INTERTANKO / Braemar Seascope Seminar OIL & CHEMICAL SHIPPING TODAY Shanghai 2 March 2005 Peter M. Swift

2005 : INTERTANKO DATES FOR THE DIARY March 3-4TradeWinds-Mare Forum / SHIPPING China 2005, Shanghai April 10-13International Tanker Forum, Athens Sept (tba)Vetting seminars, Singapore / China / Other Nov 4Asian Panel (TBC) Dec 8ITOPF/INTERTANKO/OCIMF Oil Spill seminar, Shanghai Dec 9INTERTANKO Tanker seminar

INTERTANKO International Tanker Forum Athens Tanker Event April 2005 Sponsored by:

The Tanker Industry THE POLITICAL SCENE The changing maritime landscape

Politicization of technical regulation Threat to authority of IMO Threat to international law Criminalisation of companies and seafarers

Regulations have contributed to improvement in maritime safety...

…..protection of life at sea Source: Lloyd’s Register Fairplay

and environmental protection Source: ITOPF. Number of spills above 700 tonnes.

... notwithstanding growth in size of maritime trade Source: Fearnleys Review

Key industry goals Regulatory environment which supports safe shipping operations, environmental protection and adherence to internationally adopted standards and procedures Properly considered international regulation of shipping Global regulation for a global industry, adopted and implemented uniformly

Tanker industry

Increasing politicization of regulation Examples: Phase out of single hull tankers West European Particularly Sensitive Sea Area Moves to open up CLC/Fund Convention and link with substandard shipping Penal sanctions adopted by EU, criminalising accidental pollution Maritime security (e.g hijacking of AIS) Why? Port states versus flag states, and reduced influence of maritime constituency

HOW IT WAS: Examples of positive regulatory developments (the “IMO spirit”) ISM Code and STCW (training) post ‘Estonia’ passenger ferry measures IMO bulk carrier safety package Development of ILO ‘Super Convention’ Outcomes broadly based on technical merits of arguments put forward. Industry viewpoint understood, if not always accepted.

CHALLENGES TO INDUSTRY GOVERNANCE International vs. local, national and regional Liability – EU Criminal penalties vs. International Conventions Safety & Environment – EU (Post Erika & Prestige) vs. IMO/Marpol & SOLAS Sulphur Levels / Air Emissions – EU, USA vs. IMO Security – MTSA vs. ISPS Ballast Water Management – US et al vs. IMO

HOW IT IS: The Challenges Today More political drivers and less consideration of the technical, operational, and commercial interests More unworkable, inconsistent and illogical regulation and less consideration of the practical aspects More pressure for local / regional regulation and less willingness to adopt and apply international regulation

Threat to authority of IMO Global industry needs global regulation IMO agreed to acceleration of single hull phase-out (twice), but under duress EU Directives going beyond MARPOL Interference of UN in New York – genuine linkage to flag

Threat to international law Escorting of single hull tankers out of EEZ by Spain, France et al, in contravention of MARPOL and UNCLOS obligations Detention of seafarers, e.g. in Spain and Pakistan in contravention of UNCLOS Adoption of Criminal Penalties Directive for ship-source pollution European Commission suggestion that UNCLOS might be revised to alter the balance between flag states and coastal states. Willingness of EU to implement measures in conflict with MARPOL

Criminalization Imprisonment of seafarers (Captain Mangouras et al) Activities of US Department of Justice (bounty for whistle blowers) EU Directive on Criminal Penalties (including accidental damage) SUA (Suppression of Unlawful Acts) Convention

Political Action In Brussels In the US Internationally

Action in Brussels Luxembourg then UK Presidency, New Commissioner and Commission staff, New Parliament and MEPs Sulphur levels in fuels still a major issue EMSA Double Hull panel making progress ? New Maritime safety Package under discussion – “MSP III / Erika III”

Commission (The executive) Brussels - The main ”players” European Parliament (Direct election) Council (Member States) EMSA

Interacting with the Commission Jacques Barrot Commissioner for Transport Francois Lamoureux Fotis Karamitsos Director General Director for maritime policy M. Burgelle-Vernet S. TostmanVan Vreckem Unit staff members

EU Maritime Safety Package III Amendment to Directive on Vessel Traffic Monitoring and Information Liability and Compensation (principally Passengers) Recasting of Legislation on Port State Control Role of Classification Societies Marine Casualty Investigations in the EU Maritime Labour Standards Flag State Initiative But how about earlier programmes – Places of Refuge, Ratification of Conventions, Reception facilities

Action in the US Increasing support for signing UNCLOS Presidential support for ratification of Annex VI Overturning of proposals for escort tugs BUT Pressure at state and federal level for regulation of Air emissions, Ballast Water controls, Spill response and more Massachusetts State Law

Action at the International Level Ratification of Key Conventions: HNS / Bunker Convention / HNS-OPRC Protocol / AFS Action on: Places of Refuge / Port Reception Facilities Support for FLAG STATE AUDIT

THE POLITICAL SCENE The changing maritime landscape Summary

Seeking solutions – Politicians and regulators versus the Industry - Everyone has the answer !  Politicians and legislators propose political and legislative solutions  Industry offers technical, operational and procedural solutions  Politicians and public want quick fixes  Industry takes longer term view and cautions against hasty, ill-considered solutions

Whose agenda ? Technical versus Political  Industry advocates heavy fuel oil in only double hulls  Politicians demand accelerated single hull phase-out and extra surveys  Industry advocates new measures at global level  Politicians demand regional and local legislation  Industry pushes for Places of Refuge  Politicians demand information on ’dangerous’ ships and cargoes  Industry refers to UNCLOS, MARPOL and SOLAS  Politicians challenge UNCLOS and MARPOL, and support PSSAs  Industry pushes for Reception facilities  Politicians support interceptions and tanker tracking

The drive to Effective Regulation Regulatory environment which supports safe shipping operations, environmental protection and adherence to internationally adopted standards and procedures Properly considered international regulation of shipping Global regulation for a global industry, adopted and implemented uniformly THE INDUSTRY HAS MUCH WORK TO DO

Thank you 谢谢大家