ICS ANNUAL REPORT 2013

..: 13042
ECONOMIC
SUSTAINABILITY
Without sea transport, delivery of raw materials would be
impossible due to high costs.
Most effective mean of transport for preserving the
environment.(Least emissions)
Shipping: Large employer(2/3 of developing countries, high
wages).
Crisis affected shipping/Today, global economy(except
Europe gradually recovers).
Important to solve overcapacity problem/Market dynamics
will give the solution.
Questions for shipping: (High costs for ballast water
treatment, for exhaust-gas cleaning systems, for eco-ships
e.t.c., in relation to the problem of limited financial
resources)
IMPLEMENTATION OF MLC
August 2013,convention enters into force(for matters such as
working hours, health & safety, crew accommodation e.t.c.)
No problems for companies with flags that have adopted MLC.
Date of beginning 2013 with 1 year period to implement it./Issuance
of maritime labor certificate after inspection.(Like the SMC for ISM
code).
DMLC(Dealing of Maritime Labor Compliance). Examining if national
requirements are kept(for working living conditions).
Companies must follow instructions by flag state, not those from
Classification societies.
Important for DMLC to explain what to do in case of non compliance.
Information can be kept in Safety Management System by ISM(to
simplify inspections).
New issues introduced by MLC: complaint procedures for seafarers.

CO MRV
MRV system for CO:Alternative to UNFCCC(reducing
oppositions of developing countries(China, India), due to
CBDR principle( common but different responsibility between
for e.g. Europe & developing countries)).
Ships must report annual CO emissions to a central
database., for facts available to PSC.
US wants to take into account service time, a concept that
may lead in misconceptions( e.g. a ballast ship more effective
than a laden one.)
Governments fear the above being a system of
penalizing/rewarding ships(Double penalizing, also due to
expensive low sulphur fuels).
Another controversial issue: E.C. willingness for a regional
MBM system./ICS in favor of a global one in IMO.
Several years to implement a MRV system.

PIRACY & HOSTAGE
TAKING
2014: reduction in pirate attacks./2013: 100 seafarers held
hostage, (over 4000 have been held since the beginning of the
crisis).
New trend of piracy in West Africa(Guinea).
Reasons for reduction: Use of Best Management Practices,
deployment of armed guards & success of military forces.
2013: EU NAVFOR estimated that 15% of ships in the pirate
area dont have the equipment needed to comply with the
problem.
ICS cooperation with SAMI( Security Association for the
Maritime Industry) to develop rules about the Use of
Force./Useful for Private Maritime Security Companies.
RUF is submitted to ISO, hoping the latter will adopt methods
like ISO standards for PMSCs adopted in 2010.
ATTACK IN WEST AFRICA

Increase of pirate attacks in gulf of Guinea, Togo,
Ivory Coast.
Different way of attacks (more physical
violence/captivity of seafarers, less emphasis in
stealing cargo than in Somali cases).
Shipping associations (including ICS) developed
Interim Guidelines for Protection against Piracy in
the Gulf of Guinea.
Attempt with IMO to reduce the use of armed
guards/Potential danger for seafarers

ARCTIC SHIPPING
Increase in travelling through the Arctic is expected (due
to new raw materials, energy held).
Russian ice-breakers are charged to make the passage
less expensive than Suez Canal.
ICS enhances Arctic nations to respect UNCLOS (United
Nations Convention on the Law of the Sea) & relevant
Codes.(IMO develops relations with Arctic
council(secretariat in Tromso)).
High level of care when crossing Arctic region.
Arctic nations(e.g. Canada, Russia) should not impose
measures against ships registered in non-arctic flags(
e.g. higher charges for navigational services).
POLAR Code is suggested by IMO, following
amendenents from SOLAS & MARPOL
conventions(2014).


