Unsettled Times Annual Report 2 Contents

Unsettled times annual report 2 Contents

Foreword 5

Key figures Shipping Industry 6 Entrepreneurship and Economy 9 Employment and Manning 12 Recruitment and Education 17 Interview with Presidents 20 Climate and Environment 22 Safety and Security 29

annual report 2017 | 3 4 Foreword

Welcome to the Royal Association of Netherlands Shipowners 2017 Annual Report. Just as the sea often rough and stormy, it was once again an unsettled year for the Dutch shipping industry.

It is not only businesses that have experienced a After almost ten years of calling for sufficient turbulent year; a lot has happened within the KVNR standards of security against piracy for Dutch ships too. We celebrated the 25th anniversary of our and their crews sailing through the Gulf of Aden, an founding; marking the occasion in style on board the crucial moment occurred in the political arena. In SS Rotterdam in June. The then KVNR president March 2018 the Dutch House of Representatives Tineke Netelenbos presented the anniversary book adopted a bill for armed private security detachments. ‘Forward full throttle’ to Her Royal Highness Princess Now the matter is in the hands of the Senate mem- Margriet, whose presence was particularly apprecia- bers, who will hopefully also support the proposal so ted by the Dutch shipowners present. that Dutch seagoing vessels and their crews will receive adequate protection to navigate safely in all Tineke Netelenbos is described here as ‘the then’ circumstances. KVNR president because changes to the KVNR management structure have led to a new way of filling What else does 2018 hold for the shipping industry? the role of president. Upon leaving her position as As far as we are concerned, it will be a year of econo- president, she was appointed honorary member of mic recovery, accident prevention and sustainability. the KVNR in recognition of her efforts for the Dutch For example, regarding the latter, we are conducting shipping sector since 2008. intensive consultations with the relevant parties about the reduction of CO2 emissions from shipping. Board members Karin Orsel (from MF Shipping Group) and Sibrand Hassing (from Holland America However, this is just a small part of our work. This is Line) took over the president’s gavel as co-presidents. why we invite you to turn the page and continue Also at the management level, there has been a reading about entrepreneurship, safety, the environ- significant change. Martin Dorsman left the KVNR to ment and the employment market in the Dutch become the secretary general of the European shipping industry. umbrella organization ECSA in Brussels. By now, there is a new managing director and we are setting We wish you a prosperous 2018. course for the coming years. 2018 will be a year of Annet Koster and Guido Hollaar closure as well as new initiatives in many areas. KVNR Management Team

annual report 2017 | 5 THE DUTCH SHIPPING INDUSTRY

NUMBER OF SHIPS ADDED VALUE

Direct Indirect 1,4 € 1 billion billion 2.012 1.059 € 2,4 billion

Dutch Management Dutch flag Total

6 NUMBERS 2016

EMPLOYMENT FIGURES

7.506 4.895 Dutch nationals Dutch seafarers 29.705 On shore and on board 22.199 2.611 Foreign seafarers On shore personnel

annual report 2017 | 7 KVNR Autumn members meeting

Policy advisor for legal and tax affairs Lodewijk Wisse talks about the zero VAT rate for deliveries of goods and services to seagoing vessels. After lobbying by the KVNR, this parliamentary bill has been amended and will enter force in one year’s time.

8 Entrepreneurship and Economy

Despite improvement in the overall economic climate, the cruise industry is in excellent health. While the bulk 2017 was not a particularly strong year for Dutch sector has not had a bad year, a comprehensive and shipping. However, there are some positive signs to stable recovery has yet to be seen. The tanker shipping be seen. For example, although still low, freight rates industry is still suffering from overcapacity, and showed slight improvement. And although there are businesses are still anticipating the recovery of oil and relatively few new ships, 2018 could still become a year gas. Although some of these signs are indeed optimis- of recovery. For example, one maritime branch that is tic, the recovery and stabilisation of most sub-sectors doing well is the cruise industry. With positive growth is not enough to allow talk of a prosperous Dutch rates, global expansion and strong demand for 2018, shipping industry.

