33,630 --> 00:50:37,070 - The biggest ships in the ocean when they're underway 883 00:50:37,070 --> 00:50:40,510 take a very long time to turn around, to change course. 884 00:50:40,510 --> 00:50:44,720 So, if you reckon that the ships are changing course 885 00:50:44,720 --> 00:50:48,360 even a little bit, it can be considered to be 886 00:50:48,360 --> 00:50:51,920 the start of a very big change in the future course 887 00:50:51,920 --> 00:50:54,373 on a long voyage through the next century. 888 00:50:57,770 --> 00:50:59,750 - A long voyage ahead, 889 00:50:59,750 --> 00:51:02,150 which hopefully will see this industry 890 00:51:02,150 --> 00:51:04,100 emerging from the darkness 891 00:51:04,100 --> 00:51:05,883 and openly show its face. 892 00:51:10,740 --> 00:51:12,810 Policymakers and institutions 893 00:51:12,810 --> 00:51:14,700 should be a part of this journey, 894 00:51:14,700 --> 00:51:17,490 and take a firm stand to reform this industry, 895 00:51:17,490 --> 00:51:20,130 ang guide it towards better practices, 896 00:51:20,130 --> 00:51:23,640 so that shipping becomes a true driver of growth 897 00:51:23,640 --> 00:51:26,909 that does not leave anybody on the wayside. 65430

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