Annual

ReInternationalv Chamberi ofe Shipping Internationalw Shipping Federation 2007

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Australian Shipowners Association Beluga Shipping Broström Tankers Canadian Shipowners’ Association Compagnie Méridionale de Navigation Costa Cruise Lines Cunard Line Danish Shipowners’ Association Disney Cruise Lines Edelman European Dredging Association Finnish Shipowners’ Association Hapag Lloyd Holland America Line Irish Chamber of Shipping Japanese Shipowners’ Association Norwegian Shipowners’ Association Princess Cruises Regent Ships Royal Association of Netherlands Shipowners Royal Caribbean and Celebrity Cruises Scandlines Deutschland Seafrance Syndarma The Chamber of Shipping (United Kingdom) Union of Greek Shipowners Verband Deutscher Reeder Windstar Cruises

Designed by Anthony B Ainley MCSD [email protected] Printed by Team Impression [email protected]

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net ReviewAnnual Contents 2007

page 2 Introduction 19 Safe manning and work hours 3 ICS/ISF Office Bearers 21 Industrial relations and wages 3 Secretariat 21 Fair treatment of seafarers following maritime accidents 4 Promoting IMO Treaty Ratification 22 Liability developments 6 Tackling Air Emissions 24 UNCITRAL negotiations on cargo liability 6 Review of MARPOL Annex VI 24 Preserving the UN Law of the Sea 7 Reducing carbon emissions 26 Security at sea 8 Limitation of Liability 28 Maintaining free trade 29 Competition rules 10 The Year in Review 31 Promoting the industry’s profile 10 Solving the ballast water dilemma 32 Facilitation and documentary procedures 10 Flag and port state responsibilities 32 Panama Canal toll increases 11 IMO technical issues 33 Internal affairs 13 Shipbuilding and recycling 34 Publications 14 European Union developments 16 ILO Maritime Labour Convention 35 Committees and Membership 18 Seafarers’ training standards

ICS is the principal international trade association for shipowners, concerned with all regulatory, operational and legal issues.

ISF is the international employers’ organisation for shipowners, concerned with labour affairs and training issues.

The membership of ICS and ISF comprises national shipowners’ associations representing all sectors and trades from 40 countries.

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net Introduction

 This has been a fascinating establish goals, and then provide and challenging year in which to flexibility as to how different types assume the role of Chairman of the of ship operating in different International Chamber of Shipping circumstances may reach these goals. (ICS) and President of the International It is also important that any solution Shipping Federation (ISF). stimulates technical innovation and recognises the link with the equally For the last 12 months, most shipping pressing need to reduce Green House markets have remained extremely Gas emissions. ICS has therefore buoyant, with apparently no greatly welcomed the proposal by the immediate end in sight to the current IMO Secretary General to establish a strong run of freight rates which so ‘Cross-government industry-scientific many sectors and trades have been working group’ to evaluate the enjoying. Of course all prudent strategy to be adopted by IMO. shipowners will recall that shipping markets are notoriously volatile and One cloud on the horizon is the plan cyclical. Yet when the good times are of the European Commission to dilute so prolonged, this can divert attention the right of shipowners to limit their from those critical international liability, in conflict with the principles regulatory developments that may established by IMO. It is very much affect the long term prosperity of hoped that EU Member States will shipowners and the health of the continue their opposition to the industry as a whole. ill-considered draft Directive on civil liability, which adopts the mistaken Mr Spyros M Polemis Greece One of the key strengths of ICS and premise that unlimited liabilities will ICS Chairman and ISF President ISF is that, with their membership somehow make the industry safer and comprising national shipowners’ more responsible. associations, they are detached from the short term commercial environmental performance, which It has also been a busy year for ISF, considerations that preoccupy most has implications both for shipping’s the global employers’ organisation. individual shipping companies, image and its economic well being. In addition to promoting the allowing them to develop - through Although shipping is by far the implementation of the new ILO their comprehensive structure of most environmentally friendly form Maritime Labour Convention expert committees - fully considered of commercial transport, there is governing seafarers’ conditions of industry positions that take account an expectation, from society and employment, ISF has been engaged of the wider picture and longer term politicians, for the industry always to in the important reviews at IMO circumstances. do more, and we must be ready to of international seafarer training meet that challenge. standards and minimum safe manning As outlined in more detail in this on ships. Annual Review - which aims to provide At present, we are engaged in an a concise but comprehensive summary intensive debate at IMO about the The booming demand for shipping of those issues on which ICS and ISF development of more stringent services has led to shortages of are actively engaged on behalf of the controls on ships’ air emissions. qualified seafarers in many sectors. global shipping industry - there are a The issues surrounding the review This is an issue which I am glad to number of serious matters confronting of MARPOL Annex VI are extremely see is at last beginning to receive the ship operators. complex, and whilst ICS has fully attention it surely deserves, given that accepted the need for stricter all shipowners require properly trained Perhaps the most pressing is the controls, it has been promoting the seafarers to operate their increasingly need to improve further the industry’s development of solutions which sophisticated vessels.

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net ICS/ISF Office Bearers 2006/7 ICS Vice Chairmen ISF Vice Presidents ICS and ISF have embarked on  several new initiatives in the last year. A review of their strategy has taken place to ensure they are ready to face the challenges ahead. An Air Emissions Strategy Group has been established to determine long term mechanisms for reductions in emissions. Additionally, we have been seeking to adopt a higher profile in promoting our industry and the work of ICS/ISF.

At the end of my first year in office, I Mr Michael Mr Charles Mr Patrick Mr Luis would like to thank the other Officers Everard Kurz II Decavèle Ocejo of ICS and ISF for their support. United Kingdom United States France Mexico I also commend the efforts of the Chairmen and members of the various committees, sub-committees and panels who provide so much time and Secretariat expertise to direct the work of our Mr Tony Mason Secretary General, ICS/ISF associations, as well as the Secretariat staff who work diligently on behalf of Mr Simon Bennett Ms Kiran Khosla the industry. Secretary, ICS General Manager (Legal)* Miss Rebecca Chetwood Mr John Murray The last 12 months have seen the Administrative Officer Marine Adviser retirement of Chris Horrocks, the previous Secretary General. For over Miss Emily Comyn Mrs Natalie Shaw 35 years, Chris made an enormous Adviser (Shipping Policy) Secretary, ISF contribution to ICS/ISF and the industry, and we wish him well. He has been Mr Peter Hinchliffe Mr John Stawpert succeeded by Tony Mason who brings Marine Director Marine Assistant new perspectives to our work after a Ms Linda Howlett Mr David Tongue career in liner shipping. General Manager (Legal)* Marine Manager

I am confident that ICS and ISF will Mrs Susan Gray Miss Clare Hall continue to work effectively to meet Accountant Publications & the challenges ahead. Marketing Executive

Mrs Janet Ebert Mrs Anita Pow Personal Assistant to Administrator (Shipping Policy & Secretary General Internet) Mrs Helen May Mrs Shantel Ryan Administrator Administrator & Spyros M Polemis Publications Officer *position held jointly

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net Promoting IMO Treaty Ratification

 democratic processes that are followed in the US, there is sometimes a need for Congress to afford greater urgency to the ratification of IMO Conventions.

ICS has identified the following IMO Conventions which it believes it is important for all governments to ratify as a matter of urgent priority: Ballast Water Management, Anti Fouling Systems, Limitation of Liability for Maritime Claims, Hazardous and Noxious Substances (HNS) Liability, Bunker Oil Spill Liability, and MARPOL Annex VI (air emissions). However, there are many other IMO Conventions that require wider ratification and the reasons for highlighting these particular instruments are complex (see opposite). Indeed, as can be seen IMO in session from the Round Table’s Flag State Performance Table (see www.marisec. org/flag-performance) there are several In January 2007, ICS launched governments appreciate that the core Conventions that have been in a global campaign to stress the smooth operation of a global maritime force for many years but which have vital necessity for governments to regulatory regime is impeded by any still not been ratified by a number of ratify and implement Conventions failure or delay on their part in the countries. adopted by the International Maritime ratification and implementation of Organization (IMO), with ICS national international instruments to which In January 2007, the high profile shipowners’ associations emphasising they have agreed at IMO Diplomatic grounding of the UK flag containership to their governments that shipping Conferences. ‘MSC Napoli’, off the southwest coast is an inherently international industry of England, provided an opportunity which depends upon a global The failure of new Conventions to to underline the potential impact regulatory framework to operate enter into force or become widely of failing to bring Conventions into efficiently. ratified also gives encouragement to force. Thankfully, the environmental the promotion of unilateral or regional consequences of the incident were It is crucial that the same regulations regulation. As identified elsewhere in small, but if there had been a major governing matters such as safety, this Review, the industry is increasingly bunker spill, or if the ship had been environmental protection and liability confronted by local regulations at a chemical carrier transporting apply to all ships in international trade variance with IMO rules; apart from hazardous cargo, no internationally and that the same laws apply to all the continuing appetite in Europe agreed compensation mechanism for parts of the voyage. The alternative for regional standards, individual US the clean up costs would have existed. would be a web of conflicting States are developing regulation which This was a point which ICS and others national regulations, resulting in takes little, if any, account of what has were able to emphasise at a special market distortions and administrative already been agreed internationally. ‘emergency hearing’ on the incident confusion that would compromise the The situation in the US is not helped by held by the European Parliament in efficiency of world trade. the long time it can take for Congress February 2007. to ratify IMO treaties. While this is It is therefore very important that partly a reflection of the complex

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net Promoting IMO Treaty Ratification

ICS Ratification Campaign 2007

ICS has identified the following IMO Conventions which it believes it is important for  governments to ratify as a matter of urgent priority:

International Convention on Control and Management of Ships’ Ballast Water (BWM), 2004 ICS is concerned that, in the absence of entry into force of a global regime, there is the reality of proliferating national and local regulations at variance with the IMO Convention, and resultant difficulties as shipowners struggle to comply with conflicting requirements at different parts of a voyage.

International Convention on Control of Harmful Anti Fouling Systems on Ships (AFS), 2001 Because of the fixed implementation date (2003) included in the Convention, the majority of shipowners have ceased to apply TBT paints which damage the marine environment, and the manufacture of non-compliant paint has been greatly reduced. However, so long as the Convention is not in force, a small minority of shipowners may continue, quite legally, to use or else defer the removal of paints that are prohibited by the Convention.

Protocol of 1996 to the Convention on Limitation of Liability for Maritime Claims (LLMC), 1976 The LLMC Protocol entered into force in 2004 and increases significantly the liability limits for a number of maritime claims. The increased levels of compensation for claimants and the international community’s continued endorsement of the concept of limitation of liability are supported by ICS, which is promoting the widespread ratification of this important instrument. ICS is therefore particularly keen to promote ratification of the LLMC Protocol as an alternative to a proposed EU Directive (the draft Directive on Civil Liability and Financial Securities of Shipowners) which would depart from principles agreed at the international level.

International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea (HNS), 1996 The HNS Convention is modelled on the highly successful international oil pollution liability and compensation regime and would establish an international regime for HNS damage, the cost of which would be shared between shipowners and HNS cargo receivers. The failure to enter into force is giving encouragement to regional action and has been cited in a number of European Commission proposals post ‘Erika’ and ‘Prestige’, affecting both non- EU and EU ship operators, including most recently the proposed Directive on Civil Liability and Financial Securities of Shipowners to which ICS is opposed. Until the HNS Convention enters into force, an existing EU Directive on Environmental Liability for Preventing and Remedying Environmental Damage will apply to HNS incidents in the waters of EU Member States.

