INTERTANKO / INTERCARGO Joint Technical Seminar MUMBAI 22 November 2006 INTERTANKO INTERCARGO

INTERTANKO / INTERCARGO Joint Technical Seminar Global Governance Structures and 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 members representing > 80% of the independent oil tanker fleet and > 85% of the chemical carrier fleet, with strict membership criteria 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 fatalities Zero 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 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 / INTERCARGO Joint 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 / INTERCARGO Joint 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 / INTERCARGO Joint 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 business Is 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 / INTERCARGO Joint 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 YOU