European Community Shipowners' Associations
D. 3697/10
SF 210
CHINA-EU 7TH IMPLEMENTATION MEETING, XIAMEN 10-11 NOVEMBER 2010
SUMMARY RECORD BY ECSA
MOT: Chinese Ministry of Transport
COM: European Commission
EU Presidency (Belgium)
10th November
1. Introductory remarks
MOT
- Good memory of Marseilles, including visits to port and city
- Recent conference encouraging with all speakers hailing increasing commerce
and thereby growth maritime transport.
- Still challenges and these bilateral should promote industry in sustainable way.
- Presentation Chinese delegates.
COM
- Indeed since last year the economic and trade climate have much improved.
- Good to have had this agreement to support MTS, which has free access to
market as core. This supported the general avoidance of protectionism.
- Important changes on EU side, with the Lisbon Treaty change in workings and
also more integrated representation in third countries.
- Introduction delegates
EU Presidency
- Reference to EU-China Summit and the ASEAN meeting in Brussels, which
included coverage of transport and sustainable logistic management; integrate
MTS in the transportchain, also SSS and inland waterways.
- Offer to organise 10th implementation meeting in Belgium.
MOT
- At EU-ASEAN meeting indeed attention to integration of MTS and especially also
inland waterways. How to come to coherent integration? Will be keen to
participate in the conference on inland waterways in the Netherlands in
December.
COM
- Extension of the agreement with inland waterways would be logical. Better first
follow agenda, then see what can be done.
2(1) Reflagging policies
MOT
- The Chinese fleet operating in international trades is 90% foreign flagged. Major
reason is the import duties on ships. Since year 2008 a three year pilot is running
exempting reflagging from these duties for ships 5-15 years old [not clear what
duties when Chinese built] Major problem foreign flag is FSC issue. Matter still
unresolved and several ministries involved.
COM
- On request explained similar situation in Europe, but while 40% world fleet
controlled, 21% EU flagged. Situation improved since end 80ies. Also loss of
seafarers and some head offices. Two measures had been key:
o Second registers with more flexibility to reduce costs
European Community Shipowners' Associations
o Tonnage tax and social cost alleviation under state aid guideline gives constant
positive effect
The more EU flagged, the better control over fleet quality.
MOT
- Must promote solid and healthy industry, not only safety and environment.
Tonnage tax very interesting and high priority in China. Suggest exchange ideas
and facts.
COM
- Also IMO issues at play, for which effective control is important.
- Outflagging for economic reasons can be understood, but not with an aim to
escape controls
2(2) Class societies
MOT
- Issue also raised in Marseilles. EU Regulation may essentially be a matter of
mutual recognition, but cannot be governed by EU Regulation; must have
multilateral rule. Also other countries having problems with this.
COM
- Try to give satisfactory explanation. Since Marseilles 9 letters from third countries
on three concerns 1) Regulation extraterritorial, 2) Going against safety, 3) Against
freedom of choice shipowner. Quite some misunderstanding; Commissioner
Kallas had responded with explanation.
- There are the sovereign rights of states and of shipowners. Class rules do not
take account of flags. Class as recognised in the EU to meet and agree on mutual
recognition process relating to a) ship specific equipment, b) standard equipment
for all ships, c) intermediate – i.e. what rules to respect at highest standard.
- There rather are problems between Class, while try to benefit safety and contain
costs to shipowners and equipment manufacturers. It is NOT the idea that the EU
tells what China must do, but come to an agreement between Class.
- The Commission is also looking at mutual recognition within IACS when ships
change flag and Class.
- The opposition mainly came from European and American Class fearing to lose
money on this.
MOT
- Thanked for explanation and intentions. However Chinese Class agencies risked
to get squeezed between EU and Chinese rules. It would have been better finding
an international regulation from the start. Maybe China can take part in the
forthcoming conference in London? [is IACS conference, Chinese Class could?]
COM
- Agreed international convention fine and an ideal. If national legislation specifies
something (Chinese, Panamese, …), then it applies. Only when the matter is open
/ non specified, then the highest standard is to apply; to be seen as a process.