International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001 The Bunkers Convention will establish an international liability regime for damage caused by spills of oil carried as fuel, and provide for the prompt and adequate compensation of claimants. ICS is supportive of the uniformity and certainty which the widespread ratification of the Convention would ensure. As with the HNS Convention, the failure of this Convention to enter into force is giving encouragement to regional action, in Europe in particular.

MARPOL Protocol of 1997 (MARPOL Annex VI - Prevention of Atmospheric Pollution by Ships) Although MARPOL Annex VI entered into force in 2005, the relatively low number of ratifications could lead to problems when the current review of MARPOL Annex VI is finalised, and governments will be required to adopt amendments to the Protocol concerning more stringent standards. In the meantime, non-parties to Annex VI are less likely to comply with existing requirements such as the need to ensure the provision of bunker delivery notes confirming that fuel quality meets IMO requirements.

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net Tackling Air Emissions

 The reduction of air emissions of emission reduction measures. It from ships has entered centre stage has drawn attention to the need to of regulatory debate, with potentially take account of the environmental major implications for both shipping justification for improvements economics and the image of the proposed, and to consider fully the industry. While the need for stricter relationship between measures regulations is currently being discussed to reduce local air pollution, such at IMO, public concern over air quality as sulphur, and the subsequent and the impact of carbon emissions implications for CO²/Green House on climate change means this is also Gas emissions. In particular, ICS has becoming a mainstream political issue. argued that there should be choice with regard to compliance measures. Review of MARPOL Annex VI In addition, ICS has made a number of detailed suggestions about other The immediate challenge for the aspects of the review, including the industry is the IMO review of reduction of emissions of nitrous MARPOL Annex VI and the probable oxides, particulate matter and volatile introduction of more stringent controls organic compounds. on atmospheric emissions, especially with regard to sulphur and its content The prevailing view, following in ships’ fuel. But whilst ICS has fully extensive debate within various ICS appreciated the political impetus to Committees, is that IMO should the debate, it has been important to focus on the environmental outcome remind governments that the agreed required, but should encourage terms of reference for the current different ways of achieving the agreed round of IMO discussions have been emission reduction goals. Technical to focus on the technical and objective innovation certainly needs to be scientific arguments relevant to a stimulated but, where regulation variety of solutions. requires technical solutions, it should be established that proven and robust At the time of writing, and building technology does in fact already on IMO technical discussions in Oslo exist. Above all, any new regulations in November 2006, IMO is about should be aimed at delivering an to consider the latest proposals overall net environmental benefit. ICS on the approach that might be does not wish to solve one problem taken. Possible options include by creating another. Methods for reducing the current sulphur cap reducing sulphur emissions should in Sulphur Emission Control Areas not inadvertently lead to an increase (SECAs) from 1.5% to a figure in Green House Gas emissions, for such as 1.0%, although it has been example by generating additional CO² suggested by some that such a cap from oil refineries. should apply everywhere, and be achieved by a mandatory switch to It might be the case that CO² the use of distillate fuels by a date as emissions from shipping, as opposed unrealistically early as 2010. to shore based refineries, would not be increased by switching to distillate, ICS has proposed a new goal-based but the responsible approach is to approach to emissions reduction and suggest to the regulators that they has called for a holistic consideration consider the wider implications of their

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net of California requirements for 0.5%  sulphur fuels to be used in auxiliary 600 CO2 (grams per ton-kilometre) engines up to 24 nautical miles off the coast were due to be implemented in January 2007, but have been subject 500 to a legal challenge by the Federal government, supported by an industry coalition. However, California has 400 indicated that its intention is to extend the requirements to main engines in the near future. 300 Reducing carbon emissions air The other pressing challenge for the 200 freight industry is to meet demands to reduce heavy truck cargo vessel cargo vessel 747-400 carbon emissions due to concerns with trailer 2,000-8,000 over 8,000 1,200 km about global warming, although at a 100 dwt dwt flight time when bunker prices are expected to remain high, cutting CO² emissions 50 21 15 540 should be a matter of enlightened self- 0 interest.

Comparison of CO2 emissions by different transport modes A number of recent media reports Source: NTM (Swedish Network for Transport and the Environment) have rather misleadingly suggested that shipping’s total carbon emissions are greater than those of the airline industry. There is actually a lack of decisions and that the issues of sulphur The majority view amongst ICS definitive data, but some expert and CO² are linked. members is that other compliance sources estimate that shipping’s total options, such as abatement and carbon emissions are less than those In principle, despite the considerable exhaust scrubbing technology, and the of aviation. But in any case, such economic costs, ICS has no objection extension of Sulphur Emission Control reports are not comparing like with to a switch to distillate fuel for those Areas (in addition to those already like. Maritime transport is responsible shipowners who see this as the most agreed under the existing MARPOL for the carriage of 90% of all world practical solution. But, depending regime for the Baltic and the North Sea) trade, including almost everything that on who pays the bills, it is far less should also be fully explored before the we buy in the shops. More to the attractive to some shipping sectors industry settles for one single solution, point, in terms of carbon produced than others, and there are also big the implications of which have not by every tonne of cargo transported questions about the ability of the been properly evaluated. one kilometre, shipping is at least oil industry to deliver the quantities two or three times cleaner than road needed if the whole world fleet was At the operational level, shipping is or rail transport and around 20 times required to burn distillate everywhere. also confronted with the immediate more environmentally efficient than The environmental benefit of using challenge of complying with regional air transport. With regard to concern low sulphur fuels far from land in the fuel quality requirements in California about reducing carbon emissions, middle of the ocean also needs careful and in European ports at variance transport by sea should be seen as examination. with those currently agreed by IMO part of the solution rather than the and thus pre-empting the debate problem. about Annex VI revision. The State

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net  ICS and its Maritime Law Committee are closely engaged in a number of issues concerning the growing financial and, especially in pollution cases, criminal liabilities to which even the safest and most responsible shipowner can now find himself exposed. Whilst maintaining representation at the IMO Legal Committee and the International Oil Pollution Compensation (IOPC) Fund, much of ICS’s recent attention has had to be focused upon unwelcome developments in Europe.

Specifically, ICS (working with ECSA and the International Group of P&I Clubs) continues to oppose the EU draft Directive on Civil Liability and Financial Securities of Shipowners. It contains a However, this is not to say that Work is continuing at IMO on the number of unwelcome proposals: the shipping does not have a major part measurement of Green House application of more stringent rules to to play in reducing carbon emissions, Gas emissions from ships, the ships flagged in States not parties to and ICS is taking an active role in establishment of a carbon indexing the 1996 Protocol to the IMO Limitation discussions at IMO to achieve this, not system, and the development of Liability for Maritime Claims (LLMC) least by stressing the need for IMO to of more fuel efficient engine Convention, including ‘gross negligence’ address CO² in parallel with the review technologies. However, the as conduct barring limitation; and a of MARPOL Annex VI. growing political pressure for action requirement for shipowners to furnish on climate change means that certificates of financial security issued by Addressing carbon emissions is indeed the shipping industry will need to EU Member States instead of P&I Clubs’ a major challenge, especially as address demands for specific CO² certificates of entry as recommended maritime trade is expected to continue reduction targets. An important by IMO Guidelines. The Commission expanding. Future rates of growth are, issue will be how shipping can is also seeking a mandate to propose of course, uncertain, but the volume respond to the European Union’s changes to the limitation of liability of world trade has increased by 50% recent political declaration, in regime contained in the 1996 LLMC in the last 15 years. March 2007, that it intends to cut - Protocol by incorporating it into EC law. across the board - its total carbon IMO authority for discussions about emissions by between 20% and Instead, ICS believes that the best reducing CO² emitted by ships is 30% by 2030 and persuade the rest means of ensuring that the LLMC derived from the 1990s Kyoto Treaty of the world to do likewise. Protocol is implemented, in the (although shipping is not explicitly uniform fashion that IMO requires, addressed by Kyoto itself). Progress at Discussions about reducing carbon is to ensure that EU Member States IMO has therefore been complicated emissions in shipping have probably ratify the Convention, which many by maritime administrations in some not yet really begun in earnest but, of them have failed to do. Moreover, emerging economies, which have as the political demand for action bureaucratic requirements for States argued that under the current Kyoto increases and the Kyoto Treaty to issue certificates of insurance are framework they should be excluded comes up for review before expiry simply unnecessary when, as agreed from any new global rules on in 2012, the shipping industry is by IMO and reflected in its Guidelines, maritime CO² emissions. preparing to respond. a certificate of entry in a P&I Club

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net Limitation of Liability

should be perfectly adequate evidence the IMO liability regimes - The European Commission’s aim of  of financial security. specifically, that it is desirable for creating a system of unlimited liability liabilities such as environmental regardless of fault cannot be supported While many EU Member States are damage to be subject to a system of by shipping companies. Unlimited understood to be opposed to the compensation that is clear and simple, liabilities may actually have the effect Commission’s proposals, which were and which results in prompt payments of discouraging some responsible not taken forward by either the Finnish without drawn-out legal arguments. shipping companies from continuing to or the German EU Presidencies in This is achieved by imposing strict operate, with only the less responsible 2006/2007, the European Parliament liability on the shipowner but which wanting to take their place. has regrettably endorsed most of the is of necessity linked to a right to limit Commission’s ideas despite intensive such liability. It must be hoped that EU Member efforts by industry to temper the States, and their transport ministries, Parliament’s conclusions. Ironically, the effect of imposing continue their informed resistance unlimited liability whereby a single to the Commission’s proposals, More disturbing, however, is the incident could potentially bankrupt notwithstanding the rather unfair concern that the EU draft Directive all but the very largest multi-national accusation by the EU Transport represents the continuation of a long corporations, could have a negative Commissioner to the effect that those term campaign by the European effect on the industry’s commitment to governments leading opposition to the Commission to reduce the right of safety and the provision, without legal Commission’s proposals are doing so shipowners to limit their liability. This wrangling, of adequate compensation to harbour sub-standard ships. is notwithstanding the consensus for maritime claimants. amongst governments internationally, including EU Member States, in support of the principle of limitation, most recently reaffirmed by the decision of the IOPC Fund in 2005 not to revise the Civil Liability Convention. Moreover, while levels of liability for death and injury to passengers were increased significantly by the 2002 Protocol to the IMO Athens Convention, the compromise which ICS helped to broker at the IMO Legal Committee meeting in October 2006, on the provision of compensation for terrorist incidents, recognised explicitly that liability must be insurable.

