INTERTANKO HELLENIC
FORUM
Report on U.S. Issues and Activities
Jonathan Benner
Troutman Sanders, LLP
Washington, D.C.
Athens, 08 October 2002
Operational Advantage
In A Difficult Environment
ISSUES
• SECURITY
– Vessel and crew access
– Cost of security programmes
– Pollution impacts of world events
• Insurance
– New Coast Guard Role
• REGULATORY
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–
–
–
–
Air emissions from diesel engines
Ballast water control and management
Only Water Separators
Tank Pressure/Level Monitoring Devices
Salvage capabilities
POST - 11 SEPTEMBER
CONCERNS
• Port Security
– Coast Guard Role
– Department of Homeland Security
– Impact on Safety Mission
– Advance Notice Reporting
– Inspections and Escorts
WHAT’S SO SENSTIVE
ABOUT PORTS?
• 2001: 5,400 Ships Make 60,000 Port
Calls
• 6,000,000 Containers Annually, Limited
Direct Inspection
• 95 Per Cent Foreign Trade Is Maritime
• Ports Tend to be in or Near Najor
Metropolitan Centers
WHAT IS U.S. DOING?
• Detailed Vulnerability Assessments of 55
U.S. Ports
• IMO Initiatives by Coast Guard
PROBLEMS
• Divided Authority
– USG controls navigable waters
– States, localities control terminals and inland
• Florida, others?
U.S. TREATMENT OF VESSEL
PERSONNEL
• Who’s in Charge?
– Immigration and Naturalization Service
– U. S. Consular Service, Department of State
– Coast Guard
– U.S. Customs Service
U.S. TREATMENT OF VESSEL
PERSONNEL (continued)
• Is There A Policy?
– Intertanko receives variety of reports
– Variations from port-to-port
• Visa holders
• Persons without visas
– Common threads
•
•
•
•
Crew list visas disfavored
Individual visas required
Certain nations disfavored
Little discretion at local level
U.S. WATCH LISTS
• Approximately 30 Nations on List
– Even visa-ed personnel may encounter
difficulties if from these nations
– List is Classified, includes:
•
•
•
•
Pakistan
Indonesia
Malaysia
Nations of reported al-Quaeda presence
– Evidence suggests additional “problem”
nationalities
U.S. WATCH LISTS
(continued)
– Evidence Suggests Additional “Problem”
Nationalities
•
•
•
•
•
Ukraine?
Burma?
Philippines?
Turkey
Russia?
INTERTANKO OBJECTIVES
• Uniformity and Predictability
• Awareness by U.S. authorities
• Internal Coordination among U.S. Authorities of
Industry Requirements
• Workable, Practical Visa Process
– Application process, duration, cost, must reflect
realities of seafarers’ lives.
• Quality of Life Aboard Vessel
• Maintenance of Ability of Owners to Put
Qualified Personnel Aboard Ships
INTERTANKO OBJECTIVES
(continued)
• Quick and Measurable Reduction of
Number of Negative Incidents Aboard
Vessels.
• Open Communication with Authorities
ACTIONS TO DATE
• Technical Meetings with Coast Guard,
INS, Consular Service
• Top-level Meeting at INS on 3 October
(joint meeting with WSC)
PROGNOSIS
• No “Thunderclap” Solution
• Fairly Rigid Measures for Foreseeable
Future
• Decline in Incidents as USG and Owners
Adjust to New Realities
OTHER SECURITY ISSUES
• AIS Requirements
– Installation on vessels delivered after
1 January 2003, all ships delivered after
31 December 2004
• Vessel Security Plans
– Quaere: relation to ISM, OPA 90
• Customs Requirements
• Terminal Practices
– Restrictions on Crew Access
KEEP IN MIND
• U.S. Has Suffered Serious Attack
• Credentialing of Seafarers is Primitive
• Many Documented Cases of ShipJumping
• Improved Credentialing Will Have Side
Benefits for Top Companies
• Crew Costs Likely Affected
• U.S. Ultimately Must Find Methods That It
can Accept if Applied Against It.
LEGISLATION
• Port Security Legislation
– Funding is difficult issue
• Homeland Security Legislation
• Terrorist/Insurance Legislation
• Appropriations Bills Stalled
LEGISLATION (continued)
• Congress stalled internally
– Close margins between parties
– Partisan disagreement between President
and Congress
– November Elections
• Possibility of “Lame Duck” Session
LEGISLATION (continued)
• Environmental Terrorism
– OPA’s “Responsible Party” Faces Serious
Problems in case of Terrorist Attack
• Coverage
• Who pays
• Liability Limits
• Intertanko and Industry Seek Terrorist
Exclusion and Access to Pollution Funds
REGULATORY ISSUES
AIR EMISSIONS
• Intertanko Participates in Proposed Rule
• U.S. to Adopt Annex VI MARPOL
• EPA Appears to Have Ambitions Re NonU.S. Vessels
• Enviros Controlling Through Court Case
BALLAST WATER
• Awaiting Coast Guard Final Rules
• Legislation Pending
• Technology Trials
• State/Local Governments Are Problem
TANK LEVEL MONITORING
DEVICES
• Devices Required by Section 4110 OPA
– Sensitive to loss of one per cent cargo
– Installed single hull tank vessels by
17 October 2007
• Coast Guard Issues Final Rule
• Intertanko Evaluating Options, Assessing
Impacts
OILY WATER SEPARATORS
• Strict Inspection in U.S.
• Criminal Penalties
• Record Keeping Critical
• ISTEC Action Item
SALVAGE/FIREFIGHTING
• Coast Guard Proposed Rule Requires
Contractual Arrangements With Salvors,
Firefighters
• Shipowner Must Ensure Qualifications of
Contractor
• Intertanko Opposes
• CG Proposes to Build Industry on Back of
Tanker Sector
RECAP
• Security Issues Have Created, and Will
Continue to Create, Problems for Owners
• Legislative Picture Unclear
– Department of Homeland Security (where is
Coast Guard)
– Port Security Act
• Coast Guard Rules Have Large Potential
for Economies of Ship Operations