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The Maritime Transport Committee met on 24-25 May 1004. Discussions focussed on the Committee’s work on security in maritime transport, safety and the environment, the Committee’s 2005/2006 Programme of Work, and the Dialogue with non-member economies. The Committee agreed that a Workshop on the general topics of maritime safety and maritime security be held with non-member economies in November 2004.
The MTC elected the existing chairman and the members of the Bureau for a further term. The MTC, as a regular feature on its agenda, heard from industry, with this session devoted to ship financing.
Estonia and the International Maritime Organization, participated as observers in the meeting. The Business Industry Advisory Committee (BIAC), the Trade Union Advisory Committee (TUAC), the International Group of P&I clubs and the Oil Companies International Marine Forum (OCIMF) also contributed to the discussions.
Industry Seminar
Ship financing. Mr. Dagfinn Lunde, Chairman and CEO of DVB Bank nv provided delegations with a comprehensive overview of the bank’s ship financing activities. He highlighted certain difficulties the bank faced in ensuring that it financed only high quality shipping, principally because of the lack of real-time (on-line) and uniform reporting of data on substandard shipping, as well as the reluctance to make this data publicly available.
Security in Maritime Transport
Verification of cargoes. The Committee reviewed a joint OECD/ECMT report on Container Transport Security across Modes. This report represents the third element of the MTC’s four-part strategy to deal with security in maritime transport; and because it examines container security across all transport modes it covers a much broader field than just the maritime sector. Transport authorities can play an important role in countering the threat of containers that are “hijacked” or otherwise misused by enhancing security at all points along the transport chain. A number of recommendations are provided in the report. A joint OECD/ECMT press release urging tighter security to beat freight container terrorism risk was released on the OECD site: www.oecd.org The executive summary and conclusions can be consulted at: www.oecd.org/sti/maritime-transport.
Ownership and control of ships. The Committee considered a revised report that represents the second phase of its work on ownership and control. The report proposes a number of options to increase transparency in the ownership and control of ships that could be taken by jurisdictions and shipping registers. As well, it examines some measures that could be taken by governments facing potential threats that may be made more serious by a lack of such transparency. The report was declassified by the Committee and made available to all interested parties. It can be found at: www.oecd.org/sti/maritime-transport.
Update of maritime security activities. With just six weeks to go to the ISPS Code 1 July deadline, this was a last minute opportunity for Delegates to bring each other up to date on maritime security activities. Participants also benefited from an oral report from the IMO on the outcome of discussions on security issues at the meeting of the Organisation’s Maritime Safety Committee held just before the MTC.
Safety and the Environment
Marine Insurance. In the context of the implementation of the MTC Policy Statement on Substandard Shipping (www.oecd.org/sti/maritime-transport) the Committee considered a comprehensive study, prepared by a consultant on its behalf, on the role that could be played by the marine insurance industry in addressing the problem of substandard shipping. One of the findings of the study was that insurers are more likely to withdraw cover than to raise premiums when they become concerned about the quality of a current assured. It also noted that higher premiums applied to substandard operators would be unlikely to be a sufficient burden to force the withdrawal of the ship from service. However, compulsory insurance would help remove substandard ships if they found it impossible to obtain insurance cover.
The Committee declassified the report, and it can be found at www.oecd.org/sti/maritime-transport.
Several issues raised in the report will also be progressed by the Committee in the context of its 2005/2006 Programme of Work.
Policy Options to deal with Substandard Shipping. The Committee decided to give further consideration to several options, including possible work on strengthening the role of Classification Societies and the elaboration of incentives for quality shipowners, and these will be included in the Committee’s draft 2005/2006 Programme of Work.
Information resources on substandard shipping. This project also stems from the MTC’s Policy Statement on Substandard Shipping. Participants considered a report which provided an overview of sources of information on substandard shipping along with an evaluation of their potential contribution to policy efforts to address this problem. It focuses on Port State Control data and the manner in which this data is integrated, along with other sources, into the Equasis website. It also provides some suggestions as to how the latter can be better structured to support policy analysis, in addition to its current operational focus on vessel identification. The Committee will be taking this work forward in its next programme of work.
Trade and Liberalisation
Logistics and e-commerce. The Committee decided, as part of its current 2003/2004 Programme of Work, to undertake a project which will identify, examine and draw conclusions on those logistics elements that are necessary for the seamless transport of containerised maritime freight from origin to destination. It will also focus on elements and processes that are sources of delays or inefficiencies. The project will also attempt a country by country analysis (OECD Members only) to more clearly identify specific policy aspects that would benefit from attention by individual MTC member governments. Work will be commenced this year, subject to available resources.
World Trade Organization. Participants heard that attempts have recently been made to revive the negotiations on Maritime Transport Services, and these appear to be accelerating following a recent series of informal meetings, particularly one held in the margins of the May OECD Ministerial meeting. Members of the WTO are now working to try to establish by July 2004 a “framework” for future negotiations.
MTC Programme of Work 2005/2006
The Committee considered several project proposals, some of which will be included in its draft Programme of Work 2005/2006. This will be finalised within the next few weeks, following a prioritisation exercise of projects to be undertaken through correspondence by Committee Delegates.
Relations with non-Members
At the end of the January 2003 MTC/NME Workshop, the Committee’s non-member partners expressed a strong interest in participating in future forums of a similar nature. The Committee decided to organise a further Workshop in November 2004 with the themes of maritime security (especially supply chain security) and substandard shipping (in particular marine insurance and ship financing). The Committee will be consulting with its non-member partners to establish an agenda.
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