Shipowner's Organisations Flashcards
1
Q
Shipowners
International Chamber of Shipping (ICS)
A
- Founded 1921 (took its current name in 1948)
- Principle trade association for the shipping industry
- Consists of national shipowner’s associations across all sectors/trades, representing over 80% of the world’s merchant fleet
- Concerned with technical, legal, employment and trade policy issues affecting international ship operations
- ICS belongs to the International Chamber of Commerce (the Incoterm people), and is also involved in the IMO, ILO, WTO and UNCTAD
- It plays an influential role in the development of international conventions such as SOLAS and STCW
- Absorbed the International Shipping Federation in 2011
- ISF was founded in 1909 as an independent employer’s association dedicated to global maritime manpower issues
- ICS still acts as the international employer’s association for ship operations via its Labour Affairs Committee
2
Q
Shipowners
Baltic and International Maritime Council (BIMCO)
A
- Founded 1905 by shipowners engaged in the timber trade in the Baltic and White Sea – initially to regulate and improve financial outcomes for shipowners
- Has since broadened its scope to all dry bulk globally
- Its membership comprises of over 2000 organisations, including ship owners, operators, brokers, maritime lawyers and P&I clubs
- Its core goal is to facilitate the commercial operations of its members by creating standard forms and clauses (charterparties, BLs etc, both independently and in collaboration with FONBASA/ICS) as well as providing information, advice, and education
- Provides information to ensure that the financial impact of any new regulation on shipowners is fully appraised
- Its documents contribute to trade facilitation and harmonisation and improve contractual standards
- It has recently started teaching courses in maritime centres
3
Q
Shipowners
International Association of Independent Tanker Owners (Intertanko)
A
- Established in 1970
- Main goals are ‘safe transport, cleaner seas and free competition’
- Independent owners control 70% of the global tanker fleet and Intertanko represents 75% of these, making it an effective pressure group
- Membership is open to independent owners and managing operators, and excludes oil companies or government organisations
- Acts as a service association, gathering intelligence and dispensing advise to its membership
- Also involved in documentary work and has pioneered standard CPs for all sectors of tanker chartering
- Takes a keen interest in the maritime safety of tanker vessels and their crews
4
Q
Shipowners
International Association of Dry Cargo Shipowners (Intercargo)
A
- Established 1980, in an attempt to provide Intertanko’s services to the dry cargo sector
- 122 members controlling 1/5th of the world’s fleet
- Their objective is the promotion and protection of their members’ interests
- It considers governmental and commercial policy issues that impact the health of the sector
- It recognises that many associations also cover the interests of the dry bulk sector and under its own constitution will not duplicate the work of others
- Its services include information, advice and representation for members
- They have committees for policy, technical and commercial issues
- It participates in the IMO and the Round Table of International Shipping Associations
5
Q
Shipowners
Oil Companies International Marine Forum (OCIMF)
A
- Established in 1970 as a response to growing public concern regarding marine pollution
- Voluntary association of 109 oil companies, covering crude, clean products, petchems and gas
- Has consultive status with the IMO
- Mission statement – ‘to be the foremost authority on the safe and environmentally responsible operation of oil tankers, terminal and support vessels, promoting continuous improvement in standards of design and operation’
- Known for:
- SIRE: Ship inspection report programme, aimed to address concern over substandard shipping, providing technical and operational information of vessels to prospective charterers
- Maritime Terminal Information System
- Offshore vessel database
- Tanker management and self-assessment programme
6
Q
Brokers/agents
The Institute of Chartered Shipbrokers
A
- Founded in 1911; port towns across the UK had their own shipping exchanges, and decided to form an organisation to maintain the same ethical standards as the Baltic Exchange in London (‘our word is our bond’)
- Gained its Royal Charter in 1920, bringing 2 byelaws into effect: 1) ‘devise and impose means for testing the qualifications of candidates for admission to professional membership by examination’ and 2) ‘exercise professional supervision over the members of the institute and secure for them such definite professional standing as may assist them in the discharge of their duties’
- MICS is awarded to those who pass the PQEs and convince the council they are ‘fit and proper persons.’ FICS is awarded to those who’ve risen to prevalence in the industry; these are allowed to call themselves ‘chartered shipbrokers’
- Since 1920 the definition of ‘shipbroker’ has expanded, and as such the ICS now covers 6 disciplines; dry cargo chartering, tanker chartering, ship sale/purchase, port agency, liner agency and ship operations/management
- In 1984, the Royal Charter was amended, expanding the possibility of membership to those not citizens of the UK or its Commonwealth and allowing for the membership of companies; the ICS can now represent the interests of organisations
7
Q
Brokers/agents
The Baltic Exchange
A
- The Baltic Exchange is a LTD owned by its shareholders on a for-profit basis; its main sources of income are subscription fees and rental offices
- The Baltic Exchange grew from the Baltic Club created in 1823; this originated from the Viriginia and Maryland coffee house (renamed to the Virginia and Baltic coffee house in 1744)