Request came from the side of equipment manufacturers, who had to pay all
Class for certification, while Class rather used manufacturers own testing reports.
MOT
- For any kind of new regulation must base on international common practice – aim
to promote good practice, not complicate. The Commission’s aim is no doubt for
the best, but not altogether straightforward / balanced and consulted on. Let’s
keep on the agenda and discuss more in detail.
2(3)
EU 24 hour rule / ESD
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MOT
- Have noted the EU Regulation, but Member States may (still) have differing rules
and IT systems, while implementation is approaching and a grace period would
seem appropriate.
COM
- This is a security issue. There indeed still are some discussions on common
interpretation, which hopefully cleared before year-end. Time being suspension of
fines for operators is under discussion.
2(4) Visa regulations EU for seafarers
MOT and COM
- Exchanged concerns and explanations on differences between Schengen rules
and UK practices for visa requirements seafarers. UK is more stringent and
requiring personal interviews at consulates.
[Industry question on transit visa to be obtained in Chinese ports for repatriation EU
seafarers and taking 3-4 working days , creating problem over weekends, was not
raised ,but handed over by ECSA on paper outside the meeting]
2(5) Sulpher content marine fuel
MOT
- On low (0.1%) sulphur marine fuel at berth in EU ports (EU Directive 2005/33/EC),
industry had warned over insufficient supply to meet this unilateral initiative by the
EU, therefore difficult to implement and COM requested to be flexible for
operators when implementing.
COM
- Advised not having received such complaints as related to use in ports. Already in
December 2009 a guidance for implementation was issued. Now it is rather a
technical matter. After last years comments / concerns by MOT Member States
had been recommended that while the Directive remained in force, leniency was
to be given provided ships had a retrofit plan etc with Class.
MOT
- That was clear, however carriers did have problems to comply with the
requirements in the SECA’s in addition to ports. A practical position was requested
in view of: 1) Why low sulphur rule necessary considering MARPOL? 2) In real
time there are practical problems.
COM
- The Rule dates back to 2005, allowing time. Ports are even stimulating low
(sulphur) emissions with reductions on port dues. MARPOL has no bearing on
ports. In 2015 MARPOL applies in EU SECA’s with US and Canada following
slightly later. For the SECA compliance more fuel is required than in ports, i.e. a
technical and an economic issue, as well as question of availability. Industry is
recommended making an effort. Maybe some grace will be given, but
implementation is certain.
MOT
- The issue of SOx emissions is a major topic and as responsible government much
attention is being given. Started a project promoting cold ironing in major Chinese
ports. Modernisation is also required for inland transport and inland waterways
with financing by central and provincial governments. Therefore understand the
trend and the need for action – there are common objectives. However, in MOT
opinion it is highly preferable having such rules based on an international /
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European Community Shipowners' Associations
multilateral basis. It would be a good idea sitting together from time to time for
discussing such policy matters.
2(6) EU Task Force
COM
- Explained objective of enhancement of competitiveness of the fleet and
employment EU seafarers, which involves a bit of a contradiction on cost basis.
The Task Force , also including academics, expects to come up with facts for a
social agenda by next year. It proves difficult attracting seafarers despite general
unemployment and good pay offered. Will see what recommendations will come
for implementation.
What is the status of China’s ratification of the ILO convention?
MOT
- The government is having similar concerns and is working actively on measures
for employment and high qualifications seafarers.
- On a different issue, seafarers should not be criminalised in the case of accidents.
There is no clear international position on this and appears more matter of civil
law.
COM
- The matter was also raised by industry in the EU. New rules on accident
investigation have been implemented, including third party experts.
2(7) Freight filing and SSE
MOT
- Promulgated regulation on liner freight filing last year and established a dedicated
agency, the SSE. There had been two major reasons:
o In certain liner markets there had been serious distortions like China-Japan with
0 rates or even negative.
o Implementation last year in view of the impact of the global crisis; the liner
market had to be safeguarded and to remain competitive.
After justbobver a year, shipowners, shippers are very happy with the system as
also helpful for the market. Now also NVOCCs to file as per 1 December. On the
whole very beneficial for the liner market.