The Commission however (and the key players in the Parliament) appears to believe that imposing potentially uninsurable liabilities on the industry will somehow make it operate ships more responsibly. In short, it seems to be confusing the concept of liability with deterrence. In taking this line, it would appear that the Commission has misunderstood, or is wilfully ignoring, the philosophy underpinning

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net The Year in Review

Solving the ballast water the implementation of the Convention, guidelines on ballast water 10 dilemma so there is no longer any reason for management, which were originally ratification to be delayed. produced with Intertanko in the ICS has been seeking to develop a 1990s to help shipowners comply solution to an impossible situation However, the issue of available with voluntary requests to follow confronting shipowners currently technology also highlights the coastal state environmental protection placing orders for new tonnage. problems caused by IMO agreeing to programmes. Under the terms of the IMO fixed implementation dates for new Ballast Water Management (BWM) regulations without any certainty as to Flag and port state Convention, adopted in 2004, new when they will enter into force (similar responsibilities ships built after 1 January 2009 will problems arose with the Anti Fouling be required to be fitted with special Systems Convention which required Shipping companies have primary treatment equipment to eliminate ships to cease using TBT paints - as responsibility for safe and clean unwanted marine micro-organisms. most now have - from 2003, but which operations, but they are dependent This will replace a requirement has also not yet entered into force). on governments to enforce the to undertake deep water ballast rules, especially in their capacity as exchange at sea, which is currently the In the United States, meanwhile, flag states. In co-operation with the only option available to most existing the situation with ballast water other members of the Round Table ships. The problem, however, is that requirements is further complicated of international shipping associations there is still no technology that is because the Bill which Congress is (BIMCO, Intercargo and Intertanko) officially proven to comply with the considering during 2007 in order to ICS and ISF have updated the Shipping required IMO standards for treatment implement the IMO standards contains Industry Guidelines on Flag State systems. reference to a ‘kill standard’ 100 times Performance, which set out criteria more stringent than that required by by which a responsible ship operator Many governments are sympathetic IMO. Individual US States (including might assess the quality of a ship to the recommendation of ICS, which those in the Great Lakes) and other register whose flag he chooses to fly. is that the date of introduction of the governments around the world also new treatment methods should be continue to introduce local ballast suspended until the technology has water rules at variance with the IMO been approved. However, because regime and on which ICS has sought of legal complexities, a firm decision to provide advice to industry. It is is not expected until July 2007. ICS hoped that common sense will prevail, has therefore been trying to find a since the alternative could be chaos practical solution and has submitted as ships struggle to comply with text for a possible IMO resolution differing standards in different parts which would allow Parties to the of the world. ICS is also watching the Convention to defer enforcement of current legal case concerning the US the new equipment requirements until Environmental Protection Agency’s the technology is available. enforcement of the US Clean Water Act very closely. It is important that It must be stressed that ICS wishes the EPA is only required to regulate to see the IMO ballast regime ships’ discharges along the lines of the implemented as soon as possible and IMO BWM Convention. is encouraging governments to ratify the new Convention, which has still Now that IMO has more or less not entered into force. In November completed its guidelines on 2006, the IMO Marine Environment implementation of the BWM Protection Committee adopted most Convention, ICS is in a position of the relevant Guidelines concerning to update its own comprehensive

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net The Guidelines are accompanied audits, under the auspices of IMO, of State Control Committee at which 11 by a Flag State Performance Table the implementation of IMO rules by ISF participates as part of the ILO which lists ‘potential negative national maritime administrations. delegation. performance indicators’ against each flag, based on such data as port In March 2007, Liberia was amongst Following years of lobbying by ICS/ISF, state control statistics, ratification the first to complete its audit and, an important development within the of maritime conventions and the though not required to do so, in a Paris MOU is the creation of a new types of classification societies to victory for transparency publicised targeting system whereby ships with which different flags delegate their its results. It will take some time a good PSC inspection record will be survey and ship inspection work. for all IMO Member States to be subject to less frequent inspections, The Guidelines and Table have been audited, and there is a need for IMO allowing resources to be targeted at amended to reflect developments such governments to provide more auditors that small minority of ships more likely as the adoption of the ILO Maritime and the funding required for training, to have serious deficiencies. In the Labour Convention and the entry into although some 25 audits are expected context of the parallel development force of all MARPOL Annexes, the to be completed by the end of 2007. of a new EU Directive on Port State most recent being Annex VI on air Control, ICS/ISF (with ECSA) have emissions which a surprisingly large Both the IMO Scheme and the supported these proposals, while number of ‘quality’ flag states have Round Table Guidelines provide offering a number of technical still not ratified. means to distinguish between suggestions and emphasising the those ship registers which take importance of the EU working through The Round Table Guidelines are their responsibilities seriously and the Paris MOU. intended to complement the new those whose primary purpose is to IMO Voluntary Member State Audit collect registration fees. They will IMO technical issues Scheme. In early 2007, the IMO also hopefully provide an incentive Scheme became fully operational with to the vast majority of maritime A major proportion of ICS resources the completion of the first external administrations that are committed remains dedicated to representing the to continuous improvement, helping industry at IMO, at all of the meetings them to gain the support they need of its expert technical sub-committees, from their political and maritime and in most of its correspondence communities. group work. The aim is to influence the outcome of proposals for new Flag state responsibility is the first line regulations so that they take full of enforcement of IMO safety and account of the practicalities of ship pollution prevention rules. However, operations and contribute to the port state control inspection remains further improvement of safety and a vital adjunct that has developed environmental protection. Although into a global network of regional governments at IMO may not always PSC authorities. Although there is agree with the industry’s opinions, still a need for more harmonisation in it is vital that they are heard and procedures, most of the regional PSC understood so that IMO is aware of regimes are based on the Paris MOU the consequences of its decisions. (Memorandum of Understanding) on PSC, which embraces EU nations In addition to the important matters as well as Russia and Canada. The discussed elsewhere, such as air ICS/ISF Secretary General was pollution, ballast water management pleased to attend the Paris MOU’s and ship construction rules, ICS 25th anniversary celebration held in is immersed in a huge number of Bonn in May 2007, in conjunction technical issues impacting on ship with the annual meeting of its Port operators. These are too numerous to

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This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net mention fully in a report such as this, by IACS when it applies the adopted associations (including ICS) has 13 but the following is a sample of the standard through its Common nominated an industry representative. more important ones. Structural Rules. ICS is also heavily ICS is also now party to two IMO involved in IMO discussions on Correspondence Groups established to In December 2006, at the IMO hydrocarbon gas detectors and coating supervise the GBS pilot project and to Maritime Safety Committee (MSC) and corrosion standards for double develop the ‘safety level’ required of meeting held in Istanbul (due to the hull tankers. ships which the standards are meant refurbishment of the IMO headquarters to deliver. in London), ICS made a presentation Another subject on which ICS (on behalf of the Inter-Industry Working is currently focused is IMO’s ICS has also remained in close Group) on tanker explosions, focusing recommendations on the servicing dialogue with the International on the human element aspects and of lifeboats. ICS has supported the Association of Classification Societies the work of the Inter-Industry Human objectives of recently introduced (IACS) about the refinement of its Factors Task Force, which is being led procedures concerning the inspection new Common Structural Rules (CSRs) by ICS and is developing ideas for and maintenance of lifeboats which were implemented with some improved training and for making the to be undertaken by qualified controversy in 2006. A major question application of the IMO International personnel. However, compliance is how the new IACS rules for tanker Safety Management (ISM) Code more with requirements for servicing to and bulk carrier construction might effective. ICS and the industry have be undertaken by personnel certified be harmonised. ICS met with IACS been invited to make a progress by the manufacturer is proving very in October 2006 and considered report at the meeting of the Marine difficult for some ship operators. Local various issues raised by ICS members Environment Protection Committee manufacturers are often difficult to including corrosion margins and (MEPC) in 2007. It is very encouraging identify, and in some cases may no welding requirements. The meeting that IMO has elected to await the longer trade, while organisations with also discussed the system put in place results of the industry work before an exemplary history of inspecting by IACS, which seems to be robust, to developing its own proposals, in order lifeboats are now ineligible to attend respond to feedback from shipowners to prevent a repeat of recent incidents. many ships. Encouragingly, IMO has and others about the CSRs. acknowledged ICS’s concerns which The IMO MSC also considered will hopefully be addressed in 2007. In December 2006, ICS and the the report of the IMO Group other Round Table organisations met of Independent Experts on the Shipbuilding and recycling with the IACS Council in London implementation of the ISM Code, and confirmed the continuing need which has been chaired by ICS. This ICS has continued to co-ordinate for dialogue on issues such as CSRs work will continue in 2007, but in shipowner representation in the work and Goal Based Standards. The ICS a welcome development, contrary at the IMO Maritime Safety Committee Chairman also led the ICS delegation to what had been anticipated, it is on the development of Goal Based to Japan in September 2006, and the likely that IMO will not suggest major Standards (GBS), initially for ship United States in March 2007, for the amendments to the ISM Code in the construction but eventually for all latest rounds of tripartite discussions immediate future. Instead, it is hoped, equipment on board. between shipowners’ representatives, the focus will be on more effective shipyards and classification societies. implementation. The completion of this complex These meetings have advanced work, not least requirements for the discussion about improving the use In December 2006, IMO also adopted verification of compliance, will not of technical feedback from owners standards for the protective coatings now be finalised until the completion beyond the relatively short warranty of ballast tanks. Despite ICS efforts, of a pilot project for bulk carrier period, as well as concepts such as there remains some potential and oil tanker construction. The providing ships with a ‘green passport’ ambiguity about the interpretation of pilot project will be supervised by to help facilitate safe ship recycling. the standards, although in practice a panel of experts to which the The meeting also continued the it is expected these will be resolved Round Table of international shipping dialogue about the implications of

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net 14 European Union developments

The role of the European Union in international maritime affairs is becoming increasingly significant, both in terms of regional legislation affecting ships trading to Europe and the influence that the EU, with its membership of 27 states, enjoys at bodies such as IMO and ILO.

Representation of the global industry’s views by ICS/ISF in Europe is complicated given the need to address the Member States that comprise the EU Council of Ministers, the European Parliament - which has little detailed knowledge of shipping Class principally acting on behalf of recycling yards, demonstrating which but enjoys co-decision powers with the shipyard rather than the owner facilities meet acceptable standards, the Council on most maritime issues, during construction. to which the industry can refer when and the European Commission disposing of redundant ships. which is responsible for initiating the ICS is also heavily involved in discussions majority of new legislation. While in the IMO Marine Environment In a different context, ICS continues to the Commission’s proposals may be Protection Committee, which is represent the industry in connection motivated by a desire to improve progressing work on a new IMO with discussions at the Organization maritime safety, there is sometimes an Convention on ship recycling standards of Economic Co-operation and underlying tendency to increase the intended inter alia to address concerns Development (OECD) about a political competence of the EU, when about working conditions in the new worldwide agreement on the the opportunity arises, for its own sake. recycling yards (mostly located in Asia) elimination of subsidies and market that should be ready for adoption in distorting measures in the shipbuilding In general, ICS and ISF work particularly 2009. industry. The negotiations were closely with the European Community ‘paused’ in 2005 due to seemingly Shipowners’ Associations (ECSA), ICS also continues to lead the Inter- insurmountable differences between most of whose member national Industry Working Group on ship the European Union and Asian shipowners’ associations also belong recycling which is co-ordinating the shipbuilding nations over pricing to ICS/ISF. However, it is also necessary industry’s position on the development policies. However, an OECD workshop for ICS/ISF to give particular emphasis of the new Convention, and the in Paris in December 2006, in which to those aspects of EU proposals measures that may need to be taken ICS took part, possibly paved the which have implications for the global by industry on a voluntary basis in the way for dialogue to continue. This is industry, and in the last 12 months the period before the Convention comes important, as global shipyard capacity ICS Chairman/ISF President has had into force. In view of the high political continues to expand rapidly and there meetings with both the EU Transport profile that the issue has gained in is a danger that once it outstrips Commissioner, Jacques Barrot, and the Europe, ICS has been encouraging the demand for new tonnage - perhaps EU Commissioner for Maritime Affairs EU to refrain from regional action until after the 2010 implementation date and Fisheries, Joe Borg. the IMO Convention is adopted. That for the introduction of double hull said, one particular area where the EU tankers - any subsequent price cuts Of immediate interest to the global might be of assistance is with regard to and speculative ordering could result industry is the progress of the so called establishing a system of approval of ship in another period of overtonnaging European Maritime Safety Package leading to depressed shipping markets.

