2International Chamber of Shipping (International Shipping Federation) BIMCOInternational Chamber of Shipping(International Shipping Federation)INTERCARGOINTERTANKO
3Vision for the shipping industry: “ A responsible, sustainable and respected industry able to influence its own destiny ”
4The ROUND TABLE of international shipping associations – voluntary cooperation to:Promote common policy positions – representative of wide common membershipProvide strong and united shipowner “voice” in International ForumsEnsure more effective use of limited resourcesAvoid surprises / resolve potential conflicts in policies
5Examples of Round Table cooperation Joint submissions to IMOCommon positions with respect to EU issuesEstablishment of INTERGROUP as formal stakeholder interface with EU Parliament, Commission, Council and EMSATripartite meetings of owners, builders and classFlag State guidelines (updated)The “image” of shipping – working with IMO et al
6AGENDA Maintaining Supremacy of IMO & International Maritime Law Common Structural Rules & Goal Based StandardsCriminalisation of SeafarersChallenges to Industry Governance StructuresOther:People issues PiracyShip Recycling Environmental ChallengesCompetition Rules SecurityOil Pollution Liability (& Compensation)
7Maintaining Supremacy of IMO & International Maritime Law Against the challenges of Local and Regional Legislation
9Increasing politicization of regulation Examples:Phase out of single hull tankersWest European Particularly Sensitive Sea AreaMoves to open up CLC/Fund Convention and link with substandard shippingPenal sanctions adopted by EU, criminalising accidental pollutionWhy?Coastal state interests versus flag states, and reduced influence of maritime constituencyPower of EU Commission
10THE EUROPEAN INSTITUTIONS & the power plays Commission(The executive)EMSAEuropeanParliament(Direct election)Council(Member States)
11HOW IT WAS: Examples of positive regulatory developments (the “IMO spirit”) ISM Code and STCW (training)post ‘Estonia’ passenger ferry measuresIMO bulk carrier safety packageDevelopment of ILO ‘Super Convention’Outcomes broadly based on technical merits of arguments put forward.Industry viewpoint understood, if not always accepted.
12HOW IT IS: The Challenges Today More political drivers and less consideration of the technical, operational, and commercial interestsMore unworkable, inconsistent and illogical regulation and less consideration of the practical aspectsMore pressure for local / regional regulation and less willingness to adopt and apply international regulation
13Maintaining Supremacy of IMO & International Maritime Law What are the threats?15 Years Ago the United States (OPA90)Today the European UnionPolitics post Erika and PrestigeConflict with International legislation (UNCLOS, MARPOL)CriminalisationEU Commission proposals for EU Common Position at IMO
14Maintaining Supremacy of IMO & International Maritime Law International Regulation for an International IndustryWhat the industry seeks from the Asian region:Consistent support for IMO and the international approachRejection of regional initiativesIf possible, avoidance of “block” voting to combat EU moves in this direction
15Maintaining Supremacy of IMO & International Maritime Law International Regulation for an International IndustryQuestions:How can we involve Asian industry more effectively?What are the principal concerns seen through Asian eyes?Can the RT interact better with Asian shipping community on these matters?
