Business | Shipping
Channel Sponsor
Protocol regulating sea pollution comes into force Sea Views
- Frank Kennedy. Special to Gulf News
- Published: 00:00 March 27, 2006
A significant milestone for the protection of marine environment was reached on Friday with the entry into force of the 1996 Protocol to the Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter, 1972, following its ratification on February 22 by Mexico, the 26th country to do so.
The 1996 Protocol represents a major change of approach to the question of how to regulate the use of the sea as a depository for waste materials in that in essence, dumping is prohibited, except for materials on an approved list. This contrasts with the 1972 Convention that permitted dumping of wastes at sea, except for those materials on a banned list.
The Protocol was adopted in November 1996 and will supersede the 1972 Convention. In practice, both instruments will be in force in parallel for some time, but the momentum will gradually shift to the Protocol as more and more parties ratify it.
The 1996 Protocol reflects a more modern and comprehensive agreement on protecting the marine environment from dumping activities than the original 1972 Convention and reflects the broader aims to protect the environment in general, emanating from Agenda 21, the global plan of action for sustainable development adopted by the 1992 United Nations Conference on Environment and Development, in Rio de Janeiro, Brazil, also known as the Earth Summit.
The approved list of materials that may be dumped under the restrictions imposed by the 1996 Protocol includes dredged material; sewage sludge; fish waste, or material resulting from industrial fish processing operations; vessels and platforms or other man-made structures at sea; inert, inorganic geological material; organic material of natural origin; bulky items primarily comprising iron, steel, concrete and similar harmless materials, for which the concern is physical impact, and limited to those circumstances where such wastes are generated at locations, such as small islands with isolated communities, having no practicable access to disposal options other than dumping.
Incineration of wastes at sea is specifically prohibited by the 1996 Protocol having been originally permitted under the 1972 Convention. Incineration at sea of industrial waste and sewage sludge was already banned under the 1993 amendments to the 1972 Convention.
International trade remains resilient
The Financial Times has said global trade remains resilient despite dramatic events such as the US recession of 2001 and acts of terrorism.
It said international trade has resumed its usual tendency to outpace economic growth adding, "the global economy has proved to be resilient and supple the world continues to globalise".
Furthermore, there are few signs that rising fuel costs have had any significant effect on trade.
The FT commentary also emphasises that fears were misplaced regarding the impact of the implementation of security measures on the international growth of trade and it points out that the additional security costs for transporting a container from Europe to the United States work out to 15 euros ($18, Dh66.20) which is "a negligible cost" when taking into account that a container load of goods is worth about 60,000 euros.
Regarding China, the report said despite US and European quotas on Chinese textiles, and the imposition of anti-dumping duties on leather shoes from the mainland, such incidents have done little to slow growth in China.
However it did predict a slowdown of Chinese exports relative to economic growth "but the rising strength of domestic consumption should help exports in China's trading partners'.
India Steamship to expand
The Business Standard newspaper has reported that India Steamship is planning a mega-expansion through the acquisition of additional tonnage that will double its existing fleet of three single hull tankers at the cost of $206 million. It is reported to have already signed an MOU with a Greek company to acquire a ship.
India Steamship is part of Chambal Fertilisers and Chemicals and a company of the K.K. Birla group managed in Kolkata by C.S. Nopany, according to whom the majority of the proposed investment of over Rs9,000 million (Dh6.68 billion) would be financed through borrowings.
Nopany said the company had signed a contract for delivery of two tankers with Ulsan-based Hyundai Heavy Industries of South Korea. These two ships would be delivered in the later half of 2008 and each would have a capacity of 105,000 tonne. The existing fleet has two ships of 96,000-tonne capacity and the third of 60,000 tonnes.
Liners 'in shock' over plummeting rates
Fairplay has reported that panic-driven behaviour by carriers has exacerbated the container sector's rate plummet, with the deepening down cycle to last 2-3 years or longer, Marsoft partner Costas Bardjis told the Connecticut Maritime Association conference last week.
"It's fair to say that the liner industry today is literally in a state of shock," he said, expressing surprise that carriers were not better prepared for a fall that was clearly foreseeable from the order book.
Rates have been driven sharply downward by an influx of larger boxships entering the Asia-Europe trade, with panicking competitors seeking to ensure employment by "undercutting each other", he explained.
Bardjis offered a grim forecast, given the sector's massive order book, noting that scrapping will have a negligible impact.
Meanwhile, last year's merger and acquisition activity in the liner industry will come to a temporary halt, believes Bardjis, citing both the lack of acceptable acquisition candidates and the downward trend that would require buyers to pay a premium versus future returns for any fleet purchases in the near future.
Container line M&A activity will resume as the market bottoms, he said.
The writer is a Dubai-based marine consultant.
Share this article
More from Shipping
More from Business
Popular in Business
-
Budget travel
Airlines in the region
Take a pictorial look at some of the budget airlines in GCC
Business Editor's choice
-
Media baron Murdoch cries foul
Murdoch's suggestion of content theft infuriates digital evangelists
-
Jobs vital to global recovery
Higher unemployment reduces purchasing power and revenues
-
Abulhoul Aviation to begin operations
New charter company will use Cessna 206 Station Air to transport tourists
