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Review
2011
Introduction
4 AS I WRITE, ABOUT 600 SEAFARERS are currently engaged on behalf of More optimistically, one of the
are being held hostage by pirates the global industry. However, life important issues over which the
in Somalia, thousands more having must somehow go on, and ships industry can have some influence is
already endured months of captivity must continue their vital business of our collective effort to reduce carbon
in the most appalling conditions. transporting world trade. emissions. ICS is working hard to
help ensure that shipping’s CO2
What is almost as shocking is that In last year’s Annual Review, I emissions are regulated on a global
the international community seems remarked that it was necessary basis by the International Maritime
unable to act, in effect ceding control for any prudent ship operator Organization (IMO). This will be vital
of the northwest Indian Ocean to to continue to anticipate the if we are to avoid serious market
armed criminal gangs. Politicians unexpected. A year later we are distortions, and it will also be the
and policy makers seem completely trying to digest the enormous best means of delivering genuine
ignorant about the large proportion implications of the devastating and meaningful emission reductions.
of world trade that must pass earthquake and tsunami in Japan and These can only be achieved if the new
through the pirate danger area. Even their tragic consequences. We are rules are applied to the entire world
more disturbing, many politicians also in the midst of dramatic political fleet, and not just ships registered
seem oblivious to the immense upheavals in the Middle East, and with developed countries. It is
human cost. what the future holds in relation to therefore of the utmost importance
these seems far from clear. Moreover, that governments agree to a package
If we consider the families of those while many had assumed that the of new technical measures to reduce
that have so far been held hostage, worst was over following the 2008 carbon emissions from ships, at a
tens of thousands of people have banking crisis, the health of the critical meeting of the IMO Marine
already been affected. But when global economy is still very fragile. Environment Protection Committee
taking account of the families of this July.
all those seafarers who, in fear for Shipping, of course, is the servant
their lives, courageously keep world of world trade and is very sensitive 2011 will be the last of an impressive
trade moving, the numbers directly to developments beyond its control. eight years in office for the current
touched by the crisis are enormous. However, our external challenges IMO Secretary-General, Efthimios
Sadly, one can only conclude that are compounded by the truly Mitropoulos. As well as being a
the victims of piracy are the ‘wrong’ massive quantity of new tonnage highly knowledgeable and diligent
nationality. If 3,000 Europeans that is due to be delivered in the regulator, he has always displayed
or Americans had been kidnapped next few years. Many of these new great empathy for the shipping
during the last three years, it can ships are being ordered from China, industry and the seafarers whom it
safely be assumed that the response which is aggressively expanding employs. His achievements in office
of the world’s major powers would its shipbuilding capacity. We must are legion. One in particular that
have been very different. be mindful of not repeating the must not go unremarked was his
mistakes of 30 years ago when steering through of the establishment
As this Annual Review explains, while speculative over ordering led to far of the IMO Member State Audit
no short term solutions appear to too many ships chasing too few Scheme. As a result of his efforts
be in sight, piracy is by far the most cargoes, causing rates to plunge to to negotiate around sensitive
important issue in which ICS and ISF unsustainable levels. sovereignty issues, the performance
ICS/ISF Office Bearers 2010/11
ICS Vice Chairmen ISF Vice Presidents
of maritime administrations with 5
respect to their enforcement of IMO
rules will now be subject to far more
thorough scrutiny. This will greatly
help towards our ultimate goal of
zero accidents and zero pollution – a
fitting legacy indeed. I look forward
to working with Mr Mitropoulos’
successor, who will be elected by
governments in June.
At their Annual Meetings in Hamburg, Mr Frank Mr Trygve Seglem Captain Dirk Fry Mr Carlos Salinas
in May 2011, ICS and ISF will finalise Leonhardt Norway Cyprus Philippines
their important decision to integrate Germany
the two associations so that they
will operate under a single Board
of Directors. The new organisation
will continue under the name of the
Secretariat
Mr Peter Hinchliffe Secretary General
International Chamber of Shipping,
and will also maintain the separate Mr Simon Bennett Mr John Murray
identity of the International Shipping Director External Relations Director Marine
Federation. However, this does Ms Linda Howlett Miss Emily Rowley
mean that this is the last Annual Director Legal Affairs* Adviser
Review when I will have occasion to Mr Alistair Hull Mrs Natalie Shaw
thank the ISF Vice Presidents and ISF Technical Manager Director Employment Affairs
Council for their valuable support Ms Kiran Khosla Mr John Stawpert
during the previous year, in addition Director Legal Affairs* Senior Adviser
to my ICS Vice Chairmen and my Mr James Langley Mr David Tongue
colleagues on the ICS Executive Senior Adviser Director Regulatory Affairs
Committee.
