Category: Maritime Policy

A Student Perspective: The Role of the UK Chamber of Shipping

Many shipping- and trade’s associations have been established in the United Kingdom since the nineteenth century. However, the UK Chamber of Shipping in its current form dates only from 1975. In 1878, most of the above mentioned associations agreed to support the formation of a national trade association, the Chamber of Shipping of the United Kingdom. This rapidly became the dominant trade association for shipping and most of the older, regional associations became members. The Chamber’s forerunner was granted a Royal Charter in 1921, and in 1975 merged with the Shipping Federation, which was formed as an employers’ association in response to increasing trade union activity in 1890. In 1992, the forerunner was renamed as the Chamber of Shipping and was re-branded as the UK Chamber of Shipping in 2012, to emphasize its identity.

The Chamber is recognized by the UK Government, EU institutions and other national and international organizations as the focal point for consultation with the British shipping industry on regulatory and other key developments, thus giving it advance notice of forthcoming changes. The Chamber has a well-developed mechanism and communication channels for promulgating relevant information throughout the industry, Government, Parliament, international organizations, unions, general public as well as media.

The mission of the Chamber is to champion and protect the UK shipping industry on behalf of its around 140 members from across the maritime sector, representing over 28 million DWT members. They are passionate about UK shipping and work to champion its future success and London’s status as the premier global maritime centre. The Chamber work closely with Government, Parliament, policy makers and other parties to:

1. Gain recognition of shipping’s contribution to the UK economy and employment;
2. Make clear the impact of upcoming and existing legislation on the future of shipping in the UK;
3. Bring them together to work with the UK shipping industry and the related national, European and international maritime organizations.

The UK Chamber of Shipping has five committees covering the most prominent policy areas for UK shipping within its membership and three sector panels to deal with issues affecting particular sections of the shipping industry. The Chamber is monitoring the new developments of shipping and other relating spheres, it proposes and agrees policy, it represents that policy to the appropriate audiences, aims at the adoption of its policies and at ensuring their implementation. The Chamber works with a range of national and international regulators, maritime and trade bodies across the industry, which often have common goals in terms of lobbying and political activity and championing the profile of maritime activities. The UK Chamber is often active within this cluster to help the UK maritime industry to achieve its common goals.

According to ‘The economic impact of the UK maritime services sector’ published by Maritime UK in December 2012, the maritime services sector made an estimated £13.8 billion direct value-added contribution to GDP in 2011, equivalent to 0.9% of the UK economy. It is estimated that the maritime services sector created approximately 262,700 jobs in 2011 or 0.8% of total UK employment. Moreover, including direct, indirect and induced impacts, the maritime services sector is estimated to support 634,900 jobs, or 1 in every 50 jobs in the UK. Moreover, once these multiplier effects are accounted for, the sector makes a value added contribution to GDP of £31.7 billion, equivalent to 2.1% of the UK economy. The above mentioned figures imply that the maritime industry is a larger employer, contributor and producer for UK national economy. And furthermore, these figures indicate that the role of the UK Chamber of Shipping is really important not only for the British shipping but for the whole British economy, now and in the future.

Hsien-Chang Yang, MA International Maritime Policy Student

A Student Perspective: Shipping Pools, Liner Conferences by another name?

Shipping Pools. Refer to them as you wish: the reincarnation of a bygone shipping system, shipping economic metamorphosis, old wine in a new bottle, the 3rd way shipping method – whichever way you want, the core facts remain unchanged. Shipping pools are the Liner Conference systems all over again, right?

For a century and half or thereabouts, shipping concerns were able to arrange themselves into cartels called conferences in a bid to agree, among other things:
• the quantity of goods that could be allowed on the market at any one time
• the schedules of deliveries
• the freight rates
• the terms of contracts
• the allotments of freight to be ferried by individual ship owners (quotas)

This easy, unchallenged way of making money continued even after the birth of the mother of all supra-national policymaking institutions, the EEC, the forerunner of the EU. These cartels were exempted from all European competition laws for many years as a way of protecting the European shipping industry – a kind of bulwark against flag of convenience shipping, a way of augmenting Europe’s lost competitive edge in the global market place – a way of ensuring greater prosperity in Europe. Can you believe it? Yes. Take it from me. It is true. Shameful but true, really.