CONTINUED
ICS stated that Arctic should be treated like all the
others seas all over the world unless the Codes
adoption will be delayed.
Code should not make ships be conformed with a
standard ice-class./Infrastructure must be held to
develop safety & environmental protection, full
market access, freedom of navigation & reduced
bureaucracy/Provide of cost efficient & competitive
services.
2012 IN REVIEW
January: Costa Concordia shipwreck( >30 victims,100 years from
Titanic loss)/adoption of SOLAS Target of IMO to cut into half
losses of life at sea in 2015(ICS goal to have zero accident
rate)./decline of deaths in cargo ships.
Reduction due to adoption of ISM/radical conventions in STCW.
Important to establish a safety culture between nations( C.C. wreck
was due to failure of following certain procedures &
guidelines)/Guidelines for cruise lines by IMO & CLIA.
Flag-states should be obliged to publish the investigation results of
an accident at IMO.(April 2013:report by ICS& ITF to IMO about
strengthening the obligation of states to publish the results of
casualty reports).
Target of fuel with 0.1% sulphur content by 2015 on ECAs/Questions
about availability of such fuels, economic availability of Exhaust Gas
Cleaning Systems (scrubbers).
Some shipping lines (carrying low cost cargo) wont be viable any
more, making shippers to use less carbon efficient means of
transport(e.g. rail, road transport).
CONTINUED
E.C. suggested that adoption of Baltic & North sea
ECAs will be rediscussed
Protection committee of ICS couldnt make the
majority of countries to advance IMOs fuel
availability study( due to fears of indicating
problems related to MARPOL Annex VI
implementation).
In US, coastguard started to adopt ECAS
requirements intensively( ECA region in US
introduced 200 nautical miles from US mainland
coasts).
CO MBMs & UNFCCC GREEN
CLIMATE FUND
High cost fuels make shipping companies to
reduce their fuel consumption & emissions.( policy
makers target in money receiving from S.A.s(as a
source of income for UNFCCC Green Climate
Fund).
Oppositions from countries such as China, India for
MBMs
ICSs enhances discussions of MBMs , but on an
IMO base, not by governments(Unless, ship
owners are willing for a fuel consumption
mechanism, rather than an Emission Trading
Scheme).

BALLAST WATER
MANAGEMENT
ICS, in principle, is in favor of the system. But
some issues must be explained( Robustness of
retrofitting investment in existing ships,
methodology of sampling during PSC & the time-
scale available for 60000 ships to install the
equipment).
Target to retrofit the new equipment, but not until
the next special or intermediate survey (next 5
years).
Some European governments voted against all
ships constructed before Convention entering into
force being named existing ships.
ICSs intervention on IMO at October 2012 was
encouraged by China & some other flag states
,whose ratification is vital for implementing BWM
systems.
SHIP RECYCLING
ICS aims to promote IMOs convention about Safe
& Environmentally Sound Recycling of ships(Hong
Kong),designed to improve safety & environmental
conditions in ship recycling yards.
Most important to be adopted by Asian countries,
where most of recycling yards are.
ICS worry about EUs regulation for the issue/Fear
of undermining IMOs Guidelines.
April 2013: EU parliament turned down the
proposal of raising a fund at EU ports about better
recycling of ships.
TANKER SAFETY
New measures, following fatal explosions of tankers during
last decade.
New regulations of inerting chemical tanks for new ships
over 8000 dwt, published in ICSs Tanker Safety
Guide(2014).
Serious accidents(2012,Stolt Valor explosion in the Gulf)
revealed problems with IMOs guidelines, as states
refused to provide shelter for the ship./Seafarers & ships
dont have the willingness to follow IMOs
recommendations.
Target to introduce a new safety culture among
crews.(publication of ICSs Ship to Ship Transfer Guide
with new measures for chemical, oil & gas carriers/New
Tanker Safety Guide for LNG transports to be issued in
2015).
CARGO LIQUEFACTION
Questions about IMOs standards in remote ports &
terminals.
Losses of bulk carriers carrying nickel ore from
India, Indonesia, Philippines due to liquefaction.
Same incidents also in S.America(for iron-ore
fines)
Reasons: Refusal of some shippers to let
examination of their cargoes by Surveyors at ports
& the pressure of owners to accept deliberately
misdeclared cargoes.
Amendments to solve the problem were included in
IMSBC code( International Maritime Solid Bulk
Cargo),including a new schedule of nickel ore(IMO
2012)
Indonesian authorities, in compliance with IMO,
announced a ban on the export of unprocessed
ore(not expected to be applied before 2015).
CONTAINER WEIGHING
Owners worried about overweighed containers
misdetected in ports, causing accidents in
ships(e.g. MSC Napoli(2007)).
Shippers provide wrong weights. Terminal
operators must ensure that containers are equally
as they have been weighed.
Proposals by IMO,WSC for additional control by
terminal operators will help improve safety &
enhance stowage planning for shippers.
IAPH has adopted these rules. Some
shippers(ESC) are not in favor.
IMO will try to include amendments in SOLAS
convention in 2013.
E-NAVIGATION & ECDIS
ICS takes place in discussions at IMO &
IALA(International Association of Lighthouse Authorities &
Aids to Navigation)
Complex issue, system must be developed in order to
avoid being so expensive.
IMO defines that the system will enable growing numerous
electronic & communications systems into a tenacious
one, bringing together ship to shore.
Fear of IMO that some coastal countries will use e-
navigation as a way of detecting the ships route, taking the
part of owner./E-navigation industry will gain money from
the system.
Scandinavian countries use their own system, as Panama
Canal Authority./ECDIS(Electronic Chart Display &
Information System) is the heart of the system.
Some systems, according to IHO, have not been so
effective(failing the Standard System)./IMO tries to
address these problems.