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which (as discussed elsewhere) is While the Parliament has processed In December 2006, ICS and ISF intended to address various parts of the Commission’s proposals quickly submitted detailed comments from the transport chain. The ‘package’ and with few changes, the Council the international perspective. Among comprises proposed EU Directives of Ministers, with full support from other things, these comments covered: and Regulations on port state control industry, has so far elected not to take EU ambitions regarding full IMO (PSC), flag state compliance, vessel forward the two most controversial membership and greater co-ordination traffic monitoring (VTM), civil liability proposals, with the majority of of Member States’ positions at IMO of shipowners, passenger liability, Member States preferring not to treat and ILO meetings; the Commission’s and classification societies. ICS and them as part of an indivisible package. desire to revise UNCLOS; and its ECSA have submitted comprehensive Whether this resistance will be proposal for a ‘Common European comments on most of these proposals, sustained under future EU Presidencies, Maritime Space’ (both discussed some of which (PSC and VTM, the however, remains to be seen. elsewhere). ICS/ISF also provided latter mandating designation of detailed information on a number ‘places of refuge’ for ships in distress in The other major thrust of ICS/ISF of specific questions raised by the line with IMO recommendations) have activity concerns the current EU Commission in its ‘Green Paper’ been generally welcomed. However, Maritime Policy Review being including environmental, training and the civil liability and flag state conducted under the auspices of labour affairs issues. ICS/ISF have also compliance Directives are controversial. the EU Directorate for Fisheries and been present at many of the hearings As explained elsewhere, the civil Maritime Affairs. While the Review is and events that have formed the year liability proposals are in conflict with meant to cover maritime policy in the long ‘consultation process’ which will the legal framework adopted by broadest sense, a surprisingly large conclude in June 2007, after which IMO, while the flag state compliance proportion of the proposals contained time the Commission is expected Directive appears to reduce the scope in the Commission’s ‘Green Paper’, to publish its detailed proposals, to for independent action by EU Member launched in June 2006, are directly which the global industry will need to States; one concern, in the longer relevant to international shipping. respond. term, is the implication for the quality of technical decision making at IMO.

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net 16 ILO Maritime Labour Convention can Convention be ratified and implemented. A major part of ISF’s resources remains dedicated to encouraging As a consequence, the worldwide ratification of the the Convention International Labour Organization (ILO) was adopted Maritime Labour Convention (MLC), at ILO with virtually which was adopted by governments, unanimous support from maritime unions and shipowners’ representatives administrations. However, it will be at a three week Diplomatic Conference important to maintain the momentum in Geneva, in 2006. so that it enters into force as soon as possible, providing the level playing For the first time, 67 ILO legal field for labour standards that is instruments covering such matters required by both shipping companies as conditions of employment, and seafarers. ISF has therefore hours of work, medical treatment, participated in a series of promotional repatriation, and accommodation seminars and high-level missions with at sea have been consolidated into governments, organised by ILO in Latin a single ‘super convention’ that will America, Asia, Russia and Europe. ISF be enforced internationally both (with ECSA) has also been engaged in by flag state inspection and port detailed discussions that are already state control. The shipping industry taking place within the EU institutions has gained much credit from the about the legal framework for comprehensive scope of the new applying the ILO Convention to ships Convention and its declaration of trading in Europe. acceptable employment standards that must be applied worldwide. As In order to assist understanding of an instrument governing detailed the new requirements amongst ship employment conditions for an entire operators and employment agencies, industrial sector globally, the ILO MLC ISF has produced a comprehensive is probably unique, and represents the Guide to the ILO Maritime Labour ‘fourth pillar’ of international maritime Convention, published in the Summer regulation along with the IMO SOLAS, of 2006, of which thousands of MARPOL and STCW Conventions. copies have already been distributed worldwide. An important aspect for While the concept of the ‘super employers is the new requirement for convention’ was developed by ISF ships to be issued with a Maritime members and its ILO ‘social partner’, Labour Certificate, usually following the International Transport Workers’ inspection by a classification society, Federation (ITF), great care was and for ships to maintain a Declaration taken during the 5 years of tripartite of Maritime Labour Compliance. The negotiations to ensure ownership of details concerning implementation the requirements by governments, of these new arrangements will be both in terms of compatibility with complex, and throughout 2007 will national employment law (addressed be the subject of ongoing dialogue by the ILO concept of ‘substantial between ISF and Class, as well equivalence’) and with regard to as between national shipowners’ the ease with which the new ILO associations and their governments.

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This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net 18 Seafarers’ training standards in some sectors, this issue is all the cross referenced with STCW medical more pressing. It is ironic that in training standards for seafarers) is ISF is leading employer representation some countries significant numbers of expected later in 2007. in an important IMO review of the trainees may be undergoing expensive Standards of Training, Certification officer training, at colleges approved by In parallel with the major STCW review and Watchkeeping for Seafarers the administration, with little prospect exercise, ICS has chaired a human (STCW) Convention - which governs of being employed internationally by a element sub-group of the Inter-Industry the competence standards that must reputable shipping company. Working Group on Fires and Explosions be met by the world’s 1.25 million in Chemical Tankers. The group made a seafarers serving internationally. In January 2007, with the full number of recommendations regarding support of ISF, IMO commenced the need to revisit the specialist It is now 10 years since the radical a detailed review of the STCW training standards for tanker personnel STCW amendments entered into force, Convention to identify potential areas contained in STCW Chapter V, including imposing additional responsibilities for improvement. ISF submitted a the need to inculcate seafarers with the on employers, flag states and, chapter-by-chapter gap analysis of utmost importance of safety culture and most critically, those labour supply STCW, with a number of detailed the need for strict adherence to safety nations responsible for the quality of suggestions for further discussion procedures. On behalf of the group, seafarers’ training. In particular, the ranging from the possibility of further ICS has presented its recommendations revised Convention introduced a new refinements to the ‘white list’ process to the relevant IMO Committees. As competence based approach to the to the need for greater emphasis to requested by ICS and ISF, these are delivery of training, with assessment be given to training in environmental now expected to be addressed by the focusing more on seafarers’ ability to management. Encouragingly, many broader review of STCW. perform tasks actually required on of these ideas have been taken board ship rather than knowledge forward by IMO for further discussion based examinations. ‘STCW 95’ also in early 2008, with a view to IMO brought into play a new degree of adopting any required changes to supervision, in the form of the so STCW by 2010. called IMO ‘white list’ of nations that have provided IMO with sufficient In a separate exercise, IMO is also documentary evidence of compliance looking to clarify the competence with the new requirements. These standards for ‘Able Seamen’, a have been supplemented since 2004 responsibility transferred to IMO by reports on the results of national because the existing ILO Convention quality standards audits. on the certification of ABs was not incorporated into the new ILO In so far as any correlation is possible, Maritime Labour Convention. This statistics concerning the industry’s aspect has additional interest for safety and environmental performance employers because the ‘AB’ (senior suggest that the new regime has rating) grade is used as a ‘benchmark’ been a tangible success. Nevertheless, rank in collective bargaining although STCW has gone a long agreements with seafarers’ unions. way in restoring confidence in the validity of seafarers’ certificates from Elsewhere, ISF has been involved with emerging labour supply countries, the final updating of the International anecdotal evidence amongst ISF Ships’ Medical Guide, participating members suggests that standards in a group co-ordinated by the in some training institutes may still World Health Organization, ILO and be deficient. In view of the acute IMO. Publication of this important shortages of officers that are emerging new edition of the Guide (which is

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net Safe manning and work hours The approach taken by ISF, which has proposed that any ambiguity about 19 has made a number of detailed the mandatory status of existing IMO In January 2007, a major review of submissions to IMO on the issue, is Guidelines on safe manning could be existing IMO requirements for flag that the key to ensuring that safe removed by elevating their status to states to establish safe manning manning levels are maintained and, that of an IMO Code. The industry has levels began in earnest at the IMO above all, that fatigue is prevented is also suggested taking account of new Sub-Committee on Standards of to ensure that international regulations technology, such as the integration of Training and Watchkeeping. The governing seafarers’ work hours are bridge systems, and its possible effects review has been given impetus properly enforced, along with existing on reducing workload. by concerns that some flag states prohibitions on such practices as solo might somehow be competing for watchkeeping at night. Encouragingly, the suggestions from shipowner customers with regard ISF and ICS have been positively to the manning levels that they are In particular, ISF has suggested that the received by IMO and will be given willing to approve, and the extent minimum rest hour provisions of the more detailed consideration in to which fatigue might still be a STCW Convention might be aligned 2008. However, the prevention and contributory factor in maritime with the stricter requirements of the mitigation of fatigue is a complex casualties. While ISF and ICS have new ILO Maritime Labour Convention subject which needs to be dealt with supported the need for a review, they (a minimum of 77 hours per 7 day holistically. Meanwhile, to encourage have cautioned IMO as to whether period as opposed to 70 hours under strict compliance with IMO and ILO further amendments to its Guidelines STCW, with a requirement for individual work hour requirements, ISF continues on the Principles of Safe Manning are seafarer’s work hours to be recorded to promote the use of its Watchkeeper necessarily the best way to proceed. on a mandatory basis). Additionally, ISF computer program.

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net 20 2006 Selective Comparison Wage Costs of Able Seamen Source: ISF 400

350

300

250

200

150

100

50 395 375 111 104 100 74 63 0 Norway greece Ukraine Philippines India China Myanmar

