INTERTANKO / INTERCARGOJoint Technical Seminar

MUMBAI

22 November 2006

INTERTANKO INTERCARGO

INTERTANKO / INTERCARGOJoint Technical Seminar

Global Governance Structuresand

Upholding International Law

Peter M. Swift

Managing Director, INTERTANKO

International Association of Independent Tanker Owners

Represents responsible oil and chemical tanker owners worldwide, promoting their interests and providing members

with technical, operational, legal, documentary and other support services, information and advice.

250 + members representing > 80% of the independent oil tanker fleet and > 85% of the chemical carrier fleet, with strict

membership criteria 300 + associate members in oil and chemical tanker related

businesses

15 Committees - 4 Regional Panels

Representative Offices in Europe, US and Asia

Observer status at IMO, IOPC and UNCTAD

Mission and Vision

MISSION “Provide leadership to the Tanker Industry in

serving the world with the safe, environmentally sound and efficient seaborne transportation of oil,

gas and chemical products.”

VISION FOR THE TANKER INDUSTRY“A responsible, sustainable and respected Tanker Industry, committed to continuous improvement

and constructively influencing its future.”

One of the Association’s primary goals:

Lead the continuous improvement of the Tanker Industry’s performance in striving to achieve the goals of:

Zero fatalitiesZero pollution

Zero detentions

Society and the International Shipping Industry share the same goals

Shipping should be:

• Safe and secure • Environmentally

responsible• Reliable• Efficient (Low cost)

For International Shipping to be effective and efficient

We need:

• GLOBAL GOVERNANCE STRUCTURES FOR A GLOBAL INDUSTRY

(However remembering that all politics are local)

• A BALANCE BETWEEN REGULATION AND SELF-REGULATION

Achieving the Balance between Regulation & Self Regulation

REGULATION

Effective Regulation

SELF-REGULATION

Best Practice

“Effective” Regulation

Regulation, which is:

• Developed at the global level, wherever appropriate (consistent with existing law)

• Fit for purpose (provides solutions)• Properly considered (stakeholders

involved)• Impact(s) fully assessed (economic and

social)• If adopted, implemented uniformly and

promptly

For ”Self-Regulation” to be accepted

• Shipping has to be seen as a “Responsible” industry

and

• To be respected by the public, legislators, regulators and media

Industry works to develop and promote “Self Regulation”

By

• Adopting industry “best practices”

• Producing industry guidelines

• Developing programmes, procedures, etc. - Design, Shipbuilding, Operations, Training, Inspections, Investigations and more…

Industry “best practices”

Examples:• Adopting IMO Pilotage “Recommendations”• Signing-up to Early Warning Information

(Sharing) Systems• Implementing Green Passport / Preparing

Applying Hazardous Material Inventory• Applying VOC control on passage• Implementing anti-fouling regulations ahead of

IMO timetable• Establishing Emergency Response procedures• Developing & rehearsing crisis management

procedures, (including media training) • ……………………

Industry “Guidelines”

Examples:– Flag State Performance– Recycling guidelines– ISGOTT– Newbuilding Awareness guide– Model Ballast Water Management plan– Garbage Management plan– ISO 14001 planning– Oil record book completion, OWS guidance– Mooring, STS, COW, etc. – ………

Industry “programmes and procedures” / Quality Initiatives

Examples:• Ship & Terminal vetting • Management self-assessment programmes• Casualty reporting and analysis• PSC record analysis• Establishment of Inter-Industry Group

(Chemical Tanker accidents):Recommendations for Inert Gas for Cargo Tanks on presently exempted ships,Establishment of Human Element Task Force

• ………..

Other Examples of Industry’s Quality Initiatives / Acting “responsibly”

• Industry-Government Programmes– Marine Electronic Highway– Reception Facilities Forum– Double Hull Panel (EMSA)– ………

• With many similar programmes on the dry side, plus sector specific

- BC Capesize Loading Rates

- Carriage of DRI fines

- Annex V issues

- ………

Other Examples of Industry’s Quality Initiatives / Acting “responsibly”

Acting “Ahead of” regulatory implementation:– Annex VI (Nox & Sox, VOC)– Anti Fouling Systems (TBT Ban)– Fixed Gas detection systems (Ballast tanks)– Cargo tank coatings– IG on smaller chemical tankers– BW management trials– OWS alternatives– Green Passport and HMI standards– ……….