Mrs Susan Gray Mrs Shantel Ryan
Director Finance and Publications Manager
Notwithstanding the challenges of Administration
piracy, and political and economic
uncertainty, I Iook forward to Mrs Kathryn Hall Mrs Anita Pow
continuing to serve our great industry Personal Assistant to Administrator
for another year as ICS Chairman. Secretary General Shipping Policy
Mrs Catherine Howlett Miss Julie Rogers
Spyros M Polemis Administrator Administrator
Publications Marine Department
*position held jointly
KEY ISSUES IN 2011
Piracy Crisis
in the Indian Ocean
SINCE THE BEGINNING OF 2011, the of ransom payments has also risen, in
piracy crisis in Somalia has continued one case reportedly approaching US$
to spiral out of control. At the time 9.5 million. The pirates are seemingly
6 of writing, about 30 ships and around better equipped and are increasingly
600 seafarers are being held hostage using captured vessels as ‘motherships’.
for ransom in Somalia, with attacks It is also feared that because of the
taking place on a more or less daily very high financial stakes, serious
basis throughout the larger part of the violence against hostages is far more
northern Indian Ocean, sometimes as likely, as disturbingly evinced in early
far out as the coast of India and south 2011 by the murder of captives at sea,
into the Mozambique Channel. apparently in response to attempts at
military intervention.
While the number of attacks has
increased dramatically since the Frustratingly, governments in those
incidence of piracy in the region nations with the largest military navies
started to escalate in 2008, the level in the region show little willingness to
increase resources to the extent that
would be necessary to have a decisive
impact on the problem. In short, they
have ceded control to the extent that
few ships transiting the Indian Ocean
are now safe from attack. At a time
when both financial and military
resources are extremely stretched,
Western governments, at least,
appear to have concluded that this
unacceptable situation can somehow
be tolerated. Moreover, the dramatic
recent political developments in
the Middle East, including the
decision of the UN Security Council
to support military intervention in
Libya, have further diverted the
attention of policy makers from
the urgent need to address the
piracy crisis. This seemingly rather
complacent assessment has probably
been supported by the fact that
relatively few nationals from Western
nations have so far been taken
hostage, or been amongst those 30
crew members so far understood to
have lost their lives due to illness in
captivity. Counter piracy efforts have
also been discredited by the lack of
appropriate domestic legislation in
many nations, including any offence
of ‘intent to commit piracy’, which
has led to a continuation of the
absurd situation that pirates who are
captured by navies are often released
back to Somalia.
The degree of co-operation between board ships and to co-ordinate understandably share this frustration,
military navies in the region is certainly their activity with them. Following and have suggested that they might
unprecedented in modern times, the acknowledgment by ICS of the even propose a boycott of the danger
with EU and NATO forces working use of armed guards, IMO is now area - or that governments in major
closely with independent navies from considering the development of such labour supply countries, such as the
countries including China, Russia, guidance, perhaps in parallel to the Philippines, might be encouraged to
India, South Korea and Japan, among widely disseminated Best Management do the same.
others. To be fair to the navies, to a Practices to prevent piracy, developed
large extent they have been a victim by industry associations including ICS, Following recent meetings amongst
of their own success in preventing in co-operation with the military (the international shipping organisations,
attacks against ships in the Gulf latest version - BMP 3 - was published including seafarers’ unions represented
of Aden through the efficient and in 2010). However, ICS has been keen by ITF, it has been agreed that the
effective use of an internationally to stress that armed guards should wider industry should develop a 7
recognised transit corridor. The pirates not be seen as a substitute for military new strategy to increase the political
have responded by expanding their protection by governments, and that will to combat piracy. The ‘Save
attacks throughout a large part of the same logic applies to proposals by Our Seafarers’ campaign has so far
the Indian Ocean, an enormous sea insurance interests for some kind of included the placing of advertisements
area of about two and half million private convoy escort programme. in major international journals and
square miles, which the navies claim using every opportunity to keep the
can only be policed effectively with an It must be emphasised that strict issue alive, via national shipowners’
additional 85 warships equipped with adherence to the Best Management associations, in mainstream national
helicopters. At any given time there Practices remains the single most media. These efforts build on the
are currently around 30 warships in effective means of passive defence. inter-industry petition against piracy,
the region on counter-piracy duties, ICS continues to urge all companies that impressively raised almost a
but only a proportion of these are and ships to comply with the guidance million e-signatures from amongst the
actually available to protect merchant in BMP 3, with particular emphasis on global shipping industry, and which
ships on any given day. As a result, registration with the military prior to the ICS Chairman helped to present to
when attacked by pirates many ships every passage. the IMO Secretary-General on World
may be hundreds of miles away from Maritime Day in September 2010.
the nearest military vessel. At the operational level, ICS continues
to liaise with the military, including the The international community depends
One important development in 2011 commanders of EUNAVFOR and NATO on ships to transport trade and
is the increasing use of private armed navies, about the best use of resources keep the world economy moving,
security guards by shipping companies, and any need for further refinement and the eradication of piracy is the
many having concluded that arming of the industry Best Management responsibility of governments, as
ships is a necessary alternative to Practices. ICS also continues to stipulated by the UN Law of the Sea.
avoiding the Indian Ocean completely. participate in the regular meetings of However, in the face of their seeming
The consensus view amongst most ICS the UN Contact Group on piracy, held impotence, the shipping industry will
national associations remains that, in in New York and London, as well as be forced look at all possible options,
normal circumstances, private armed relevant meetings at IMO which has including alternative routes, which
guards are not recommended, and made orchestrating a response to could have a very dramatic effect on
are a clear second best to military piracy its ‘theme’ for 2011. This was transport costs and delivery times.
