

Dale Hammond
15
Protection Agency (EPA) to regulate discharges by commercial ships, with strict
liability for breaches. The CWA also requires that best available technology is
used to avoid the introduction of invasive species.
The EPA has recognised that they should co-ordinate their approach with
the USCG and has indicated that, pending USCG approval of a ballast water
treatment system, they are unlikely to prosecute shipowners for violations.
However, this is not a guarantee. Furthermore, it is possible for third parties
other than the EPA to bring prosecutions under the CWA. All of this creates
uncertainty for shipowners and additional costs until as and when the USCG
approves a BW treatment system.
6
In the meantime, as far as P&I Club cover is concerned, any fines for non-
compliance with BWM regulations will again be a matter of discretion for the
Club’s Board or Committee depending on all the circumstances. Like sulphur
emission violations, the level of fines for breaches of BWM requirements will
depend on the jurisdiction in which the violation takes place or in which it is
prosecuted.
7
Sanctions
Finally, in the context of how laws and regulations are increasingly impacting
on shipowners, I will say a few words about sanctions and, in particular, those
relating to Iran. These have costs implications: albeit they primarily relate to
trading costs and restrictions rather than an immediate cost to shipowners.
They also have an impact on insurance costs. Again, this is an example of
shipowners being expected to act as good citizens – this time in ensuring that
they do not facilitate trading with what are considered to be “rogue” states.
The most detailed and far-reaching sanctions have been those imposed by
the US and EU in relation to Iran. They have a long and complex history but
in January 2016 nearly all cargo and insurance related sanctions against Iran
that had been imposed by the EU and US (in relation to non-American parties)
6. At a meeting of the Connecticut Maritime Association in March 2017 a senior USCG
representative told attendees that shipowners will face more pressure to show why they
cannot install an approved BW treatment system now they are available. See: https://
www.britanniapandi.com/news/US-coast-quard-approved-ballast-treatment-systems/7. By way of example, in February 2017 the USCG imposed a fine of USD38,175 on the
operators of the bulk carrier Vega Mars for the discharge of ballast water from the
ship without the use of a USCG approved ballast water management system or other
approved means at Tacoma on or about 29 January 2017. See http://coastguardnews.
com/coast-guard-completes-ballast-water-violation-investigation-initiates-civil-
penalty/2017/02/13/