British Shipping The Chamber of Shipping Annual Review 2002
The Chamber of Shipping Supporting British Shipping for 125 years The Chamber of Shipping is the trade association for British shipowners and shipmanagers working to promote and protect the interests of its members both nationally and internationally. With 120 members and associate members, the Chamber represents over 605 merchant ships of 11.4 million gross tonnes.
The Chamber works with Government, Parliament, international organisations, unions and the general public on behalf of the many different commercial sectors in the shipping industry including deep-sea bulk, short-sea bulk, containers, ferry, cruise, offshore support and specialised operators.
Contents 2 4 6 10 12 16 20 22 26 32
President’s Foreword Sea Vision UK Shipping Policy Maritime Security Safety and the Environment Employment and Training Merchant Navy Training Board Legal and Documentary The Chamber Supporting British Shipping for 125 years
“The most challenging priority is the dialogue on how to enhance employment prospects for British seafarers.�
The President The shipping industry has faced significant issues over the last year. At the time of writing, considerable uncertainty still lies ahead for shipping, as for all of society, following the conflict in Iraq. The full implications for trade and possible further terrorist activity remain to be seen. Security was already high on national and international agendas in response to the tragedy of 11 September 2001. And the pollution from the Prestige along the Spanish coastline has brought new calls for action affecting tanker operations, which must be kept in perspective. Three main Chamber priorities stand out. First we must continue to build on the success of the Government’s maritime policy, with the tonnage tax and the reinvigorated Maritime and Coastguard Agency. The continuing increase in the size of the UK-based and UK-registered fleets is much welcomed. But, if it is to be sustained, the Government must complete the policy it has begun, by addressing
the remaining competitive factors and anomalies which still discourage the employment of British seafarers. It must include in the tonnage tax the excluded sectors which are traditional employers of British officers and ratings. A second – and perhaps the most challenging – priority is the practical dialogue now underway with all relevant parties on how to enhance employment prospects for British seafarers. This is a matter close to my heart. But we have to face up to it openly and squarely. It will require a review of all relevant issues relating to recruitment, training, employment costs, and companies’ commitment to employing British seafarers, particularly during the difficult junior-officer years. This needs to be pursued urgently and with long-term vision. Our third priority is to continue to counter the invisibility and negative publicity which tends to attach to our industry. Improving the image and profile of shipping and the maritime sector as a
whole is at the heart of the Sea Vision UK initiative. This Chamber-led campaign aims to raise public awareness of the importance and value of the sea and all related maritime activities. Launched in January 2003, it is now coming of age and is backed by all elements of the UK’s diverse maritime sector, which is the largest in Europe. It is our responsibility to communicate – particularly to young people – the size and value of our maritime sector, which has enormous opportunities.
the best of luck for the future. I am pleased that it has been possible to appoint his successor internally. Finally, I thank the staff of the Chamber for their wide-ranging and solid support and wish them continuing success under their new Director-General, Mark Brownrigg.
I am pleased that our industry has recently reaffirmed its confidence in the Chamber and the professional support that its secretariat provides for members. Unusually, this year has been split between two presidents and two directors-general. I pay tribute to the commitment and vision of my predecessor, Richard Paniguian. This year also saw the retirement of Sir Christopher Morgan after five successful years of service to the Chamber and its members. We all wish him
Robert Woods
“It is our responsibility to communicate – particularly to young people – the size and value of our maritime sector.” 3
Sea Vision UK Promoting our maritime future From shipping to sub-sea technology; manufacturing to education; the Royal Navy to commercial fishing; ports to aquaculture; maritime, legal and financial services to leisure – Sea Vision aims to revitalise interest in the sea and the whole maritime sector. Sea Vision is an exciting national and regional initiative borne from the realisation that, although they live on an island, people in the UK know little about the role of the sea in our lives – be it trade, leisure, security or ecology.
Establishing the regional co-ordinating committees across the nine English regions and the devolved nations of Scotland, Wales and Northern Ireland will continue to be the main focus for 2003 – 04. A generous donation from Lloyds Register has enabled the initiative to employ a development manager, based at the Chamber, to support this activity.
Led by the Chamber and officially launched in January 2003 at the London Boat Show, over 90 organisations have joined the campaign. Together they aim to raise the profile of the maritime sector with the general public and encourage young people to consider a career involving the sea.
During 2002, Sea Vision UK published maritime sector statistics and created its own website www.seavisionuk.org. Sea Vision partners came together for the first time to create a ‘maritime area’ within the highly successful ‘Skill City’ event in Manchester. A maritime careers supplement was also produced by Sea Vision UK as part of ‘Which Course’ magazine published by the Independent Newspaper Group. See page 21 for more details.
A national structure has been set up under a national core group (comprising senior representatives of all sides of the sector) and supported by specialist expert committees. But Sea Vision’s true success will come through work at local level.
Sea Vision partners will come together again in May 2003 at the International Festival of the Sea in Edinburgh. Co-ordinated by the Chamber, Sea Vision will link together many aspects of the festival as well as promoting the whole sector in
Sea Vision UK core messages Seas, oceans and inland waterways are of huge importance to the world in terms of resources, environment, conservation, trade and industry, marine sciences and leisure activity.
Maritime activities are highly relevant to today’s society and underpin all trade and prosperity facilitating the safe and reliable movement at low cost of all foodstuffs, consumer goods and raw materials.
The British maritime sector is high-tech. It makes a major contribution to the UK’s national economy and is the largest maritime cluster in Europe.
Varied and challenging career opportunities are available within the maritime sector with specialist and modern transferable skills.
a dedicated Sea Vision zone. And in September 2003, Sea Vision is organising an Education and Careers Day at the Seatrade London International Convention. Around 500 young people will have the opportunity to tour different ships and listen to a variety of speakers on the opportunities in the maritime sector.
“Over 90 organisations have joined the campaign from across the entire sector.� 5
Shipping Policy Revival of the UK fleet has continued throughout the year as a result of the tonnage tax and the more commercial orientation of the Maritime and Coastguard Agency. The Chamber continues to lobby for the completion of these positive policy changes and to prevent threats to the future of British Shipping.
Tonnage Tax – three years on Since the adoption of the tonnage tax three years ago, 62 shipping groups, representing around 200 companies and operating some 720 vessels, have now entered this tax regime. Aimed to place UK-based companies on an equal footing with their competitors world-wide, tonnage tax has offered companies a chance to be subject to low-level taxation based on the size of the fleet that they operate, rather than on actual profits. This system is increasingly common in shipping, particularly in Europe. Most companies have implemented the arrangements without problems. However, there are two sub-sectors of the industry that are still not able to benefit from this tax: aggregate
carriers and specialist vessels operating on the UK continental shelf. The Chamber has continued to press the European Commission to confirm that aggregate carriers are eligible for inclusion. It also continues to lobby the Treasury to include the full range of merchant vessels operating in the North Sea. Both sub-sectors are important to British Shipping. They not only support the UK mainland register but the training and employment of British seafarers.
Revival of UK fleet continues Since January 2002, the trading fleet operated by UK-based companies under all registers has grown by 2.5% in carrying capacity to 12.3 million deadweight tonnes (dwt). The total number of ships remained around 590. The UK-based fleet contributes significantly to the UK economy in terms of balance of payments and employment. Overseas earnings for 2001 have been maintained at £5.1 billion gross of which the contribution to the balance of payments was £2.5 billion.