personnel on board. However, ICS has launched at a special ceremony in
had to acknowledge that the decision London, in February, attended by the Piracy is already estimated to cost the
to engage armed guards, whether United Nations Secretary General, Mr global economy US$12 billion a year.
military or private, is a decision to be Ban Ki-moon. If increasing numbers of ships decide
made by the ship operator after due to divert around the Cape of Good
consideration of all of the risks, and This activity notwithstanding, it Hope, this will almost certainly have a
subject to the approval of the vessel’s remains a concern that little real major impact on inventories and costs
flag state and insurers. progress is being made towards throughout the whole supply chain.
developing any radical new strategy It could also greatly damage the
In view of the current crisis, ship that will deliver immediate results. economies of Africa and the Middle
operators must be able to retain all While everyone recognises that the East at this very politically delicate
possible options available to deter long term solution will have to be time. But the principal concern of ship
attacks and defend their crews against found within Somalia itself, supported operators is humanitarian. It is simply
piracy. But there is clearly a need by practical measures such as the unacceptable that seafarers have been
for guidance to be developed for establishment of a local coast guard, killed, while hundreds more are being
companies that elect to deploy armed the industry seems to be faced held captive in appalling conditions, in
guards, and navies have expressed with the utter frustration of an ever fear for their lives.
the wish to be free to communicate increasing number of attacks for the
with private guards employed on foreseeable future. Seafarers’ unions
KEY ISSUES IN 2011
Reducing
CO2 Emissions
8 TACKLING CLIMATE CHANGE is the with the nations of their choice. In Responsibility, nations such as China,
challenge of our age, and the complex summary, meaningful global emission India and Saudi Arabia continue to
debate about how best to reduce reductions by maritime transport will be lead opposition to mandatory IMO CO2
shipping’s emissions continues. ICS far more likely to be achieved if adopted measures being applied uniformly to
therefore remains closely involved in by governments at IMO, so that they can shipping. ICS remains confident that
the discussions on CO2 at IMO, as well be applied to the entire world fleet. IMO will indeed deliver a package of
as the parallel discussions at UNFCCC, technical measures at the MEPC meeting
including the latest United Nations ICS continues to lead industry in July. In reality, however, this cannot
Conference on Climate Change held in representation at meetings of the be taken for granted, especially if some
Cancun, Mexico, in December 2010 IMO Marine Environment Protection nations actively encourage opposition.
(see box). Committee (MEPC) which, in October
2010, agreed a draft package of Agreement at IMO in July 2011 will
Through a combination of technical technical and operational measures be most important to ensure that IMO
and operational measures delivering to reduce shipping’s CO2 emissions. retains control of the maritime CO2 issue,
improved fuel efficiency, shipping can These include the Energy Efficiency which otherwise could still be dealt
probably reduce its CO2 emissions per Design Index (EEDI) for tankers, bulk with in detail by UNFCCC as part of
tonne-kilometre by as much as 20% carriers and containerships, and the any replacement to the Kyoto Protocol.
by 2020. However, delivering absolute use by companies of bespoke Ship UNFCCC hopes to make progress on a
emission reductions for the sector as Energy Efficiency Management Plans new agreement at the next major UN
whole will be much more difficult if the (SEEMP). The latter will allow shipping Conference, in Durban in December
world economy, and thus the demand companies to monitor and improve 2011, with the attendant risk that, in
for shipping services, continues to their performance with regard to the accordance with UNFCCC principles,
expand. various factors that may contribute ships from ‘Annex I’ nations (i.e. most,
to the reduction of CO2 emissions but not all developed countries) could
Shipping is a major industry and, (such as improved voyage planning, be treated differently to the majority of
with shipping’s emissions reportedly speed management, weather routeing, ships that are registered with developing
equivalent to the economy of Germany, optimising hull efficiency and engine countries. Adoption of a package by
the industry fully recognises the need to power, and the use of different fuel IMO will also be necessary to discourage
play its part in reducing them. However, types). Indeed, to promote use of the the EU (and other nations) from pressing
while the practical challenge is huge, the SEEMP, which was originally developed ahead with regional measures affecting
biggest immediate obstacle is political by ICS, reference to it has already been shipping, the EU having set IMO a
and concerns the principle of ‘Common included in the latest edition of the deadline to deliver a global agreement
but Differentiated Responsibility’. This is widely used ICS/ISF Guidelines on the on CO2 before the end of 2011.
the approach, adopted by governments Application of the IMO International
at the high level UNFCCC negotiations, Safety Management (ISM) Code. While less advanced than the discussions
whereby developing nations are about technical measures, IMO is also
meant to be subject to less onerous This IMO package of technical and still committed to developing a Market
commitments for CO2 reductions than operational measures will be considered Based Measure (MBM) that can be
richer countries. But the delivery of for formal adoption by governments at applied to shipping. ICS has participated
significant emissions reductions by the IMO MEPC meeting in July 2011, in an IMO Expert Group which in 2010
shipping will require that any measures as amendments to MARPOL Annex VI produced a report on the pros and
adopted are applied on a uniform and which governs atmospheric pollution. cons of the various MBMs that have
global basis, in order to avoid ‘carbon Using the IMO ‘tacit amendment’ so far been proposed by governments,
leakage’ (as well as serious market procedure these amendments could including emission trading schemes, fuel
distortions). Only about 35% of the then enter into force relatively quickly, levies and measures linked to the use of
world fleet is registered with developed possibly 18 months after their adoption. the Energy Efficiency Design Index.