BASE

2006 Selective Comparison Wage Costs of Chief Officers

300

250

200

150

100

50 260 190 100 91 88 81 54 0 Sweden UK India Sri Lanka Ukraine Philippines China

BASE

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net Industrial relations and wages register ships to obtain protection Fair treatment of seafarers 21 from secondary industrial action by ITF following maritime accidents ISF is the counterpart to the affiliated dockworkers by paying wage International Transport Workers’ rates significantly above what would The treatment by local authorities Federation (ITF), which is ISF’s official otherwise be the global market rate. of seafarers unfortunate enough to ‘social partner’ at ILO, where the two ISF acknowledges the operational be involved in maritime casualties or organisations co-ordinate the positions need for employers to enter into pollution incidents is an important of national shipowners’ associations these agreements, but the fact issue for the industry. Following some and seafarers’ trade unions respectively. remains that the ‘voluntary’ shipowner recent high profile cases (such as the welfare contributions required by ITF ‘Prestige’ in Spain and the ‘Tasman ISF (with ITF) also co-ordinates agreements have provided ITF with Spirit’ in Pakistan) where masters and representation on the ILO Joint significant funds to employ inspectors crews were detained by investigating Maritime Commission, which uniquely who in turn enforce the ITF ‘FOC’ authorities, apparently without in the ILO system is a bipartite body campaign. adherence to proper due legal process, which, amongst other tasks, has IMO and ILO established a tripartite responsibility for agreeing to changes Today, it is increasingly recognised that working group on the subject, with to the ILO Minimum Wage for Able distinctions between open registers ISF/ICS providing the official employers’ Seamen. Following an agreement in and national flags are meaningless representatives. This led to the 2006, the ILO minimum basic wage which is why IMO and ILO do not development of IMO/ILO Guidelines increased from US$500 to US$515 per recognise use of the term ‘FOC’, which on the Fair Treatment of Seafarers, month on 1 January 2007 (there will is considered to be unreasonably which address the key responsibilities be increases to $530 and $545 per pejorative. Indeed, published of detaining states as well as those of month in 2008 and 2009 respectively). performance statistics demonstrate flag states and the seafarers’ country However, with the addition of that open registers, such as Liberia of residence. Sections on shipowner overtime and leave payments, the and Bahamas, have amongst the very and seafarer obligations are also total minimum wage package is best safety and port state control included. considerably higher. records. Liberia, moreover, was the first government to ratify the new ILO It was thought that these voluntary Most seafarers are paid far more Maritime Labour Convention. Guidelines would be readily approved than the ILO minimum, but increases by the IMO Legal Committee and the to the ILO minimum impact on Even in ITF circles, many now appear ILO Governing Body. However, at the collective bargaining agreements to recognise the contradictions of its IMO Legal Committee in May 2006, (CBAs). The quantum of changes to anti-FOC Campaign. ITF is dependent the United States made a number of the ILO minimum is therefore important. for so much of its income from ships objections, principally due to concerns Shipping is virtually the only industry for using open registers, which it would about how the Guidelines might which a UN body sets an international lose if the campaign achieved its potentially affect its treatment of wage minimum, albeit recommendatory long term goal of returning these seafarers suspected of involvement in and with caveats for developing ships back to OECD flags. But the terrorism. However, following intensive countries’ ships. The reality, however, modern policies of these ‘traditional’ lobbying by ISF/ICS and seafarers’ is that the vast majority of seafarers flags, in seeking to attract ships unions, the Guidelines were eventually from developing countries earn many owned by foreign companies, are endorsed by IMO in October 2006. times more than is paid for comparable virtually indistinguishable from open shore based work in their countries of registers. In what could turn out to It is now important that the IMO/ILO residence. be a radical move, ITF has announced Guidelines are promoted widely, both a fundamental review of its FOC by governments and industry, as the As a matter of principle, ISF does not Campaign, a development which ISF internationally accepted standard for agree with ITF’s 50 year long ‘Flags of and its members will be monitoring treatment of seafarers by investigating Convenience’ (FOC) campaign which with much interest. authorities. ISF/ICS and ITF are requires many employers using open discussing how this might best be

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net 22 done, in order to ensure that they Governments refused to accept While the industry maintains that are successful in protecting the rights responsibility for compensating compensation should not be confused of seafarers suspected of safety and passengers who are terrorism victims, with punishment, there is clearly pollution offences. rejecting the argument that a terrorist a need to ensure that compulsory attack on a ship was an attack upon insurance does not allow sub-standard The separate issue of charging seafarers society as a whole. However, at the ships to be protected unwittingly by and shore based personnel with IMO Legal Committee in October the mutual insurance system. One criminal as opposed to civil offences for 2006, a compromise solution, particular matter that is being looked unintentional pollution, making them supported by ICS, was accepted. at is the impact of competition potentially subject to large fines or Under the compromise, shipowner regulation in preventing insurers from imprisonment, also remains high on the liability for terrorism will be capped sharing safety related information. ICS/ISF agenda. The industry maintains at about US$500 million per ship, for that measures such as the European which the insurance broker Marsh Ltd ICS is also engaged in the discussions Directive on Criminal Sanctions for Ship has advised it will be able to arrange at IMO on a new liability convention Source Pollution, which came into full cover assuming that the P&I Clubs concerning wreck removal, and is force in March 2007, are in conflict cover general (non-war) risks. This leading shipowner representation at with the provisions of the IMO MARPOL will enable governments to issue the the IMO Diplomatic Conference in Convention, which distinguishes certificates of financial security that Nairobi in May 2007. Elsewhere, ICS is between unintentional and deliberate will be required for passenger ships opposing proposals put forward by the pollution. to trade once the Convention has Comité Maritime International (CMI) entered into force. The International for a separate regime to deal with Some industry interests, led by Group of P&I Clubs (IG) has indicated potential liabilities and compensation Intertanko, are challenging the legality that most but not all Clubs will issues associated with coastal states of the EU Directive at the European probably be able to cover the general granting refuge to ships. Court of Justice (ECJ), having secured (non-war) risks for ships carrying fewer the agreement of the English High than 3,600 passengers. Although not directly impacting on Court in 2006 that there is indeed a shipowners at this stage, ICS has also definite case for the ECJ to consider. However, there are broader issues been taking a close interest in the A ruling from the ECJ is expected later concerning P&I cover for passenger discussions in Europe about a new in 2007. The international industry is risks, and in February 2007 the Directive on classification societies, awaiting the outcome of this challenge International Group decided to limit which, like the existing Directive, to unacceptable regional rules with cover for passenger and crew claims includes provisions whereby Class much interest. to US$3 billion with a sub-limit on would be exposed to potentially passenger claims of US$2 billion. unlimited liabilities. There have Liability developments The decision was taken in response to previously been discussions, under concerns about the general exposure the banner of the CMI, about the In addition to lobbying against of IG members to the risk of a possibility of developing some regional proposals such as the EU catastrophic incident at ‘overspill’ level. kind of limited liability regime that draft Directive on the Civil Liability and might apply to Class internationally. Financial Securities of Shipowners, ICS Elsewhere, in March 2007, ICS However, discussions foundered when continues to represent the industry on participated in the latest round it proved impossible to agree upon an a range of legal issues at IMO. of detailed discussions at the appropriate level of liability. But with International Oil Pollution the liability of Class once again in the With regard to the higher passenger Compensation (IOPC) Fund to explore spotlight, not least following some ship compensation limits required the possible connection between high profile incidents, as well as the by the 2002 Protocol to the Athens compulsory liability insurance and draft EU Directive, it could be timely Convention, there have been widely sub-standard shipping. ICS previously to revive these industry discussions. reported difficulties concerning contributed to the OECD report which If this happens, and it is helpful, ICS the insurability of terrorism risks. is being used to assist the discussions. intends to be closely involved.

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This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net 24 UNCITRAL negotiations on States’ extensive requirements could radical amendments to UNCLOS. The cargo liability mean that the new instrument is so Commission apparently wishes to complicated that it will be difficult for strengthen its powers over non-EU 2007 sees the final stages of several governments to ratify. ships transiting the Exclusive Economic years’ negotiations, conducted twice Zones (EEZs) of EU Member States a year in Vienna and New York, under It remains to be seen whether the beyond territorial waters. In particular, the auspices of the United Nations new instrument to be adopted will the Commission wishes to be able Commission on International Trade serve as a replacement to the Hague/ to restrict the freedom of navigation Law (UNCITRAL) about a new global Visby and Hamburg Rules. But it of ships which it believes may be a liability regime for the carriage of would be a great pity if this ‘once in threat to safety and the environment. goods. ICS has been heavily engaged a generation’ opportunity to update However, this could mean interfering in the discussions throughout, the the liability regime for the carriage with ships that are fully compliant hope being that the new UNCITRAL of goods in line with modern multi- with international regulations, as instrument would address the liability modal transportation practices is was the case four years ago in the aspects of modern developments such lost, not least as this will only give immediate aftermath of the ‘Prestige’ as ‘door-to-door’ transport involving encouragement to the European disaster, when the French and Spanish other land based modes, electronic Commission’s ambitions to negotiate navies escorted foreign flag single hull commerce and ‘just in time’ delivery, a regional cargo liability regime. It tankers, that were fully compliant with to provide a uniform and up to date is therefore important that maritime MARPOL, to waters outside their EEZs. global regime that could replace the nations are properly represented Hague/Visby and Hamburg Rules. during the closing stages of these It remains a disappointment that few important discussions. governments were willing to challenge ICS participated at a critical meeting in this apparently blatant violation of New York in April 2007 at which the international law, which might have final shape of a new legal instrument Preserving the UN Law of the Sea been done by using mechanisms such emerged prior to final adoption as the International Tribunal for the by UNCITRAL, probably by early The concept of an international Law of the Sea. It must be hoped 2008. Together with BIMCO and the law of the sea can be traced back that governments will be more robust International Group of P&I Clubs, ICS to Grotius in the 17th century. It in their questioning of the European submitted detailed comments on the embraces the principle of freedom of Commission’s intentions. draft text, published in February 2007, navigation for all ships sailing beyond for consideration by governments. In a coastal state’s territorial waters, and The balance of rights in UNCLOS has a curious development, at the round maintenance of the principle was one long term implications that go far of discussions in Vienna in November of US President Woodrow Wilson’s beyond shipping, affecting sensitive 2006, a number of developing nations famous 10 points, which formed the issues such as exploration, mining, elected to vote en bloc on certain basis of the First World War peace and military rights beyond territorial technical issues. This was especially settlement. This principle eventually waters. There may be coastal states relevant given that several traditional became incorporated into the United in other parts of the world, adjacent maritime nations have seemingly Nations Convention on the Law of the to trade lanes of major strategic chosen not to be actively engaged in Sea (UNCLOS) which was adopted in importance, that would use any new the negotiations. its current form in 1982. powers to interfere with ships beyond their territorial waters as a pretext The outstanding issues at UNCITRAL ICS is concerned that the delicate for actions that have little to do with are esoteric, with much of the detailed balance between the rights of flag safety or environmental protection. drafting having been led by academics. states and coastal states may be under However, there is a danger that threat, not least by the European More immediately, ICS has remained efforts to make the new instrument Commission’s ambitions, reiterated in unhappy about the means used by compatible with these experts’ views its EU Maritime Policy Review ‘Green Australia and Papua New Guinea and compatible also with the United Paper’ published in June 2006, to seek to compel shipping using the

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This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net 450 Piracy: total world-wide incidents against shipping reported to IMO 400 Source: IMO 350 300 250 200 150 100 50 0