However, everything came to an end when in the wake of immense pressure from the United States and GATT, the predecessor the World Trade Organization (WTO), it suddenly dawned on the Europeans that the conferencing business model was not only utterly uncompetitive but also hugely unfair to all non European shipping companies and all non European consumers, especially those in dirt poor developing countries. Hence, under EU guidance, the Liner Conference system was faced out slowly and finally prohibited on 17 October 2008. It was said then that a breach of the prohibition would result into hefty fines, anything up to and beyond a shipping company’s global one year profits.

Gee. How did the ending of the Conference impact European ship owners? How did it impact freight rates and surcharges worldwide? What about service levels – did they go up or down? It is reasonable to wonder if someone has ever incurred the wrath of the EU, right – and how much was the penalty? How did it impact regional port throughputs? What about impoverished states – how did the end of the Conference impact them? Be a good maritime student. Find out on your own. Every good admiralty and maritime law guide published after 2008 have answers to these questions.
Tell me. How are liner conferences different from shipping pools? Are they one and the same animal? What are shipping pools, anyway? Read my next piece to find the answers to these hot questions.

Gola Traub, MA International Maritime Policy Student

A Student Perspective: the Past, Present and Future of IMO

The IMO was established in Geneva in 1948 and came in to force ten years later, meeting for the first time in 1959. It is a specialize Agency of the United Nations with 170 member states and 3 associate members, and its headquarters is located in London.

The IMO operates on a structural pattern; it is governed by an Assembly of members and is financially administered by a Council of members elected from the Assembly. The work of IMO is conducted through five committees and these are supported by technical subcommittees. The operations of IMO are supported by a permanent secretariat of employees who are representatives of its members. The secretariat is composed of a Secretary-General who is periodically elected by the Assembly, and various divisions such as those for marine safety, environmental protection, and a conference section.

During the past decades the main concern of IMO was to: (a) improve safety at sea (SOLAS), (b) facilitate trade among seafaring states, and (c) protect the maritime environment. Nowadays, IMO aims to enact regulations, which are broadly enforced by national and local maritime authorities in its member countries, such as the COLREG (International Regulation for the Prevention of Collision at Sea), the PSC (Port State Control), which is the inspection of foreign ships in national ports to verify that the condition of the ship and its equipment comply with the requirements of international regulations and that the ship is manned and operated in compliance with these rules. Furthermore, new amendments to the 1974 SOLAS Convention were enacted in December 2002. This development gave rise to the new International Ship and Port Facility Security (ISPS) Code, which went into effect on July 2004. The latter is a new amendment to the Safety of Life at Sea (SOLAS) Convention (1974/1988) on minimum security arrangements for ships, ports and government agencies.

But what are the plans of IMO for the future? As most countries of the world are signing the Memoranda of Understanding (protocols), this leads to a unification of the Port State Control procedures among all the signatories. As a result, the enactment and implementation of IMO’s maritime policies will bring about significant development in the maritime sector in a world-wide scale. To be more specific, the future role and responsibility of IMO is to work on and develop technical marine safety, security, and pollution prevention with global standards. However, for this to happen: (a) the governments have the duty to implement and enforce IMO’s safety and security standards, (b) the shipping companies are responsible for the safety of their ships, which means applying safe standards to their ships, (c) the shipboard personnel has the task of putting into operation the various safety, security and anti-pollution measures applicable to the ship on which they serve. In a nutshell, every member of the global maritime and shipping community should be part of the implementation process for IMO to function well.

