the role of flag administration in shipping...
TRANSCRIPT
The Role of Flag Administration
in Shipping Industry
ndashEnforcement of International
Rules amp Standards
Greg Maj
General Manager and Chief Registrar
Liberian International Ship amp Corporate Registry
FLAG STATES and SHIPPING INDUSTRYhellip SUMMARY
Shipping Industry in Global Economy ndash KEY FACTS
COMPLEXITY of Regulatory Setting Affecting Shipping
Role of FLAG STATES in Shipping
IMPACT of Flag States on Global Environment Protection
Environmental PERFORMANCE of Shipping Industry
50000+ merchant ships trade internationally
150 ndash number of Flag States
90 of world trade is carried by the international shipping industry
1000000+ ndash number of seafarers of virtually every nationality
The most energy efficient mode of transport per unit of cargo carried
Shipping is the life blood of the global economy Without shipping intercontinental
trade the bulk transport of raw materials and the importexport of affordable
food and manufactured goods on the scale necessary for the modern world would
not be possible - half the world would starve and the other half would freeze (ICS)
Shipping Industry in Global Economy ndash KEY FACTS
Shipping is one of the most regulated industries
SOLAS MARPOL COLREG STCW MLChellip WRC BWT Arctic Code
Complexity and global nature
Multitude of Stakeholders
International organizations coastal states flag states governmental
agencies politicians public-private environmental groups shippers
carriers manufactures classification societies lobbying groupshellip
Regulatory policies are sometimes conflicting or competing with other
since Stakeholders have different agendas
IMO EU Regional Groups (eg Baltic States) USA (USCG EPA
California NY Great Lakes)
COMPLEXITY OF REGULATORY SETTING
COMPLEXITY OF REGULATORY OVERSIGHT
Are Flag States
relevant in the 21st
Century
Role of Flag State
Nationality amp Certification
Registered Vessel is given nationality of the Flag State
and is enabled to trade internationally
Enforcement of International Rules amp Standards
Implementation of the national and international maritime law
conventions and regulations
Objective Safety and Quality of Life At Sea
and
Environment Protection
Perfecting shipping financing system
Maintenance of public record of ship mortgages Providing added
security to lenders and their assets
Panama 22
LIBERIA 1254000 vessels200 MIL DWT
Marshall Is 8
Hong Kong 8
Singapore 5 Greece 5
Malta 5
Bahamas 4
China PR 4
Cyprus 2
Other 245
Market-share of World Fleet By Country Of Registry (DWT Tons 2012)
Source ISL Shipping Statistics Yearbook (2012)
Dominance of Open Registries
What is Open Registry
Open registries ndash A blessing to the global economy
According to The Center for Freedom and Prosperity Foundation
study analyzing the impact of open registries on the global shipping
market they have boosted international trade and the world economy
by reducing shipping costs and increasing efficiency in the industry
Open Registries vs National Registries ndash not relevant question
GOOD QUALITY FLAGS vs BAD FLAGS ndash it is the right question
How to measure Flag performance
Ship Registries the Good and the Bad
Safety Record amp Reputation ndash Collisions Fire Grounding Death
Pollution Record ndash
Water Oil Chemical Sewage Non-indigenous Species TBT Air Carbon Sox NOx
Port State Control ndash Detention and Interventions
ICS Shipping Industry Guidelines on Flag State Performance
Customer Service and 247 availability
Price
FLAG STATES ndash How To Measure Their Performance
InsuranceUnderwriters records ndash Claims and loss values
Crew Welfare ndash Personal injury Death Abandonment Unpaid Wages Benefits
Crew competency assessment
Enforceability of Mortgage during admiralty proceedings in foreign jurisdictions
Charterers Assessment Vetting Performance
Double Taxation Agreements
Participation in the international regulatory forums with timely ratification and
implementation of internationally accepted standards
Security initiatives
Innovation and efforts to improve efficiencies and cost effectiveness
Participation and Disclosure of results from IMOrsquos Voluntary Member State Audit
FLAG STATES ndash Essential Factors of Performance Measurement
FLAG STATES ndash PRICE VS COST PRICE VS VALUE
The COST of a Flag State is typically less than 05 of the vesselrsquos
OPEX
Shipowners often look just at the PRICE of initial flagging and recurring
fees
The common opinion is ldquoThe FLAGS are ALL THE SAMErdquo
The PRICE vs VALUE is the key
PAY ATTENTION TO WHAT YOU GET IN RETURN - what is crucial is
what support you are going to get after you buy the flag
(hellipor you and your staff are going to get stuck with a flag you will curse)
FLAG STATES ndash PRICE VS COST PRICE VS VALUE
COST ANALYSIS
non-responsive maritime administration detentions delays off-hire
repatriating stowaways
accidents claims caused by crew in-competence
time consuming inspections hidden fees and expenses
PRICE ANALYSIS
Competitive Prices
Taxation
Average Fleet Age lt 13 years
Top Tier Records
Tokyo MOU
Paris MOU ndash Low Risk Flag
US Coast Guard ndash QUALSHIP 21
Top Ranking in Flag State Performance Table
As determined by the Round table of International Shipping Associations
BIMCO
INTERCARGO
INTERTANKO
INTERNATIONAL CHAMBER OF SHIPPING(Liberian Shipowners Council-member of ICS)
INTERNATIONAL SHIPPING FEDERATION
OCIMF SIRE
RIGHTSHIP (HIGHEST POSSIBLE SCORE +5)
LIBERIAN REGISTRY QUALITY PERFORMANCE RANKING
PSC Detentio
n Preventi
onBMP
Anti-Piracy
Training
Electronic
Certificates
SEASystem crew
certificatesExtended
Dry dock Program
MLC Verificati
on
EFS -Green
Shipping Incentive
Harmonized Audits
Initiatives Developed
Exclusively by the
Liberian Registry
Full range of vessel and
corporate registration
services
247 support
Worldwide network of offices
and inspectorsauditors
LIBERIA - innovation quality and partnership
Flag States
Vetting Charterer
Inspections
PSC Regimes
LSC Owners
Assoc
Under-writers
Multi-National
Legislative Efforts
Class Societies
FLAG STATES ndash Shaping Regulatory Environment
Become involvedhellip
Participate in
Regulatory Debateshellip
Ask more from your
Flag State
LIBERIA
IMO Council Member
Maritime Safety Committee (MSC)
The Marine Environment Protection Committee (MEPC)
Periodical meetings with ROrsquos IACS Members
Continuous dialogue with Liberian Shipownersrsquo Council
Daily contact with PSC authorities
Participation in international conferences
Workshops for owners managers crewing agents (ISPS MLC WRChellip)
Testing Ballast Water Treatment Systems
FLAG STATES ndash Shaping Regulatory Environment
1 Adopting a convention
Participation in development process
2 Entry into force
Each convention includes appropriate provisions stipulating conditions which
have to be met before it enters into force A portion of world fleet tonnage or
minimum number of members
3 Ratification
It is the precursor of effective implementation of IMO instruments
4 Enforcement
The enforcement of IMO conventions depends upon the Governments of Member
Parties IMO Regulations are implemented and applied to ships on a global basis
through a combination of flag state enforcement and Port State Cintrol
IMO vs FLAG STATES ndash Implementation of Conventions
REDUCTION IN MAJOR OIL SPILLS
Over the last two and a half decades the average
number of spills greater than 7 tonnes has progressively
reduced by half
In terms of the volume of oil spilt the figures for a particular year may be severely
distorted by a single large incident
Concerns of various stakeholders about environmental impact byshipping related activities
High Fuel cost accounts for over 50 of total running costs
Change of shipbuilding philosophy since 2012
Eco Vessels - creating a two-tier market gaining the competitiveadvantage
Ships will gain very significantly from efficiency improvements
SHIPPING and ENVIRONMENTAL CONCERNSndash Shaping Regulatory Environment
livestock account for a significant proportion of greenhouse gas (GHG)
emissions and global consumption of livestock products is growing rapidly -
CH 4 NH 3 N 2 O
in the United States and the other developed countries CO2 emissions from
the use of motor vehicles alone (including emissions from feedstock recovery
processing and distribution and from vehicle manufacture) have constituted
up to 30 of the total CO2 emissions from the use of all fossil fuels
Chlorofluorocarbon - CFC
Freon (CF2Cl2) - CFC-12
Methane - CH4
Carbon monoxide - CO
Carbon dioxide - CO2
Hydrogen - H2
Methanol - MeOH
POLLUTION CONTROL
Methyl tertiary butyl ether -
MTBE
Nitrous oxide - N2O
Nitrogen oxides - NOx
Ozone - O3
Sulfur oxides - SOx
Sulfur oxides - SOx
Green Technology Location on Vessel
GREEN SHIP INNOVATION
Innovative environmental retrofit finance program designed to reduce global carbon emmissions enhance the Liberian fleet efficiency and competivness and promote a green Liberian fleet
Partnership with Efficient Ship Finance (ESF) a US based speciality ship finance firm Annual operating expense reduced additionally through lowered Registration Fees in
Liberia- 1st YEAR 50 annual tonnage tax discount- 2nd YEAR 25 annual tonnage tax discount- 3rd YEAR 25 annual tonnage tax discount
Liberiarsquos Partnership Program for Eco Upgrade Financing
Shipping is the least environmentally damaging form of commercial transport
and compared with land based industry is a comparatively minor contributor
to marine pollution from human activities
There has been a substantial reduction in marine pollution over the last 15
years especially with regard to the amount of oil spilled into the sea despite
a massive increase in world sea borne trade
Surprising perspective
In macro scale shipping is considered a marginal sources of emissions of
GHG Shipping is responsible for about 25-3 of marine pollution However
it is not a reason to stop improving our environmental performance
ENVIRONMENTAL PERFORMANCE OF SHIPPING INDUSTRY
ldquoQUALITY is never an accident
it is always the result of high intention
sincere effort intelligent direction and
skillful execution it represents the
wise choice of many alternativesrdquo
-William A Foster
FLAG STATES and SHIPPING INDUSTRYhellip SUMMARY
Shipping Industry in Global Economy ndash KEY FACTS
COMPLEXITY of Regulatory Setting Affecting Shipping
Role of FLAG STATES in Shipping
IMPACT of Flag States on Global Environment Protection
Environmental PERFORMANCE of Shipping Industry
50000+ merchant ships trade internationally
150 ndash number of Flag States
90 of world trade is carried by the international shipping industry
1000000+ ndash number of seafarers of virtually every nationality
The most energy efficient mode of transport per unit of cargo carried
Shipping is the life blood of the global economy Without shipping intercontinental
trade the bulk transport of raw materials and the importexport of affordable
food and manufactured goods on the scale necessary for the modern world would
not be possible - half the world would starve and the other half would freeze (ICS)
Shipping Industry in Global Economy ndash KEY FACTS
Shipping is one of the most regulated industries
SOLAS MARPOL COLREG STCW MLChellip WRC BWT Arctic Code
Complexity and global nature
Multitude of Stakeholders
International organizations coastal states flag states governmental
agencies politicians public-private environmental groups shippers
carriers manufactures classification societies lobbying groupshellip
Regulatory policies are sometimes conflicting or competing with other
since Stakeholders have different agendas
IMO EU Regional Groups (eg Baltic States) USA (USCG EPA
California NY Great Lakes)
COMPLEXITY OF REGULATORY SETTING
COMPLEXITY OF REGULATORY OVERSIGHT
Are Flag States
relevant in the 21st
Century
Role of Flag State
Nationality amp Certification
Registered Vessel is given nationality of the Flag State
and is enabled to trade internationally
Enforcement of International Rules amp Standards
Implementation of the national and international maritime law
conventions and regulations
Objective Safety and Quality of Life At Sea
and
Environment Protection
Perfecting shipping financing system
Maintenance of public record of ship mortgages Providing added
security to lenders and their assets
Panama 22
LIBERIA 1254000 vessels200 MIL DWT
Marshall Is 8
Hong Kong 8
Singapore 5 Greece 5
Malta 5
Bahamas 4
China PR 4
Cyprus 2
Other 245
Market-share of World Fleet By Country Of Registry (DWT Tons 2012)
Source ISL Shipping Statistics Yearbook (2012)
Dominance of Open Registries
What is Open Registry
Open registries ndash A blessing to the global economy
According to The Center for Freedom and Prosperity Foundation
study analyzing the impact of open registries on the global shipping
market they have boosted international trade and the world economy
by reducing shipping costs and increasing efficiency in the industry
Open Registries vs National Registries ndash not relevant question
GOOD QUALITY FLAGS vs BAD FLAGS ndash it is the right question
How to measure Flag performance
Ship Registries the Good and the Bad
Safety Record amp Reputation ndash Collisions Fire Grounding Death
Pollution Record ndash
Water Oil Chemical Sewage Non-indigenous Species TBT Air Carbon Sox NOx
Port State Control ndash Detention and Interventions
ICS Shipping Industry Guidelines on Flag State Performance
Customer Service and 247 availability
Price
FLAG STATES ndash How To Measure Their Performance
InsuranceUnderwriters records ndash Claims and loss values
Crew Welfare ndash Personal injury Death Abandonment Unpaid Wages Benefits
Crew competency assessment
Enforceability of Mortgage during admiralty proceedings in foreign jurisdictions
Charterers Assessment Vetting Performance
Double Taxation Agreements
Participation in the international regulatory forums with timely ratification and
implementation of internationally accepted standards
Security initiatives
Innovation and efforts to improve efficiencies and cost effectiveness
Participation and Disclosure of results from IMOrsquos Voluntary Member State Audit
FLAG STATES ndash Essential Factors of Performance Measurement
FLAG STATES ndash PRICE VS COST PRICE VS VALUE
The COST of a Flag State is typically less than 05 of the vesselrsquos
OPEX
Shipowners often look just at the PRICE of initial flagging and recurring
fees
The common opinion is ldquoThe FLAGS are ALL THE SAMErdquo
The PRICE vs VALUE is the key
PAY ATTENTION TO WHAT YOU GET IN RETURN - what is crucial is
what support you are going to get after you buy the flag
(hellipor you and your staff are going to get stuck with a flag you will curse)
FLAG STATES ndash PRICE VS COST PRICE VS VALUE
COST ANALYSIS
non-responsive maritime administration detentions delays off-hire
repatriating stowaways
accidents claims caused by crew in-competence
time consuming inspections hidden fees and expenses
PRICE ANALYSIS
Competitive Prices
Taxation
Average Fleet Age lt 13 years
Top Tier Records
Tokyo MOU
Paris MOU ndash Low Risk Flag
US Coast Guard ndash QUALSHIP 21
Top Ranking in Flag State Performance Table
As determined by the Round table of International Shipping Associations
BIMCO
INTERCARGO
INTERTANKO
INTERNATIONAL CHAMBER OF SHIPPING(Liberian Shipowners Council-member of ICS)
INTERNATIONAL SHIPPING FEDERATION
OCIMF SIRE
RIGHTSHIP (HIGHEST POSSIBLE SCORE +5)
LIBERIAN REGISTRY QUALITY PERFORMANCE RANKING
PSC Detentio
n Preventi
onBMP
Anti-Piracy
Training
Electronic
Certificates
SEASystem crew
certificatesExtended
Dry dock Program
MLC Verificati
on
EFS -Green
Shipping Incentive
Harmonized Audits
Initiatives Developed
Exclusively by the
Liberian Registry
Full range of vessel and
corporate registration
services
247 support
Worldwide network of offices
and inspectorsauditors
LIBERIA - innovation quality and partnership
Flag States
Vetting Charterer
Inspections
PSC Regimes
LSC Owners
Assoc
Under-writers
Multi-National
Legislative Efforts
Class Societies
FLAG STATES ndash Shaping Regulatory Environment
Become involvedhellip
Participate in
Regulatory Debateshellip
Ask more from your
Flag State
LIBERIA
IMO Council Member