The fleet owned and registered in the UK mainland stands at 3.7 million dwt, an increase of 9% in the last year, and 380 ships, up by 3%. The total trading fleet under the UK register stands at 6.7 million dwt, an increase of 56%, and 497 ships, up by 16%.The average age of the fleet continues to fall, and is currently just over 10 years – three years younger than the world fleet average.
Increase in cadet recruitment The effects of the Government policy on employment and training have taken longer to come through. Nevertheless, with the first year’s operation of the training commitment under the tonnage tax, there has been a significant leap in the overall number of officer trainees recruited. The cadet intake in the year to March 2003 increased by 29% to over 620 – the first major rise in 15 years.
Consultation on Corporation Tax
12.0 12.3
14
Total Trading Fleet on UK Register
10 7.8
2
1000
1990 UK Registered
Other Red Ensign
Foreign Registered
6,686
400 300
4,269
3000 2000
2000
0
4000 3,757
2001
5000
2,740
2002
500
6000
2,699
4
3.3
5.0 5.1
6
Thousand Dwt
7000
3.6 4.2 3.7 3.5
8
200 100 0
0
Number 000 Dwt
1998 1999 2000 2001 2002
Total
UK-owned Fleet by Selected Types – End 2002
6000
35
Roll-on/Roll-off 20
Cruise Off-shore Supply 72
1,351
2000
1,120
Container
3000
1000 0 To ta lT re ur ct no Ba C ve la on nc tr r e ibu of t Do Pa ion ym to m es en tic ts Co /Im nt po O ve rib rt ra ut s ll io Co n nt rib ut io n
Oil Tanker
Di
120
4000 £Mn
Bulk Carrier
2,471
5000
139
118
5,135
Shipping and the Economy – 2001
Ports Policy – a focus on users There were few new initiatives in the ports sector last year. Focus remained on the European Commission’s proposal for a directive on port services. Governments, labour unions and trade interests have all responded along predictable lines. The Chamber supports the overall aim of broadening the scope for competition and efficiency in port services.
600
8000
Number
10.5
12
4.0 3.0 3.4 3.7
Similar changes were made in 2001 for other “long-life assets”. At that time shipping was exempted for 10 years, as part of a balanced taxation policy for shipping, ensuring a choice between the conventional tax regime with capital allowances and the new tonnage tax option. That exemption was to be reviewed in 2010. The Chamber is lobbying to ensure that the current options remain and that the review is not brought forward.
16
Mn Dwt
A broad-based consultation on corporation tax has been announced by the Government on the possibility of moving all capital allowance profiles onto a basis closer to accounting practice. This would remove the current, favourable 25% reducing-balance arrangements for ships and move to longer writing-down periods.
15.4
UK-owned Fleet by Registry
British Cadet Recruitment 1999/00 2000/01 2001/02 2002/03
446 481 483 622
7
Although the initial response from the European Parliament was critical and potentially damaging, successive presidencies have progressed it through the Council of Transport Ministers to reach a common position in June. This position retained all the key provisions of importance to port users. An active role was played by the Chamber in advising the Department for Transport during the long series of Council working groups, as well as liaison with the European Community Shipowners’ Association (ECSA) and members of the European Parliament (MEPs). When the proposal returned to the European Parliament in February/March 2003, compromise amendments were proposed between the positions of the Council and the Parliament. However, the plenary voted for a version very close to its earlier response. The directive now goes for final negotiation between the Parliament and Council under the EU’s “co-decision” arrangements. The Chamber will continue to ensure that shipowners’ interests are well to the fore.
Pilotage – supporting members’ interests The Chamber’s work rarely brings it into conflict with port authorities. In most cases, effective consultative arrangements exist, together with procedures for assessing and responding to navigational risks, and these produce a reliable
British shipping is one of the largest earners in the services sector – ahead of telecommunications, film and television and computer services.
service at reasonable cost. This overall approach is underpinned by the Pilotage Act and now also the Port Marine Safety Code. However, the Chamber vigorously opposed the application by one major UK port authority for a ministerial order which would have denied properly qualified masters of certain ships the possibility of obtaining Pilotage Exemption Certificates. The Chamber’s action was successful and in December the authority withdrew its application.
Light Dues – managing efficiencies Light dues are charges applied for the use of navigational aids (such as lighthouses and buoys) around the UK coast. To date, this cost has been carried mainly by merchant shipping trading to UK ports on a charge-per-call basis. For larger vessels, the charge can be as high as £16,000 per port call. As these dues are not charged by most of our European neighbours, they can be a significant disincentive to making direct calls at UK ports. The problem is exacerbated by the cost of the dues falling disproportionately on shipping companies - even though many ships carry equipment that almost eliminates reliance on navigational aids. In contrast, most other users (including leisure craft, fishing vessels and ships in transit) do not pay at all or pay nowhere near their due share of the costs.
Attempts to persuade the Government to absorb these costs centrally (like most other countries) have failed. Chamber efforts have therefore focused on reducing the charges in real terms and insisting on cost cutting and efficiencies. Following pressure from the Chamber and the port sector, the Government undertook a further consultation on the light dues system which closed in mid-2002. Disappointingly, the results took until March 2003 to emerge and were inconclusive; but they did include a commitment to reconsider the position of nonpayers and the effective subsidy of navigation aids in the Irish Republic. The General Lighthouse Authorities have been considering their future depot requirements and any scope for rationalisation. A number of closures and consolidations have been announced – investment decisions during 2003 are expected to continue this trend. It is hoped that new consultancy input will soon pave the way to a smaller, more efficient, and better integrated tender fleet that can bring real economies.
on the necessary exchange of information and wishes. A stock-take will take place at the 5th Ministerial Conference in Cancun, September 2003. Shipping is already a liberalised sector and shipping companies will continue to benefit from the dismantling of restrictions in other WTO member and applicant countries. The focus is on shipping services; maritime auxiliary services; access to port services and now also international maritime multi-modal services. The UK has encouraged the European Commission to offer open access to international feeder services and the repositioning of equipment. Negotiations in 2003 will reveal the degree to which different WTO member countries are genuinely committing to the process of liberalisation.
The Act provides for “juxtaposed controls” with other countries. As a first step, UK inbound checkpoints will be relocated from Dover to Calais and placed next to the French outbound booths and vice versa. All passengers will have to clear immigration before boarding their ferry, though they will still have to go through customs police and other controls on disembarkation. This will avoid the difficulties and costs of removing those who are refused entry on arrival in the UK. By contrast, at the Channel Tunnel the full set of frontier controls is juxtaposed, with no checks after the crossing. The Chamber has urged
Government to place ferry operators on an equal footing and free their customers too from the risk of further delay. It will be essential to ensure that neighbouring routes are neither disadvantaged nor faced with displaced traffic. Fears that overseas-based terrorists may abuse the asylum system to enter the UK are adding weight to calls for more rigorous frontier controls. However, the current strategy of placing ever greater obligations on carriers is evidently failing to deter would-be illegal entrants. Punitive action is required against those who stow away or dupe carriers with forged documents.
