reviewannual 2011 - dieselduck policies/2011 isf annual review.pdf · reviewannual 2011 ics is the...

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.

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

2


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

3


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

4


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

5


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

6

KEY ISSUES IN 2011


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.

7


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

8

KEY ISSUES IN 2011


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.

9


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.

10

KEY ISSUES IN 2011


11


12


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

13


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

14


15


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.

16


OverloadingofContainers

ICSandtheWorldShippingCouncil(WSC)havedevelopedSafeTransportofContainersbySea,GuidelinesonIndustryBestPractices,withaviewtominimisingthedangerstocontainershipsandtheircrews.TheGuidelineshavebeenhighlyregardedand,in2010,IMOrecommendedthatflagstatesshouldmakethemacarriagerequirement.Todate,however,theGuidelineshavesofarhadlittlediscernibleeffectonreducingtheincidenceofshippersprovidingincorrectcontainerweights,oronensuringthatmarineterminalsverifytheweightofloadedcontainersagainstthemanifest.

Intheabsenceofalegalrequirementthatmarineterminaloperatorsperformaweighingfunctionforallloadedcontainersbeforevesselloading,itseemslikelythatasubstantialnumberofcontainerswillcontinuetogounweighedandthatoverweightcontainerswillcontinuetoposearisktosafeshipoperations,toships’crew,andtootherpersonnelinthetransportchain.

InDecember2010,ICSandWSCproposed,inastatementtotheIMOMaritimeSafetyCommittee,thatIMOshouldestablishauniversalinternationalregulatoryrequirementthatexportcargocontainersmustbeweighedbythemarineterminaluponreceiptandbeforevesselloading,andthattheactualcontainerweightsbemadeavailabletothevesseloperatorandusedforvesselstowageplanning.Itishopedthatdetailedproposalswillbeprogressedin2011.

17


18


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

19


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.

20


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

21


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

22


23


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.

24


25


26


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

27


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

28


29


30


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

31


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.

32


33


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.

34


35


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

36


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.

37


38


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.

39


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

40


41


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

42


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.

43


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.

44


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

45


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.

46


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.

47

ICSExecutiveCommitteeandISFCouncil2010/11

ICSExecutiveCommittee

ChairmanMrSpyrosMPolemisAustraliaMrNoelHartCyprusCaptainDirkFryDenmarkMrCarstenMortensenFinlandMrJanHansesFranceMrChristianGarinGermanyMrFrankLeonhardtGreeceMrAnastasiosPapagiannopoulosHongKongMrRobertHoJapanMrHiroshiHattoriLiberiaMrMarkMartecchiniMexicoMrLuisOcejoNetherlandsMrsKarinOrselNorwayMrTrygveSeglemSwedenMrLarsHöglundUnitedKingdomMrMichaelParkerUnitedStatesMrJosephCox(co-opted)

ISFCouncil

PresidentMrSpyrosMPolemisAustraliaMsTeresaHatchBahamasMrChrisOliverBelgiumMrNicolasSaverysBrazilMrPauloSergiodeMelloCottaCanadaMrBruceBowieChileMrErichStrelowChinaMrLiShanminCyprusCaptainDirkFryDenmarkMrLeifKristianNielsenFinlandMrOlofWidenFranceMrChristianGarinGermanyMsUtaOrdemannGreeceMrAnastasiosPapagiannopoulosHongKongMrArthurBowringIndiaMrSabyasachiHajaraIrelandCaptainEddieKeaneIsleofManMrDavidOldfieldItalyMrStefanoMessinaJapanMrMitsuoNakamotoKoreaMrYoung-MooKimKuwaitCaptainSaadAl-MatouqLiberiaMrJosephLudwiczakMexicoMrLuisOcejoNetherlandsMrsKarinOrselNorwayMrTrygveSeglemPhilippinesMrCarlosSalinasSpainMrManuelCarlierSwedenMrPerCronérTurkeyMrTamerKiranUnitedKingdomMrMarkBrownriggUnitedStatesMrJosephCox


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

48


reviewannual 2011 - dieselduck policies/2011 isf annual review.pdf · reviewannual 2011 ics is the...

Documents