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AnnualReview2011
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 andISF comprises nationalshipowners’ associationsrepresenting all sectors andtrades from 36 countries, covering more than 80% of the world merchant fleet.
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page Contents 4 Chairman/President’sIntroduction 5 OfficeBearersandSecretariat
6 KeyIssuesin2011 6 PiracyCrisisintheIndianOcean 8 ReducingCO2Emissions 10 The‘ManilaAmendments’totheSTCWConvention
13 TheYearinReview 13 IMOMaritimeSafetyDevelopments 13 LifeboatSafety 13 ISMCode 14 TankerSafety 16 ShipbuildingStandards 16 SafeNavigation 16 StabilityIssues 17 OverloadingofContainers 19 PollutionPrevention 19 TheTransitiontoLowSulphurFuel 19 BallastWaterManagement 20 Garbage 20 ShipRecycling 20 OtherEnvironmentalIssues 21 EmploymentAffairs 21 ManpowerSupply 22 MaritimeLabourConvention 24 WorkHourRegulations
27 ILOMinimumWage 27 TheYearoftheSeafarer 28 ‘DeepwaterHorizon’Incident 31 USDevelopments 32 EUDevelopments 34 AsianDevelopments 36 LegalandInsuranceDevelopments 36 HNSLiability 36 IGofP&IClubs 37 LLMCReview 39 EnvironmentalSalvage 39 CargoLiability 39 CriminalisationandFairTreatmentofSeafarers 40 CompetitionRegulations 42 ShippingPolicyandFreeTrade 43 InternationalAccountingStandards 44 CanalIssues 45 IndustryRepresentation 45 Publications 46 AdministrativeMatters
47 Committees,OrganisationalStructureandMembership
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Introduction
ICSChairmanandISFPresidentMrSpyrosMPolemis
Greece
ASIWRITE,ABOUT600SEAFARERSarebeingheldhostagebypiratesinSomalia,thousandsmorehavingalreadyenduredmonthsofcaptivityinthemostappallingconditions.
Whatisalmostasshockingisthattheinternationalcommunityseemsunabletoact,ineffectcedingcontrolofthenorthwestIndianOceantoarmedcriminalgangs.Politiciansandpolicymakersseemcompletelyignorantaboutthelargeproportionofworldtradethatmustpassthroughthepiratedangerarea.Evenmoredisturbing,manypoliticiansseemoblivioustotheimmensehumancost.Ifweconsiderthefamiliesofthosethathavesofarbeenheldhostage,tensofthousandsofpeoplehavealreadybeenaffected.Butwhentakingaccountofthefamiliesofallthoseseafarerswho,infearfortheirlives,courageouslykeepworldtrademoving,thenumbersdirectlytouchedbythecrisisareenormous.Sadly,onecanonlyconcludethatthevictimsofpiracyarethe‘wrong’nationality.If3,000EuropeansorAmericanshadbeenkidnappedduringthelastthreeyears,itcansafelybeassumedthattheresponseoftheworld’smajorpowerswouldhavebeenverydifferent.
AsthisAnnualReviewexplains,whilenoshorttermsolutionsappeartobeinsight,piracyisbyfarthemostimportantissueinwhichICSandISF
arecurrentlyengagedonbehalfoftheglobalindustry.However,lifemustsomehowgoon,andshipsmustcontinuetheirvitalbusinessoftransportingworldtrade.
Inlastyear’sAnnualReview,Iremarkedthatitwasnecessaryforanyprudentshipoperatortocontinuetoanticipatetheunexpected.AyearlaterwearetryingtodigesttheenormousimplicationsofthedevastatingearthquakeandtsunamiinJapanandtheirtragicconsequences.WearealsointhemidstofdramaticpoliticalupheavalsintheMiddleEast,andwhatthefutureholdsinrelationtotheseseemsfarfromclear.Moreover,whilemanyhadassumedthattheworstwasoverfollowingthe2008bankingcrisis,thehealthoftheglobaleconomyisstillveryfragile.
Shipping,ofcourse,istheservantofworldtradeandisverysensitivetodevelopmentsbeyonditscontrol.However,ourexternalchallengesarecompoundedbythetrulymassivequantityofnewtonnagethatisduetobedeliveredinthenextfewyears.ManyofthesenewshipsarebeingorderedfromChina,whichisaggressivelyexpandingitsshipbuildingcapacity.Wemustbemindfulofnotrepeatingthemistakesof30yearsagowhenspeculativeoverorderingledtofartoomanyshipschasingtoofewcargoes,causingratestoplungetounsustainablelevels.
Moreoptimistically,oneoftheimportantissuesoverwhichtheindustrycanhavesomeinfluenceisourcollectiveefforttoreducecarbonemissions.ICSisworkinghardtohelpensurethatshipping’sCO2emissionsareregulatedonaglobalbasisbytheInternationalMaritimeOrganization(IMO).Thiswillbevitalifwearetoavoidseriousmarketdistortions,anditwillalsobethebestmeansofdeliveringgenuineandmeaningfulemissionreductions.Thesecanonlybeachievedifthenewrulesareappliedtotheentireworldfleet,andnotjustshipsregisteredwithdevelopedcountries.Itisthereforeoftheutmostimportancethatgovernmentsagreetoapackageofnewtechnicalmeasurestoreducecarbonemissionsfromships,atacriticalmeetingoftheIMOMarineEnvironmentProtectionCommitteethisJuly.2011willbethelastofanimpressiveeightyearsinofficeforthecurrentIMOSecretary-General,EfthimiosMitropoulos.Aswellasbeingahighlyknowledgeableanddiligentregulator,hehasalwaysdisplayedgreatempathyfortheshippingindustryandtheseafarerswhomitemploys.Hisachievementsinofficearelegion.OneinparticularthatmustnotgounremarkedwashissteeringthroughoftheestablishmentoftheIMOMemberStateAuditScheme.Asaresultofhiseffortstonegotiatearoundsensitivesovereigntyissues,theperformance
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MrFrankLeonhardtGermany
ICSViceChairmen ISFVicePresidents
MrCarlosSalinasPhilippines
MrTrygveSeglemNorway
ICS/ISFOfficeBearers2010/11
CaptainDirkFryCyprus
SecretariatMrPeterHinchliffeSecretary General
*positionheldjointly
MrSimonBennettDirectorExternalRelationsMsLindaHowlettDirectorLegalAffairs*MrAlistairHullTechnicalManagerMsKiranKhoslaDirectorLegalAffairs*MrJamesLangleySeniorAdviser
MrsSusanGrayDirectorFinanceandAdministration
MrsKathrynHallPersonalAssistanttoSecretaryGeneralMrsCatherineHowlettAdministratorPublications
MrJohnMurrayDirectorMarineMissEmilyRowleyAdviserMrsNatalieShawDirectorEmploymentAffairsMrJohnStawpertSeniorAdviserMrDavidTongueDirectorRegulatoryAffairs
MrsShantelRyanPublicationsManager
MrsAnitaPowAdministratorShippingPolicyMissJulieRogersAdministratorMarineDepartment
ofmaritimeadministrationswithrespecttotheirenforcementofIMOruleswillnowbesubjecttofarmorethoroughscrutiny.Thiswillgreatlyhelptowardsourultimategoalofzeroaccidentsandzeropollution–afittinglegacyindeed.IlookforwardtoworkingwithMrMitropoulos’successor,whowillbeelectedbygovernmentsinJune.
AttheirAnnualMeetingsinHamburg,inMay2011,ICSandISFwillfinalisetheirimportantdecisiontointegratethetwoassociationssothattheywilloperateunderasingleBoardofDirectors.TheneworganisationwillcontinueunderthenameoftheInternationalChamberofShipping,andwillalsomaintaintheseparateidentityoftheInternationalShippingFederation.However,thisdoesmeanthatthisisthelastAnnualReviewwhenIwillhaveoccasiontothanktheISFVicePresidentsandISFCouncilfortheirvaluablesupportduringthepreviousyear,inadditiontomyICSViceChairmenandmycolleaguesontheICSExecutiveCommittee.Notwithstandingthechallengesofpiracy,andpoliticalandeconomicuncertainty,IIookforwardtocontinuingtoserveourgreatindustryforanotheryearasICSChairman.
SpyrosMPolemis
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PiracyCrisisintheIndianOcean
ofransompaymentshasalsorisen,inonecasereportedlyapproachingUS$9.5million.Thepiratesareseeminglybetterequippedandareincreasinglyusingcapturedvesselsas‘motherships’.Itisalsofearedthatbecauseoftheveryhighfinancialstakes,seriousviolenceagainsthostagesisfarmorelikely,asdisturbinglyevincedinearly2011bythemurderofcaptivesatsea,apparentlyinresponsetoattemptsatmilitaryintervention.
Frustratingly,governmentsinthosenationswiththelargestmilitarynaviesintheregionshowlittlewillingnesstoincreaseresourcestotheextentthatwouldbenecessarytohaveadecisiveimpactontheproblem.Inshort,theyhavecededcontroltotheextentthatfewshipstransitingtheIndianOceanarenowsafefromattack.Atatimewhenbothfinancialandmilitaryresourcesareextremelystretched,Westerngovernments,atleast,appeartohaveconcludedthatthisunacceptablesituationcansomehowbetolerated.Moreover,thedramaticrecentpoliticaldevelopmentsintheMiddleEast,includingthedecisionoftheUNSecurityCounciltosupportmilitaryinterventioninLibya,havefurtherdivertedtheattentionofpolicymakersfromtheurgentneedtoaddressthepiracycrisis.ThisseeminglyrathercomplacentassessmenthasprobablybeensupportedbythefactthatrelativelyfewnationalsfromWesternnationshavesofarbeentakenhostage,orbeenamongstthose30crewmemberssofarunderstoodtohavelosttheirlivesduetoillnessincaptivity.Counterpiracyeffortshavealsobeendiscreditedbythelackofappropriatedomesticlegislationinmanynations,includinganyoffenceof‘intenttocommitpiracy’,whichhasledtoacontinuationoftheabsurdsituationthatpirateswhoarecapturedbynaviesareoftenreleasedbacktoSomalia.
SINCETHEBEGINNINGOF2011,thepiracycrisisinSomaliahascontinuedtospiraloutofcontrol.Atthetimeofwriting,about30shipsandaround600seafarersarebeingheldhostageforransominSomalia,withattackstakingplaceonamoreorlessdailybasisthroughoutthelargerpartofthenorthernIndianOcean,sometimesasfaroutasthecoastofIndiaandsouthintotheMozambiqueChannel.
Whilethenumberofattackshasincreaseddramaticallysincetheincidenceofpiracyintheregionstartedtoescalatein2008,thelevel
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Thedegreeofco-operationbetweenmilitarynaviesintheregioniscertainlyunprecedentedinmoderntimes,withEUandNATOforcesworkingcloselywithindependentnaviesfromcountriesincludingChina,Russia,India,SouthKoreaandJapan,amongothers.Tobefairtothenavies,toalargeextenttheyhavebeenavictimoftheirownsuccessinpreventingattacksagainstshipsintheGulfofAdenthroughtheefficientandeffectiveuseofaninternationallyrecognisedtransitcorridor.ThepirateshaverespondedbyexpandingtheirattacksthroughoutalargepartoftheIndianOcean,anenormousseaareaofabouttwoandhalfmillionsquaremiles,whichthenaviesclaimcanonlybepolicedeffectivelywithanadditional85warshipsequippedwithhelicopters.Atanygiventimetherearecurrentlyaround30warshipsintheregiononcounter-piracyduties,butonlyaproportionoftheseareactuallyavailabletoprotectmerchantshipsonanygivenday.Asaresult,whenattackedbypiratesmanyshipsmaybehundredsofmilesawayfromthenearestmilitaryvessel.
Oneimportantdevelopmentin2011istheincreasinguseofprivatearmedsecurityguardsbyshippingcompanies,manyhavingconcludedthatarmingshipsisanecessaryalternativetoavoidingtheIndianOceancompletely.TheconsensusviewamongstmostICSnationalassociationsremainsthat,innormalcircumstances,privatearmedguardsarenotrecommended,andareaclearsecondbesttomilitarypersonnelonboard.However,ICShashadtoacknowledgethatthedecisiontoengagearmedguards,whethermilitaryorprivate,isadecisiontobemadebytheshipoperatorafterdueconsiderationofalloftherisks,andsubjecttotheapprovalofthevessel’sflagstateandinsurers.
Inviewofthecurrentcrisis,shipoperatorsmustbeabletoretainallpossibleoptionsavailabletodeterattacksanddefendtheircrewsagainstpiracy.Butthereisclearlyaneedforguidancetobedevelopedforcompaniesthatelecttodeployarmedguards,andnavieshaveexpressedthewishtobefreetocommunicatewithprivateguardsemployedon
boardshipsandtoco-ordinatetheiractivitywiththem.FollowingtheacknowledgmentbyICSoftheuseofarmedguards,IMOisnowconsideringthedevelopmentofsuchguidance,perhapsinparalleltothewidelydisseminatedBestManagementPracticestopreventpiracy,developedbyindustryassociationsincludingICS,inco-operationwiththemilitary(thelatestversion-BMP3-waspublishedin2010).However,ICShasbeenkeentostressthatarmedguardsshouldnotbeseenasasubstituteformilitaryprotectionbygovernments,andthatthesamelogicappliestoproposalsbyinsuranceinterestsforsomekindofprivateconvoyescortprogramme.
ItmustbeemphasisedthatstrictadherencetotheBestManagementPracticesremainsthesinglemosteffectivemeansofpassivedefence.ICScontinuestourgeallcompaniesandshipstocomplywiththeguidanceinBMP3,withparticularemphasisonregistrationwiththemilitarypriortoeverypassage.
Attheoperationallevel,ICScontinuestoliaisewiththemilitary,includingthecommandersofEUNAVFORandNATOnavies,aboutthebestuseofresourcesandanyneedforfurtherrefinementoftheindustryBestManagementPractices.ICSalsocontinuestoparticipateintheregularmeetingsoftheUNContactGrouponpiracy,heldinNewYorkandLondon,aswellasrelevantmeetingsatIMOwhichhasmadeorchestratingaresponsetopiracyits‘theme’for2011.ThiswaslaunchedataspecialceremonyinLondon,inFebruary,attendedbytheUnitedNationsSecretaryGeneral,MrBanKi-moon.
Thisactivitynotwithstanding,itremainsaconcernthatlittlerealprogressisbeingmadetowardsdevelopinganyradicalnewstrategythatwilldeliverimmediateresults.WhileeveryonerecognisesthatthelongtermsolutionwillhavetobefoundwithinSomaliaitself,supportedbypracticalmeasuressuchastheestablishmentofalocalcoastguard,theindustryseemstobefacedwiththeutterfrustrationofaneverincreasingnumberofattacksfortheforeseeablefuture.Seafarers’unions
understandablysharethisfrustration,andhavesuggestedthattheymightevenproposeaboycottofthedangerarea-orthatgovernmentsinmajorlaboursupplycountries,suchasthePhilippines,mightbeencouragedtodothesame.
Followingrecentmeetingsamongstinternationalshippingorganisations,includingseafarers’unionsrepresentedbyITF,ithasbeenagreedthatthewiderindustryshoulddevelopanewstrategytoincreasethepoliticalwilltocombatpiracy.The‘SaveOurSeafarers’campaignhassofarincludedtheplacingofadvertisementsinmajorinternationaljournalsandusingeveryopportunitytokeeptheissuealive,vianationalshipowners’associations,inmainstreamnationalmedia.Theseeffortsbuildontheinter-industrypetitionagainstpiracy,thatimpressivelyraisedalmostamillione-signaturesfromamongsttheglobalshippingindustry,andwhichtheICSChairmanhelpedtopresenttotheIMOSecretary-GeneralonWorldMaritimeDayinSeptember2010.