The Chamber does not believe that concerns relating to domestic shipping should be an obstacle to reaching a wider global agreement on maritime services. In November, it wrote to the US trade representative promoting this view and encouraged the USA to participate actively in the maritime negotiations.
Liberalising maritime services
Streamlining immigration controls
Negotiations at the World Trade Organisation (WTO) continued with the objective of liberalising “trade in services”. By the end of the year, 25 developing and developed countries had embarked
The Nationality, Immigration and Asylum Act 2002 was concerned mostly with asylum applications and the Government’s strategy to push immigration controls away from UK frontiers to countries of origin.
“62 company groups, operating some 720 vessels, have now entered the tonnage tax regime.” 9
Maritime Security With the introduction of the new International Ship and Port Security Code, formal security procedures have to be developed for all ships and ports, with designated ship, company and port security officers and security plans documenting how ships, companies and ports will respond to various levels of threat. Mandatory fitting of automatic identification systems on ships has also been brought forward to December 2004.
At the time of writing, hostilities in Iraq dominate the headlines. However, unlike the Iran/Iraq “tanker war” during the late 1980s when ships were targets and the first Gulf war in 1991 when the invasion of Kuwait extended the geographical area of threat, the confinement of the war to the territory of Iraq alone means that there is little likelihood of significant impact on merchant shipping.
Maritime security tops the agenda Following the terrorist attacks in the USA on 11 September 2001, maritime security remains a high priority for many regulatory bodies. Proposals submitted to the International Maritime Organisation (IMO) at the start of 2002 have now been developed into a package of new requirements in the Safety of Life at Sea (SOLAS) Convention.
How the UK and European legislation implementing the new rules will treat ships in domestic trades and other ships not covered by the convention remains to be seen. SOLAS allows international ferry services to be covered by alternative arrangements agreed by the countries they connect. The Chamber will work to ensure that the historically lower risk profile of UK and nearContinental waters will be taken into account. The Chamber has worked through Government and international associations to bring balance to the deliberations. Ships have faced various security threats for many years and precautions against them are well established. But, for many ships, existing security procedures will have to be rewritten to fit the new requirements, or hitherto
“Formal security procedures have to be developed for all ships and ports.”
unwritten security practices codified. In recent months new and unwieldy restrictions have been introduced by the USA regarding the issue of visas to seafarers on ships likely to call in US ports. The Chamber hopes that the new standard format for seafarers’ identity documents being finalised at the International Labour Organisation (ILO) in June 2003 will once again enable non-US seafarers to enjoy shore leave without obtaining visas beforehand.
Warlike Operations Area Committee Since 11 September 2001, and particularly the attack on the tanker Limburg in October off Yemen by a small boat packed with explosives, all parties have been concerned about possible threats to shipping. The Chamber and the maritime unions address these issues at the Warlike Operations Area Committee (WOAC). Established to consider situations where hostile areas exist or special hazards to merchant shipping may be present, the committee also recommends whether clauses in collective agreements dealing with service in war zones and warlike areas should be invoked.
containers from ships’ holds for physical examination would be hugely disruptive. The Chamber is keen that the experience with X-ray scanners, where poor targeting of transhipments led shippers to re-route containers away from UK ports and carriers, should not be repeated.
for more personal information than can be collected without causing serious delays. The only way of collecting such information now would be on individual landing cards with several box-loads per sailing. Data requirements need to reflect the art of the possible and be reduced accordingly.
commitment that immigration, customs and police services will share information and not make multiple demands on carriers. Co-ordination between the border agencies should deliver more secure control and more efficient handling of passengers and freight.
Container security fears
Shipping lines must now provide detailed information on US-bound containers 24 hours before loading. This has required earlier closing of ships and better information from shippers.
Work on developing security controls on containers continues in the World Customs Organisation (WCO). The focus is on advance cargo information to enable customs to identify high-risk shipments and all necessary data and sources (exporter, forwarder, carrier or importer) to deal with the risk.
These controls were imposed unilaterally, with little meaningful consultation or regard to efficient practice. The Chamber has argued strongly that security controls should not be exempt from the agreed multilateral regulatory framework for international trade.
In regard to freight, internal EU frontiers were dismantled over a decade ago and the basic incompatibility between the Act’s requirement for frontier declarations and the right of free movement of goods within the EU needs to be addressed. The Chamber has welcomed a Home Office
As more of the security measures take effect, greater co-ordination becomes increasingly important (as does the need for demonstrable security benefits where inconvenience is caused) if co-operation from both carriers and passengers is to be encouraged.
New terms of reference were adopted in 2002 agreeing to regular rather than ad hoc meetings. The remit of the committee was widened to consider the possible dangers to ships and seafarers arising from terrorism, piracy and armed robbery in addition to warlike activity. Following the outbreak of the war in Iraq, agreement was reached in March on a war risk area broadly equivalent to Iraqi territorial waters.
The USA has meanwhile, in its own Container Security Initiative (CSI), reached agreements with its main trading partners allowing American customs officers to be based in overseas ports, to pre-screen US-bound containers before loading.The UK agreement was signed in December and an American team is likely to be in place in Felixstowe during the first half of 2003. Their remit will extend to all containers loaded at UK ports for the USA and will also cover transhipments and containers that remain on board. Information on the latter is less readily available and retrieving
UK Terrorism Act Working with the Home Office throughout 2002, the Chamber has sought to fine-tune the practical impact of the UK Terrorism Act 2000, which made carriers alone responsible for providing cargo information under all circumstances. While the Act is now broadly compatible with existing controls and systems for deep-sea container operators, problems remain for passenger and freight services. Ferry passengers face difficulties with demands
Aid for the Iraqi people is unloaded from RFA Sir Galahad. The Royal Fleet Auxiliary is the largest employer of British officers and ratings – the armed forces rely on merchant ships to transport service men and women, together with military equipment, around the world.
11
Safety and the Environment
Safety The improvement of technical legislation and enhancement of marine safety standards are a process of constant evolution at the International Maritime Organisation.
Bulk carriers – hopes rise with new regulations Since the loss of bulk carrier MV Derbyshire in 1982, the UK has led the search to find out why she sank and has introduced proposals for new regulations to reduce the risks of such an accident happening again. The IMO is now ready to adopt detailed changes to the Safety of Life at Sea (SOLAS) Convention that will cover structural improvements and the installation of early warning equipment on hold flooding together with guidance to the master and crew on what to do if the hold does flood. A more stringent inspection regime has also been implemented.
Fast rescue boats – call for training Following the inquiry into the sinking of the Estonia in 1994, the provision of fast rescue boats on roll-on/roll-off passenger vessels was agreed. Although seemingly a good idea, it does not take into account the difficulty in launching these boats from great heights, as in the
case of the super ferries, and operating and recovering them in rough weather. Acting on concerns from operators, and supported by the Chamber, the Maritime and Coastguard Agency (MCA) has taken these concerns to the IMO. It is hoped that fresh guidance can be developed which will avoid putting crews in serious danger and alleviate any concerns which may lead to a reluctance to deploy them.
