British ShippingThe Chamber of Shipping Annual Review 2002

The Chamber of ShippingSupporting British Shipping for 125 yearsThe Chamber of Shipping is the trade association for British shipowners and shipmanagers working topromote and protect the interests of its membersboth nationally and internationally.

With 120 members and associate members, theChamber represents over 605 merchant ships of11.4 million gross tonnes.

The Chamber works with Government,Parliament, international organisations, unionsand the general public on behalf of the manydifferent commercial sectors in the shippingindustry including deep-sea bulk, short-sea bulk,containers, ferry, cruise, offshore support andspecialised operators.

ContentsPresident’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

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32

“The most challenging priority is the dialogue on how to enhanceemployment prospects for British seafarers.”

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.

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

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.

Robert Woods

The President

“It is our responsibility to communicate – particularly to youngpeople – the size and value of our maritime sector.”

3

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.

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.

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.

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.

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.

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 UKPromoting our maritime future

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.

Sea Vision UK core messages

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

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 recruitmentThe 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.

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 onSince 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 continuesSince 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.

Shipping Policy

7

120

72

118

20

139

35

Bulk Carrier

Oil Tanker

Container

Roll-on/Roll-off

Cruise

Off-shore Supply

UK-owned Fleet by Selected Types – End 2002

3.6

3.7

3.4

3.0

4.0

5.1

5.0

3.3

7.8

3.53.74.

2

12.3

12.0

10.5

15.4

UKRegistered

OtherRed Ensign

Foreign Registered

Total

UK-owned Fleet by Registry

1990

2000

2001

2002

2

0M

n D

wt

4

6

8

10

12

14

16

2,47

1

1,12

0

5,13

5

1,35

1

Tota

l Tur

nove

r

Direct

Con

trib

utio

n to

Bala

nce

of P

aym

ents

Domes

tic/Im

port

s

Cont

ribut

ion

Ove

rall

Cont

ribut

ion

Shipping and the Economy – 2001

1000

0

£Mn

2000

3000

4000

5000

6000

6,68

6

2002

4,26

9

3,75

7

2000 2001

2,74

0

1999

2,69

9

1998

Total Trading Fleet on UK Register

1000

0

Tho

usa

nd

Dw

t

2000

3000

4000

5000

6000

7000

8000

Nu

mb

er

0

100

200

300

400

500

600

Number

000 Dwt

Consultation on Corporation TaxA 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.

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.

Ports Policy – a focus on usersThere 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.

British Cadet Recruitment

1999/00 4462000/01 4812001/02 4832002/03 622

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’ interestsThe 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

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 efficienciesLight 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.

British shipping is one of the largest earners in the services sector – ahead oftelecommunications, film and television and computer services.

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 non-

payers 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.

Liberalising maritime servicesNegotiations 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

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 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.

Streamlining immigration controlsThe 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.

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.

9

“62 company groups, operating some 720 vessels, have now entered the tonnage tax regime.”

“Formal security procedures have to be developed for all ships and ports.”

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 agendaFollowing 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.

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.

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 near-

Continental 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

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 CommitteeSince 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.

Maritime Security

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.

Container security fearsWork 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.

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

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.

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.

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.

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

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.

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

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.

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.

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

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 regulationsSince 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 trainingFollowing 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 practiceOffshore 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.

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

regulatory bodies both on the UK continental

shelf and worldwide. A target for 2003 is to

ensure worldwide acceptance of these guidelines.

“Standards should be regulated on an international rather than a regional basis.”

13

Safety

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 pollutionIn 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.

Environment

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.

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.

Protection from air pollution forsensitive ecosystemsWith 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.

15

“The Castor, Erika and Prestige incidents allillustrate the need to ensure that ‘places ofrefuge’ are available.”

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.

The multi-lateral principle

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 seafarersThe 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 newly-

qualified 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 ActGovernment 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 timeFor 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.

