Previous Page  33 / 50 Next Page
Information
Show Menu
Previous Page 33 / 50 Next Page
Page Background

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/