INTERTANKO Seminar The Tanker World Today Tokyo 10 November 2004 Peter M. Swift

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 Quantity of oil spilled Source: International Tanker Owners' Pollution Federation

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

Our AIMS / 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

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 and link with substandard shipping 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.

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

CHALLENGES TO INDUSTRY GOVERNANCE International vs. local, national and regional Liability – EU Penal Sanctions 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

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 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) Activities of US Department of Justice (bounty for whistle blowers) EU Directive on Criminal Sanctions (including accidental damage) SUA (Suppression of Unlawful Acts) Convention

Action in Brussels Dutch 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 – “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 Marine Casualty Investigations in the EU Amendment to Directive on Vessel Traffic Monitoring and Information Liability and Compensation Flag State Initiative Recasting of Legislation on Port State Control Maritime Labour Standards But how about earlier programmes – Places of Refuge, Ratification of Conventions, Alignment of EU Regulations with IMO revisions ?

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 / Annex VI Support for FLAG STATE AUDIT

Domo arigato Thank you ありがとうございます