Maritime Safety Committee (MSC)
The Marine Environment Protection Committee (MEPC)
Periodical meetings with ROrsquos IACS Members
Continuous dialogue with Liberian Shipownersrsquo Council
Daily contact with PSC authorities
Participation in international conferences
Workshops for owners managers crewing agents (ISPS MLC WRChellip)
Testing Ballast Water Treatment Systems
FLAG STATES ndash Shaping Regulatory Environment
1 Adopting a convention
Participation in development process
2 Entry into force
Each convention includes appropriate provisions stipulating conditions which
have to be met before it enters into force A portion of world fleet tonnage or
minimum number of members
3 Ratification
It is the precursor of effective implementation of IMO instruments
4 Enforcement
The enforcement of IMO conventions depends upon the Governments of Member
Parties IMO Regulations are implemented and applied to ships on a global basis
through a combination of flag state enforcement and Port State Cintrol
IMO vs FLAG STATES ndash Implementation of Conventions
REDUCTION IN MAJOR OIL SPILLS
Over the last two and a half decades the average
number of spills greater than 7 tonnes has progressively
reduced by half
In terms of the volume of oil spilt the figures for a particular year may be severely
distorted by a single large incident
Concerns of various stakeholders about environmental impact byshipping related activities
High Fuel cost accounts for over 50 of total running costs
Change of shipbuilding philosophy since 2012
Eco Vessels - creating a two-tier market gaining the competitiveadvantage
Ships will gain very significantly from efficiency improvements
SHIPPING and ENVIRONMENTAL CONCERNSndash Shaping Regulatory Environment
livestock account for a significant proportion of greenhouse gas (GHG)
emissions and global consumption of livestock products is growing rapidly -
CH 4 NH 3 N 2 O
in the United States and the other developed countries CO2 emissions from
the use of motor vehicles alone (including emissions from feedstock recovery
processing and distribution and from vehicle manufacture) have constituted
up to 30 of the total CO2 emissions from the use of all fossil fuels
Chlorofluorocarbon - CFC
Freon (CF2Cl2) - CFC-12
Methane - CH4
Carbon monoxide - CO
Carbon dioxide - CO2
Hydrogen - H2
Methanol - MeOH
POLLUTION CONTROL
Methyl tertiary butyl ether -
MTBE
Nitrous oxide - N2O
Nitrogen oxides - NOx
Ozone - O3
Sulfur oxides - SOx
Sulfur oxides - SOx
Green Technology Location on Vessel
GREEN SHIP INNOVATION
Innovative environmental retrofit finance program designed to reduce global carbon emmissions enhance the Liberian fleet efficiency and competivness and promote a green Liberian fleet
Partnership with Efficient Ship Finance (ESF) a US based speciality ship finance firm Annual operating expense reduced additionally through lowered Registration Fees in
Liberia- 1st YEAR 50 annual tonnage tax discount- 2nd YEAR 25 annual tonnage tax discount- 3rd YEAR 25 annual tonnage tax discount
Liberiarsquos Partnership Program for Eco Upgrade Financing
Shipping is the least environmentally damaging form of commercial transport
and compared with land based industry is a comparatively minor contributor
to marine pollution from human activities
There has been a substantial reduction in marine pollution over the last 15
years especially with regard to the amount of oil spilled into the sea despite
a massive increase in world sea borne trade
Surprising perspective
In macro scale shipping is considered a marginal sources of emissions of
GHG Shipping is responsible for about 25-3 of marine pollution However
it is not a reason to stop improving our environmental performance
ENVIRONMENTAL PERFORMANCE OF SHIPPING INDUSTRY
ldquoQUALITY is never an accident
it is always the result of high intention
sincere effort intelligent direction and
skillful execution it represents the
wise choice of many alternativesrdquo
-William A Foster
50000+ merchant ships trade internationally
150 ndash number of Flag States
90 of world trade is carried by the international shipping industry
1000000+ ndash number of seafarers of virtually every nationality
The most energy efficient mode of transport per unit of cargo carried
Shipping is the life blood of the global economy Without shipping intercontinental
trade the bulk transport of raw materials and the importexport of affordable
food and manufactured goods on the scale necessary for the modern world would
not be possible - half the world would starve and the other half would freeze (ICS)
Shipping Industry in Global Economy ndash KEY FACTS
Shipping is one of the most regulated industries
SOLAS MARPOL COLREG STCW MLChellip WRC BWT Arctic Code
Complexity and global nature
Multitude of Stakeholders
International organizations coastal states flag states governmental
agencies politicians public-private environmental groups shippers
carriers manufactures classification societies lobbying groupshellip
Regulatory policies are sometimes conflicting or competing with other
since Stakeholders have different agendas
IMO EU Regional Groups (eg Baltic States) USA (USCG EPA
California NY Great Lakes)
COMPLEXITY OF REGULATORY SETTING
COMPLEXITY OF REGULATORY OVERSIGHT
Are Flag States
relevant in the 21st
Century
Role of Flag State
Nationality amp Certification
Registered Vessel is given nationality of the Flag State
and is enabled to trade internationally
Enforcement of International Rules amp Standards
Implementation of the national and international maritime law
conventions and regulations
Objective Safety and Quality of Life At Sea
and
Environment Protection
Perfecting shipping financing system
Maintenance of public record of ship mortgages Providing added
security to lenders and their assets
Panama 22
LIBERIA 1254000 vessels200 MIL DWT
Marshall Is 8
Hong Kong 8
Singapore 5 Greece 5
Malta 5
Bahamas 4
China PR 4
Cyprus 2
Other 245
Market-share of World Fleet By Country Of Registry (DWT Tons 2012)
Source ISL Shipping Statistics Yearbook (2012)
Dominance of Open Registries
What is Open Registry
Open registries ndash A blessing to the global economy
According to The Center for Freedom and Prosperity Foundation
study analyzing the impact of open registries on the global shipping
market they have boosted international trade and the world economy
by reducing shipping costs and increasing efficiency in the industry
Open Registries vs National Registries ndash not relevant question
GOOD QUALITY FLAGS vs BAD FLAGS ndash it is the right question
How to measure Flag performance
Ship Registries the Good and the Bad
Safety Record amp Reputation ndash Collisions Fire Grounding Death
Pollution Record ndash
Water Oil Chemical Sewage Non-indigenous Species TBT Air Carbon Sox NOx
Port State Control ndash Detention and Interventions
ICS Shipping Industry Guidelines on Flag State Performance
Customer Service and 247 availability
Price
FLAG STATES ndash How To Measure Their Performance
InsuranceUnderwriters records ndash Claims and loss values
Crew Welfare ndash Personal injury Death Abandonment Unpaid Wages Benefits
Crew competency assessment
Enforceability of Mortgage during admiralty proceedings in foreign jurisdictions
Charterers Assessment Vetting Performance
Double Taxation Agreements
Participation in the international regulatory forums with timely ratification and
implementation of internationally accepted standards
Security initiatives
Innovation and efforts to improve efficiencies and cost effectiveness
Participation and Disclosure of results from IMOrsquos Voluntary Member State Audit
FLAG STATES ndash Essential Factors of Performance Measurement
FLAG STATES ndash PRICE VS COST PRICE VS VALUE
The COST of a Flag State is typically less than 05 of the vesselrsquos
OPEX
Shipowners often look just at the PRICE of initial flagging and recurring
fees
The common opinion is ldquoThe FLAGS are ALL THE SAMErdquo
The PRICE vs VALUE is the key
PAY ATTENTION TO WHAT YOU GET IN RETURN - what is crucial is
what support you are going to get after you buy the flag
(hellipor you and your staff are going to get stuck with a flag you will curse)
FLAG STATES ndash PRICE VS COST PRICE VS VALUE
COST ANALYSIS
non-responsive maritime administration detentions delays off-hire
repatriating stowaways
accidents claims caused by crew in-competence
time consuming inspections hidden fees and expenses
PRICE ANALYSIS
Competitive Prices
Taxation
Average Fleet Age lt 13 years
Top Tier Records
Tokyo MOU
Paris MOU ndash Low Risk Flag
US Coast Guard ndash QUALSHIP 21
Top Ranking in Flag State Performance Table
As determined by the Round table of International Shipping Associations
BIMCO
INTERCARGO
INTERTANKO
INTERNATIONAL CHAMBER OF SHIPPING(Liberian Shipowners Council-member of ICS)
INTERNATIONAL SHIPPING FEDERATION
OCIMF SIRE
RIGHTSHIP (HIGHEST POSSIBLE SCORE +5)
LIBERIAN REGISTRY QUALITY PERFORMANCE RANKING
PSC Detentio
n Preventi
onBMP
Anti-Piracy
Training
Electronic
Certificates
SEASystem crew
certificatesExtended
Dry dock Program
MLC Verificati
on
EFS -Green
Shipping Incentive
Harmonized Audits
Initiatives Developed
Exclusively by the
Liberian Registry
Full range of vessel and
corporate registration
services
247 support
Worldwide network of offices
and inspectorsauditors
LIBERIA - innovation quality and partnership
Flag States
Vetting Charterer
Inspections
PSC Regimes
LSC Owners
Assoc
Under-writers
Multi-National
Legislative Efforts
Class Societies
FLAG STATES ndash Shaping Regulatory Environment
Become involvedhellip
Participate in
Regulatory Debateshellip
Ask more from your
Flag State
LIBERIA
IMO Council Member
Maritime Safety Committee (MSC)
The Marine Environment Protection Committee (MEPC)
Periodical meetings with ROrsquos IACS Members
Continuous dialogue with Liberian Shipownersrsquo Council
Daily contact with PSC authorities
Participation in international conferences
Workshops for owners managers crewing agents (ISPS MLC WRChellip)
Testing Ballast Water Treatment Systems
FLAG STATES ndash Shaping Regulatory Environment
1 Adopting a convention
Participation in development process
2 Entry into force
Each convention includes appropriate provisions stipulating conditions which
have to be met before it enters into force A portion of world fleet tonnage or
minimum number of members
3 Ratification
It is the precursor of effective implementation of IMO instruments
4 Enforcement
The enforcement of IMO conventions depends upon the Governments of Member
Parties IMO Regulations are implemented and applied to ships on a global basis
through a combination of flag state enforcement and Port State Cintrol
IMO vs FLAG STATES ndash Implementation of Conventions
REDUCTION IN MAJOR OIL SPILLS
Over the last two and a half decades the average
number of spills greater than 7 tonnes has progressively
reduced by half
In terms of the volume of oil spilt the figures for a particular year may be severely
distorted by a single large incident
Concerns of various stakeholders about environmental impact byshipping related activities
High Fuel cost accounts for over 50 of total running costs
Change of shipbuilding philosophy since 2012
Eco Vessels - creating a two-tier market gaining the competitiveadvantage
Ships will gain very significantly from efficiency improvements
SHIPPING and ENVIRONMENTAL CONCERNSndash Shaping Regulatory Environment
livestock account for a significant proportion of greenhouse gas (GHG)
emissions and global consumption of livestock products is growing rapidly -
CH 4 NH 3 N 2 O
in the United States and the other developed countries CO2 emissions from
the use of motor vehicles alone (including emissions from feedstock recovery
processing and distribution and from vehicle manufacture) have constituted
up to 30 of the total CO2 emissions from the use of all fossil fuels
Chlorofluorocarbon - CFC
Freon (CF2Cl2) - CFC-12
Methane - CH4
Carbon monoxide - CO
Carbon dioxide - CO2
Hydrogen - H2
Methanol - MeOH
POLLUTION CONTROL
Methyl tertiary butyl ether -
MTBE
Nitrous oxide - N2O
Nitrogen oxides - NOx
Ozone - O3
Sulfur oxides - SOx
Sulfur oxides - SOx
Green Technology Location on Vessel
GREEN SHIP INNOVATION
Innovative environmental retrofit finance program designed to reduce global carbon emmissions enhance the Liberian fleet efficiency and competivness and promote a green Liberian fleet
Partnership with Efficient Ship Finance (ESF) a US based speciality ship finance firm Annual operating expense reduced additionally through lowered Registration Fees in
Liberia- 1st YEAR 50 annual tonnage tax discount- 2nd YEAR 25 annual tonnage tax discount- 3rd YEAR 25 annual tonnage tax discount
Liberiarsquos Partnership Program for Eco Upgrade Financing
Shipping is the least environmentally damaging form of commercial transport
and compared with land based industry is a comparatively minor contributor
to marine pollution from human activities
There has been a substantial reduction in marine pollution over the last 15
years especially with regard to the amount of oil spilled into the sea despite
a massive increase in world sea borne trade
Surprising perspective
In macro scale shipping is considered a marginal sources of emissions of
GHG Shipping is responsible for about 25-3 of marine pollution However
it is not a reason to stop improving our environmental performance
ENVIRONMENTAL PERFORMANCE OF SHIPPING INDUSTRY
ldquoQUALITY is never an accident
it is always the result of high intention
sincere effort intelligent direction and
skillful execution it represents the
wise choice of many alternativesrdquo
-William A Foster
Shipping is one of the most regulated industries
SOLAS MARPOL COLREG STCW MLChellip WRC BWT Arctic Code
Complexity and global nature
Multitude of Stakeholders
International organizations coastal states flag states governmental
agencies politicians public-private environmental groups shippers
carriers manufactures classification societies lobbying groupshellip
Regulatory policies are sometimes conflicting or competing with other
since Stakeholders have different agendas
IMO EU Regional Groups (eg Baltic States) USA (USCG EPA
California NY Great Lakes)
COMPLEXITY OF REGULATORY SETTING
COMPLEXITY OF REGULATORY OVERSIGHT
Are Flag States
relevant in the 21st
Century
Role of Flag State
Nationality amp Certification
Registered Vessel is given nationality of the Flag State
and is enabled to trade internationally
Enforcement of International Rules amp Standards
Implementation of the national and international maritime law
conventions and regulations
Objective Safety and Quality of Life At Sea
and
Environment Protection
Perfecting shipping financing system
Maintenance of public record of ship mortgages Providing added
security to lenders and their assets
Panama 22
LIBERIA 1254000 vessels200 MIL DWT
Marshall Is 8
Hong Kong 8
Singapore 5 Greece 5
Malta 5
Bahamas 4
China PR 4
Cyprus 2
Other 245
Market-share of World Fleet By Country Of Registry (DWT Tons 2012)
Source ISL Shipping Statistics Yearbook (2012)
Dominance of Open Registries
What is Open Registry
Open registries ndash A blessing to the global economy
According to The Center for Freedom and Prosperity Foundation
study analyzing the impact of open registries on the global shipping
market they have boosted international trade and the world economy
by reducing shipping costs and increasing efficiency in the industry
Open Registries vs National Registries ndash not relevant question
GOOD QUALITY FLAGS vs BAD FLAGS ndash it is the right question
How to measure Flag performance
Ship Registries the Good and the Bad
Safety Record amp Reputation ndash Collisions Fire Grounding Death
Pollution Record ndash
Water Oil Chemical Sewage Non-indigenous Species TBT Air Carbon Sox NOx
Port State Control ndash Detention and Interventions
ICS Shipping Industry Guidelines on Flag State Performance
Customer Service and 247 availability
Price
FLAG STATES ndash How To Measure Their Performance
InsuranceUnderwriters records ndash Claims and loss values
Crew Welfare ndash Personal injury Death Abandonment Unpaid Wages Benefits
Crew competency assessment
Enforceability of Mortgage during admiralty proceedings in foreign jurisdictions
