The

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The ROUND TABLE of international shipping
associations
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BIMCO International Chamber of Shipping (Internati
onal Shipping Federation) INTERCARGO INTERTANKO
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Vision for the shipping industry A
responsible, sustainable and respected industry
able to influence its own destiny
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• The ROUND TABLE of international shipping
  associations
• voluntary cooperation to
• Promote common policy positions
  representative of wide common membership
• Provide strong and united shipowner voice
  in International Forums
• Ensure more effective use of limited
  resources
• Avoid surprises / resolve potential conflicts
  in policies

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Examples of Round Table cooperation

• Joint submissions to IMO
• Common positions with respect to EU issues
• Establishment of INTERGROUP as formal stakeholder
  interface with EU Parliament,
  Commission, Council and EMSA
• Tripartite meetings of owners, builders and class
• Flag State guidelines (updated)
• The image of shipping working with IMO et al

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• AGENDA
• Maintaining Supremacy of IMO International
  Maritime Law
• Common Structural Rules Goal Based Standards
• Criminalisation of Seafarers
• Challenges to Industry Governance Structures
• Other
• People issues Piracy
• Ship Recycling Environmental Challenges
• Competition Rules Security
• Oil Pollution Liability ( Compensation)

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Maintaining Supremacy of IMO International
Maritime Law Against the challenges of Local and
Regional Legislation
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15 years ago the US Today Europe !!
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Increasing politicization of regulation

• Examples
• Phase out of single hull tankers
• West European Particularly Sensitive Sea Area
• Moves to open up CLC/Fund Convention and link
  with substandard shipping
• Penal sanctions adopted by EU, criminalising
  accidental pollution
• Why?
• Coastal state interests versus flag states, and
  reduced influence of maritime constituency
• Power of EU Commission

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THE EUROPEAN INSTITUTIONS the power plays
Commission (The executive)
EMSA
European Parliament (Direct election)
Council (Member States)
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HOW IT WAS Examples of positive regulatory
developments (the IMO spirit)

• ISM Code and STCW (training)
• post Estonia passenger ferry measures
• IMO bulk carrier safety package
• Development of ILO Super Convention
• Outcomes broadly based on technical merits of
  arguments put forward.
• Industry viewpoint understood, if not always
  accepted.

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HOW IT IS The Challenges Today

• More political drivers and less consideration of
  the technical, operational, and commercial
  interests
• More unworkable, inconsistent and illogical
  regulation and less consideration of the
  practical aspects
• More pressure for local / regional regulation and
  less willingness to adopt and apply international
  regulation

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Maintaining Supremacy of IMO International
Maritime Law

• What are the threats?
• 15 Years Ago the United States (OPA90)
• Today the European Union
• Politics post Erika and Prestige
• Conflict with International legislation (UNCLOS,
  MARPOL)
• Criminalisation
• EU Commission proposals for EU Common Position at
  IMO

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Maintaining Supremacy of IMO International
Maritime Law

• International Regulation for an International
  Industry
• What the industry seeks from the Asian region
• Consistent support for IMO and the international
  approach
• Rejection of regional initiatives
• If possible, avoidance of block voting to
  combat EU moves in this direction

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Maintaining Supremacy of IMO International
Maritime Law

• International Regulation for an International
  Industry
• Questions
• How can we involve Asian industry more
  effectively?
• What are the principal concerns seen through
  Asian eyes?
• Can the RT interact better with Asian shipping
  community on these matters?

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Common Structural Rules Goal Based Standards
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Common Structural Rules

• Background
• Concerns over erosion of design margins and
  construction tolerances due to
• Competition for Market Share by Classification
  Societies
• More refined design capabilities
• Pressure from shipyards to minimise steel weights
  
• Pressure from owners for lower costs of
  newbuildings

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Common Structural Rules

• Consequences of reduced design margins
• Greater focus is placed on ship maintenance
  procedures
• Increasing concerns expressed by regulators on
  structural integrity of existing ships
• Challenges to function of classification
  societies
• Introduction of Goal Based Standards for ship
  construction at IMO

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Common Structural Rules

• Current situation
• TANKER rules (JTP) developed by Lloyds Register,
  ABS, Norske Veritas (LAN)
• Generally acceptable to much of industry (subject
  certain caveats) but not all
• Limited support from other IACS members
• BULK CARRIER rules (JBP) developed by 7 IACS
  members
• Mixed reception from industry (many caveats)
• Support from LAN IACS members not forthcoming
• Only limited harmonisation of design assumptions
  and modelling techniques between JTP and JBP
• IACS under considerable strain to maintain
  cohesive position and internal harmony

