The Maritime Transport Committee has accorded particular importance to promoting quality shipping. It has developed its understanding of the underlying economic factors that lead to substandard shipping through specific analysis of the cost advantages obtained from non-observance of international rules and standards and more recently of the costs to users of substandard shipping. The Committee has sought to actively participate in the campaign against this phenomenon. It has done this through a recent Policy Statement that identifies the key areas for co-ordinated action to eradicate sub-standard ships and an Action Plan which encourages greater awareness, industry self-regulation and transparency of information.
As part of its 2001/2002 Programme of Work the MTC has examined the cost advantages accruing from non-compliance with environmental protection legislation. This project builds on earlier work undertaken by the MTC on the unfair advantages derived through non-compliance with safety regulations. The project examinedinternational maritime environmental regulations and analysed the potential costs savings accruing to those who partially, or totally, avoid those regulations.
International environmental regulations are contained in a number of conventions concluded at the International Maritime Organization (IMO). These conventions provide a comprehensive set of rules covering the carriage, on board safety, prevention of pollution, limits on approved discharges and reporting requirements for all vessels carrying potentially polluting substances. By avoiding compliance with some, or all of these international requirements, shipowners can obtain a competitive advantage over those shipowners that comply with these requirements.
The report was released in February 2003 and the OECD has communicated the findings of the project to the International Maritime Organization (IMO) as the basis for future collaboration on the topic.