Kyoto Protocol ‘Annex I’ nations, and
most shipping companies have the However, consistent with their support Originally, the main argument from
freedom to decide to register their ships for Common but Differentiated governments in support of MBMs
published its report about how money
UNFCCC Climate Change Conference in Cancun for a ‘Green Fund’ might be raised.
ICS sought to influence the treatment
ICS attended the UN Climate Change Conference (COP 16) in Mexico in
of shipping in the report through a
December 2010, having the honour of representing the shipping industry at
detailed submission to the Group.
a special event at the start of the Conference for delegates, organised jointly
by IMO and the International Civil Aviation Organization (ICAO). ICS has welcomed those parts of the
UN report which - as ICS had sought
Disappointingly, though not surprisingly, the UN Conference was unable
- acknowledged that the principle of
to provide IMO with a stronger mandate about how it should reconcile
CBDR must be reconciled with the
the UNFCCC principle of CBDR with the need for global shipping rules. In
need for any Market Based Measures
fairness, however, this was largely due to the determination of the Mexican
to apply equally to all ships globally,
hosts to avoid controversial issues, the objective being to maintain the
and that the best forum for achieving
dialogue so that talks can continue in South Africa in December 2011,
this would be IMO. However, the UN 9
before the expiry of the current Kyoto Protocol in 2012.
report does seem to imply that the
However, throughout the discussions, and notwithstanding the positions price for IMO retaining responsibility
of nations like China and India on the importance of CBDR being taken for developing an MBM for shipping
into account by IMO, there appeared to be a general recognition amongst would be that any funds raised would
governments that IMO is the appropriate forum to develop measures for have to be contributed to the Green
shipping. Fund. While it is difficult to know
how the link between the Green
Fund and any IMO MBM might be
was that they would somehow within the European Union and the established, it will be particularly
‘incentivize’ shipping companies to United States (see section of this important to avoid ‘double taxation’
reduce their emissions. Increasingly, review on regional developments). of shipping by UNFCCC and IMO - a
however, MBMs are becoming In an attempt to explain the issues point which has been taken up by the
viewed by some governments as to policy makers and to the public at IMO Secretary-General.
a means by which money can be large, ICS has established a website - Although parts of the UN report
raised from shipping in support of www.shippingandco2.org on climate change financing lack
UNFCCC discussions about a ‘Green - which now includes a short film, consistency, it appears to suggest
Fund’ to help developing nations, in also available as a DVD. that international shipping might be
return for their support for a new expected to contribute about
global agreement on climate change. However, the immediate challenge US$ 7 billion per year to a Green
for ICS and all of its member Fund (curiously about twice the sum
ICS’s position has been to comment national shipowners’ associations is from international aviation). To put
as an ‘honest broker’ on the various to persuade as many governments as $US 7 billion per year in context, this
MBMs proposed at IMO, not least possible to support the adoption of actually equates to about $25 per
with regard to the extent that they amendments to MARPOL Annex VI tonne of fuel (assuming mid-range
might deliver genuine environmental concerning technical and operational IMO estimates of total consumption
improvements. To date this neutral measures, which will bring about by shipping of about 300 million
position has probably served the meaningful CO2 emission reductions tonnes a year). However, other
industry well, but in the year ahead by ships on a global basis. sections of the UN report suggest, for
ICS anticipates increasing pressure reasons not entirely clear, that only
from governments to ‘step down UNFCCC Green Fund
a proportion of the money collected
from the fence’ and express a Perhaps one of the more important would go to the Green Fund, which
clear preference for one form general developments at the UN implies that shipping might actually
of MBM over another. However, Conference in Cancun was that be expected to pay a much larger
the high cost of fuel means that the concept of a ‘Green Fund’ was figure.
ship operators already have every endorsed by UNFCCC (having first
incentive to reduce consumption, The IMO Secretary-General has
been proposed by the developed
and many in the industry simply helpfully argued that shipping
nations at the Copenhagen
view proposed MBMs as a tax being should pay no more than $2.7
Conference in 2009). The intention
promoted for political reasons, and billion per year, on the basis that
is to mobilize funds of US$ 100
believe that the adoption of IMO this would be commensurate with
billion per annum by 2020 to help
rules on technical and operational shipping’s reported share of total
developing countries confront climate
issues should be given the higher global emissions (2.7%). However, it
change (in exchange for their support
priority by far. remains to be seen whether UNFCCC
for a new UNFCCC agreement).
will prove more concerned with the
The issues are very complicated, In November 2010, in advance of maximum that the shipping industry
since the discussions at IMO and the Cancun Conference, the United might be forced to pay as opposed to
UNFCCC are also linked to debates Nations High Level Advisory Group how much it might fairly be expected
about the treatment of shipping on Climate Change Financing (AGF) to contribute.