COM
- Last year had expressed concerns over the workload involved for th lines and the
matter of confidentiality. No complaints had been received, so let’s see how it will
work out in the longer run.
2(8) Relay of International Cargoes
MOT
- It was understood that relay is an important issue for the EU, requiring due
exchange of information.
- On Chinese side a study, including statistical data and analysis had been carried
out by a scientific institute. Various stakeholders, also including shipping
companies and ports had been involved, offering differing views. The relay system
certainly had positive elements, notably for some ports and large container lines.
Nine ports would be hurt though and feeder services heavily affected. The study
estimated that the cost would come to around 1 billion RMB and the benefits
around 750 million RMB. As a consequence, the Chinese side would NOT for the
time being relax its policy. The commitment to the reform policy of open market
access was at the same time emphasized, like for investments in port operations
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and logistics; more good news related to amendments and liberalisation on 100%
FDI in China.
COM
- Also in the EU the opening up also for FDI in ports is gradually progressing.
Interesting to note the analysis of plusses and minuses, underlining the search for
efficiency gains under the agreement.
- In the EU trying to enhance the efficiency of maritime transport operations;
highlighting in this respect the creation of a Common European Maritime Space;
the recent informal Council discussions on waterborne transport and logistics
chains in Antwerp; the open cabotage regime adopted by several EU MS, as well
as the granting of waivers to foreign operators for feedering international cargoes.
These initiatives are also benefiting Chinese operators and from EU side it was
hinted that a pragmatic approach from Chinese side enabling reciprocity in this
respect – within the limits of its legislation - would be welcomed. The line of
approach is general benefit. In such initiative experiencing resistance from
customs side, for losing activity, but there are environmental benefits. The Belgian
Presidency just launched the “Blue Belt”, a project involving EMSA and use of
AIS, LRIT and portcommunity systems, for proving intra EU trades and simplify
procedures and apply the efficiency argument overall.
- Will have a look at the Chinese study on relay. What would MOT like to see for it
to allow relay, what conditions would have to be met? If EU capital were involved,
would that possibly stimulate relay or own feedering?
MOT
- Quite agree and indeed the agreement and the implementation meetings play a
crucial role; good mechanism and should continue.
- Also interested in Blue Belt concept with a view on efficient, safe and secure
transport. China has big plans for environmental friendly transport networks, but in
the meantime have to recon with the trends in globalisation and differences in
economic growth between countries……… The ideal goal would be an open
worldwide market without barriers, but that is a complicated task.
- Fully understand the large EU lines’ ideas on relay, but hope that the lines will
understand that in view of the current economic conditions and regulatory context
this can not yet be offered.
COM
- This should all be seen as an evolution, other elements may come up. In the EU
first have to solve customs issues and will look for resolving problems between
parties, for instance in China look at possible losses for small companies.
However, the main objective must be enhancement of the overall efficiency.
It was agreed that the discussion on efficiency improvements should continue.
Industry session
ECSA
INTRODUCTION (HdM)
 It is an honor and pleasure for ECSA and member delegates to meet again with
the Chinese Ministry of Transport and representatives of the Chinese shipping
industry, together with the delegates of EU Member States and of the European
Commission.
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 The more also a pleasure to visit Xiamen, an attractive dynamic city with an
interesting history as a port and trading partner with several European countries.
 It is an opportunity to meet again between parties that all recognize the
importance of maritime transport. Both, the Chinese and the European shipping
sectors are well developed and front runners in international maritime transport.
Good cooperation is therefore important and beneficial to shipping itself and to
global trade.
 We have had serious problems in most sub-sectors due to the economic crisis.
Luckily the situation has improved and probably faster than most anticipated. Very
remarkable was how the Asia-Europe container liner trades picked up again and
in the China trades also the bulk and tanker sector. The inter Asia trades appear
to have maintained best in the troubled times.