- The Baltic Club merged with the London Shipping Exchange in 1900, forming the Baltic exchange, and moved to the Exchange Building in the same year (this was later destroyed in the 1992 Baltic exchange bombing)
- It’s now the world’s only independent source of maritime market information for trading and settlement of physical and derivative contracts, as well as generating freight indices, real time market information and a database of shipping information for its members
- It has over 600 members, representing most of the world’s shipping interests; these are mostly brokers acting as intermediaries. For a company to be a member, it must be registered in the UK, with a principle who has resided in the UK for at least 3 years prior to application. Individuals and firms/partnerships can also become members under their own names
- Brokers on the exchange must sign a ‘brokers only’ letter, preventing them from trading as individuals on the exchange, and adhere to a strict code of conduct. They must operate a separate bank account for their principles with insurance for errors or omissions and breaches of authority
- It has 15 directors, 12 of whom are elected by its shareholders and 3 selected by membership. The Company Secretary is also their CEO. It has disciplinary powers of censure, suspension and expulsion
- It’s motto, ‘our word is our bond,’ symbolises the importance of ethics in trading, as contracts are often agreed verbally before being confirmed in writing. The principle of ‘treat others as you wish to be treated’ underpins the code of ethics
8
Q
Brokers/agents
Federation of National Associations of Shipbrokers and Agents
A
- Formed in 1969 from European national associations representing liner agents, tramp port agents and chartering shipbrokers
- Membership includes 55 countries; 45 who’s national associations are members and a further 10 with associate/candidate members
- It consults with other national and international bodies, authorities and organisations regarding the interests of aforementioned shipbrokers/agents, as well as coordinating efforts to improve shipping contracts and the exchange of information
- Its chartering and documentary committee revises CPs and other shipping documents, as well as issuing liner and agency agreements, an international broker’s commission contract, a TC interpretation code and a guide to standard port agency conditions
- It has its own competitor to GENCON, the MULTIFORM
- Its key CP revisions include NYPE 93, AMWELSH 93 and NORGRAIN 89; its guiding policy in all revisions is even-handedness between the owner and charterer
- It has consultive status at UNCTAD and its European association deals with the EU
9
Q
Brokers/agents
International Federation of Freight Forwarding Associations (FIATA)
A
- ‘FIATA’ comes from its French name, Federation International des Associations de Transitaires et Assimilies
- Founded in Vienna in 1926, intended to act as a global voice for freight logistics
- Incorporates 40k freight forwarding firms in 150 countries; its membership includes national associations, firms, and individuals
- The objectives are to unite the freight forwarding industry and to represent, promote and protect the interests of the industry through partaking as advisors or industry experts in meetings of international bodies dealing with transportation, as well as to familiarise the trade industry and public at large with the role of freight forwarders
- It is active in the fields of air freight, customs and multi-modal transport
- It is in committees and groups examining the developments in air, sea and rail transport, producing recommended forms of documentation including non-negotiable waybills, dangerous goods declarations, multi-modal transport BLs and warehouse receipts
10
Q
UN Bodies
The International Maritime Organisation
A
- Established in 1948 as the International Maritime Consultative Organisation before achieving its status as an agency of the UN in 1958
- Responsible for the safety and security of shipping and the prevention of pollution
- The governing body of the UN is the Assembly, which meets every 2 years. The Assembly consists of 171 member states and 3 associate members
- Between sessions, a council of 40 member states elected by the Assembly act as its governance
- In addition to the assembly and the council, there are 5 main committees; the Maritime Safety Committee (MSC), the Maritime Environment Protection Committee (MEPC), the Legal Committee (LEC), the technical cooperation committee (TCC) and the facilitation committee (FAL)
- The committees have contributed to the adoption of >30 conventions and protocols which fall under 3 main groups; maritime safety, the prevention of marine pollution and liability/compensation (mostly in relation to damage from pollution). Outside of these three major categories, there have also been protocols regarding tonnage measurement, unlawful acts against shipping and salvage
- In total the IMO has produced over 600 codes and recommendations
- The most important conventions are SOLAS, Marpol (full name International Convention for the Prevention of Pollution from Ships), and STCW (Standards of Training, Certification and Watchkeeping for seafarers)
- SOLAS: covers safety of ship structure, reduction of fire risk/firefighting equipment, lifesaving equipment, radio communications, navigational safety, the carriage of cargoes including dangerous goods, management of ship operations, the International Ship and Port Facilities Code, and polar safety
- Marpol: primarily developed to prevent pollution from ships, and has since expanded to reduce the pollution from carried goods, such as noxious liquids, harmful substances in packaged form, sewage/garbage, and air pollution
