Shipping flag ban 'will improve industry standards'

The shipping industry is bracing for a "significant impact" on some sectors by the UAE's ban on vessels flying the flags of ten countries.

The market also hopes further details will emerge, since the official announcement on Monday that ratified the end-May notification carried further qualifications, especially those regarding classification certificates issued by the International Association of Classification Societies (IACS).

Others felt bunkering off Fujairah, one of the world's leading bunker ports, would be affected.
Effective early this month, the authorities in Fujairah had separately, through a local Fujairah Notice to Mariners, prohibited non-IACS tankers from entering its port and waters. The restriction also affects ships at anchor.

Shipping companies felt the move would not affect established lines. "The move is commendable, leaving as it does shipping operators employing vessels that are not seaworthy few places to run to," said Tom Darling, surveyor in charge for Lloyds Register. "It will not be too much of a problem tradewise either."

Roy Patterson of freight operator Panalpina said, "With no flags of convenience being allowed, industry standards will improve and upgrade levels of professionalism in the industry."

According to Sumesh Nair of West Star Shipping, the ban will raise the international standing of Dubai's ports. An industry expert however noted that the move might drive some operators out, and vessels seeking drydocking at Dubai and Ajman might go elsewhere.

He also pointed out that among the 10 flags banned, there were some, such as Mauritius and the Maldives, that had closed register flags, while several ships using other FOCs were relatively young vessels and in good condition.

Another expert noted that the move might momentarily check "quayside trade" and cause a hiccup to transshipment cargo going to other countries in the region. But he felt these would be quickly overcome, and industry standards are likely to improve.