Theinternationalcommunitydependsonshipstotransporttradeandkeeptheworldeconomymoving,andtheeradicationofpiracyistheresponsibilityofgovernments,asstipulatedbytheUNLawoftheSea.However,inthefaceoftheirseemingimpotence,theshippingindustrywillbeforcedlookatallpossibleoptions,includingalternativeroutes,whichcouldhaveaverydramaticeffectontransportcostsanddeliverytimes.
PiracyisalreadyestimatedtocosttheglobaleconomyUS$12billionayear.IfincreasingnumbersofshipsdecidetodivertaroundtheCapeofGoodHope,thiswillalmostcertainlyhaveamajorimpactoninventoriesandcoststhroughoutthewholesupplychain.ItcouldalsogreatlydamagetheeconomiesofAfricaandtheMiddleEastatthisverypoliticallydelicatetime.Buttheprincipalconcernofshipoperatorsishumanitarian.Itissimplyunacceptablethatseafarershavebeenkilled,whilehundredsmorearebeingheldcaptiveinappallingconditions,infearfortheirlives.
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TACKLINGCLIMATECHANGEisthechallengeofourage,andthecomplexdebateabouthowbesttoreduceshipping’semissionscontinues.ICSthereforeremainscloselyinvolvedinthediscussionsonCO2atIMO,aswellastheparalleldiscussionsatUNFCCC,includingthelatestUnitedNationsConferenceonClimateChangeheldinCancun,Mexico,inDecember2010(seebox).
Throughacombinationoftechnicalandoperationalmeasuresdeliveringimprovedfuelefficiency,shippingcanprobablyreduceitsCO2emissionspertonne-kilometrebyasmuchas20%by2020.However,deliveringabsoluteemissionreductionsforthesectoraswholewillbemuchmoredifficultiftheworldeconomy,andthusthedemandforshippingservices,continuestoexpand.
Shippingisamajorindustryand,withshipping’semissionsreportedlyequivalenttotheeconomyofGermany,theindustryfullyrecognisestheneedtoplayitspartinreducingthem.However,whilethepracticalchallengeishuge,thebiggestimmediateobstacleispoliticalandconcernstheprincipleof‘CommonbutDifferentiatedResponsibility’.Thisistheapproach,adoptedbygovernmentsatthehighlevelUNFCCCnegotiations,wherebydevelopingnationsaremeanttobesubjecttolessonerouscommitmentsforCO2reductionsthanrichercountries.Butthedeliveryofsignificantemissionsreductionsbyshippingwillrequirethatanymeasuresadoptedareappliedonauniformandglobalbasis,inordertoavoid‘carbonleakage’(aswellasseriousmarketdistortions).Onlyabout35%oftheworldfleetisregisteredwithdevelopedKyotoProtocol‘AnnexI’nations,andmostshippingcompanieshavethefreedomtodecidetoregistertheirships
withthenationsoftheirchoice.Insummary,meaningfulglobalemissionreductionsbymaritimetransportwillbefarmorelikelytobeachievedifadoptedbygovernmentsatIMO,sothattheycanbeappliedtotheentireworldfleet.ICScontinuestoleadindustryrepresentationatmeetingsoftheIMOMarineEnvironmentProtectionCommittee(MEPC)which,inOctober2010,agreedadraftpackageoftechnicalandoperationalmeasurestoreduceshipping’sCO2emissions.TheseincludetheEnergyEfficiencyDesignIndex(EEDI)fortankers,bulkcarriersandcontainerships,andtheusebycompaniesofbespokeShipEnergyEfficiencyManagementPlans(SEEMP).ThelatterwillallowshippingcompaniestomonitorandimprovetheirperformancewithregardtothevariousfactorsthatmaycontributetothereductionofCO2emissions(suchasimprovedvoyageplanning,speedmanagement,weatherrouteing,optimisinghullefficiencyandenginepower,andtheuseofdifferentfueltypes).Indeed,topromoteuseoftheSEEMP,whichwasoriginallydevelopedbyICS,referencetoithasalreadybeenincludedinthelatesteditionofthewidelyusedICS/ISFGuidelinesontheApplicationoftheIMOInternationalSafetyManagement(ISM)Code.
ThisIMOpackageoftechnicalandoperationalmeasureswillbeconsideredforformaladoptionbygovernmentsattheIMOMEPCmeetinginJuly2011,asamendmentstoMARPOLAnnexVIwhichgovernsatmosphericpollution.UsingtheIMO‘tacitamendment’proceduretheseamendmentscouldthenenterintoforcerelativelyquickly,possibly18monthsaftertheiradoption.
However,consistentwiththeirsupportforCommonbutDifferentiated
Responsibility,nationssuchasChina,IndiaandSaudiArabiacontinuetoleadoppositiontomandatoryIMOCO2measuresbeingapplieduniformlytoshipping.ICSremainsconfidentthatIMOwillindeeddeliverapackageoftechnicalmeasuresattheMEPCmeetinginJuly.Inreality,however,thiscannotbetakenforgranted,especiallyifsomenationsactivelyencourageopposition.
AgreementatIMOinJuly2011willbemostimportanttoensurethatIMOretainscontrolofthemaritimeCO2issue,whichotherwisecouldstillbedealtwithindetailbyUNFCCCaspartofanyreplacementtotheKyotoProtocol.UNFCCChopestomakeprogressonanewagreementatthenextmajorUNConference,inDurbaninDecember2011,withtheattendantriskthat,inaccordancewithUNFCCCprinciples,shipsfrom‘AnnexI’nations(i.e.most,butnotalldevelopedcountries)couldbetreateddifferentlytothemajorityofshipsthatareregisteredwithdevelopingcountries.AdoptionofapackagebyIMOwillalsobenecessarytodiscouragetheEU(andothernations)frompressingaheadwithregionalmeasuresaffectingshipping,theEUhavingsetIMOadeadlinetodeliveraglobalagreementonCO2beforetheendof2011.
Whilelessadvancedthanthediscussionsabouttechnicalmeasures,IMOisalsostillcommittedtodevelopingaMarketBasedMeasure(MBM)thatcanbeappliedtoshipping.ICShasparticipatedinanIMOExpertGroupwhichin2010producedareportontheprosandconsofthevariousMBMsthathavesofarbeenproposedbygovernments,includingemissiontradingschemes,fuelleviesandmeasureslinkedtotheuseoftheEnergyEfficiencyDesignIndex.
Originally,themainargumentfromgovernmentsinsupportofMBMs
ReducingCO2Emissions
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wasthattheywouldsomehow‘incentivize’shippingcompaniestoreducetheiremissions.Increasingly,however,MBMsarebecomingviewedbysomegovernmentsasameansbywhichmoneycanberaisedfromshippinginsupportofUNFCCCdiscussionsabouta‘GreenFund’tohelpdevelopingnations,inreturnfortheirsupportforanewglobalagreementonclimatechange.
ICS’spositionhasbeentocommentasan‘honestbroker’onthevariousMBMsproposedatIMO,notleastwithregardtotheextentthattheymightdelivergenuineenvironmentalimprovements.Todatethisneutralpositionhasprobablyservedtheindustrywell,butintheyearaheadICSanticipatesincreasingpressurefromgovernmentsto‘stepdownfromthefence’andexpressaclearpreferenceforoneformofMBMoveranother.However,thehighcostoffuelmeansthatshipoperatorsalreadyhaveeveryincentivetoreduceconsumption,andmanyintheindustrysimplyviewproposedMBMsasataxbeingpromotedforpoliticalreasons,andbelievethattheadoptionofIMOrulesontechnicalandoperationalissuesshouldbegiventhehigherprioritybyfar.
Theissuesareverycomplicated,sincethediscussionsatIMOandUNFCCCarealsolinkedtodebatesaboutthetreatmentofshipping
UNFCCCClimateChangeConferenceinCancun
ICSattendedtheUNClimateChangeConference(COP16)inMexicoinDecember2010,havingthehonourofrepresentingtheshippingindustryataspecialeventatthestartoftheConferencefordelegates,organisedjointlybyIMOandtheInternationalCivilAviationOrganization(ICAO).
Disappointingly,thoughnotsurprisingly,theUNConferencewasunabletoprovideIMOwithastrongermandateabouthowitshouldreconciletheUNFCCCprincipleofCBDRwiththeneedforglobalshippingrules.Infairness,however,thiswaslargelyduetothedeterminationoftheMexicanhoststoavoidcontroversialissues,theobjectivebeingtomaintainthedialoguesothattalkscancontinueinSouthAfricainDecember2011,beforetheexpiryofthecurrentKyotoProtocolin2012.
However,throughoutthediscussions,andnotwithstandingthepositionsofnationslikeChinaandIndiaontheimportanceofCBDRbeingtakenintoaccountbyIMO,thereappearedtobeageneralrecognitionamongstgovernmentsthatIMOistheappropriateforumtodevelopmeasuresforshipping.
withintheEuropeanUnionandtheUnitedStates(seesectionofthisreviewonregionaldevelopments).Inanattempttoexplaintheissuestopolicymakersandtothepublicatlarge,ICShasestablishedawebsite-www.shippingandco2.org
-whichnowincludesashortfilm,alsoavailableasaDVD.
However,theimmediatechallengeforICSandallofitsmembernationalshipowners’associationsistopersuadeasmanygovernmentsaspossibletosupporttheadoptionofamendmentstoMARPOLAnnexVIconcerningtechnicalandoperationalmeasures,whichwillbringaboutmeaningfulCO2emissionreductionsbyshipsonaglobalbasis.
UNFCCCGreenFund
PerhapsoneofthemoreimportantgeneraldevelopmentsattheUNConferenceinCancunwasthattheconceptofa‘GreenFund’wasendorsedbyUNFCCC(havingfirstbeenproposedbythedevelopednationsattheCopenhagenConferencein2009).TheintentionistomobilizefundsofUS$100billionperannumby2020tohelpdevelopingcountriesconfrontclimatechange(inexchangefortheirsupportforanewUNFCCCagreement).
InNovember2010,inadvanceoftheCancunConference,theUnitedNationsHighLevelAdvisoryGrouponClimateChangeFinancing(AGF)
publisheditsreportabouthowmoneyfora‘GreenFund’mightberaised.ICSsoughttoinfluencethetreatmentofshippinginthereportthroughadetailedsubmissiontotheGroup.
ICShaswelcomedthosepartsoftheUNreportwhich-asICShadsought
-acknowledgedthattheprincipleofCBDRmustbereconciledwiththeneedforanyMarketBasedMeasurestoapplyequallytoallshipsglobally,andthatthebestforumforachievingthiswouldbeIMO.However,theUNreportdoesseemtoimplythatthepriceforIMOretainingresponsibilityfordevelopinganMBMforshippingwouldbethatanyfundsraisedwouldhavetobecontributedtotheGreenFund.WhileitisdifficulttoknowhowthelinkbetweentheGreenFundandanyIMOMBMmightbeestablished,itwillbeparticularlyimportanttoavoid‘doubletaxation’ofshippingbyUNFCCCandIMO-apointwhichhasbeentakenupbytheIMOSecretary-General.
AlthoughpartsoftheUNreportonclimatechangefinancinglackconsistency,itappearstosuggestthatinternationalshippingmightbeexpectedtocontributeaboutUS$7billionperyeartoaGreenFund(curiouslyabouttwicethesumfrominternationalaviation).Toput$US7billionperyearincontext,thisactuallyequatestoabout$25pertonneoffuel(assumingmid-rangeIMOestimatesoftotalconsumptionbyshippingofabout300milliontonnesayear).However,othersectionsoftheUNreportsuggest,forreasonsnotentirelyclear,thatonlyaproportionofthemoneycollectedwouldgototheGreenFund,whichimpliesthatshippingmightactuallybeexpectedtopayamuchlargerfigure.
TheIMOSecretary-Generalhashelpfullyarguedthatshippingshouldpaynomorethan$2.7billionperyear,onthebasisthatthiswouldbecommensuratewithshipping’sreportedshareoftotalglobalemissions(2.7%).However,itremainstobeseenwhetherUNFCCCwillprovemoreconcernedwiththemaximumthattheshippingindustrymightbeforcedtopayasopposedtohowmuchitmightfairlybeexpectedtocontribute.
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ISFCONTINUEStoleadtherepresentationofmaritimeemployersatIMO.InJune2010,inManila,thisincludedrepresentationofshipownersatanIMODiplomaticConferencewhichadoptedawiderangingsetofamendmentstotheIMOConventiononStandardsofTraining,CertificationandWatchkeepingforSeafarers(STCW).Thiswastheculminationofacomprehensivereviewbygovernmentslastingseveralyears,towhichISF(andICS)providedsignificantinput.
Thecompetenceofseafarersisamostcriticalfactorinthesafeandefficientoperationofships,andhasadirectimpactonthesafetyoflifeatseaandtheprotectionofthemarineenvironment.TheSTCWConventionconstitutesacomprehensivesetofregulationsintendedtomaintainthehigheststandardsofcompetenceglobally.Inparticular,theSTCWConventionplacesimportantresponsibilitiesonmaritimeemployers,obligationswithwhichtheymustfullycomply.
Numerousamendmentswereadoptedtotakeaccountofrecenttechnicaldevelopmentsrequiringnewshipboardskills,suchastheuseofElectronicChartDisplayandInformationSystems(ECDIS)ortheneedtogivemoreemphasistoenvironmentalmanagement.Butthechangesalsocoversuchmattersasnewtrainingrequirementsforleadershipandteamwork,enhancedrefreshertrainingforqualifiedseafarers,andtheintroductionofstandardsofcompetenceforthenewgradeofAbleSeafarerinboththedeckandenginedepartments.Therearealsonewcompetencetablesandtrainingrequirementsforpersonnelonoilandchemicaltankersandgascarriers.Importantly,the2010amendments
The‘ManilaAmendments’totheSTCWConvention
alsointroducemajorchangestoIMOregulationsconcerningseafarers’minimumresthours,whichareintendedtopreventfatigue.The2010ManilaamendmentswillenterintoforceinJanuary2012whencompanieswillberequiredtocomplywiththenewminimumresthourprovisionsforseafarers.Somegovernments,onanationalbasis,mayalsobegintoapplynewSTCWrequirements,suchasenhanced5yearlyrefreshertraining,orthemandatoryuseoftrainingrecordbooksfornewratingtrainees.FromJanuary2013,newseafarerscommencingtrainingwillberequiredtodosoinaccordancewiththenewtrainingandcompetencestandards.However,until2017governmentsmaycontinuetorenewandrevalidateexistingcertificatesinaccordancewithcurrentSTCWprovisionswhichappliedimmediatelypriorto1January2012.
Althoughnotadirectresponsibilityofcompanies,theindustrywillwishtoensurethatasmanygovernmentsaspossiblecomplywiththerevisedrequirementstoreporttoIMOtheactionsthathavebeentakentoimplementthenewSTCWstandards.Thiswillbenecessary,byJuly2013,ifgovernmentswishtomaintainaplaceontheIMO‘whitelist’ofnationsthathavedemonstratedcontinuingadherencetoSTCWstandards,soastoavoidportstatecontroldifficultiesfortheirships,orflagstaterecognitionproblemsforseafarersworkingonforeignshipstowhomtheyhaveissuedSTCWcertificates.ISFalsoanticipatestheremaybeaneedtoclarifytheinterpretationofhowsomeofthenewstandardsaretobeapplied,forexamplewithregardtohownewrefreshertrainingshouldbe
implemented,deliveredandassessedorwhenthenewsecuritytrainingrequirementsenterintoforce.