- STCW: Prescribes minimum standards relating to training/certification/watchkeeping, which all countries are required to meet or exceed
- The IMO has no power to enforce its conventions itself – these must be adopted by countries who then ratify them into law, which then applies to ships flagged under those states
- Surveying and issuing of certificates falls to classification societies
- The IMO’s conventions have led to a number of successes, e.g. large reductions in collisions where the IMO’s traffic separation schemes have been adopted
11
Q
UN Bodies
United Nations Conference for Trade and Development
A
- The UN body responsible for development, particularly relating to international trade as the main driver of development
- ‘Think, debate, deliver’
- Based in Geneva, governed by 194 member states
- Its shipping division is staffed by a separate dedicated team; it’s achieved mixed success, but two notable achievements are the Non-Mandatory Minimum Standards for Shipping Agents (introduced 1988 and endorsed by almost all members) and its tailor-made maritime training programmes for developing nations
- UNCTAD participated in the development of the UN Convention on Contracts the International Carriage of Goods Carried Wholly or Partly by Sea (2008); AKA the Rotterdam rules
- The Rotterdam Rules provide minimum standards of liability for loss or damage arising from the carriage of goods by sea – it’s intended to replace the Hague-Visby rules, which some see as too favourable to shipowners. A minimum of 20 nations is required to ratify them into law (in progress)
- They have made two attempts to standardise basic clauses in charterparties, which have failed as a large volume of chartering is controlled by those satisfied by current CPs
12
Q
UN Bodies
The International Labour Organisation
A
- Founded in 1919 in the wake of WWI based on the premise that universal and lasting peace can only be established if it is based in social justice
- It became the first specialised agency of the UN in 1946
- Its main aims are to promote rights at work, encourage decent employment opportunities and strengthen dialogue on work-related issues
- In 2006 it completed a consolidation project of all existing international maritime labour law, producing what is known as the fourth pillar of maritime law – the Maritime Labour Convention of 2006
- The Maritime Labour Convention of 2006 came into force in 2013, and covers five areas affecting ship operations; the minimum requirements for seafarers working on board; conditions of employment; accommodation, recreational facilities, and food and catering; health protection, medical care, welfare and social security provision; and compliance and enforcement
13
Q
Ship Classification
International Association of Classification Societies
A
- Of the 50 classification societies globally, the largest 12 are IACS members, covering 90% of the world’s cargo carrying tonnage
- Its main purpose is to promote consistency, rules and standards of classification, design, construction and through-life compliance by member societies
- IACS has a code of ethics it expects members to follow, which promote transparency within the classification system – member societies can and have been suspended for failing to meet the IACS ethical standards
- It attempts to address conflicts that arise between the commercial aspects of classification society work and upholding high standards on its members’ tonnage
- In order to obtain IACS membership, societies must satisfy demanding criteria regarding their QMS and procedures
- Members: American Bureau of Shipping (ABS), Bureau Veritas (BV), China Classification Society (CCS), Croation Register of Shipping (CRS), Det Norske Veritas Germanischer Lloyd (DNV GL), Indian register of Shipping (IRS), Korean register (KR), Lloyd’s Register (LR), Nippon Kaiji Kyokai (NK), Polish Register of Shipping (PRS), Registero Italiano Navale (RINA), and the Russian Maritime Register of Shipping (RS)
- It has had to deal with much criticism over the classification system following high-profile maritime accidents involving ships registered by one of its member societies, whereby the vessel’s certification was called into question
14
Q
Ship classification
Lloyd’s Register
A
- The Lloyds Register is the oldest classification society, dating back to 1760 – as such, its activities define the basic activities of all classification societies
- It’s a not-for-profit, and its income comes from ship classification, engineering services, and quality assurance (QMS ISO 9001 assessment)
- They are separate from the Lloyds corporation, although share the same origin in Lloyds Coffee House, where insurance underwriters would gather information on ships. A register of this information was first published in 1764, however in 1797 a dispute prompted shipowners to create their own separate register. This dispute was resolved and the two registers merged in 1834, forming today’s independent classification society
- Its research and technical advisory services provide advice to the shipping industry; it’s first Global Technology Centre was established in the university of Southampton in 2015, with a sister centre later opened in Singapore
- Its investigation department deals with problems involving technical issues in ships, and maintains a register of failures in vessels included in its register. These records can be consulted prior to buying a ship on the second hand market
- Lloyd’s register of ships is published annually by the IHS (now part of S&P) as well as being available in an online database
- Maintaining a ship ‘in class’ requires surveys every 5 years which inspect the hull and machinery, with 1500 inspectors worldwide
- Lloyds has also expanded into other specialised services such as approving naval architect’s plans, computer testing of hull design and advice on engine lubricants
15
Q
A