KEY ISSUES IN 2011
The
‘Manila Amendments’
to the STCW Convention
10 ISF CONTINUES to lead the also introduce major changes to IMO implemented, delivered and assessed
representation of maritime employers regulations concerning seafarers’ or when the new security training
at IMO. In June 2010, in Manila, this minimum rest hours, which are requirements enter into force.
included representation of shipowners intended to prevent fatigue.
at an IMO Diplomatic Conference The overriding objective of ISF, and
which adopted a wide ranging set of The 2010 Manila amendments will its member national shipowners’
amendments to the IMO Convention enter into force in January 2012 when associations, is that the standards
on Standards of Training, Certification companies will be required to comply required by the STCW Convention,
and Watchkeeping for Seafarers with the new minimum rest hour as amended in 2010, are put into
(STCW). This was the culmination of a provisions for seafarers. Some effect as soon as possible, and
comprehensive review by governments governments, on a national basis, that the highest standards of
lasting several years, to which ISF (and may also begin to apply new STCW seafarer competence will continue
ICS) provided significant input. requirements, such as enhanced to be maintained worldwide. In
5 yearly refresher training, or the March 2011, ISF published a new
The competence of seafarers is a mandatory use of training record edition of its Guidelines on the
most critical factor in the safe and books for new rating trainees. IMO STCW Convention to advise
efficient operation of ships, and has From January 2013, new seafarers shipping companies and shipboard
a direct impact on the safety of life at commencing training will be required personnel of their fundamental
sea and the protection of the marine to do so in accordance with the new obligations as required by the ‘Manila
environment. The STCW Convention training and competence standards. amendments’. As well as providing
constitutes a comprehensive set of However, until 2017 governments advice on compliance, the Guidelines
regulations intended to maintain the may continue to renew and revalidate give background information on
highest standards of competence existing certificates in accordance with the philosophy underlying the
globally. In particular, the STCW current STCW provisions which applied ‘competence-based’ approach to
Convention places important immediately prior to 1 January 2012. training which the STCW Convention
responsibilities on maritime employers, seeks to promote. For the rest of
obligations with which they must fully Although not a direct responsibility 2011, ISF has an ambitious programme
comply. of companies, the industry will wish of revising its widely used on board
to ensure that as many governments training record books to take account
Numerous amendments were adopted as possible comply with the revised of the Manila amendments, starting
to take account of recent technical requirements to report to IMO the with training books for the new grade
developments requiring new shipboard actions that have been taken to of Able Seafarer (deck and engine) and
skills, such as the use of Electronic implement the new STCW standards. followed by training record books for
Chart Display and Information This will be necessary, by July 2013, if deck and engine officer trainees.
Systems (ECDIS) or the need to give governments wish to maintain a place
more emphasis to environmental on the IMO ‘white list’ of nations Employers should now generally have
management. But the changes that have demonstrated continuing far greater confidence in the validity of
also cover such matters as new adherence to STCW standards, so as seafarers’ certificates, regardless of the
training requirements for leadership to avoid port state control difficulties country of issue. This is not to say that
and teamwork, enhanced refresher for their ships, or flag state recognition questions about the quality of training
training for qualified seafarers, and problems for seafarers working on in many training institutes have been
the introduction of standards of foreign ships to whom they have eradicated completely. However, there
competence for the new grade of issued STCW certificates. is now a clearer sense that all seafarers
Able Seafarer in both the deck and working internationally are part of the
engine departments. There are also ISF also anticipates there may be a same global profession, in which the
new competence tables and training need to clarify the interpretation of paramount importance of safety of
requirements for personnel on oil how some of the new standards are to life at sea and the protection of the
and chemical tankers and gas carriers. be applied, for example with regard to marine environment is far more widely
Importantly, the 2010 amendments how new refresher training should be recognised.
11
12
The Year
in Review
IMO Maritime Safety in the closed position, so that in 13
Developments the event of a failure of the control
release or other components, the
The following are just a few examples hook mechanism would remain in the
of some of the many critical safety closed position until positive action
issues in which ICS is currently is taken on the water to cause it to
involved, through participation in the open. Pleasingly, in direct response to
detailed technical work of IMO and concern expressed by ICS and others,
its numerous committees, and the the IMO Maritime Safety Committee,
development and updating of industry in December 2010, concluded that
best practices. draft IMO Guidelines on this issue
were not yet fit for purpose and that
Lifeboat Safety subject to further discussion final
adoption should be deferred until the
It is an undisputed fact that in recent next MSC meeting in May 2011.
years many seafarers have been
killed or seriously injured during ISM Code
lifeboat drills. There are thought to
be in excess of 70 different release It is probably no coincidence
hook/mechanisms, many being that the implementation and
of poor and excessively complex enforcement of the IMO International
design, constructed of materials Safety Management (ISM) Code
unsuited for work at sea and having has coincided with a dramatic
unrealistic maintenance requirements. improvement in the safety record and
ICS has therefore been very active environmental performance of the
in efforts to improve lifeboat shipping industry (see graphs overleaf),
safety, co-ordinating the work of a which is all the more impressive given
dedicated Industry Lifeboat Group the subsequent growth in the size
comprising a wide range of industry of the world fleet since its adoption.
organisations. The Group has been However, the essential purpose
successful in challenging the belief of the ISM Code is to encourage
that poor maintenance is the primary a commitment to continuous
cause of recent accidents and has improvement and the eradication of
persuaded IMO to develop proposals behavioural complacency.
to specify criteria for safe release
hook mechanisms, and to amend the In July 2010, the latest amendments
International Life-Saving Appliance to the ISM Code entered into force.