Employment and Training

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 consolidationWork consolidating the body of ILO maritime

instruments into a single convention gathered

pace during 2002. Preparatory work by a high-

level 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 documentsSeafarers’ 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 asin 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 opportunitiesEliminating 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 CommitteeIn 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 seaThe 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.

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,

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.

The Chamber did achieve two important

derogations from the directive which should

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.

“For the first time, the industry has an enforceable international standard for seafarers’ hours of work.”

19

Responsibility for the promotion and

development of education, training and

skills, falls to the industry’s central body,

the Merchant Navy Training Board (MNTB).

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.

Sector Skills Councils – concern tosecure fundingAs 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

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.

Increase in cadet numbersIn 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 promotionPromotion 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 CityAs an active member of Sea Vision UK and

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

Merchant Navy Training Board

“Maintaining standards for those entering the industry is paramount.”

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 printWith 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 mattersKey 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

Prestige and the Law of the SeaHasty 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 liabilityOil 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.

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

governments include an “opt-out” clause for states

wishing to exceed the agreed compensation levels.

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.

Providing for multi-modal transportationIn 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,

23

Legal, Insurance and Documentary Issues

“Liability is the key issue – in all sectors.”

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 environmentaldamageThe 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.

InsuranceThe 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 mattersThe 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

in accordance with contemporary user needs.

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.

Competition – container shipping: anti-trust exemptionsPublished 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 the1990s 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.

AppealsIn 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 rate-

setting. 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.

Trans-Atlantic tradesApproval 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

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.

EU Competition RulesA 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.

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.

25

Chamber members work with staff through the committee structure to deliver a high quality service to the shipping industry.

The Chamber

27

Legal & DocumentaryDonald Chard

FinanceJeffrey SmithAndrew PowSusan Gray (Marisec)

Technical & LabourMarine & TechnicalTony HallPaul HolmanRobert Ashdown

Employment & TrainingTim Springett

Merchant Navy TrainingBoard (MNTB)Richard MatthewGlenys JacksonDonna Stevens

Shipping PolicyJohn DowdenTim ReardonGavin Simmonds

Public RelationsAlison PeetAlexei PlayerManuela Sarris (Sea Vision)

AdministrationPersonnelDoreen Scott

PremisesFred Le PetitHelen Matthews

PA & Secretarial SupportTerry Cooper(Director-General)Pat RuthvenMichele ToddMarie Borg

Technical & LabourEdmund BrookesDeputy Director-General

The Technical and Labour

Department acts as the interface

between members and both national

and international regulators on all

issues relating to the safe

construction and operation of ships,

environmental protection, health and

safety, the off-shore sector, labour

law and relations and crewing. It also

links closely with the Merchant Navy

Training Board.

The Shipping Policy Department

is responsible for all aspects of

national and international policy

including direct and indirect taxation,

state aids, defence and security, trade

policy, customs, passenger issues and

immigration. It maintains relations

with, and covers issues involving, other

national sectors such as shipbuilding

and manufacturing, ports, and the

financial and legal services of Maritime

London. The department also provides

the Chamber’s statistical function.

Shipping PolicyDavid AspreyHead of Department

The Public Relations Department

provides parliamentary affairs, media

relations, events management and

publications (including website)

services. It is responsible for the

development of the Chamber’s

communications both with members

and the wider public. The PR team

also provides day-to-day management

of the Sea Vision initiative.

Public RelationsJeremy HarrisonHead of Department

The Administration Department

is responsible for all the institutional

aspects of the Chamber and its group

of companies. It oversees personnel,

the staff pension fund, property

management and lettings, and the

conference facilities. The Company

Secretary also organises the general

meetings, Board and Executive

meetings, subscriptions, membership

and the annual dinner.

