The sinking of Erika and loss of her cargo of heavy fuel resulted in an environmental catastrophe in one of the most sensitive areas of the European continent. It raised searching questions affecting those across the industry. At the core of the call for change lie the European Commission proposals for a post-Erika safety package which, if adopted, will have a far-reaching effect on all players in the maritime sector. Paal Frisvold, at the EFTA Secretariat in Brussels, shares his thoughts with Stuart Brewer, editor of DNV Forum.
Neither the flag state, the classification society, the shipowner nor the cargo owner admitted (some didnt even respond to) the accusations from a shocked public opinion and a determined French Government. Politics prevailed, and in addition to the payments guaranteed through the IOPC fund, the French cargo owner ended up paying up under public pressure.
This time, however, the maritime players can no longer stick their heads in the sand. Having caused devastating damage to the French tourist industry, the umbilical cord of the French economy, and Frances beloved natural pearl the beaches of Britanny, time has been called. On strict orders from the incoming French Presidency of the EU, the Commission has drawn up legislative proposals that could drastically alter each maritime players responsibilities and, most importantly, financial liabilities.
A few examples of what can be expected: Controls and inspections of ships in ports will be extended and considerably tightened, particularly for tankers over 15 years old. Companies chartering substandard ships that are detained will be listed and exposed. There will be faster phasing out of single-hull tankers, in line with the previously much-criticised U.S. Oil Pollution Act. And in the longer term, financial liabilities might be substantially increased and a European Maritime Safety Agency might be established primarily in order to supervise the performance of the classification societies.
Unlimited liability on Class
The role of class has come under particular scrutiny, and some of the more innovative initiatives concern the classification societies. From being able to shrug off most of the responsibility for malfunction once class has been issued, the Commission has suggested the classification societies be made financially liable for the work they do for EU flag states for up to 5 million euro. The main EU countries, however, are not satisfied and want the societies to be liable for a minimum of 5 million euro and up to an unlimited amount, should their quality control prove unreliable. Moreover, through a revised Directive on Classification Societies, Flag States will have to gain acceptance from the European Commission before they delegate authority to the societies.
Obviously the tide has turned. Europe is today dominated by host states as opposed to flag states, countries whose prime concern is the conservation of the environment, and whose maritime fleet and interests have declined drastically over the past 30 years. These countries will no longer accept a system where all participants, including shipowning companies, charterers, cargo owners, insurers, classification societies and flag states, can hide behind walls of secrecy, and sometimes not even pay for the damage done due to insufficient liability coverage. The current system is obviously flawed and outdated. The industry has closed its eyes for too long, and the old habit of not wanting to wake up sleeping dogs has proved to be counterproductive. The dogs are awake, and they will bite if the industry and maritime authorities dont hurry to put their house in order and profoundly change the system. As Phil Loree, Head of the Federation of American Controlled Shipping said during the fierce debate in Congress on the Oil Pollution Act in 1989, If the industry doesnt hang together, they will hang separately.
This article expresses the personal views of Paal Frisvold, and should not be construed to reflect in any way the views of the EFTA Secretariat.