(LSA) Code accordingly. Anticipating these changes, and
in order to take account of other
In response to industry concerns, experience gained since the ISM
IMO organised a special meeting on Code first become mandatory, ICS
lifeboat safety which met in October and ISF published a new edition of
2010, and the Industry Life Boat Group their definitive Guidelines on the
commissioned a detailed report that Application of the ISM Code.
identified deficiencies with draft IMO
Guidelines and proposed various The first edition of the ICS/ISF
amendments. For example, ICS and Guidelines, published in the 1990s,
the industry identified the need for played its part in the successful
hooks to be assessed as being stable delivery of a more systematic approach
14 to safety management and pollution
prevention, which is now applied
Total Losses 1994-2010 by number of vessels (over 500 GT)
throughout the industry. The 2010
Source: IUMI
edition contains expanded advice
200 on risk management and on the
operation of a genuine ‘safety culture’,
in order that companies can fulfil the
spirit as well as the letter of the ISM
175 Code’s requirements.
Tanker Safety
75
ICS remains engaged in continuing
discussions on the extension of the
practice of ‘inerting’ cargo tank
50 atmospheres. ICS fully supports
‘94 ‘95 ‘96 ‘97 ’98 ‘99 ‘00 ‘01 ‘02 ‘03 ’04 ’05 ‘06 ‘07 ‘08 ‘09 ‘10 proposals to amend SOLAS to provide
for the application of inert gas (IG) to
new oil tankers of less than 20,000
Average number of major oil spills per year (over 700 tonnes) dwt and to new chemical tankers.
Source: ITOPF
It should be noted, however, that
30 IMO has decided that the possible
extension of new measures to
existing oil tankers of less than
25 20,000 dwt and to existing chemical
tankers will only be considered in
20 light of experience gained following
introduction of IG on new ships. In
conjunction with the International
15 Parcel Tankers’ Association (IPTA), ICS
has highlighted the environmental
impact of operating IG equipment,
10 and has indicated that a carriage
requirement for sub 5,000 dwt
5 chemical tankers could be problematic.
Manpower Supply
As the industry emerges from the
economic downturn, ISF has been
keen to emphasise the importance
of shipping companies continuing to
train sufficient numbers of new ships’
officers for the future. At the end of
2010, in co-operation with BIMCO, ISF
published the results of the latest and
most comprehensive study to date of
the worldwide supply and demand for
Supply Demand Gap for Officers seafarers, which has been conducted
as a service to the industry, at five year
Demand and Supply are shown as Indices: Supply in 2010 = 100 intervals, since 1990.
-2% The worldwide supply of seafarers in
Demand +2%
‘Cold’ +120 2010 was estimated to be 624,000
-2%
Scenario officers and 747,000 ratings and
Supply
100 reflects significant increases in seafarer
supply in some countries, notably in
0 China, India and the Philippines, as
well as in several European nations.
-1%
Demand
-5% While the evidence suggests that
Benchmark +120 Supply the supply and demand for ratings
-2% are more or less balanced, there is
100 still a modest shortage of officers
overall (about 2%). This is particularly
0 felt for specialist ship types such
Demand -9% as tankers and offshore support
-11% vessels. Encouragingly, however,
notwithstanding the challenging
‘Hot’ +120 Supply trading conditions, levels of training
Scenario -2% of new entrants seem to have been
100 maintained or increased in many
Demand countries.
0 Supply
The aggregate supply/demand balance
2010 2015 2020 is perhaps not surprising given the
22 sharp contraction in the demand uncertainties, but the results indicate
for sea transport in 2009 combined that the industry will most probably
with significant growth in total face a continuing tight labour market,
seafarer numbers. However, while with recurrent shortages for some
the data suggests there is currently officers, particularly if shipping
not a serious shortage problem for markets recover.
officers in aggregate, this does not of
course mean that individual shipping Unless measures are taken to
companies are not experiencing ensure a continued rapid growth in
serious recruitment problems. There qualified seafarer numbers, especially
is particular concern over the current for officers, and/or to reduce
and future availability of senior wastage from the industry, existing
management level officers, especially shortages are likely to intensify over
engineers, from the Far East and the the next decade. Supply appears
Indian Sub-Continent. Generally, likely to increase in many countries,
however, there are few supply but the positive trend that has
difficulties reported for ratings. been established for training and
recruitment over the past few years
The 2010 Update presents various must continue to ensure a suitable
global supply/demand balance future pool of qualified seafarers.