SAFETY INTO THE MALACCA
& SINGAPORE STRAITS
70000 transits/year in the region./2012:ICS
expressed its worry about lack of Navigational
charts.
MEH project: Targets to improve Safety &
Environmental benefits. Also, India has provided a
vessel to conduct services in the area/Malaysia,
Indonesia offered trade of personnel
2012 meeting in Malaysia, ICS presented its
results about safety incident reports in the
region(Low percentage of incidents, in relation to
heavy traffic. Main reasons: Not appropriate speed
& loss of awareness.
New projects welcomed by IMO: tide, current &
wind measurement/removal of wrecks/provision of
towing vessels e.t.c.
STCW TRAINING ISSUES
Monitored by ISF(implementation of STCW 2010).New
changes(national training & certification regimes into force in January
2013).
Problems with seafarers having certifications from countries other
than they are working.
Important for governments to get a white list position at IMO.
Governments should send information to IMO about adoption of
STCW.
IMO doesnt suggest obligatory training for seafarers about ECDIS
needs.
ISF has updated its On Board Training Record Books for use by
trainees, aiming at qualifying as Officers or Ratings under STCW
convention.(Potential Deck or Engine seafarers & officers will be
forced to have completed an on board training programme to
complete training record books.
January 2013: ISF published a version of OBTRB for Engine Cadets,
that was approved by certificate issuing administrators(e.g.
Philipiness,20% of global seafarers).Book available on line by 2013.
WORK HOUR REGULATION
STCW 2010 requires minimum work/rest hours for
seafarers, being controlled by PSC.
ISF Watchkeeper enables ships keeping records of
seafarers work on ships(Updated for Manila
amendments STCW 2010).
Fierce requirements of STCW in relation to MLC. It
will be the default level of PSC.
Charterers push owners to plan about seafarers
time on the ship and reduce fatigue, a proposal
that is facilitated by ISF Watchkeeper.
LABOUR AFFAIRS
ISF partner of ITF(ISF presenting views of national ship
owners, ITF of national seafarers union affiliates).Also,
they negotiate in ILO the text of MLC & in JMC updating
ILOs minimum wage for able seafarers.
Conflict between ISF,ITF due to ITFs campaign against
flags of convenience./Obsolete disputes between the
latter & traditional flags according to ISF & ICS.(Most
open registries have ratified MLC).
Subjects of common views : piracy, improving maritime
safety on IMO, accidents of seafarers./April 2013: ITF
stated the need of flags to report casualties
2014 meeting of ISF/ITF in Geneva to discuss
amendments of MLC( about Crew Claims, Abandonment
e.t.c.)

ILO MINIMUM WAGE
January 2013: increase in 568 $(basic wage),further to
go up to 585 $ in 2014,no change until 2015.(4 year deal
by ILO Joint Maritime Commission in 2011,being
included in MLC).
Not obligatory, essential for workers in developing areas.
Higher than wage in ashore jobs & nearly more than
50% taking into account overtime hours & ILO basic
requirements.
Slightly more for officers & workers in developing
countries rather than in OECD( gap to be reduced )

SHORE LEAVE & FAL
CONVENTION
Convention for facilitation of International Maritime
Traffic & reduce bureaucracy.
3 issues to be discussed: electronic exchange of
information, harmonizing FAL convention & WCO
SAFE framework, Decline the addition of VISA
numbers from PSC about shore leaves to
seafarers in US, Australia, Brazil, Singapore & in
some EU Shengen countries.
ICS & ISF proposed at IMO that port states must
ensure that seafarers could be able to apply for
VISAs upon arrival in the port.

INCREASE TO LLMC LIMITS
ICS expresses its support to increase limits for
owners liabilities(1996 Protocol of LLMC) by
51%.Initial proposal from Australian
government(due to bunker spill of Pacific
Adventurer in 2009).
Owners agree, but in the limits of LLMC(claims
history/inflation/cost of insurance)
P&I Clubs survey revealed that only a small
number of claims are not reimbursed under
existing LLMC convention.
2015: New LLMC convention into force, regulating
issues such as liabilities for bunker spills, wreck
removal(IMO Nairobi Convention)
COMITE MARITIME
INTERNATIONAL
Association of Maritime Lawyers.
ICS welcomed 2 proposals of CMI concerning a
separate award for environmental salvage & about
York Antwerp Rules on General Average.
Opposition from ICS to proposals from ISU of a new
salvage award in cases of ships having successfully
managed operations for cargo damaging the
environment.
ICS believes that existing conventions(Lloyds SCOPIC
clause, Lloyds Open Form & IMO Salvage conventions)
already reward generously salvors. Besides, new award
will demand complicated & expensive tools to be
installed.
No agreement about new ISU salvage prize & York
Antwerp rules in 2012 CMI conference. Last to be
revised in 2016 CMI conference.