annual report 2017 | 9 Postponing the adjustment of zero VAT rate Netherlands does not introduce stricter regulations On the subject of tax, the change to the zero VAT rate than its neighbouring countries. for seagoing vessels is the most striking one. In current VAT legislation, it is permitted that all delive- Maritime Strategy Work Programme ries of goods and services to seagoing vessels are The Maritime Strategy Work Programme was signed charged 0% VAT. The only criterion is that these in February 2018. This programme will strengthen the services are to a ‘sea-going vessel’. However, in a cooperation between the maritime sector and the procedure against France, the European Court of Dutch government and combine the current maritime Justice (ECJ) has ruled that this is too broad an policy intentions of the Minister of Infrastructure and interpretation of the European VAT Directive. As a Water Management. The most relevant aspects for the consequence, the ECJ has ruled that a seagoing vessel shipping industry are the shipping register and the must actually operate on the high seas. The European (economics of) sustainability issues. This includes Commission has since informed the Netherlands inter alia CO2 reduction in international shipping, the government that this additional detail is absent in sustainability fund for shipping, and new financing Dutch VAT legislation and must therefore also be models for sustainability targets. The KVNR is included. The Cabinet subsequently made its initial committed to increasing sustainability, with a strong proposals to address this issue, and due to substan- shipping sector as the starting point. Please note that tial implementation problems, the KVNR has reported this Annual Report has a separate section devoted to this to the House of Representatives. At the end of environmental issues. 2017, the House of Representatives adopted a proposed amendment that allows for a postpone- The future of the Dutch shipping register ment of one year. In the coming year, the KVNR will It is imperative that the Dutch shipping register be work with the Ministry of Finance and the Tax Authori- modernised. As well as the registration process being ties to identify and solve any implementation pro- a well-oiled machine, there are numerous other ways blems and administrative burdens. The aim throug- to ensure that the Dutch flag is the natural choice for hout this process will be to ensure that the shipowners.

To an honorary member

Long-serving member of the KVNR Secretariat Marijke Harberts (with 44 years in service!) addresses resigning director Martin Dorsman, his family, and members.

For his contribution and service to the Dutch shipping industry, Martin was appointed honorary member of the KVNR by Co-President Sibrand Hassing on behalf of the members.

10 • High standards of service provision, Spotlight 2018: realization of a Brexit deal? • Cost competitiveness, Following the Brexit referendum in the UK on 23 June • Rapid inclusion of international legislation, 2016, the British government informed the European • No additional national legislation affecting Commission on 29 March 2017 its desire to leave the international legislation. EU. Two years after that date, on 29 March 2019, Brexit will be a reality. The EU and the UK are cur- This is not only important for Dutch shipowners, but rently negotiating the so-called divorce terms and is also beneficial to the Dutch maritime business their future trade relationship. Because the UK is the climate and strengthens the sector as a whole. To this Netherlands’ third largest export destination, the end, the Minister of Infrastructure and Water Manage- outcome of the Brexit deal is of great importance to ment has proposed to outsource the promotion of the Dutch shipping industry. Therefore, in 2017, the the Dutch register and the acquisition of new tonnage KVNR began identifying the problems and opportuni- to a commercial party. The KVNR has lobbied strongly ties for ferry, short sea and offshore services in a for a smoother and more appealing register, and European context. This will continue in 2018 with the continues to do so. After all, the success of the Dutch goal that Anglo-Dutch trade continues as much as economy is determined in part by the success of possible while keeping new customs formalities or Dutch shipowners. (phyto) sanitary and veterinary checks to a minimum.