Raymond Irekhore, MA International Maritime Policy Student

A Student Perspective: Implementation of the Marine and Coastal Access Act, 2009

The Marine and Coastal Access Act 2009 (the Act) has a number of elements, such as enabling the Marine Management Organisation and develop marine planning. The primary aim is to strengthen the protection of the marine environment, which includes marine conservation zones and the management of fish stocks.

The Act is the primary legislation, which will be the starting point for a number of secondary legislative processes that will put the purpose(s) of the Act into action. This Act is seen as ground breaking, because it is truly unique. This is because it provides a single regulatory model and body to protect the ‘living seas’ (Wildlife Trust).

The development of the Act is that it will directly counter the problems of overexploitation, which has been a significant issue in the marine environment (and the rationale for the legislative process created). The Act is a culmination of policy review and development from 2001, which inevitably required legislation as the protection of the seas would only be achievable through legal obligations.
The Act has brought some important changes, which include the Marine Management Organisation (MMO) being put into action. There has also be drafting of marine plans in the East and Southern Coasts, as well as a marine licensing regime in place to ensure that any exploitation is based on ensuring sustainable fisheries management. One of the most important factors is the development of marine protected areas, which will limit exploitation in some of the most vulnerable coastal areas.

The main problem with the Act is that it may have enabled potentially substantive organisation and planning, but putting these elements in practice has been less than effective. For example, the MMO has a low value added service; as well as a slow uptake for marine planning. Another example is the ineffectiveness of the marine licensing and fisheries conservation system. This illustrates that the Act has in fact made little practical change, which is due to the ineffectiveness of the practical implementation of the legislation and not the statute itself. This means that the purposes of the Act will not be met; hence there needs to be more effective practical implementation to meet the end goals (especially meeting the Marine Protection Area targets).

The implication is that the Act can be seen as a potentially effective tool to protect the marine environment off the English coast. The implementation seems to be poor, which will mean a mixed bag in meeting the end-goals in immediate and medium future. The consequence of this is that there needs to be special reconsideration of the implementation, in order to create a better model. This may not be necessary; as the Act is relatively new the practical issues may be rectified as the ‘kinks’ are ironed out. As Pliny the Elder identifies “the only certainty is that nothing is certain.” However, it stands to reason that if a system is failing that it is reconfigured to improve the effectiveness of implementation.

Faisal Idris, MA International Maritime Policy Student

GMI One-Day Short Courses: Maritime Crime; Maritime Ancestry and Maritime China

Greenwich Maritime Institute are delighted to announce that registration is now open for three one-day short courses that are to be held in June 2013.

The courses all reflect the expertise and interests of our teaching staff so are a mixture of historical and contemporary themes. Anyone is welcome to attend, there are no entry requirements.

Fees: Each one-day course costs £90 per person. However if you would like to attend more than one course the fee for two courses is £160, or for all three courses £240. Fees include course materials; certificate of attendance; lunch and refreshments throughout the day.

For a booking form and more details on the courses, please visit our website: http://www2.gre.ac.uk/about/schools/gmi/study/short/programmes

 

Greenwich Maritime Institute Open Day

We are pleased to announce that staff of the Greenwich Maritime Institute (GMI) will be available at the Univeristy of Greenwich Open Day on Saturday 23rd February 2013 to discuss the following:

• The Importance of the Sea
• GMI Taught Masters Programmes: Maritime History; International Maritime Policy; Maritime Security; Short Courses
• GMI Research: Staff research projects and Mphil/PhD research
• Networking and Employability

If you are passionate about the sea and interested in finding out more about the GMI, we would love for you to come along to Greenwich and have a chat with us at our stand. All you have to do is register and we will see you on the day!.

We will also be available for online chat from 10am – 3pm GMT on Saturday 23rd February 2013 via the instant message facility on our facebook page:

If you are unable to attend one of the planned open days then we would also be very happy to make an individual appointment to come and meet with staff and students at other times.