17Common Structural Rules BackgroundConcerns over erosion of design margins and construction tolerances due to:Competition for Market Share by Classification SocietiesMore refined design capabilitiesPressure from shipyards to minimise steel weightsPressure from owners for lower costs of newbuildings
18Common Structural Rules Consequences of reduced design marginsGreater focus is placed on ship maintenance proceduresIncreasing concerns expressed by regulators on structural integrity of existing shipsChallenges to function of classification societiesIntroduction of Goal Based Standards for ship construction at IMO
19Common Structural Rules Current situationTANKER rules (JTP) developed by Lloyds Register, ABS, Norske Veritas (LAN):Generally acceptable to much of industry (subject certain caveats) but not allLimited support from other IACS membersBULK CARRIER rules (JBP) developed by 7 IACS members:Mixed reception from industry (many caveats)Support from LAN IACS members not forthcomingOnly limited harmonisation of design assumptions and modelling techniques between JTP and JBPIACS under considerable strain to maintain cohesive position and internal harmony
20Common Structural Rules Outstanding issuesAround harmonisation :Influence of prescriptive requirementsWave shear force and wave loadsBuckling and ultimate strengthFinite Element Calculation procedureFatigue analysisIndustry acceptance of :Corrosion allowancesVerification of coatings (application & performance)
21Goal Based StandardsIntroduced in to IMO by Bahamas and Greece following Prestige accidentInitially addressing ship structural standards, but with potential for extension to much of SOLAS and MARPOL legislation and morePrinciples still being debated versus other methodologies (prescriptive versus risk based)
22Simplified Tier Concept Goal-based Safety ObjectivesTier ITier IIGoal-based Functional RequirementsDesign andConstructionMaintenanceOperationTier IIIVerification ofComplianceClass Rules(Detailed requirement)Tier IVCode of Practice for Construction,Maintenance and OperationTier V
23Common Structural Rules Is there support for the principle of Common Structural Rules ?Subject to clarification of current drafts, is it now prudent to support the latest versions of both JTP and JBP rules, while at the same time encouraging further progressive harmonisation between the tanker and bulker rules ?How important is IACS unity and what can industry do to support & encourage this ?
25CRIMINALISATIONTraditionally accidents have been regarded as quite distinct from deliberate actsAttitudes have changed (scapegoat mentality)e.g. Captain Mangouras, The Karachi EightEU Directive on Ship-Source Pollution (despite wide industry coalition)Canadian Bill C-15US approach (whistle blowing, enormous fines and rewards)
26CriminalisationINDUSTRY supports the investigation and prosecution of illegal discharges of oil from ships.INDUSTRY strongly objects to criminalising accidental oil pollution and to treating seafarers as criminalsAny criminal offence of pollution from a ship must be clearly defined and in accordance with international law.Any penalties imposed on someone found guilty of such an offence must be proportionate.There should also be parity with any penalties imposed for pollution from land based sources.Any suspects must be treated fairly, impartially and in accordance with international law on human rights.
27Criminalisation Additionally INDUSTRY expects coastal states to comply with their existing treaty law obligations to provide adequate, affordable, oil waste reception facilities.In order to safeguard the lives of seafarers and the marine environment, INDUSTRY urges coastal states to ensure proper contingency plans are put in place so that adequate assistance and if necessary a place of refuge can be made available to a ship in distress.
28CRIMINALISATION Do Asian owners share these concerns ? Is there a downside in fighting this?How / where should we be concentrating our efforts?&INDUSTRY principles: are they universally supported?
29Challenges to Industry Governance Structures Classification Societies FlagClassification SocietiesPort State ControlP&I Clubs
30The good, the bad and … all legitimate Selection of FlagThe good, the bad and … all legitimate
31Challenges for FlagIMO Flag State Audit (currently voluntary but pressure to make mandatory)Port State Control- Currently: white, black and grey lists- EU moving to target non-audited flags with preferential treatment measuresPolitical, public, union and media pressures – especially on open registersIndustry currently providing guidance / recommendations, and moving to do more
33Challenges for Classification Societies EU Challenge on Role of Class– perceived conflict of interest between statutory and classification activitiesCommon Structural Rules– ability to deliver while maintaining IACS harmonyRole relative to Goal Based Standards– IMO/Flag states versus IACS control of Goal Based StandardsWho sets class agenda – owners, builders, flag states or class managers ?Example coatings standards (IMO – DE discussion)
34Challenges for Port State Control (PSC) Need :Better harmonisation and consistency of standards, training, etc. across all PSC regimesConsistency in inspection and targeting criteria – based in part on analysis of PSC records and not arbitrary mechansisms, such as quota systemsGlobal sharing and mutual recognition of records between MoUs, with data logged in central system such as EQUASISUniformity in internal procedures, such as clear grounds for detention, independent appeal panels, close-out of deficiencies, etc.&To ensure that the integrity of PSC is maintained
35Challenges for P&I Clubs & Club Boards OECD Report – Role of P&I in respect of substandard shippingIOPC Revision ProceduresPending Compulsory Insurance requirementsWho manages the agenda– Shipowners or Club Managers ?