Large passenger ships – new regulations unnecessary? The Secretary General of IMO has expressed concern over the safety of “large” passenger ships though what he meant by “large” has still to be clarified. The industry was, and still remains, unconvinced of the need to revisit the SOLAS regulations. A substantial percentage of the world’s fleet of cruise ships – the class of vessel referred to – are British-owned. Generally the operation of these ships is well in excess of the SOLAS requirements. UK shipowners are concerned, as are a number of governments, that new regulations will be created without any demonstrable advantage.
Offshore vessels – new guidelines for best practice Offshore rates in the North Sea remained soft
for much of 2002 and despite a brief flurry of activity in October, the upturn in prices is not expected to remain constant through 2003. During the challenging year ahead, the Chamber will continue to support its members in meeting the demands of an increasingly competitive working environment.
regulatory bodies both on the UK continental shelf and worldwide. A target for 2003 is to ensure worldwide acceptance of these guidelines.
Members of the Chamber’s Offshore Support Vessels Issues Committee have played an active and wide-ranging role in the Marine Safety Forum – a cross-industry body encompassing all the key players involved in North Sea oil exploration and production. They have committed to the STEP Change in Safety Initiative, which is working towards the goal that: “in 2010, the UK is the safest place to work in the world wide oil and gas industry”. The word STEP has been adopted to signify the need for a quantum leap in safety. This commitment to safety has been matched by the Chamber itself applying to STEP to become more involved in its work. Last year saw the publication of the latest version of ‘Guidelines on the Safe Management and Operation of Offshore Support Vessels’ jointly by the UK Offshore Operators’ Association and the Chamber of Shipping. Hailed as a “paragon of best practice”, these guidelines are now in widespread use by member companies and
“Standards should be regulated on an international rather than a regional basis.” 13
Environment Chamber members have always had a deep concern for the environment and were among the first to develop an environmental code in the early 1990s. Last year saw the tragic sinking of the Prestige, causing an oil spill that polluted a large area of Spanish coastline (following inappropriate government intervention ordering her back out to sea). Coming three years after the similar Erika incident, environmental issues were already high on the international agenda. Annex I of the International Maritime Organisation Convention for the Prevention of Pollution from Ships (MARPOL) had been revised after the loss of the Erika to reflect these concerns and deadlines for withdrawing single-hull tankers were brought forward. No findings to date from the loss of the Prestige appear to raise any new factors.
Europe moves on oil pollution In view of the serious social, environmental and economic consequences of the loss of the Prestige, international pressure has led to a review of many aspects of the safety and construction of oil tankers, losses of oil and related pollution. The review includes civil protection, maritime safety and related international agreements. The Chamber has
welcomed the European Parliament’s recent public hearing on the subject, but is concerned that further safety measures being proposed (which are detailed below) have not been justified either economically or environmentally. A range of measures being developed in Europe and likely to be taken to IMO include: Single-hull tankers While the Chamber understands the reasoning behind the proposals to accelerate further the banning of single-hull tankers, they must be the subject of an international agreement. This is essential to avoid other unilateral actions by non-EU states and to ensure that they are both fully justified and compatible. Places of refuge The Castor, Erika and Prestige incidents all illustrate the need to ensure that ‘places of refuge’ are available in EU waters if needed. This, combined with clear-cut emergency response plans and procedures for action when a ship is in distress, should minimise the harm resulting from any such accidents. Financial compensation needs to be available for designated places that suffer as a result of assisting a vessel.
Port State Control Recent amendments to the Port State Control (PSC) directive are designed to enable existing controls to be strengthened. The commitment by member states to ensure sufficient numbers of trained inspectors to inspect at least 25% of ships is vital. Prompt action should be taken to ensure that all member states without exception take action to comply with the directive. Flag state standards Member states should support the early development in IMO of a flag state code of practice and model audit scheme to deal with substandard registers in certain parts of the world.
Protection from air pollution for sensitive ecosystems With the required number of signatories expected to be reached in 2003, Annex VI to the MARPOL Convention should come into force in 2004. This will regulate the standards of emissions from marine engines installed after 1 January 2000 and the sulphur content of marine fuels, to reduce damage to sensitive ecosystems. The Chamber, European Community Shipowners’ Association (ECSA) and International Chamber of Shipping (ICS) continue to urge governments to sign up to this Annex in order to avoid the introduction of regional standards which could adversely affect shipping.
The multi-lateral principle Where there is a need for standards to be developed on such matters as safety, the environment, labour, liability and market access, the standards must be practical, be regulated through rules agreed on an international basis, and apply to all ships under all flags. Unilateral regional or national requirements tend to undermine the strength and status of instruments
agreed in international standard-setting organisations (such as IMO) and, as a result, may harm the overall position on safety, the environment and trade. The corollary is that all responsible states have a duty to participate actively in the international standard-setting process and to apply and enforce generally agreed standards.
European Maritime Safety Agency This new organisation (EMSA) has an important role in ensuring effective and consistent implementation of maritime safety and environmental rules across EU states – not least in relation to Port State Control. It is important, though, not to take away competence from national authorities that have direct control over the actual inspection resource.
“The Castor, Erika and Prestige incidents all illustrate the need to ensure that ‘places of refuge’ are available.”
15
Employment and Training Against the positive backdrop of an expanding UK fleet and cadet intake, dialogue continues with all relevant parties on the overall issue of future employment prospects for British seafarers.
Improving employment prospects for British seafarers The Chamber has continued to press Government to "finish the job" started with the ‘Charting a New Course’ white paper and tonnage tax. Three urgent issues are: the anomaly on income tax treatment which disadvantages both seafarers and operators of ships involved in coastal trades; the promised extension of crew repatriation assistance which has not yet materialised; and the need to reduce the cost of seafarer training in this country which is now twice as expensive as our major European competitors. The industry is now looking at ways to enhance the skills and value of British officers and ratings. In this context, it is all the more essential to achieve the right employment-cost environment in Britain – particularly during the difficult years when newlyqualified junior officers are expanding their knowledge and experience in readiness for senior positions.
Research on the flow-through of qualified merchant navy officers into jobs in other parts of the maritime sector has again been sponsored by the Chamber, Department for Transport and the Marine Society. There is a need to distinguish though between the skills demand of the maritime sector as a whole at sea and ashore and the supply that one part of the sector – merchant shipping – can be expected to assure on its own in practice.
Race Relations Act Government proposals, in part to implement an EU directive on equal treatment and non-discrimination, threaten effectively to wipe out the UK Ship Register. Over 400 ships could be forced to flag out, reversing the success of the Government’s maritime policy. This is the most serious threat to the UK mainland flag for many years and appears to be an unintended consequence. The consultation proposes to remove an exemption under the Race Relations Act, which has for 30 years allowed foreign seafarers recruited abroad onto UK-registered ships to be paid at rates which are favourable compared to levels in the country where they live and maintain
their families. For example, the wages of foreign officers may be on a par with high-earning professionals in their countries such as doctors and judges. The Chamber has argued that the position of these seafarers is totally different from the other instances of “discrimination” targeted in the EU directive and in the new legislation. All seafarers living in Britain are fully covered by the existing Act – the exemption allows the treatment of the seafarers in question to be determined according to their country of domicile (as is the
treatment of other UK resident seafarers). The decision, which is imminent, will have crucial implications for the future of the UK-registered fleet.
Worldwide standard for seafarers’ working time For the first time, the industry has an enforceable international standard for seafarers’ hours of work. The Chamber hopes this will eradicate fatigue amongst seafarers and ensure compliance with acceptable standards throughout the world fleet.