TheoverridingobjectiveofISF,anditsmembernationalshipowners’associations,isthatthestandardsrequiredbytheSTCWConvention,asamendedin2010,areputintoeffectassoonaspossible,andthatthehigheststandardsofseafarercompetencewillcontinuetobemaintainedworldwide.InMarch2011,ISFpublishedaneweditionofitsGuidelinesontheIMOSTCWConventiontoadviseshippingcompaniesandshipboardpersonneloftheirfundamentalobligationsasrequiredbythe‘Manilaamendments’.Aswellasprovidingadviceoncompliance,theGuidelinesgivebackgroundinformationonthephilosophyunderlyingthe‘competence-based’approachtotrainingwhichtheSTCWConventionseekstopromote.Fortherestof2011,ISFhasanambitiousprogrammeofrevisingitswidelyusedonboardtrainingrecordbookstotakeaccountoftheManilaamendments,startingwithtrainingbooksforthenewgradeofAbleSeafarer(deckandengine)andfollowedbytrainingrecordbooksfordeckandengineofficertrainees.
Employersshouldnowgenerallyhavefargreaterconfidenceinthevalidityofseafarers’certificates,regardlessofthecountryofissue.Thisisnottosaythatquestionsaboutthequalityoftraininginmanytraininginstituteshavebeeneradicatedcompletely.However,thereisnowaclearersensethatallseafarersworkinginternationallyarepartofthesameglobalprofession,inwhichtheparamountimportanceofsafetyoflifeatseaandtheprotectionofthemarineenvironmentisfarmorewidelyrecognised.
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KEY ISSUES IN 2011
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TheYearinReview
IMOMaritimeSafetyDevelopments
ThefollowingarejustafewexamplesofsomeofthemanycriticalsafetyissuesinwhichICSiscurrentlyinvolved,throughparticipationinthedetailedtechnicalworkofIMOanditsnumerouscommittees,andthedevelopmentandupdatingofindustrybestpractices.
LifeboatSafety
Itisanundisputedfactthatinrecentyearsmanyseafarershavebeenkilledorseriouslyinjuredduringlifeboatdrills.Therearethoughttobeinexcessof70differentreleasehook/mechanisms,manybeingofpoorandexcessivelycomplexdesign,constructedofmaterialsunsuitedforworkatseaandhavingunrealisticmaintenancerequirements.ICShasthereforebeenveryactiveineffortstoimprovelifeboatsafety,co-ordinatingtheworkofadedicatedIndustryLifeboatGroupcomprisingawiderangeofindustryorganisations.TheGrouphasbeensuccessfulinchallengingthebeliefthatpoormaintenanceistheprimarycauseofrecentaccidentsandhaspersuadedIMOtodevelopproposalstospecifycriteriaforsafereleasehookmechanisms,andtoamendtheInternationalLife-SavingAppliance(LSA)Codeaccordingly.
Inresponsetoindustryconcerns,IMOorganisedaspecialmeetingonlifeboatsafetywhichmetinOctober2010,andtheIndustryLifeBoatGroupcommissionedadetailedreportthatidentifieddeficiencieswithdraftIMOGuidelinesandproposedvariousamendments.Forexample,ICSandtheindustryidentifiedtheneedforhookstobeassessedasbeingstable
intheclosedposition,sothatintheeventofafailureofthecontrolreleaseorothercomponents,thehookmechanismwouldremainintheclosedpositionuntilpositiveactionistakenonthewatertocauseittoopen.Pleasingly,indirectresponsetoconcernexpressedbyICSandothers,theIMOMaritimeSafetyCommittee,inDecember2010,concludedthatdraftIMOGuidelinesonthisissuewerenotyetfitforpurposeandthatsubjecttofurtherdiscussionfinaladoptionshouldbedeferreduntilthenextMSCmeetinginMay2011.
ISMCode
ItisprobablynocoincidencethattheimplementationandenforcementoftheIMOInternationalSafetyManagement(ISM)Codehascoincidedwithadramaticimprovementinthesafetyrecordandenvironmentalperformanceoftheshippingindustry(seegraphsoverleaf),whichisallthemoreimpressivegiventhesubsequentgrowthinthesizeoftheworldfleetsinceitsadoption.However,theessentialpurposeoftheISMCodeistoencourageacommitmenttocontinuousimprovementandtheeradicationofbehaviouralcomplacency.
InJuly2010,thelatestamendmentstotheISMCodeenteredintoforce.Anticipatingthesechanges,andinordertotakeaccountofotherexperiencegainedsincetheISMCodefirstbecomemandatory,ICSandISFpublishedaneweditionoftheirdefinitiveGuidelinesontheApplicationoftheISMCode.
ThefirsteditionoftheICS/ISFGuidelines,publishedinthe1990s,playeditspartinthesuccessfuldeliveryofamoresystematicapproach
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tosafetymanagementandpollutionprevention,whichisnowappliedthroughouttheindustry.The2010editioncontainsexpandedadviceonriskmanagementandontheoperationofagenuine‘safetyculture’,inorderthatcompaniescanfulfilthespiritaswellastheletteroftheISMCode’srequirements.
TheunderlyingprincipleofISMistohelpachievetheultimategoalofzeroaccidentsandzeropollution.ItisgreatlyhopedthattheneweditionoftheICS/ISFGuidelines-thousandsofcopiesofwhicharealreadybeingused
-willcontributetothefulfilmentofthisvitalobjective.
TankerSafety
ICSremainsengagedincontinuingdiscussionsontheextensionofthepracticeof‘inerting’cargotankatmospheres.ICSfullysupportsproposalstoamendSOLAStoprovidefortheapplicationofinertgas(IG)tonewoiltankersoflessthan20,000dwtandtonewchemicaltankers.Itshouldbenoted,however,thatIMOhasdecidedthatthepossibleextensionofnewmeasurestoexistingoiltankersoflessthan20,000dwtandtoexistingchemicaltankerswillonlybeconsideredinlightofexperiencegainedfollowingintroductionofIGonnewships.InconjunctionwiththeInternationalParcelTankers’Association(IPTA),ICShashighlightedtheenvironmentalimpactofoperatingIGequipment,andhasindicatedthatacarriagerequirementforsub5,000dwtchemicaltankerscouldbeproblematic.
IMOisexpectedtofinalisetheamendedregulationsin2012,intimefortheissuetobeaddressedin
TotalLosses1994-2010bynumberofvessels(over500GT)Source:IUMI
200
175
150
125
100
75
50
‘94 ‘95 ‘96 ‘97 ’98 ‘99 ‘00 ‘01 ‘02 ‘03 ’04 ’05 ‘06 ‘07 ‘08 ‘09 ‘10
30
25
20
15
10
5
0
Averagenumberofmajoroilspillsperyear(over700tonnes)Source:ITOPF
1970-1979 1980-1989 1990-1999 2000-2010
25.2 9.3 7.8 3.4
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thenexteditionoftheICSChemicalTankerSafetyGuide,whichisbeingrevisedinparallel.
ShipbuildingStandards
AmajorpreoccupationforICSisthemaintenanceofhighstandardsofshipconstruction.InMay2010,theIMOMaritimeSafetyCommitteeadoptedimportantamendmentstotheSOLASConventionfortheimplementationofnew‘Goal-basedStandards’(GBS)fortheconstructionofbulkcarriersandoiltankersof150moroverinlength.ThiswastheculminationofseveralyearsofnegotiationsinwhichICShasbeencloselyinvolved.Asaconsequence,itisexpectedthatshipbuildingstandardswillhavebeentakenforwardsothatwithanappropriatelevelofmaintenance,andadequatemarginsforcorrosion,futureshipswillbeconstructedsothattheyremain‘fitforpurpose’throughouttheirtypical25yearlifespans.ThephilosophyunderlyingGoal-basedStandardsisalsoexpectedtohaveimplicationsforthefuturedevelopmentofotherIMOstandards,suchasthoseforshipboardequipment.Someimportantquestionsstillneedtoberesolved,suchaswhoshouldpayfortheproposedGBSverificationprocess.Decisionsalsoneedtobetakenwithregardtoachievinganappropriatebalancebetweentheavailabilityoftechnicalinformationthatcanbeaccessedonboardavessel,andthelegitimateprotectionofintellectualpropertyrightsofshipyardsandclassificationsocieties.
InTokyo,inOctober2010,theChairmanledanICSdelegationtothelatestroundof‘Tripartite’discussionsaboutshipbuildingstandardswithrepresentativeorganisationsof
shipowners,classificationsocietiesandshipyards.TopicsconsideredincludedmeasurestoreduceCO2emissions,implementationoftheIMOBallastWaterManagementandShipRecyclingConventions,crewaccommodationrequirementsundertheILOMaritimeLabourConvention,andthereviewbeingundertakenbytheInternationalAssociationofClassificationSocieties(IACS)ofitsCommonStructuralRules(CSRs)-whicharecloselyrelatedtoIMOGoal-basedStandards.
ICSisnowparticipatinginacrossindustryinitiative,co-ordinatedbyIACS,toprovideguidanceontheharmonisationandamendmentoftheCSRsforbulkcarriersandtankers.Theintentionistoprovideasinglesetofrulesoncommonaspectsofhullstructuredesign,supplementedbydedicatedsectionsonthespecificrequirementsforthesetwomajorshiptypes.
SafeNavigation
Whilewelcomingthepotentialofe-navigationforimprovingnavigationalsafety,ICScontinuestoemphasisetheneedfora‘userfocused’approach,sothate-navigationisnotdrivensolelybyideasfromequipmentmanufacturersortheavailabilityofnewtechnology.Inparticular,ICSiscurrentlyengagedindetaileddiscussionsatIMOabouttheimplementationofitse-navigationstrategy,includinguserneedsandservices,andthetechnicalspecificationsofvariousshipboarddevices.
IndiscussionswiththeInternationalAssociationofMarineAidstoNavigationandLightHouseAuthorities(IALA),ICSisseekingtoensurethatnationalauthoritieswill
notregardVirtualAidstoNavigationasacheapermeansofprovidingstatutoryservices.‘VAtoN’mustbetreatedasacomplementratherthanareplacementtophysicalaidstonavigation.
AnotherimportantissueconcernsarrangementsfortheintroductionbyJuly2012ofthenewmandatoryIMOrequirementsforECDIS(ElectronicChartDisplayInformationSystems),whichICShaslongsupportedprovidedthattheindustry’sdefinitionof“sufficientElectronicNavigationChart(ENC)availability”canbemetbeforethephased-incarriagerequirementbecomeseffective.ICSiscloselymonitoringprogressattheInternationalHydrographicOrganization(IHO)towardsmeetingtheENCcoveragenecessarytomakethemandatorycarriageofECDISviable.ICSisalsoparticipatinginIHOworkgroupsthatareconsideringtechnicalconcernsrelatingtopracticalECDISoperationandtheneedforeffectivetraining.
StabilityIssues
ThereareanumberofcomplexstabilityissueswhichcontinuetonecessitatedetailedICSparticipationatIMO.Theseinclude:aproposednewgenerationofintactstabilitystandardsaddressingdynamicfailuremodessuchassurfridingandbroaching;thedevelopmentofguidancefortheinitialapprovaloftankerdamagestabilitydataandoperationalverificationofcompliancewithIMOdamagestabilityrequirements.ICSisalsoengagedinongoingworkonrevisionstothestabilityregulationsinSOLAS,andcontinuingdiscussionsrelatedtothetreatmentofwaterondeckwhenassessingthestabilityofro-ropassengervessels.
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OverloadingofContainers
ICSandtheWorldShippingCouncil(WSC)havedevelopedSafeTransportofContainersbySea,GuidelinesonIndustryBestPractices,withaviewtominimisingthedangerstocontainershipsandtheircrews.TheGuidelineshavebeenhighlyregardedand,in2010,IMOrecommendedthatflagstatesshouldmakethemacarriagerequirement.Todate,however,theGuidelineshavesofarhadlittlediscernibleeffectonreducingtheincidenceofshippersprovidingincorrectcontainerweights,oronensuringthatmarineterminalsverifytheweightofloadedcontainersagainstthemanifest.
Intheabsenceofalegalrequirementthatmarineterminaloperatorsperformaweighingfunctionforallloadedcontainersbeforevesselloading,itseemslikelythatasubstantialnumberofcontainerswillcontinuetogounweighedandthatoverweightcontainerswillcontinuetoposearisktosafeshipoperations,toships’crew,andtootherpersonnelinthetransportchain.
InDecember2010,ICSandWSCproposed,inastatementtotheIMOMaritimeSafetyCommittee,thatIMOshouldestablishauniversalinternationalregulatoryrequirementthatexportcargocontainersmustbeweighedbythemarineterminaluponreceiptandbeforevesselloading,andthattheactualcontainerweightsbemadeavailabletothevesseloperatorandusedforvesselstowageplanning.Itishopedthatdetailedproposalswillbeprogressedin2011.
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PollutionPrevention
ApartfromimportantworkaddressingCO2andotheratmosphericemissions,awiderangeofmajorenvironmentalissuesremainonICS’sagenda,andalargeproportionofresourcesisdedicatedtoparticipatingintheongoingworkofnumerousIMOCommitteesandworkinggroupswhichareconstantlyupdatingIMOregulationsandtechnicalcodes.
TransitiontoLowSulphurFuel
In2008,IMOadoptedradicalamendmentstoMARPOLAnnexVIgoverningatmosphericpollution,whichformostshipswillultimatelyrequiretheuseofmoreexpensive
theenvironment.TogetherwiththeEuropeanCommunityShipowners’Associations(ECSA),ICShasthereforeendorsedamajorstudydevelopedbyconsultants(theENTECstudy)commissionedbynorthwestEuropeannationalassociations,whichexplainstheimpactoftheimplementationofMARPOLAnnexVIintheBalticandtheNorthSeaandtheenvironmentalconsequencesofthepredictedmodalshift.ICShassubmittedthisreporttotheIMOMarineEnvironmentProtectionCommitteeforinformation.AttheIMOMEPCmeetinginSeptember2010,governmentsagreedwithanICSproposalthatearlyconsiderationshouldbegiventoareviewoftheavailabilityoflowsulphurmarinefuels.WhilethereisaformalmechanismintheIMOagreementtocompleteareviewby2018ofprogressmadetowardsmeetingthedemandfor0.5%sulphurfuelthatismeanttobeusedoutsideofECAsby2020,ICShasbeenpressingIMOtostartworknowondevelopingamethodologythatcanconsiderallofthemajorchangesrequiredbythenewregime.Encouragingly,IMOhasestablishedacorrespondencegroupforthispurpose,whichisbeingledbytheUnitedStatesandwhichwillreporttotheMEPCinJuly2011.ICShassuggestedtotheGroupthatIMOshouldlookattheavailabilityof0.1%sulphurfuelwithinECAs,inordertoverifythemethodologyforthe2018reviewof0.5%fuelthatisrequiredbyMARPOL.
BallastWaterManagement
FollowinganincreaseinthenumberofratificationsbygovernmentsoftheIMOBallastWaterManagementConventionitispossiblethatitwillatlastenterintoforceduring2011.However,therearestill
lowsulphurfuels.Atthetime,ICSwelcomedtheIMOagreementasanacceptablecompromise,althoughthiswasinthecontextoftheevenmoredraconianproposalsthatwerethenbeingproposedbymanygovernmentsand,mostimportantly,thepublicthreatbytheEuropeanUniontoimposeanimmediateregionalsolutionifIMOwasunabletodeliveraglobalagreement.Buttheimplementationofthenewrequirementswillbefarfromeasy,andICSremainsinclosedialoguewithoilindustryanalystsabouttheprogressthatisbeingmadetoensurethatthedemandfromshippingfordistillatefuelcanbemet.