AdministrationStewart ConacherCompany Secretary

Mark BrownriggVice-Admiral Sir Christopher

Morgan KBE

Michael ParkerRobert WoodsRichard Paniguian

President Up to October 2002

President From October 2002

Vice-President From October 2002

Director-GeneralUp to January 2003

Director-GeneralFrom February 2003

The Chamber of Shipping Board

FinanceChairman: Michael ParkerAndrew Weir Shipping Ltd

Makes recommendations to theBoard on the Chamber’s budgetand level of Call. It examines theaccounts and puts them forwardfor adoption.

InvestmentChairman: Robert WoodsCompany: P&O Nedlloyd Ltd

Monitors the performance of theinvestment managers who areresponsible for maintaining theChamber’s portfolio.

Ex-officio Members

Robert Woods P&O Nedlloyd Ltd

President

Michael Parker Andrew Weir Shipping Ltd

Vice-President

Richard Paniguian BP Shipping Ltd

Immediate Past President

Guy Cheeseman P&O Nedlloyd Ltd

Michael Everard, CBE FT Everard & Sons Ltd

Ian Hunter, MBE International Marine Transportation Ltd

David Jamieson Sealion Shipping Ltd

Captain Bob Lough P&O Ferries Ltd

Captain Mike Marchant, MBE P&O Steam Navigation Company

Captain Paul Whittle Hanson Aggregates Marine Ltd

Co-opted

John Denholm Denholm Line Steamers Ltd

Graeme Dunlop P&O Steam Navigation Company

William Everard FT Everard & Sons Ltd

Tim Harris, CBE James Fisher & Sons Ltd

Michael Hassing The Maersk Co Ltd

Gwyn Hughes P&O Princess Cruises Ltd

Juan Kelly, CBE Isle of Man Steam Packet Co Ltd

Jan Kopernicki Shell International Trading & Shipping Co Ltd

Commodore Peter Lannin Royal Fleet Auxiliary

Bob Malone* BP Shipping Ltd

Phil Metcalf* Global Marine Systems Ltd

Ray Miles CP Ships

Viscount Runciman of Andrew Weir Shipping Ltd

Doxford, CBE

Simon Sherrard Bibby Line Group Ltd

James Sherwood Sea Containers Ferries & Ports Ltd

Barnaby Swire John Swire & Sons Ltd

Chamber’sCommittees andPanels structure

*tbc

29

International IssuesChairman: Michael ParkerAndrew Weir Shipping Ltd

Considers international shipping issues, often emanating from Europe.This year, however, wider dialogue on competition and a concentrationon other local trading issues in, for example, West Africa, Pakistan, Indiaand China were a major focus.

Marine Personnel Chairman: Captain Mike Marchant, MBEP&O Steam Navigation Company

Marine IssuesChairman: Ian Hunter, MBEInternational Marine Transportation Ltd

Passenger Ship IssuesChairman: Captain Bob LoughP&O Ferries Ltd

Ports and Pilotage IssuesChairman: Michael Everard, CBEF T Everard & Sons Ltd

Short Sea IssuesChairman: Captain Paul WhittleHanson Aggregates Marine Ltd

Committees Panels

Is the main technical committee monitoring and forming policy on allactivities related to ship construction, operation and safety. It liaises with the Maritime and Coastguard Agency on a regular basis.

Reviews and considers general regulatory developments on constructionspecifications, equipment carriage, taxation and employment law forpassenger ships. Also focuses on immigration and border controls.

Reviews the implementation of the Port Marine Safety Code and providesthe policy input on aids to navigation funding. Over 2002-03, it focusedon the case for the proposed EU Port Services Directive.

Keeps under review the full range of issues – commercial, regulatory andtechnical – that affect short-sea operators.

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.

Offshore Support Vessel IssuesChairman: David JamiesonSealion Shipping Ltd

Develops policies related to the safe operation of offshore vessels,particularly in the North Sea, but increasingly in the internationalenvironment. It formulates the industry input to the Maritime Safety Forum.