Regulations implementing the European Agreement on Working Time for Seafarers finally came on stream in September. The Government accepted the Chamber’s position that it should regulate minimum hours of rest, thereby permitting flexibility for ship operators. It also softened its line on exceptions to allow these to be approved by a company’s workforce rather than alone by trade unions. With two International Labour Organisation (ILO) instruments – Convention 180 on Seafarers’ Hours of Work and Manning of Ships and the 1996 Protocol to Convention 147 on Minimum Standards – coming into force, port state control inspectors in all ratifying states can now inspect any ship to determine compliance with the provisions on minimum rest hours.
ILO consolidation Work consolidating the body of ILO maritime instruments into a single convention gathered pace during 2002. Preparatory work by a highlevel working group comprising shipowner, union and government representatives, supported by a subgroup of experts, is underway. The Chamber is represented on both groups. The process of consolidating over 30 ILO maritime conventions and more than 20 recommendations represents a major challenge – not least as only a
small proportion have had any significant effect on the industry. Many ILO maritime conventions are out of date; some have attracted only a small number of ratifications; while others covering subjects such as training and certification are now firmly the domain of IMO. It is hoped that a single convention on labour standards will stand alongside IMO conventions such as those on Standards of Training Certification and Watchkeeping (STCW) or on the Prevention of Pollution from Ships (MARPOL), as a universally acknowledged marine standard. Flexibility, enforcement and amendment procedures are other important issues that need consideration. There is strong support for the concept of “substantial equivalence”, introduced in the widely ratified ILO Convention 147, to become a feature of the new convention. All parties agree that it will need to have effective enforcement procedures, combining both flag-state and port-state controls.
Seafarers’ identity documents Seafarers’ identity cards were on the agenda at the IMO Working Group on Maritime Security in February 2002. Noting the existing ILO Convention 108 on Seafarers’ Identity Documents, it was decided that the ILO should revise the convention for adoption at its General Conference in June 2003. See the Security section on page 10 for more detail.
“Seafarer training in this country is now twice as expensive as in our major European competitors.” 17
Extensive consultation was undertaken among ILO member states on the preferred form of any new identity documents and on entitlements of the holder. Identity documents will now be standardised and may include advanced security features such as biometric templates (eg fingerprints or retina recognition). However, use of very technically advanced documents could pose a problem for many of the main labour supply countries which do not have the technology to process large numbers of such documents for their nationals.
New guidelines on equal opportunities Eliminating workplace harassment and bullying together with increasing awareness of equal opportunities and diversity were the principal aims of a joint Chamber/NUMAST project last year. Guidelines for shipping companies have been published providing practical advice on what types of behaviour should be regarded as harassment and bullying; how to identify incidents; the structures and procedures for reporting complaints together with the steps companies should take to encourage non-bullying behaviour. A video has been produced to accompany the guidelines entitled ‘Say No to Harassment, Say No to Bullying’. In addition, an existing CD-ROM based training package has been adapted for use by shipping
companies, taking account of ship board situations and the law as it apples to ships. ‘Understanding Equal Opportunities’ is an interactive package providing a detailed background to equal opportunities issues including self-test and monitoring programmes for use by shipboard and shore-based staff with responsibilities for personnel.
EU developments: Sectoral Dialogue Committee In 1998, the European Commission established the European Sectoral Dialogue Committee for Maritime Transport comprising the European Community Shipowners’ Association (ECSA) and the European Transport Federation (ETF). This Committee enables shipowner associations and maritime trade unions to monitor and exchange views on all relevant industry issues within the scope of the EU and to influence EU policy for the benefit of the sector. Items for discussion are jointly agreed between ECSA and ETF. Currently three working groups are examining the effects on the shipping industry of EU enlargement in 2004 (when up to 10 new members join the EU); occupational health and safety; and a European Commission communication on training and recruitment. The latter is the most controversial since it advocates a draft directive that would restrict employment on intra-EU passenger vessels to nationals of
member states – a measure firmly opposed by the Chamber and ECSA. Employers are, however, prepared to discuss broader issues which could lead to more favourable long-term employment opportunities for EU national seafarers.
Alcohol misuse at sea The National Maritime Occupational Health and Safety Committee comprises the Chamber and the maritime unions and is concerned with the health and safety of seafarers; the promotion and development of relevant measures and the production of recommendations to appropriate bodies.
superseding the 1986 version which formally excluded the shipping industry. The new directive, which contains no such exclusion, sets a limit on daily personal noise exposure – approximately half the level of the 1986 directive. During discussions, the Chamber argued that it would be impossible for many ships to comply without modifications that would be prohibitively expensive.
facilitate compliance. Seagoing vessels will have until 2011 (an additional five years compared to other industries) to comply. Secondly, there is now some flexibility in regard to workplaces and activities where using hearing protection such as ear defenders actually increases the risk to health and safety – for example, on the vehicle deck of a roll-on/roll-off ferry, where they might prevent a seafarer from hearing approaching vehicles.
The Chamber did achieve two important derogations from the directive which should
Over the years, the Committee has issued jointly agreed policy guidelines to shipping companies on alcohol and drug misuse, HIV and AIDS, health and safety, and workplace smoking. During 2002, the Committee focused on alcohol misuse to update the guidelines reflecting many company policies on testing and the Government’s proposals for new laws on alcohol consumption and intoxication at sea. The new guidelines will be published in 2003.
“Physical Agents”: noise and vibration A new EU directive on minimum health and safety requirements regarding risks of exposure to noise and vibration at work was adopted,
“For the first time, the industry has an enforceable international standard for seafarers’ hours of work.” 19
Merchant Navy Training Board Responsibility for the promotion and development of education, training and skills, falls to the industry’s central body, the Merchant Navy Training Board (MNTB).
initiative with shared or overlapping interests in skills and workforce development, such as ports and harbours, sea fishing, and marine manufacturing/equipment supply is also actively under consideration.
Its membership is representative of all those involved in the industry and includes the seafarers’ unions and the Maritime and Coastguard Agency (MCA) as well as the Chamber of Shipping which funds the operations of the Board.
Increase in cadet numbers
Sector Skills Councils – concern to secure funding As plans to replace the former National Training Organisations with fewer but larger Sector Skills Councils (SSCs) continue, it has become clear that the merchant navy does not fit into any of the potential new SSCs. Too small to have its own SSC, the MNTB is in discussion with the Sector Skills Development Agency to ensure that, as a minimum, the industry continues to have access to funding for workforce priorities. These priorities include the development and maintenance of national occupational standards as the basis for seafaring qualifications aligned to statutory certificates of competency. The feasibility of creating a ‘Maritime Skills Alliance’, bringing together those partners in the Sea Vision
In the year to March 2003, the number of cadets signing up for training increased by 29% – a sign that tonnage tax training commitments are having an impact on recruitment. Achieving this growth has not been easy though, as the supply of GCSE school leavers with the right aptitude and qualifications for training as a cadet, is virtually exhausted. In these circumstances, maintaining standards of those entering the industry is paramount to safeguard the quality and expertise of British seafarers and technical managers in the future. A key concern for the MNTB Board is to attract into the industry more and better qualified people. In this context, there is a far greater emphasis today on entry routes leading to degree-level qualifications.