26 international Torres Strait to take While the shipping industry has largely from security experts that the ISPS pilots on a mandatory basis. ICS fully done what was required by ISPS in terms Code should soon be opened up for accepts - in line with recommendations of resources, training and undertaking revision. This seems rather premature, by IMO - that ships transiting the the necessary audits for certification, and ICS and ISF will be regarding such Strait should indeed take a pilot. But anecdotal evidence provided by ICS/ISF suggestions with caution. Constant ICS has been very concerned about members suggests that some ports changes to the procedures simply the mechanism used to introduce around the world may not yet be fully complicate seafarers’ and companies’ this measure, particularly with regard compliant to the same extent. ability to deliver the new high levels of to ships not calling at Australian security that politicians now require. ports, which appears to be in conflict While the day to day implementation with UNCLOS. This might appear to of ISPS has become more or less Within the United States, much be a legal technicality, but it could routine, ICS’s attention has been attention has been focused on the set an unwelcome precedent for focused on continuing discussions discussions within Congress about the the regulation of shipping in other at the World Customs Organization possible introduction of a requirement international waterways. (WCO) - in which ICS has actively for 100% of containers to be scanned participated - on the implementation on their way to the US for potential A case in point has been the unhelpful of its SAFE Framework for supply chain weapons of mass destruction. The suggestion to the effect that ships security, and discussions at IMO as to industry has pointed out that it would using the Malacca Straits should be whether or not the ISPS Code needs to be near impossible to inspect every charged individually for the cost of be amended to take account of these container physically without drastically services such as navigational aids. developments. interfering with the smooth flow of While there is a growing consensus world trade. For the moment at least, that some mechanism might be found The situation is complicated by the it seems that pragmatism has prevailed, whereby those nations that benefit fact that having persuaded WCO but it is likely that support for the from this major international waterway to adopt requirements compatible concept will return under the next US could provide financial assistance to with new US rules - such as that administration, as the Democrats and the littoral states, charging transiting requiring cargo information to be Republicans compete to demonstrate ships directly would appear to sent to customs in the importing their credentials on homeland security. contravene international law. country 24 hours before loading (also soon to be mirrored by a At a more practical level, ICS has been Security at sea new EU regime) - US Customs deeply involved in the discussions at is now introducing additional IMO about the introduction in 2009 of It is now almost 5 years since the maritime security procedures (the mandatory Long Range Identification adoption by IMO of the International so called ‘10 + 2’ regime) which and Tracking of Ships for security Ship and Port Facility Security (ISPS) are not covered by the new WCO purposes, using existing satellite Code, which was a politically driven framework. Moreover, US Customs communications equipment. With the reaction to the terrorist attacks on the now wishes these rules, which have concept championed by the United United States in 2001. It is impossible been mandated by Congress, to be States, ICS has been engaged in the to answer whether or not these radical adopted internationally. The need for system’s development from the outset, measures, which were implemented global procedures and the political with most industry concerns about in record time by the industry and impetus behind the additional US costs and equipment now having at considerable financial cost, have requirements probably means it been met. But there are still some succeeded in making the world a will be necessary for them to be complex billing issues to be resolved materially safer place. However, the accommodated internationally. and questions about the compatibility new regime has brought about some of older equipment to be answered benefits, for example with regard to Notwithstanding the fact that the by manufacturers. Of greater concern tackling pilferage and the incidence of ISPS Code was only fully implemented is the lack of engagement of some stowaways. by ships in 2004, there have been IMO Member States which threatens some rather enthusiastic suggestions the viability of an international

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system, opening the way for regional systems that may lack the safeguards embodied in the IMO proposals.

Possibly a more immediate concern for seafarers is the continuing incidence of piracy and violent armed attacks against merchant ships and their crews, usually by armed robbers but on occasion by kidnappers. Efforts by the littoral states in the Malacca Straits to enhance protection for shipping, including the use of air patrols, appear to be having significant effect, although attacks are still occurring in the remoter parts of Indonesia. In September 2006, ICS participated in a special IMO sponsored meeting in Kuala Lumpur involving key governments with an interest in the safety and security of the area. For much of living memory, piracy in the region has been a perennial problem confronting seafarers, all too frequently at the cost of their lives. At last, perhaps, some progress is being made. ICS will be participating in a follow up IMO meeting in Singapore in

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net 28 September 2007. collection of government negotiators healthy demand for American officers. at WTO who recognise the importance Nevertheless, it will be important for Meanwhile, the waters off Somalia of efficient shipping markets to the the US to avoid setting an unwelcome have also become an established health of the world economy. example that could be emulated by danger area, with armed gangs other major nations to hinder access attacking shipping with automatic Notwithstanding the open shipping by international shipping to their own weapons, including United Nations markets that prevail in much of the markets. aid cargoes, as far out as 300 nautical world, there are always potential miles from the coast. Despite dangers on the horizon. The United Elsewhere, ICS has been particularly some high profile interventions, it is States still displays an unwillingness concerned by the proposal by the sometimes hard to believe that the to become engaged in the WTO European Commission to establish a considerable ‘Coalition’ and NATO discussions on maritime services, ‘Common European Maritime Space’ naval forces in the vicinity are unable apparently fearing, despite assurances (CEMS) whereby trade between two to do more to prevent attacks that are to the contrary, that a WTO agreement EU countries, which currently counts occurring on the high seas. might somehow have implications for as an international voyage, could be cabotage and the US Jones Act. regarded as a ‘domestic’ voyage within The problem of piracy and armed the EU. The Commission suggests that attacks must remain on the agenda of The US Congress has also given a its only motivation for doing this is to the UN Security Council, and ICS/ISF rather unhelpful signal in the form of bring about improvements in customs will be seeking to ensure that the new a new legal requirement for the US and trade facilitation. However, by its UN Secretary General is fully aware of Maritime Administration (MARAD) to own admission, the concept of CEMS the seriousness of this issue. promote the US flag LNG ships and will have implications for cabotage crews, not least by linking their use to in the context of international trade Maintaining free trade the current round of new LNG terminal negotiations. While fears that approvals taking place around the US, the EU is intending to establish a ICS continues to pursue the which are politically controversial due ‘European Jones Act’ are probably an preservation and further development to concerns about safety and security. exaggeration, the industry is right to of free access to shipping markets In formal comments to MARAD, be concerned that at some point in around the globe, questioning regional filed in February 2007, ICS and ISF the future such a development might and national measures that may give have emphasised the importance of be used to reduce access by non- unfair preference to domestic interests. ensuring that any measures that may European ship operators to intra-EU be developed to promote US LNG markets. While most international shipping shipping and crews are compatible markets are already liberalised, ICS still with established free trade principles Any efforts by Europe to impose wishes to see current trade practices concerning international maritime requirements on so called ‘third codified as part of the next World commerce. MARAD is aware of the country’ ships at variance with Trade Organization (WTO) agreement diplomatic sensitivity surrounding international agreements (e.g. the on trade in services. Shipping is one of this issue, underlined by the helpful ILO Maritime Labour Convention) the few major industries not covered démarche from the Consultative will almost certainly be viewed by by existing multilateral agreements on Shipping Group (CSG) of overseas the industry as protectionism and trade. In spite of the impasse at the governments - with which ICS potentially a major step backwards. WTO talks in 2006 (principally due to maintains close relations. In practice, unrelated disputes over agriculture) however, there are actually rather The concept of a Common European the Doha Round of trade negotiations few US flag LNG ships for MARAD to Maritime Space is an important is expected to be revived, and talks promote in international/US trades, theme of the current EU Maritime on maritime services may soon regain and the high international wage rates Policy Review, and the Commission is momentum. ICS and its members commanded by LNG crews means expected to clarify its intentions when it have remained in contact with that LNG is one of the few remaining publishes firmer proposals in late 2007. the ‘Friends of Maritime’ group - a shipping sectors in which there is still a

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net Competition rules operators - with effect from October the special regime that has previously 29 2008. This terminates a tradition existed for shipping, being determined October 2006 witnessed a sea change of co-operation between shipping to remove the block exemption in the regulation of competition companies operating in what are from EU competition rules that has between shipping companies, with highly cyclical and volatile markets allowed liner conferences to exist. potentially radical implications for involving massive capital investment, Disappointingly, those shipping and the longer term structure of the and which in the view of most expert transport ministries in EU Member global liner industry, but also with observers has helped guarantee the States that understood the benefits implications for other trades too. quantity, quality and frequency of of Conferences seem to have been scheduled liner services for over overruled by those departments In conflict with practices that are 100 years. responsible for competition. legal elsewhere in the world, the EU Council of Ministers endorsed With the encouragement of the The precise details of the new European Commission proposals to European Shippers’ Council, the regime are still being discussed with outlaw participation in Conferences Competition Directorate of the the European Commission by the by liner operators to and from Europe European Commission has taken a European Liner Affairs Association - including those involving non-EU ship somewhat ideological approach to (ELAA), which represents container

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net 30 lines who trade to and from Europe. ports on north/south trades outside are in competition with hundreds It is clear that lines will no longer be the major trade routes might decrease. of others - it remains unknown permitted to set common Terminal whether the Commission will apply Handling Charges (THCs) or many Although most attention has been the same legal understanding until it other joint surcharges in European given to the impact on liner trades, the issues some Guidelines to non-liner trades. However, it is hoped that EU has also adopted important new trades, the content of which is still an understanding will be reached competition law enforcement powers being discussed with the European shortly about the scope of information over non-liner shipping trading to and Community Shipowners’ Associations. exchange on market developments that from Europe. This has generated a will continue to be allowed after 2008. degree of uncertainty amongst tanker There has possibly been a degree of and dry bulk operators who jointly scaremongering by those promoting As for the overall effect of prohibiting market their operations in ‘shipping legal and financial restructuring Conferences, this remains to be seen. pools’. Although bulk shipping in services; the law itself has not However, a possible result could be tramp trades operates in conditions changed, just the Commission’s right greater market concentration, and the of near perfect competition - most to enforce it. But in view of the huge number of smaller companies serving tramp ships on the market for charter penalties associated with even minor

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net However, this can be difficult in many 31 countries. Notwithstanding the significant contribution that shipping makes to national economies, not least to their balance of payments, the national shipping industries often lack any political constituency because they ultimately deliver few votes.

Some national shipowners’ Promoting the industry’s profile associations have sought to overcome this challenge by developing ‘maritime ICS has produced a short DVD film - clusters’ of related industries, such as technical violations of EU competition ‘International Shipping: Life Blood equipment manufacturers, brokers, law, and the theoretical right of of World Trade’ - to explain the classification societies and even the the Commission to apply penalties importance of shipping to the health military navy. This approach is also retrospectively, it will be important to of the world economy and to convey reflected in initiatives such as the ensure that these complex issues are the message that shipping is safe, new Maritime Industry Foundation, clarified, and that the EU Competition clean and comprehensively regulated. of which ICS and ISF are supporters, authorities display pragmatism and The film also stresses the vital need for which seeks to provide information common sense. global regulation for a global industry. about the entire maritime sector.

Elsewhere in the world, ICS has The film has been well received, and However, while being part of a broader continued to support the preservation some 15,000 copies have been constituency may bring dividends, it of liner Conferences and has been distributed throughout the industry is important for ship operators to active in making representations to via national shipowners’ associations, maintain a distinct profile in their the authorities in Australia, Japan on a DVD containing versions dubbed own right, both in terms of general and Singapore, which have also into French, Spanish, Arabic, Chinese awareness amongst policy makers and been reviewing their own maritime and Japanese. An internet version to maintain the necessary influence competition regimes. In China, has also been produced (see www. on regulatory matters. The latter is the Ministry of Communications marisec.org/film). In addition to being important, since the international has recently issued requirements used with captive audiences of policy nature of shipping means that it is which, whilst confirming the makers, the film is being used as a tool normally subject to entirely separate continuing legality of Conferences, at exhibitions and in careers talks to legal regimes from those developed for impose additional supervision and young people. shore based industry. filing requirements. In the United States, meanwhile, the Antitrust Much attention has rightly been ICS and ISF therefore continue to Modernisation Commission (AMC) afforded to the question of help national shipowner associations has been aggressively reviewing US maintaining a positive image for the by developing generic tools that maritime rules. Despite forceful shipping industry with the public at complement national profile-raising lobbying by the World Shipping large and, more particularly, those efforts. In co-operation with BIMCO, Council, which represents container policy makers and politicians who Intercargo and Intertanko, the lines trading to the US, it is possible have an impact upon shipping without shippingfacts.com website has been that this may lead to calls for the having specialist knowledge of the redesigned, while greater emphasis Federal Maritime Commission to issues. To a large extent, raising the is being put on the co-ordination of consider changes to the US Ocean profile of shipping is the responsibility messages about the shipping industry, Shipping Reform Act. of ICS/ISF national shipowners’ not least through press releases. This associations, who have the task of is especially important at a time when promoting their national industries. shipping is increasingly coming under

