Maritime Administration Seminar
World Maritime University
Malmö 27 August 2008
INTERTANKO and Quality Shipping in the
context of Flag State Implementation
Kristian R. Fuglesang
Assistant Director
Anti-Trust/Competition Law
Compliance Statement
INTERTANKO’s policy is to be firmly committed to maintaining a fair and
competitive environment in the world tanker trade, and to adhering to all
applicable laws which regulate INTERTANKO’s and its members’ activities in
these markets. These laws include the anti-trust/competition laws which the
United States, the European Union and many nations of the world have
adopted to preserve the free enterprise system, promote competition and
protect the public from monopolistic and other restrictive trade practices.
INTERTANKO’s activities will be conducted in compliance with its Antitrust/Competition Law Guidelines.
Maritime Administration Seminar, WMU, 27 August 2008
Maritime Administration Seminar, WMU, 27 August 2008
What do shipowners expect of flag states?
Maritime Administration Seminar, WMU, 27 August 2008
A strong and responsible register,
demonstrating leadership and
accountability.
Maritime Administration Seminar, WMU, 27 August 2008
What do shipowners expect of flag states?
Seven Cs for a responsible flag state:
1. Competent administration
2. Commitment
Maritime Administration Seminar, WMU, 27 August 2008
What do shipowners expect of flag states?
Seven Cs for a responsible flag state (ctd):
3. Consistent
4. Corruption-free
Maritime Administration Seminar, WMU, 27 August 2008
What do shipowners expect of flag states?
Seven Cs for a responsible flag state (ctd):
5. Competitive
6. Capital – friendly
7. Casualty investigation
Maritime Administration Seminar, WMU, 27 August 2008
The Shipping Industry Guidelines
on Flag State Performance
Maritime Administration Seminar, WMU, 27 August 2008
Essential standards to be enforced and
encouraged by flag
states:
• Safety
• Environmental
• Social performance
Maritime Administration Seminar, WMU, 27 August 2008
Shipowners’ reasonable expectations
of the flag administration
Maritime Administration Seminar, WMU, 27 August 2008
Balance between:
1) Commercial advantage
2) Discourage flags which do not meet their
international obligations
Maritime Administration Seminar, WMU, 27 August 2008
Examine whether a flag has sufficient
substance before using it
Maritime Administration Seminar, WMU, 27 August 2008
The shipping industry should put pressure
on flag states to make necessary
improvements re:
• Safety of life at sea
• Protection of marine environment
• Decent conditions for seafarers
Maritime Administration Seminar, WMU, 27 August 2008
Flag states:
• First line of defence against unsafe or
environmentally damaging ship operations,
• Enforcement of IMO and ILO rules
Maritime Administration Seminar, WMU, 27 August 2008
Poor record of Flag States
has Port State Control implications
for good ships under that flag
Maritime Administration Seminar, WMU, 27 August 2008
Charterers might not want to be
associated with a poorly performing flag
Maritime Administration Seminar, WMU, 27 August 2008
Well performing flag states are less likely to
tolerate sub-standard operators.
Competition from sub-standard operators
unfair
Maritime Administration Seminar, WMU, 27 August 2008
Is using a poor flag in the interest of
shipowners?
Maritime Administration Seminar, WMU, 27 August 2008
There can be reasons to use poor flags,
but one should then encourage that State to
improve
Maritime Administration Seminar, WMU, 27 August 2008
Flag State responsibilities:
• Infrastructure
• Constructive participation in IMO and ILO
• Rapid ratification of international
conventions
• Efficient and uniform implementation and
enforcement
Maritime Administration Seminar, WMU, 27 August 2008
Flag State responsibilities (ctd):
•
•
•
•
Supervision of classification societies
Proper ISM Code procedures
Safarers’ competence standards
Safe manning and working hours
Maritime Administration Seminar, WMU, 27 August 2008
Flag State responsibilities (ctd):
•
•
•
•
Casualty investigations
Transfer of ships between flags
Repatriation of seafarers
Participation in IMO Member State Audit
Maritime Administration Seminar, WMU, 27 August 2008
Shipping should not be allowed to be used as
a pawn in international politics
Maritime Administration Seminar, WMU, 27 August 2008
Flag can be one of the criteria in targeting
ships for Port States inspections,
but otherwise,
tankers should be given
the same treatment in ports regardless of flag
Maritime Administration Seminar, WMU, 27 August 2008
Classification societies should be encouraged
to be more selective in accepting work for
under-performing Flag states
Maritime Administration Seminar, WMU, 27 August 2008
Shipowners should be selective in their
decision regarding which Flag states
they use
Maritime Administration Seminar, WMU, 27 August 2008
Charterers should do likewise
Maritime Administration Seminar, WMU, 27 August 2008
When IMO Audit Scheme is up and running:
INTERTANKO Members shall commit to only
employ those flags that have satisfactorily
completed an IMO Member State audit.
Maritime Administration Seminar, WMU, 27 August 2008
Results of IMO State audits should be made
public
Findings need to be followed up
Maritime Administration Seminar, WMU, 27 August 2008
Thank you
www.intertanko.com
Maritime Administration Seminar, WMU, 27 August 2008
Welcome in Oslo!
Maritime Administration Seminar, WMU, 27 August 2008
Maritime Administration Seminar, WMU, 27 August 2008