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International Chemical and Oil International Chemical and Oil Pollution Conference and Pollution Conference and
Exhibition 2005Exhibition 2005
The Political Envionment Surrounding Safe The Political Envionment Surrounding Safe ShippingShipping
ByByJohn C. Fawcett-EllisJohn C. Fawcett-Ellis
General Counsel & Regional Manager Asia-PacificGeneral Counsel & Regional Manager Asia-Pacific
Singapore, 28 September 2005Singapore, 28 September 2005
- representing representing responsible oil and responsible oil and chemical tanker owners chemical tanker owners worldwideworldwide
- promoting Safer Ships, promoting Safer Ships, CleanerCleaner Seas and Free Seas and Free CompetitionCompetition
-strict membership strict membership criteria based on quality criteria based on quality and performanceand performance
The strength of INTERTANKOThe strength of INTERTANKO
230 members – operating some 2,200 tankers 230 members – operating some 2,200 tankers (170 million DWT)(170 million DWT)
280 associate members280 associate members 26 staff 26 staff Oslo, London, S’pore and Washington DCOslo, London, S’pore and Washington DC Chairman – Mr S Van Dyck Chairman – Mr S Van Dyck 14 committees14 committees 4 regional panel4 regional panel
INTERTANKO’s vision for the tanker industry:
“ A responsible, sustainable and respected industry able to influence its own destiny.”
AS AN INDUSTRY WE MAY NOT BE LOVED BUT WE ARE NEEDED
• World Oil World Oil Consumption 3.6 Consumption 3.6 billion tsbillion ts
• Transported by sea Transported by sea 2.2 2.2 billion tsbillion ts
• 6060% transported by sea.% transported by sea.
The world needs tankersThe world needs tankers
Regular supply critical Regular supply critical
““Oil should travel first class”Oil should travel first class”- that is the aim of the oil shipping industry- that is the aim of the oil shipping industry
Tanker incidents: 1978-03
Source: LMIS, Informa, press, INTERTANKO
Number
0
200
400
600
800
1000
78 80 82 84 86 88 90 92 94 96 98 00 02
Grounded
War
Misc
Hull&Machinery
Fire/Expl
Collision
Development of tanker oil spills
Source: ITOPF. Number of spills above 700 tonnes.
Accidental oil pollution from tankers and tanker trade
Source: ITOPF, Fearnleys
1000 bn tmm ts spilt
0,0
0,7
1,4
2,1
2,8
3,5
1970s 1980s 1990s PR00s
0
22
44
66
88
110
132
m ts spilt
'0000 bntonne-miles
Fleet by hullpercentage
622
6074
83
9478
4940
2617
49
0
20
40
60
80
100
1991 1997 End 02 End 03 End 05 End 10
SH* share (%)
DH share (%)
End 05, all tankers built 1982 and earlier goneEnd 10, all tankers built 1987 and earlier gonetrading beyond 2010 subject to administrations
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)
Maintaining Supremacy of IMO & International Maritime Law
Against the challenges of Local and Regional Legislation
Increasing politicization of Increasing politicization of regulationregulation
Examples:Examples: Phase out of single hull tankersPhase out of single hull tankers West European Particularly Sensitive Sea Area West European Particularly Sensitive Sea Area Moves to open up CLC/Fund Convention and link Moves to open up CLC/Fund Convention and link
with substandard shippingwith substandard shipping Penal sanctions adopted by EU, criminalising Penal sanctions adopted by EU, criminalising
accidental pollutionaccidental pollution
Why? Why? Coastal state interests versus flag states, and Coastal state interests versus flag states, and
reduced influence of maritime constituencyreduced influence of maritime constituency Power of EU Commission Power of EU Commission
Commission (The executive)
THE EUROPEAN INSTITUTIONSTHE EUROPEAN INSTITUTIONS& the power plays& the power plays
EuropeanParliament
(Direct election)
Council(Member States)
EMSA
HOW IT WAS: HOW IT WAS: Examples of positive regulatory developments Examples of positive regulatory developments
(the “IMO spirit”)(the “IMO spirit”)
ISM Code and STCW (training)ISM Code and STCW (training)
Outcomes broadly based on technical Outcomes broadly based on technical merits of arguments put forward. merits of arguments put forward.