annual report 2017 | 11 Employment and Crews

Development in the labour market its contribution to solving various bottlenecks in the Despite the on-going economic situation, the number Seafarers Act. This includes the issuing of a Certificate of Dutch seafarers has increased slightly. Moreover, of Receipt or Application (CRA) resulting from an levels of unemployment among Dutch seafarers has application for recognition of a foreign tanker certifi- stayed low. Although, in general, the labour market cate. It is also important that the relevant legislation can be described as relaxed, this is far less the case allows more leeway in issuing experimental sailing for the higher-ranked engineers. A positive develop- licenses, which will facilitate innovative developments ment is that almost all of the captains and officers in the manning matters. who lost their jobs as a result of the bankruptcies of Flinter and Abis have found work with other Dutch Various aspects of crew legislation were modified in shipping companies. 2017. This concerned the removal of certain bottlenecks in addition to the implementation of the National and international collective labour Maritime Labour Convention 2014 amendments. The agreements new requirements of the International Convention on Extension of the collective bargaining agreements Standards of Training, Certification and Watchkeeping (CBA) were negotiated in 2017. The most important for Seafarers (STCW) were also implemented. This CBA for Dutch seafarers, namely for the merchant covers, for example, the renewal of certificates of shipping sector, was been extended by one year with competency and the accommodation of ships utilized an rise of 1.5%. Staying in line with international for non-continuous operations. Finally, after years of developments, it has been agreed with Nautilus preparatory work, an amendment to the Working International and local trade unions to keep pay levels Hours Act came into effect. This creates more flexibility the same for non-EU seafarers. This is in addition to a for alternative watch schedules on board, especially Christmas bonus, also for one-year contracts (2018). concerning ships with a two-watch system. For both Dutch and foreign seafarers, withdrawals of cash while on board is discouraged because of the On the international level, the KVNR contributed to the high costs of withdrawal and the inherent risks IMO communication STCW.7/Circ.24/Rev.1, which was associated with having cash. The results of these CBA established via the International Chamber of Shipping negotiations reflect the poor economic position in (ICS). The goal of this was to explain certain aspects of which the international shipping sector still stands. the STCW Convention, and to contribute to the removal of misinterpretations by port state authorities Crew legislation in order to reduce unjust failures or detentions. The KVNR is committed to effective synchronization between the Directorate-General for Civil Aviation and Employment permits of non-EU crews on Dutch- Maritime Affairs (DGLM) and the Human Environ- flagged vessels ment and Transport Inspectorate (ILT) regarding the In the eyes of both the KVNR and the trade union implementation and maintenance of complex and Nautilus International, there is a need to modernise the detailed crew legislation. To this end, the KVNR hopes existing three license regulations for the employment of that in 2018 (just as in 2017), it will be able to continue non-EU seafarers on Dutch-flagged seagoing ships.

12 Autumn members meeting

KVNR board member Erwin Meijnders, acting director Guido Hollaar and policy advisor for labour affairs Tjitso Westra inform members about (among other things) the results of CBA negotiations, changes in crew legislation and visa issues for seafarers.

annualjaarverslag report 2017 2016 | 13 Attention should also be focused on reducing Visas administrative burdens and increasing the workability Coordination between the Ministry of Justice and of the regulations. Unfortunately, consultation on Security, the Royal Netherlands Marechaussee, the this subject took up so much time that it was Seaport Police and the maritime cluster, including decided to extend the regulation relating to RAZ the KVNR, regarding the implementation of the (Regulation on Maritime Employment) and RTO Schengen Borders Code took place in 2017. The (Regulation on Employment of non-EU Officers) in KVNR has experienced this close contact as positive an non-amended form until 2019. It was also and expresses the wish that it should be continued. decided not to rewrite the RTK (Regulation on However, it has been observed that there is increa- Employment of non-EU/EEA Captains), but to extend sing attention towards visa policy concerning it with a provision. This means that permits with an national security and the prevention of illegal unlimited duration will be issued to non-EU captains immigration. The stimulation of business activities as soon as a shipping company implements a – seafarers’ travel included – seems to be under- strategic personnel policy. This will create certainty mined by this. Therefore, the KVNR continues to for the future for both shipping companies and argue that, for both commercial and social reasons, captains. seafarers’ travel to and from ships at the start and

14 end of their duration on board should be made as straightforward as possible.

With these developments in mind, and also due to disagreements between European member states and the European Parliament, the European Com- mission withdrew their earlier proposal for a more business-oriented visa policy at the end of 2017. It is their intention to introduce a revised proposal in 2018. In 2018, via the ECSA, the KVNR will actively advocate the revision of the EU Visa Code so that seafarers continue to be eligible for multiple long- term visas. The issue of such ‘Schengen’ visas is essential for the shipping industry to be able to remain on top of the complex logistics associated with crew changes.

