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17 May 2010 Shipowner Associations Welcome EP Support for Rotterdam Rules The European Community Shipowners’ Association (ECSA), the International Chamber of Shipping (ICS), BIMCO and the World Shipping Council (WSC) have greatly welcomed the clear recommendation by the European Parliament that EU Member States should move “speedily to sign, ratify and implement the UN Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea, known as the ‘Rotterdam Rules’, establishing the new maritime liability system”. The Rotterdam Rules, adopted by the United Nations Commission on International Trade Law (UNCITRAL) will replace the existing cargo liability regimes such as the Hamburg and Hague/Visby Rules.  Shipowner organisations firmly believe that this will achieve greater global uniformity for cargo liability, facilitating e-commerce through use of electronic documentation, reflecting modern ‘door to door’ services involving other modes of transport in addition to the sea-leg and ‘just in time’ delivery practices.    Following a thorough and detailed analysis of the Rotterdam Rules, ECSA, ICS, BIMCO and WSC have all concluded that this important new regime must be promoted by the industry to avoid the risk of a proliferation of regional cargo liability regulations.  However, early ratification of the UNCITRAL Convention by major trading nations, such as EU Member States, will almost certainly give this process critical momentum.       Notes: The recommendation is contained in a European Parliament Resolution on strategic goals and recommendations for the EU’s maritime transport policy until 2018. ECSA, ICS, BIMCO and WSC are international trade associations that collectively represent about 90% of the global shipping industry.  The International Chamber of Shipping (ICS) and the European Community Shipowners’ Associations (ECSA) represent the world’s national shipowners’ associations.  BIMCO has a wide international membership of individual shipping companies, operating the majority of the world merchant fleet in all sectors and trades. The World Shipping Council (WSC) represents the interests of global containership operators.                                                              Back to Top

30 April 2010 International Conference on the Revision of the HNS Convention ICS today welcomed the adoption of the Protocol to the 1996 Hazardous and Noxious Substances (HNS) Convention, which was signed by 70 States following a diplomatic conference held under the auspices of IMO during the past week. ICS and its members have campaigned for many years for the ratification and entry into force of the 1996 HNS Convention, which will establish an international regime of liability and compensation for HNS damage, to the benefit of all stakeholders, including those suffering HNS damage, those undertaking clean-up measures – including Governments – as well as shippers and carriers. The Protocol addresses the problems in the Convention that were preventing States from ratifying it. These included the practical problems of reporting packaged goods imports to the Fund, the treatment of LNG and the consequences of non-reporting of goods generally. Tony Mason, the Secretary General of ICS, said that “whilst these were all problems relating to the second tier of liability and not related to shipowners’ liability tier, it was in the interests of all parties that this Convention enters into force and therefore ICS, on behalf of shipowners, took an active role in the discussions leading up to the Conference and during it, to find practical solutions to these problems.” It is hoped that the adoption of the Protocol represents an agreement which is accepted on a broad international basis, and which will now pave the way for early entry into force.                                                                         Back to Top

30 April 2010 ICS and ISF Shipowner Associations Meet in Singapore The International Chamber of Shipping (ICS) and the International Shipping Federation (ISF) held their Annual Meetings in Singapore from 28-30 April at the invitation of the Singapore Shipping Association. The representatives of national shipowners’ associations from 33 countries discussed a number of important issues of concern to the global shipping industry, which transports about 90% of world trade by sea. Potential US Ban on Pirate Ransom Payments ICS/ISF national shipowners’ associations called on governments to enhance existing naval protection against piracy in the Indian Ocean. “After 2 years of increasingly violent armed attacks, enough is enough!” said ICS Chairman/ISF President Spyros M Polemis. “The current situation, with over 200 seafarers being held hostage by Somali pirates at any given time, is totally unacceptable. However, our immediate concern is the most unhelpful US Presidential Order (of 13 April) on security in Somalia, which suggests that those involved in the payment of ransoms to release ships’ crews could be subject to criminal sanctions. Words cannot describe our frustration. This is a very serious matter, and there is a most urgent need for the US to provide clarity on the precise meaning of this, frankly, extremely confusing Presidential order. Our primary concern is humanitarian: what else is a shipowner meant to do if his seafarers are taken hostage by ruthless Somali pirates who threaten their lives? The US needs to appreciate