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net 32 the media spotlight with regard to Unfortunately, because of the Panama Canal toll increases issues such as carbon emissions. relevance to customs procedures, many of the government ICS has remained in dialogue with ICS/ISF have also launched a new representatives to the IMO FAL the Panama Canal Authority about electronic newsletter - ‘Mariscene Committee are customs and the quantum and timing of proposed Monthly’ - to provide a concise snap- immigration officials who do not toll increases, associated with the shot of some of the more complex necessarily view trade facilitation as planned expansion of the Panama policy and technical issues confronting their immediate priority. A recent Canal. While this major project international ship operators with example was the proposal from the now seems certain to go ahead, the which ICS and ISF are involved. Netherlands and other European estimated US$5.25 billion costs will immigration authorities to amend be funded predominantly by industry ICS and ISF have also supported the the IMO Facilitation Convention so through increased tolls, and ICS has IMO Secretary General’s efforts to that the details of crew visas would stressed the need for transparency revitalise World Maritime Day (held on be sent ahead of a ship’s arrival in regarding their scale, adequate phase- the last Thursday in September). In port. This would have undermined in arrangements, and the importance 2006, linking with the chosen theme the spirit of the ILO Convention on of taking into account the needs of of technical co-operation, ICS/ISF and Seafarers’ Identification Documents different ship types and trades. the other Round Table organisations (ILO 185) which, to facilitate shore produced a special brochure about leave and crew transits, implies that Following the Panamanian referendum shipping and contributed to an industry seafarers holding new ILO seafarers’ in October 2006, which approved the World Maritime Day event in London. ID will not normally be required to Canal’s expansion to accommodate The IMO theme in 2007 is shipping and obtain visas in advance of arrival. (The larger ships, ICS had an informal the environment, and ICS is committed ILO Convention was negotiated with meeting with the Administrator of to capitalising on this opportunity. governments by ISF and ITF in 2003 the Panama Canal at which the to address post 9/11 concerns about views of ICS were sought prior to Facilitation and documentary security.) However, in March 2007, the publication, in February 2007, procedures with the support of unions and ILO, of the formal proposals for future ISF/ICS were able to persuade the toll increases. ICS then spoke at a ICS is a strong supporter of the IMO Facilitation Committee not to pursue Public Hearing in Panama in March, Facilitation (FAL) Committee whose most of these unhelpful proposals. and submitted formal comments to terms of reference are to improve the Panama Canal Authority (ACP) the efficiency of maritime commerce ICS also played an important role in to express the shipping industry’s through the simplification and the development of the transport concerns about the huge scale and unification of trade and documentary articles of the International Chamber timing of the increases. procedures. of Commerce (ICC) Banking Commission’s revised procedures ICS members have cautiously accepted In the Autumn of 2006, ICS chaired for documentary credits (UCP 600), the concept of different prices an IMO correspondence group which attending the Banking Commission’s for different ship types. However, looked at means of developing a meeting in Vienna in 2006. The repeated requests that increases in system of electronic ships’ certificates, original drafts contained a number tolls should be equitable, transparent perhaps held on flag state databases, of significant issues which were and spaced over a sufficient amount in order to simplify port state inconsistent with actual practice in the of time appear to have been largely control inspections. The group’s shipping industry and which would ignored. recommendations were considered have hindered implementation of the by the Committee in March 2007 and new procedures. However, the ICC The official Canal Expansion Proposals further work is continuing although, Banking Commission was eventually referred to projected increases in tolls given the hundreds of thousands of persuaded to accommodate most of of 3.5% per annum over a 20 year documents involved, it is acknowledged the ICS suggestions. period, but the proposed toll rises that this project is ambitious. equate to 8 to 10% per annum, with

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net larger increases for container and provided, and that they should not be Internal affairs 33 some passenger ships. In any industry, expected to provide up-front financing changes of this magnitude over such for a major infrastructure project In May 2006, Spyros M Polemis a short period of time would be from which they may not individually (Greece) was elected Chairman regarded as being unacceptably large. derive any benefit. ICS has therefore and President of ICS and ISF by suggested that the ACP explores the membership of 40 national Canal users feel that increases in further the extent to which external shipowners’ associations. He succeeds Canal dues should be matched by a financing might be used to spread the Rolf Westfal-Larsen (Norway), who tangible improvement in the service costs over a longer period of time. provided calm and thoughtful leadership to ICS and ISF during the previous 8 years, and whose dedication to the principles espoused by the two sister organisations was widely respected and appreciated.

Following the retirement of Chris Horrocks, Tony Mason became the new Secretary General of ICS and ISF in October 2006. Tony was formerly a senior Tony Mason Director at P&O Nedlloyd and, as well as having 30 years’ experience of shipping, he has specific experience of international policy issues as a board member of the US based World Shipping Council and the European Liner Affairs Association. One of his first tasks has been to oversee a review of the ICS/ISF strategy, the intention being to ensure that the organisations maintain the influence on shipping matters required by their member national associations, and can maintain control of their destiny as maritime regulatory fora evolve.

Chris Horrocks retired after a career at ICS/ISF spanning 37 years: 28 years as ICS Secretary General and ISF Secretary General since 1990 when the organisations combined under a common secretariat. The official transfer of the helm to Tony Mason

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net 34 took place at a special reception at The 2006 Annual General Meetings Publications Trinity House, London, on Chris’s final of ICS and ISF were hosted in May by day on 29 September. For many years, the Chamber of Shipping of America, The development and updating Chris has been acknowledged as the in Washington DC. In addition to of best practice for the shipping unofficial ambassador of the global electing Spyros Polemis as Chairman/ industry, disseminated globally under shipping industry. He has been an President, Charles Kurz II (United the banner of Marisec Publications, indefatigable advocate of the interests States) and Michael Everard (United remains an essential part of ICS and ISF of shipping, an industry for which he Kingdom) were elected as ICS Vice activity. The current list comprises over holds a deep affection and fascination. Chairmen for 2006/2007, with Luis 30 publications and products. Ocejo (Mexico) and Patrick Decavèle There have also been other staff (France) elected as ISF Vice Presidents. A major achievement, in conjunction changes: Peter Hinchliffe has become with the Oil Companies International Marine Director; Kiran Khosla has The 2007 Annual General Meetings Marine Forum (OCIMF) and the joined as General Manager (Legal); will be hosted by the Hong Kong International Association of Ports and Rebecca Chetwood as Administrative Shipowners’ Association in June, in the Harbors (IAPH), was the publication Officer; and Janet Ebert as PA to the year of its 50th anniversary. in Summer 2006 of a fully revised 4th ICS/ISF Secretary General. edition of the International Safety The membership of ICS and ISF remains Guide for Oil Tankers and Terminals, The secretariat continues to be stable, the only changes being that the or ISGOTT as it is widely known employed by Maritime International European Dredging Association (EuDA) throughout the tanker industry. This Secretariat Services (Marisec) Limited, has become an Associate Member was the culmination of 4 years’ work, which is jointly owned by ICS and ISF. of ICS and ISF, while the Cruise Lines led by a special working group that Marisec also provides secretariat services International Association (CLIA) has drew on the advice and expertise of to other maritime bodies including the taken over the associate membership ICS, OCIMF and IAPH members. International Support Vessel Owners’ formerly held by the Washington Association (ISOA) and the International based ICCL before the merger of the The new edition takes full account Maritime Employers’ Committee (IMEC). organisations in January 2007. of experience gained following the widespread introduction of double hull tankers, as well as the mandatory development of Safety Management Systems required by the IMO ISM Code. Encouragingly, some 15,000 copies have already been sold.

Another milestone has been the publication by ISF during 2006 of comprehensive guidance to ship operators on the new ILO Maritime Labour Convention, just weeks after the new Convention was adopted by ILO.

Major projects for 2007 include publication of a revised ICS Bridge Procedures Guide and the updating of existing ICS guidance on helicopter/ ship operations and ballast water management. The successful ISF/ Marlins (computer based) English

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net Organisational Structure

Members language test is also being improved 35 and updated. English is the lingua Council franca of shipping, and the ISF/Marlins products have become established tools used by tens of thousands of seafarers. Marisec Publications Labour Affairs Manning and Training also continues to distribute accident Committee Committee prevention products produced by Chairman: Chairman: the UK P&I Club, as well as the Mr Arthur Bowring Captain Pieter Sprangers ISF Watchkeeper programme (in Hong Kong Sweden conjunction with IT Energy), which is also being reviewed to take account of the work hour rules in the new ILO ICS Executive Committee ISF Council Convention. Mr Spyros M Polemis (Chairman) Mr Spyros M Polemis (President) The industry best practice embodied Mr David Sterrett Australia Mr Lachlan Payne Australia in ICS and ISF publications is an Mr Andreas Droussiotis Cyprus Mr Hans-Georg Wurmböck Austria important complement to regulatory Mr Lars Vang Christensen Denmark Mr Nicolas Saverys Belgium requirements. The industry has Mr Patrick Decavèle France Mr P S de Mello Cotta Brazil therefore been strongly resisting Mr Anastasios Capt Gueno Guernov Bulgaria a proposal led by Spain at IMO to Papagiannopoulos Greece Mr Don Morrison Canada make much of the guidance within Mr Robert Ho Hong Kong Mr E Strelow Castillo Chile the ICS/OCIMF Ship to Ship Transfer Mr Minoru Sato Japan Mr Cheng Zhongbiao China Guide mandatory, by incorporating Mr Samuel Cooperman Liberia Mr Andreas Droussiotis Cyprus large sections of it into the MARPOL Mr Silverio Di Costanzo Mexico Mr Leif Kristian Nielsen Denmark Convention. The provision of Mr Ed Nobel Netherlands Mr Risto Näsi Finland information relevant to the conduct Mr Terje Andersen Norway Mr Patrick Decavèle France of safe maritime operations does Mr Håkan Larsson Sweden Dr Hans-Heinrich Nöll Germany not always lend itself to prescriptive Mr Michael Everard United Kingdom Mr Anastasios rules. While ICS is very happy for Mr Charles Kurz II United States Papagiannopoulos Greece IMO regulations to refer to ICS Mr Arthur Bowring Hong Kong publications on best practice, it is Mr Sabyasachi Hajara India vital that the industry remains able to Capt Eddie Keane Ireland modify its own guidance, consistent Mr Robert Goodall Isle of Man with its commitment to continuous Dr Giovanni Delle Piane Italy improvement - a principle embodied Mr Yasuhide Sakinaga Japan in the ISM Code. Mr C J Park Korea Capt Saad Al-Matouq Kuwait Mr Joe Ludwiczak Liberia Mr Luis Ocejo Mexico Mr Ed Nobel Netherlands Mr Paul Nicholas New Zealand Mr Terje Andersen Norway Mr Syed Mahmood Ali Pakistan Mr Carlos Salinas Philippines Mr Manuel Carlier Spain Mr Håkan Larsson Sweden Mr Mark Brownrigg United Kingdom Mr Joseph Cox United States

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net ICS Organisational Structure

Shipping Policy Committee Insurance Chairman: Maritime Law Mr John C Lyras Committee Greece Committee Chairman: Chairman: Mr Matheos Los Dr Bernd Kröger Greece Germany 36