 But there still are threats, some due to uncertainties in the economic
developments around the world, changes in financial markets and other like due to
risks of over-capacities in shipping. We need stability in markets, a balance
between the offer and demand in capacity. The latter is a first responsibility to be
taken on by shipowners, but also by financial institutions and should not be
distorted by shipbuilding subsidies. Ships should only be constructed where there
is an economic need. Industry and governments have their roles to play in this.
 Good mutual understanding and cooperation are most welcome on many fronts:
- Piracy continues to be a major concern and the cooperation between many
nations’ navies is encouraging, but how prevent piracy at its roots?
- The negotiations in the WTO-DDA have not developed according to plan,
although many or most are convinced of the tremendous advantages of solid
and well adhered to international rules for global trade, also in services like
maritime transport;
- Trade facilitation, including customs procedures, but also wider and offering
certainty and transparency;
- The European and Chinese maritime industries have many common interests,
ranging from new technologies and new regulatory requirements to operational
obstacles in third countries like in Africa and South America.
 To end these introductory observations, International trade and especially
shipping are cyclical by nature, but the overall growth we have experienced over
the past 10 years is phenomenal. That certainly also goes for the development in
port- and inland infrastructures in China. Keeping this manageable and
sustainable is no easy task. A sharp eye on overall efficiency continues to be of
prime importance, whereby container networks and interchanges are a good
example.
 We have a few specific points we would like drawing attention to. Several we
already raised before, but we would like to exchange further views and/or get
updates. These will be presented by different delegates on our side, but the
issues raised are common and are not to be seen as company specific; probably
our Chinese colleagues will agree on several points.
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MOT Reactions are inserted in bold Itallic
1. NAVIGATIONAL SAFETY/DANGEROUS CARGOES
Issues and concerns have been raised before, but reportedly the situation is not
improving.
a) Dangerous cargoes
Cases of fraudulent declaration of dangerous cargo from shippers in China have
put our crews and vessels in danger. This is an all too common practice. For
instance, cargo declared as plastic toys could in fact be fireworks. Loading these
containers close to the engine room can be catastrophic. We hope that relevant
authorities in China will:
• Work together with shipping lines to create awareness amongst shippers
about risks related to misdeclaration
• Impose penalties on shippers misdeclaring cargoes on a scale that will
effectively deter fraudulent behaviour.
At our meeting in Shenzhen the MOT recognized the severity of the issue and
observed that a strategic plan would be required.
 The Ministry is kindly asked if and what steps have been undertaken and
where the industry can assist
As a sub-item we would also draw attention to the dangers of the all too often
occurring under declaration by shippers of container weights, which endanger
stowage in the first load ports, but also at sea and when using feeders.
On overweight measures have been taken in [some] container
ports/terminals by weighing equipment. False declaration is clearly
prohibited and this is known to shippers. Whenever experience
contraventions, please complain immediately and punishment will certainly
be executed.
Fireworks exports are increasing; during Shanghai expo very strict rules
and restriction in the area, but now resuming the handling.
b) Navigational safety
Repeat: not a new issue to be raised and for broadest interest
China’s maritime traffic is very intense, involving all sorts of trades and activities.
Navigational risks are increasing which may lead to serious incidents for crews,
severe vessel damage or impact the environment.
 To improve safety at sea, we may suggest the following:
 Special effort is to be made to enforce navigational rules: It is our experience
that often navigational rules are not obeyed in Chinese waters, that many, in
particular smaller vessels, have poor navigation equipment and as a result, that
many vessels are put in dangerous situations.
 Also, we believe that safety can be improved by enhancing the cooperation
between VTS control personnel and foreign vessels. Improving the ability to
communicate in English by VTS personnel would be helpful.
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European Community Shipowners' Associations
At some ports / port areas small ships indeed create dangers. This is well
realised and the Maritime Safety Agency is acting, but very difficult to deal with
effectively. These ships are often ill equipped. Hope that large companies are
prepared to cooperate and assist in resolving the matter.
2. ENVIRONMENT.
This is a most prominent issue, also in the shipping world and notably much
attention goes to:
a) GHG or CO2 emissions – International cooperation in reducing the GHG
emissions of International Shipping is important, between industry,
governments and international institutions.