the potentially life threatening impact of the Order on the lives of seafarers being held hostage, as well as the truly serious implications for world trade, especially if shipowners are unable to operate in the Indian Ocean due to the concerns that shipping companies and their insurers run the risk of being prosecuted by the US Department of Justice. He added: “It is simply unacceptable for the US, and those other major powers that fail to fulfil their responsibility to protect the waters affected by pirates, to cede control of these strategically vital trade routes to just a handful of Somali criminals, while leaving kidnapped seafarers incarcerated in appalling conditions. What kind of signal does this give to others who have contempt for life and international law?” Reducing Shipping's CO2 Emissions ICS reiterated its commitment to helping governments at the UN International Maritime Organization (IMO) deliver a ‘bankable’ package to reduce the global shipping industry’s CO2 emissions substantially, before the next major United Nations Climate Change Conference in Mexico in December 2010. Mr Polemis explained: “We are confident that governments at IMO will finalise regulations on technical and operational measures to reduce emissions, for mandatory application to ships on a global basis, and that shipping can deliver truly meaningful CO2 emission reductions. Cutting fuel consumption is enlightened self interest.” He added: “An agreement at IMO on so called Market Based Measures is proving more of a challenge, but ICS is committed to providing constructive input on the implications of the various options that have so far been proposed. Whatever is agreed, MBMs must be demonstrated to deliver genuine and direct environmental benefit, rather than simply being used as a source of revenue for governments, or to compensate for lack of progress in other industry sectors. Shipping is already the most carbon efficient form of transport, but we are not a ‘cash cow’. Any MBMs adopted must also be applied equally to all ships, regardless of flag, in order to avoid significant market distortions.” Mr Polemis said: “ICS recognises that governments such as China and India do not wish to prejudice their positions in the wider UN Climate Change negotiations, but it is important that they can find a means of reconciling the UNFCCC principle of Common But Differentiated Responsibility with the IMO principle of global rules for global shipping. We sincerely believe it is in the interests of developing nations to understand that in the absence of a global agreement for shipping at IMO, their ships will almost certainly be confronted with unilateral rules imposed by Europe and the US, over which they will have far less influence than they would with a worldwide agreement, negotiated with their participation, at IMO.” Seafarer Issues The meetings welcomed IMO’s designation of 2010 as the ‘Year of the Seafarer’ and the opportunity this provides to highlight the important work that seafarers undertake in transporting world trade, and the challenges they face (including piracy). ISF members, who will be leading employer representation at the Diplomatic Conference on the revision of the IMO STCW Convention governing seafarers’ competence standards (to be held in Manila in June 2010) expressed satisfaction with the improvements to training which were expected to be delivered. However, the meeting expressed real concern about the draft STCW text on seafarers’ rest hour regulations which would remove the flexibility contained in the current Convention (and similar ILO requirements including the Maritime Labour Convention) and which could have very serious consequences for safe operations without having any impact on fatigue. ISF members also reviewed the progress being made towards the implementation of the ILO Maritime Labour Convention which is expected to enter into force within a year so. However, the meeting voiced concern about the differing interpretations being given to the ILO requirements by some classification societies (and potentially by regional port state control authorities) which are at variance to what has been agreed at ILO. ELECTIONS Mr Spyros Polemis (Greece) was re-elected as Chairman of ICS and President of ISF. The meetings elected Mr Trygve Seglem (Norway) and Mr Frank Leonhardt (Germany) as ICS Vice Chairmen for 2010/11, and Captain Dirk Fry (Cyprus) and Mr Carlos Salinas (Philippines) as ISF Vice Presidents. The 2011 ICS/ISF AGMs will be hosted by the German Shipowners’ Association in Hamburg in May 2011.                                                                        (end) Notes: ICS is the principal international trade association for shipowners, ISF is the principal international maritime employers’ organisation. The organisations represent all sectors and trades in the global industry and about 80% of the world merchant fleet. More information on the above and other issues is available in the new ICS and ISF Annual Review 2010, which has just been published and is available in electronic form at www.marisec.org/AnnualReview10                                                                      Back to Top