PerhapsthemostcontroversialrequirementinMARPOLAnnexVIconcernstheneedforshipsoperatinginEmissionControlAreas(ECAs)toburnfuelwithnomorethan0.1%sulphurasfrom2015.Atpresent,theBaltic,theNorthSea,andtheentirewestandeastcoastsoftheUSandCanadahavebeendesignatedasECAsbyIMO,attherequestofthegovernmentsconcerned.Theconsiderabletaskfacingtheoilrefiners,whichmustexpandtheproductionoflowsulphurfueltomeetthenewdemand,iscomplicatedbythefactitisnotyetfullyknownwhichadditionalareasmaybedesignatedasECAs.ItisstillunknowniforwhenEUnationswillsubmitapplicationsforECAscoveringtheAtlanticcoastortheMediterranean/BlackSea,orwhetherothercoastalstatesinmajorpopulationcentreshaveplanstofollowsuitbefore2015.
Recentstudiessuggestthatthemodalshifttolandtransportthatwillprobablyresultfromtheapplicationofthe0.1%limitintheBalticECAcouldgreatlydamagelocalshortseashippingwhilebeingdetrimentalto
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genuineconcernsaboutavailabilityofequipment,retrofittingonexistingships,andthepresentlimitedpossibilitiesfortreatmentsystemsforlargerships.Thatsaid,someprogressisbeingmadetoapprovevariousballastwatertreatmentsystemsasanalternativetoballastwaterexchangeatsea,inordertopreventtheunwantedtransferofmarinemicro-organismswhichcandamagelocalecosystems.
Completionofthisworkislongoverduegiventhatnewshipsarealreadymeanttobeconstructedwiththeseexpensivenewtreatmentsystems.ICShascontributedtothisworkandcontinuestoprovideaconsultanttotheGESAMP(JointGroupofExpertsontheScientificAspectsofMarineEnvironmentProtection)BallastWaterWorkingGroupthathasbeenconductingmuchofthedetailedassessmentofthenewequipment.Meanwhile,ICScontinuestoencouragefullco-operationwithlocalballastwaterexchangerequirementswhereveritissafeforshipstodoso.
Disappointingly,theUnitedStatesCongress,andindividualUSStates,arestillconsideringtheapplicationofa‘killstandard’forremovingunwantedorganismsfromballastwaterthatis100timeshigherthanthatestablishedbyIMO,forwhichthetreatmentsystemsrequiredsimplydonotexist.
Garbage
ICSisfullyengagedindiscussionstoamendMARPOLAnnexVconcerninggarbage,includingsuggestionsthatthedisposalofanygarbageatseashouldbeprohibited.
Thecurrentbanon,forexample,the
disposalofplasticsisfullysupported,andrecentevidencesuggeststhattheproportionoflitterthatoriginatesfromshipshasreducedsignificantly.However,theretentionofotherwastesonboard,suchasfood,hastobebalancedagainsthealthissuesandthepracticalitiesofstoringandremovingsuchwastesashoregiventheycauselittle,ifany,environmentalharmwhendisposedofatsea.
Moregenerallywithregardtoportreceptionfacilities,whicharestillfeltbytheindustrytobeinadequateintermsofnumber,accessibilityandcost,discussionsaretakingplaceatIMOaboutthepossibilityofthesebeingprovidedonaregionalbasis.
ShipRecycling
ICScontinuestopromotetheearlyratificationoftheIMOConventionfortheSafeandEnvironmentallySoundRecyclingofShips,throughtheinter-industryGuidelinesonTransitionalMeasuresforShipownersSellingShipsforRecycling.In2010,thousandsofcopiesoftheGuidelinesweredistributed,whicharespecificallyintendedtohelpimprovesafetyandenvironmentalconditionsinrecyclingyardsinadvanceoftheentryintoforceofthenewConvention.
TheshippingindustryGuidelinesreflectthenew‘cradletograve’responsibilitiesofshipownersfromthetimeofaship’sconstructiontoitsfinaldemolition,andexplainthevariousactionsthatwillberequired,andwhichshouldbeapprovedbyflagstatesandauthoritiesinshiprecyclingnations.Inparticular,theGuidelinesencouragethepreparationandmaintenanceofinventoriesofhazardousmaterials.Theyalsorecommend,inadvanceofthe
Conventioncomingintoforce,thatshipownersendeavourtoselltheirredundantshipsonlytothoserecyclingfacilitiesthatmeetthenewIMOstandards.Itisverymuchhopedthatadherencebyshipownerstothe‘TransitionalMeasures’willbetakenasasignofgoodfaithonthepartoftheshippingindustry.
ICShasbeenco-operatinginanambitiousIMOprogrammetopromotethenewConvention,aswellastheindustryGuidelines.TheIMOConventionrepresentsagreementbetweenthosenationsseekingthehighestpossiblestandardsandthosedevelopingcountriesinwhichmostoftherecyclingyardsarelocated.Regrettably,theConventionisstillnotfullysupportedbysomeenvironmentalorganisationswhichseemtobelievethatdevelopingnationsdonothavetheabilitytoremovehazardousmaterialssafelyfromredundantships,notwithstandingthefactthatalargenumberofnewshipsarenowconstructedinsuchnations.
OtherEnvironmentalIssues
ICSisrespondingtoothernewissuesontheIMOworkprogramme.Thisincludesconsiderationofmeasurestoreduce‘biofouling’,wherebyunwantedorganismsaretransportedaroundtheworldonship’shullsin‘niche’areas.AlsoonIMO’sagendaisthedevelopmentofmeasurestoprotectwhalesfromcollisionwithships,andthetheoreticaleffectsofradiatednoiseintotheocean.Ithasbeenidentifiedthatthemajorcomponentofsuchnoiseiscavitation(bubblesformingonpropellerbladesurfaces)anditwouldseemappropriateforIMOtodevelopguidanceonitsreduction,whichwouldalsohelpimprovetheefficiencyofships.
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SupplyDemandGapforOfficersDemandandSupplyareshownasIndices:Supplyin2010=100
‘Cold’ +120Scenario 100
0
Benchmark +120
100
0
‘Hot’ +120Scenario 100
0
Demand
Demand
Supply
Supply
Supply
DemandSupply
Demand
-2%
-2%
-2%
-2%
+2%
-1%
-9%
-5%
-11%
2010 2015 2020
EmploymentAffairs
UndertheseparateidentityoftheInternationalShippingFederation(ISF),ICSisalsotheleadinginternationalemployers’organisationforshipoperatorsconcernedwithlabouraffairs,manningandtrainingissues.
ManpowerSupply
Astheindustryemergesfromtheeconomicdownturn,ISFhasbeenkeentoemphasisetheimportanceofshippingcompaniescontinuingtotrainsufficientnumbersofnewships’officersforthefuture.Attheendof2010,inco-operationwithBIMCO,ISFpublishedtheresultsofthelatestandmostcomprehensivestudytodateoftheworldwidesupplyanddemandforseafarers,whichhasbeenconductedasaservicetotheindustry,atfiveyearintervals,since1990.Theworldwidesupplyofseafarersin2010wasestimatedtobe624,000officersand747,000ratingsandreflectssignificantincreasesinseafarersupplyinsomecountries,notablyinChina,IndiaandthePhilippines,aswellasinseveralEuropeannations.
Whiletheevidencesuggeststhatthesupplyanddemandforratingsaremoreorlessbalanced,thereisstillamodestshortageofofficersoverall(about2%).Thisisparticularlyfeltforspecialistshiptypessuchastankersandoffshoresupportvessels.Encouragingly,however,notwithstandingthechallengingtradingconditions,levelsoftrainingofnewentrantsseemtohavebeenmaintainedorincreasedinmanycountries.
Theaggregatesupply/demandbalanceisperhapsnotsurprisinggiventhe
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sharpcontractioninthedemandforseatransportin2009combinedwithsignificantgrowthintotalseafarernumbers.However,whilethedatasuggeststhereiscurrentlynotaseriousshortageproblemforofficersinaggregate,thisdoesnotofcoursemeanthatindividualshippingcompaniesarenotexperiencingseriousrecruitmentproblems.Thereisparticularconcernoverthecurrentandfutureavailabilityofseniormanagementlevelofficers,especiallyengineers,fromtheFarEastandtheIndianSub-Continent.Generally,however,therearefewsupplydifficultiesreportedforratings.
The2010Updatepresentsvariousglobalsupply/demandbalancescenariosforthenextdecade.The
“benchmark”scenarioassumesamodestincreaseinthenumberofshipsintheworldfleetof2.3%perannum(verysimilartotheaveragegrowthrateofthepastdecade).Manninglevelsareassumedtodeclineslightlyonaverage,andbackupratiosarecautiouslyassumedtobestable.Onthesupplyside,itisassumedthatrecruitmentrateswillcontinueatroughlythesamerateasduringthepreviousdecade,butwastagerates(i.e.netlossratesfromtheindustry)willbehigherbyaround1%perannum.Despitethesequiteconservativeassumptions,thecurrentmoderateofficershortageisexpectedtopersist,unlessmaritimetrainingisfurtherincreased,and/ormeasuresaretakentoreducewastagerates.However,ifgeneraleconomicconditionscontinuetoimprove,therecouldbequitesevereproblems.
ThelatestupdateproducedbyISFandBIMCOseekstohighlightthattheindustryislikelytofaceachallengingfutureforcrewing.Therearemany
uncertainties,buttheresultsindicatethattheindustrywillmostprobablyfaceacontinuingtightlabourmarket,withrecurrentshortagesforsomeofficers,particularlyifshippingmarketsrecover.
Unlessmeasuresaretakentoensureacontinuedrapidgrowthinqualifiedseafarernumbers,especiallyforofficers,and/ortoreducewastagefromtheindustry,existingshortagesarelikelytointensifyoverthenextdecade.Supplyappearslikelytoincreaseinmanycountries,butthepositivetrendthathasbeenestablishedfortrainingandrecruitmentoverthepastfewyearsmustcontinuetoensureasuitablefuturepoolofqualifiedseafarers.
Itisimportanttostressthattheindustryrequireswellqualifiedandhighcalibreseafarerscapableofadaptingtochangeandhandlingthewiderangeoftasksnowrequiredofthem.Butanytrainingprogrammesprovidedmustensurequalityisnotcompromisedinthequestforincreasingquantity.
MaritimeLabourConvention
TheGenevabasedInternationalLabourOrganization(ILO)adoptedtheILOMaritimeLabourConvention(MLC)in2006.Thewiderangeofmatterscoveredincludesseafarers’contractualarrangements,responsibilitiesofmanningagencies,workinghours,healthandsafety,crewaccommodation,andmedicalandcateringstandards.TheILOMLCwillbesubjecttoPortStateControlaswellasflagstateinspection.Followingratificationbyagrowingnumberofflagstates,includingthemajoropenregisters,theMLCisexpectedtoenterintoforcegloballywithinthenext
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coupleofyears(therequiredtonnagethresholdhasalreadybeenachieved).Companiesthereforeneedtopreparetoensurefullimplementationandcompliance.
AsanofficialILOsocialpartner,undertheILOtripartiteprocess,ISFwasresponsiblefornegotiatingthetextoftheConventiononbehalfofmaritimeemployerswithgovernments,andwithseafarers’tradeunionsrepresentedbytheInternationalTransportWorkers’Federation(ITF).ISFthereforehasaspecialobligationtohelptoensuretheConvention’ssmoothimplementation.
AnimportantaspectoftheConvention’senforcementwillbetheissuancebyflagadministrationsofMaritimeLabourCertificates,usuallyfollowinginspectionbyarecognisedorganisationsuchasaclassificationsociety,andaseparaterequirementforshipstomaintainaDeclarationofMaritimeLabourCompliance.However,concernhasarisenoverthewayinwhichsomeclassificationsocietiesarechoosingtointerprettherequirements,includingthoseconcerningcrewaccommodation,inamannergoingbeyondtheILOConvention.ISFisthereforecurrentlyaddressingtheseissueswithclasssocietiesinconjunctionwithIACS.
InSeptember2010,inGeneva,ISFmembersrepresentedemployers,alongsideunionsandgovernments,ataspecialPreparatoryTripartiteCommitteeontheMLC,whichaddressedoutstandingquestionsonimplementationinadvanceoftheConventionenteringinforce,andproceduresforagreeingfutureamendments.Thelattershouldbeimportantgiventheagreementreachedin2009forILOtodevelopsomeadditionalbindinginternational
regulations,atsomepointinthefuture.Thesewilladdressthepossibilityofcrewabandonmentforthesmallnumberofcaseswhennormalarrangementsforrepatriationfail,forexamplefollowingabankruptcy,andtorequirefinancialsecurityfromshipownersforcrewclaimsarisingfromfatalityorpersonalinjury.Duringthecourseof2011,ISFintendstopublisharevisededitionofitsGuidetotheILOMaritimeLabourConvention,whichwasinitiallypublishedshortlyaftertheConventionwasfirstadopted.AswellastakingaccountoftheILOGuidelinesonenforcementadoptedin2009,theneweditionoftheISFGuidewillalsohighlighttheoverlapbetweentheenforcementofexistingISMCoderequirementsandthoseoftheILOMLC.ItisexpectedthatsomeAdministrationsmayusetheexistenceofavalidSafetyManagementCertificateissuedundertheISMCodeasevidenceofcompliancewithseveralofthoseitemswhicharerequiredbytheILOMLC.Nevertheless,manyotherILOMLCrequirementsarenotcoveredbyISM,andwillthereforenecessitateaseparateinspectionoftheship,althoughitisstronglyhopedthatsomeflagstates,orclassificationsocietiesactingontheirbehalf,willpermitshipboardISMandILOMLCinspectionstobeconductedinparallel.
WorkHourRegulations
AspartofthenegotiationsprecedingtheadoptionofamendmentstotheIMOSTCWConvention,finalisedinManilainJune2010,ISFwasdeeplyinvolvedindiscussionsatIMOonhowtoharmoniseseafarers’minimumresthourrequirementscontainedinChapterVIIIofSTCWwiththeworkhourrequirementsadoptedbytheInternationalLabourOrganization
(ILO).TheselimitsarecurrentlyenforcedasILOConvention180,butwillformpartofthenewILOMaritimeLabourConventionregimeonceitentersintoforce.
TheregimesadoptedbyIMOandILOweredevelopedforverydifferentpurposes.STCWprescribesminimumresthoursfromthesafetyperspective,whiletheILOConventionsalsotakeaccountofsocialissues,suchasthepointatwhichadditionalpaymentsforovertimeshouldnormallybemadeandtheextenttowhichworkhoursmaybesubjecttoagreementbetweenemployersandunionsincollectivebargainingagreements-issuesoutsidetheremitofIMO.
ISFissatisfiedthatchangestominimumresthoursagreedbyIMOarefullycompatiblewiththeILOrequirements,althoughinpracticetheyaresomewhatstricter.Inreality,giventhattheSTCWamendmentswillbeenforcedmorequickly,theyarelikelytobecomethedefaultregimeforPortStateControlinspectors.TherevisedSTCWConventiontakesfullaccountofavitalaspectofthecurrentIMOandILOregimes,bothofwhichpermitoccasionaldeviationfromthenormalminimumresthoursstipulated,providedthatsufficientsafeguardsareinplaceandthatcompensatoryrestisprovided-somethingwhichiscrucialtosafeandefficientshipoperations.Inparticular,theManilaamendmentsacknowledgethepracticalaspectsofshipoperations-includingshortseashipping-especiallywhenshipsareundergoingpeakworkoperations,andpreservesomeflexibilityfortheseafarers,shipsandemployers.However(withtheexceptionofemergencies)from2012seafarerswillbeprohibitedfromeverbeingondutyformorethan14hourswithinany24
SummaryofNewSTCWRestHourRequirements
The2010amendmentstoSTCWintroducestricterresthourrequirementsthanthosewhichcurrentlyapply.Inparticular:
-Theminimumrestinany7dayperiodis77hoursratherthan70hours;-Theflexibilitypermittedbythe‘2dayderogation’ruleunderSTCW95hasbeenremoved,i.e.seafarersmustalwayshave10hoursrestinany24hourperiodwithnoexceptions(exceptduringanemergency);
-Maintenanceofindividualrecordsofseafarers’resthoursismandatory;-Theresthourlimitsapplytomostseafarersonboard,includingmasters,andnotjustwatchkeepers.