Charterers Assessment Vetting Performance
Double Taxation Agreements
Participation in the international regulatory forums with timely ratification and
implementation of internationally accepted standards
Security initiatives
Innovation and efforts to improve efficiencies and cost effectiveness
Participation and Disclosure of results from IMOrsquos Voluntary Member State Audit
FLAG STATES ndash Essential Factors of Performance Measurement
FLAG STATES ndash PRICE VS COST PRICE VS VALUE
The COST of a Flag State is typically less than 05 of the vesselrsquos
OPEX
Shipowners often look just at the PRICE of initial flagging and recurring
fees
The common opinion is ldquoThe FLAGS are ALL THE SAMErdquo
The PRICE vs VALUE is the key
PAY ATTENTION TO WHAT YOU GET IN RETURN - what is crucial is
what support you are going to get after you buy the flag
(hellipor you and your staff are going to get stuck with a flag you will curse)
FLAG STATES ndash PRICE VS COST PRICE VS VALUE
COST ANALYSIS
non-responsive maritime administration detentions delays off-hire
repatriating stowaways
accidents claims caused by crew in-competence
time consuming inspections hidden fees and expenses
PRICE ANALYSIS
Competitive Prices
Taxation
Average Fleet Age lt 13 years
Top Tier Records
Tokyo MOU
Paris MOU ndash Low Risk Flag
US Coast Guard ndash QUALSHIP 21
Top Ranking in Flag State Performance Table
As determined by the Round table of International Shipping Associations
BIMCO
INTERCARGO
INTERTANKO
INTERNATIONAL CHAMBER OF SHIPPING(Liberian Shipowners Council-member of ICS)
INTERNATIONAL SHIPPING FEDERATION
OCIMF SIRE
RIGHTSHIP (HIGHEST POSSIBLE SCORE +5)
LIBERIAN REGISTRY QUALITY PERFORMANCE RANKING
PSC Detentio
n Preventi
onBMP
Anti-Piracy
Training
Electronic
Certificates
SEASystem crew
certificatesExtended
Dry dock Program
MLC Verificati
on
EFS -Green
Shipping Incentive
Harmonized Audits
Initiatives Developed
Exclusively by the
Liberian Registry
Full range of vessel and
corporate registration
services
247 support
Worldwide network of offices
and inspectorsauditors
LIBERIA - innovation quality and partnership
Flag States
Vetting Charterer
Inspections
PSC Regimes
LSC Owners
Assoc
Under-writers
Multi-National
Legislative Efforts
Class Societies
FLAG STATES ndash Shaping Regulatory Environment
Become involvedhellip
Participate in
Regulatory Debateshellip
Ask more from your
Flag State
LIBERIA
IMO Council Member
Maritime Safety Committee (MSC)
The Marine Environment Protection Committee (MEPC)
Periodical meetings with ROrsquos IACS Members
Continuous dialogue with Liberian Shipownersrsquo Council
Daily contact with PSC authorities
Participation in international conferences
Workshops for owners managers crewing agents (ISPS MLC WRChellip)
Testing Ballast Water Treatment Systems
FLAG STATES ndash Shaping Regulatory Environment
1 Adopting a convention
Participation in development process
2 Entry into force
Each convention includes appropriate provisions stipulating conditions which
have to be met before it enters into force A portion of world fleet tonnage or
minimum number of members
3 Ratification
It is the precursor of effective implementation of IMO instruments
4 Enforcement
The enforcement of IMO conventions depends upon the Governments of Member
Parties IMO Regulations are implemented and applied to ships on a global basis
through a combination of flag state enforcement and Port State Cintrol
IMO vs FLAG STATES ndash Implementation of Conventions
REDUCTION IN MAJOR OIL SPILLS
Over the last two and a half decades the average
number of spills greater than 7 tonnes has progressively
reduced by half
In terms of the volume of oil spilt the figures for a particular year may be severely
distorted by a single large incident
Concerns of various stakeholders about environmental impact byshipping related activities
High Fuel cost accounts for over 50 of total running costs
Change of shipbuilding philosophy since 2012
Eco Vessels - creating a two-tier market gaining the competitiveadvantage
Ships will gain very significantly from efficiency improvements
SHIPPING and ENVIRONMENTAL CONCERNSndash Shaping Regulatory Environment
livestock account for a significant proportion of greenhouse gas (GHG)
emissions and global consumption of livestock products is growing rapidly -
CH 4 NH 3 N 2 O
in the United States and the other developed countries CO2 emissions from
the use of motor vehicles alone (including emissions from feedstock recovery
processing and distribution and from vehicle manufacture) have constituted
up to 30 of the total CO2 emissions from the use of all fossil fuels
Chlorofluorocarbon - CFC
Freon (CF2Cl2) - CFC-12
Methane - CH4
Carbon monoxide - CO
Carbon dioxide - CO2
Hydrogen - H2
Methanol - MeOH
POLLUTION CONTROL
Methyl tertiary butyl ether -
MTBE
Nitrous oxide - N2O
Nitrogen oxides - NOx
Ozone - O3
Sulfur oxides - SOx
Sulfur oxides - SOx
Green Technology Location on Vessel
GREEN SHIP INNOVATION
Innovative environmental retrofit finance program designed to reduce global carbon emmissions enhance the Liberian fleet efficiency and competivness and promote a green Liberian fleet
Partnership with Efficient Ship Finance (ESF) a US based speciality ship finance firm Annual operating expense reduced additionally through lowered Registration Fees in
Liberia- 1st YEAR 50 annual tonnage tax discount- 2nd YEAR 25 annual tonnage tax discount- 3rd YEAR 25 annual tonnage tax discount
Liberiarsquos Partnership Program for Eco Upgrade Financing
Shipping is the least environmentally damaging form of commercial transport
and compared with land based industry is a comparatively minor contributor
to marine pollution from human activities
There has been a substantial reduction in marine pollution over the last 15
years especially with regard to the amount of oil spilled into the sea despite
a massive increase in world sea borne trade
Surprising perspective
In macro scale shipping is considered a marginal sources of emissions of
GHG Shipping is responsible for about 25-3 of marine pollution However
it is not a reason to stop improving our environmental performance
ENVIRONMENTAL PERFORMANCE OF SHIPPING INDUSTRY
ldquoQUALITY is never an accident
it is always the result of high intention
sincere effort intelligent direction and
skillful execution it represents the
wise choice of many alternativesrdquo
-William A Foster
COMPLEXITY OF REGULATORY OVERSIGHT
Are Flag States
relevant in the 21st
Century
Role of Flag State
Nationality amp Certification
Registered Vessel is given nationality of the Flag State
and is enabled to trade internationally
Enforcement of International Rules amp Standards
Implementation of the national and international maritime law
conventions and regulations
Objective Safety and Quality of Life At Sea
and
Environment Protection
Perfecting shipping financing system
Maintenance of public record of ship mortgages Providing added
security to lenders and their assets
Panama 22
LIBERIA 1254000 vessels200 MIL DWT
Marshall Is 8
Hong Kong 8
Singapore 5 Greece 5
Malta 5
Bahamas 4
China PR 4
Cyprus 2
Other 245
Market-share of World Fleet By Country Of Registry (DWT Tons 2012)
Source ISL Shipping Statistics Yearbook (2012)
Dominance of Open Registries
What is Open Registry
Open registries ndash A blessing to the global economy
According to The Center for Freedom and Prosperity Foundation
study analyzing the impact of open registries on the global shipping
market they have boosted international trade and the world economy
by reducing shipping costs and increasing efficiency in the industry
Open Registries vs National Registries ndash not relevant question
GOOD QUALITY FLAGS vs BAD FLAGS ndash it is the right question
How to measure Flag performance
Ship Registries the Good and the Bad
Safety Record amp Reputation ndash Collisions Fire Grounding Death
Pollution Record ndash
Water Oil Chemical Sewage Non-indigenous Species TBT Air Carbon Sox NOx
Port State Control ndash Detention and Interventions
ICS Shipping Industry Guidelines on Flag State Performance
Customer Service and 247 availability
Price
FLAG STATES ndash How To Measure Their Performance
InsuranceUnderwriters records ndash Claims and loss values
Crew Welfare ndash Personal injury Death Abandonment Unpaid Wages Benefits
Crew competency assessment
Enforceability of Mortgage during admiralty proceedings in foreign jurisdictions
Charterers Assessment Vetting Performance
Double Taxation Agreements
Participation in the international regulatory forums with timely ratification and
implementation of internationally accepted standards
Security initiatives
Innovation and efforts to improve efficiencies and cost effectiveness
Participation and Disclosure of results from IMOrsquos Voluntary Member State Audit
FLAG STATES ndash Essential Factors of Performance Measurement
FLAG STATES ndash PRICE VS COST PRICE VS VALUE
The COST of a Flag State is typically less than 05 of the vesselrsquos
OPEX
Shipowners often look just at the PRICE of initial flagging and recurring
fees
The common opinion is ldquoThe FLAGS are ALL THE SAMErdquo
The PRICE vs VALUE is the key
PAY ATTENTION TO WHAT YOU GET IN RETURN - what is crucial is
what support you are going to get after you buy the flag
(hellipor you and your staff are going to get stuck with a flag you will curse)
FLAG STATES ndash PRICE VS COST PRICE VS VALUE
COST ANALYSIS
non-responsive maritime administration detentions delays off-hire
repatriating stowaways
accidents claims caused by crew in-competence
time consuming inspections hidden fees and expenses
PRICE ANALYSIS
Competitive Prices
Taxation
Average Fleet Age lt 13 years
Top Tier Records
Tokyo MOU
Paris MOU ndash Low Risk Flag
US Coast Guard ndash QUALSHIP 21
Top Ranking in Flag State Performance Table
As determined by the Round table of International Shipping Associations
BIMCO
INTERCARGO
INTERTANKO
INTERNATIONAL CHAMBER OF SHIPPING(Liberian Shipowners Council-member of ICS)
INTERNATIONAL SHIPPING FEDERATION
OCIMF SIRE
RIGHTSHIP (HIGHEST POSSIBLE SCORE +5)
LIBERIAN REGISTRY QUALITY PERFORMANCE RANKING
PSC Detentio
n Preventi
onBMP
Anti-Piracy
Training
Electronic
Certificates
SEASystem crew
certificatesExtended
Dry dock Program
MLC Verificati
on
EFS -Green
Shipping Incentive
Harmonized Audits
Initiatives Developed
Exclusively by the
Liberian Registry
Full range of vessel and
corporate registration
services
247 support
Worldwide network of offices
and inspectorsauditors
LIBERIA - innovation quality and partnership
Flag States
Vetting Charterer
Inspections
PSC Regimes
LSC Owners
Assoc
Under-writers
Multi-National
Legislative Efforts
Class Societies
FLAG STATES ndash Shaping Regulatory Environment
Become involvedhellip
Participate in
Regulatory Debateshellip
Ask more from your
Flag State
LIBERIA
IMO Council Member
Maritime Safety Committee (MSC)
The Marine Environment Protection Committee (MEPC)
Periodical meetings with ROrsquos IACS Members
Continuous dialogue with Liberian Shipownersrsquo Council
Daily contact with PSC authorities
Participation in international conferences
Workshops for owners managers crewing agents (ISPS MLC WRChellip)
Testing Ballast Water Treatment Systems
FLAG STATES ndash Shaping Regulatory Environment
1 Adopting a convention
Participation in development process
2 Entry into force
Each convention includes appropriate provisions stipulating conditions which
have to be met before it enters into force A portion of world fleet tonnage or
minimum number of members
3 Ratification
It is the precursor of effective implementation of IMO instruments
4 Enforcement
The enforcement of IMO conventions depends upon the Governments of Member
Parties IMO Regulations are implemented and applied to ships on a global basis
through a combination of flag state enforcement and Port State Cintrol
IMO vs FLAG STATES ndash Implementation of Conventions
REDUCTION IN MAJOR OIL SPILLS
Over the last two and a half decades the average
number of spills greater than 7 tonnes has progressively
reduced by half
In terms of the volume of oil spilt the figures for a particular year may be severely
distorted by a single large incident
Concerns of various stakeholders about environmental impact byshipping related activities
High Fuel cost accounts for over 50 of total running costs
Change of shipbuilding philosophy since 2012
Eco Vessels - creating a two-tier market gaining the competitiveadvantage
Ships will gain very significantly from efficiency improvements
SHIPPING and ENVIRONMENTAL CONCERNSndash Shaping Regulatory Environment
livestock account for a significant proportion of greenhouse gas (GHG)
emissions and global consumption of livestock products is growing rapidly -
CH 4 NH 3 N 2 O
in the United States and the other developed countries CO2 emissions from
the use of motor vehicles alone (including emissions from feedstock recovery
processing and distribution and from vehicle manufacture) have constituted
up to 30 of the total CO2 emissions from the use of all fossil fuels
Chlorofluorocarbon - CFC
Freon (CF2Cl2) - CFC-12
Methane - CH4
Carbon monoxide - CO
Carbon dioxide - CO2
Hydrogen - H2
Methanol - MeOH
POLLUTION CONTROL
Methyl tertiary butyl ether -
MTBE
Nitrous oxide - N2O
Nitrogen oxides - NOx
Ozone - O3
Sulfur oxides - SOx
Sulfur oxides - SOx
Green Technology Location on Vessel
GREEN SHIP INNOVATION
Innovative environmental retrofit finance program designed to reduce global carbon emmissions enhance the Liberian fleet efficiency and competivness and promote a green Liberian fleet
Partnership with Efficient Ship Finance (ESF) a US based speciality ship finance firm Annual operating expense reduced additionally through lowered Registration Fees in
Liberia- 1st YEAR 50 annual tonnage tax discount- 2nd YEAR 25 annual tonnage tax discount- 3rd YEAR 25 annual tonnage tax discount
Liberiarsquos Partnership Program for Eco Upgrade Financing
Shipping is the least environmentally damaging form of commercial transport
and compared with land based industry is a comparatively minor contributor
to marine pollution from human activities
There has been a substantial reduction in marine pollution over the last 15
years especially with regard to the amount of oil spilled into the sea despite
a massive increase in world sea borne trade
Surprising perspective
In macro scale shipping is considered a marginal sources of emissions of
GHG Shipping is responsible for about 25-3 of marine pollution However
it is not a reason to stop improving our environmental performance
ENVIRONMENTAL PERFORMANCE OF SHIPPING INDUSTRY
ldquoQUALITY is never an accident
it is always the result of high intention
sincere effort intelligent direction and
skillful execution it represents the
wise choice of many alternativesrdquo
-William A Foster
Role of Flag State
Nationality amp Certification
Registered Vessel is given nationality of the Flag State
and is enabled to trade internationally
Enforcement of International Rules amp Standards
Implementation of the national and international maritime law
conventions and regulations
Objective Safety and Quality of Life At Sea
and
Environment Protection
Perfecting shipping financing system
Maintenance of public record of ship mortgages Providing added
security to lenders and their assets
Panama 22
LIBERIA 1254000 vessels200 MIL DWT
Marshall Is 8
Hong Kong 8
Singapore 5 Greece 5
Malta 5
Bahamas 4
China PR 4
Cyprus 2
Other 245
Market-share of World Fleet By Country Of Registry (DWT Tons 2012)
Source ISL Shipping Statistics Yearbook (2012)
Dominance of Open Registries
What is Open Registry
Open registries ndash A blessing to the global economy
According to The Center for Freedom and Prosperity Foundation
study analyzing the impact of open registries on the global shipping
market they have boosted international trade and the world economy
by reducing shipping costs and increasing efficiency in the industry
Open Registries vs National Registries ndash not relevant question
GOOD QUALITY FLAGS vs BAD FLAGS ndash it is the right question
How to measure Flag performance
Ship Registries the Good and the Bad