Full Members Associate Members

Executive Construction Committee & Equipment Radio & Nautical Sub-Committee Sub-Committee Chairman: Chairman: Captain Marcus Müller Captain Paul Jones Germany

Environment ­Canals Sub-Committee Sub-Committee Marine Chairman: Chairman: Committee Mr Vagn Lehd Møller Ms Teresa Hatch Denmark Australia Chairman: Mr Ian Hunter United Kingdom

Chemical Carriers Oil Tanker Panel Panel Chairman: Chairman: Mr Joseph Ludwiczak Captain Alex Staring Liberia Belgium

Passenger Bulk Carrier Ship Panel Panel Chairman: Chairman: Mr Tom Strang Mr Dimitris Fafalios United Kingdom Dangerous Goods Greece Panel Chairman: Mr Rob Van Uffelen Netherlands

Container Gas Carriers Panel Panel Chairman: Chairman: Mr Mike Downes To be confirmed Netherlands

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net Members of the International Chamber of Shipping and the International Shipping Federation

AUSTRALIA FINLAND continued KOREA•• SWEDEN Australian Shipowners Association Ålands Redarförening Korea Shipowners’ Association Sveriges Redareförening• Level 1, 4 Princes Street Hamngatan 8 10th Floor, Sejong Building Box 330, SE-401 25 Gothenburg Port Melbourne, Victoria 3207 FIN-22100, Mariehamn 100 Dangju-Dong Tel: + 46 31 629 525 Tel: + 61 3 9646 0755 Tel: + 358 1 81 3430 Jongro-gu, Seoul Fax: + 46 31 15 2313 Fax: + 61 3 9646 2256 Fax: + 358 1 82 2520 Tel: + 82 2 739 1551 Email: [email protected] Email: [email protected] Email: [email protected] Fax: + 82 2 739 1562 Email: [email protected] Swedish Shipowners’ Employer AUSTRIA FRANCE Association•• Fachverband der Schiffahrtsunternehmen Armateurs de France KUWAIT PO Box 404 c/o Österreichischer Lloyd Ship 47 rue de Monceau Kuwait Oil Tanker Co SE-40126 Gothenburg Management Ges. m.b.H. 75008 Paris PO Box 810, Safat 13009 Tel: + 46 31 629539 Kolingasse 12, 1090 Vienna Tel: + 33 1 53 89 52 52 Tel: + 965 245 5455 Fax: + 46 31 629497 Tel: + 43 1 317 4283 Fax: + 33 1 53 89 52 53 Fax: + 965 240 1584 Email: Fax: + 43 1 317 4154 Email: [email protected] Email: [email protected] [email protected] Email: [email protected] GERMANY LIBERIA SWITZERLAND• BELGIUM Verband Deutscher Reeder Liberian Shipowners’ Council Swiss Shipowners’ Association Royal Belgian Shipowners’ Association Esplanade 6, Postfach 305580 99 Park Ave, Suite 1700 Avenue des Baumettes 7 Brouwersvliet 33, Bus 9 20317 Hamburg New York, NY 10016-1601 Case postale 48 B-2000 Antwerp Tel: + 49 40 35 0970 Tel: + 1 212 973 3896 CH-1020 Renens 1 Tel: + 32 3 232 7232 Fax: + 49 40 35 097 211 Fax: + 1 212 994 6763 Tel: + 41 21 6372201 Fax: + 32 3 231 3997 Email: [email protected] Email: [email protected] Fax: + 41 21 6372202 Email: [email protected] Email: [email protected] GREECE LUXEMBOURG• BRAZIL•• Union of Greek Shipowners Luxembourg Shipowners’ Association TURKEY• Syndarma 85 Akti Miaouli, 185 38 Piraeus 20 rue de Hollerich Turkish Chamber of Shipping Rua Visconde de Inhaúma Tel: + 30 210 429 1159 L-1022 Luxembourg Meclisi Mebusan Caddesi, No. 22 134-10 Andar, Rio de Janeiro Fax: + 30 210 429 1166 Tel: + 352 48 28 50 1 80154 Salipazari, Istanbul CEP 20.094 Email: [email protected] Fax: + 352 48 28 71 Tel: + 90 212 252 0130 Tel: + 55 21 2223 1202 Fax: + 90 212 293 7935 Fax: + 55 21 2233 0230 Hellenic Chamber of Shipping• MEXICO Email: [email protected] Email: [email protected] 65 Akti Miaouli, 185 36 Piraeus Grupo TMM S.A. Tel: + 30 210 429 3827 Ave de la Cúspide No. 4755 UNITED KINGDOM BULGARIA Fax: + 30 210 429 3831 CP 14010 The Chamber of Shipping Bulgarian Shipowners’ Association Email: [email protected] Col Parques del Pedregal Carthusian Court 1-967 St Nikola Area Mexico DF 12 Carthusian Street 9010 Varna HONG KONG Tel: + 52 55 5629 8866 London EC1M 6EZ Tel/Fax: + 359 52 387 546 Hong Kong Shipowners’ Association Fax: + 52 55 5629 8899 Tel: + 44 20 7417 2800 Email: [email protected] 12th Floor, Queen’s Centre Email: [email protected] Fax: + 44 20 7726 2080 58 Queen’s Road East, Wanchai Email: [email protected] CANADA Tel: + 852 2 520 0206 NETHERLANDS Canadian Shipowners’ Association Fax: + 852 2 529 8246 Royal Association of Netherlands Shipowners UNITED STATES OF AMERICA Suite 705, 350 Sparks Street Email: [email protected] Postbus 2442, 3000 CK, Rotterdam Chamber of Shipping of America Ottawa, Ontario, K1R 7S8 Tel: + 31 10 414 60 01 1730 M St. NW, Suite 407 Tel: + 1 613 232 3539 ICELAND• Fax: + 31 10 233 00 81 Washington DC 20036-4517 Fax: + 1 613 232 6211 Icelandic Shipowners’ Association Email: [email protected] Tel: + 1 202 775 4399 Email: [email protected] c/o SVTH – Federation for Trade & Services Fax: + 1 202 659 3795 Borgartúni 35, 105 Reykjavik NEW ZEALAND Email: [email protected] CHILE Tel: + 354 511 3000 New Zealand Shipping Federation Asociación Nacional de Armadores Fax: + 354 511 3001 PO Box 10739 Associate Members Blanco 869, 3er Piso, Valparaiso Email: [email protected] Wellington 6143 Tel: + 56 32 212057 Tel: + 64 4 499 6222 Abu Dhabi National Tanker Company Fax: + 56 32 212017 INDIA•• Fax: + 64 4 499 6225 (Adnatco)• Email: [email protected] Indian National Shipowners’ Association Email: [email protected] Shaikh Khalifa Energy Complex Maker Tower, 2nd Floor Takreer Tower, 11/12 Floor CHINA•• Cuffe Parade NORWAY Khalifa Street, Abu Dhabi UAE China Ocean Shipping (Group) Co Mumbai 400 005 Norges Rederiforbund Tel: + 97 12 6028400 Floor 12, Ocean Plaza Tel: + 91 22 22182103 Rådhusgaten 25 Fax: + 97 12 6028323 158 Fuxingmennei Street, Xicheng District Fax: + 91 22 22182104 PO Box 1452 Vika Email: [email protected] Beijing 100031 Email: [email protected] N-0116 Oslo Tel: + 86 010 6649 3388 Tel: + 47 22 40 15 00 BW Shipping Managers PTE• Fax: + 86 010 6649 2266 IRELAND Fax: + 47 22 40 15 15 30 Hill Street #0-300 Irish Chamber of Shipping Email: [email protected] Singapore 179360 CROATIA• c/o Brian Kerr Shipping Tel: + 44 20 7566 5332 Mare Nostrum Port Centre, Alexandra Road PAKISTAN Fax: + 44 20 7490 4533 Croatian Shipowners’ Association Dublin 1 Pakistan National Shipping Corporation Email: [email protected] Avenija v Holjevca 20 Tel: + 353 1 855 9011 PNSC Building 10020 Zagreb Fax: + 353 1 855 9022 Moulvi Tamizuddin Khan Road Chamber of Shipping of Tel: + 385 1 652 5370 Email: [email protected] Karachi 74000 British Columbia• Fax: + 385 1 652 5371 Tel: + 92 21 920 3980 100-1111 West Hastings Street Email: [email protected] ISLE OF MAN•• Fax: + 92 21 920 3974 Vancouver BC, V6E 2J3 Isle of Man Shipping Association Email: [email protected] Canada CYPRUS Chamber of Commerce Tel: + 1 604 681 2351 Cyprus Shipping Council 17 Drinkwater Street PHILIPPINES•• Fax: + 1 604 681 4364 City Chambers, 1st Floor Douglas IM1 1PP Filipino Shipowners’ Association Email: [email protected] PO Box 56607 Tel: + 44 1624 674941 Room 503, 5th Floor 3309 Limassol Fax: + 44 1624 663367 Victoria Building Cruise Lines International Association Tel: + 357 25 360 717 Email: 429 United Nations Avenue (CLIA) Fax: + 357 25 358 642 [email protected] Ermita, Manila 2111 Wilson Boulevard, 8th floor Email: [email protected] Tel: + 63 2 523 7269 Arlington, VA 22201, USA ITALY Fax: + 63 2 523 3164 Tel: + 1 703 522 8463 DENMARK Confederazione Italiana Armatori Email: [email protected] Fax: + 1 703 522 3811 Danmarks Rederiforening (CONFITARMA) Email: [email protected] 33 Amaliegade Piazza S.S. Apostoli 66 SINGAPORE• DK-1256 Copenhagen K 00187 Rome Singapore Shipping Association European Dredging Association (EuDA) Tel: + 45 33 11 4088 Tel: + 39 06 674 811 59 Tras Street Avenue Grandchamp 148 Fax: + 45 33 11 6210 Fax: + 39 06 697 83730 Singapore 078998 1150 Brussels, Belgium Email: [email protected] Email: [email protected] Tel: + 65 6222 5238 Tel: + 32 2 646 8183 Fax: + 65 6222 5527 Fax: + 32 2 646 6063 FINLAND JAPAN Email: [email protected] Email: [email protected] Finnish Shipowners’ Association Japanese Shipowners’ Association Satamakatu 4A Kaiun Bldg, 6-4 Hirakawa-cho SPAIN Shipping Australia Ltd• FIN-00160 Helsinki 2-chome, Chiyoda-ku Asociación de Navieros Españoles PO Box Q388 QVB PO Tel: + 358 9 622 6730 Tokyo 102-8603 Dr. Fleming 11-1ºD, 28036 Madrid Sydney NSW 1230 Fax: + 358 9 669 251 Tel: + 81 3 3264 7171 Tel: + 34 91 458 0040 Tel: + 61 2 9266 9916 Email: [email protected] Fax: + 81 3 3262 4760 Fax: + 34 91 458 6087 / 457 9780 Fax: + 61 2 9268 0230 Email: [email protected] Email: [email protected] Email: [email protected]

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This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net International Chamber of Shipping International Shipping Federation 12 Carthusian Street London EC1M 6EZ Tel +44 20 7417 8844 Fax +44 20 7417 8877 [email protected] [email protected] www.marisec.org www.shippingfacts.com www.careers-at-sea.org

This document, and more, is available for download at Martin's Marine Engineeirng Page - www.dieselduck.net