Page 3 - The flag March 2016

UNCERTAINTY ON A GLOBAL SCALEACCORDING TO THE INTERNATIONAL CHAMBER OF SHIPPING2016 has opened with an unprecedented level of uncertainty facing international shippingu PETER HINCHLIFFE, SECRETARY GENERAL OF THE INTERNATIONAL CHAMBER OF SHIPPINGThe commercial uncertainty imposed by global market conditions is set against a background of uncertainty and even confusion on the regulatory front. The issues are well known, but not so widely understood is the compound complexity created by undetermined entry into force dates, lack of knowledge, and availability, of compliant equipment, and regional andnational variations in both regulation and enforcement, or the underlying systemic causes.The IMO Ballast Water Convention is teetering on the edge of entry into force but doubts over tonnage gures held by IMO has added a new level of uncertainty about when the Convention will be legally enforceable. Now with probably less than 12 months to enforcement, companies are faced with the problem of sourcing equipment and dry dock facilities to achieve compliance in what will become a scramble for resources. It is no good saying that the industry has had 12 years to prepare when considerable doubt still surrounds the credibility of equipment to treat ballast water to the required standard and the IMO is still working up new Type Approval criteria.It is worse still for owners trading to the USA. The unilateral regulation, the lack ofany type approved equipment and the recent rejection of UV technology makes decisions on long term compliance in US waters impossible.Shipping has coped well with the rst phase of MARPOL Annex VI – the requirement for low sulphur fuel in ECA areas – but is now planning for implementation of the global low sulphur cap in 2020. IMO should be encouraged to con rm that the measure will take effect in 2020. A delay to 2025 (as allowed by the Convention) will only serve to prolong market uncertainty and the needlessly slow delivery of compliant fuel and the development of abatement equipment.The outcome of the UNFCCC COP 21 meeting has proved neither a success nor a failure for international transport but the Paris agreement has sent out some political messages that will become part of theIMO debate this year. It is likely that the IMO will make signi cant progress on the MRV data collection system and it should do so in order to counter complex and inef cient unilateral developments in Europe. In the medium term, IMO has the capacity and the will to develop further CO2 reduction measures and is likely to do so; but what form thesemaytakecannotyetbe predicted.The focus of 2016 for shipping industry representatives should be to streamline the IMO regulatory process so that never again will regulation enter into force before the required equipment or resources can be delivered. Regulation, which is welcomed by the industry, must be developed with the aim of giving clarity of requirements, and especially dates, to those charged with both implementation and enforcement.REGULATION AND THE CRUISE INDUSTRYThe cruise industry is dynamic and continues to be very successful as a wide range of new guests discover the value of cruise vacations. The maritime component is absolutely fundamental to our sector, including the policy areas of safety, the environment, and security.Cruise Lines InternationalAssociation (CLIA) and itsMembers strive to operate tothe highest standards, whetherself-imposed or regulatory,each and every day. One ofthe greatest challenges isconsistency in development bewell-informedbyconstructive and implementation ofandthoughtfulinputfromthe regulatory standards. Cruising regulated community. In thisOur entire maritime community would probably have been better served in the important subjects of Ballast Water Management, MARPOL Annex IV Special Areas, and Air Emissions if all IMO Member States were more engaged with the sectors they regulate. These are complex and very important issues affecting our sector. The Bahamas has consistently served the maritime community well by taking the time to understand not only the challenges we all face, but the range of solutions available to address them.IMO to be genuinely effective at creating solutions to address the important policy interests of the entire maritime community. Although the Member States ultimatelymakethekeydecisions atIMO,thosedecisionscanonlyu BUD DARRSENIOR VICE PRESIDENT, TECHNICAL & REGULATORY AFFAIRS, CLIAis a truly global industry, with approximately 300 oceangoing ships calling on over 1,000 ports, and it must be regulated in a global manner. IMO is the vehicle to best achieve that.Member States and International Organisations must work collaboratively atthe agregard,thecruiseindustrygreatly values the effort BMA makes to understand the cruise sector. Cruise ships are a very specialised ship type, with the most precious of cargoes. Only through genuine understanding of the issues can the best solutions be found for the myriad of challenges we all face.3