Safety Record amp Reputation ndash Collisions Fire Grounding Death
Pollution Record ndash
Water Oil Chemical Sewage Non-indigenous Species TBT Air Carbon Sox NOx
Port State Control ndash Detention and Interventions
ICS Shipping Industry Guidelines on Flag State Performance
Customer Service and 247 availability
Price
FLAG STATES ndash How To Measure Their Performance
InsuranceUnderwriters records ndash Claims and loss values
Crew Welfare ndash Personal injury Death Abandonment Unpaid Wages Benefits
Crew competency assessment
Enforceability of Mortgage during admiralty proceedings in foreign jurisdictions
Charterers Assessment Vetting Performance
Double Taxation Agreements
Participation in the international regulatory forums with timely ratification and
implementation of internationally accepted standards
Security initiatives
Innovation and efforts to improve efficiencies and cost effectiveness
Participation and Disclosure of results from IMOrsquos Voluntary Member State Audit
FLAG STATES ndash Essential Factors of Performance Measurement
FLAG STATES ndash PRICE VS COST PRICE VS VALUE
The COST of a Flag State is typically less than 05 of the vesselrsquos
OPEX
Shipowners often look just at the PRICE of initial flagging and recurring
fees
The common opinion is ldquoThe FLAGS are ALL THE SAMErdquo
The PRICE vs VALUE is the key
PAY ATTENTION TO WHAT YOU GET IN RETURN - what is crucial is
what support you are going to get after you buy the flag
(hellipor you and your staff are going to get stuck with a flag you will curse)
FLAG STATES ndash PRICE VS COST PRICE VS VALUE
COST ANALYSIS
non-responsive maritime administration detentions delays off-hire
repatriating stowaways
accidents claims caused by crew in-competence
time consuming inspections hidden fees and expenses
PRICE ANALYSIS
Competitive Prices
Taxation
Average Fleet Age lt 13 years
Top Tier Records
Tokyo MOU
Paris MOU ndash Low Risk Flag
US Coast Guard ndash QUALSHIP 21
Top Ranking in Flag State Performance Table
As determined by the Round table of International Shipping Associations
BIMCO
INTERCARGO
INTERTANKO
INTERNATIONAL CHAMBER OF SHIPPING(Liberian Shipowners Council-member of ICS)
INTERNATIONAL SHIPPING FEDERATION
OCIMF SIRE
RIGHTSHIP (HIGHEST POSSIBLE SCORE +5)
LIBERIAN REGISTRY QUALITY PERFORMANCE RANKING
PSC Detentio
n Preventi
onBMP
Anti-Piracy
Training
Electronic
Certificates
SEASystem crew
certificatesExtended
Dry dock Program
MLC Verificati
on
EFS -Green
Shipping Incentive
Harmonized Audits
Initiatives Developed
Exclusively by the
Liberian Registry
Full range of vessel and
corporate registration
services
247 support
Worldwide network of offices
and inspectorsauditors
LIBERIA - innovation quality and partnership
Flag States
Vetting Charterer
Inspections
PSC Regimes
LSC Owners
Assoc
Under-writers
Multi-National
Legislative Efforts
Class Societies
FLAG STATES ndash Shaping Regulatory Environment
Become involvedhellip
Participate in
Regulatory Debateshellip
Ask more from your
Flag State
LIBERIA
IMO Council Member
Maritime Safety Committee (MSC)
The Marine Environment Protection Committee (MEPC)
Periodical meetings with ROrsquos IACS Members
Continuous dialogue with Liberian Shipownersrsquo Council
Daily contact with PSC authorities
Participation in international conferences
Workshops for owners managers crewing agents (ISPS MLC WRChellip)
Testing Ballast Water Treatment Systems
FLAG STATES ndash Shaping Regulatory Environment
1 Adopting a convention
Participation in development process
2 Entry into force
Each convention includes appropriate provisions stipulating conditions which
have to be met before it enters into force A portion of world fleet tonnage or
minimum number of members
3 Ratification
It is the precursor of effective implementation of IMO instruments
4 Enforcement
The enforcement of IMO conventions depends upon the Governments of Member
Parties IMO Regulations are implemented and applied to ships on a global basis
through a combination of flag state enforcement and Port State Cintrol
IMO vs FLAG STATES ndash Implementation of Conventions
REDUCTION IN MAJOR OIL SPILLS
Over the last two and a half decades the average
number of spills greater than 7 tonnes has progressively
reduced by half
In terms of the volume of oil spilt the figures for a particular year may be severely
distorted by a single large incident
Concerns of various stakeholders about environmental impact byshipping related activities
High Fuel cost accounts for over 50 of total running costs
Change of shipbuilding philosophy since 2012
Eco Vessels - creating a two-tier market gaining the competitiveadvantage
Ships will gain very significantly from efficiency improvements
SHIPPING and ENVIRONMENTAL CONCERNSndash Shaping Regulatory Environment
livestock account for a significant proportion of greenhouse gas (GHG)
emissions and global consumption of livestock products is growing rapidly -
CH 4 NH 3 N 2 O
in the United States and the other developed countries CO2 emissions from
the use of motor vehicles alone (including emissions from feedstock recovery
processing and distribution and from vehicle manufacture) have constituted
up to 30 of the total CO2 emissions from the use of all fossil fuels
Chlorofluorocarbon - CFC
Freon (CF2Cl2) - CFC-12
Methane - CH4
Carbon monoxide - CO
Carbon dioxide - CO2
Hydrogen - H2
Methanol - MeOH
POLLUTION CONTROL
Methyl tertiary butyl ether -
MTBE
Nitrous oxide - N2O
Nitrogen oxides - NOx
Ozone - O3
Sulfur oxides - SOx
Sulfur oxides - SOx
Green Technology Location on Vessel
GREEN SHIP INNOVATION
Innovative environmental retrofit finance program designed to reduce global carbon emmissions enhance the Liberian fleet efficiency and competivness and promote a green Liberian fleet
Partnership with Efficient Ship Finance (ESF) a US based speciality ship finance firm Annual operating expense reduced additionally through lowered Registration Fees in
Liberia- 1st YEAR 50 annual tonnage tax discount- 2nd YEAR 25 annual tonnage tax discount- 3rd YEAR 25 annual tonnage tax discount
Liberiarsquos Partnership Program for Eco Upgrade Financing
Shipping is the least environmentally damaging form of commercial transport
and compared with land based industry is a comparatively minor contributor
to marine pollution from human activities
There has been a substantial reduction in marine pollution over the last 15
years especially with regard to the amount of oil spilled into the sea despite
a massive increase in world sea borne trade
Surprising perspective
In macro scale shipping is considered a marginal sources of emissions of
GHG Shipping is responsible for about 25-3 of marine pollution However
it is not a reason to stop improving our environmental performance
ENVIRONMENTAL PERFORMANCE OF SHIPPING INDUSTRY
ldquoQUALITY is never an accident
it is always the result of high intention
sincere effort intelligent direction and
skillful execution it represents the
wise choice of many alternativesrdquo
-William A Foster
Panama 22
LIBERIA 1254000 vessels200 MIL DWT
Marshall Is 8
Hong Kong 8
Singapore 5 Greece 5
Malta 5
Bahamas 4
China PR 4
Cyprus 2
Other 245
Market-share of World Fleet By Country Of Registry (DWT Tons 2012)
Source ISL Shipping Statistics Yearbook (2012)
Dominance of Open Registries
What is Open Registry
Open registries ndash A blessing to the global economy
According to The Center for Freedom and Prosperity Foundation
study analyzing the impact of open registries on the global shipping
market they have boosted international trade and the world economy
by reducing shipping costs and increasing efficiency in the industry
Open Registries vs National Registries ndash not relevant question
GOOD QUALITY FLAGS vs BAD FLAGS ndash it is the right question
How to measure Flag performance
Ship Registries the Good and the Bad
Safety Record amp Reputation ndash Collisions Fire Grounding Death
Pollution Record ndash
Water Oil Chemical Sewage Non-indigenous Species TBT Air Carbon Sox NOx
Port State Control ndash Detention and Interventions
ICS Shipping Industry Guidelines on Flag State Performance
Customer Service and 247 availability
Price
FLAG STATES ndash How To Measure Their Performance
InsuranceUnderwriters records ndash Claims and loss values
Crew Welfare ndash Personal injury Death Abandonment Unpaid Wages Benefits
Crew competency assessment
Enforceability of Mortgage during admiralty proceedings in foreign jurisdictions
Charterers Assessment Vetting Performance
Double Taxation Agreements
Participation in the international regulatory forums with timely ratification and
implementation of internationally accepted standards
Security initiatives
Innovation and efforts to improve efficiencies and cost effectiveness
Participation and Disclosure of results from IMOrsquos Voluntary Member State Audit
FLAG STATES ndash Essential Factors of Performance Measurement
FLAG STATES ndash PRICE VS COST PRICE VS VALUE
The COST of a Flag State is typically less than 05 of the vesselrsquos
OPEX
Shipowners often look just at the PRICE of initial flagging and recurring
fees
The common opinion is ldquoThe FLAGS are ALL THE SAMErdquo
The PRICE vs VALUE is the key
PAY ATTENTION TO WHAT YOU GET IN RETURN - what is crucial is
what support you are going to get after you buy the flag
(hellipor you and your staff are going to get stuck with a flag you will curse)
FLAG STATES ndash PRICE VS COST PRICE VS VALUE
COST ANALYSIS
non-responsive maritime administration detentions delays off-hire
repatriating stowaways
accidents claims caused by crew in-competence
time consuming inspections hidden fees and expenses
PRICE ANALYSIS
Competitive Prices
Taxation
Average Fleet Age lt 13 years
Top Tier Records
Tokyo MOU
Paris MOU ndash Low Risk Flag
US Coast Guard ndash QUALSHIP 21
Top Ranking in Flag State Performance Table
As determined by the Round table of International Shipping Associations
BIMCO
INTERCARGO
INTERTANKO
INTERNATIONAL CHAMBER OF SHIPPING(Liberian Shipowners Council-member of ICS)
INTERNATIONAL SHIPPING FEDERATION
OCIMF SIRE
RIGHTSHIP (HIGHEST POSSIBLE SCORE +5)
LIBERIAN REGISTRY QUALITY PERFORMANCE RANKING
PSC Detentio
n Preventi
onBMP
Anti-Piracy
Training
Electronic
Certificates
SEASystem crew
certificatesExtended
Dry dock Program
MLC Verificati
on
EFS -Green
Shipping Incentive
Harmonized Audits
Initiatives Developed
Exclusively by the
Liberian Registry
Full range of vessel and
corporate registration
services
247 support
Worldwide network of offices
and inspectorsauditors
LIBERIA - innovation quality and partnership
Flag States
Vetting Charterer
Inspections
PSC Regimes
LSC Owners
Assoc
Under-writers
Multi-National
Legislative Efforts
Class Societies
FLAG STATES ndash Shaping Regulatory Environment
Become involvedhellip
Participate in
Regulatory Debateshellip
Ask more from your
Flag State
LIBERIA
IMO Council Member
Maritime Safety Committee (MSC)
The Marine Environment Protection Committee (MEPC)
Periodical meetings with ROrsquos IACS Members
Continuous dialogue with Liberian Shipownersrsquo Council
Daily contact with PSC authorities
Participation in international conferences
Workshops for owners managers crewing agents (ISPS MLC WRChellip)
Testing Ballast Water Treatment Systems
FLAG STATES ndash Shaping Regulatory Environment
1 Adopting a convention
Participation in development process
2 Entry into force
Each convention includes appropriate provisions stipulating conditions which
have to be met before it enters into force A portion of world fleet tonnage or
minimum number of members
3 Ratification
It is the precursor of effective implementation of IMO instruments
4 Enforcement
The enforcement of IMO conventions depends upon the Governments of Member
Parties IMO Regulations are implemented and applied to ships on a global basis
through a combination of flag state enforcement and Port State Cintrol
IMO vs FLAG STATES ndash Implementation of Conventions
REDUCTION IN MAJOR OIL SPILLS
Over the last two and a half decades the average
number of spills greater than 7 tonnes has progressively
reduced by half
In terms of the volume of oil spilt the figures for a particular year may be severely
distorted by a single large incident
Concerns of various stakeholders about environmental impact byshipping related activities
High Fuel cost accounts for over 50 of total running costs
Change of shipbuilding philosophy since 2012
Eco Vessels - creating a two-tier market gaining the competitiveadvantage
Ships will gain very significantly from efficiency improvements
SHIPPING and ENVIRONMENTAL CONCERNSndash Shaping Regulatory Environment
livestock account for a significant proportion of greenhouse gas (GHG)
emissions and global consumption of livestock products is growing rapidly -
CH 4 NH 3 N 2 O
in the United States and the other developed countries CO2 emissions from
the use of motor vehicles alone (including emissions from feedstock recovery
processing and distribution and from vehicle manufacture) have constituted
up to 30 of the total CO2 emissions from the use of all fossil fuels
Chlorofluorocarbon - CFC
Freon (CF2Cl2) - CFC-12
Methane - CH4
Carbon monoxide - CO
Carbon dioxide - CO2
Hydrogen - H2
Methanol - MeOH
POLLUTION CONTROL
Methyl tertiary butyl ether -
MTBE
Nitrous oxide - N2O
Nitrogen oxides - NOx
Ozone - O3
Sulfur oxides - SOx
Sulfur oxides - SOx
Green Technology Location on Vessel
GREEN SHIP INNOVATION
Innovative environmental retrofit finance program designed to reduce global carbon emmissions enhance the Liberian fleet efficiency and competivness and promote a green Liberian fleet
Partnership with Efficient Ship Finance (ESF) a US based speciality ship finance firm Annual operating expense reduced additionally through lowered Registration Fees in
Liberia- 1st YEAR 50 annual tonnage tax discount- 2nd YEAR 25 annual tonnage tax discount- 3rd YEAR 25 annual tonnage tax discount
Liberiarsquos Partnership Program for Eco Upgrade Financing
Shipping is the least environmentally damaging form of commercial transport
and compared with land based industry is a comparatively minor contributor
to marine pollution from human activities
There has been a substantial reduction in marine pollution over the last 15
years especially with regard to the amount of oil spilled into the sea despite
a massive increase in world sea borne trade
Surprising perspective
In macro scale shipping is considered a marginal sources of emissions of
GHG Shipping is responsible for about 25-3 of marine pollution However
it is not a reason to stop improving our environmental performance
ENVIRONMENTAL PERFORMANCE OF SHIPPING INDUSTRY
ldquoQUALITY is never an accident
it is always the result of high intention
sincere effort intelligent direction and
skillful execution it represents the
wise choice of many alternativesrdquo
-William A Foster
Dominance of Open Registries
What is Open Registry
Open registries ndash A blessing to the global economy
According to The Center for Freedom and Prosperity Foundation
study analyzing the impact of open registries on the global shipping
market they have boosted international trade and the world economy
by reducing shipping costs and increasing efficiency in the industry
Open Registries vs National Registries ndash not relevant question
GOOD QUALITY FLAGS vs BAD FLAGS ndash it is the right question
How to measure Flag performance
Ship Registries the Good and the Bad
Safety Record amp Reputation ndash Collisions Fire Grounding Death
Pollution Record ndash
Water Oil Chemical Sewage Non-indigenous Species TBT Air Carbon Sox NOx
Port State Control ndash Detention and Interventions
ICS Shipping Industry Guidelines on Flag State Performance
Customer Service and 247 availability
Price
FLAG STATES ndash How To Measure Their Performance
InsuranceUnderwriters records ndash Claims and loss values
Crew Welfare ndash Personal injury Death Abandonment Unpaid Wages Benefits
Crew competency assessment
Enforceability of Mortgage during admiralty proceedings in foreign jurisdictions
Charterers Assessment Vetting Performance
Double Taxation Agreements
Participation in the international regulatory forums with timely ratification and
implementation of internationally accepted standards