36Challenges to Industry Governance Structures Do Asian shipowners share the same concerns over these challenges for Flag, Classification Societies, Port State Control and P&I Clubs ?What are the particular concerns ?Could we be doing more collectively to address any of these concerns ?
37Two Questions that we have asked ourselves: Can the Round Table involve regional shipping voices more effectively in global (and other regional) arenas ?Does the Round Table have a role in supporting local and regional shipping associations in their local and regional issues ?
38AGENDA Maintaining Supremacy of IMO & International Maritime Law Common Structural Rules & Goal Based StandardsCriminalisation of SeafarersChallenges to Industry Governance StructuresOther:People issues PiracyShip Recycling Environmental ChallengesCompetition Rules SecurityOil Pollution Liability (& Compensation)
39PEOPLE ISSUES (HUMAN FACTORS) Heavy recent concentration on “hardware” issues(e.g. accelerated phase-out, CSRs, goal-based standards etc)Yet people still “cause” most incidents
40PEOPLE ISSUES (HUMAN FACTORS) Industry has to address :Shortages of qualified officers (BIMCO/ISF 2005)Renewed criticisms of training standards (time to review STCW 95 ?)Implications/causes of fatigue (ISPS etc.)Manning levelsIn the background, CONMARCON
41PIRACY Extent of the problem Focus of attention on Regions - Malacca Straits- Somalia- West AfricaDevelopments
42There is still a problem Worldwide: attacksattacksMalacca Straitsattacksattacks
43Crew Members:killed, 30 missingIn Malacca Straitskilled, 3 injured, 36 kidnappedIndonesia accounts for 25% of all attacks worldwide
44SomaliaConcerted attacks against larger ships60 nm off the coastWest Africa- Denial of a problem- Lagos has the highest record of attacks
45TargetsTug + TowsLow in the waterSlow movingSmall TankersBulk Carriers
46Current developmentsImproved cooperation and joint patrols in Malacca Strait, July 2004Pan-Asia anti-piracy initiative – Regional Cooperation Agreement or ReCAAPMalaysian Maritime Enforcement Agency – 6 patrol boats up to 40 vessels plus helicopters within 5 years.
47Current developments (cont.) Inventus UAVUnmanned Aerial VehicleReconnaissance system for aerial surveillanceSecure Shipvolt pulse to deter boardingsShiplocShip security alert systemShip tracking device
48PROBLEMS REMAINHot PursuitLack of ResourcesNeed for an effective deterrent
51Ship Recycling Industry supporting: measures to ensure that ship recycling not just a sound but a sustainable industrydevelopment of effective regulation through adoption of the relevant elements of the:- IMO Guidelines on Ship Recycling- ILO Safety & Health Guidelines on Shipbreaking- Technical Guidelines of the Basel Convention
52Ship Recycling Issues for shipowners Green Passport – format to be standardisedIMO Guidelines- key elements to be made mandatory via international convention- guidance notes being developed on the implemenation of the GuidelinesInventory of Hazardous Materials document- still only limited utilisationDemolition Contract related to the IMO Guidelines (such as BIMCO Demolishcon)- only limited application to date
53Ship Recycling Issues for shipbreakers In general there is a need for:development and introduction of Code of Practice for HSE managementand/or legislation to ensure compliance with best practice / international conventions”breaking yards” to be licensed& specifically:Breakers need to adopt and implement:Ship Recycling Plan as set out in the IMO GuidelinesHealth and Safety plans as set out in the ILO GuidelinesPlans for the handling of hazardous waste as set out in the Basel Convention
54Environmental Challenges Air Emissions(Low sulphur bunker issues)Ballast Water Management
55IOPC Compensation Limits - as revised 2003/2005 100200300400500600700800102030405060708090110120130140150160SDR Millions1513024536047559061,0571,209USD Millions'000 GT1992 Fund, SDR 203 m, USD 307 m1992 CLC pre STOPIASupplementary Fund (as from )SDR 750 m, USD m)