Industry viewpoint understood, if not Industry viewpoint understood, if not always accepted.always accepted.
HOW IT IS: HOW IT IS: The Challenges TodayThe Challenges Today
More political drivers and less consideration of the More political drivers and less consideration of the technical, operational, and commercial intereststechnical, operational, and commercial interests
More unworkable, inconsistent and illogical regulation and More unworkable, inconsistent and illogical regulation and less consideration of the practical aspectsless consideration of the practical aspects
More pressure for local / regional regulation and less More pressure for local / regional regulation and less willingness to adopt and apply international regulationwillingness to adopt and apply international regulation
Maintaining Supremacy of IMO & International Maritime LawMaintaining Supremacy of IMO & International Maritime Law
What are the threats?What are the threats?
15 Years Ago the United States (OPA90)15 Years Ago the United States (OPA90) Today the European UnionToday the European Union Politics post Erika and PrestigePolitics post Erika and Prestige Conflict with International legislation Conflict with International legislation
(UNCLOS, MARPOL)(UNCLOS, MARPOL) CriminalisationCriminalisation EU Commission proposals for EU Common EU Commission proposals for EU Common
Position at IMOPosition at IMO
Maintaining Supremacy of IMO & International Maritime LawMaintaining Supremacy of IMO & International Maritime Law
International Regulation for an International IndustryInternational Regulation for an International Industry
What the industry seeks from the Asian region: What the industry seeks from the Asian region:
Consistent support for IMO and the international Consistent support for IMO and the international approachapproach
Rejection of regional initiativesRejection of regional initiatives If possible, avoidance of “block” voting to If possible, avoidance of “block” voting to
combat EU moves in this directioncombat EU moves in this direction
Criminalisation of Seafarers
CRIMINALISATIONCRIMINALISATION
Traditionally accidents have been regarded as quite distinct from Traditionally accidents have been regarded as quite distinct from deliberate actsdeliberate acts
Attitudes have changed (scapegoat mentality)Attitudes have changed (scapegoat mentality) e.g. Captain Mangouras, The Karachi Eight e.g. Captain Mangouras, The Karachi Eight
EU Directive on Ship-Source Pollution (despite wide industry EU Directive on Ship-Source Pollution (despite wide industry coalition)coalition)
Canadian Bill C-15Canadian Bill C-15
US approach (whistle blowing, enormous fines and rewards)US approach (whistle blowing, enormous fines and rewards)
CriminalisationCriminalisation INDUSTRY supports the investigation and prosecution of illegal INDUSTRY supports the investigation and prosecution of illegal
discharges of oil from ships.discharges of oil from ships.
INDUSTRY strongly objects to criminalising accidental oil pollution INDUSTRY strongly objects to criminalising accidental oil pollution and to treating seafarers as criminalsand to treating seafarers as criminals
Any criminal offence of pollution from a ship must be clearly Any criminal offence of pollution from a ship must be clearly defined and in accordance with international law.defined and in accordance with international law.
Any penalties imposed on someone found guilty of such an offence Any penalties imposed on someone found guilty of such an offence must be proportionate. must be proportionate.
There should also be parity with any penalties imposed for There should also be parity with any penalties imposed for pollution from land based sources.pollution from land based sources.
Any suspects must be treated fairly, impartially and in accordance Any suspects must be treated fairly, impartially and in accordance with international law on human rights.with international law on human rights.
CriminalisationCriminalisation
Additionally Additionally
INDUSTRY expects coastal states to comply with their INDUSTRY expects coastal states to comply with their existing treaty law obligations to provide adequate, existing treaty law obligations to provide adequate, affordable, oil waste reception facilities.affordable, oil waste reception facilities.
In order to safeguard the lives of seafarers and the In order to safeguard the lives of seafarers and the marine environment, INDUSTRY urges coastal states to marine environment, INDUSTRY urges coastal states to ensure proper contingency plans are put in place so ensure proper contingency plans are put in place so that adequate assistance and if necessary a place of that adequate assistance and if necessary a place of refuge can be made available to a ship in distress.refuge can be made available to a ship in distress.