Allow us to observe:
- Shipping is the most efficient mode of transport in terms of carbon
emissions;
- A regional or other sub-international approach for reducing carbon
emissions cannot work. It would not be cost effective and distort
competition;
- The IMO is the obvious forum in which a solution must be found;
- We are open to ideas like measures based on efficiency;
 From our side we may ask for China as a major shipping nation, together
with the EU and its Member States, for active support for globally binding
standards basis IMO rules. I.e. the same rules for all shipping.
[China is currently supporting the developing nations favoured CBRD
(Common But Differentiated Rules principles)].
b) Pollution response contracts -New regulations on the prevention and control of
marine pollution from ships entered into force in the People’s Republic of
China on 1 March 2010. This concerns the requirement for owners/operators
of any ship carrying polluting and hazardous cargoes in bulk or on any other
vessel above 10,000 gt to conclude a clean up contract with a PRC Maritime
Safety Agency approved pollution response company before entering a PRC
port. This regulation has thus far nor been enforced.
c) We note that in Hong Kong voluntary abatement Sox by using low sulpher fuel
in port is being promoted and finding increasing support by container carriers.
EU carriers also take part and maybe can cooperate on the issue also for
Chinese mainland ports.
 The Ministry can possibly advise us now, or later in the meeting on
implementation of Chinese environmental and climate change legislation.
Ad a) Environmental protection is a very big task and an international
approach (flag neutral) approach is the obvious way ahead.
Ad b) Response given by representative of the Chinese Maritime Safety
Agency: The approved pollution prevention agencies (companies) are really
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qualified. All carriers will know them. For not aware in certain ports please
contact the local MSC [evading reply]
Ad c) Noted
3. AVOID ANTI-COMPETITIVE BEHAVIOR IN CHINESE PORTS
China has the most efficient and largest ports in the World. However,
a) There is a divergence in treatment of domestic and of international cargoes.
Can the Ministry explain the reasons why cargo handling tariff guidelines for
domestic containers are 45-50% lower than tariffs for international containers?
In this way International containers are de-facto subsidizing domestic
transport, which is 100% Chinese controlled.
b) It would be most helpful when the Chinese port monopolies will abide with
Chinese competition law, maintaining harmony.
Ports are indeed highly efficient and competitive, which very important.
Ports are not the same as terminals, where can see liberalisation and FDI.
The mentioned difference between domestic and international cargoes: The
tariffs for international cargoes are low and domestic even lower, which still
stems from the former plan economy, but will become uniform.
4. OPEN UP RIVER SHIPPING TO EU COMPANIES:
River shipping is energy efficient, environmentally friendly and a cost competitive
mode of transport compared to alternative modes of transport. There lies a
strategy for the future especially on the Yangste river ( China policy - Go West).
We are aware of the challenges in permitting foreign participation within river
shipping and we wish to stress, that EU companies are not hoping to introduce
added capacity or vessels under foreign flag.
 We propose it is considered to allow foreign minority investments, say 25%, in
Chinese companies with Chinese flagged vessels.
This aspect falls outside China’s WTO commitments and current policy is to
reserve river operations for Chinese operators. Do understand the interest
to engage, but not yet due for liberalisation. Carriers to contact national
operators to accommodate needs.
5. ROTTERDAM RULES
Issue was also raised last year at the meeting in Marseilles:
The international Convention on the Carriage of Goods (wholly or partly) by sea
was negotiated within UNCITRAL. The Convention was signed in Rotterdam on 23
September 2009 and is now know as “Rotterdam Rules”.
The shipping industry believes that the Rotterdam Rules provide for the necessary
legal certainty and uniformity on the liability of shipowners, shippers and other
maritime performing parties with regard to the carriage of goods at international
level.
 The shipping industry therefore strongly invites China and EU Member States
to sign and ratify the Rotterdam Rules as soon as possible.
The Rotterdam Rules:
- Modernise the current Hague-Visby rules or Hamburg rules, aimed at
replacing these rules.
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Will apply to traditional “port-to-port” and also cover “door-to-door” transport
involving a merchant ship.