Security initiatives
Innovation and efforts to improve efficiencies and cost effectiveness
Participation and Disclosure of results from IMOrsquos Voluntary Member State Audit
FLAG STATES ndash Essential Factors of Performance Measurement
FLAG STATES ndash PRICE VS COST PRICE VS VALUE
The COST of a Flag State is typically less than 05 of the vesselrsquos
OPEX
Shipowners often look just at the PRICE of initial flagging and recurring
fees
The common opinion is ldquoThe FLAGS are ALL THE SAMErdquo
The PRICE vs VALUE is the key
PAY ATTENTION TO WHAT YOU GET IN RETURN - what is crucial is
what support you are going to get after you buy the flag
(hellipor you and your staff are going to get stuck with a flag you will curse)
FLAG STATES ndash PRICE VS COST PRICE VS VALUE
COST ANALYSIS
non-responsive maritime administration detentions delays off-hire
repatriating stowaways
accidents claims caused by crew in-competence
time consuming inspections hidden fees and expenses
PRICE ANALYSIS
Competitive Prices
Taxation
Average Fleet Age lt 13 years
Top Tier Records
Tokyo MOU
Paris MOU ndash Low Risk Flag
US Coast Guard ndash QUALSHIP 21
Top Ranking in Flag State Performance Table
As determined by the Round table of International Shipping Associations
BIMCO
INTERCARGO
INTERTANKO
INTERNATIONAL CHAMBER OF SHIPPING(Liberian Shipowners Council-member of ICS)
INTERNATIONAL SHIPPING FEDERATION
OCIMF SIRE
RIGHTSHIP (HIGHEST POSSIBLE SCORE +5)
LIBERIAN REGISTRY QUALITY PERFORMANCE RANKING
PSC Detentio
n Preventi
onBMP
Anti-Piracy
Training
Electronic
Certificates
SEASystem crew
certificatesExtended
Dry dock Program
MLC Verificati
on
EFS -Green
Shipping Incentive
Harmonized Audits
Initiatives Developed
Exclusively by the
Liberian Registry
Full range of vessel and
corporate registration
services
247 support
Worldwide network of offices
and inspectorsauditors
LIBERIA - innovation quality and partnership
Flag States
Vetting Charterer
Inspections
PSC Regimes
LSC Owners
Assoc
Under-writers
Multi-National
Legislative Efforts
Class Societies
FLAG STATES ndash Shaping Regulatory Environment
Become involvedhellip
Participate in
Regulatory Debateshellip
Ask more from your
Flag State
LIBERIA
IMO Council Member
Maritime Safety Committee (MSC)
The Marine Environment Protection Committee (MEPC)
Periodical meetings with ROrsquos IACS Members
Continuous dialogue with Liberian Shipownersrsquo Council
Daily contact with PSC authorities
Participation in international conferences
Workshops for owners managers crewing agents (ISPS MLC WRChellip)
Testing Ballast Water Treatment Systems
FLAG STATES ndash Shaping Regulatory Environment
1 Adopting a convention
Participation in development process
2 Entry into force
Each convention includes appropriate provisions stipulating conditions which
have to be met before it enters into force A portion of world fleet tonnage or
minimum number of members
3 Ratification
It is the precursor of effective implementation of IMO instruments
4 Enforcement
The enforcement of IMO conventions depends upon the Governments of Member
Parties IMO Regulations are implemented and applied to ships on a global basis
through a combination of flag state enforcement and Port State Cintrol
IMO vs FLAG STATES ndash Implementation of Conventions
REDUCTION IN MAJOR OIL SPILLS
Over the last two and a half decades the average
number of spills greater than 7 tonnes has progressively
reduced by half
In terms of the volume of oil spilt the figures for a particular year may be severely
distorted by a single large incident
Concerns of various stakeholders about environmental impact byshipping related activities
High Fuel cost accounts for over 50 of total running costs
Change of shipbuilding philosophy since 2012
Eco Vessels - creating a two-tier market gaining the competitiveadvantage
Ships will gain very significantly from efficiency improvements
SHIPPING and ENVIRONMENTAL CONCERNSndash Shaping Regulatory Environment
livestock account for a significant proportion of greenhouse gas (GHG)
emissions and global consumption of livestock products is growing rapidly -
CH 4 NH 3 N 2 O
in the United States and the other developed countries CO2 emissions from
the use of motor vehicles alone (including emissions from feedstock recovery
processing and distribution and from vehicle manufacture) have constituted
up to 30 of the total CO2 emissions from the use of all fossil fuels
Chlorofluorocarbon - CFC
Freon (CF2Cl2) - CFC-12
Methane - CH4
Carbon monoxide - CO
Carbon dioxide - CO2
Hydrogen - H2
Methanol - MeOH
POLLUTION CONTROL
Methyl tertiary butyl ether -
MTBE
Nitrous oxide - N2O
Nitrogen oxides - NOx
Ozone - O3
Sulfur oxides - SOx
Sulfur oxides - SOx
Green Technology Location on Vessel
GREEN SHIP INNOVATION
Innovative environmental retrofit finance program designed to reduce global carbon emmissions enhance the Liberian fleet efficiency and competivness and promote a green Liberian fleet
Partnership with Efficient Ship Finance (ESF) a US based speciality ship finance firm Annual operating expense reduced additionally through lowered Registration Fees in
Liberia- 1st YEAR 50 annual tonnage tax discount- 2nd YEAR 25 annual tonnage tax discount- 3rd YEAR 25 annual tonnage tax discount
Liberiarsquos Partnership Program for Eco Upgrade Financing
Shipping is the least environmentally damaging form of commercial transport
and compared with land based industry is a comparatively minor contributor
to marine pollution from human activities
There has been a substantial reduction in marine pollution over the last 15
years especially with regard to the amount of oil spilled into the sea despite
a massive increase in world sea borne trade
Surprising perspective
In macro scale shipping is considered a marginal sources of emissions of
GHG Shipping is responsible for about 25-3 of marine pollution However
it is not a reason to stop improving our environmental performance
ENVIRONMENTAL PERFORMANCE OF SHIPPING INDUSTRY
ldquoQUALITY is never an accident
it is always the result of high intention
sincere effort intelligent direction and
skillful execution it represents the
wise choice of many alternativesrdquo
-William A Foster
Safety Record amp Reputation ndash Collisions Fire Grounding Death
Pollution Record ndash
Water Oil Chemical Sewage Non-indigenous Species TBT Air Carbon Sox NOx
Port State Control ndash Detention and Interventions
ICS Shipping Industry Guidelines on Flag State Performance
Customer Service and 247 availability
Price
FLAG STATES ndash How To Measure Their Performance
InsuranceUnderwriters records ndash Claims and loss values
Crew Welfare ndash Personal injury Death Abandonment Unpaid Wages Benefits
Crew competency assessment
Enforceability of Mortgage during admiralty proceedings in foreign jurisdictions
Charterers Assessment Vetting Performance
Double Taxation Agreements
Participation in the international regulatory forums with timely ratification and
implementation of internationally accepted standards
Security initiatives
Innovation and efforts to improve efficiencies and cost effectiveness
Participation and Disclosure of results from IMOrsquos Voluntary Member State Audit
FLAG STATES ndash Essential Factors of Performance Measurement
FLAG STATES ndash PRICE VS COST PRICE VS VALUE
The COST of a Flag State is typically less than 05 of the vesselrsquos
OPEX
Shipowners often look just at the PRICE of initial flagging and recurring
fees
The common opinion is ldquoThe FLAGS are ALL THE SAMErdquo
The PRICE vs VALUE is the key
PAY ATTENTION TO WHAT YOU GET IN RETURN - what is crucial is
what support you are going to get after you buy the flag
(hellipor you and your staff are going to get stuck with a flag you will curse)
FLAG STATES ndash PRICE VS COST PRICE VS VALUE
COST ANALYSIS
non-responsive maritime administration detentions delays off-hire
repatriating stowaways
accidents claims caused by crew in-competence
time consuming inspections hidden fees and expenses
PRICE ANALYSIS
Competitive Prices
Taxation
Average Fleet Age lt 13 years
Top Tier Records
Tokyo MOU
Paris MOU ndash Low Risk Flag
US Coast Guard ndash QUALSHIP 21
Top Ranking in Flag State Performance Table
As determined by the Round table of International Shipping Associations
BIMCO
INTERCARGO
INTERTANKO
INTERNATIONAL CHAMBER OF SHIPPING(Liberian Shipowners Council-member of ICS)
INTERNATIONAL SHIPPING FEDERATION
OCIMF SIRE
RIGHTSHIP (HIGHEST POSSIBLE SCORE +5)
LIBERIAN REGISTRY QUALITY PERFORMANCE RANKING
PSC Detentio
n Preventi
onBMP
Anti-Piracy
Training
Electronic
Certificates
SEASystem crew
certificatesExtended
Dry dock Program
MLC Verificati
on
EFS -Green
Shipping Incentive
Harmonized Audits
Initiatives Developed
Exclusively by the
Liberian Registry
Full range of vessel and
corporate registration
services
247 support
Worldwide network of offices
and inspectorsauditors
LIBERIA - innovation quality and partnership
Flag States
Vetting Charterer
Inspections
PSC Regimes
LSC Owners
Assoc
Under-writers
Multi-National
Legislative Efforts
Class Societies
FLAG STATES ndash Shaping Regulatory Environment
Become involvedhellip
Participate in
Regulatory Debateshellip
Ask more from your
Flag State
LIBERIA
IMO Council Member
Maritime Safety Committee (MSC)
The Marine Environment Protection Committee (MEPC)
Periodical meetings with ROrsquos IACS Members
Continuous dialogue with Liberian Shipownersrsquo Council
Daily contact with PSC authorities
Participation in international conferences
Workshops for owners managers crewing agents (ISPS MLC WRChellip)
Testing Ballast Water Treatment Systems
FLAG STATES ndash Shaping Regulatory Environment
1 Adopting a convention
Participation in development process
2 Entry into force
Each convention includes appropriate provisions stipulating conditions which
have to be met before it enters into force A portion of world fleet tonnage or
minimum number of members
3 Ratification
It is the precursor of effective implementation of IMO instruments
4 Enforcement
The enforcement of IMO conventions depends upon the Governments of Member
Parties IMO Regulations are implemented and applied to ships on a global basis
through a combination of flag state enforcement and Port State Cintrol
IMO vs FLAG STATES ndash Implementation of Conventions
REDUCTION IN MAJOR OIL SPILLS
Over the last two and a half decades the average
number of spills greater than 7 tonnes has progressively
reduced by half
In terms of the volume of oil spilt the figures for a particular year may be severely
distorted by a single large incident
Concerns of various stakeholders about environmental impact byshipping related activities
High Fuel cost accounts for over 50 of total running costs
Change of shipbuilding philosophy since 2012
Eco Vessels - creating a two-tier market gaining the competitiveadvantage
Ships will gain very significantly from efficiency improvements
SHIPPING and ENVIRONMENTAL CONCERNSndash Shaping Regulatory Environment
livestock account for a significant proportion of greenhouse gas (GHG)
emissions and global consumption of livestock products is growing rapidly -
CH 4 NH 3 N 2 O
in the United States and the other developed countries CO2 emissions from
the use of motor vehicles alone (including emissions from feedstock recovery
processing and distribution and from vehicle manufacture) have constituted
up to 30 of the total CO2 emissions from the use of all fossil fuels
Chlorofluorocarbon - CFC
Freon (CF2Cl2) - CFC-12
Methane - CH4
Carbon monoxide - CO
Carbon dioxide - CO2
Hydrogen - H2
Methanol - MeOH
POLLUTION CONTROL
Methyl tertiary butyl ether -
MTBE
Nitrous oxide - N2O
Nitrogen oxides - NOx
Ozone - O3
Sulfur oxides - SOx
Sulfur oxides - SOx
Green Technology Location on Vessel
GREEN SHIP INNOVATION
Innovative environmental retrofit finance program designed to reduce global carbon emmissions enhance the Liberian fleet efficiency and competivness and promote a green Liberian fleet
Partnership with Efficient Ship Finance (ESF) a US based speciality ship finance firm Annual operating expense reduced additionally through lowered Registration Fees in
Liberia- 1st YEAR 50 annual tonnage tax discount- 2nd YEAR 25 annual tonnage tax discount- 3rd YEAR 25 annual tonnage tax discount
Liberiarsquos Partnership Program for Eco Upgrade Financing
Shipping is the least environmentally damaging form of commercial transport
and compared with land based industry is a comparatively minor contributor
to marine pollution from human activities
There has been a substantial reduction in marine pollution over the last 15
years especially with regard to the amount of oil spilled into the sea despite
a massive increase in world sea borne trade
Surprising perspective
In macro scale shipping is considered a marginal sources of emissions of
GHG Shipping is responsible for about 25-3 of marine pollution However
it is not a reason to stop improving our environmental performance
ENVIRONMENTAL PERFORMANCE OF SHIPPING INDUSTRY
ldquoQUALITY is never an accident
it is always the result of high intention
sincere effort intelligent direction and
skillful execution it represents the
wise choice of many alternativesrdquo
-William A Foster
InsuranceUnderwriters records ndash Claims and loss values
Crew Welfare ndash Personal injury Death Abandonment Unpaid Wages Benefits
Crew competency assessment
Enforceability of Mortgage during admiralty proceedings in foreign jurisdictions
Charterers Assessment Vetting Performance
Double Taxation Agreements
Participation in the international regulatory forums with timely ratification and
implementation of internationally accepted standards
Security initiatives
Innovation and efforts to improve efficiencies and cost effectiveness
Participation and Disclosure of results from IMOrsquos Voluntary Member State Audit
FLAG STATES ndash Essential Factors of Performance Measurement
FLAG STATES ndash PRICE VS COST PRICE VS VALUE
The COST of a Flag State is typically less than 05 of the vesselrsquos
OPEX
Shipowners often look just at the PRICE of initial flagging and recurring
fees
The common opinion is ldquoThe FLAGS are ALL THE SAMErdquo
The PRICE vs VALUE is the key
PAY ATTENTION TO WHAT YOU GET IN RETURN - what is crucial is
what support you are going to get after you buy the flag
(hellipor you and your staff are going to get stuck with a flag you will curse)
FLAG STATES ndash PRICE VS COST PRICE VS VALUE
COST ANALYSIS
non-responsive maritime administration detentions delays off-hire
repatriating stowaways
accidents claims caused by crew in-competence
time consuming inspections hidden fees and expenses
PRICE ANALYSIS
Competitive Prices
Taxation
Average Fleet Age lt 13 years
Top Tier Records
Tokyo MOU
Paris MOU ndash Low Risk Flag
US Coast Guard ndash QUALSHIP 21
Top Ranking in Flag State Performance Table
As determined by the Round table of International Shipping Associations
BIMCO
INTERCARGO
INTERTANKO
INTERNATIONAL CHAMBER OF SHIPPING(Liberian Shipowners Council-member of ICS)
INTERNATIONAL SHIPPING FEDERATION
OCIMF SIRE
RIGHTSHIP (HIGHEST POSSIBLE SCORE +5)
LIBERIAN REGISTRY QUALITY PERFORMANCE RANKING
PSC Detentio
n Preventi
onBMP
Anti-Piracy
Training
Electronic
Certificates
SEASystem crew
certificatesExtended
Dry dock Program
MLC Verificati
on
EFS -Green
Shipping Incentive
Harmonized Audits
Initiatives Developed
Exclusively by the
Liberian Registry
Full range of vessel and
corporate registration
services
247 support
Worldwide network of offices
and inspectorsauditors
LIBERIA - innovation quality and partnership
Flag States
Vetting Charterer
Inspections
PSC Regimes
LSC Owners
Assoc
Under-writers
Multi-National
Legislative Efforts
Class Societies
FLAG STATES ndash Shaping Regulatory Environment
Become involvedhellip
Participate in
Regulatory Debateshellip
Ask more from your
Flag State
LIBERIA
IMO Council Member
Maritime Safety Committee (MSC)
The Marine Environment Protection Committee (MEPC)
Periodical meetings with ROrsquos IACS Members
Continuous dialogue with Liberian Shipownersrsquo Council
Daily contact with PSC authorities
Participation in international conferences
Workshops for owners managers crewing agents (ISPS MLC WRChellip)
