As far as the shipping industry is concerned, good things and bad things come out of the European Commission’s deliberations in Brussels, writes maritime consultant Denzil Stuart

On the credit side recently has been the EC’s Third Maritime Safety Package (euphemistically known as ‘Erika 3’) containing proposals for new European legislation and amendments to existing legislation. Indeed, Intertanko, not known for its over-enthusiasm, said in November, “it will set the maritime agenda in Brussels for several years to come.”

The influential independent tanker owners’ organisation has been involved in a number of consultative meetings in Brussels, and has made written submissions during the construction of the package. But it did point to a number of potentially controversial issues, such as moves towards an EU flag and greater EC involvement at the International Maritime Organisation.

That said, Intertanko is generally comfortable with the proposals and is particularly pleased that radical changes to the liability regime, flagged by a Brussels bureaucrat a few weeks ago, were not included in the final draft.

Managing director Peter Swift said that on the whole it was a constructive package, and they found it most encouraging that the EC fully recognises the added value of international action where maritime safety is concerned.

In addition, the emphasis placed by Jacques Barrot, the EC’s vice-president and transport commissioner, on a “zero level of tolerance” is very much in tune with one of Intertanko’s new goals, as confirmed by its council, for Intertanko members to lead the continuous improvement of the tanker industry’s performance in striving to achieve zero fatalities, zero pollution and zero detentions.

On the debit side Brussels-wise has been a botched second attempt by the EC to introduce its controversial port services directive. The first ports package was rejected by the European Parliament in 2003 after widespread labour unrest and strikes across Europe which continued into 2004.

In June this year, Brussels indicated it was prepared to withdraw the planned directive if faced with opposition from other EU institutions rather than risk a second defeat.

The controversy has continued to simmer, and in November the outgoing German government slammed the directive.

It belonged on the list of EU projects that were superfluous and should be scrapped, said Ralf Nagal, state secretary in Germany’s transport ministry.

At the heart of the dispute is container handling and the transfer of licences from one operator to the next. There are approximately 100 container terminals in Europe, and many interests are involved, from freight forwarders and shippers to public and private port associations, tug owners and labour unions. Unions have threatened to strike (again) if self-handling rights for shipowners are not removed from the planned directive, one of the main stumbling blocks which scuppered the first directive.

Meanwhile, the IMO, the UN agency charged with looking after maritime safety, has been holding a two-week session of its governing assembly in London, the first since 2003. As mentioned, the EC is keen to have a bigger foot in the IMO door, and this must have been a major talking point during the review of the IMO’s strategic direction.

At an earlier meeting in Brussels to discuss the ports directive, Germany, Greece and the UK joined forces to attack the commission’s plans to represent the entire EU in the IMO – in other words, one voice for EU member states.

With 166 states making up the IMO membership, the organisation is coming under increasing pressure from diverging national interests and expectations and the needs of sovereign states. There is also pressure, even if only vocal, from developing countries.

However, solid progress was made at the assembly. One of the most important agreements was the IMO’s adoption of its Member States Audit Scheme. The IMO said: “This will herald a new era for the IMO, in which the organisation will have at its disposal a tool to achieve harmonised, standardised global implementation of IMO standards, which is key to realising the objectives of safe, secure and efficient shipping on clean oceans.”

Alongside the audit scheme framework, the assembly adopted a code for the implementation of mandatory IMO instruments, which will provide the audit standard.

Asia’s growing importance on the world shipping scene was recognised when four new states – Belgium, Kenya, Malaysia and Thailand – joined the IMO council, which will strengthen Asian presence on the IMO’s ruling body.

As usual, membership of the two main categories of council membership was unchanged. The ten states with the largest interest in providing international shipping services are China, Greece, Italy, Japan, Norway, Panama, the Republic of Korea, the Russian Federation, UK and USA.

There were four new names, as mentioned above, in the group of 20 states “which have special interests in maritime transport or navigation, and whose election to the council will ensure the representation of all major geographic areas of the world.” Ghana, Poland, Nigeria and Venezuela, council members prior to the assembly, applied for re-election but were unsuccessful.

In a further nod to Asia, a Chinese diplomat, that country’s ambassador to Britain, was elected president of this 24th biennial assembly.

This article expresses the personal views of Denzil Stuart, and should not be construed to reflect in any way the views of DNV management.

Date: 2005-12-22