In 2018 the Ministry of Foreign Affairs will commence the process of merging seven regional visa application processing centres into one centralised service centre in The Hague. The Ministry has informed the KVNR that this process will not affect the processing speed of visa applications. Furthermore, the Ministry is discussing a special scheme (the so-called ‘Blue Carpet’) for seafarers, who will be boarding a Dutch ship in the Netherlands, applying for a visa at a Dutch embassy.

Day of the Seafarer

On Saturday 24 June Mayor of Den Helder Coen Schuiling officially opened the Day of the Seafarer during Sail Den Helder. Although this official United Nations day is actually celebrated on 25 June, the working group in which the KVNR participates was already working on a photo exhibition by Kees van Wiersum about the life of a seafarer.

annual report 2017 | 15 In such cases, the willingness of the Ministry of response to this matter, but has also noticed that the Foreign Affairs to issue Schengen visas with a maxi- tariff rates have not been adjusted. The KVNR there- mum term of five years – and thus promote the fore calls for a rapid continuation of the discussions economic interests of the Dutch shipping industry – on the ILT tariff system. This is also in light of the fact is very positive. In 2017, the KVNR successfully argued that the rates (in 2016 with the 2005 Shipping Tariff via the ECSA that crews not requiring visas on Regulations, with insurance certificates on the basis of seagoing vessels calling at EU ports should be the Nairobi Treaty, and in 2017 with the Ballast Water exempted from the obligation to report in the proposed Management Plan) have reached such a high level European Travel Information and Authorization that the KVNR feels the need to ask some serious System (ETIAS). Crew members already have an questions. obligation to report under the Schengen Borders Code. In the continuing consultation on tariff system reform, Spotlight 2018: ILT rates and Kiwa the KVNR will keep calling for transparency of costs, At the end of November 2017, the KVNR was sur- accuracy of figures used, and guaranteed efficiency of prised to receive a request to respond within two underlying work processes. These are the essential weeks to a proposal to index the rates of ILT by 4.12% conditions for a tariff system that is based on cost- (as of 1 January 2018). With reference to the Consu- effectiveness. mer Price Index for 2017 (as well as other factors), the KVNR indicated that an indexation of 1.5% would be more correct. The KVNR did not receive any further

16 Recruitment and Education

Education education institutes and shipping companies is The number of new students starting Dutch nautical therefore bearing fruit. Through the cooperation with education courses fell for the third year in a row in the Palompon Institute of Technology in the Philippines, 2017 (from 1,053 students in 2015 to 725 in 2017). This 97 trainees were selected in 2017; a lower number means that student intake is now back to the level of than in recent years. previous years, following the peak period 2013 and 2015. It should be noted that, because of this peak Focus on recruitment period, the number of diplomas gained also increased Part of the KVNR’s work is to promote the recruit- (from 461 in 2015 to 654 up to the end of 2017). ment of young people aged 16 and over through maritime traineeships for new students. However, By the end of September 2017, the number of Dutch this project recently changed as, from 2018 onwards, maritime students with apprenticeships in the Dutch the Ministry of Infrastructure and Water Management fleet for the first semester of the 2017-2018 school year is not going to renew the temporary subsidies given was 555. The number of trainees working in the Dutch for introductory internships coordinated by the fleet is 70% higher than 2008 levels. It can therefore be Labour Market Taskforce for Seafarers. Faced with the said that the intensive collaboration between maritime prospect of this project coming to an end after 10 years

annualjaarverslag report 2017 | 17 of success, the KVNR started looking for funding to keep it up-and-running. To this end, the KVNR has found a partner for 2018 with the Shipping Training and Development Fund. It should be noted, however, that this will be a streamlined campaign. For example, the introductory internships for 14- and 15-year-olds on a sail training ship have been cancelled, as are the dredging internships under the backing of the Dutch Association of Dredging Constructors. For seafaring internships, about 100 positions will be available in 2018. By continuing to get young people enthusiastic about working in the shipping industry, the KVNR is pleased that such an important component of the project can be continued.