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Common Structural Rules

• Outstanding issues
• Around harmonisation
• Influence of prescriptive requirements
• Wave shear force and wave loads
• Buckling and ultimate strength
• Finite Element Calculation procedure
• Fatigue analysis
• Industry acceptance of
• Corrosion allowances
• Verification of coatings (application
  performance)

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Goal Based Standards

• Introduced in to IMO by Bahamas and Greece
  following Prestige accident
• Initially addressing ship structural standards,
  but with potential for extension to much of SOLAS
  and MARPOL legislation and more
• Principles still being debated versus other
  methodologies (prescriptive versus risk based)

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Simplified Tier Concept
Goal-based Safety Objectives
Tier I
Tier II
Goal-based Functional Requirements
Design and Construction
Maintenance
Operation
Tier III
Verification of Compliance
Class Rules (Detailed requirement)
Tier IV
Code of Practice for Construction, Maintenance
and Operation
Tier V
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Common Structural Rules

• Is there support for the principle of Common
  Structural Rules ?
• Subject to clarification of current drafts, is
  it now prudent to support the latest versions of
  both JTP and JBP rules, while at the same time
  encouraging further progressive harmonisation
  between the tanker and bulker rules ?
• How important is IACS unity and what can
  industry do to support encourage this ?

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Criminalisation of Seafarers
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CRIMINALISATION

• Traditionally accidents have been regarded as
  quite distinct from deliberate acts
• Attitudes have changed (scapegoat mentality)
• e.g. Captain Mangouras, The Karachi Eight
• EU Directive on Ship-Source Pollution (despite
  wide industry coalition)
• Canadian Bill C-15
• US approach (whistle blowing, enormous fines and
  rewards)

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Criminalisation

• INDUSTRY supports the investigation and
  prosecution of illegal discharges of oil from
  ships.
• INDUSTRY strongly objects to criminalising
  accidental oil pollution and to treating
  seafarers as criminals
• Any criminal offence of pollution from a ship
  must be clearly defined and in accordance with
  international law.
• Any penalties imposed on someone found guilty of
  such an offence must be proportionate.
• There should also be parity with any penalties
  imposed for pollution from land based sources.
• Any suspects must be treated fairly, impartially
  and in accordance with international law on human
  rights.

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Criminalisation

• Additionally
• INDUSTRY expects coastal states to comply with
  their existing treaty law obligations to provide
  adequate, affordable, oil waste reception
  facilities.
• In order to safeguard the lives of seafarers and
  the marine environment, INDUSTRY urges coastal
  states to ensure proper contingency plans are put
  in place so that adequate assistance and if
  necessary a place of refuge can be made available
  to a ship in distress.

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CRIMINALISATION

• Do Asian owners share these concerns ?
• Is there a downside in fighting this?
• How / where should we be concentrating our
  efforts?
• INDUSTRY principles are they universally
  supported?

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Challenges to Industry Governance
Structures Flag Classification Societies Port
State Control PI Clubs
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The good, the bad and all legitimate

• Selection of Flag

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Challenges for Flag

• IMO Flag State Audit (currently voluntary but
  pressure to make mandatory)
• Port State Control
• - Currently white, black and grey lists
• - EU moving to target non-audited flags with
  preferential treatment measures
• Political, public, union and media pressures
  especially on open registers
• Industry currently providing guidance /
  recommendations, and moving to do more

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Flag State Guidelines- industry advice
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Challenges for Classification Societies

• EU Challenge on Role of Class
• perceived conflict of interest between
  statutory and classification activities
• Common Structural Rules
• ability to deliver while maintaining IACS
  harmony
• Role relative to Goal Based Standards
• IMO/Flag states versus IACS control of Goal
  Based Standards
• Who sets class agenda owners, builders, flag
  states or class managers ?
• Example coatings standards (IMO DE discussion)

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Challenges for Port State Control (PSC)

• Need
• Better harmonisation and consistency of
  standards, training, etc. across all PSC regimes
• Consistency in inspection and targeting criteria
  based in part on analysis of PSC records and
  not arbitrary mechansisms, such as quota systems
• Global sharing and mutual recognition of records
  between MoUs, with data logged in central system
  such as EQUASIS
• Uniformity in internal procedures, such as clear
  grounds for detention, independent appeal panels,
  close-out of deficiencies, etc.
• To ensure that the integrity of PSC is maintained

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Challenges for PI Clubs Club Boards

• OECD Report Role of PI in respect of
  substandard shipping
• IOPC Revision Procedures
• Pending Compulsory Insurance requirements
• Who manages the agenda
• Shipowners or Club Managers ?