18 January 2010 Somali Piracy- Governments Must do More. The International Chamber of Shipping (ICS) is the principal international trade association for the merchant shipping industry with member national shipowners' associations in 33 countries representing all sectors and trades and 75% of the world merchant fleet. The International Chamber of Shipping (ICS) has expressed its deepening frustration at the seeming impotence of the international community to address the continuing piracy crisis in the Indian Ocean, with around 1,500 seafarers having so far been taken hostage for ransom, often for months at a time, in spite of the comprehensive measures that ship operators have taken to defend their crews.[1] “The unacceptable situation prevailing now, with seafarers lives being threatened on a daily basis - and Somali pirates still operating with impunity - cannot be allowed to continue.” said ICS Chairman, Spyros M Polemis. “If a similar number of aircraft passengers had been taken hostage there would undoubtedly have been a more robust response. However, many governments seem oblivious to the fact that ships carry around 90% of world trade, and that security of major seaways is strategically vital to the functioning of the global economy.” There is growing concern that the international community is not actively seeking to eliminate piracy and is instead treating the current level of attacks against shipping as somehow ‘tolerable’. In effect, pirates are being given a message that their criminal activity carries very few risks in comparison to the millions of dollars that can be made from extorting ransom payments. As a result, the number of pirates is growing, and there is real danger that, in the absence of a firm response, their methods of hijack and violent kidnapping will be successfully emulated by others elsewhere. Notwithstanding the unprecedented degree of co-operation between the wide array of warships providing protection to ships in the region – for which the shipping industry remains very appreciative - the current level of response is simply insufficient. It is vital that governments, at the very highest level, become far more engaged in finding a long term solution to the crisis. “It is particularly upsetting when the main focus of some senior politicians is limited to commenting on their objections to the payment of ransoms.” said Mr Polemis. “But given the inability of the international community to intervene in Somalia, the shipowner currently has little alternative when confronted with seafarers being held hostage.” While the military has been successful in providing protection in the Gulf of Aden, the pirates are now operating throughout the northwest Indian Ocean. On any given day, in an area of one million square miles, only about 12 military vessels are available to come to the aid of merchant ships under attack (and these are focused on the Gulf of Aden). Little is being done to prevent the pirates from operating from their bases in Somalia, or to disable the ‘mother ships’ which they use to launch attacks up to 1,000 miles from the Somali coast. In addition to calling for governments to take a more strategic approach to the suppression of piracy, the shipping industry is seeking refinements to the existing military response. While the level of co-ordination amongst military forces providing protection to shipping is extremely good, it falls short of what could be achieved under a single unitary command structure. At present ships operate under different ‘rules of engagement’, which prevents a consistent response to pirates when they are caught in the act. United Nations Resolutions, which reiterate governments’ authority to act, are being interpreted differently by the various nations that have warships in the area. All too often, small boats or skiffs that have conducted aborted attacks are allowed to proceed back to Somalia without military intervention. This gives the message that the military will not see hot pursuit operations through to their natural conclusion. Similarly, intercepted pirates are often released only to return to Somalia without being arrested and prosecuted. A more consistent and robust approach to enforcement is required. In cases where attacks occur hundreds of miles off the Somali coast then the skiffs must have been deployed from mother ships. The skiffs simply do not have the endurance for operations deep into the Indian Ocean. Why are the ‘mother ships’ not being intercepted and detained? While ICS supports efforts to establish a stable government in Somalia that can enforce the rule of law, it is widely accepted that this could take years if not decades. It is therefore urgent that governments consider what additional steps should be taken now, and not later. “We cannot continue to allow crews to be taken hostage, a situation which is simply unacceptable.” said Mr Polemis. The protection of shipping from piracy - regardless of flag, or the nationality of the crew - is a clear and legitimate responsibility for governments under the United Nations Convention on the Law of the Sea. Historically, as now embodied in international law, the primary role of navies has always been to protect merchant shipping and to keep the sea lanes open to trade. “It is extraordinary that governments today seem less able to protect shipping than they were almost 200 years ago.” remarked Mr Polemis. Notes Additional information about Somali pirates and the most recent attacks can be found at www.mschoa.org (Maritime Security Centre Horn of Africa) and at www.icc-ccs.org(ICC International Maritime Bureau).                                                                                   Back to Top