Spotlight 2018: Restructuring education In 2018, the professional competence profiles of educational courses will be evaluated (by social partners). Once complete, the KVNR, together with other parties in the shipping and educational sectors, will investigate whether the approximately eighteen ‘study routes’ currently on offer can be partially combined. This relates to vocational training courses whereby students are educated for maritime profes- sions. In 2017, a total of approximately 3,000 students were enrolled for these educational courses. In view of both the improving economic situation and subse- quent recruitment of staff, it is realistic to say that current and future efforts will focus on stabilising the current level of student intake.

More than 15 years active in the Philippines

The Philippines Palompon Institute of Technology (PIT) and the KVNR have worked together for the training of officers for the Dutch fleet since 2001. This has been achieved with the expertise of the STC Group to provide PIT with educational support. On reaching 15 years of cooperation, the KVNR has published a publication that demonstrates the progress from the pioneering initial phase up to the current stable cooperation.

18 Sailing on the Wylde Swan

The sailing boat Wylde Swan was used once again in 2017 to introduce young people to the shipping sector. Two other trips took place; on board the Eendracht and the Oosterschelde. However, due to the cutting of subsidies for introductory maritime internships, these were the last sailing trips for 14- and 15-year-olds.

annual report 2017 | 19 Interview with co-presidents

It has been another eventful year. Does this require strong leadership from the co-presidents? Sibrand: “My own subsector, the cruise industry, is doing pretty well. But, indeed, I am shocked to see that – after ten years of crisis – there is still no stability and positive growth in the rest of the shipping industry. As president you are able to look at the sector from a bird’s eye view. This means that you can identify opportunities and actually do something about them. I think this is the strength of the presidency of the shipowners association: to identify opportunities that bring out the best in companies and people at the right time.”

Karin: “I can only agree with Sibrand – it is still a time of crisis. In addition, with its changing presidentship and staff changes, the KVNR was faced with enor- mous challenges last year. We have therefore tried to be very supportive towards the office. And now that can delegate, then it’s not the end of the world. Yes, it Annet Koster has started as new director, it is perhaps is busy, but I like that – and in all honesty it is doable. time for us to take a step back. Then we can concen- Although sometimes I have to explain that at home trate more on strategic governance – which of course too – ha ha!” was the plan! Overall, the cooperation between the board and the office personnel is very strong. And in What has been the most surprising aspect of the role that respect I think that we can really form a link of KVNR co-president? between the two.” Karin: “As a board member, I have of course been involved in the KVNR for quite some time. So while What’s it like combining the KVNR co-president with there have been no real surprises, I have noticed a few your ‘regular day job’? things. When you are busy with the business operati- Sibrand: “Well, it has indeed become a lot busier – ons of your own company, you sometimes feel that switching between home life, my job and also in this the branch of the industry that you are part of is not representative role as co-president of the shipowners always equally relevant. association. And taking part in discussions at the international level brings back memories of the time However, what I have really noticed in the past when I was the Dutch representative for the IMO. But months at the KVNR is how important it is that we if you have good people around you, set priorities and shipowners show a united front. To give just one

20 Departing president Tineke Netelenbos wishes Sibrand Hassing and Karin Orsel success as co-presidents at the KVNR’s 25-year jubilee celebrations.

of the sector. On this subject, the Cabinet’s coalition agreement states that a Green Deal will be agreed upon with, among others, the shipping industry. I know that we have more than enough dossiers where we would like to see more government involvement. We also want to pay more attention to the culture of safety on board seagoing vessels. In our opinion, any accident that could have been prevented is one too many. We are therefore going to focus strongly on raising awareness and long-term employability in actively involving seafarers with the subject of combating fatigue, for example.”

Sibrand: “I would like to add that the government is now leaning more towards the modernisation and competitiveness of the Dutch shipping register. And, meanwhile, we are looking at how shipowners can contribute to this process. Taking a jump into the example, without pressure from the united shipow- distant future, I would like to say that we would like to ners, the postponement of the zero VAT rate might see an emission-free ship by 2050. Katharine Palmer never have happened. The same can be seen with the of Lloyd’s Register gave a very visual presentation at handling of the proposed bill stating that shipowners the KVNR New Year’s reception about the steps should protect their seafarers from piracy at sea. In required in order to reach this goal. There are still addition, the great efforts of the office personnel and many obstacles in the way, not least the time it takes the individual enthusiasm of employees are highly to realise the necessary technological developments. commendable. Their knowledge and determination to But shipping would not be shipping if we never took accomplish a better Dutch shipping industry is of steps into the unknown. We have to go forward with great value.” full throttle!”

