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12

Mandatory rules imposed on shipping and their insurance cost

Pollution

The second issue I wish to talk about is pollution and, in particular, the

introduction of low sulphur emission control areas (SECAs) and ballast water

management (BWM) regulations. This is an aspect of the increasingly proactive

approach being taken by government authorities towards any breach of

pollution regulations. Again, this reflects the idea that shipowners should

act as good citizens by taking steps to minimise the environmental footprint

of their activities. The concept is a sound one. However, there should be a

corresponding responsibility on the part of the authorities to ensure that it

is unlawful pollution that is punished and not merely innocent mistakes. In

particular, pollution regulations should not be used by the authorities as a way

of generating income by imposing disproportionate fines for minor, sometimes

merely clerical, errors. This is a problem in some countries and difficulties can

also arise from the use of whistle blowers in the US. Furthermore, shipowners

need certainty as to what is required of them, which is a problem with the

BWM regulations.

Marpol

Government authorities have been prosecuting crew and shipowners for

breaches of MARPOL regulations for many years. Although such prosecutions

have received most prominence in the US, there is little tolerance for such

breaches these days throughout most of the world.

The fines for breaches can be very significant, running into many millions of

dollars for the employer and imprisonment for the guilty crew member if the

deliberate discharge of oily waste is involved. However, significant fines can

also be imposed for discrepancies in the paperwork, e.g. the oil record book,

without any actual pollution occurring.

4

Aparticular feature in the US is the involvement of whistle blowers who receive

financial rewards for informing the authorities about violations. While this has

caught genuine polluters, it can potentially lead to prosecutions merely for

documentary discrepancies. It has also encouraged false allegations where

whistle blowers have attempted to “frame” a shipowner by, for example,

taking photos of the faked bypassing of an oily water separator (OWS).

P&I Clubs do not insure liabilities resulting from the intentional violation of

MARPOL regulations. So, for example, the intentional discharge of waste oil in

violation of MARPOL is not considered to be accidental even when it is done

4. For brief examples of penalties imposed for MARPOL violations, particularly in the USA,

see:

http://www.marinelink.com/news/maritime/oil-record-code-violations