Page 47: of Maritime Reporter Magazine (May 1995)

Tanker Technology — Intertanko

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Uniformity If A Must

Uniformity, in the form of all countries adhering to one set of regulations set by the International

Maritime Organization (IMO), is one of the cornerstones of

Intertanko's laborious effort to help persuade the U.S. to drop the condi- tions set forth under OPA 90 and embrace the international legal re- gime set out in the 1969 Civil Li- ability Convention and the 1970

Fund Convention as amended by the 1992 protocols, agreed at IMO. "We have also seen that indi- vidual states regulate tanker op- eration and even introduce equip- ment and design requirements in excess of international and federal standards," said Mr. Fuglesang. "Lack of uniformity can cause confusion, and that confusion can actually cause safety problems. That is why we give full support to IMO, and that [IMO] is where we feel rules on shipping should be agreed [upon]."

Mr. Fuglesang contends that the issue is further confused by independent states being allowed to create and implement their own shipping rules and regulations. "It drives up costs, and makes it diffi- cult for them [tanker operators] to have different plans to meet differ- ent rules in these different states."

He said such a policy is perceived as short-sighted by many in the tanker shipping industry, and in the long run, such policies could make it less attractive to do business with the individual states.

Intertanko's concern for the long- term well-being of the independent tanker owners should not be mis- construed as a deliberate attack on

U.S. policies alone per se. In fact,

Intertanko has acknowledged that

OPA 90 was passed with the best of motives, and to make a contribu- tion to preserving the natural coastal and sea environment of the

U.S. Mr. Fuglesang also noted that the U.S. Coast Guard (USCG) showed great flexibility when it came to certification rules.

Intertanko shares the goals of safety and environmental protec- tion. It is certain individual facets of the plan, such as unlimited and uninsurable liability and distribu- tion of responsibility, that are the association's causes for concern.

Monay Talks

As with most everything in busi- ness, the key point of contention with OPA 90 surrounds money — specifically, unlimited liability.

The international regime set out in the Civil Liability Conventions, 1969-92, agreed that IMO allows the shipowner to set financial lim- its on its obligation to compensate for oil spill damage, unless the spill was caused through the carrier's "... actual fault or privity."

In contrast, Intertanko points out, OPA 90 says that "... if the

May, 1995 incident was proximately caused by gross negligence ... or the violation of an applicable federal safety, con- struction or operating regulation by ...an agent or employee of the [ship- owner] ..." then the liability of the shipowner becomes unlimited, which Intertanko deems intolerable to the oil tanker trade and finan- cially insupportable.

Embracing the IMO convention, which incurs shared liability among the tanker owner and cargo owner, means that cargo owners might be more selective in choosing the ships on which their cargoes are trans- ported, Mr. Fuglesang reasons.

This in turn would ensure a demand

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