What does the future hold? Karin: “We can only speculate, so therefore let me stay close to home: 2018. And let’s be clear – we are hoping that the apparent Senate majority for the Merchant Navy Protection Bill will be confirmed by voting. Furthermore, as the KVNR, we want to focus even more on sustainability – the so-called ‘greening’

annual report 2017 | 21 Climate and Environment

A global strategy for further CO2 reduction is needed CO2 emissions by 2050 (compared to 2008 levels). On the issue of climate and the environment, the Climate change has a global impact; yet the shipping shipping industry devoted a great deal of attention in industry is not included in the 2015 Paris Climate 2017 to the implementation of the IMO strategy to Agreement. It is for this reason that the KVNR further reduce CO2 emissions from global shipping. believes that the IMO takes responsibility for our The year also saw the first discussions within the IMO globally-operating sector and presents its own in order to quantify the aims of this strategy including ambitious agenda. It is expected that this level of possible targets of CO2 reduction. This is also ambition, with accompanying CO2 reduction targets, included an initial inventory of possible technical, will be quantified by IMO member states in 2018. operational and market-oriented measures to achieve further CO2 reduction. In order to participate effecti- As well as successful lobbying against the inclusion of vely during upcoming discussions in the IMO, the shipping in the European Emissions Trading System CO2 workgroup was launched in 2017. This looks at (EU-ETS) in Brussels, the KVNR continues to push for the impact of possible CO2 emission reduction a progressive agenda at the IMO. Accordingly, a measures at technical, operational and economic definitive reduction strategy will be adopted on an levels for shipowners. It is logical that the reduction of international scale by the IMO in 2023. Such a CO2 emissions from shipping will continue to be a strategy will set the stage for global solutions that will priority in 2018. As an organisation of Dutch ship- contribute more to the global reduction of CO2 owners, the KVNR would like coordinate actions with emissions than unilateral European measures such as an ambitious target of CO2 reduction. To this end, the EU ETS that only concern vessels operating in KVNR is committed to a 50% absolute reduction of European water.

10 years of the Clean Shipping Platform!

Policy advisor for environmental issues Nick Lurkin welcomes the other participants to the Clean Shipping Platform in the KVNR’s ‘Shipowners Lounge’ at the November 2017 Europort exhibition. Through wide-ranging and intensive cooperation over the last decade, the platform has put itself on the map by promoting knowledge sharing to gain a realistic view of sustainable shipping.

22 annual report 2017 | 23 On this subject, the KVNR cannot stress enough that KVNR supports the stricter sulphur emissions the borderless nature of ships’ emissions calls for a regulations, it has also indicated that both clear-cut global approach. implementation and effective enforcement are of great importance for the success of implementation Towards stricter Sulphur controls in 2020 in 2020. On 1 January 2020, the global sulphur cap will enter force. For then on, emissions from ships sailing At the end of 2017, the KVNR, representing the outside the Sulphur Emission Control Areas (SECAs) shipping sector, called for the prohibition of fuels will not be allowed to exceed 0.50% m/m of sulphur. with a sulphur content greater than 0.5% in bunker As a result of these stricter regulations, 80% less tanks. Exceptions to this are if the vessel concerned sulphur will be emitted outside the SECAs by 2020 has an approved fuel washing installation on board, (in relation to current levels). In working towards the or that no marine fuels with a sulphur content lower implementation of the new regulations, an IMO- than 0.5% are available in the port that the ship is related work plan was started in 2017. While the (un)loading at.