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hourperiod.
Meanwhile,alargenumberofcompaniesarenowensuringthattheyaremaintainingaccuraterecordsofthehoursofworkandrestonboardshipbyusingtheISFWatchkeepersoftware,which,aswellasproducingindividualseafarer’srecordsintheformatrecommendedbyILOandIMO,allowscompaniesandcrewstoensurethattheycomplyfullywithboththeILOandIMOlimits.AnupgradedWatchkeeperVersion3.0,whichallowsaccounttobetakenofthenewIMOSTCWresthourlimits,waslaunchedintheAutumnof2010.
ILOMinimumWage
Theshippingindustryisprobablyuniqueinthatithasamechanismforrecommendingminimumacceptableinternationalwagerates.ISFistheco-ordinatoroftheEmployers’GroupoftheILOJointMaritimeCommission(JMC)whichisresponsibleforagreeingchangestotheILOMinimumWageforAbleSeafarers.TheInternationalTransportWorker’sFederation(ITF)co-ordinatestheseafarers’unionrepresentatives.UnlikeotherILOinstitutions,theJMCisbipartiteanddoesnotinvolvegovernments.
Atthetimeofwriting,theJointMaritimeCommitteeismeetinginGenevainordertoreviewtherecommendedILOminimumwhichin2011standsatUS$545amonthbasicwageforanAbleSeafarer,afigurewhichcameintoeffectin2009inlinewithapreviousagreedscheduleofincreases.
Inviewofthecontinuinguncertaintycreatedbytheglobaleconomiccrisis,ISFhadpreviouslyexplainedtoITFthatemployerssimplycould
notagreetoanyimmediatefurtherincreasetotheILOminimum.Whilemanyunionsrecognisedtheneedtohelpsafeguardemploymentforseafarers,someunionswereclearlydisappointedbythisresponse.ISFhasthereforeagreedtotheconveningofameetingoftheILOJointMaritimeCommission,inApril2011,inordertoresumeformaldiscussions.
ISFremainsstronglycommittedtotheprincipleoftheILOMinimumWagerecommendationwhichisnowreferencedinthenewMaritimeLabourConvention,althoughithasinfactexistedforover50years.Whileitisonlyrecommendatory,andnotdirectlyrelevanttootherseafarergrades,ithasastrongmoralauthorityandisparticularlyimportantforemployersindevelopingcountries.TheILOMinimumWagealsoinfluencesmanycollectivebargainingagreements,includingthoseenforcedbyITF,andissometimesreferredtoinlegalrulings.
TheILOminimumwageissubstantiallyhigherthanthatpaidforcomparativeworkashoreindevelopingcountries.Moreover,theactualminimumwageissignificantlyhigher,typicallyperhaps50%more,onceovertimehours(fixedataminimumoftimeandaquarter)andothermandatoryrequirements,suchaspaymentsforleaveentitlements,aretakenintoaccount.Itisalsoonlyaminimum-mostratingsfromdevelopingcountriesreceivesignificantlymore,whileofficersreceivesubstantiallymore,withdifferentialsbetweenofficersfromOECDanddevelopingcountriescontinuingtonarrow.
TheYearoftheSeafarer
2010wasdesignatedbyIMOasthe‘YearoftheSeafarer’.Astheprincipalinternationalrepresentativeorganisationofmaritimeemployers,ISFhadaspecialinterestinusingthiswelcomeopportunitytohighlighttheimportanceofthisuniqueandhighlyskilledprofession,andencouragingduerecognitionofthecriticalworkperformedbytheworld’soneandathirdmillionseafarers.InconjunctionwithIMOWorldMaritimeDay,inSeptember2010,ISFproducedaspecialbrochurewhichhighlightedissuesrelevanttotheemploymentofseafarersofwhichgovernmentsandshippingcompaniesneedtobemademorefullyaware.
Thecommitmentandimportanceofgoodshorebasedmanagementcannotbeoverstated.However,itisships’crewswhoultimatelyensurethatshippingissafe,cleanandefficient,andthatrawmaterialsandfinishedgoodsaresafelytransportedovertensofthousandsofmiles.Itis,ofcourse,aremarkablycosmopolitanprofessionandbeingapartoftheshippingindustryisakintobeingamemberofaspecialinternationalclub.Thatisnottosaythatacareeratseameansalifetimeatsea,andmanyships’officerselecttomovetoexcellentopportunitiesintheshorebasedindustry.Nordoesitmeanthattherearenoaspectsofseafarers’employmentwhichcannotbeimproved,whichiswhyISFispressingfortheILOMaritimeLabourConvention,governingseafarers’employmentstandards,toenterintoforceassoonaspossible.
TheYearoftheSeafarerprovidedanespeciallyhelpfulplatformonwhichIMOcoulddevelopits‘GotoSea!’campaign,givinggreaterimpetusto
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thepromotionofmaritimecareers.Asacontributiontothecampaign,andwithIMOsupportforforeignlanguagetranslation,ISFproducedashortDVDfilm-‘CareersinInternationalShipping’.ThousandsofcopiesofthefilmweredistributedbyISFworldwide,freeofcharge,tohelpbringthebenefitsandattractionsofacareeratseatotheattentionofyoungpeople,especiallyatschoolsandcareersevents.ThefilmcanalsobeseenonYouTube.
Acareeratseaisrewarding,andhasfeaturesthatarehardtoappreciatebythosewhohaveonlyeverworkedashore.Itisalsogenerallywellrewardedfinancially.However,asaprofessionitisnotwithoutitschallenges.Theseawillalwaysbeanenvironmentinvolvingadegreeofphysicalrisk.Whiletheserisksarecarefullymanaged,andthesafetyrecordoftheindustryhasimproveddramaticallyinthelastfewdecades,dangeroussituationscanoccasionallystilloccur.ISFhasthereforebeenmosthonouredtoprovideoneofthejudgestoIMO’sBraveryatSeaawards.Regrettably,seafaringasaprofessioncanentailotherunwelcomechallenges,suchasthetrendinsomecountriestowardstheunwarrantedcriminalisationofseafarersfollowingunintentionalpollution,amatterelaborateduponelsewhereinthisReview.
TheIMOYearoftheSeafarerwascertainlywelltimed.InJune2010,ataDiplomaticConferenceinthePhilippines,IMOadoptedsubstantialamendmentstotheSTCWConventiongoverningseafarers’trainingstandards.ISFisconfidentthatthechangesagreedbygovernmentswillfurtherenhancetheseafaringprofessionand,mostimportantly,contributetomakingitevensafer.Another
outcomeoftheSTCWConferencewasthat25June(thedayonwhichthe‘Manilaamendments’wereadopted)willhenceforthbedesignatedastheIMODayoftheSeafarer,whichwillbecelebratedforthefirsttimein2011.
‘DeepwaterHorizon’Incident
Althoughnotdirectlyconnectedtoshipping,oneofthedefiningmaritimeeventsof2010wastheexplosiononthe‘DeepwaterHorizon’offshoredrillingriginAprilwhich,aswellascausinglossoflife,resultedinmajorpollutionintheGulfofMexicoandsignificantattendantdamagetothelocaleconomy.Thetrulyseriousconsequencesofthespillgreweverworseastheownerofthewell,theoilcompany,BP,hadtoresorttoseveralattemptsandnewmethodologiestocaptheflow,whichcontinuedthroughseveralmonths.Intherunuptothemid-termCongressionalelections,thedisasterbecameahighlevelpoliticalissue,dominatingtheUSmainstreammediathroughoutmuchofthesummer,inapressfrenzythatsometimesborderedonthexenophobic.
VariousunwelcomelegislativeproposalswereconsideredbyCongressintheimmediateaftermathoftheincident,andICShadtomakeanimportantsubmissiontotheUSCongressexpressingseriousconcernaboutproposalstoamendtheUSOilPollutionAct(OPA90).Thesewouldhavedramaticallyincreasedpollutionliabilitiesforalltypesofship,orevenremovedlimitationofliabilitycompletely,potentiallymakingitimpossibleforresponsibleshipoperatorstotradetotheUnitedStatessincetheywouldhavebeenunabletoobtaininsurance.
Incloseco-operation,amongothers,withtheChamberofShippingofAmerica,theWorldShippingCouncil,andtheCruiseLinesInternationalAssociation,ICSparticipatedinawiderangingindustrycoalitionwhichmadenumeroussubmissionstobothHousesofCongressonissuesrelatingtoliabilityforpollutionandpersonalinjury,withpotentiallyhugefinancialimplicationsforshipowners.Inparticular,therewasalsogreatindustryconcernaboutproposalstoamendtheDeathontheHighSeasAct,toallowdamageawardsfornon-pecuniarylossesandpermitclaimstobeadjudicatedbeforeajury.
WhileacknowledgingtheneedforapoliticalresponsetothedisasterintheUSGulf,ICSemphasisedthatOPA90hasworkedextremelywellinensuringthatvictimsofanypollutioncausedbyshipshavebeenadequatelyandpromptlycompensated,andthatshippingisanentirelydifferentindustrytooilproduction.Theargumentsbytheindustrywhich,withICSencouragement,werealsosupportedbytheConsultativeShippingGroupofgovernments-wereacknowledgedwithinCongress,andthelatestlegislationbeingconsideredmaintainstheconceptoflimitationforshipping.
ICSalsomadeitsowninterventionsexpressingconcernabouttheprotectionistagendaapparentlyunderlyingproposalsforthe‘Americanization’oftheUSoffshoresupportvesselindustry,althoughforthemomentatleasttheseappeartohavebeenwithdrawn.
Intheevent,CongresswasunabletocompleteitsworkonthesefilesbeforeafreshCongresswasconvenedtoreflecttheoutcomeoftheelections
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inNovember.Bythistime,however,theoilwellhadbeensuccessfullycapped,removingmuchofthepoliticalpressurethathadexistedintheimmediateaftermathofthecatastrophe.
Insummary,thecurrentstructureforvesselliabilityforoilpollutiondamageisnowexpectedtoberetained,althoughpresentliabilitylimitsmaywellbeincreased.However,thecrucialdistinctionbetweenoffshoreoilexplorationandmaritimeoiltransportationnowappearstobegenerallyrecognisedbyUSpolicymakers.
USDevelopments
Greaterfocuscontinuestobegivenwithinthe
UnitedStatestoenvironmentalrulesthatwillimpactonshipping,whiletherehasbeenlittlerelaxationinthepropensityofindividualUSStatestoadoptlocalmaritimerulesatvariancetobothFederalandIMOrequirements.
MostimportantisthedecisionbytheUSEnvironmentalProtectionAgency(EPA)todesignatetheareawithin200nauticalmilesofboththewestandeastUSCoastsasanEmissionControlAreaunderthetermsofMARPOLAnnexVI.Theeffectofthiswillbethatby2015mostshipstradingtotheUnitedStates(andCanada)willhavetoburndistillatefuelwithasulphurcontentof0.1%.A1.0%sulphurlimitisexpectedtobeenforcedduring2012.ItremainstobeseenwhetheroilrefinerswillbeabletomeetthedemandfornewbunkerfuelsfromdomesticUSshipping,letaloneinternationaltrade.However,thedecisionbytheEPA,whichhasbeenapprovedbyIMO,doesatleastmeanthattherefiningindustrynow
hastheclearsignalrequiredtobeginexpandingdistillateproduction.
Onesignificantconsequenceofthe‘DeepwaterHorizon’pollutionincident(seeabove)isthattheimmediateadoptionofFederal‘capandtrade’legislationtoreducecarbonemissionsnowseemsmuchlesslikely.ThiswasinitiallyproblematicbecausethequidproquoforRepublicansupportforanewenergybillwasthePresident’sacceptanceofincreasedoffshoredrilling,whichwasquicklyrescindedintheaftermathofthepollutiondisaster.However,theDemocrats’lossofcontroloftheHouseofRepresentatives,followingtheNovember2010elections,meansthatprogresson‘capandtrade’isprobablystalledforatleastanothertwoyears.
WhiletheStateDepartmentisleadingUSrepresentationintheinternationalnegotiationsonCO2emissions,theEPAhastheprimaryroleindomesticUSpolicy.NotwithstandingthedifficultiesthattheAdministrationmaynowhaveinsteeringaclimatechangebillthroughCongress,theEPAhasofficiallydeterminedthatCO2isapollutant,sothatregardlessofwhathappensinCongressithastheauthoritytoregulateonCO2emissions,includingthoseproducedbyinternationalshipping.
Moreroutinely,ICShascontinuedtohighlightitsoppositiontoUSballastwaterlegislation,withtheproposedUS‘killstandard’stillbeingmanytimeshigherthanthatstipulatedbytheIMOBWMConvention(whilethatrequiredbyindividualStatessuchasNewYorkismanytimeshigherstill).OtherimportantmattersrequiringcarefulmonitoringhaveincludedtheunilateralsulphuremissionrulesinCaliforniaandmeasurestoprotectwhalesfromtheriskofcollision.
AparticularexampleofunwelcomeregulationsadoptedbyanindividualUSStateisthatadoptedbyMassachusetts.ThisstipulatesthatvisitingtankersthatdonotelecttocomplywithcertainadditionalrequirementswillbesubjecttofinancialliabilitiesinexcessofthosesetoutinFederallawintheeventofapollutionincident.TheissueforICShasbeenoneofprinciple,duetotheencouragementthatthiscoercivelawmightgivetootherUSStatestotaketheirownunilateralactions,whichwillresultinconflictingregulations.Inco-operationwithotherindustryassociations,ICSthereforejoinedalegalchallengein2010.TheintentionoftheactionwastomaketheUSCoastGuarddefenditsownregulations.Disappointingly,however,theCoastGuardhassofarshownlittleinterestindoingthisforwhatareprincipallyassumedtobepoliticalreasons.
ItmustberecordedthattheUnitedStatescausedoutrageamongsttheshippingindustrywithitsunhelpfulPresidentialOrderofApril2010onsecurityinSomalia.Thissuggestedthatthoseinvolvedinthepaymentofransomstopirates,toreleaseships’crews,couldbesubjecttocriminalsanctionsandpotentialimprisonment.TheUSOrdercontinuestoprohibittransactionswithcertainSpeciallyDesignatedNationalsincludingthosewithpotentiallinkstoSomalipirates.StateDepartmentandTreasuryofficialshavemaintainedthatshipownersandtheirinsurersshouldhavelittletofearwithregardtocriminalsanctions,providedthattheycontacttheUSauthoritiespriortoransompaymentsbeingmade.However,theyhaverefusedtoprovideanyspecificguidanceonthequestionofduediligence,advisingonlythateachcasewillbeconsideredonitsindividualfactsandthatallcasesshouldbe
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referredtotheOfficeofForeignAssetsControl(OFAC)whichcanapparentlygrantlicensesagainstprosecutioninindividualcases.
Whenpressed,theUSAdministrationhasgiveninformalassurancesthatransompaymentspersearenotprohibitedbytheOrderanditdoesnotenvisageasituationwhereshipownerswouldbepreventedfrommakingapaymenttoobtainthereleaseofashipanditscrew.Ofmoreimmediateconcern,however,isthatthecommercialinsurancemarkethasissuedaclausetoprotectinsurersagainstsanctionableactivity.Itremainsuncertainhowthisclausemightoperateinpracticeifashipownerhaspaidapremiumforcoverbutisthendeniedrecoveryoftheransompayment.