INTERTANKO / INTERCARGOJoint Technical Seminar

Global Governance Structures

Shipping’s Governance Structure

1. Legislation & Regulations

2. With licences to operate provided by:

- Flag- Class (newbuild & in-service)

- Insurer (compulsory certificates)

- Charterers (through vetting)

- PSC (on behalf of coastal states)

Flag State Guidelines- industry advice

Working with Classification Societies

• Regular meetings of Industry and IACS

• Development of Common Structural Rules- Tankers and Bulkers

• Tripartite dialogue: owners, builders and class:– Common structural rules– Coatings and coating performance standards– Goal Based Standards (Tiers IV & V)– Information sharing – Shipboard waste management

Working with Insurers, Charterers and Port State Control

• Regular meetings of Industry and the International Group of P&I Clubs - seeking differentiation based on “quality”

- IOPC Quality WG

• Continuing dialogue with Charterers: – OCIMF-SIRE, CDI and others

• Meetings with PSC MoUs- Seeking uniformity in standards and procedures- member of EQUASIS Editorial, seeking consistency

in data and effective analysis of information

Why “good” PSC is important

PSC RECORDS:

Used by charterers (brokers and agents)

Used by media

Used in assessments by flags, insurers and others

Used as membership criteria by associations

INTERTANKO / INTERCARGOJoint Technical Seminar

Upholding International Law

Challenges to the International Governance of the Shipping Industry

International vs. local, national and regional

• Liability – EU Penal Sanctions vs. International Conventions

• Safety & Environment – EU (Post Erika & Prestige) vs. IMO/Marpol & SOLAS

• Sulphur Levels / Air Emissions – EU, USA vs. IMO

• Security – MTSA vs. ISPS

• Ballast Water Management – US, Australia et al vs. IMO

Maintaining the supremacy of IMO,International and US (Federal) Law

Against the challenges of Local and Regional Legislation

INTERNATIONAL

EU Challenges to UNCLOS

EU Ship Source Pollution Directive

Canada Bill C-15

Ballast Water Legislation

Air Pollution / Fuel Quality regulations

(USA) FEDERAL

Challenges to EPA regs on Ballast Water Discharges

Massachusetts Oil Spill Response legislation

Pending legislation in Rhode Island on LNG

movements

State legislation on Air Emissions

Where does Regional Regulation fit ?

• Addressing purely local issues

• Catalyst for international regulation

• Accelerator for international implementation

INTERTANKO / INTERCARGOJoint Technical Seminar

Upholding International Law

CRIMINALISATION

Criminalisation

A two-fold concern:

Unfair treatment / human rights

and

Counterproductive nature of other measures

Criminalisation

Unfair treatment and violation of human rights

Too many cases of unlawful detentions after shipping accidents

Welcome for the joint IMO/ILO Guidelines for the Fair Treatment of Seafarers

Too many other unjust practices – unjustified fines, denial of shore leave, prohibition of terminal access and more

Criminalisation

Counterproductive consequences not recognised: Destroys “no blame” cultures Discourages openness and frank reporting Curtails surveyors’ reports – detracts from ”good

practice” Deters salvors in circumstances when we need

them most Deflects focus for proper casualty investigation and

denies benefits of same Destroys and damages morale of seafarers and

others Dissuades new recruits and accelerates departure

of experienced staff Drives responsible people and companies from the

businessIs this what the legislators and society are seeking ?

Maintaining the Supremacy of International and US Federal Law

What is being done ? Major industry-wide efforts to remove the threat of

criminal sanctions for accidental discharges, including a Legal Challenge to the European Court of Justice

Industry speaking out against “Unfair treatment” Extensive lobbying in the EU and US Legal Challenge in US with DoJ against the State of

Massachusetts Legal Challenge in US with USCG over Regulation of

Discharges Challenges to use of “Age” as a selection criterion Challenging Torres Straits compulsory pilotage Challenging Mississippi Exclusive Tug Contracts And much more ………………

INTERTANKO / INTERCARGOJoint Technical Seminar

Global Governance Structures

and

Upholding International Law

CONCLUSIONS

Safe & Efficient Shipping

Sound legislation - consistent with customary international law, and

applied uniformly and fairly

Poseidon Challenge- commitment to continuous improvement- commitment to working with all partners

THANK YOUwww.intertanko.com

www.shippingfacts.comwww.themaritimefoundation.com