Careers promotion Promotion of careers at sea continues to be a major role and centres on: attendance at national careers fairs, exhibitions and college open days
distribution of relevant materials to careers advisers, careers teachers, schools, colleges and young people themselves co-ordination, support and development of the regional British Shipping Careers Groups circulation of a bi-monthly email newsletter – ‘Careers Update’ – to shipping companies, colleges, unions, Government and a wide range of other organisations in a position to help spread the message
Skill City As an active member of Sea Vision UK and
“Maintaining standards for those entering the industry is paramount.”
committed to the belief that promoting the wider maritime industry through broadly-based regional effort will enhance the effectiveness of its own careers work, the MNTB has taken a leading role within the Education, Training and Careers Advisory Committee. An early example of this partnership in action was Sea Vision UK’s participation at the high profile Skill City at Salford Quays in November. Attended by over 80,000 young people, parents, advisers and others involved in careers promotion, the event aimed to showcase the skills required
within different industries and occupations. The MNTB co-ordinated the maritime area which involved the MCA, Royal Navy, maritime colleges, professional bodies, universities and shipping companies. ‘Have-a-go’ activities included a full mission bridge simulator (kindly provided by Transas Marine), ship models, remote-controlled boats and safety equipment.
Sea Vision UK goes to print With the support of 20 shipping companies and other bodies involved in Sea Vision UK, the MNTB was able to commission a maritime supplement to the December 2002 issue of ‘Which Course’ magazine, published by the Independent Newspaper Group. Distributed to all secondary schools, sixth form and further education colleges and careers services, ‘Maritime’ included articles about career opportunities across the marine sector. Case studies on various people currently working in engineering, boat-building, surveying and education as well as the merchant navy appeared throughout the magazine. Skill City and the maritime supplement are examples of how, by pooling resources under the Sea Vision UK brand, the various maritime interests can achieve more in raising their collective profiles and promoting an essentially similar message about career opportunities than through individual campaigns.
Technical matters Key achievements on the technical front include: working with the MCA to: • resolve outstanding issues connected to implementation of the 1995 amendments to the Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW), particularly the requirements for second engineer officer on ships of less than 3,000kW power; • extend coverage of the SMarT (Support for Maritime Training) financial assistance scheme and publish guidelines to enable a wider range of ships to be utilised for SMarT-supported training • review the content of the various STCW short courses establishing multi-entry points and career pathways to suit a wide range of potential new entrants up to and including degree work the signing of a Memorandum of Understanding between the MNTB, the MCA, and COGENT (the industry training organisation for offshore oil and gas exploration) on the mutual recognition of safety-related short courses required for emergency response vessels and supply vessels supporting offshore exploration and production updating the industry training schemes to maintain their efficiency and effectiveness and encourage the sharing of ‘best practice’ amongst all training providers and colleges.
21
Legal and Documentary
Legal, Insurance and Documentary Issues Prestige and the Law of the Sea Hasty reactions by a number of states to exclude certain single-hull tankers from their waters following the Prestige oil spill have severely undermined the concept of freedom of navigation enshrined in international law. They call into question the fundamental principles of the UN Law of the Sea Convention. Both directly and through the International Chamber of Shipping, the Chamber has criticised disregard for these principles for short-term national political purposes, as both narrow-minded and dangerous. If specific measures are considered necessary for the protection of defined areas, the Chamber has argued that these countries should make a case at the International Maritime Organisation (IMO) for an explicit exemption under the Law of the Sea Convention on an agreed basis.
Oil spill liability Oil pollution liability and compensation continue to be an important focus for the Chamber. Although oil spills are rare, the longstanding IMO Civil Liability Convention and the International Oil Pollution Convention Fund exist to provide payments in the aftermath of an incident. From November 2003 payments will be increased. In addition, an
instrument creating further supplementary compensation for voluntary application in states requiring enhanced compensation levels will be put forward for adoption.
governments include an “opt-out” clause for states wishing to exceed the agreed compensation levels.
Providing for multi-modal transportation
To come into force, this protocol needs the support of ten states, which could take up to five years. But the practicality of the protocol remains an open question.
In April, a working group of the UN Commission on International Trade Law (UNCITRAL) began to consider a draft instrument on transport law. A comprehensive document, it aims to bring together and modernise existing provisions,
The need to review the provisions of the Civil Liability Convention is also under consideration. Great care will be needed to ensure that any proposals that emerge are consistent with the underlying objective of ensuring that claimants’ needs can be met without unnecessary delay.
Passenger ship liability – will the new protocol work? A protocol to the 1974 Athens Convention, adopted at a diplomatic conference in November, will increase the level of shipowner liability for passenger death or injury. New financial security provisions were also introduced to meet claims. However, the insurance requirements needed were seen as potentially incompatible with market capacity and traditional arrangements for shipowner liability cover. Perversely, this could result in less cover to meet higher liabilities. While the industry had proposed that the objectives of the protocol could be satisfied by adapting existing arrangements for shipowner liability cover, this was not accepted by the conference. Provisions developed by
“Liability is the key issue – in all sectors.” 23
including shipowner liability and the rights and obligations of shippers in all matters relating to the carriage of goods by sea. It also aims to facilitate e-commerce and harmonise provisions in currently unregulated areas such as the use, transfer and evidentiary value of transport documents. A key issue to the acceptability of the instrument will be the scope of its application. Existing maritime regimes are uni-modal, based only on sea transport. While port-to-port carriage will remain the preferred arrangement for bulk cargoes, the rapid expansion of container traffic calls for the broadening of provisions to reflect door-to-door transport combining land and sea movements. The industry supports the development of an instrument which will offer parties the choice of contracting for multi-modal carriage where the transportation chain includes movement by sea.
Compensation for environmental damage The European Commission is working on a directive to provide a compensation regime for environmental damage, largely directed towards land-based undertakings. The industry has made some progress to secure exclusions for shipping where liability is regulated under internationally agreed provisions. However there is concern that amendments being put forward in the European Parliament risk creating conflicts between the
existing land-based and maritime regimes.
in accordance with contemporary user needs.
Insurance
With the growth of the internet there has been a move away from the use of personal computers or network systems to web-based applications. A new system is under development to meet the new demands and enable users to work on private documents from any machine with access to the internet.
The Chamber contributed to a full review of insurance policy wording undertaken by the London market’s Joint Hull Committee, to update provisions in line with changes in recent years. The review process continues and the Chamber welcomes this continuing dialogue.
