Should shipping regulations be globally aligned?

The shipping industry has welcomed recent calls by the European Commission (EC) for globally aligned shipping regulations and standards but questions have been raised around the feasibility of compliance and policing, especially in open waters. Siim Kallas, vice president of the EC – the executive arm of the European Union – said at the opening of last week’s Posidonia 2014 maritime exhibition in Athens that shipping needed open trade and equal conditions to stay competitive and to achieve. He believes that the industry should develop globally aligned standards around safety, security, crew working conditions and environmental sustainability. “If a ship moves cargo from Rotterdam to Panama, the same rules should apply throughout the voyage,” he said. Southern Africa sales and commercial manager for Safmarine, Luke Ramsey, was in full agreements with the sentiments expressed by Kallas, “especially if it results in the lifting of standards for the industry,” he told FTW. “But I’m not totally convinced about the feasibility of this, especially if there are no incentives for compliance and no real consequences for noncompliance. For example, North Sea and Baltic ports require all vessels to emit less than 1% sulfur when they berth, but in Hong Kong the requirement is up to 3.5%.” A key stakeholder that needs to make its voice heard is the consumer, says Ramsay, who believes the initiative would be accelerated if the call came from the lines and the ports’ customers. Underwriting manager at Horizon Underwriting Managers, Mike Brews, told FTW that globally aligned regulations would enable underwriters and insurers to better understand the risks and be in a position to rate them more accurately. “We would then be able to charge higher rates and excesses for clients who do not comply with these standards or who choose to utilise the services of shipping lines that do not comply,” he said. INSERT & CAPTION If a ship moves cargo from Rotterdam to Panama, the same rules should apply throughout the voyage. – Siim Kallas