2. Lecture outline
• International shipping policies:
– The key challenge: Regulating a globalised
industry
– International regulations and agreements
– International co-operation
• Key players
– Ship-owners
– Port states
– Flag states
– Classification societies
3. The development of a globalised
shipping industry
• Shipping has evolved from being an
international industry to the first truly global
industry
– Before 1920s: National industries in an
international market
– After WW2: Mobile means of production, open
registries and market liberalisation
– Gradually globalization of technologies, capital
and labour
– 1970/80s: Shipping the first globalised industry
4. Open registries: A key necessary
condition for a globalised industry
• Characteristics of open registries:
– No nationality requirements on crewing
– No/low tax business environment
– Liberal company legislation
– Many without national shipowners
• E.g. Panama, Liberia, Bahamas ...
• Creating a global capital and labour market in
shipping
• Facilitating the development of a globalised
industry
5. National regulations not sufficient
• National or regional regulations may be both
ineffective and inefficient:
– May be evaded
– Different national regulations cause inefficiencies
and competitive distortions
• Global standards necessary to avoid a “race to
the bottom”
• A globalised industry requires global
regulations
6. Regulatory framework and institutions
• Market access:
– WTO (1995)
– National
– UNCTAD/OECD
• Safety and environment:
– IMO (1948)
• Working conditions and social standards:
– ILO (1919)
• Competition policy:
– National / Regional (EU)
– UNCTAD / OECD
7. International Maritime Organization
(IMO)
• Established in 1948
• Secretariat in London
• 163 member states
• Mission: ”Safer
shipping and cleaner
oceans”
• Establishes minimum
standards for ship
– construction, and
– operation
8. How the IMO works
• Proposal is assigned to a committee or a sub-
committe
• Adopted by a special conference
• Conventions typically enter into force on ratification
by 15 countries representing at least 50% of world
tonnage
• Lengthy process to adopt, amend and ratify
conventions. Some may be amended by simplified
procedures
• Conflict between states with strong environmental
safety concerns and developing/open registry states
9. Regional vs. Global regulations
The case of doble hulling
• Exxon Valdez grounding in Alaska, 1989
– Oil spill of 37 000 tons crude oil
– Triggered the US Oil Pollution Act (OPA 90)
• Double hull requirement for new oil tankers
• Phasing out existing single hull tankers by 2015
– MARPOL Annex I amendments
• Erika, France 1999
– EU pressure for accelerated phasing out of single hull tankers
• MARPOL Annex I amended April 2001
• Prestige, November 2002
– Unilateral EU-regulation (Regulation (EC) No 417/2002) –
(Cat 1: 2007, Cat 2 and 3: 2015)
– MARPOL Annex I amended December 2003
(Cat 1: 2005, Cat 2 and 3: 2005-2010)
10. The challenge of enforcement
• To be sustainable global standards must
– Meet the legitimate requirements of
• Shippers
• Shipowners
• Environmental interests
• Consumer interests
• The general public
– Be credibly enforced by
• Flag states
• Port states
• Classification societies
11. International Labour Organization
(ILO)
• Established in 1919, UN:
1946
• Secretariat in Geneva
• General conference once a
year
• Conventions on work
conditions and labour
standards
• Maritime Conference
every 10 years
• Adopted 32 maritime
conventions and 25
recommendations
12. International Labour Organisation
• Philadelphia Declaration 1944
– FUNDAMENTAL PRINCIPLES OF ILO
a. labour is not a commodity
b. freedom of expression and association are essential
to sustain progress
c. poverty anywhere constitutes a danger to prosperity
everywhere
d. the war against want requires to be carried on with
unrelenting vigour within each nation, and by
continuous and concerted international effort in
which the representative of workers and employers,
enjoying equal status with those of governments,
join with them in free discussion and democratic
decision with a view to the promotion of the
common welfare
13. ILO Legal Instruments
• Two types:
– International Convention
– Recommendations
• Each member of ILO has 18 months to bring the
Convention before the national authority/authorities for the
enactment of national legislation or other actions
• Members have to inform the Director General (DG) of ILO
of the measures taken
• Members also have to communicate the formal ratification
of the Convention to the DG
14. Convention and Recommendation
• Convention
– Requires ratifications from Members to make effective the
provisions of such convention
– Once ratified requires reporting on the status of
implementation
– Requires explanation from Members for non-ratification
• Recommendation:
– Does not require ratification from Members
– No further obligations from Members
15. Article 19.3, ILO Constitution
• “In framing any Convention or
Recommendation of general application the
Conference shall have due regard to those
countries in which climatic conditions, the
imperfect development of industrial
organization, or other special circumstances
make the industrial conditions substantially
different….”
17. Existing ILO Instruments
• Hours of Work Recommendation, 1920, No. 7
• Minimum Age Convention, 1959, No. 112 (29 of which 20 have been
denounced)
– Does not apply to fishing in ports, harbours, estuaries of rivers
• Medical Examination Convention, 1959, No. 113 (29)
– Flexible based on national competent authority
• Article of Agreement Convention, 1959, No. 114 (22)
– Flexible based on national competent authority
• Competency Certificates Convention, 1966, No. 125 (10)
– Does not apply to vessels below 25 tons and 24.4 metres
• Accommodation of Crews (Fishermen) Convention, 1966, No. 126 (22)
– Does not apply to vessels below 25 tons and 24.4 metres
• Vocational Training (Fishermen) Recommendation, 1966, No. 126
18. Minimum Standards in Merchant Ships, 1976
(No 147)
• For ocean going ships
• Seagoing ships determine by national legislature that deal
with:
-Safety , competency, hours of work, Manning and social security
- Shipboard condition of employment
- Procedure – employment of seamen & investigation of
complaints & reporting procedures
- Member states to verify compliance with ratified convention
by i.e inspection
- Official inquiry to be on serious marine casualty & loss of life
at sea
- Ship not unnecessarily detained
19. Minimum Age for Employment 1921(No 15)
• Not to employ person under age of 16yr
• Ship master to keep list and DOB of person
under 16
Minimum Age for Employment 1973(No 138)
• National policy to abolish child labor
• Member to specify minimum age <15 yr
• Register of names under 18yr of age to be kept
by the employer
20. Minimum requirement for masters and
officers 1936 (No 53)
• Master = person in command of the vessel
• Navigation officer in charge of watch- person actually in charge of
navigation and maneuvering of a vessel , other than a pilot
• Chief engineer- person responsible for mechanical propulsion of a vessel
• Engineer officer in charge of watch= person who is for a particular time in
charge of vessel engine.
• Person to hold appropriate COC
• Condition for granting CON
• national legislature prescribe = minimum age & minimum period of
professional experience of candidates for each grade of COC
• National legislation to prescribe penalty for cases of non compliance &
forge documents
21. Minimum Wage, Hour of work,
Manning
• Minimum wage rate for able seamen , normal hour for officer & rating at
sea, in port & on day of arrival/ departure ports
• Collective agreement & national legislature for compensation for overtime
worked in excess of normal hours
• For the following no overtime:
• Urgent work for safety of vessel , cargo & person
• Work for assisting person or vessel in distress
• Emergency drills
• Work for customs, quarantine or health requirements
• Normal relieving of watch
• No person under the age of 16 yr to work at night
• Ship sufficiently manned to : ensure safety of life at sea
• Giving effects to provision regarding hours f work
• Preventing excessive overtime to crew
• Machinery for removal of complaints & disputes
22. Prevention of occupation accident to
seafarers 1970(No 134)
• Obligation of national authority to
