1. Regulation and Policies for Shipping Maritime Cyprus – 7 October 2013 Thomas Rehder, President-Elect ECSA 1

2. A selection... 1.Ship emissions 2.Accounting standards 3.Financial regulations 4.State aid 5.Liner consortia 6.Concluding remarks 2

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4. 1. Ship emissions Sulphur: – SECA: 1 January 2015 is approaching fast; – What will fuel market be like (availability/price)? – Transition period and support for conversion vital. Carbon: – EU MRV proposal useful step towards intl solution; – MRV tool must be simple, accurate and easy. Nitrogen: – NECA: how to avoid the SECA pitfall? 4

5. 2. Accounting standards Proposal International Accounting Standards Board to change rules governing accounting treatment of leases; Classifying charter contracts as leases would be very damaging to shipowners; Charters are transportation service contracts and should not be treated as balance-sheet liabilities; ICS lobby strongly supported by ECSA. 5

6. 3. Financial regulations Implementation of Basel II and Basel III; Asset-backed finance vs. corporate finance; Private equity vs. private investors; Shipping and capital markets; Ship valuations. 6

7. 4. State aid Very positive that 2004 EC Guidelines on State Aid to Maritime Transport will continue to apply; A sign that EU cares about competitiveness of its shipping industry; Legal certainty and stability are a must; Some outstanding technical issues, e.g. on scope of application, to be clarified. 7

8. 5. Liner consortia Commission Regulation 906/2009 introduced block exemption for consortia, expiring 25/4/2015 Review process started beginning 2013, to assess effects of the Regulation ECSA message: maintain the block exemption and prolong it for a longer period Consortia increase competition, expand service offerings and encourage technical innovation Consortia allow carriers to maximize the utilisation of vessels whilst maintaining quality services 8

9. 6. Concluding remarks This was just a ‘snapshot’ of many regulatory and policy issues at EU / international agenda; The agenda is complex and fragmented, a more coherent, positive vision is needed, promoting the competitiveness of the industry; Shipping is a global industry: tension between EU and international aspirations must be resolved; Environment: how can shipping be on top of the debate again and reverse the negative image and perception that has unjustly tarnished its reputation ? 9

10. European Community Shipowners’ Associations (ECSA) Hertogstraat 67/2 Rue Ducale – B-1000 Brussel / Bruxelles + 32 2 511 39 40 – mail@ecsa.eu – www.ecsa.eu 10