GMI LOGO NEW

The Role of Classification Societies in the Maritime Regulatory System

Classification societies are maritime organisations that make and verify standards for the construction and operation of sea-going vessels and off shore rigs. Their genesis can be traced back to the 1700s when maritime insurers wanted to ascertain whether the ships they were underwriting were sound or not. Edward Lloyd established the first register of shipping in 1764 to satisfy the businessmen’s need.

The Lloyd’s Register of Shipping, as Edward Lloyd’s establishment was called, rated the construction and condition of a ship’s hull by conferring the grade A, E, I, O or U. – and graded equipment as G, M, or B – good, middling or bad. Hence, any vessel that received AG was thought to be in an excellent state to ply on sea. Today’s system is different: vessels are either in class or out of class (IACS, 2012).

As the classification systems developed and spread in the nineteenth century, their function changed from merely classifying to setting standards. Currently, there are well over 50 classification societies operating worldwide, some eminent, others obscure. The largest one in term of tonnage is the International Association of Classification Society (IACS). It has more than 90% of global tonnage. To date, it has thirteen affiliated members worldwide.

Classification societies’ cardinal business is to heighten safety of life and property offshore. Ideally, this role starts well before a vessel is built. The business person wishing to construct a ship selects a society, which authorizes the standards to which the new building should be constructed and supervises all facets of the construction, eventually ‘grading’ it before it sets sail. Thereafter, the society inspects it at regular intervals to make certain that it is seaworthy and ‘fit for purpose’. Indeed, classification societies are the hub of technical expertise in the shipping industry.

Unquestionably, a ship that meets internationally accepted standards gets classified quite easily by a reputable classification society. The reverse is true for a substandard ship. In fact, the owner of such a ship tends to stay clear of high quality classification societies – and this often dictates the type or cost of insurance he gets.

The requirements on which classifications are based are derived from a number major of sources, namely:
• National and regional requirements (i.e., EU regulations and directives)
• International/IMO statutory agreements (i.e., SOLAS and MARPOL)
• Rules created by classification societies
This latter category has given rise to ‘class hopping’ by ship owners and flag states. It has also given rise to an intense competition among classification societies (in much the same manner flag states compete).

It is worth noting that these societies do not cover how ships are being operated. This is intended, one may rightly argue, to discourage liability lawsuits.

An increasing number of flag states are engaging classification societies to inspect and certify ships in their fleets. This is particularly true in respect to tonnage measurement and load lines, the transportation of dangerous substances, SOLAS, MARPOL, among other key IMO guidelines. And this is proving to be a major source of income for these non-governmental – ‘non-profit’ organizations.
Insurance companies, flag states and governments continue to use the services provided by classification societies. However, we have to mention that the societies themselves do not have legal power of enforcement.

Gola Traub, MA International Maritime Policy Student

Public Seminar – The Legacy of the Thames Tideway Tunnel

The next GMI Research Seminar of the 2012/13 series will take place at 6pm on Wednesday 23rd January 2013.

‘Maximising the Legacy of the Thames Tideway Tunnel’ will be presented by Phil Stride, Head of Thames Tideway Tunnel at Thames Water.

The River Thames has become an environmental and public health hazard with untreated sewage regularly overflowing into it from London’s Victorian sewerage system. Built by Sir Joseph Bazalgette over 150 years ago, for a population of four million, this network of sewers still works today but is at capacity, unable to cope with the demands of a population that has now exceeded eight million. The Thames Tideway Tunnel will, if given approval, greatly reduce the amount of untreated sewage currently discharging into the tidal River Thames.

In addition to a cleaner, healthier river, the Thames Tideway Tunnel will secure long term benefits to the capital; providing a river fit for modern day London, whilst attracting business and tourism alike. The creation of 9,350 jobs will support local businesses and communities and create a training and skills legacy that will help inspire a new generation of engineers. In building the tunnel, new permanent public spaces along the river will add to the vitality of London.