Amorepositivedevelopmentisthatasapartialconsequenceofstrongoppositionfromforeigngovernmentsandindustry,includingICS,thedeadlineforimplementationoftheUS100%containerscanninglawhasbeendelayedfrom2012to2014.The2007lawrequiresthateverycontainerexportedtotheUSbyseashouldbeindividuallyscannedforpotentialweaponsofmassdestruction.TheDepartmentofHomelandSecurityisnowconductingamajorstrategicreviewofsupplychainsecuritywhichcouldperhapspreparethegroundforthisdraconianlawtoberevisited.However,thepoliticalsensitivitiessurroundingsecurityissuesintheUScouldyetmakethisprocessdifficult,andICSwillcontinuetoencourageforeigngovernmentstoreiteratetheiroppositiontotheUSlawbeingfullyimplemented.
EUDevelopments
Fromaninternationalperspective,theEuropeanUnion’sregulatoryagenda
remainsrelativelyquietfollowingtheadoptionoftheEUMaritimeSafetyPackage.Encouragingly,thereappearstobeincreasingrecognitionwithintheEUinstitutions,notleastwithintheEuropeanCommission(whichinitiatesmostnewlegislation)oftheimportanceofallowingIMOtodevelopglobalrulesinordertomaintainalevel‘playingfield’inwhatisinherentlyaglobalindustry.
WithregardtotheregulationofCO2,theofficialEUpositionhasbeenthatifIMOfailstoadoptacceptablemeasuresbytheendof2011itwillintroducearegionalMarketBasedMeasure(MBM),suchasincorporationofshippingintotheEUEmissionTradingScheme(ETS),by2013.However,itispossiblethisstancemightbesoftening.AlthoughopinionswithinthevariousEUinstitutionsvary-i.e.betweengovernments,theParliamentandtherelevantDirectoratesintheCommission-thereseemstobeagrowingunderstandingaboutthedifficultiesofincorporatinginternationalshippingintotheEUETS(whichwasalsogreatlydiscredited,inearly2011,followingthedetectionofwidespreadfraudresultinginthetemporaryclosureoftheEUcarbonmarket).ItispossiblethatifIMOcanindeedadoptaglobalpackageoftechnicalmeasurestoreduceCO2emissionsduring2011thismightinitselfbesufficienttodissuadetheEuropeanUnionfromimmediatelyprogressingaheadwitharegionalMBMforshipping.However,theEUcanprobablyonlybeexpectedtoslowdown,ratherthanabandon,workonaregionalMBM,andeventhenonlyifitcanseethatIMOisstillmakingprogress
onaninternationalMBMforshipping.
Meanwhile,thereisgrowingconcernrelatingtoproposalsbytheHELCOMgroupofBalticcoastalstatestodesignatetheBalticSeaasaspecialareainthecontextofMARPOLAnnexIV.Theintentionistopreventthedischargeofsewage(specificallyfrompassengerships)andalsotopushforthecreationofaNOxEmissionsControlArea(ECA)inboththeBalticandtheNorthSea.Inresponsetothesedevelopments,ICShasnowjoinedtheHELCOMprocessbybecomingarecognisedobserveratmeetingsoftheHELCOMcountries,andisco-operatingwithECSAandtheEuropeanCruiseCounciltodevelopaco-ordinatedindustryresponse.
Anotherimportantissue,whichalsoaffectsnonEUoperators,istheimplementationfromJanuary2011oftheEU’sAdvanceCargoDeclarationSystemintroducedtoaddresssecurity,whichappliestobulkandbreakbulkcargoesaswellascontainerships.ShippingcompaniestradingtoorfromtheEUarenowrequiredtoprovideadvancesecurityinformationthroughelectronicdeclarationspriortoimportorexport.WhileauniformsetofEUriskcriteriawillbeappliedbyEUMemberStateswhencarryingoutcustomscontrols,theITsystemsthemselvesdifferbetweenMemberStates,andtherehavebeenseveredelaysintheimplementationofthesesystemsbyCustomsauthorities.SomeEUMemberStateshavebeenflexibleintheirapplicationofthenewrules,inorderforcompaniestoimplementandtestsystemsthatmeetthenewrequirements.Unfortunately,nouniformgraceperiodisbeingappliedthroughouttheEU,despitethecontinuinguncertainty,withsomecustomsofficersreportedlybeingignorantofthenewrequirements.
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AsianDevelopments
ItgoeswithoutsayingthatthemostdramaticeventinAsiawastheterribledisasterinflicteduponJapanbytheearthquakeandtsunamiinMarch2011.Itisstillfartooearlytoassesstheimplicationsoftheseevents,notleastbecauseoftheuncertaintiessurroundingtheleakagesfromdamagednuclearplants.Perversely,inthelongerterm,theshippingindustrymaywellbenefitfromthehugereconstructionthatwillberequired,althoughJapaneseexportsmightbeexpectedtobeaffectedintheimmediatemonthsahead.Meanwhile,thefortunesofinternationalshippingverymuchdependonthepoliciesofChina,whichhascontinuedtosustaindemandinmanyshippingtrades.ThepossibilityofachangeinpolicyinChina,andthenegativeimpactthismighthaveonshipping’srecovery,cannotbeoverstated.
Withrespecttomoreroutinedevelopments,AsiangovernmentsaregenerallylessinclinedthanotherstoadoptsafetyandenvironmentalrulesthatimpactonshipswhichareinconsistentwithinternationalrulesadoptedbyIMO.Theabovenotwithstanding,somequestionsremainabouttheimplementationofregulationsinChinagoverningpollutionprevention,whichintroducenewoperationalandliabilityrequirements.
Asiannationshaveapivotalroleindeterminingwhennewinternationalruleswillenterintoforce,including
-asmentionedelsewhere-theILOMaritimeLabourConvention,theIMOHongKongShipRecyclingConvention,thenewIMOProtocolonHNSliability,andtheUNICITRALRotterdamRulesoncargoliability.ICSthereforecontinues
tostresstheimportanceoftreatyratificationbyAsiangovernmentssothattheyarenotbroughtintoforcesolelythroughblockdecisionsbyEUStatesandafewlargeopenregisters,inordertoavoidinternationalrulesbecomingregionalregimesinallbutname.
ICScontinuestotakeacloseinterestinsafenavigationintheMalaccaStraits,althoughitseemsthatasatisfactorymechanismhasnowbeenagreedwithlittoralstatesforthefuturefundingofnavigationalaidsinthisimportantinternationalwaterway,inamannerwhichisfullyconsistentwiththeprinciplesestablishedbyUNCLOS,sothatindividualshipsarenotcharged.InOctober2010,inYogyakarta,Indonesia,ICSparticipatedinanimportantmeetingonsafenavigationintheMalaccaandSingaporeStraits,organisedbythelittoralstates,whichinteraliaapprovedproposalsbyICSconcerningtheassessmentofmarineaccidentreports.AmajorprojectisnowbeingestablishedtocollectinformationfromshipswhichICSisco-ordinating.
2010witnessedmuchactivitywithintheUnitedNationstoenactsanctionsdesignedtoinhibitcertaintradestoandfromIran,inresponsetoitsnuclearambitions.Whileexportsofcrudeoilhavenotbeenaffected,theUSsanctionsgofurtherthanthoseimposedatUNlevelandareaimedatsqueezingIran’srefinedfuelimports.Thevarioussanctionshavehadparticularconsequencesformarineinsurancemarkets,whichhaveaddedclausesintheirpoliciespermittinginsurerstoterminateorwithdrawcoverintheeventofsanctionableactivity.
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LegalandInsuranceDevelopments
ICScontinuestorepresentshipowners,incloseco-operationwiththeInternationalGroupofP&IClubs,attheIMOLegalCommitteeandatmeetingsoftheInternationalOilPollutionCompensationFund(IOPCF)ICSalsoliaiseswiththeinternationalhullinsurancemarket.
HNSLiability
ICShasgreatlywelcomedtheadoptionoftheProtocoltothe1996HazardousandNoxiousSubstances(HNS)Convention,followingaDiplomaticConferenceheldundertheauspicesofIMO,inLondon,duringApril2010.
ICSanditsmembershavecampaignedformanyyearsfortheratificationandentryintoforceofthe1996HNSConvention,whichwillestablishaninternationalregimeofliabilityandcompensationforHNSdamage,tothebenefitofallstakeholders,includingthosesufferingHNSdamage,thoseundertakingclean-upmeasures-includinggovernments-aswellasshippersandcarriers.
ThenewProtocolisintendedtoovercomeimpedimentstotheratificationoftheoriginalHNSConventionwhichhasstillnotenteredintoforcesinceitsadoption15yearsago.TheseobstaclestoratificationrelateprimarilytotheHNSConvention’s‘secondtier’ofcompensation(theHNSFund)wherebycargointerestsaremeanttocontributetothecostsofclaimsintheeventthattotalclaimsfollowinganHNSincidentexceedtheshipowner’slimitofliabilityunderthe‘firsttier’oftheConvention.
ICShasworkedhardtoensurethat
theProtocolwillnotimpacttoomuchonshipowner’sliabilityunderthe‘firsttier’,andthatthecargointerests’‘secondtier’willbepreserved.Buttoachievetheseaims,ICShadtoagreethattheshipowner’sliabilityinincidentsinvolvingpackageddangerousgoodswillbeincreasedaspartofacompromiseintendedtoachieveanequitablesharingofthecostsofcompensationbetweenshipownersandcargointerests.DatacompiledbytheInternationalGroupofP&IClubsdemonstratedthatclaimsinallcasesinvolvingpackagedHNScargoeshadbeencomfortablywithinthepreviouslimits.
ThekeyconsiderationattheDiplomaticConferencewaswhatmightberegardedas‘acceptable’increasestoshipowners’liabilityforincidentsinvolvingpackagedgoods.Thishadtotakeaccountoffactorssuchastheremovaloftheobligationonimporterstocontributetothe‘secondtier’,andtheagreementduringthepreparatorydiscussionswithintheInternationalOilPollutionCompensationFund(IOPCF)andtheIMOLegalCommitteethatshipownersshouldbewillingtoaccept‘modest’increasesasanecessarycounter-balancetothepotentialincreasedexposureofbulkcargointerestsunderthe‘secondtier’.TheIMOMemberStatesfinallyagreedtoincreasetheexistingshipowners’limitsby15%.Thisissignificantlylowerthantheamountsinitiallyproposedandreflectedanacceptancebygovernmentsthattheclaimsstatisticsdidnotwarrantagreaterincrease.
FollowingtherecententryintoforceoftheIMO‘Bunkers’Convention,plustheadoptionin2007oftheNairobiWreckRemovalConvention(albeitnotyetinforce),thereisnowacomprehensiveframeworkofliability
Conventionsinplaceaddressingmostsourcesofpotentialdamagetotheenvironmentfromships,sothatclaimants,ifnecessary,canhaverapidaccesstocompensationwithoutprotractedlegalarguments.Theonesignificantremaininggapincoverageconcernsliabilityandcompensationfordamagecausedbyhazardousandnoxioussubstances.ItisthereforeverymuchhopedthattheadoptionoftheProtocolrepresentsanagreementwhichcanbeacceptedonabroadinternationalbasis,andwhichwillnowpavethewayfortheearlyentryintoforceoftheIMOHNSConvention.
IGofP&IClubs
In2010,theCompetitionDirectorateoftheEuropeanCommissionopenedformalproceedingstoinvestigatetheactivitiesoftheInternationalGroupofP&IClubs.TheCommissionapparentlywishestoexaminewhethercertainprovisionsoftheIGAgreementandPoolingAgreement-notablytheGroup’sclaims-sharingandreinsurancearrangements-mightsomehowlessencompetitionbetweentheClubsorrestricttheaccessofcommercialinsurersorothermutualP&Iinsurerstotherelevantmarkets.TheCommissionhasstatedthat,atthisstage,itissimplyconductinganinvestigation,andthisdoesnotimplythatthereisanyproofofaninfringement.TheCommissionalsoadvisesthatithasopenedtheinvestigationonitsowninitiativeandithasnotreceivedanyformalcomplaints.
ICSandECSAwereinvitedtoundertakebilateraldiscussionswiththeCommissionasacontributiontotheearlystepsoftheinvestigation.AtameetingwhichtookplaceinNovember2010,ICSemphasisedthatthemutualinsurancearrangements
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providedbytheP&IClubsareefficientandcosteffective.TheCommissionofficialsinturnstressedtheywerenotintentondestroyingthesystembutwereinterestedinthequotationprocedure,releasecalls,andtheavailabilityofcommercialP&IinsuranceoutsidetheInternationalGroupsystem.
DiscussionsbetweentheIGClubsandDGCompareexpectedtocontinuethroughout2011.Atthebeginningoftheyear,theCommissionsentoutquestionnairestoindividualshippingcompaniesseekingfurtherinformationontheapplicationoftheIGAgreement,andalsorequesteddetaileddocumentationandinformationfromtheIGClubs.
ICSwillcontinuetoreiteratethatthecurrentsystemservestheinterestsofshipoperators,theircustomers,claimantsandthegeneralpublicextremelywell.Inparticular,themutualinsurancearrangements
providedbytheClubsenabletheprovisionoftheveryhighlevelsofinsurancerequiredbyinternationalliabilityconventions,underwhichcompensationtoclaimantsisgenerallypaidregardlessoffault.ItisvitalthattheEuropeanCommissionunderstandsthis.
LLMCReview
IMOhasbeenconsideringanAustralianproposaltoincreasethelimitsofliabilityundertheLimitationofLiabilityforMaritimeClaimsConvention1996(LLMC)inresponsetothe‘PacificAdventurer’bunkeroilspillinQueensland.TakingaccountofasubmissionfromtheP&IClubsonthehistoriccostsofbunkeroilpollutiondamageclaimswhencomparedwiththe1996LLMClimits,theIMOLegalCommittee,atitsmeetinginNovember2010,hasagreedtogiveconsiderationtoamendingthelimitsusingthe‘tacitamendment’procedure.Whilethere
nowseemstobeconsensusamongstgovernmentsontheneedforanincrease,changingthelimitswillaffectotherLLMCConventionclaimsunconnectedwithbunkeroilspills,whichcoulderodethecarefulbalanceinthelimitsbetweenthedifferenttypesofclaims.InDecember,attherequestofAustraliaandmanyothergovernments,IMOformallycirculatedproposedamendments.
SomenationscontinuetoexpressdoubtastowhetheranyincreasestothelimitsarejustifiedinviewofthestatisticscompiledbytheInternationalGroupofP&IClubswhichshowedthat99%ofallclaimshavesofarbeencompensatedfullyunderthepresentlimits.Whilesharingthisview,ICShasobservedthattheshippingindustryisneverthelessopentothediscussionofincreases,butthatthishastobebasedonthecriteriaspecifiedinthetacitamendmentprocedure.
DespitethereservationsexpressedbysomegovernmentsatthemeetingoftheIMOLegalCommitteeinNovember2010,increasestotheLLMClimitswouldappeartobeinevitablegiventhelargenumberofnationswhichhaveco-sponsoredtheformalproposal.Accordingly,furtherdiscussionisexpectedtofocusontheamountofanyincreases.Australiahasmadeclearthatitisseekingthemaximumamountpossibleviathetacitamendmentprocedure,namely6%peryearcalculatedonacompoundbasisfrom1October1996.However,thewordingoftheformalproposal,tobeconsideredfurtherbyIMOin2011,suggeststhatnotallofthe20co-sponsoringnationsareinfavourofmaximumincreases.
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EnvironmentalSalvage
ICScontinuestoleadshipownerrepresentation(withtheP&IClubs)onsalvageissues,particularlyinrelationtothesmoothoperationoftheLloyd’sOpenFormandSCOPICsystems.
ICSismaintainingitsfirmoppositiontoproposalsfromtheInternationalSalvageUnion(ISU)foranewseparateawardfor‘environmentalsalvage’whensalvorshavecarriedoutoperationsinrespectofashiporcargowhichhasthreateneddamagetotheenvironment.ICSisscepticaloftheproposal,believingthatsalvageservicesarealreadygenerouslyrewardedunderthepresentsystem.
