1. INTERTANKO Madariaga European Foundation Brussels 3 & 4 May 2005
International Association of Independent Tanker Owners
Madariaga European Foundation
Brussels 3 & 4 May 2005
Compensation and liability
- the need for international regulation
Kristian R. Fuglesang
Ladies and Gentlemen
Tanker shipping is vital for the welfare of everyone.
Tanker shipping is not without risks, but the industry’s record is generally very good. Despite some well known and regrettable accidents, the amount of pollution caused by tankers has been substantially reduced over the last decade. The industry is committed to quality and maintaining the improvement. Elimination of substandard shipping remains one of our main goals.
The loss of the Erika and the Prestige is regretted by everyone. The spills had an immediate effect upon the marine environment, fish, bird, beaches and tourism. Seeing the soiled beaches, it may be difficult to be dispassionate, but that is what we have to be.
I would like to:
put the accidents in perspective
refer to the compensation and liability system that exists
refer to developments of these, and
conclude that we need international as opposed to regional or national rules

2. Global primary energy consumption by fuel million tonnes oil equivalents
Notes
Source: BP

3. World oil supply
mbd

4. Crude oil seaborne trade

5. The world needs tankers

6. AS AN INDUSTRY WE MAY NOT BE LOVED BUT WE ARE NEEDED
                     
                                    
World Oil Consumption 3.6 billion ts
Transported by sea 2.2 billion ts
60% transported by sea.

7. Regular supply critical

8. Gasoline price at the pump
Notes
The world has ended up in a squeeze between too high growth in Asia in particular China, and tight supply of commodities. The demand has to be adapted to the supply of commodities and we now see that the supply of oil and other commodities in fact is limited.
Tanker built late eighties and early 90s may not have the same technical lifetime as the olds single hull VLCCS

9. Annual Releases, best estimates
Oil into the Sea
Annual Releases, best estimates

10. The world expects us to have 0 accidents.
Even though % of oil is delivered safely
It takes only one accident to change the industry

11. Tanker incidents: 1978-04 Number
Source: LMIS, Informa, press, INTERTANKO

12. Reported tanker incidents 2004, all sizes/types
Source: LMIS, Informa, press, INTERTANKO

13. Development of tanker oil spills
Source: ITOPF. Number of spills above 700 tonnes.

14. Accidental oil pollution from tankers and tanker trade
m ts spilt
1000 bn tm
Notes
Source: ITOPF, Fearnleys

15. Large pollution accident since 1990 represents 72% of quantity spilt
Notes
Source: ITOPF,INTERTANKO

16. Percentage of inspected ships detained
Port State Control
Percentage of inspected ships detained
Notes

17. 1992 Civil Liability Convention 1992 Fund Convention

18. Compensation limits

19. Main features of CLC/Fund
strict liability (i.e. liability regardless of fault)
prompt compensation of victims without prolonged litigation
owner entitled to limit his liability
international system
the system works – well tested

20. Tanker industry fully supports the international oil spill compensation system
encourage further ratification
assessment of payment balance between shipowners and oil receivers after the 3rd tier has been operational for some years
reopening: a Pandora’s box

21. Bunker spills convention 2001
HNS convention 1996

22. Need for international standards
Slow ratification process increases pressure for unilateral regulation

23. Threats to US federal law pre-eminence But ALL politics are local
INTERTANKO vs. State of Washington (2000)
- overturning state laws on manning, design, construction and operation
USCG vs. State of Massachusetts (pending)
State of California – vetoed on Escort Tugs, etc. (2004)
New Jersey (possibly Delaware) threatening to ban single hulls (2005)
EPA challenged on Ballast Water discharge exemptions (2005)
Local and state air emission legislation (ongoing)
State ballast water regulations (ongoing)
But ALL politics are local

24. 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 et al vs. IMO
Notes

25. EU Maritime Safety Package III
Amendment to Directive on Vessel Traffic Monitoring and Information
Liability and Compensation (principally Passengers)
Recasting of Legislation on Port State Control
Role of Classification Societies
Marine Casualty Investigations in the EU
Maritime Labour Standards
Flag State Initiative
But how about earlier programmes – Places of Refuge, Ratification of Conventions, Reception facilities

26. Should this man have been detained for more than two years without trial ?

27. Increasing Criminalization
Imprisonment of seafarers (Captain Mangouras et al)
Detention of Tasman Spirit crew and salvors
EU Directive on Criminal Penalties (including accidental damage)

28. Criminal sanctions for ship-sourced pollution
INTERTANKO support the investigation and prosecution of illegal discharges oil from ships.
INTERTANKO strongly objects to criminalising accidental oil pollution and to treating seafarers as criminals
Any criminal offence of pollution from a ship must be clearly defined and in accordance with international law.
Any penalties imposed on someone found guilty of such an offence must be proportionate. There should also be parity with any penalties imposed for pollution from land based sources.

29. Criminal sanctions for ship-sourced pollution - continued
Any suspects must be treated fairly, impartially and in accordance with international law on human rights.
INTERTANKO also requests coastal states to comply with their existing treaty law obligations to ensure that adequate, affordable, oil waste reception facilities.
Further, in order to safeguard the lives of seafarers and the marine environment, INTERTANKO urges coastal states to ensure proper contingency plans are put in place so that adequate assistance and if necessary a place of refuge can be made available to a ship.

30. Jean-Serge Rohart, CMI Chairman
“Every effort made by a state or group of states or region to move out of our existing framework undermines the process of unification of maritime law and the efforts accomplished in this domain over the last 30 or 40 years”.
Jean-Serge Rohart, CMI Chairman
He also added:
“It is very dangerous. That the European Union should seek to better assure its security is perfectly legitimate but it is desirable that it should do so in co-operation with the whole of the world maritime community, which means principally within the IMO.

31. Vision for the tanker industry:
“ A responsible, sustainable and respected industry able to influence its own destiny.”

32. Key industry goals - effective regulation
Regulatory environment which supports safe shipping operations, environmental protection and adherence to internationally adopted standards and procedures
Properly considered international regulation of shipping
Global regulation for a global industry, adopted and implemented uniformly

33. Thank you www.intertanko.com www.shippingfacts.com
Europe is more concnered with the effect of shipping rather than being shipping nations. Europe is acting more like ports states than shipping nations