For a map and a copy of the full seminar programme please see our website: http://www2.gre.ac.uk/about/schools/gmi/about/events/seminars

Location: Room 075, Queen Anne Court, University of Greenwich, Old Royal Naval College, Greenwich, London, SE10 9LS

Time: Tea and coffee will be available from 5.30pm, the seminar will begin at 6pm and a glass of wine will follow.

The GMI Research Seminars are open to everyone, they are free and no booking is required.

GMI Interviews Women in the Fishing Industry

Researchers from the Greenwich Maritime Institute, Dr Minghua Zhao and Esther Copete, spent two weeks in Belgium and the Netherlands during August 2012, conducting fieldwork which investigates women’s role and contribution to fisheries in the EU. The research is part of a three-year, €4.6 million project, Geography of Inshore Fishing and Sustainability (GIFS), funded by Interreg Iva 2 Seas.

During the fieldwork the researchers had the opportunity to meet the president of the Women in Fisheries Network in the Netherlands who spoke about their activities and their concerns about the industry’s future.

More than 20 interviews were conducted in selected fishing communities in the two countries. In Breskens the team had the opportunity to interview three fisher wives who spoke about their lives and answered questions related to the components of social cohesion. They expressed their views on the women’s roles in their communities and their main concerns regarding their husbands’ jobs, providing the researchers with an insight into the community’s views of the fishing sector.

The researchers also had the opportunity to interview the female Sales Manager of a Breskens-based company supplying fish to wholesalers and retailers across Europe. They also met and talked to the only local fisherwoman in the history of Breskens and her family members who have continued with the business.

The School of Fishing is located in Vlissingen and several students were interviewed as well as their partners. This provided the team with an idea of the younger generation’s view of and level of confidence in the sector.

The GMI research team received strong support from the local partners in both countries. They would like to take this opportunity to register their most sincere thanks. 

More information about the work of GIFS can be found on their website www.gifsproject.eu

 

Dr Minghua Zhao

Public Seminar – African Piracy: Is the Medicine Working?

The next GMI Seminar of the 2012-13 series will be taking place on Wednesday 7th November 2012 at 6pm in Room 075, Queen Anne Court. http://www2.gre.ac.uk/about/travel/greenwich

 

African Piracy:  Is the medicine working?

In this seminar, guest presenter Ian Millen  will address the current status and trends in both Somali and Gulf of Guinea maritime crime;  the different models, the approaches used to mitigate the risk and the possible future outcomes.  He will contrast the various types of crime practised either side of the African continent and look at how the risk is treated by regional and international actors.  His talk will focus on the operational aspects of Somali piracy and Gulf of Guinea maritime crime, outlining the complexity of tackling the problem from the perspective of a commercial intelligence company.

Cdr Ian Millen RN (retired) is the current Director of Intelligence at Dryad Maritime Intelligence Service Ltd – a market leading commercial intelligence company that helps seafarers quantify and mitigate the risks posed by piracy and other waterborne crime.  Ian has over 30 years’ of experience in the direction and conduct of national and multi-national intelligence operations.  From strategic analysis, supporting policy and capability development, to direct operational support Ian draws upon a significant amount of intelligence experience and regional knowledge.  After a 30 year career in the RN, Ian spent 4 years in the UK’s Serious Organised Crime Agency (SOCA) where he was responsible for the development of information and intelligence systems.  The combined experience of maritime intelligence and organised criminality made him a natural choice to lead Dryad’s intelligence effort in support of its wide shipping client base.  Ian is a regular contributor to Lloyds List and other maritime publications.

Everyone is welcome to attend, the seminar will begin at 6pm, it is free to attend and no booking is required. Tea and coffee will be available from 5.30pm and a glass of wine afterwards.

http://www2.gre.ac.uk/about/schools/gmi/about/events/seminars

The GMI Seminar Series is sponsored by the Zhonghui Maritime Education Fund.