24 This proposal has since been received well by environ- bunker quality in the ports of Amsterdam, Rotterdam mental organisations and also the IMO Subcommittee and Antwerp; the so-called ARA area. The discussion meeting on Pollution, Prevention and Response 5 group consisted of producers, bunker suppliers, port (PPR-5) in February 2018. There is still a lack of clarity, authorities, Belgian, German and Dutch governments however, about how to handle situations when as well as shipowners. In addition to this international low-sulphur fuel is not available in a particular port. ARA forum on bunker quality, 2017 also saw the KVNR This procedure will be further elaborated upon by the signing a national level cooperative agreement with IMO in 2018. the Port of Rotterdam Authority, the Dutch Petroche- mical Industry Association (VNPI), the Netherlands Achieving improved bunker quality Association of Tank Storage Companies (VOTOB) and A lot of attention was paid to the improvement of the Netherlands Organisation for Energy Industry bunker quality for seagoing vessels in 2017; also in the (NOVE). These parties are working together to political arena. At the KVNR’s initiative, an internatio- improve the bunkering sector in the port of Rotterdam nal meeting was set up to look at ways to improve in terms of quality, quantity and efficiency.

annual report 2017 | 25 These national and international partnerships will be also be properly recorded. At a later stage, depending continued in 2018 with the aim of setting up a on when a ship is due for a re-issuing of its oil possible bunker licensing system – an idea favoured pollution prevention certificate, but no later than by the KVNR for a long time. 2024, discharged ballast water must also meet discharge standards. Ships are expected to use an Ballast water approved ballast water treatment system for this The International Ballast Water Management Conven- purpose. Notably, the United States has its own tion came into effect on 8 September 2017; a move ballast water regulations which also must be taken that will improve protection of the marine environ- considered. ment. However, it is also something that has a considerable impact of the daily routine on board a Spotlight 2018: the year of the Green Deal? vessel. Where possible and where permitted, ballast As 2017 drew to a close, the Dutch cabinet finally water must be exchanged with sea water during a included reference to the sustainability of maritime voyage. All activities regarding ballast water must sectors in its coalition agreement.

26 The Dutch government is of the opinion that a so-called Green Deal for shipping, inland shipping and seaports should be put in place in order to achieve greater sustainability. The contents of such a Green Deal should be formulated in 2018; possibly included in the structure of a Climate Table as with other transport modalities. The intention is that the various intentions and mutual agreements will be signed by all the involved parties by the end of 2018.

Wagenborg Shipping wins Maritime Award

On 6 November 2017, Fleet Director Theo Klimp received the Maritime KVNR Shipping Award on behalf of Wagenborg Shipping. The Dutch shipping company won the award in recognition of the vessel Egbert Wagenborg, the first from the innovative EasyMax line. EasyMax vessels are Easy to operate and achieve Maximum performance, especially in terms of environmental efficiency.

annual report 2017 | 27 Merchant Navy Protection

In September 2016, the Proposed Bill for the Protection of the Merchant Navy was submitted by Han ten Broeke (VVD – Liberal party) and CDA (Christian Democrat party, passed from Raymond Knops to Martijn van Helvert) to the Dutch House of Representatives. All parties discussed this proposal in 2017, and on 23 January the bill was discussed in a so-called first-term debate. This photo of the initiators and involved parties was taken at their request after the debate. Less than two months later, the Lower House adopted the bill.

28 Safety and Security

Administrative burdens Navigating with open top In 2010, the EU stipulated that all member states Sometimes cargoes are so large that it is not possible develop an electronic platform (Maritime Single for ships to transport them in a closed hold, even Window) for the exchange of maritime administrative though this is an international requirement. The reports (in Directive 2010/65/EU). Because many EU Dutch flag state allows for a deviation from this, ports have implemented this directive with their own provided certain conditions are met. These conditions methods, there is no uniform reporting procedure for have been included in equivalent regulations submitted ships within the EU. This has resulted in a significant to the IMO. The KVNR and other parties have increase in administrative tasks on board vessels. contributed to the realisation of these equivalent After receiving requests from the shipping sector, the regulations, thus enabling ships to navigate with an European Commission has started a project to ‘open top’. improve the situation. A revision of the guidelines is due in the course of 2018.

annual report 2017 | 29 Cyber-resilience The risk of cyber-attacks in the shipping industry increased further in 2017. Some cyber-attacks in particular, having major consequences for the logistics chain, dominated the news. As such, the need for maritime cyber security has been recognized from all sides. The IMO has decided that cyber security must be included in the International Safety Management Code (ISM-Code) of ships and shipping company offices by 2022 at the latest.

