Presentation on theme: "international shipping associations"— Presentation transcript:
1 international shipping associations TheROUND TABLEofinternational shipping associations
2 International Chamber of Shipping (International Shipping Federation) BIMCOInternational Chamber of Shipping(International Shipping Federation)INTERCARGOINTERTANKO
3 Vision for the shipping industry: “ A responsible, sustainable and respected industry able to influence its own destiny ”
4 The 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
5 Examples 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
6 AGENDA 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)
7 Maintaining Supremacy of IMO & International Maritime Law Against the challenges of Local and Regional Legislation
9 Increasing 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
10 THE EUROPEAN INSTITUTIONS & the power plays Commission(The executive)EMSAEuropeanParliament(Direct election)Council(Member States)
11 HOW 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.
12 HOW 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
13 Maintaining 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
14 Maintaining 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
15 Maintaining 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?
17 Common 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
18 Common 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
19 Common 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
20 Common 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)
21 Goal 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)
22 Simplified 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
23 Common 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 ?
25 CRIMINALISATIONTraditionally 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)
26 CriminalisationINDUSTRY 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.
27 Criminalisation 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.
28 CRIMINALISATION 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?
29 Challenges to Industry Governance Structures Classification Societies FlagClassification SocietiesPort State ControlP&I Clubs
30 The good, the bad and … all legitimate Selection of FlagThe good, the bad and … all legitimate
31 Challenges 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
33 Challenges 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)
34 Challenges 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
35 Challenges 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 ?
36 Challenges 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 ?
37 Two 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 ?
38 AGENDA 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)
39 PEOPLE 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
40 PEOPLE 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
41 PIRACY Extent of the problem Focus of attention on Regions - Malacca Straits- Somalia- West AfricaDevelopments
42 There is still a problem Worldwide: attacksattacksMalacca Straitsattacksattacks
43 Crew Members:killed, 30 missingIn Malacca Straitskilled, 3 injured, 36 kidnappedIndonesia accounts for 25% of all attacks worldwide
44 SomaliaConcerted attacks against larger ships60 nm off the coastWest Africa- Denial of a problem- Lagos has the highest record of attacks
45 TargetsTug + TowsLow in the waterSlow movingSmall TankersBulk Carriers
46 Current 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.
47 Current developments (cont.) Inventus UAVUnmanned Aerial VehicleReconnaissance system for aerial surveillanceSecure Shipvolt pulse to deter boardingsShiplocShip security alert systemShip tracking device
48 PROBLEMS REMAINHot PursuitLack of ResourcesNeed for an effective deterrent
51 Ship 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
52 Ship 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
53 Ship 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
54 Environmental Challenges Air Emissions(Low sulphur bunker issues)Ballast Water Management
55 IOPC 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)