- Apply to all transport documents in liner trade
- Include innovative provisions, dealing with e-commerce and provide the same
legal effect to electronic documents as to paper documents.
- Strike a right balance between the liability of shipowners, shippers and other
maritime performing parties with regard to the carriage of goods.
Working on ongoing studies about the necessity to ratify the Rotterdam
Rules.
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6. Dredging
To be considered as industry issue, or Commission rather asking progress and
supportive observations by the delegates from Belgium and/or the Netherlands
The major European dredging firms are associate or full members of ECSA. They
feel and are very much maritime, requiring maritime skills and also being subject to
most if not all international maritime regulations. We would say that the dredging
industry is rather supportive to, than actual construction.
With their extensive knowledge and experience, the European dredgers would like to
contribute more to China’s maritime (transport) development.
For this, they need to have an easier access to the Chinese dredging market as well
as benefit from a fairer fiscal treatment in China.
In concrete terms the following suggestions would help progress on these two areas:

Reduce the non tariff barriers to access the Chinese market, by:
- [Taking into account foreign capital, personnel and equipment for giving
dredging qualification licenses; ]
- Reduced license requirements for Wholly Owned Foreign Enterprises (WOFE)
or Equity Joint Ventures (EJV);
- [WOFE’s or EJV’s] should be allowed to work on projects with the mother
company permits and to execute all types of dredging works in China.
 Reduce the tax on foreign dredging companies to fairer levels, closer to the ones
for the Chinese companies
- reduce import VAT, customs duties and withholding tax for foreign dredging
company working as a chartering company under a Chinese contractor;
- allow temporary import of dredging equipment and use a realistic depreciation
period of 20-25 years for pro-rata taxation).
China follows its WTO commitments. The cooperation between Chinese and
Dutch companies works well – notably using Dutch vessels under charter. The
tax and depreciation issues are very technical and rather pass this for
discussion with financial specialists with the relevant authorities.
Chinese Industry
Commission reaction in bold Itallic
COSCO:
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- Trying to solve own problems, like EU terminals are offering insufficient capacity.
In the crisis period this was less of a problem, but now again. As COSCO applied
for own terminal in Hamburg, but not even a reply had been received. There is a
need as vessels are getting larger and can not be accommodated.
- In Greece took over the terminal in Piraeus and boosted the productivity from 15
to 35 moves with same local personnel [comparison not specified].
- On EU anti trust law observe that without conferences the rates fluctuate
enormously. The EU should better rethink to the benefit of carriers and shippers
alike.
SINOTRANS:
- Difficult doing business in the EU as costs levels are much higher for a forwarder
than in China
Class:
- The Commission had mentioned highest standards. Meaning what? There is no
internationally agreed standard; maybe EU or in member states? Remain
unconvinced of the (need for) the earlier discussed regulation also in the context
of an open market policy.
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The observations of COSCO were well noted, but probably Hamburg
specific as for instance COSCO had made their entry in Piraeus and
other foreign companies also had made FDI around European ports.
The matter of investment and operations permits remains a national and
often even local competence. [Reference made to ports directive effort
with competition within and between ports] Recommend to continue the
efforts. With respect to larger ships and deeper drafts, Hamburg indeed
had its limits, but that was not representative for EU ports.
The SINOTRANS observation was not fully understood, butv indeed,
salary levels in the EU would be higher than in China; this applied to all
forwarders and industries.
On anti trust law, there had been the abolition of the block exemption for
conferences, but consortia were allowed. Price jumps of last year
occurred during the crisis, there was slow steaming, withdrawal of
capacity and therefore the direct link was not so evident.
On Class, there is the class work for member states to engage in flag
state control, and there is class work as and for private companies. The
possible problem with liability under mutual recognition is under study.
As to standards, again this is an evolution. EU’s objective remained to
increase safety.
Developments in the framework of international regulations
(1) IMO
MOT
- Ballast Water Convention: China studied 4 types of technologies for approval
- Ship recycling: China very positive on the convention
- Suggest to continue coordination also on implementation (both issues)
COM
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-
Would welcome earliest ratification ballast water convention; close to 30
signatures. Technology is changing fast. Now 6 have been processed. Some
concerns still exist over discharges by VLCC and ULCCs as well as over
retrofitting.