Testing Ballast Water Treatment Systems
FLAG STATES ndash Shaping Regulatory Environment
1 Adopting a convention
Participation in development process
2 Entry into force
Each convention includes appropriate provisions stipulating conditions which
have to be met before it enters into force A portion of world fleet tonnage or
minimum number of members
3 Ratification
It is the precursor of effective implementation of IMO instruments
4 Enforcement
The enforcement of IMO conventions depends upon the Governments of Member
Parties IMO Regulations are implemented and applied to ships on a global basis
through a combination of flag state enforcement and Port State Cintrol
IMO vs FLAG STATES ndash Implementation of Conventions
REDUCTION IN MAJOR OIL SPILLS
Over the last two and a half decades the average
number of spills greater than 7 tonnes has progressively
reduced by half
In terms of the volume of oil spilt the figures for a particular year may be severely
distorted by a single large incident
Concerns of various stakeholders about environmental impact byshipping related activities
High Fuel cost accounts for over 50 of total running costs
Change of shipbuilding philosophy since 2012
Eco Vessels - creating a two-tier market gaining the competitiveadvantage
Ships will gain very significantly from efficiency improvements
SHIPPING and ENVIRONMENTAL CONCERNSndash Shaping Regulatory Environment
livestock account for a significant proportion of greenhouse gas (GHG)
emissions and global consumption of livestock products is growing rapidly -
CH 4 NH 3 N 2 O
in the United States and the other developed countries CO2 emissions from
the use of motor vehicles alone (including emissions from feedstock recovery
processing and distribution and from vehicle manufacture) have constituted
up to 30 of the total CO2 emissions from the use of all fossil fuels
Chlorofluorocarbon - CFC
Freon (CF2Cl2) - CFC-12
Methane - CH4
Carbon monoxide - CO
Carbon dioxide - CO2
Hydrogen - H2
Methanol - MeOH
POLLUTION CONTROL
Methyl tertiary butyl ether -
MTBE
Nitrous oxide - N2O
Nitrogen oxides - NOx
Ozone - O3
Sulfur oxides - SOx
Sulfur oxides - SOx
Green Technology Location on Vessel
GREEN SHIP INNOVATION
Innovative environmental retrofit finance program designed to reduce global carbon emmissions enhance the Liberian fleet efficiency and competivness and promote a green Liberian fleet
Partnership with Efficient Ship Finance (ESF) a US based speciality ship finance firm Annual operating expense reduced additionally through lowered Registration Fees in
Liberia- 1st YEAR 50 annual tonnage tax discount- 2nd YEAR 25 annual tonnage tax discount- 3rd YEAR 25 annual tonnage tax discount
Liberiarsquos Partnership Program for Eco Upgrade Financing
Shipping is the least environmentally damaging form of commercial transport
and compared with land based industry is a comparatively minor contributor
to marine pollution from human activities
There has been a substantial reduction in marine pollution over the last 15
years especially with regard to the amount of oil spilled into the sea despite
a massive increase in world sea borne trade
Surprising perspective
In macro scale shipping is considered a marginal sources of emissions of
GHG Shipping is responsible for about 25-3 of marine pollution However
it is not a reason to stop improving our environmental performance
ENVIRONMENTAL PERFORMANCE OF SHIPPING INDUSTRY
ldquoQUALITY is never an accident
it is always the result of high intention
sincere effort intelligent direction and
skillful execution it represents the
wise choice of many alternativesrdquo
-William A Foster
FLAG STATES ndash PRICE VS COST PRICE VS VALUE
The COST of a Flag State is typically less than 05 of the vesselrsquos
OPEX
Shipowners often look just at the PRICE of initial flagging and recurring
fees
The common opinion is ldquoThe FLAGS are ALL THE SAMErdquo
The PRICE vs VALUE is the key
PAY ATTENTION TO WHAT YOU GET IN RETURN - what is crucial is
what support you are going to get after you buy the flag
(hellipor you and your staff are going to get stuck with a flag you will curse)
FLAG STATES ndash PRICE VS COST PRICE VS VALUE
COST ANALYSIS
non-responsive maritime administration detentions delays off-hire
repatriating stowaways
accidents claims caused by crew in-competence
time consuming inspections hidden fees and expenses
PRICE ANALYSIS
Competitive Prices
Taxation
Average Fleet Age lt 13 years
Top Tier Records
Tokyo MOU
Paris MOU ndash Low Risk Flag
US Coast Guard ndash QUALSHIP 21
Top Ranking in Flag State Performance Table
As determined by the Round table of International Shipping Associations
BIMCO
INTERCARGO
INTERTANKO
INTERNATIONAL CHAMBER OF SHIPPING(Liberian Shipowners Council-member of ICS)
INTERNATIONAL SHIPPING FEDERATION
OCIMF SIRE
RIGHTSHIP (HIGHEST POSSIBLE SCORE +5)
LIBERIAN REGISTRY QUALITY PERFORMANCE RANKING
PSC Detentio
n Preventi
onBMP
Anti-Piracy
Training
Electronic
Certificates
SEASystem crew
certificatesExtended
Dry dock Program
MLC Verificati
on
EFS -Green
Shipping Incentive
Harmonized Audits
Initiatives Developed
Exclusively by the
Liberian Registry
Full range of vessel and
corporate registration
services
247 support
Worldwide network of offices
and inspectorsauditors
LIBERIA - innovation quality and partnership
Flag States
Vetting Charterer
Inspections
PSC Regimes
LSC Owners
Assoc
Under-writers
Multi-National
Legislative Efforts
Class Societies
FLAG STATES ndash Shaping Regulatory Environment
Become involvedhellip
Participate in
Regulatory Debateshellip
Ask more from your
Flag State
LIBERIA
IMO Council Member
Maritime Safety Committee (MSC)
The Marine Environment Protection Committee (MEPC)
Periodical meetings with ROrsquos IACS Members
Continuous dialogue with Liberian Shipownersrsquo Council
Daily contact with PSC authorities
Participation in international conferences
Workshops for owners managers crewing agents (ISPS MLC WRChellip)
Testing Ballast Water Treatment Systems
FLAG STATES ndash Shaping Regulatory Environment
1 Adopting a convention
Participation in development process
2 Entry into force
Each convention includes appropriate provisions stipulating conditions which
have to be met before it enters into force A portion of world fleet tonnage or
minimum number of members
3 Ratification
It is the precursor of effective implementation of IMO instruments
4 Enforcement
The enforcement of IMO conventions depends upon the Governments of Member
Parties IMO Regulations are implemented and applied to ships on a global basis
through a combination of flag state enforcement and Port State Cintrol
IMO vs FLAG STATES ndash Implementation of Conventions
REDUCTION IN MAJOR OIL SPILLS
Over the last two and a half decades the average
number of spills greater than 7 tonnes has progressively
reduced by half
In terms of the volume of oil spilt the figures for a particular year may be severely
distorted by a single large incident
Concerns of various stakeholders about environmental impact byshipping related activities
High Fuel cost accounts for over 50 of total running costs
Change of shipbuilding philosophy since 2012
Eco Vessels - creating a two-tier market gaining the competitiveadvantage
Ships will gain very significantly from efficiency improvements
SHIPPING and ENVIRONMENTAL CONCERNSndash Shaping Regulatory Environment
livestock account for a significant proportion of greenhouse gas (GHG)
emissions and global consumption of livestock products is growing rapidly -
CH 4 NH 3 N 2 O
in the United States and the other developed countries CO2 emissions from
the use of motor vehicles alone (including emissions from feedstock recovery
processing and distribution and from vehicle manufacture) have constituted
up to 30 of the total CO2 emissions from the use of all fossil fuels
Chlorofluorocarbon - CFC
Freon (CF2Cl2) - CFC-12
Methane - CH4
Carbon monoxide - CO
Carbon dioxide - CO2
Hydrogen - H2
Methanol - MeOH
POLLUTION CONTROL
Methyl tertiary butyl ether -
MTBE
Nitrous oxide - N2O
Nitrogen oxides - NOx
Ozone - O3
Sulfur oxides - SOx
Sulfur oxides - SOx
Green Technology Location on Vessel
GREEN SHIP INNOVATION
Innovative environmental retrofit finance program designed to reduce global carbon emmissions enhance the Liberian fleet efficiency and competivness and promote a green Liberian fleet
Partnership with Efficient Ship Finance (ESF) a US based speciality ship finance firm Annual operating expense reduced additionally through lowered Registration Fees in
Liberia- 1st YEAR 50 annual tonnage tax discount- 2nd YEAR 25 annual tonnage tax discount- 3rd YEAR 25 annual tonnage tax discount
Liberiarsquos Partnership Program for Eco Upgrade Financing
Shipping is the least environmentally damaging form of commercial transport
and compared with land based industry is a comparatively minor contributor
to marine pollution from human activities
There has been a substantial reduction in marine pollution over the last 15
years especially with regard to the amount of oil spilled into the sea despite
a massive increase in world sea borne trade
Surprising perspective
In macro scale shipping is considered a marginal sources of emissions of
GHG Shipping is responsible for about 25-3 of marine pollution However
it is not a reason to stop improving our environmental performance
ENVIRONMENTAL PERFORMANCE OF SHIPPING INDUSTRY
ldquoQUALITY is never an accident
it is always the result of high intention
sincere effort intelligent direction and
skillful execution it represents the
wise choice of many alternativesrdquo
-William A Foster
FLAG STATES ndash PRICE VS COST PRICE VS VALUE
COST ANALYSIS
non-responsive maritime administration detentions delays off-hire
repatriating stowaways
accidents claims caused by crew in-competence
time consuming inspections hidden fees and expenses
PRICE ANALYSIS
Competitive Prices
Taxation
Average Fleet Age lt 13 years
Top Tier Records
Tokyo MOU
Paris MOU ndash Low Risk Flag
US Coast Guard ndash QUALSHIP 21
Top Ranking in Flag State Performance Table
As determined by the Round table of International Shipping Associations
BIMCO
INTERCARGO
INTERTANKO
INTERNATIONAL CHAMBER OF SHIPPING(Liberian Shipowners Council-member of ICS)
INTERNATIONAL SHIPPING FEDERATION
OCIMF SIRE
RIGHTSHIP (HIGHEST POSSIBLE SCORE +5)
LIBERIAN REGISTRY QUALITY PERFORMANCE RANKING
PSC Detentio
n Preventi
onBMP
Anti-Piracy
Training
Electronic
Certificates
SEASystem crew
certificatesExtended
Dry dock Program
MLC Verificati
on
EFS -Green
Shipping Incentive
Harmonized Audits
Initiatives Developed
Exclusively by the
Liberian Registry
Full range of vessel and
corporate registration
services
247 support
Worldwide network of offices
and inspectorsauditors
LIBERIA - innovation quality and partnership
Flag States
Vetting Charterer
Inspections
PSC Regimes
LSC Owners
Assoc
Under-writers
Multi-National
Legislative Efforts
Class Societies
FLAG STATES ndash Shaping Regulatory Environment
Become involvedhellip
Participate in
Regulatory Debateshellip
Ask more from your
Flag State
LIBERIA
IMO Council Member
Maritime Safety Committee (MSC)
The Marine Environment Protection Committee (MEPC)
Periodical meetings with ROrsquos IACS Members
Continuous dialogue with Liberian Shipownersrsquo Council
Daily contact with PSC authorities
Participation in international conferences
Workshops for owners managers crewing agents (ISPS MLC WRChellip)
Testing Ballast Water Treatment Systems
FLAG STATES ndash Shaping Regulatory Environment
1 Adopting a convention
Participation in development process
2 Entry into force
Each convention includes appropriate provisions stipulating conditions which
have to be met before it enters into force A portion of world fleet tonnage or
minimum number of members
3 Ratification
It is the precursor of effective implementation of IMO instruments
4 Enforcement
The enforcement of IMO conventions depends upon the Governments of Member
Parties IMO Regulations are implemented and applied to ships on a global basis
through a combination of flag state enforcement and Port State Cintrol
IMO vs FLAG STATES ndash Implementation of Conventions
REDUCTION IN MAJOR OIL SPILLS
Over the last two and a half decades the average
number of spills greater than 7 tonnes has progressively
reduced by half
In terms of the volume of oil spilt the figures for a particular year may be severely
distorted by a single large incident
Concerns of various stakeholders about environmental impact byshipping related activities
High Fuel cost accounts for over 50 of total running costs
Change of shipbuilding philosophy since 2012
Eco Vessels - creating a two-tier market gaining the competitiveadvantage
Ships will gain very significantly from efficiency improvements
SHIPPING and ENVIRONMENTAL CONCERNSndash Shaping Regulatory Environment
livestock account for a significant proportion of greenhouse gas (GHG)
emissions and global consumption of livestock products is growing rapidly -
CH 4 NH 3 N 2 O
in the United States and the other developed countries CO2 emissions from
the use of motor vehicles alone (including emissions from feedstock recovery
processing and distribution and from vehicle manufacture) have constituted
up to 30 of the total CO2 emissions from the use of all fossil fuels
Chlorofluorocarbon - CFC
Freon (CF2Cl2) - CFC-12
Methane - CH4
Carbon monoxide - CO
Carbon dioxide - CO2
Hydrogen - H2
Methanol - MeOH
POLLUTION CONTROL
Methyl tertiary butyl ether -
MTBE
Nitrous oxide - N2O
Nitrogen oxides - NOx
Ozone - O3
Sulfur oxides - SOx
Sulfur oxides - SOx
Green Technology Location on Vessel
GREEN SHIP INNOVATION
Innovative environmental retrofit finance program designed to reduce global carbon emmissions enhance the Liberian fleet efficiency and competivness and promote a green Liberian fleet
Partnership with Efficient Ship Finance (ESF) a US based speciality ship finance firm Annual operating expense reduced additionally through lowered Registration Fees in
Liberia- 1st YEAR 50 annual tonnage tax discount- 2nd YEAR 25 annual tonnage tax discount- 3rd YEAR 25 annual tonnage tax discount
Liberiarsquos Partnership Program for Eco Upgrade Financing
Shipping is the least environmentally damaging form of commercial transport
and compared with land based industry is a comparatively minor contributor
to marine pollution from human activities
There has been a substantial reduction in marine pollution over the last 15
years especially with regard to the amount of oil spilled into the sea despite
a massive increase in world sea borne trade
Surprising perspective
In macro scale shipping is considered a marginal sources of emissions of
GHG Shipping is responsible for about 25-3 of marine pollution However
it is not a reason to stop improving our environmental performance
ENVIRONMENTAL PERFORMANCE OF SHIPPING INDUSTRY
ldquoQUALITY is never an accident
it is always the result of high intention
sincere effort intelligent direction and
skillful execution it represents the
wise choice of many alternativesrdquo
-William A Foster
Average Fleet Age lt 13 years
Top Tier Records
Tokyo MOU
Paris MOU ndash Low Risk Flag
US Coast Guard ndash QUALSHIP 21
Top Ranking in Flag State Performance Table
As determined by the Round table of International Shipping Associations
BIMCO
INTERCARGO
INTERTANKO
INTERNATIONAL CHAMBER OF SHIPPING(Liberian Shipowners Council-member of ICS)
INTERNATIONAL SHIPPING FEDERATION
OCIMF SIRE
RIGHTSHIP (HIGHEST POSSIBLE SCORE +5)
LIBERIAN REGISTRY QUALITY PERFORMANCE RANKING
PSC Detentio
n Preventi
onBMP
Anti-Piracy
Training
Electronic
Certificates
SEASystem crew
certificatesExtended
Dry dock Program
MLC Verificati
on
EFS -Green
Shipping Incentive
Harmonized Audits
Initiatives Developed
Exclusively by the
Liberian Registry
Full range of vessel and
corporate registration
services
247 support
Worldwide network of offices
and inspectorsauditors
LIBERIA - innovation quality and partnership
Flag States
Vetting Charterer
Inspections
PSC Regimes
LSC Owners
Assoc
Under-writers
Multi-National
Legislative Efforts
Class Societies
FLAG STATES ndash Shaping Regulatory Environment
Become involvedhellip
Participate in