AworkinggroupestablishedbytheLloyd’sSalvageGrouphasreachedastalematefollowingtheISU’sinabilitytodemonstratethatitsproposalwouldimprovesalvageresponseordelivercostsavingstothosepayingforservices.However,theISUhassucceededinpersuadingtheComitéMaritimeInternational(CMI),theinternationalassociationofmaritimelawyers,togiveconsiderationtoitsproposal.InOctober2010,ICSthereforefounditnecessarytorepeattheoppositionofshipoperatorsattheCMIConferenceinBuenosAires.
CargoLiability
AnotherimportantissueisthepromotionoftheRotterdamRuleswhichareintendedtoreplacetheexistingcargoliabilityregimessuchastheHamburgandHague/VisbyRules.FollowingathoroughanddetailedanalysisoftheRotterdamRules,whichwereformallyadoptedin2009bytheUnitedNationsCommissiononInternationalTradeLaw(UNCITRAL),ICShasdecidedthat
thenewregimemustbepromotedbytheindustrytoavoidtheriskofaproliferationofregionalcargoliabilityregulations.Althoughthenewrulesmaynotbeperfect,andareinsomerespectsoverlycomplex,ICShasconcludedthatmaintenanceofthestatusquoisnotarealisticoption.IftheRotterdamRulesdonottakeholdthentheUnitedStatesandtheEUwillalmostcertainlypursuetheirownregionalregimesandtheopportunityforglobaluniformitywillbelostforanothergeneration.
Whilethose,suchasICS,whoweredeeplyinvolvedinthenegotiationsareclearabouttheneedtoencouragegovernmentstoratifyandimplementtheRotterdamRules,thereappeartobereservationsinsomequarters,includinginAsia,aboutthebenefitsofthenewregime.AnimmediatepriorityforICS,inco-operationwithlocalnationalassociationsandbodiessuchastheAsianShipowners’Forum,willbetoexplaintotheseinterestswhytheRotterdamRulesshouldbesupported.However,earlyratificationoftheConventionbymajortradingnations,suchastheUnitedStates,willalmostcertainlygivethisprocesscriticalmomentum.
CriminalisationandFairTreatmentofSeafarers
UnwarrantedcriminalisationofseafarersiscontrarytoprinciplesestablishedbyMARPOLandtheUnitedNationsConventionontheLawoftheSea.Itisunacceptablethatinthecourseofprovidingtheirimportantservicetoworldtrade,seafarersareexposedtothevagariesofdifferentnationallaws,withsomejurisdictionsimposingcriminalsanctionsforpollutionevenwhenthereisnointentionalorwilfulmisconduct.
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Asidefromtheprinciples,thereisstillconcernabouttheimpactonservingofficers,andretentionrateswithintheprofession,ofcaseswhereseafarershavebeenimprisonedordetainedforlengthyperiodsfollowingmaritimeincidents,sometimeswithoutcharge.Mostimportantly,thepossibilityofcriminalsanctionsalsounderminestheabilityofthemaritimeauthoritiestoconductaccidentinvestigationstoestablishtherootcausesofincidents.Seafarersdeservethesecurityofuniformityandcertaintyastohowtheirconductandactionswillbedeterminedbylocalcourts,basedoninternationallyagreedstandards.Sadly,however,itseemsthatachangeinthecurrentpoliticalclimateisrequired,whichwillbealongtermprocess.ICSandISFcontinuetoleadeffortstopressforchangewherenationallawspermitunjustifiedcriminalisation.WhilegovernmentsmustbeurgedtorecognisethesupremacyofUNCLOSandMARPOLandbringnationalandregionallawsintolinewiththeseinternationallyagreedstandards,maritimeadministrationsshouldalsobeencouragedtoadopttheIMOCasualtyInvestigationCodeintotheirnationallawandprocedures.Meanwhile,theindustrywillremainvigilantandcloselymonitorproposednationalandregionallegislativechangesthatruncontrarytointernationalprinciples.
InSeptember2010,ICSandISFexpresseddisappointmentatthedecisionoftheGrandChamberoftheEuropeanCourtofHumanRightstotheeffectthattherewasnoviolationofhumanrights,in2002,whenbailwassetatEuros3millionforthereleaseofthemasterofthetanker‘Prestige’followingtheoilpollution
causedbythebreak-upoftheshipoffthecoastofSpain.ThejudgementwasdisappointinginthatitconfirmsthateventheSupremeCourtoftheEuropeanCourtofHumanRightsviewsthiscaseasbeingabouttheconsequencesofenvironmentaldisasters,ratherprovidingaproperanalysisofwhethertherehasbeenanunlawfulviolationofaseafarer’shumanrights.
Amajorproblemtheindustryfacesintheimmediateaftermathofaseriouspollutionincidentisthatthefactorsatplaylocallyareoftenpoliticalratherthanlegal.Thereisaperceptionamongstthepublicthatthe‘polluter’shouldbepunishedandforeignseafarershavenolocalpoliticalconstituency.However,theindustrywillcontinuetoexplainthatpollutionwillbecleanedup,andthatthecostsofanydamagearecovered,regardlessoffault,byveryefficientinternationalliabilityregimes.
Aseparatebutcloselyrelatedissueisthatconcerning‘fairtreatment’,i.e.properduelegalprocesswhenseafarerscomeintocontactwithlocalauthoritiesincludingtheprovisionofaccesstolegaladviceandinterpreterservices,andthepossibilityofreleaseonbailwhenacriminalinvestigationisunderway.
TheIMO/ILOGuidelinesontheFairTreatmentofSeafarersintheEventofaMaritimeAccident(whichISFnegotiatedwithunionsandgovernmentsin2006)arenotwhollysatisfactory.ButforthemomentithasbeenconcludedthatadherencetotheexistingGuidelinesmustcontinuetobestronglypromoted.
CompetitionRegulation
Compliancewithcompetitionlawismostimportantgiventhateven‘technical’violationsbyshippingcompaniescanresultinpenaltiesamountingtotensofmillionsofdollars.
Inthosepartsoftheworldwheretheyarestillpermitted,ICSpolicyistodefendthecontinuedexistenceoflinerconferences.TheEUCompetitionDirectorate,however,continuestoarguevociferouslythatitsforeigntradingpartnersshouldfollowitsunilateralexampleofmakingshippingcompanies’participationinconferencesillegal.Overshadowedbythemassivecontractionofdemandforshippingservicescausedbytheeconomicdownturn,thejuryisstilloutonwhatthelongtermeffectsoftheabolitionoflinerconferencesintradestoandfromEuropemightbe.Buttheresultisstillthoughtlikelytobeanincreaseinmarketconcentration,whiletheavailabilityofservicesonnorth-southtradesmaybereducedbyagreaterextentthanmightotherwisehavebeenthecase.
ICShasthereforewelcomedSingapore’sannouncement,inDecember2010,thatitsblockexemptionfromcompetitionrulesforlinershippingagreementswillbeextendedforanother5yearsuntil2016.ItisalsounderstoodthattheauthoritiesinChinahavesimilarlydecidedtomaintainthestatusquoforshipping.AnumberofotherAsianjurisdictionsarereviewingtheapplicationofanti-trustlawtoshippingaspartoftheirdevelopmentofgeneralcompetitionlaw.Butforthemostpartitisexpectedthatthespecialneedsoftheindustrywillcontinuetoberecognised.ICSisworkingcloselywiththeAsian
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Shipowners’Forumontheseimportantfiles.
UndertheauspicesoftheAsiaPacificEconomicCo-operationforum(APEC)governmentshavebeenconsideringguidelinesonmaritimecompetitionrules,specificallyforco-operationagreementswhichdonotinvolveratesetting,suchasconsortia.Althoughafarlooserformofco-operationthanconferences,consortiahavealsoprovidedstabilitytomarkets,helpingguaranteethemaintenanceofscheduledservicestomoreremotedestinationsandpermittingefficienciessuchasslotsharingoncontainerships.
InOctober2010,ICSandtheWorldShippingCouncil(WSC)madeajointpresentationatanimportantworkshophostedbyAPECeconomies,inTokyo,toconsidertheproposednewGuidelines.Inparticular,ICSandWSCmaintainedtheirpositionthatthedetailsoffilingrequirementsshouldbelefttothediscretionofindividualgovernments,sincefilingrequirementsareoftenimposedbythosegovernmentswhichcontinuetoallowamoreflexibleapproachwithregardtoco-operationbetweenshippingcompanies.However,theEuropeanCommission,alsopresentattheAPECmeeting,madeclearitsoppositiontofilingsinceitdoesnotfeatureunderthecurrentEUrulesonconsortia.TheAPECGuidelinesareexpectedtobefinalisedbyAPECtransportministers,inBrisbane,inJune2011.
IntheUnitedStates,meanwhile,theFederalMaritimeCommission(FMC)isproceedingwithacomprehensivestudyoftheimpactonUStradesresultingfromtheabolitionoflinerconferencesintheEU.TheFMCstudywillcovertwoyearsbeforeandafter
theEUrepealofitsblockexemptionin2008,andwillincludeanalysisofchangesincarriermarketstructures,ratesandsurchargesthatmayhaveresulted.
Beforethe‘mid-termelections’intheUnitedStatesinNovember2010,aBillwasintroducedtoCongressthatproposedremovalofmuchoftheanti-trustimmunitywhichisstillenjoyedbytheinternationallinerindustryinUStrades.Fortunately,thisBillisnowdead,althoughitisanticipatedthatasaconsequenceoftheFMCreviewtherecouldbefurtherpressuretomodifythecurrentregimeembodiedintheOceanShippingReformAct(OSRA)of1998.
ShippingPolicyandFreeTrade
ShippingpolicyinvolveslongtermengagementbyICSanditsmembernationalassociationsinthelargelyunseendiplomaticactivitynecessarytohelpensurethemaintenanceoftheopenmarketswhichtheshippingindustryneedstooperatecompetitivelyandefficiently.Shippingalsorequiresaregulatory‘levelplayingfield’,and-inviewofthegreatmarketvolatilityexperiencedduringtherecenteconomicdownturn-thecontinuationofthecertaintyprovidedbythetonnagetaxregimesthatnowapplytoshippingcompaniesinmostcountries.InMay2010,ICSmadetheseimportantpointsasoneoftheleadingindustryparticipantsatamajorConferenceoftheworld’stransportministersinLeipzig,organisedbytheOECDInternationalTransportForum,whichhascontinuedtofocusontheimplicationsfortransportasitemergesfromtheeconomicdownturn.ICSwillagainberepresentingtheindustryatthenextOECDtransportministers’conference,inMay2011.
Moreroutinely,ICScontinuestoplacegreatimportanceonrelationswiththeConsultativeShippingGroup(CSG)ofmaritimegovernments,whichistheguardianoffreetradeprinciples.InJune2011,ICSwillbeorganisingaseminarontradepolicyforCSGgovernmentsattheirnextmeetinginBrussels.ICShasalsobeenabletogiveinput,vianationalassociations,onissuesrangingfromproblemsofmarketaccesstogovernmentinterferenceinlocalmarkets.TheCSGisalsoausefulconduitforthediscussionofsensitivediplomaticissues,suchasthetreatmentofpiracy.
InadditiontothebroaderroleoftheCSGasaforumfordiscussionofshippingpolicyandtradeissues,itstillmaintainsitsoriginalfunctionasprovidingameansfortheworld’smajorshippingnationstocommunicatewiththeUnitedStatesgovernment,whichhistoricallyhasoftenbeenslightlydetachedfromthemainstreamoftheinternationalshippingcommunity.ICSparticipatedattheCSGdialoguemeetingwiththeUnitedStatesheldinWashingtonDCinJune2010,whichwasdominatedbytheaftermathofthe‘DeepwaterHorizon’pollutiondisasterandthepossibility,thankfullyaverted,ofaprotectionistbacklash.
AmajorconcernofICSnationalshipowners’associationshasbeentodiscouragegovernmentsfromrespondingtothecurrenteconomiccrisiswithprotectionistmeasures,whichwillonlydamageworldtradefurther.Moreparticularhasbeentheneedforgovernmentstoavoidmeasuresthatrestrictfairandopenaccesstoshippingmarkets.Althoughoflittleimmediatecomforttothoseindividualcompaniesthatmaystillbestrugglingtosurvive,oneconsolation
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isthatgovernmentssofarappeartohavemadeadeterminedefforttoavoidtheexcessiveuseofprotectionistmeasures.Moreover,althoughtheglobalfinancialsystemhasbeenseriouslythreatenedbythecrisis,withgovernmentsupportithasmanagedtosurviveandisstillintact.Thisisnot,byanymeans,aninsignificantachievement,anditshouldnotbeforgottenjusthowclosetotheprecipicetheworldeconomycame.
Therecoveryoftheworldeconomyisstillfarfromcertain,anditwillremainimportantforICS,andlikemindedgovernments,toremainvigilant.Inparticular,ICSremainscommittedtotheinclusionofshippinginanynewagreementonservicesthatmaybeagreedbytheWorldTradeOrganization(WTO),inordertocodifytheliberaltradingpracticeswhichalreadyapplytomostshippingmarkets.However,progresstowardsanewWTOdealontraderemainsslow,largelyduetosignificantdifferencesbetweengovernmentsonissuessuchasagriculture.
Anothersourceofdisappointmentwasthat,inDecember2010,theOECDconfirmeditsdecisiontoterminatenegotiationsonanewagreementtoeliminatesubsidiesandmarketdistortingmechanismsintheshipbuildingindustry,whichisdominatedbyChina,JapanandKorea.ThiswasprimarilyduetodifferencesbetweentheEuropeanCommissionandAsiangovernmentsaboutthetreatmentofpricingofnewshipsinanynewagreement,thelatterwishinginsteadtoconcentrateontheeliminationofsubsidies-apositionsupportedbyICS.Thenegotiationshadbeen‘paused’forexactlythesamereasonin2005,butthroughout2010seriouseffortshadbeenmade
torestartthem.TheOECDWorkingPartyonShipbuilding,however,willcontinuetomeet,apparentlytoexplorebetterunderstandingofwhatconstitutesmarketdistortionandmeansofachievinggreatertransparencyofgovernmentsupportmeasures.Thecollapseofthenegotiationsisneverthelessdisappointing,asAsiangovernmentsinparticularcontinuetofocusonmaintainingorexpandingmarketsharewithsoftloans,encouragingtheconstructionofevermoreshipsforwhichtheremaybenodemand.
InternationalAccountingStandards
Inresponsetoissuesthatemergedasaconsequenceoftheglobalbankingcrisis,theInternationalAccountingStandardsBoard(IASB)hasmadeproposalstooverhaulinternationalaccountingruleswhich,interalia,willaffectthetreatmentofleasesforallbusinessesandindustries.However,thereisseriousconcernamongstshippingcompaniesaboutthelackofprecisionintheproposalswithregardtothedefinitionofleases.Thiscouldgiverisetoaninterpretationthat‘timecharters’andothercontractsgoverningoperationalarrangementsutilisedbyshipoperatingcompaniesfallwithinthedefinition.
ICSbelievesthatsucharrangementsshouldnotbetreatedasleases,andcertainlynotasfinancialleasesforaccountingpurposes,sincetheyaremoreinthenatureoftransportationservicecontracts.Furthermore,itisunlikelythatthirdparties’understandingofthetruefinancialpositionofshippingcompanieswillbegreatlyenhancedbyrequiring‘timecharters’andsimilarcontractualarrangementsfortransportation
services,toappearoncompanybalancesheets.