- Hopeful that the recycling Hong Kong convention can be ratified quickly. There
is the 2008 EU Directive. In 2011 propose to upspeed implementation of most
elements.
- Suggest more contact China delegate and the Commission observer in IMO.
- On GHG, the Commision very much likes an agreement on international level,
preferably IMO and flag neutral . IMO would be easier than market based
instruments. The EU Council do not want shipping to go off the hook, so if no
IMO solution then there is a real risk of a regional approach by the EU. That
would still be flag neutral and Chinese vessels in practice no problem in the
EU as complying, but IMO better. Realise that this is for all a highly political
matter.
MOT
- Must have mature measures on GHG, can not rush this.
COM
- Invited a paper also for internal discussion.
- With reference to the industry observations and that shipping can not be
compared or dealt with in the same way as a factory: On international trade
must have common rules. Must find an intelligent solution.
MOT
- Agree and exchange viewpoints on different occasions. Whatever the
problem, can always find a solution.
(2) WTO/GATS
- Position remain unaltered and both sides work together in Friends Group.
China government is rather looking into the aspects of going west and inland
waterways [relevance in this context not clear, apart from mode 3 maybe].
COM explained that work still aims at conclusion in 2011. Notably Australia
has launched the idea of clustering certain services for giving new dynamism
to the negotiations. All transport modes then together with distribution services
and postal & courier in a logistics or supply chain cluster.
(3) ILO
COM
- Explained that following agreement social partners (ECSA-ETF) Commission
is working on an enforcement Directive for implementing the ILO Convention.
Full ratification all MS still pending.
5 - Commercial presence
MOT
- Informed on an easing of the rules: The main revisions involve the following:
1) the deletion of the provisions for setting up a rep office for certain duration
(3 years/1 year) before a foreign shipping company can set up its wholly
owned subsidiary/sub-branch in China. 2) the deletion of the provisions that a
foreign shipping company has to have a liner service at the port city where he
plans to set up a wholly owned subsidiary/sub-branch in China.
COM
- Very much welcomed
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6 - Maritime Safety
6(1) Piracy
COM
- Piracy is of increasing concern, with different areas involved.
- On Somalia (area) EU set up ATALANTA, also promoting best management
practices. ATALANTA – EUNAVFOR for prevention-deterrent, also using
LRIOT information, while EU ships are reporting in, together leading to less
attacks
- Important objective is capacity building in Somalia’s neighbouring states.
- Problem remains what to do with pirates when captured?
MOT
- Much appreciate all initiatives by EU. Indeed need international cooperation to
combat piracy.
6(2) Energy saving
MOT initiatives for domestic and Chinese flagged fleet:
- Monitoring energy use and emissions
- Energy evaluations systems (terminals)
- Cold ironing
- Phasing out old vessels
- Stimulating new technologies (fund US$ 150 mln)
- Moder n IT on board for enhancing energy efficiency
6(3) Cooperation Inland Water Transport
MOT
- Close cooperation wit the Netherlands .
- On market access and the questions by EU industry, FDI in ports is very
welcome. There are various forms of cooperation, but also sea-river access.
- Discussions last year not really followed up.
Dutch Embassy presentation
- Attached
- Good cooperation and realising that China has longest inland navigation
network
- To improve river and port infrastructures
- Since 2005 a bilateral MOU including RIS First phase 2007.
- Second phase and pilots identified in 2009, including tracking dangerous
cargoes
- IWT very vital and promising sector.
- Also technological exchanges dredging operations and hardware – draft Delta
Yangtze to 12 meters.
6(4) Maritime safety training & capacity building
MOT
- Interested in what learned and developed in the EU on training etc.