Regulatory Debateshellip
Ask more from your
Flag State
LIBERIA
IMO Council Member
Maritime Safety Committee (MSC)
The Marine Environment Protection Committee (MEPC)
Periodical meetings with ROrsquos IACS Members
Continuous dialogue with Liberian Shipownersrsquo Council
Daily contact with PSC authorities
Participation in international conferences
Workshops for owners managers crewing agents (ISPS MLC WRChellip)
Testing Ballast Water Treatment Systems
FLAG STATES ndash Shaping Regulatory Environment
1 Adopting a convention
Participation in development process
2 Entry into force
Each convention includes appropriate provisions stipulating conditions which
have to be met before it enters into force A portion of world fleet tonnage or
minimum number of members
3 Ratification
It is the precursor of effective implementation of IMO instruments
4 Enforcement
The enforcement of IMO conventions depends upon the Governments of Member
Parties IMO Regulations are implemented and applied to ships on a global basis
through a combination of flag state enforcement and Port State Cintrol
IMO vs FLAG STATES ndash Implementation of Conventions
REDUCTION IN MAJOR OIL SPILLS
Over the last two and a half decades the average
number of spills greater than 7 tonnes has progressively
reduced by half
In terms of the volume of oil spilt the figures for a particular year may be severely
distorted by a single large incident
Concerns of various stakeholders about environmental impact byshipping related activities
High Fuel cost accounts for over 50 of total running costs
Change of shipbuilding philosophy since 2012
Eco Vessels - creating a two-tier market gaining the competitiveadvantage
Ships will gain very significantly from efficiency improvements
SHIPPING and ENVIRONMENTAL CONCERNSndash Shaping Regulatory Environment
livestock account for a significant proportion of greenhouse gas (GHG)
emissions and global consumption of livestock products is growing rapidly -
CH 4 NH 3 N 2 O
in the United States and the other developed countries CO2 emissions from
the use of motor vehicles alone (including emissions from feedstock recovery
processing and distribution and from vehicle manufacture) have constituted
up to 30 of the total CO2 emissions from the use of all fossil fuels
Chlorofluorocarbon - CFC
Freon (CF2Cl2) - CFC-12
Methane - CH4
Carbon monoxide - CO
Carbon dioxide - CO2
Hydrogen - H2
Methanol - MeOH
POLLUTION CONTROL
Methyl tertiary butyl ether -
MTBE
Nitrous oxide - N2O
Nitrogen oxides - NOx
Ozone - O3
Sulfur oxides - SOx
Sulfur oxides - SOx
Green Technology Location on Vessel
GREEN SHIP INNOVATION
Innovative environmental retrofit finance program designed to reduce global carbon emmissions enhance the Liberian fleet efficiency and competivness and promote a green Liberian fleet
Partnership with Efficient Ship Finance (ESF) a US based speciality ship finance firm Annual operating expense reduced additionally through lowered Registration Fees in
Liberia- 1st YEAR 50 annual tonnage tax discount- 2nd YEAR 25 annual tonnage tax discount- 3rd YEAR 25 annual tonnage tax discount
Liberiarsquos Partnership Program for Eco Upgrade Financing
Shipping is the least environmentally damaging form of commercial transport
and compared with land based industry is a comparatively minor contributor
to marine pollution from human activities
There has been a substantial reduction in marine pollution over the last 15
years especially with regard to the amount of oil spilled into the sea despite
a massive increase in world sea borne trade
Surprising perspective
In macro scale shipping is considered a marginal sources of emissions of
GHG Shipping is responsible for about 25-3 of marine pollution However
it is not a reason to stop improving our environmental performance
ENVIRONMENTAL PERFORMANCE OF SHIPPING INDUSTRY
ldquoQUALITY is never an accident
it is always the result of high intention
sincere effort intelligent direction and
skillful execution it represents the
wise choice of many alternativesrdquo
-William A Foster
PSC Detentio
n Preventi
onBMP
Anti-Piracy
Training
Electronic
Certificates
SEASystem crew
certificatesExtended
Dry dock Program
MLC Verificati
on
EFS -Green
Shipping Incentive
Harmonized Audits
Initiatives Developed
Exclusively by the
Liberian Registry
Full range of vessel and
corporate registration
services
247 support
Worldwide network of offices
and inspectorsauditors
LIBERIA - innovation quality and partnership
Flag States
Vetting Charterer
Inspections
PSC Regimes
LSC Owners
Assoc
Under-writers
Multi-National
Legislative Efforts
Class Societies
FLAG STATES ndash Shaping Regulatory Environment
Become involvedhellip
Participate in
Regulatory Debateshellip
Ask more from your
Flag State
LIBERIA
IMO Council Member
Maritime Safety Committee (MSC)
The Marine Environment Protection Committee (MEPC)
Periodical meetings with ROrsquos IACS Members
Continuous dialogue with Liberian Shipownersrsquo Council
Daily contact with PSC authorities
Participation in international conferences
Workshops for owners managers crewing agents (ISPS MLC WRChellip)
Testing Ballast Water Treatment Systems
FLAG STATES ndash Shaping Regulatory Environment
1 Adopting a convention
Participation in development process
2 Entry into force
Each convention includes appropriate provisions stipulating conditions which
have to be met before it enters into force A portion of world fleet tonnage or
minimum number of members
3 Ratification
It is the precursor of effective implementation of IMO instruments
4 Enforcement
The enforcement of IMO conventions depends upon the Governments of Member
Parties IMO Regulations are implemented and applied to ships on a global basis
through a combination of flag state enforcement and Port State Cintrol
IMO vs FLAG STATES ndash Implementation of Conventions
REDUCTION IN MAJOR OIL SPILLS
Over the last two and a half decades the average
number of spills greater than 7 tonnes has progressively
reduced by half
In terms of the volume of oil spilt the figures for a particular year may be severely
distorted by a single large incident
Concerns of various stakeholders about environmental impact byshipping related activities
High Fuel cost accounts for over 50 of total running costs
Change of shipbuilding philosophy since 2012
Eco Vessels - creating a two-tier market gaining the competitiveadvantage
Ships will gain very significantly from efficiency improvements
SHIPPING and ENVIRONMENTAL CONCERNSndash Shaping Regulatory Environment
livestock account for a significant proportion of greenhouse gas (GHG)
emissions and global consumption of livestock products is growing rapidly -
CH 4 NH 3 N 2 O
in the United States and the other developed countries CO2 emissions from
the use of motor vehicles alone (including emissions from feedstock recovery
processing and distribution and from vehicle manufacture) have constituted
up to 30 of the total CO2 emissions from the use of all fossil fuels
Chlorofluorocarbon - CFC
Freon (CF2Cl2) - CFC-12
Methane - CH4
Carbon monoxide - CO
Carbon dioxide - CO2
Hydrogen - H2
Methanol - MeOH
POLLUTION CONTROL
Methyl tertiary butyl ether -
MTBE
Nitrous oxide - N2O
Nitrogen oxides - NOx
Ozone - O3
Sulfur oxides - SOx
Sulfur oxides - SOx
Green Technology Location on Vessel
GREEN SHIP INNOVATION
Innovative environmental retrofit finance program designed to reduce global carbon emmissions enhance the Liberian fleet efficiency and competivness and promote a green Liberian fleet
Partnership with Efficient Ship Finance (ESF) a US based speciality ship finance firm Annual operating expense reduced additionally through lowered Registration Fees in
Liberia- 1st YEAR 50 annual tonnage tax discount- 2nd YEAR 25 annual tonnage tax discount- 3rd YEAR 25 annual tonnage tax discount
Liberiarsquos Partnership Program for Eco Upgrade Financing
Shipping is the least environmentally damaging form of commercial transport
and compared with land based industry is a comparatively minor contributor
to marine pollution from human activities
There has been a substantial reduction in marine pollution over the last 15
years especially with regard to the amount of oil spilled into the sea despite
a massive increase in world sea borne trade
Surprising perspective
In macro scale shipping is considered a marginal sources of emissions of
GHG Shipping is responsible for about 25-3 of marine pollution However
it is not a reason to stop improving our environmental performance
ENVIRONMENTAL PERFORMANCE OF SHIPPING INDUSTRY
ldquoQUALITY is never an accident
it is always the result of high intention
sincere effort intelligent direction and
skillful execution it represents the
wise choice of many alternativesrdquo
-William A Foster
Flag States
Vetting Charterer
Inspections
PSC Regimes
LSC Owners
Assoc
Under-writers
Multi-National
Legislative Efforts
Class Societies
FLAG STATES ndash Shaping Regulatory Environment
Become involvedhellip
Participate in
Regulatory Debateshellip
Ask more from your
Flag State
LIBERIA
IMO Council Member
Maritime Safety Committee (MSC)
The Marine Environment Protection Committee (MEPC)
Periodical meetings with ROrsquos IACS Members
Continuous dialogue with Liberian Shipownersrsquo Council
Daily contact with PSC authorities
Participation in international conferences
Workshops for owners managers crewing agents (ISPS MLC WRChellip)
Testing Ballast Water Treatment Systems
FLAG STATES ndash Shaping Regulatory Environment
1 Adopting a convention
Participation in development process
2 Entry into force
Each convention includes appropriate provisions stipulating conditions which
have to be met before it enters into force A portion of world fleet tonnage or
minimum number of members
3 Ratification
It is the precursor of effective implementation of IMO instruments
4 Enforcement
The enforcement of IMO conventions depends upon the Governments of Member
Parties IMO Regulations are implemented and applied to ships on a global basis
through a combination of flag state enforcement and Port State Cintrol
IMO vs FLAG STATES ndash Implementation of Conventions
REDUCTION IN MAJOR OIL SPILLS
Over the last two and a half decades the average
number of spills greater than 7 tonnes has progressively
reduced by half
In terms of the volume of oil spilt the figures for a particular year may be severely
distorted by a single large incident
Concerns of various stakeholders about environmental impact byshipping related activities
High Fuel cost accounts for over 50 of total running costs
Change of shipbuilding philosophy since 2012
Eco Vessels - creating a two-tier market gaining the competitiveadvantage
Ships will gain very significantly from efficiency improvements
SHIPPING and ENVIRONMENTAL CONCERNSndash Shaping Regulatory Environment
livestock account for a significant proportion of greenhouse gas (GHG)
emissions and global consumption of livestock products is growing rapidly -
CH 4 NH 3 N 2 O
in the United States and the other developed countries CO2 emissions from
the use of motor vehicles alone (including emissions from feedstock recovery
processing and distribution and from vehicle manufacture) have constituted
up to 30 of the total CO2 emissions from the use of all fossil fuels
Chlorofluorocarbon - CFC
Freon (CF2Cl2) - CFC-12
Methane - CH4
Carbon monoxide - CO
Carbon dioxide - CO2
Hydrogen - H2
Methanol - MeOH
POLLUTION CONTROL
Methyl tertiary butyl ether -
MTBE
Nitrous oxide - N2O
Nitrogen oxides - NOx
Ozone - O3
Sulfur oxides - SOx
Sulfur oxides - SOx
Green Technology Location on Vessel
GREEN SHIP INNOVATION
Innovative environmental retrofit finance program designed to reduce global carbon emmissions enhance the Liberian fleet efficiency and competivness and promote a green Liberian fleet
Partnership with Efficient Ship Finance (ESF) a US based speciality ship finance firm Annual operating expense reduced additionally through lowered Registration Fees in
Liberia- 1st YEAR 50 annual tonnage tax discount- 2nd YEAR 25 annual tonnage tax discount- 3rd YEAR 25 annual tonnage tax discount
Liberiarsquos Partnership Program for Eco Upgrade Financing
Shipping is the least environmentally damaging form of commercial transport
and compared with land based industry is a comparatively minor contributor
to marine pollution from human activities
There has been a substantial reduction in marine pollution over the last 15
years especially with regard to the amount of oil spilled into the sea despite
a massive increase in world sea borne trade
Surprising perspective
In macro scale shipping is considered a marginal sources of emissions of
GHG Shipping is responsible for about 25-3 of marine pollution However
it is not a reason to stop improving our environmental performance
ENVIRONMENTAL PERFORMANCE OF SHIPPING INDUSTRY
ldquoQUALITY is never an accident
it is always the result of high intention
sincere effort intelligent direction and
skillful execution it represents the
wise choice of many alternativesrdquo
-William A Foster
LIBERIA
IMO Council Member
Maritime Safety Committee (MSC)
The Marine Environment Protection Committee (MEPC)
Periodical meetings with ROrsquos IACS Members
Continuous dialogue with Liberian Shipownersrsquo Council
Daily contact with PSC authorities
Participation in international conferences
Workshops for owners managers crewing agents (ISPS MLC WRChellip)
Testing Ballast Water Treatment Systems
FLAG STATES ndash Shaping Regulatory Environment
1 Adopting a convention
Participation in development process
2 Entry into force
Each convention includes appropriate provisions stipulating conditions which
have to be met before it enters into force A portion of world fleet tonnage or
minimum number of members
3 Ratification
It is the precursor of effective implementation of IMO instruments
4 Enforcement
The enforcement of IMO conventions depends upon the Governments of Member
Parties IMO Regulations are implemented and applied to ships on a global basis
through a combination of flag state enforcement and Port State Cintrol
IMO vs FLAG STATES ndash Implementation of Conventions
REDUCTION IN MAJOR OIL SPILLS
Over the last two and a half decades the average
number of spills greater than 7 tonnes has progressively
reduced by half
In terms of the volume of oil spilt the figures for a particular year may be severely
distorted by a single large incident
Concerns of various stakeholders about environmental impact byshipping related activities
High Fuel cost accounts for over 50 of total running costs
Change of shipbuilding philosophy since 2012
Eco Vessels - creating a two-tier market gaining the competitiveadvantage
Ships will gain very significantly from efficiency improvements
SHIPPING and ENVIRONMENTAL CONCERNSndash Shaping Regulatory Environment
livestock account for a significant proportion of greenhouse gas (GHG)
emissions and global consumption of livestock products is growing rapidly -
CH 4 NH 3 N 2 O
in the United States and the other developed countries CO2 emissions from
the use of motor vehicles alone (including emissions from feedstock recovery
processing and distribution and from vehicle manufacture) have constituted
up to 30 of the total CO2 emissions from the use of all fossil fuels
Chlorofluorocarbon - CFC
Freon (CF2Cl2) - CFC-12
Methane - CH4
Carbon monoxide - CO
Carbon dioxide - CO2
Hydrogen - H2
Methanol - MeOH
POLLUTION CONTROL
Methyl tertiary butyl ether -
MTBE
Nitrous oxide - N2O
Nitrogen oxides - NOx
Ozone - O3
Sulfur oxides - SOx
Sulfur oxides - SOx
Green Technology Location on Vessel
GREEN SHIP INNOVATION
Innovative environmental retrofit finance program designed to reduce global carbon emmissions enhance the Liberian fleet efficiency and competivness and promote a green Liberian fleet
Partnership with Efficient Ship Finance (ESF) a US based speciality ship finance firm Annual operating expense reduced additionally through lowered Registration Fees in
Liberia- 1st YEAR 50 annual tonnage tax discount- 2nd YEAR 25 annual tonnage tax discount- 3rd YEAR 25 annual tonnage tax discount
Liberiarsquos Partnership Program for Eco Upgrade Financing
Shipping is the least environmentally damaging form of commercial transport
