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The pursuit of quality
The pursuit of quality in shipping operations is hardly new,
but it has been given a new impetus in recent times. Shipping
is a heavily regulated industry, and there is now a widely held
view, on the part of administrations as much as industry, that
enough is enough. Today the party line is that the priority must
be the implementation of existing regulations rather than the
adoption of new ones.
It is of course not quite as simple as that. Cutting back on
new regulation is not like turning off a tap. Work in progress
tends to continue, and for many governments at IMO the development
of new rules is part of the natural scheme of things. Nonetheless,
there are now signs that the pace of activity is slackening,
and this provides the maritime community with both a challenge
and an opportunity. The European Commission has been quick to
fill the vacuum by promoting a responsible attitude towards self-regulation
on the part of the maritime sector as a whole. ICS has in principle
welcomed this development, having long argued that the mass of
prescriptive regulation has tended to hinder the scope for industry
initiative.
The debate has been taken forward through a number of conferences
and seminars, the whole exercise to date having a noticeably
European bias. The starting point was perhaps the Erasmus Forum
Conference in November 1996 in Rotterdam, followed by a UK Government-hosted
event in London in late 1997. A seminar chaired by European Union
Transport Commissioner Neil Kinnock, held in Lisbon in June 1998,
put the spotlight on a broad range of maritime interests - insurers,
brokers, classification societies, managers and shippers as well
as shipowners - by encouraging their representative bodies to
state their own objectives in terms of self-regulation, a process
continued by an OECD organised meeting in September 1998. A further
seminar hosted by the UK Shipping Minister, Glenda Jackson, in
December 1998 took the discussion one more step along the road,
and efforts are now being made to elaborate various ideas in
preparation for yet another conference, to be hosted by the Netherlands
Administration in June 1999.
The concept underlying the campaign is clear enough: if the pace
of new regulation is to be slowed, then the industry must show
itself capable of acting responsibly in the safe management of
its operations. The practice, however, is more complex. What
precisely is the responsibility of a shipper in selecting a safe
ship for his cargo? Is the job of the marine insurer to determine
quality or simply to assess risk? Should there be a formal obligation
on the broker to be more selective on grounds of quality? Can
banks be expected to concern themselves with the physical condition
of a ship before deciding on a loan?
Crucial to the debate about self-regulation is the question of
transparency. Informed decisions require access to the necessary
information, and the European Commission is currently developing
its EQUASIS scheme, intended to provide co-ordinated access to
various sources of data about the operation and physical condition
of ships - port state control reports, charterers' inspections,
certain classification records and the like. The Commission is
also seeking to promote an industry charter, intended to encourage
organisations to fulfil a semi-regulatory role with regard to
their members.
ICS has been centrally engaged in all these discussions, and
has welcomed their thrust while questioning some of the detail.
There certainly is too much prescriptive regulation, and if greater
self-regulation is to prosper it must clearly be more than mere
words. But whether the formality of an industry charter is the
most productive way to proceed is still open to debate, as is
the interpretation of quality. The principal object of a quality
shipping campaign should be to eliminate sub-standard operation
rather than to promote a 'supra' standard. It is one thing to
name and shame the bad, but quite another to alienate the great
majority of good operators by singling out a select list of the
industry's innovators.
Furthermore, and importantly, ICS has consistently stressed that
shipping is an international industry and that any exercise of
this nature will fail unless it embraces the maritime community
worldwide.
Nonetheless, the overall approach is positive. The shipowner
remains ultimately responsible for the safety of his ship, but
his partners in the maritime chain also have a part to play.
For the first time for many years, perhaps, the whole maritime
sector has an opportunity to show that there is a better balance
between regulation and self-regulation than has hitherto been
achieved. The task now is to carry the discussion forward internationally,
ensuring that all interests are brought into the debate.
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