Documentary matters The Chamber maintains its active role through BIMCO in the development and revision of trade documentation. New charterparties were issued for deep-sea trades. The ‘Baltime’ time charterparty was updated to reflect contemporary terminology and current provisions without disturbing the traditional balance between owners’ and charterers’ responsibilities. A General Average Absorption Clause was issued to provide shipowners with the option of an insurance mechanism for recovering the costs of small claims or where the involvement of multiple cargo interests would render an adjustment uneconomic. Work continues to develop specialist contracts for the gas and chemical trades. In addition, a continuing review will ensure that stand-alone and specialist provisions in the extensive library of clauses are regularly considered and, as necessary, updated
Competition – container shipping: anti-trust exemptions Published in April, the final version of the Organisation for Economic Co-operation and Development (OECD) secretariat’s controversial report examining liner anti-trust exemptions, reiterated the view that its preferred course would be to remove the existing immunity applying to price-setting agreements in deep-sea container shipping. Despite the secretariat’s attempts to justify the conclusions in terms of competition theory, criteria were taken out of context and used selectively. In particular, the report ignored the fact that in recent years, a number of major trading nations have re-affirmed their national immunity provisions. Nonetheless, the European Commission is using the report as the starting point for a re-evaluation
The average number of large oil spills during the 1990s was less than a third of that during the 1970s.
of the current exemption contained in Council Regulation 4056/86. Consultations are underway with governments and industry and the conclusions are expected in a white paper within the next 18 months.
EU shipping trades to apply the essential features of the decision. It also stressed that the approval related only to the existing legislation, and did not prejudge the longer-term review of immunity arrangements.
Appeals
EU Competition Rules
In February last year, the European Court of First Instance dismissed appeals brought by container companies trading to and from Europe in respect of capacity management, dual rate-setting, inland pricing and immunity from fines for inland ratesetting. Nevertheless fines for inland rate-setting were annulled which may make it harder for retro-active fines to be imposed in other areas. Significantly the Court acknowledged the stabilising effect of liner conferences and the efficiency of inter-modal transport, despite the prohibition on collectively agreed inland rates.
A regulation, which will take effect after the enlargement of the EU in 2004, will change the operational mechanism of the Competition Rules under Articles 81/82. To relieve pressures on the Commission, exemption powers will be devolved to national authorities. The creation of a “network system� will seek to ensure the uniform application of competition law between member states.
Trans-Atlantic trades
However, the central tenet of replacing the longstanding system for notification of prohibited practices and its accompanying immunity from fines, with a self-assessment regime, is likely to create uncertainty.
Approval was finally given in November to the revised Trans-Atlantic Conference Agreement (TACA II) which provides container services between north-west Europe and the USA. Clearance was granted in response to concessions by the TACA II parties and against the competitive conditions of the specific market. While noting that the outcome had only limited relevance to conferences operating in less competitive conditions, the Commission urged all conferences active in
25
The Chamber Chamber members work with staff through the committee structure to deliver a high quality service to the shipping industry.
Legal & Documentary Donald Chard Finance Jeffrey Smith Andrew Pow Susan Gray (Marisec)
President
President
Vice-President
Director-General
Director-General
Up to October 2002
From October 2002
From October 2002
Up to January 2003
From February 2003
Richard Paniguian
Robert Woods
Michael Parker
Vice-Admiral Sir Christopher Morgan KBE
Mark Brownrigg
Technical & Labour Marine & Technical Tony Hall Paul Holman Robert Ashdown Employment & Training Tim Springett
Technical & Labour Edmund Brookes
Shipping Policy David Asprey
Public Relations Jeremy Harrison
Administration Stewart Conacher
Deputy Director-General
Head of Department
Head of Department
Company Secretary
Merchant Navy Training Board (MNTB) Richard Matthew Glenys Jackson Donna Stevens Shipping Policy John Dowden Tim Reardon Gavin Simmonds Public Relations Alison Peet Alexei Player Manuela Sarris (Sea Vision)
The Technical and Labour
The Shipping Policy Department
The Public Relations Department
The Administration Department
Department acts as the interface
is responsible for all aspects of
provides parliamentary affairs, media
is responsible for all the institutional
between members and both national
national and international policy
relations, events management and
aspects of the Chamber and its group
and international regulators on all
including direct and indirect taxation,
publications (including website)
of companies. It oversees personnel,
issues relating to the safe
state aids, defence and security, trade
services. It is responsible for the
the staff pension fund, property
construction and operation of ships,
policy, customs, passenger issues and
development of the Chamber’s
management and lettings, and the
environmental protection, health and
immigration. It maintains relations
communications both with members
conference facilities. The Company
safety, the off-shore sector, labour
with, and covers issues involving, other
and the wider public. The PR team
Secretary also organises the general
law and relations and crewing. It also
national sectors such as shipbuilding
also provides day-to-day management
meetings, Board and Executive
links closely with the Merchant Navy
and manufacturing, ports, and the
of the Sea Vision initiative.
meetings, subscriptions, membership
Training Board.
financial and legal services of Maritime
and the annual dinner.
Administration Personnel Doreen Scott Premises Fred Le Petit Helen Matthews PA & Secretarial Support Terry Cooper (Director-General) Pat Ruthven Michele Todd Marie Borg
London. The department also provides the Chamber’s statistical function.
27
Chamber’s Committees and Panels structure
The Chamber of Shipping Board Ex-officio Members Robert Woods President Michael Parker Vice-President Richard Paniguian Immediate Past President Guy Cheeseman Michael Everard, CBE Ian Hunter, MBE David Jamieson Captain Bob Lough Captain Mike Marchant, MBE
P&O Nedlloyd Ltd
Captain Paul Whittle
Hanson Aggregates Marine Ltd
Finance Andrew Weir Shipping Ltd BP Shipping Ltd P&O Nedlloyd Ltd FT Everard & Sons Ltd International Marine Transportation Ltd Sealion Shipping Ltd P&O Ferries Ltd P&O Steam Navigation Company
Chairman: Michael Parker Andrew Weir Shipping Ltd Makes recommendations to the Board on the Chamber’s budget and level of Call. It examines the accounts and puts them forward for adoption.
Co-opted John Denholm Graeme Dunlop William Everard Tim Harris, CBE Michael Hassing Gwyn Hughes Juan Kelly, CBE Jan Kopernicki Commodore Peter Lannin Bob Malone* Phil Metcalf* Ray Miles Viscount Runciman of Doxford, CBE Simon Sherrard James Sherwood Barnaby Swire
*tbc
Denholm Line Steamers Ltd P&O Steam Navigation Company FT Everard & Sons Ltd James Fisher & Sons Ltd The Maersk Co Ltd P&O Princess Cruises Ltd Isle of Man Steam Packet Co Ltd Shell International Trading & Shipping Co Ltd Royal Fleet Auxiliary BP Shipping Ltd Global Marine Systems Ltd CP Ships Andrew Weir Shipping Ltd Bibby Line Group Ltd Sea Containers Ferries & Ports Ltd John Swire & Sons Ltd
Investment Chairman: Robert Woods Company: P&O Nedlloyd Ltd Monitors the performance of the investment managers who are responsible for maintaining the Chamber’s portfolio.
Committees
Technical Department
Marine Personnel Chairman: Captain Mike Marchant, MBE P&O Steam Navigation Company
Marine Issues Chairman: Ian Hunter, MBE International Marine Transportation Ltd
Offshore Support Vessel Issues Chairman: David Jamieson Sealion Shipping Ltd
Passenger Ship Issues Chairman: Captain Bob Lough P&O Ferries Ltd
International Issues
Policy Department
Chairman: Michael Parker Andrew Weir Shipping Ltd
Defence Issues
(restricted membership)
Chairman: Robert Woods P&O Nedlloyd Ltd
Ports and Pilotage Issues Chairman: Michael Everard, CBE F T Everard & Sons Ltd
Short Sea Issues
Legal
Chairman: Captain Paul Whittle Hanson Aggregates Marine Ltd
Legal, Insurance & Documentary Issues Chairman: Guy Cheeseman P&O Nedlloyd Ltd
Attends to all issues related to the International Maritime Organisation (IMO) Standards of Training Certification and Watchkeeping (STCW) Convention, the International Labour Organisation and personnel/employment issues. Hours of Work and the Race Relations Act are current priorities.