Challenges to Industry Governance Structures:
Flag
Classification Societies
Port State Control
P&I Clubs
The good, the bad and … all The good, the bad and … all legitimatelegitimate
Flag State GuidelinesFlag State Guidelines- industry advice- industry advice
Challenges for Flag:Challenges for Flag:
IMO Flag State Audit (currently voluntary but pressure IMO Flag State Audit (currently voluntary but pressure to make mandatory) to make mandatory)
Port State Control Port State Control - Currently: white, black and grey lists - Currently: white, black and grey lists - EU moving to target non-audited flags with - EU moving to target non-audited flags with
preferential treatment measurespreferential treatment measures
Political, public, union and media pressures – Political, public, union and media pressures – especially on open registersespecially on open registers
Industry currently providing guidance / Industry currently providing guidance / recommendations, and moving to do morerecommendations, and moving to do more
Challenges for Classification Challenges for Classification Societies:Societies:
EU Challenge on Role of Class EU Challenge on Role of Class – – perceived conflict of interest between statutory and perceived conflict of interest between statutory and
classification activitiesclassification activities
Common Structural RulesCommon Structural Rules – – ability to deliver while maintaining IACS harmony ability to deliver while maintaining IACS harmony
Role relative to Goal Based Standards Role relative to Goal Based Standards – – IMO/Flag states versus IACS control of Goal Based StandardsIMO/Flag states versus IACS control of Goal Based Standards
Who sets class agenda – owners, builders, flag states or class Who sets class agenda – owners, builders, flag states or class managers ?managers ?
Example coatings standards (IMO – DE discussion)Example coatings standards (IMO – DE discussion)
Challenges for Port State Control (PSC)Challenges for Port State Control (PSC)
What is needed :What is needed :
Better harmonisation and consistency of standards, training, etc. Better harmonisation and consistency of standards, training, etc. across all PSC regimesacross all PSC regimes
Consistency in inspection and targeting criteria – Consistency in inspection and targeting criteria – based in part on based in part on analysis of PSC records and not arbitrary mechansisms, such as quota analysis of PSC records and not arbitrary mechansisms, such as quota systems systems
Global sharing and mutual recognition of records between MoUs, Global sharing and mutual recognition of records between MoUs, with with data logged in central system such as EQUASISdata logged in central system such as EQUASIS
Uniformity in internal procedures, Uniformity in internal procedures, such as clear grounds for detention, such as clear grounds for detention, independent appeal panels, close-out of deficiencies, etc. independent appeal panels, close-out of deficiencies, etc.
&&
To ensure that the integrity of PSC is maintainedTo ensure that the integrity of PSC is maintained
Challenges for P&I ClubsChallenges for P&I Clubs& Club Boards:& Club Boards:
OECD Report – Role of P&I in respect of substandard OECD Report – Role of P&I in respect of substandard shippingshipping
IOPC Revision ProceduresIOPC Revision Procedures
Pending Compulsory Insurance requirementsPending Compulsory Insurance requirements
Who manages the agenda Who manages the agenda – – Shipowners or Club Managers ?Shipowners or Club Managers ?
PEOPLE ISSUESPEOPLE ISSUES(HUMAN FACTORS):(HUMAN FACTORS):
Heavy recent concentration on Heavy recent concentration on “hardware” issues“hardware” issues
(e.g. accelerated phase-out, CSRs, (e.g. accelerated phase-out, CSRs, goal-based standards etc)goal-based standards etc)
Yet people still “cause” most incidentsYet people still “cause” most incidents
PEOPLE ISSUESPEOPLE ISSUES(HUMAN FACTORS):(HUMAN FACTORS):
Industry has to address :Industry has to address :
Shortages of qualified officers (BIMCO/ISF 2005)Shortages of qualified officers (BIMCO/ISF 2005)
Renewed criticisms of training standards (time Renewed criticisms of training standards (time to to review STCW 95 ?)review STCW 95 ?)
