

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