scenarios for the next decade. The
“benchmark” scenario assumes a It is important to stress that the
modest increase in the number of industry requires well qualified and
ships in the world fleet of 2.3% per high calibre seafarers capable of
annum (very similar to the average adapting to change and handling the
growth rate of the past decade). wide range of tasks now required of
Manning levels are assumed to decline them. But any training programmes
slightly on average, and back up ratios provided must ensure quality is
are cautiously assumed to be stable. not compromised in the quest for
On the supply side, it is assumed that increasing quantity.
recruitment rates will continue at
roughly the same rate as during the Maritime Labour Convention
previous decade, but wastage rates (i.e.
net loss rates from the industry) will The Geneva based International
be higher by around 1% per annum. Labour Organization (ILO) adopted
Despite these quite conservative the ILO Maritime Labour Convention
assumptions, the current moderate (MLC) in 2006. The wide range
officer shortage is expected to persist, of matters covered includes
unless maritime training is further seafarers’ contractual arrangements,
increased, and/or measures are taken responsibilities of manning agencies,
to reduce wastage rates. However, if working hours, health and safety, crew
general economic conditions continue accommodation, and medical and
to improve, there could be quite severe catering standards. The ILO MLC will
problems. be subject to Port State Control as well
as flag state inspection. Following
The latest update produced by ISF and ratification by a growing number of
BIMCO seeks to highlight that the flag states, including the major open
industry is likely to face a challenging registers, the MLC is expected to enter
future for crewing. There are many into force globally within the next
23
Summary of New STCW Rest Hour Requirements
The 2010 amendments to STCW introduce stricter rest hour requirements
than those which currently apply. In particular:
-The minimum rest in any 7 day period is 77 hours rather than 70 hours;
-The flexibility permitted by the ‘2 day derogation’ rule under STCW 95 has
been removed, i.e. seafarers must always have 10 hours rest in any 24 hour
period with no exceptions (except during an emergency);
-Maintenance of individual records of seafarers’ rest hours is mandatory;
-The rest hour limits apply to most seafarers on board, including masters, and
not just watchkeepers.
24 couple of years (the required tonnage regulations, at some point in the future. (ILO). These limits are currently
threshold has already been achieved). These will address the possibility of enforced as ILO Convention 180, but
Companies therefore need to prepare crew abandonment for the small will form part of the new ILO Maritime
to ensure full implementation and number of cases when normal Labour Convention regime once it
compliance. arrangements for repatriation fail, enters into force.
for example following a bankruptcy,
As an official ILO social partner, under and to require financial security from The regimes adopted by IMO and
the ILO tripartite process, ISF was shipowners for crew claims arising ILO were developed for very different
responsible for negotiating the text of from fatality or personal injury. purposes. STCW prescribes minimum
the Convention on behalf of maritime During the course of 2011, ISF intends rest hours from the safety perspective,
employers with governments, and with to publish a revised edition of its while the ILO Conventions also take
seafarers’ trade unions represented by Guide to the ILO Maritime Labour account of social issues, such as the
the International Transport Workers’ Convention, which was initially point at which additional payments
Federation (ITF). ISF therefore has a published shortly after the Convention for overtime should normally be made
special obligation to help to ensure the was first adopted. As well as taking and the extent to which work hours
Convention’s smooth implementation. account of the ILO Guidelines on may be subject to agreement between
enforcement adopted in 2009, the employers and unions in collective
An important aspect of the new edition of the ISF Guide will bargaining agreements - issues outside
Convention’s enforcement will be the also highlight the overlap between the remit of IMO.
issuance by flag administrations of the enforcement of existing ISM
Maritime Labour Certificates, usually Code requirements and those of the ISF is satisfied that changes to
following inspection by a recognised ILO MLC. It is expected that some minimum rest hours agreed by IMO
organisation such as a classification Administrations may use the existence are fully compatible with the ILO
society, and a separate requirement of a valid Safety Management requirements, although in practice
for ships to maintain a Declaration Certificate issued under the ISM Code they are somewhat stricter. In reality,
of Maritime Labour Compliance. as evidence of compliance with several given that the STCW amendments will
However, concern has arisen over of those items which are required by be enforced more quickly, they are
the way in which some classification the ILO MLC. Nevertheless, many likely to become the default regime
societies are choosing to interpret other ILO MLC requirements are not for Port State Control inspectors. The
the requirements, including those covered by ISM, and will therefore revised STCW Convention takes full
concerning crew accommodation, necessitate a separate inspection of account of a vital aspect of the current
in a manner going beyond the ILO the ship, although it is strongly hoped IMO and ILO regimes, both of which
Convention. ISF is therefore currently that some flag states, or classification permit occasional deviation from the
addressing these issues with class societies acting on their behalf, will normal minimum rest hours stipulated,
societies in conjunction with IACS. permit shipboard ISM and ILO MLC provided that sufficient safeguards are
inspections to be conducted in parallel. in place and that compensatory rest is
In September 2010, in Geneva, ISF provided - something which is crucial
members represented employers, Work Hour Regulations to safe and efficient ship operations.