PASSENGER SHIP
LIABILITY
ICS supports the entry of Athens Proposal for the
carriage of Passengers & their Luggage at Sea.
Compulsory insurance for injury claims & others for
higher compensation than original convention.(Must be
ratified by 9 countries to enter into force).
Tension subject the terrorism defense, as owners state
that this must be compensated by governments as a
social issue.
2006 : IMO stated that the latter must be aligned with
war risk.
31/12/2012: New EU Passenger liability regulation into
force./ICS & ECSA have urged EU mar. administrators to
be able to provide insurance certificates in passenger
ships approaching EU ports.
CONTINUED
Owners & P&I Clubs have printed
certificates of insurance for the non-
war risk arising under the EU PLR.
Matters have occurred with EU/EEA
States refusing to issue certificates to
non-EU/EEA ships, unless they come
to their ports, but no flurries have been
so far on cruise/ferry industries.
CARGO LIABILITY
ICS promotes adoption of Rotterdam rules(2009
UNCITRAL) in place of obsolete Hamburg ones.
Despite complexity, ICS enhances these rules in
order to avoid enforcement of regional ones.
US & Asian countries are likely to adopt the
Convention(US ratification 2013)
ICS has published a issue about the main subjects
of the rules to alive reservations of nations about
the advantages of the Convention.
COMPETITION ISSUES
ICS opinion is strongly to protect the anti-trust exception for
practices like discussion agreements to enable shippers
worldwide work smoothly./EU commission has opposite view.
2015: ICS says that exception of consortia agreements should
be extended when reviewed.
ICS opinion is strengthened by FMCs study(US Federal
Maritime Commission) in favor of conferences in EU trade as
in non EU ones. Conclusions: No reduction of freight rates in
Europe trades (compared to Far East/US ones) & increase
rate volatility .
ICS commented in Chiles competition examining legality of
Conference(April 2013),stated that anti-trust exemptions are
valid.
EC after ICS suggestion, stopped its examination in third party
insurance by P&I Clubs, decision appreciated by owners &
ICS.

INTERNATIONAL SHIPPING
POLICY
May 2013: ICS thesis: open market for shipping in world
transport ministers forum in Leipzig( by OECD ITF).
April 2013: ICS organized a seminar on trade policy
developments for CSG governments in Hamburg about
issues as the financial crisis in shipping & dangers of
African protectionism.CSG also connects world owners
with US government agencies.
ICS target to include shipping in any agreements made by
the WTO.
SLOW progress in discussions in WTO due to tension
between governments and matters such as agriculture.
Shipping must not be excluded by the new legislation of
WTO in free trade.

CHINAs FUTURE SHIPPING
POLICY
Change in Chinas maritime leader ship.
China may be thinking of enforcing cargo
reservation for Chinas owners.
New regulation of cabotage was issued in 2013.
These policies may stop the ban of ultra large iron
ore carriers by Vale calling at Chinese ports.
China is taking into account interests of Chinese
owners to their obligations in Chinese partners, the
willingness to lower assistance in loss making
industries & the long term interests of the Chinese
economy.
TAXATION MATTERS
Important to ensure the current tonnage tax
system./EC now reexamines the subject.
Important to ensure the Article 8 of United Nations
Model Double Taxation Convention between
Developed & Developing countries.
October 2012(Geneva): ICS opposed in Indian
governments proposal for taxes on the domestic
leg of revenue for a global voyage.(United Nations
Committee of Experts on International Cooperation
in Tax Matters..
Any new legislation will lead in different treatment
between port calls worldwide.
CANAL TOLL INCREASES
2012, ICS opposed about Panama Canal Authority(PSC) to
increase tolls. The increase was only delayed for October
2012,with a second one in October 2013.
ICS would discuss the PCA proposal in a global & sector level
and in respect to 2014/2015 scheme of expanding Panama
Canal.
PCA proposed a band system in which PCA will have the
flexibility to adjust tolls through an upper & lower limit, as a way
of better adjusting in market events.
Same decision for the SCA(Suez Authority)./About 3-5%
increase, not for smallest ships.
Pressures in SCA to help Egyptian government (due to the
crisis in the country), but this could have a controversial effect,
as it would lead owners to choose the Cape route for their
ships.
Other difficulties to reach Suez canal are the Somali attacks &
the current situation in Egypt.