Polic

y D

epar

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tLe

gal

Tech

nica

l Dep

artm

ent

Legal, Insurance & Documentary IssuesChairman: Guy CheesemanP&O Nedlloyd Ltd

Develops Chamber policies on legal and related matters includingliabilities to passengers, oil spill compensation, environmental pollution,freedom of navigation, carriage of goods by sea, contract law andmarine insurance.

Documentary

Trade Procedures

Taxation

Dangerous GoodsCommunications & Electronics Construction (includes Passenger Ship Technical)Container Nautical Environment

Occupational Health,Safety & Medicine

Competition Issues

Defence Issues (restricted membership)Chairman: Robert WoodsP&O Nedlloyd Ltd

Maintains effective liaison between shipping interests and the Ministry of Defence, specifically the Royal Navy (RN). Monitoring the RN’s Armillapatrol in the Gulf and NATO anti-terrorism patrols on a global basis forma significant element of its work.

The Chamber records with pleasure that the

following were among those honoured by Her

Majesty The Queen during the year:

DBEJudith Mayhew

Chairman, Policy and Resources Committee,

Corporation of London

CBMaurice Storey

Chief Executive, Maritime and Coastguard Agency

CVOCaptain Martin Appleton, RN

Formerly Director-General, King George’s

Fund for Sailors

OBESamuel Cameron

for services to the shipbuilding industry

Ford I Geddes, MBEFord 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 James Bibby, Bt, MC, DLAfter 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.

He joined Bibby Line in 1946 and became a

partner in 1950. He became Chairman in 1969.

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.

Sir Derek assumed the role of Non-Executive

Chairman in the mid-80s and later became

Honorary President.

Ian BurrowsChairman 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.

Simon CottonSimon 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.

ObituariesHonours

Honours and Obituaries

The Chamber bids farewell to the following staff:

Vice-Admiral Sir Christopher Morgan KBE

The Chamber of Shipping Photography Acknowledgements

Andrew Weir Shipping Ltd

BP Shipping Ltd

British Marine Aggregate Producers Association

British Marine Federation

BUE Marine Ltd

Caledonian MacBrayne Ltd

CP Ships

Crown Copyright/ Ministry of Defence

Cunard Seabourn Ltd

F T Everard & Sons Ltd

The Hadley Shipping Co Ltd

James Fisher & Sons PLC

The Maersk Company Ltd

Maritime Photographic/ Gary Davies

National Maritime Museum London

OSG Ship Management (UK) Ltd

P&O Nedlloyd Ltd

P&O Ferries Ltd

Reuters/ Stephanie McGehee

Sea Fish Industry Authority

Shell International Trading and Shipping Company Ltd

Stena Line Ltd

Transocean Inc

Viking Recruitment Ltd

31

125 years ofBritish ShippingThe 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

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.

1878The 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 non-

unionised seamen to members’ ships.

1890The International

Shipping Federation

(ISF) is formed and

administered by BSF.

1909

British Shipping continues to protect andpromote the interests of all its members,both nationally and internationally.

The Chamber is granted a RoyalCharter and moves to the BalticExchange. The InternationalShipping Conference is formed,now International Chamber ofShipping (ICS), and administeredby the Chamber.

1921The Chamber builds its own offices in BuryCourt. In 1964, a newextension opens at 30 St Mary Axe.

1941The Chamber mergeswith BSF to create theGeneral Council ofBritish Shipping (GCBS).

1975GCBS reverts to the name“Chamber of Shipping”and the St Mary Axe office is destroyed by a terrorist bomb.

1992The Chamber moves into its new offices in CarthusianStreet, still within the City.Opened by HM QueenElizabeth II that year.

The Chamber continuesto protect and promotethe interests of all itsmembers, both nationallyand internationally.

1994 2003

Carthusian Court12 Carthusian StreetLondon EC1M 6EZ

TEL 020 7417 2800FAX 020 7726 2080E-MAIL postmaster@british-shipping.orgWEB www.british-shipping.org

The Chamber of Shipping