and compared with land based industry is a comparatively minor contributor
to marine pollution from human activities
There has been a substantial reduction in marine pollution over the last 15
years especially with regard to the amount of oil spilled into the sea despite
a massive increase in world sea borne trade
Surprising perspective
In macro scale shipping is considered a marginal sources of emissions of
GHG Shipping is responsible for about 25-3 of marine pollution However
it is not a reason to stop improving our environmental performance
ENVIRONMENTAL PERFORMANCE OF SHIPPING INDUSTRY
ldquoQUALITY is never an accident
it is always the result of high intention
sincere effort intelligent direction and
skillful execution it represents the
wise choice of many alternativesrdquo
-William A Foster
1 Adopting a convention
Participation in development process
2 Entry into force
Each convention includes appropriate provisions stipulating conditions which
have to be met before it enters into force A portion of world fleet tonnage or
minimum number of members
3 Ratification
It is the precursor of effective implementation of IMO instruments
4 Enforcement
The enforcement of IMO conventions depends upon the Governments of Member
Parties IMO Regulations are implemented and applied to ships on a global basis
through a combination of flag state enforcement and Port State Cintrol
IMO vs FLAG STATES ndash Implementation of Conventions
REDUCTION IN MAJOR OIL SPILLS
Over the last two and a half decades the average
number of spills greater than 7 tonnes has progressively
reduced by half
In terms of the volume of oil spilt the figures for a particular year may be severely
distorted by a single large incident
Concerns of various stakeholders about environmental impact byshipping related activities
High Fuel cost accounts for over 50 of total running costs
Change of shipbuilding philosophy since 2012
Eco Vessels - creating a two-tier market gaining the competitiveadvantage
Ships will gain very significantly from efficiency improvements
SHIPPING and ENVIRONMENTAL CONCERNSndash Shaping Regulatory Environment
livestock account for a significant proportion of greenhouse gas (GHG)
emissions and global consumption of livestock products is growing rapidly -
CH 4 NH 3 N 2 O
in the United States and the other developed countries CO2 emissions from
the use of motor vehicles alone (including emissions from feedstock recovery
processing and distribution and from vehicle manufacture) have constituted
up to 30 of the total CO2 emissions from the use of all fossil fuels
Chlorofluorocarbon - CFC
Freon (CF2Cl2) - CFC-12
Methane - CH4
Carbon monoxide - CO
Carbon dioxide - CO2
Hydrogen - H2
Methanol - MeOH
POLLUTION CONTROL
Methyl tertiary butyl ether -
MTBE
Nitrous oxide - N2O
Nitrogen oxides - NOx
Ozone - O3
Sulfur oxides - SOx
Sulfur oxides - SOx
Green Technology Location on Vessel
GREEN SHIP INNOVATION
Innovative environmental retrofit finance program designed to reduce global carbon emmissions enhance the Liberian fleet efficiency and competivness and promote a green Liberian fleet
Partnership with Efficient Ship Finance (ESF) a US based speciality ship finance firm Annual operating expense reduced additionally through lowered Registration Fees in
Liberia- 1st YEAR 50 annual tonnage tax discount- 2nd YEAR 25 annual tonnage tax discount- 3rd YEAR 25 annual tonnage tax discount
Liberiarsquos Partnership Program for Eco Upgrade Financing
Shipping is the least environmentally damaging form of commercial transport
and compared with land based industry is a comparatively minor contributor
to marine pollution from human activities
There has been a substantial reduction in marine pollution over the last 15
years especially with regard to the amount of oil spilled into the sea despite
a massive increase in world sea borne trade
Surprising perspective
In macro scale shipping is considered a marginal sources of emissions of
GHG Shipping is responsible for about 25-3 of marine pollution However
it is not a reason to stop improving our environmental performance
ENVIRONMENTAL PERFORMANCE OF SHIPPING INDUSTRY
ldquoQUALITY is never an accident
it is always the result of high intention
sincere effort intelligent direction and
skillful execution it represents the
wise choice of many alternativesrdquo
-William A Foster
REDUCTION IN MAJOR OIL SPILLS
Over the last two and a half decades the average
number of spills greater than 7 tonnes has progressively
reduced by half
In terms of the volume of oil spilt the figures for a particular year may be severely
distorted by a single large incident
Concerns of various stakeholders about environmental impact byshipping related activities
High Fuel cost accounts for over 50 of total running costs
Change of shipbuilding philosophy since 2012
Eco Vessels - creating a two-tier market gaining the competitiveadvantage
Ships will gain very significantly from efficiency improvements
SHIPPING and ENVIRONMENTAL CONCERNSndash Shaping Regulatory Environment
livestock account for a significant proportion of greenhouse gas (GHG)
emissions and global consumption of livestock products is growing rapidly -
CH 4 NH 3 N 2 O
in the United States and the other developed countries CO2 emissions from
the use of motor vehicles alone (including emissions from feedstock recovery
processing and distribution and from vehicle manufacture) have constituted
up to 30 of the total CO2 emissions from the use of all fossil fuels
Chlorofluorocarbon - CFC
Freon (CF2Cl2) - CFC-12
Methane - CH4
Carbon monoxide - CO
Carbon dioxide - CO2
Hydrogen - H2
Methanol - MeOH
POLLUTION CONTROL
Methyl tertiary butyl ether -
MTBE
Nitrous oxide - N2O
Nitrogen oxides - NOx
Ozone - O3
Sulfur oxides - SOx
Sulfur oxides - SOx
Green Technology Location on Vessel
GREEN SHIP INNOVATION
Innovative environmental retrofit finance program designed to reduce global carbon emmissions enhance the Liberian fleet efficiency and competivness and promote a green Liberian fleet
Partnership with Efficient Ship Finance (ESF) a US based speciality ship finance firm Annual operating expense reduced additionally through lowered Registration Fees in
Liberia- 1st YEAR 50 annual tonnage tax discount- 2nd YEAR 25 annual tonnage tax discount- 3rd YEAR 25 annual tonnage tax discount
Liberiarsquos Partnership Program for Eco Upgrade Financing
Shipping is the least environmentally damaging form of commercial transport
and compared with land based industry is a comparatively minor contributor
to marine pollution from human activities
There has been a substantial reduction in marine pollution over the last 15
years especially with regard to the amount of oil spilled into the sea despite
a massive increase in world sea borne trade
Surprising perspective
In macro scale shipping is considered a marginal sources of emissions of
GHG Shipping is responsible for about 25-3 of marine pollution However
it is not a reason to stop improving our environmental performance
ENVIRONMENTAL PERFORMANCE OF SHIPPING INDUSTRY
ldquoQUALITY is never an accident
it is always the result of high intention
sincere effort intelligent direction and
skillful execution it represents the
wise choice of many alternativesrdquo
-William A Foster
Concerns of various stakeholders about environmental impact byshipping related activities
High Fuel cost accounts for over 50 of total running costs
Change of shipbuilding philosophy since 2012
Eco Vessels - creating a two-tier market gaining the competitiveadvantage
Ships will gain very significantly from efficiency improvements
SHIPPING and ENVIRONMENTAL CONCERNSndash Shaping Regulatory Environment
livestock account for a significant proportion of greenhouse gas (GHG)
emissions and global consumption of livestock products is growing rapidly -
CH 4 NH 3 N 2 O
in the United States and the other developed countries CO2 emissions from
the use of motor vehicles alone (including emissions from feedstock recovery
processing and distribution and from vehicle manufacture) have constituted
up to 30 of the total CO2 emissions from the use of all fossil fuels
Chlorofluorocarbon - CFC
Freon (CF2Cl2) - CFC-12
Methane - CH4
Carbon monoxide - CO
Carbon dioxide - CO2
Hydrogen - H2
Methanol - MeOH
POLLUTION CONTROL
Methyl tertiary butyl ether -
MTBE
Nitrous oxide - N2O
Nitrogen oxides - NOx
Ozone - O3
Sulfur oxides - SOx
Sulfur oxides - SOx
Green Technology Location on Vessel
GREEN SHIP INNOVATION
Innovative environmental retrofit finance program designed to reduce global carbon emmissions enhance the Liberian fleet efficiency and competivness and promote a green Liberian fleet
Partnership with Efficient Ship Finance (ESF) a US based speciality ship finance firm Annual operating expense reduced additionally through lowered Registration Fees in
Liberia- 1st YEAR 50 annual tonnage tax discount- 2nd YEAR 25 annual tonnage tax discount- 3rd YEAR 25 annual tonnage tax discount
Liberiarsquos Partnership Program for Eco Upgrade Financing
Shipping is the least environmentally damaging form of commercial transport
and compared with land based industry is a comparatively minor contributor
to marine pollution from human activities
There has been a substantial reduction in marine pollution over the last 15
years especially with regard to the amount of oil spilled into the sea despite
a massive increase in world sea borne trade
Surprising perspective
In macro scale shipping is considered a marginal sources of emissions of
GHG Shipping is responsible for about 25-3 of marine pollution However
it is not a reason to stop improving our environmental performance
ENVIRONMENTAL PERFORMANCE OF SHIPPING INDUSTRY
ldquoQUALITY is never an accident
it is always the result of high intention
sincere effort intelligent direction and
skillful execution it represents the
wise choice of many alternativesrdquo
-William A Foster
livestock account for a significant proportion of greenhouse gas (GHG)
emissions and global consumption of livestock products is growing rapidly -
CH 4 NH 3 N 2 O
in the United States and the other developed countries CO2 emissions from
the use of motor vehicles alone (including emissions from feedstock recovery
processing and distribution and from vehicle manufacture) have constituted
up to 30 of the total CO2 emissions from the use of all fossil fuels
Chlorofluorocarbon - CFC
Freon (CF2Cl2) - CFC-12
Methane - CH4
Carbon monoxide - CO
Carbon dioxide - CO2
Hydrogen - H2
Methanol - MeOH
POLLUTION CONTROL
Methyl tertiary butyl ether -
MTBE
Nitrous oxide - N2O
Nitrogen oxides - NOx
Ozone - O3
Sulfur oxides - SOx
Sulfur oxides - SOx
Green Technology Location on Vessel
GREEN SHIP INNOVATION
Innovative environmental retrofit finance program designed to reduce global carbon emmissions enhance the Liberian fleet efficiency and competivness and promote a green Liberian fleet
Partnership with Efficient Ship Finance (ESF) a US based speciality ship finance firm Annual operating expense reduced additionally through lowered Registration Fees in
Liberia- 1st YEAR 50 annual tonnage tax discount- 2nd YEAR 25 annual tonnage tax discount- 3rd YEAR 25 annual tonnage tax discount
Liberiarsquos Partnership Program for Eco Upgrade Financing
Shipping is the least environmentally damaging form of commercial transport
and compared with land based industry is a comparatively minor contributor
to marine pollution from human activities
There has been a substantial reduction in marine pollution over the last 15
years especially with regard to the amount of oil spilled into the sea despite
a massive increase in world sea borne trade
Surprising perspective
In macro scale shipping is considered a marginal sources of emissions of
GHG Shipping is responsible for about 25-3 of marine pollution However
it is not a reason to stop improving our environmental performance
ENVIRONMENTAL PERFORMANCE OF SHIPPING INDUSTRY
ldquoQUALITY is never an accident
it is always the result of high intention
sincere effort intelligent direction and
skillful execution it represents the
wise choice of many alternativesrdquo
-William A Foster
Green Technology Location on Vessel
GREEN SHIP INNOVATION
Innovative environmental retrofit finance program designed to reduce global carbon emmissions enhance the Liberian fleet efficiency and competivness and promote a green Liberian fleet
Partnership with Efficient Ship Finance (ESF) a US based speciality ship finance firm Annual operating expense reduced additionally through lowered Registration Fees in
Liberia- 1st YEAR 50 annual tonnage tax discount- 2nd YEAR 25 annual tonnage tax discount- 3rd YEAR 25 annual tonnage tax discount
Liberiarsquos Partnership Program for Eco Upgrade Financing
Shipping is the least environmentally damaging form of commercial transport
and compared with land based industry is a comparatively minor contributor
to marine pollution from human activities
There has been a substantial reduction in marine pollution over the last 15
years especially with regard to the amount of oil spilled into the sea despite
a massive increase in world sea borne trade
Surprising perspective
In macro scale shipping is considered a marginal sources of emissions of
GHG Shipping is responsible for about 25-3 of marine pollution However
it is not a reason to stop improving our environmental performance
ENVIRONMENTAL PERFORMANCE OF SHIPPING INDUSTRY
ldquoQUALITY is never an accident
it is always the result of high intention
sincere effort intelligent direction and
skillful execution it represents the
wise choice of many alternativesrdquo
-William A Foster
GREEN SHIP INNOVATION
Innovative environmental retrofit finance program designed to reduce global carbon emmissions enhance the Liberian fleet efficiency and competivness and promote a green Liberian fleet
Partnership with Efficient Ship Finance (ESF) a US based speciality ship finance firm Annual operating expense reduced additionally through lowered Registration Fees in
Liberia- 1st YEAR 50 annual tonnage tax discount- 2nd YEAR 25 annual tonnage tax discount- 3rd YEAR 25 annual tonnage tax discount
Liberiarsquos Partnership Program for Eco Upgrade Financing
Shipping is the least environmentally damaging form of commercial transport
and compared with land based industry is a comparatively minor contributor
to marine pollution from human activities
There has been a substantial reduction in marine pollution over the last 15
years especially with regard to the amount of oil spilled into the sea despite
a massive increase in world sea borne trade
Surprising perspective
In macro scale shipping is considered a marginal sources of emissions of
GHG Shipping is responsible for about 25-3 of marine pollution However
it is not a reason to stop improving our environmental performance
ENVIRONMENTAL PERFORMANCE OF SHIPPING INDUSTRY
ldquoQUALITY is never an accident
it is always the result of high intention
sincere effort intelligent direction and
skillful execution it represents the
wise choice of many alternativesrdquo
-William A Foster
Shipping is the least environmentally damaging form of commercial transport
and compared with land based industry is a comparatively minor contributor
to marine pollution from human activities
There has been a substantial reduction in marine pollution over the last 15
years especially with regard to the amount of oil spilled into the sea despite
a massive increase in world sea borne trade
Surprising perspective
In macro scale shipping is considered a marginal sources of emissions of
GHG Shipping is responsible for about 25-3 of marine pollution However
it is not a reason to stop improving our environmental performance
ENVIRONMENTAL PERFORMANCE OF SHIPPING INDUSTRY
ldquoQUALITY is never an accident
it is always the result of high intention
sincere effort intelligent direction and
skillful execution it represents the
wise choice of many alternativesrdquo
-William A Foster
ldquoQUALITY is never an accident
it is always the result of high intention
sincere effort intelligent direction and
skillful execution it represents the
wise choice of many alternativesrdquo
-William A Foster