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• Challenges to Industry Governance Structures
• Do Asian shipowners share the same concerns over
  these challenges for Flag, Classification
  Societies, Port State Control and PI Clubs ?
• What are the particular concerns ?
• Could we be doing more collectively to address
  any of these concerns ?

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• Two Questions that we have asked ourselves
• Can the Round Table involve regional shipping
  voices more effectively in global (and other
  regional) arenas ?
• Does the Round Table have a role in supporting
  local and regional shipping associations in their
  local and regional issues ?

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• AGENDA
• Maintaining Supremacy of IMO International
  Maritime Law
• Common Structural Rules Goal Based Standards
• Criminalisation of Seafarers
• Challenges to Industry Governance Structures
• Other
• People issues Piracy
• Ship Recycling Environmental Challenges
• Competition Rules Security
• Oil Pollution Liability ( Compensation)

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PEOPLE ISSUES(HUMAN FACTORS)

• Heavy recent concentration on hardware issues
• (e.g. accelerated phase-out, CSRs, goal-based
  standards etc)
• Yet people still cause most incidents

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PEOPLE ISSUES(HUMAN FACTORS)

• Industry has to address
• Shortages of qualified officers (BIMCO/ISF 2005)
• Renewed criticisms of training standards (time
  to review STCW 95 ?)
• Implications/causes of fatigue (ISPS etc.)
• Manning levels
• In the background, CONMARCON

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PIRACY

• Extent of the problem
• Focus of attention on Regions
• - Malacca Straits
• - Somalia
• - West Africa
• Developments

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• There is still a problem Worldwide
• - 2003 445 attacks
• - 2004 325 attacks
• Malacca Straits
• - 2003 28 attacks
• - 2004 37 attacks

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Crew Members - 2004 30 killed, 30 missing In
Malacca Straits - 2004 4 killed, 3 injured, 36
kidnapped Indonesia accounts for 25 of all
attacks worldwide
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• Somalia
• Concerted attacks against larger ships
• 60 nm off the coast
• West Africa
• - Denial of a problem
• - Lagos has the highest record of attacks

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• Targets
• Tug Tows
• Low in the water
• Slow moving
• Small Tankers
• Bulk Carriers

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Current developments Improved cooperation and
joint patrols in Malacca Strait, July
2004 Pan-Asia anti-piracy initiative Regional
Cooperation Agreement or ReCAAP Malaysian
Maritime Enforcement Agency 6 patrol boats up
to 40 vessels plus helicopters within 5 years.
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• Current developments (cont.)
• Inventus UAV
• Unmanned Aerial Vehicle
• Reconnaissance system for aerial surveillance
• Secure Ship
• - 9000 volt pulse to deter boardings
• Shiploc
• Ship security alert system
• Ship tracking device

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• PROBLEMS REMAIN
• Hot Pursuit
• Lack of Resources
• Need for an effective deterrent

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Ship Recycling ship breaking, scrapping,
demolition
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International guidelines on best practice
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Ship Recycling

• Industry supporting
• measures to ensure that ship recycling not just a
  sound but a sustainable industry
• development of effective regulation through
  adoption of the relevant elements of the
• - IMO Guidelines on Ship Recycling
• - ILO Safety Health Guidelines on Shipbreaking
• - Technical Guidelines of the Basel Convention

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Ship Recycling Issues for shipowners

• Green Passport format to be standardised
• IMO Guidelines
• - key elements to be made mandatory via
  international convention
• - guidance notes being developed on the
  implemenation of the Guidelines
• Inventory of Hazardous Materials document
• - still only limited utilisation
• Demolition Contract related to the IMO Guidelines
  (such as BIMCO Demolishcon)
• - only limited application to date

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Ship Recycling Issues for shipbreakers

• In general there is a need for
• development and introduction of Code of Practice
  for HSE management
• and/or legislation to ensure compliance with
  best practice / international conventions
• breaking yards to be licensed
• specifically
• Breakers need to adopt and implement
• Ship Recycling Plan as set out in the IMO
  Guidelines
• Health and Safety plans as set out in the ILO
  Guidelines
• Plans for the handling of hazardous waste as set
  out in the Basel Convention

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Environmental Challenges

• Air Emissions
• (Low sulphur bunker issues)
• Ballast Water Management

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IOPC Compensation Limits- as revised 2003/2005