Is the main technical committee monitoring and forming policy on all activities related to ship construction, operation and safety. It liaises with the Maritime and Coastguard Agency on a regular basis.
Develops policies related to the safe operation of offshore vessels, particularly in the North Sea, but increasingly in the international environment. It formulates the industry input to the Maritime Safety Forum.
Reviews and considers general regulatory developments on construction specifications, equipment carriage, taxation and employment law for passenger ships. Also focuses on immigration and border controls.
Considers international shipping issues, often emanating from Europe. This year, however, wider dialogue on competition and a concentration on other local trading issues in, for example, West Africa, Pakistan, India and China were a major focus.
Panels Occupational Health, Safety & Medicine
Dangerous Goods Communications & Electronics Construction (includes Passenger Ship Technical) Container Nautical Environment
Competition Issues
Maintains effective liaison between shipping interests and the Ministry of Defence, specifically the Royal Navy (RN). Monitoring the RN’s Armilla patrol in the Gulf and NATO anti-terrorism patrols on a global basis form a significant element of its work.
Reviews the implementation of the Port Marine Safety Code and provides the policy input on aids to navigation funding. Over 2002-03, it focused on the case for the proposed EU Port Services Directive.
Keeps under review the full range of issues – commercial, regulatory and technical – that affect short-sea operators.
Develops Chamber policies on legal and related matters including liabilities to passengers, oil spill compensation, environmental pollution, freedom of navigation, carriage of goods by sea, contract law and marine insurance.
Trade Procedures
Taxation
Documentary
29
Honours and Obituaries Honours
Obituaries
The Chamber records with pleasure that the following were among those honoured by Her Majesty The Queen during the year:
Ford I Geddes, MBE
DBE Judith Mayhew Chairman, Policy and Resources Committee, Corporation of London
CB Maurice Storey Chief Executive, Maritime and Coastguard Agency
CVO Captain Martin Appleton, RN Formerly Director-General, King George’s Fund for Sailors
Ford Geddes was Chairman of the British Shipping Federation from 1965 to 1968. He was also President of the International Shipping Federation. His period as BSF Chairman coincided with the 1966 seamen’s strike, during which he led the shipowners’ side of the negotiations. This was a critical dispute and he was publicly praised for his handling of it. His long career with P&O, which had begun in 1934, culminated in his becoming Chairman of the company in 1971.
Sir Derek assumed the role of Non-Executive Chairman in the mid-80s and later became Honorary President.
Sir Derek James Bibby, Bt, MC, DL
Ian Burrows
After schooling at Rugby and reading Greek and economics at Trinity College, Oxford, Sir Derek was called up and served with the 53rd Welsh Division. He was wounded three times and at the age of 22 awarded the Military Cross.
Chairman of the Construction Panel. Formerly Technical Director of Harrisons (Clyde), he had been Chairman of Western Ferries for five years at the time of his death. He was especially interested in steam engines and devoted much time and effort to work connected with the restoration of The Waverley and The Maid of the Loch. He was a Past President of the Institute of Marine Engineers.
OBE Samuel Cameron for services to the shipbuilding industry
Under his leadership in the 1970s, the company diversified. It joined the Seabridge Bulk Carrier and Dart Container Consortia, on the way acquiring Britain Steamship Company and Bristol City Line. It also entered the car carrying trade and acquired LPG carriers, tankers, OBOs and chemical tankers.
He joined Bibby Line in 1946 and became a partner in 1950. He became Chairman in 1969.
Simon Cotton Simon joined the Chamber staff from Elder Dempster Lines in 1967 as Assistant General Manager responsible for Legal and Legislative Matters. Having served since 1972 as Deputy Director of the Chamber, he became a Director of the General Council of British Shipping on the merger of the Chamber and the British Shipping Foundation in 1975. His responsibilities covered all aspects of home shipping policy. He was widely respected throughout the industry for his quick and versatile mind and for his contribution to both national and international organisations, where he took a leading role in the legal discussions of the day.
The Chamber bids farewell to the following staff: Vice-Admiral Sir Christopher Morgan KBE
The Chamber of Shipping Photography Acknowledgements Andrew Weir Shipping Ltd
CP Ships
Maritime Photographic/ Gary Davies
BP Shipping Ltd
Crown Copyright/ Ministry of Defence
National Maritime Museum London
Shell International Trading and Shipping Company Ltd
British Marine Aggregate Producers Association
Cunard Seabourn Ltd
OSG Ship Management (UK) Ltd
Stena Line Ltd
F T Everard & Sons Ltd
P&O Nedlloyd Ltd
Transocean Inc
British Marine Federation
The Hadley Shipping Co Ltd
P&O Ferries Ltd
Viking Recruitment Ltd
BUE Marine Ltd
James Fisher & Sons PLC
Reuters/ Stephanie McGehee
Caledonian MacBrayne Ltd
The Maersk Company Ltd
Sea Fish Industry Authority
31
125 years of British Shipping The Chamber of Shipping was founded in 1878 when: n
42% of British shipping was sail-powered
n
220,000 UK residents were employed at sea
n
a British able-bodied seafarer could earn between £3.50 and £4.25 a month
n
steamships from China to the UK could make the journey in around 65 days
Today: n
100% of British ships are powered by diesel and turbine
n
around 30,000 UK residents are employed at sea
n
average salary for a British able seaman is £20,000 per year
n
a container ship sailing from China to the UK takes around 20 days
1878
Over 30 regional shipowner associations agree to support the creation of a new body. The Chamber of Shipping starts operations from a shared office in St Michael’s Alley off Cornhill in the City of London.
1890
The British Shipping Federation (BSF) is formed as an employers’ association, mainly by owners in the North East, in response to increasing trade union activity. Initially it is involved in strike-breaking by supplying nonunionised seamen to members’ ships.
1909
The International Shipping Federation (ISF) is formed and administered by BSF.
British Shipping continues to protect and promote the interests of all its members, both nationally and internationally.
1921
The Chamber is granted a Royal Charter and moves to the Baltic Exchange. The International Shipping Conference is formed, now International Chamber of Shipping (ICS), and administered by the Chamber.
1941
The Chamber builds its own offices in Bury Court. In 1964, a new extension opens at 30 St Mary Axe.
1975
The Chamber merges with BSF to create the General Council of British Shipping (GCBS).
1992
GCBS reverts to the name “Chamber of Shipping� and the St Mary Axe office is destroyed by a terrorist bomb.
1994
The Chamber moves into its new offices in Carthusian Street, still within the City. Opened by HM Queen Elizabeth II that year.
2003
The Chamber continues to protect and promote the interests of all its members, both nationally and internationally.
The Chamber of Shipping Carthusian Court 12 Carthusian Street London EC1M 6EZ TEL FAX E-MAIL WEB
020 7417 2800 020 7726 2080 postmaster@british-shipping.org www.british-shipping.org