alongside unions and governments, In particular, the Manila amendments
at a special Preparatory Tripartite As part of the negotiations preceding acknowledge the practical aspects of
Committee on the MLC, which the adoption of amendments to the ship operations - including short sea
addressed outstanding questions IMO STCW Convention, finalised in shipping - especially when ships are
on implementation in advance of Manila in June 2010, ISF was deeply undergoing peak work operations,
the Convention entering in force, involved in discussions at IMO on how and preserve some flexibility for
and procedures for agreeing future to harmonise seafarers’ minimum the seafarers, ships and employers.
amendments. The latter should rest hour requirements contained in However (with the exception of
be important given the agreement Chapter VIII of STCW with the work emergencies) from 2012 seafarers will
reached in 2009 for ILO to develop hour requirements adopted by the be prohibited from ever being on duty
some additional binding international International Labour Organization for more than 14 hours within any 24
25
26
hour period. not agree to any immediate further The Year of the Seafarer 27
increase to the ILO minimum. While
Meanwhile, a large number of many unions recognised the need 2010 was designated by IMO as
companies are now ensuring that they to help safeguard employment for the ‘Year of the Seafarer’. As the
are maintaining accurate records of seafarers, some unions were clearly principal international representative
the hours of work and rest on board disappointed by this response. ISF has organisation of maritime employers,
ship by using the ISF Watchkeeper therefore agreed to the convening of ISF had a special interest in using this
software, which, as well as producing a meeting of the ILO Joint Maritime welcome opportunity to highlight the
individual seafarer’s records in the Commission, in April 2011, in order importance of this unique and highly
format recommended by ILO and IMO, to resume formal discussions. skilled profession, and encouraging
allows companies and crews to ensure due recognition of the critical work
that they comply fully with both the ISF remains strongly committed to performed by the world’s one and a
ILO and IMO limits. An upgraded the principle of the ILO Minimum third million seafarers. In conjunction
Watchkeeper Version 3.0, which Wage recommendation which is now with IMO World Maritime Day, in
allows account to be taken of the referenced in the new Maritime Labour September 2010, ISF produced a
new IMO STCW rest hour limits, was Convention, although it has in fact special brochure which highlighted
launched in the Autumn of 2010. existed for over 50 years. While it is issues relevant to the employment of
only recommendatory, and not directly seafarers of which governments and
relevant to other seafarer grades, it shipping companies need to be made
ILO Minimum Wage more fully aware.
has a strong moral authority and is
The shipping industry is probably particularly important for employers
unique in that it has a mechanism for in developing countries. The ILO The commitment and importance
recommending minimum acceptable Minimum Wage also influences many of good shore based management
international wage rates. ISF is the collective bargaining agreements, cannot be over stated. However, it is
co-ordinator of the Employers’ Group including those enforced by ITF, and is ships’ crews who ultimately ensure that
of the ILO Joint Maritime Commission sometimes referred to in legal rulings. shipping is safe, clean and efficient,
(JMC) which is responsible for agreeing and that raw materials and finished
changes to the ILO Minimum Wage The ILO minimum wage is substantially goods are safely transported over tens
for Able Seafarers. The International higher than that paid for comparative of thousands of miles. It is, of course,
Transport Worker’s Federation (ITF) work ashore in developing countries. a remarkably cosmopolitan profession
co-ordinates the seafarers’ union Moreover, the actual minimum wage and being a part of the shipping
representatives. Unlike other ILO is significantly higher, typically perhaps industry is akin to being a member of
institutions, the JMC is bipartite and 50% more, once overtime hours (fixed a special international club. That is
does not involve governments. at a minimum of time and a quarter) not to say that a career at sea means a
and other mandatory requirements, lifetime at sea, and many ships’ officers
At the time of writing, the Joint such as payments for leave elect to move to excellent opportunities
Maritime Committee is meeting entitlements, are taken into account. in the shore based industry. Nor does
in Geneva in order to review the It is also only a minimum - most it mean that there are no aspects of
recommended ILO minimum which in ratings from developing countries seafarers’ employment which cannot
2011 stands at US$ 545 a month basic receive significantly more, while be improved, which is why ISF is
wage for an Able Seafarer, a figure officers receive substantially more, pressing for the ILO Maritime Labour
which came into effect in 2009 in line with differentials between officers Convention, governing seafarers’
with a previous agreed schedule of from OECD and developing countries employment standards, to enter into
increases. continuing to narrow. force as soon as possible.
48
Board of Directors
Chemical Carriers Oil Tanker
Panel Panel
Chairman: Chairman:
Mr Joseph Ludwiczak Mr Roger Restaino
Liberia Liberia
Marine
Passenger Ship Committee Bulk Carrier
Panel Chairman: Panel
Captain Trevor Smith
Chairman: Chairman:
Singapore
Mr Tom Strang Mr Dimitrios Fafalios
United Kingdom Greece
Construction
& Equipment Radio & Nautical
Sub-Committee
Sub-Committee
Chairman:
Chairman: Captain Paul Jones
Mr Maurizio d’Amico Singapore
Italy
Canals Environment
Sub-Committee Sub-Committee
Chairman: Chairman:
Mr Koichi Inoue Ms Teresa Hatch
Japan Australia