Sea Views: OECD calls for crackdown on substandard tonnage

The Maritime Transport Committee (MTC) of the Organisation for Economic Cooperation and Development (OECD) has urged action is needed on substandard shipping that might include an international licensing system for classification societies.

The panel has issued a radical policy statement that urges parties involved in the maritime sector "to act effectively and conscientiously in their approach to substandard shipping, so that the ability of unscrupulous operators to offer substandard ships, and the opportunity for unscrupulous or gullible charterers and shippers to accept them, is severely limited or removed completely."

In its statement, the Committee suggests that the International Maritime Organisation (IMO) has greater involvement and effectiveness in flag state matters by supporting the concept of extending the IMO charter to give the UN agency the ability to "actively review" flag state performance and to give it the means of enforcing mandatory requirements.

The OECD Committee also urges tougher sanctions be enforced by Port State Control (PSC) authorities saying, "Without discriminating in form or fact against vessels of any state, port states should apply sanctions (including detentions) and penalties that are adequate to deter operators and users of substandard ships."

Regarding the standards applied by classification societies, the committee said that if incident and detention statistics indicate that some societies are unable to ensure appropriately high standards, the Marine Transport Committee members would consider establishing, maintaining and publicising a list of societies not applying adequate standards.

"MTC member countries," says the statement, "will also consider the possibility of promoting an international licensing system (for class societies) perhaps operated by the IMO."

Another significant recommendation concerns the blocking of insurance cover for substandard tonnage.

MTC Members will undertake a study to establish whether, without prejudice to potential victims, it is feasible to remove the cover available to substandard shipping, while still maintaining the necessary risk spreading coverage for the rest of the industry.

Furthermore, MTC members will "actively promote" the introduction of compulsory insurance by the IMO for all vessels, including provisions preventing insurers paying fines for shipowners when prosecuted and found guilty of safety or pollution related offences.

The statement concluded by strongly endorsing all efforts to reward responsible shipowners through such means as reduced classification fees and lower port charges, noting that good as well as bad publicity could be an important tool in combating substandard shipping.

These radical proposals serve to underline the concern within the industry that the IMO is a slow-acting regulatory, intergovernmental consultative body, without 'clout' to be able to bring maverick flag states, class societies and rogue operators into line.

There is also a situation where class societies outside the remit of the International Association of Classification Societies (IACS) are stigmatised when a significant proportion are properly operated to acceptable standards.

An 'approval' of all class societies by the IMO would help sort out the good from the bad, but whether such moves would gain support from IACS remains to be seen.

This statement, if followed to its logical conclusion, enhances the role of the IMO to become a powerful international maritime policing agency. How practical that would be at this time is certainly open to conjecture, particularly in areas such as the Middle East where compliance of all sorts lags behind many other regions.

Deregulation 'will not harm' Indian shipping: According to P.K. Srivastava, president of the Indian Shipowners' Association, the recent deregulation of the Indian crude oil market would have no significant impact on the local shipping market for some years to come.

Srivastava was speaking at the release of a survey on the competitiveness of the Indian shipping industry and he said that due to the huge imbalance between supply and demand, he believed that Indian shipping lines would still get all the business they would be able to handle.

With Indian law requiring Indian shipping companies to receive preference in the transportation of all oil imported by India and with India's annual crude oil import demand at around 55-60 million tonnes, the internal situation would not change significantly with the Indian tanker fleet capacity at only 20 million tonnes per year.

This notwithstanding, the survey report did express concern that, internationally, the Indian shipping industry was becoming uncompetitive because of taxation.

It said that with around 95 per cent by value being transported by sea, the presence of a strong national fleet would ensure a competitive edge for Indian exports in global markets, but that tax changes were needed to 'provide a level playing field' for Indian shipping.

EC proposes new measures on passenger safety: The European Commission has proposed a new package of measures aimed at enhancing passenger safety on ships to complement rules adopted in the late 1990's following the Estonia accident in the Baltic Sea (the Stockholm Agreement).

Announced as a new White Paper on Transport, the proposals are split in three parts: Increased stability requirements - aimed at improving the capacity of a passenger ship to remain afloat after a serious incident.

The Commission has proposed harmonised stability requirements for all roll-on-roll-off (ro-ro) passenger vessels operating on international voyages to or from European Union ports.

The new proposed directive therefore aims to introduce into European legislation the "Stockholm Agreement rules." These are stricter than international rules, but currently only apply in certain North European States.

Strengthened and simplified safety rules for passenger ships - The Commission has proposed to amend the existing Directive 98/19 on safety rules for passenger ships to include new safety requirements for high speed ships and for passengers with reduced mobility.

It also proposes the introduction of specific stability requirements for ro-ro passenger ships operating on domestic voyages in Member States, equivalent to those proposed for ships operating on international voyages.

For existing ships, the proposal foresees either upgrading vessels to meet the new criteria or phasing them out when they reach the age of 30.

Better protection of passengers in case of accident. The Commission has called for compulsory insurance for carriers and strict liability up to Euros 250,000 per passenger.

If the carrier is at fault, unlimited liability should apply. The Commission will make a legal proposal later this year, once ongoing international discussions on the subject are completed.

Class NK upgrades website: Japanese society Class NK has upgraded its website as part of a new IT-focussed customer service strategy. One significant feature, that is available free of charge, is for clients to be able t