InDecember2010,ICSmadeasubmissiontotheIASBinordertoexplaintheseconcerns.Mostimportantly,oneofthepossibleconsequencesofrequiringcontractualarrangementssuchas‘timecharters’toberecordedoncompanybalancesheetsisthatsomecompaniescouldsuddenlybecomeinbreachofexistingcovenantswiththeirfinancinginstitutions.Suchcovenants,inrelationtocapitalgearingforexample,havebeenenteredintoonthebasisofcurrentaccountingrules,andtherecanbenopresumptionthatfinancinginstitutionswillbeabletoreviseorrenegotiatecontracts.However,suchtechnicalbreachesofcovenantscouldpotentiallytriggerdefaultswithunpredictableconsequencesforindividualcompanies,theshippingindustryasawhole,andthesmoothflowofinternationaltrade.Forothercompanies,theproposedrulesmayhaveadramaticeffectonthewayinwhichtheymustconducttheirbusinessafterthechangescomeintoeffectinabouttwoyears’time.
AlthoughithadbeenunderstoodthattheprospectsforpersuadingtheIASBtomodifyitsproposalswerelimited,therearenowindicationsthatIASBmaynowbemoreawareoftheproblemsthatmightbecreatedforshipping.ICSmetwithISABrepresentativesinMarch2011,priortotheexpectedpublicationoffinalproposalslaterthisyear.
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CanalIssues
ICSwasdisappointedwiththeoutcomeofthePanamaCanalAuthority’s(ACP)consultationprocessontheadjustmentofPanamaCanaltolls.InJune2010,tollrisesofsome12-16%wereannouncedandwereimplementedinJanuary2011.ThiswasdespiteanumberofindustrymeetingswiththeACP,andstrongcommentssubmittedtotheformalconsultationprocessbyICSandothersexpressingtheviewthatsuchsteepincreaseswouldbedamagingtothefragilerecoveryintheshippingsector.
Theindustryalsoarguedthattheuncertaintyregardingfuturepossibletollincreasescreatedbytheproposal’sshorttermvalidity(onlyincreasesfor2011wereannounced)wasafurtherunwelcomeburden.Althoughtheindustrywasunsuccessfulinpreventingtheincreases,thislastpointwasinparttakenonboardbytheACP,whichhasinvitedICStoparticipateindiscussionsforsegmentspecific,longtermpricingstructuresforPanamaCanaltolls.ICShasrespondedpositivelytothisinvitation,anditisexpectedthatdiscussionswillbeginduring2011.MeanwhiletheCanalexpansionprogrammeisreportedtobeprogressingwell,andisstillonscheduleforcompletionin2014,whentheCanalcelebratesthecentenaryofitshistoricopening.
Elsewhere,operationsintheSuezCanalwerefacedwithsomeuncertaintyinearly2011,duetothepoliticalupheavalsinEgypt.However,shipoperatorswererelievedthat,givenitsvitalimportancetoworldtrade,theCanalcontinuedtofunctionmoreorlessasnormal,andwithoutdelays,throughouttheperiodofunrest.
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TheSuezCanalAuthority(SCA)announcedinMarchthattransitfeesfor2011wouldremainunchangedforthethirdconsecutiveyear.TheSCAadvisedthatthisdecisionwasbasedonitsassessmentofthecontinuinguncertaintyinshippingmarketsfollowingtheglobalfinancialcrisis.However,piracyattacksintheIndianOceanhavehadanimpactontransits,andSuezCanalrevenuescouldbeseriouslyaffectedifthepiracycrisiscontinuestoescalateandlargenumbersofshipsdecidetouseotherroutes.
IndustryRepresentation
InadditiontointeractingwithindividualgovernmentsduringmeetingsatIMOinLondonandILOinGeneva,ICS/ISFcontinueregularattendanceatmoregeneralpolicymeetingsheldbytheUnitedNationsinNewYork,theWorldTradeOrganization(WTO),theOrganizationforEconomicCo-operationandDevelopment(OECD),theConsultativeShippingGroup(CSG),theUnitedNationsConferenceonTradeandDevelopment(UNCTAD),theWorldCustomsOrganization(WCO),and,insofarastheyarerelevanttotheemploymentofseafarers,bodiessuchastheWorldHealthOrganization(WHO).GiventheimportanceofdiscussionsaboutCO2emissionsreduction,ICShasalsotakenupconsultativestatuswiththeUnitedNationsFrameworkConventiononClimateChange(UNFCCC).
ICSenjoysgoodrelationswithmanyotherintergovernmentalbodiesthatimpactonshippingincludingtheInternationalAssociationofMarineAidstoNavigationandLightHouseAuthorities(IALA),theInternationalHydrographicOrganization(IHO)and
(ICC),theInternationalStandardsOrganisation(ISO),theBusinessandIndustryAdvisoryCommitteetotheOECD(BIAC),theInternationalOrganizationofEmployers(IOE)andtheWorldOceanCouncil(WOC).
Lastbutnotleast,ICSandISFenjoygoodrelationswithvariousspecialistindustrybodiessuchtheInternationalAssociationofClassificationSocieties(IACS),theInternationalGroupofP&IClubs(IG),theInternationalUnionofMarineInsurance(IUMI),theInternationalAssociationofPortandHarbors(IAPH),theInternationalMaritimePilots’Association(IMPA),theNauticalInstitute(NI),andtheGlobalShippers’Forum(GSF).
Mostimportant,however,isthecontactenjoyedbetweenICSandISFanditsmembernationalshipowners’associations(seeinsidebackpage),whocollectivelydeveloptheindustry’sglobalpolicypositionsthroughacomprehensivestructureofspecialistcommittees(seepage48).Althoughefficientinternationalshippingdependsonasystemofuniformglobalrules,westillliveinaworldofnationstates,andtheimportanceofnationalshipowners’associationsremainsasessentialasever.
Publications
Theproductionofpublications,providingguidanceonregulatorydevelopmentsandpromotingbestpractices,particularlywithregardtosafety,environmentalprotectionandemploymentstandards,continuetobeamostimportantactivitywithinICSandISFtowhichalargeproportionofresourcesisdevoted.
InMarch2011,ISFpublishedrevisedGuidelinesontheIMOSTCW
theWorldMeteorologicalOrganization(WMO).ICSalsohasconsultativestatuswiththeInternationalMobileSatelliteOrganization(IMSO),whichisthebodythatoverseespublicsafetyandsecuritycommunicationservicesincludingtheGlobalMaritimeDistressandSafetySystem(GMDSS).
Asanemployers’organisation,andanofficial‘socialpartner’attheILO,theoppositenumberofISFistheInternationalTransportWorkers’Federation(ITF).Inaddition,ISFisamemberoftheInternationalCommitteeonSeafarers’Welfare(ICSW)whichembracessecularandreligiousseafarers’welfareorganisations.
Inviewoftheimportanceofensuringglobalregulationforaglobalindustry,ICS/ISFcontinuetoworkcloselywiththeEuropeanCommunityShipowners’Associations(ECSA)incommunicatingonissueswithEuropethatarerelevantfromaninternationalperspective,andparticipateinconsultationsorganisedbytheEUinstitutions.IntheUnitedStates,ICS/ISFworkwiththevariousUSagenciesthatimpactonshippinginliaisonwiththeChamberofShippingofAmerica,whichbyagreementofficiallyrepresentsICSandISFinUSdiscussions.Additionally,ICSenjoysgoodrelationswiththeAsianShipowners’Forum,whosemembersarealsonationalshipowners’associations,andICSisnowdevelopingarelationshipwiththeAsiaPacificEconomicCo-operationforum(APEC)whichisbecomingincreasinglyengagedwithmaritimetransportmatters.
ICSandISFworkcloselywithadiverserangeofotherindustryorganisationsthatareengagedgenerallyontransportissues,includingtheInternationalChamberofCommerce
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ConventiontoreflectthechangesagreedtocompetencestandardsforseafarersattheDiplomaticConferenceinManilainJune2010.ThereisalsoanambitiousschedulefortheupdatingofthevariousinternationallyrecognisedtrainingrecordbooksthatISFprovidesfortheindustry,startingwithbooksforthenewgradeofAbleSeafarer(deckandengine).
In2010,ICSandISFpublishedaneweditionoftheirdefinitiveGuidelinesontheApplicationoftheIMOInternationalSafetyManagement(ISM)CodetocoincidewiththeamendmentswhichenteredintoforceinJuly.Aswellasthis,inco-operationwithitspartnerITEnergy,ISFhasupdateditsincreasinglypopularISFWatchkeepercomputersoftwarewhichallowsrecordstobemaintainedofseafarers’workhoursinaccordancewithIMOandILOregulatoryrequirements,includingthechangesmadebythe2010amendmentstotheSTCWConvention.
ISFisalsoworkingonarevisededitionofitsGuidetotheInternationalMaritimeLabourConventiontotakeaccountofguidelinesonenforcementdevelopedbyILOinadvanceoftheILOConventioncomingintoforce.Meanwhile,ICSisdevelopingnewguidelinesonengineroommanagementtoserveasacompaniontotheICSBridgeProceduresGuide.
Inadditiontothis,ICShasworkinhand,withtheOilCompaniesInternationalMarineForum(OCIMF)andtheSocietyofInternationalGasTankerandTerminalOperators(SIGTTO)toproduceanewconsolidatededitionoftheShiptoShipTransferGuidethatwillcoverpetroleum,chemicalandgasoperations.
Mostimportantly,detailedworkhascommencedontheICSTankerSafetyGuide(Chemicals).Thisisamajorundertakingandwillprobablytakeabouttwoyearstocomplete.
Detailsofover30titlesproducedbyICS/ISF,whicharesoldunderthebannerofMarisecPublications,canbefoundinthelatestpublicationscatalogue-seewww.marisec.org
AdministrativeMatters
ThecurrentmembershipofICSandISFcomprisesnationalshipowners’associationsfrom36countries(seeinsidebackpage),thelatestwelcomeadditionbeingtheBahamasShipowners’Association.SailTrainingInternationalhasalsojoinedasanAssociateMember.
ThestaffandSecretariatofICSandISFcontinuetobeprovidedbyMaritimeInternationalSecretariatServicesLimited(Marisec),whichiswhollyownedbythetwointernationaltradeassociations.MarisecalsoprovidesservicestotheInternationalSupportVesselOwners’Association(ISOA).
The2010AnnualMeetingsofICSandISFwerehostedbytheSingaporeShippingAssociationinApril.MrSpyrosMPolemis(Greece)wasre-electedasICSChairmanandISFPresident.TheICSVicePresidentselectedfor2010/2011wereMrTrygveSeglem(Norway)andMrFrankLeonhardt(Germany).CaptainDirkFry(Cyprus)andMrCarlosSalinas(Philippines)werere-electedastheISFVicePresidents.
InSeptember2010,PeterHinchliffewasappointedSecretaryGeneralofICSandISF,asthesuccessortoTonyMasonwhosteppeddownfromthehelmafterfouryearsofservice.
PeterHinchliffe,SecretaryGeneral
The2010AnnualMeetingstookanimportantdecisiontointegratetheICSandISForganisationssothattheywilloperateunderasingleBoard.TheneworganisationwillcontinuetobecalledtheInternationalChamberofShipping,butwillalsomaintaintheseparateidentityoftheInternationalShippingFederationwhenactingasanemployers’association,forexampleatmeetingsoftheInternationalLabourOrganizationorwhendealingwithindustrialrelationsquestions.
TheCommitteesofICSandISFarebeingcombinedintoasinglestructureasshownoverleaf.ThesechangeswillbefullyeffectedafterthenextICSandISFAnnualMeetings,whichwillbehostedbytheGermanShipowners’Association,inHamburg,inMay2011.
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SirBrianShawICSChairman
1987-1992
SirBrianShawpassedawayinFebruary2011,attheageof77,followingamostdistinguishedcareerinshipping.HistimeatthehelmofICSwasademandingoneastheindustryhadtorespondtothe‘HeraldofFreeEnterprise’tragedy,the‘ExxonValdez’oilspillandtheattacksonshippingduringthelatterpartoftheIran/Iraqwar.
AgraduateofCambridgeUniversity,SirBrianjoinedthePacificSteamNavigationCompanyin1957andservedwithothercompanieswithintheFurnessWithyGroup,ultimatelyasChairmanfrom1979to1990.DirectorshipswithintheindustryincludedOverseasContainersLimited,NewZealandLine,WalterRuncimanandAndrewWeir.
AswellasservingasChairmanofICS,SirBrianwasChairmanoftheCouncilofEuropeanandJapaneseNationalShipowners’Associations(whichlatermergedwithICS),PresidentoftheGeneralCouncilofBritishShipping,andChairmanofthePortofLondonAuthority.
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ICSExecutiveCommitteeandISFCouncil2010/11
ICSExecutiveCommittee
ChairmanMrSpyrosMPolemisAustraliaMrNoelHartCyprusCaptainDirkFryDenmarkMrCarstenMortensenFinlandMrJanHansesFranceMrChristianGarinGermanyMrFrankLeonhardtGreeceMrAnastasiosPapagiannopoulosHongKongMrRobertHoJapanMrHiroshiHattoriLiberiaMrMarkMartecchiniMexicoMrLuisOcejoNetherlandsMrsKarinOrselNorwayMrTrygveSeglemSwedenMrLarsHöglundUnitedKingdomMrMichaelParkerUnitedStatesMrJosephCox(co-opted)
ISFCouncil
PresidentMrSpyrosMPolemisAustraliaMsTeresaHatchBahamasMrChrisOliverBelgiumMrNicolasSaverysBrazilMrPauloSergiodeMelloCottaCanadaMrBruceBowieChileMrErichStrelowChinaMrLiShanminCyprusCaptainDirkFryDenmarkMrLeifKristianNielsenFinlandMrOlofWidenFranceMrChristianGarinGermanyMsUtaOrdemannGreeceMrAnastasiosPapagiannopoulosHongKongMrArthurBowringIndiaMrSabyasachiHajaraIrelandCaptainEddieKeaneIsleofManMrDavidOldfieldItalyMrStefanoMessinaJapanMrMitsuoNakamotoKoreaMrYoung-MooKimKuwaitCaptainSaadAl-MatouqLiberiaMrJosephLudwiczakMexicoMrLuisOcejoNetherlandsMrsKarinOrselNorwayMrTrygveSeglemPhilippinesMrCarlosSalinasSpainMrManuelCarlierSwedenMrPerCronérTurkeyMrTamerKiranUnitedKingdomMrMarkBrownriggUnitedStatesMrJosephCox
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ICSOrganisationalStructure(asfromJune2011)
MarineCommittee
Chairman:CaptainTrevorSmith
Singapore
FullMembersAssociateMembers
BoardofDirectors
OffshorePanel
Chairman:MrDavidBlencowe
Denmark
DangerousGoodsPanel
Chairman:MrJohnLeach
UnitedKingdom
EnvironmentSub-Committee
Chairman:MsTeresaHatch
Australia
CanalsSub-Committee
Chairman:MrKoichiInoue
Japan
PassengerShipPanel
Chairman:MrTomStrang
UnitedKingdom
ContainerPanel
Chairman:MrMikeDownesUnitedKingdom
GasCarriersPanel
Chairman:Tobeconfirmed
BulkCarrierPanel
Chairman:MrDimitriosFafalios
Greece
ChemicalCarriersPanel
Chairman:MrJosephLudwiczak
Liberia
OilTankerPanel
Chairman:MrRogerRestaino
Liberia
Manning&TrainingCommittee
Chairman:MrTjitsoWestra
Netherlands
InsuranceCommittee
Chairman:MrMatheosLos
Greece
Construction&Equipment
Sub-CommitteeChairman:
MrMauriziod’AmicoItaly
ShippingPolicyCommittee
Chairman:MrJohnCLyras
Greece
MaritimeLawCommittee
Chairman:MrViggoBondi
Norway
LabourAffairsCommittee
Chairman:MrArthurBowring
HongKong
Radio&NauticalSub-Committee
Chairman:CaptainPaulJones
Singapore
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