Technical developments regarding ever more autonomous vessels are increasing. Therefore the IMO has also decided to review laws and regulations so that any hindrances can be removed in a timely manner. This means that there will be an increasing focus on maritime cyber security and autonomous ships in 2018. It can be said that digitisation will have a major impact in all areas of business operations with consequences

Autumn members meeting

Policy advisers Niels van de Minkelis and Cathelijne Bouwkamp explain the current state of affairs of safety and security issues. The topics of piracy, RightShip QI and the Maritime Single Window received a lot attention.

30 that are not yet possible to assess. It is for this reason that the Dutch fleet is one of the best performing flag that the KVNR will focus more on providing informa- states – in fourth place – in the Paris MoU partner- tion about ‘cyber’ issues relating to threats, resilience ship for port state inspections (Paris MoU). For the and applicability. time being, RightShip has refused to cooperate or give any insight into the assessment process in order to Appraisal of RightShip QI right any possible errors. This is in spite of being Shippers make extensive use of the RightShip QI rating approached by the KVNR, the Dutch government and system to determine which ships they need to hire for the International Chamber of Shipping ICS. the transportation of their cargo. Using big data and algorithms, RightShip QI predicts safety and efficiency Accident prevention levels of ships for the following 12 months. A second subject that deserves more attention in 2018 is on board safety. The KVNR has noted that there has Ships from certain flag states, including the Nether- been a slight increase in the number of accidents on lands, received a low score from RightShip QI in 2017. board ships. Unfortunately, these have sometimes However, this does not conform at all with the fact been with fatal consequences.

annual report 2017 | 31 Although the sector is highly regulated, including on This law permits the deployment of private armed the subject of maritime safety, the KVNR wants to security personnel if mobilization of a military force focus more on active prevention. Our strength as a – the so-called Vessel Protection Detachment – is not shipowners association lies in our ability to call on the possible in waters in the Gulf of Aden region. It is entire sector to achieve a higher level of awareness precisely what can allow Dutch shipping companies about the safety of seafarers on board. to operate safely at all times. As such, the KVNR is of the opinion that this law is the most workable and Spotlight 2018: Dutch Merchant Navy Protection Act most favourable solution for all parties involved. At the start of 2018, the House of Representatives started discussing the Proposed Bill for the Protection of the Merchant Navy against piracy. After passing the bill with an 89-seat majority on 13 March 2018, the bill was transferred to the Senate.

32 The Royal Association of Netherlands Shipowners celebrated its 25th anniversary as KVNR in 2017. During the public general meeting of members on board the SS Rotterdam on 25 June, attention focused on both the KVNR’s origins as well as its future. President Tineke Netelenbos presented the jubilee book ‘Forward full throttle!’ to H.R.H. Princess Margriet, guest of honour during the anniversary celebrations. Shortly afterwards, Tineke Netelenbos was appointed as honorary member of the KVNR. It was, of course, an opportune moment for the new KVNR co-presidents Sibrand Hassing and Karin Orsel to introduce themselves to the members. The next 25 years – here we come!

annual report 2017 | 33 Colophon

Publishers Koninklijke Vereniging van Nederlandse Reders May 2018

Editor KVNR Offices

English translation Tom Scott

Design Coopr

Printing Drukkerij Efficiënta

Photography KVNR members

The original Dutch text of this Annual Report was finalised on 10 april 2018

You can find current information about the KVNR board, offices and members on www.kvnr.nl For the digital version of this 2017 annual report please visit www.kvnr.nl

In Memoriam: Wim Waanders (1959-2018)

On 12 March 2018 we were shocked to hear about the death of Wim Waanders, KVNR’s Policy Officer for Labour Affairs. He had been sick for some months, and in the end, was not able to win his fight against cancer. Wim was a committed and sociable colleague. We will remember him not only for his expertise, but also for his energetic, positive and humorous personality.

34 bnnen zijde omslag

annual report 2017 | 35 royal association of netherlands shipowners

Boompjes 40 3011 XB Rotterdam The Netherlands Tel.: +31 (0)10 - 414 60 01 [email protected] www.kvnr.nl