- Under (a) framework agreement can possibly send people from Chinese
maritime agencies to the EU for learning on matters as PSC, accident
investigation,seafarer management incl. STCW, MLC. Duration several
months to a year. Under such programme can learn how to better fulfil duties
under international conventions etc. Probably best to have form of
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European Community Shipowners' Associations
traineeships covering both active work and courses at senior level. Costs
would be for account of MOT. Will revert with details
COM
- For such an interesting programme the Commission would have to consult
Member States and EMSA. Propose MOT to prepare a short document with
intentions, some detail, number of people, qualifications and language skills.
MOT
- Good suggestions. For each topic suggest 2-3 persons already trained at
MSA; mostly English spoken.
COM
- Maybe some member States could be interested sending officers for limited
time to China for working on PSC. If so, can explore.
6(5) Port State Control developments
MOT
- Had taken note of the new rules under the Paris MOU. PSC is working well,
including the information system under the Tokyo MOU.
COM
- Observed that the first line of controls is FSC; in second line comes PSC. The
Paris MOU, Tkyo and USCG are working well and closely together, something
to be maintained.
11th November
9 Shipping Policy developments – Competition issues
COM
- The situation and completion policies followed in China are not fully clear, like
on alliances etc. Similar question had apparently been raised also by Korea
and the US
MOT
- The Chinese policies are good for trade and to support good use of capacity.
For a sustainable liner trade – also for the carriers – must have a stabilised
trade- in support of foreign trade. Contesting this would be irrational. So far
only the EU repealed the exemption policy, not China, not the US. The
Chinese policy does not mean that anything is allowed; no misuse of a
monopolistic situation and misusing shippers; no unfair competition.
COM
- Can agree with many of the arguments. Extreme rates, high and low and
strong fluctuations are not good. However, competition, i.e. the EU abolition is
good for the economy. A country like India is now reviewing its policy on this.
With that, note that Consortia are a good thing, but not price agreements. To
quote [a bit too liberal from the press] some liner spokesmen, there is support
for the EU policy, while there are now also noises in the US with a new study
by the FMC, but also in Korea and in Japan. No study on the effects was
undertaken in the EU on the effects of the abolition as it would not be possible
separating the effects from the impact of the crisis on rates and volumes.
MOT
- Took due note of the explanation.
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European Community Shipowners' Associations
-
It is very difficult time for shipping as a whole with many challenges, including
having to lay up vessels rather then operating; all amounting to substantial
costs.
- Must keep in mind the seafarers, enduring a hard life with long and lonely
terms at sea, but at the same time greatly contributing to global welfare.
- Administrators (governments) have to take these factors into account.
- At a very recent shipping conference in China one speaker made the
observation “Stopping shipping for three days equals cutting electricity for
three days”. This was an interesting comparison, which could also extend to
the financial sector. A solid policy is therefore required.
- Also recall the case in April 2009, during the very adverse economic climate, a
large container line advised a large rate decrease by some USD 400 per box.
This had an enormous impact on the own line, other lines as well as trade.
Should the administration then intervene? This stands quite apart from
monopolies or unfair behaviour to be stopped.
COM
- Could MOT explain / comment on the Dalian study and the APEC guidelines?
And what was asked on P&I?
MOT
- The Dalian study was carried out by a university, but the final report is only
due end of the year. Conclusions will be used as reference for Chinese
shipping policy
- On the APEC guidelines on maritime ant-trust, China was participant and
agreed with the conclusions as drafted by a consultant. The proposals are
largely in line with already existing Chinese policy – act when see violation
causing harm to users of shipping services and to the market.
MOT
- In 2004 China (party) asked for entrance to the International Club, but so far
the application has been denied. This looks rather like the IACS practice and
hope that the EU / Commisssion investigation will bring new perspectives
COM
- The IACS case has been closed now, but the P&I case is still in preliminary
stage of collecting information/facts. The matter is dealt with by insurance and
not the transport directorate. If China so wants can next year have (EU) P&I
presence in the meeting.
Closing
- Smooth, friendly, franc and productive meeting with a ‘business’ like
approach. Generally though to have been better meeting then in 2009 in
Marseilles.
- Next year try to have a more practical visit element, when in Copenhagen. Will
try for September (climate)
- See agreed joint minutes
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