Implications/causes of fatigue (ISPS etc.)Implications/causes of fatigue (ISPS etc.)
Manning levelsManning levels
• Extent of the problem• Focus of attention on Regions - Malacca Straits - Somalia - West Africa• Developments
Piracy/Armed Sea Robbery:Piracy/Armed Sea Robbery:
Security in the Straits: The Security in the Straits: The need to tackle:need to tackle:
A.A. The RealityThe Reality
B.B. The PerceptionThe Perception
The Reality:The Reality:
Attacks have become more violentAttacks have become more violent Attackers have become bolder – large Attackers have become bolder – large
ships attackedships attacked Attacks are motivated by financial gain not Attacks are motivated by financial gain not
for political reasonsfor political reasons The Straits are a crucial route for the The Straits are a crucial route for the
world’s shipping therefor the area is world’s shipping therefor the area is uniquely sensitiveuniquely sensitive
The Reality (cont):The Reality (cont):
MSSIMSSI The Batam StatementThe Batam Statement Tripartite Techical Experts Group on Tripartite Techical Experts Group on
safety of navigationsafety of navigation Tripartite Technical Experts Group on Tripartite Technical Experts Group on
security in the Straitssecurity in the Straits The Jakarta StatementThe Jakarta Statement Increased CooperationIncreased Cooperation
Reality?Reality?
More patrols?More patrols? Better coordination of resources to tackle Better coordination of resources to tackle
the root of the problem, i.e. ashore?the root of the problem, i.e. ashore? Cross boarder patrols – bilateral Cross boarder patrols – bilateral
agreements? Indonesia-Malaysia – up to 5 agreements? Indonesia-Malaysia – up to 5 miles?miles?
””Eyes in the sky” – is this 24/7?Eyes in the sky” – is this 24/7?
The perception:The perception:
Is enough being done?Is enough being done? Lack of clarity on the recent initiatives? Lack of clarity on the recent initiatives?
What is in place and what is proposed?What is in place and what is proposed? That the listing of the region as a ”war That the listing of the region as a ”war
risk” area has brought a reaction from the risk” area has brought a reaction from the littoral stateslittoral states
INTERTANKO’s view:INTERTANKO’s view:
Recent initiatives must be built uponRecent initiatives must be built upon Support the role of the IMO as a facilitator Support the role of the IMO as a facilitator
of open discussionsof open discussions Welcomed the open dialogue in JakartaWelcomed the open dialogue in Jakarta Better accessibility of information on the Better accessibility of information on the
initiatives taken – transparency is crucialinitiatives taken – transparency is crucial Support the political advance in Support the political advance in
internationalising the issueinternationalising the issue
JWC – Listed AreasJWC – Listed Areas
JWC should consult more widelyJWC should consult more widely Review their decision on the basis of the Review their decision on the basis of the
factual situationfactual situation Follow closely all initiatives by the littoral Follow closely all initiatives by the littoral
statesstates
Safety of Navigation in the Safety of Navigation in the StraitsStraits
The Marine Electronic The Marine Electronic Highway ProjectHighway Project
The world expects us toThe world expects us to have have 00 accidents. accidents.
Even though 99.9997% of oil is delivered safelyEven though 99.9997% of oil is delivered safely
It takes only one accident to change the industryIt takes only one accident to change the industry
INTERTANKO’s vision for the tanker industry:
“ A responsible, sustainable and respected industry able to influence its own destiny.”
Designers Shipbuilders Equipment Suppliers
Class
Charterers Operator/Manager
Financiers / Guarantors
Owner
Commitment to Continuous Improvement by all stakeholders in the maritime businesses
Cargo Owners BrokersP&I Hull insurers
Ports & Terminals
Coastal StatesWaterways authorities
Flag states
Bunker suppliers Pilots Tug operators Labour providers
Salvers RepairersPaint Suppliers Agents
Spill Response Ship Breakers
Tanker Event 2006Tanker Event 2006
SingaporeSingapore
29-31 March 200529-31 March 2005
Thank youThank you
www.intertanko.com www.intertanko.com