maritime administration seminar world maritime university malmö 27 august 2008 intertanko and...

Maritime Administration SeminarWorld Maritime University

Malmö 27 August 2008

INTERTANKO and Quality Shipping in the context of Flag State Implementation

Kristian R. FuglesangAssistant Director

Anti-Trust/Competition Law Compliance Statement

INTERTANKO’s policy is to be firmly committed to maintaining a fair and competitive environment in the world tanker trade, and to adhering to all

applicable laws which regulate INTERTANKO’s and its members’ activities in these markets. These laws include the anti-trust/competition laws which the

United States, the European Union and many nations of the world have adopted to preserve the free enterprise system, promote competition and protect the public from monopolistic and other restrictive trade practices.

INTERTANKO’s activities will be conducted in compliance with its Anti-trust/Competition Law Guidelines.

Maritime Administration Seminar, WMU, 27 August 2008

Maritime Administration Seminar, WMU, 27 August 2008

What do shipowners expect of flag states?

Maritime Administration Seminar, WMU, 27 August 2008

A strong and responsible register,

demonstrating leadership and accountability.

Maritime Administration Seminar, WMU, 27 August 2008

What do shipowners expect of flag What do shipowners expect of flag states?states?

Seven Cs for a responsible flag state:

1. Competent administration

2. Commitment

Maritime Administration Seminar, WMU, 27 August 2008

What do shipowners expect of flag What do shipowners expect of flag states?states?

Seven Cs for a responsible flag state (ctd):

3. Consistent

4. Corruption-free

Maritime Administration Seminar, WMU, 27 August 2008

What do shipowners expect of flag What do shipowners expect of flag states?states?

Seven Cs for a responsible flag state (ctd):

5. Competitive

6. Capital – friendly

7. Casualty investigation

Maritime Administration Seminar, WMU, 27 August 2008

The Shipping Industry Guidelines on Flag State Performance

Maritime Administration Seminar, WMU, 27 August 2008

Essential standards to be enforced and encouraged by flag

states:

• Safety

• Environmental

• Social performance

Maritime Administration Seminar, WMU, 27 August 2008

Shipowners’ reasonable expectations

of the flag administration

Maritime Administration Seminar, WMU, 27 August 2008

Balance between:

1) Commercial advantage

2) Discourage flags which do not meet their international obligations

Maritime Administration Seminar, WMU, 27 August 2008

Examine whether a flag has sufficient substance before using it

Maritime Administration Seminar, WMU, 27 August 2008

The shipping industry should put pressure

on flag states to make necessary improvements re:

• Safety of life at sea

• Protection of marine environment

• Decent conditions for seafarers

Maritime Administration Seminar, WMU, 27 August 2008

Flag states:

• First line of defence against unsafe or environmentally damaging ship operations,

• Enforcement of IMO and ILO rules

Maritime Administration Seminar, WMU, 27 August 2008

Poor record of Flag States

has Port State Control implications

for good ships under that flag

Maritime Administration Seminar, WMU, 27 August 2008

Charterers might not want to be

associated with a poorly performing flag

Maritime Administration Seminar, WMU, 27 August 2008

Well performing flag states are less likely to tolerate sub-standard operators.

Competition from sub-standard operators unfair

Maritime Administration Seminar, WMU, 27 August 2008

Is using a poor flag in the interest of shipowners?

Maritime Administration Seminar, WMU, 27 August 2008

There can be reasons to use poor flags,

but one should then encourage that State to improve

Maritime Administration Seminar, WMU, 27 August 2008

Flag State responsibilities:

• Infrastructure

• Constructive participation in IMO and ILO

• Rapid ratification of international conventions

• Efficient and uniform implementation and enforcement

Maritime Administration Seminar, WMU, 27 August 2008

Flag State responsibilities (ctd):

• Supervision of classification societies

• Proper ISM Code procedures

• Safarers’ competence standards

• Safe manning and working hours

Maritime Administration Seminar, WMU, 27 August 2008

Flag State responsibilities (ctd):

• Casualty investigations

• Transfer of ships between flags

• Repatriation of seafarers

• Participation in IMO Member State Audit

Maritime Administration Seminar, WMU, 27 August 2008

Shipping should not be allowed to be used as a pawn in international politics

Maritime Administration Seminar, WMU, 27 August 2008

Flag can be one of the criteria in targeting ships for Port States inspections,

but otherwise,

tankers should be given

the same treatment in ports regardless of flag

Maritime Administration Seminar, WMU, 27 August 2008

Classification societies should be encouraged to be more selective in accepting work for

under-performing Flag states

Maritime Administration Seminar, WMU, 27 August 2008

Shipowners should be selective in their decision regarding which Flag states

they use

Maritime Administration Seminar, WMU, 27 August 2008

Charterers should do likewise

Maritime Administration Seminar, WMU, 27 August 2008

When IMO Audit Scheme is up and running:

INTERTANKO Members shall commit to only employ those flags that have satisfactorily completed an IMO Member State audit.

Maritime Administration Seminar, WMU, 27 August 2008

Results of IMO State audits should be made public

Findings need to be followed up

Maritime Administration Seminar, WMU, 27 August 2008

Thank you

www.intertanko.com

Maritime Administration Seminar, WMU, 27 August 2008

Welcome in Oslo!

Maritime Administration Seminar, WMU, 27 August 2008

Maritime Administration Seminar, WMU, 27 August 2008