Introduction
Critically analyzing the existing rules, restrictions, and regulations of international world trade is a fundamental milestone before investing in a financial project. The decision to purchase a dry bulk carrier and operate the vessel in the global maritime trade must be based on the legal and regulatory aspects of the industry, as well as the nuances that characterize it. Failure to do so increases the likelihood of a dry bulk carrier seizure, partial or total loss of investment, and a decline in the business’s reputational status. This research work aimed to examine the three key rules that frame the international maritime trade industry, critically analyze the background to their use, and assess the nature of their enforcement. Thus, the generated report is a valuable material of high practical utility as a synthesis of the industry’s most important regulations and documentation, based on which decisions can be made to launch a project.
Brief Background Information
The need to develop regulations, agreements, and legal provisions stems from an initial understanding of how the industry should evolve, as well as from the empirical evidence being generated. More specifically, some of the legal foundations of international maritime trade have been established since the inception of this economic trend. In this sense, all the classical trade rules and laws applicable to other industries also apply to the maritime industry. On the other hand, using ships for transporting goods is associated with severe economic and human risks (Ytreberg, Åström, and Fridell, 2021). Ship sinking has been known to cause localized pollution of marine waters, destruction of marine ecosystems, and loss of human life (Wills, 2022). Consequently, the industry has been compelled to develop responses to mitigate existing risks and foster a safer environment.
COLREG-1972
Overview
As the international maritime trade industry is associated with increased safety risks, the prevention of collisions at sea between ships has received increased attention in the structure of conventions and legal regulations. One familiar document in this context is the result of the Convention on the International Regulations for Preventing Collisions at Sea (COLREG), passed in 1972 and in force by 1977 (IMO, 2020). Strictly speaking, COLREG-1972 comprises 41 rules that govern the behavior of ships on the high seas, including provisions on steering standards, general provisions, and the use of lights and sound signals to prevent collisions. Below are some key excerpts from this convention document.
Rule Description
- 1…the rules apply to all vessels upon the high seas and all waters connected to the high seas and navigable by seagoing vessels…
- 5…every vessel shall at all times maintain a proper look-out by sight and hearing…
- 6…every vessel shall at all times proceed at a safe speed…
- 7…assumptions shall not be made based on scanty information, especially scanty radar information…
- 13… the overtaking vessel should keep out of the way of the vessel being overtaken…
- 33… vessels 12 meters or more in length should carry a whistle and a bell, and vessels 100 meters or more in length should carry, in addition, a gong… (IMO, 2020).
Purpose
In general, COLREG-1972 can be classified as rules governing ship behavior on the high seas, similar to those governing car behavior on the road. The convention resulted in international rules, which means that all 41 legal provisions must be observed by any ship registered in any country on the high seas, regardless of the reason for its registration.
The reason for their introduction seems obvious: the need to reduce the number of collisions between ships, resulting in economic, human, and environmental damage, stimulated the need for regulations. In addition, the reason was also the need to standardize such regulations, as discrepancies and contradictions between the previously existing rules for movement on water could lead to accidents between vessels. Compliance with the standards regulated by COLREG-1972 is accomplished by training seafarers and maritime personnel during the training phase. This is achieved through on-the-job training, for example, in further education and the training of future seafarers in specialized institutions.
SOLAS-1974
Overview
While the COLREG-1972 primarily characterized maritime traffic rules, the International Convention for the Safety of Life at Sea (SOLAS), adopted in 1974, provided more comprehensive solutions to enhance maritime transportation safety. Notably, the first revision of SOLAS was published in 1914 in response to the Titanic cruiser disaster, and the 1974 version is the fifth revision (Morris and Rautenbach, 2019). SOLAS-1974 comprises 14 chapters, each sequentially outlining the requirements for enhanced safety compliance.
Among the key sections is the first, which postulates the rules for ship surveying and the provision of certification of conformity to ensure that the design features of a dry bulk carrier comply with the provisions of SOLAS-1974. Other sections of the convention are based on the assumption that the afloat vessel has been damaged. There is a risk of sinking: chapters II to V successively discuss requirements related to the design features of compartmentalization, fire safety, availability of lifesaving protection and radio communications, as well as routing and logical considerations in the event of a collision. The most contextually relevant chapters of SOLAS-1974 are the sixth and seventh chapters, which frame the rules for improving safety on cargo ships. Below are some of the excerpts from these chapters.
Section Description
- VI The carriage of a particular category of cargo must comply with the code for the goods of that category
- VIIA…contracting governments are required to issue instructions at the national level…
- VII-3a…the packing of dangerous goods shall be: …well made and in good condition…of such a character that any interior surface with which the contents may come in contact is not dangerously affected by the substance being conveyed…capable of withstanding the ordinary risks of handling and carriage by sea…
- VII-7a…in passenger ships, the following explosives only may be carried: …safety cartridges and safety fuses…small quantities of explosives not exceeding 9 kilograms total net weight…distress signals for use in ships or aircraft, if the total weight of such signals does not exceed 1,016 kilograms… (IMO, 2021; IFRC, 2020).
Purpose
The reasons for creating SOLAS-1974 stem from empirically derived data on tragedies and the results of rational judgments on how the safety of ships afloat can be improved. It can be postulated that SOLAS-1974 is, de facto, a product of disasters and simultaneously a response of the international community to reduce such occurrences in the future (Morris and Rautenbach, 2019; Wills, 2022). The rigor of SOLAS-1974 is higher than that of COLREG-1972, so training alone is insufficient to comply with the legal provisions of COLREG-1972. Any ship must obtain compliance certification and continuously implement improvements to address problems and vulnerabilities discovered during regular technical inspections.
MARPOL
Overview
The international maritime trade industry places particular emphasis on the transportation of energy carriers. Collisions and sinkings of vessels involved in the transportation of natural resources can cause severe environmental damage, threaten the survival of marine habitats, and cause serious legal and reputational consequences for the shipping company (Wills, 2022). In 1973, the International Convention for the Prevention of Pollution from Ships, also known as MARPOL, was adopted, which established regulations for enhancing the safety of cargo ships. Although MARPOL covers many aspects related to the transportation of oil and liquid products, for the dry cargo context under consideration, Chapters III and V are most relevant (IMO, 2019). Some of the critical points of MARPOL are shown below.
Section Description
- I-I.1…the master of a ship involved in an incident (…) or other person having charge of the ship, shall report the particulars of such incident without delay and to the fullest extent possible in accordance with the provisions of this protocol…
- III-1.4…empty receptacles, freight containers, portable tanks, and road and rail tank wagons, which have been used previously for the carriage of harmful substances shall themselves be treated as harmful substances…
- III-2…packagings, portable tanks and road and rail tank wagons shall be adequate to minimize the hazard to the marine environment, having regard to their specific contents…
- V-3.1.a… the disposal into the sea of all plastics, including but not limited to synthetic ropes, synthetic fishing nets, and plastic garbage bags, is prohibited… (IMO, 2019; IMO, 2008).
Purpose
MARPOL was created with environmental considerations in mind, specifically to prevent the intentional or unintentional release of waste into the high seas. As the growth in international maritime trade increased the number of people involved, the IMO needed to respond to the increased risks to marine ecosystems, and MARPOL was such a reactive measure. In addition, by the time MARPOL was published, there were already known cases of energy spills and pollution, so there was a need to frame the rules. Compliance with the legal provisions of the convention is achieved through audits and inspections of cargo companies, regular maintenance, and the prompt reporting of incidents. In addition, to comply with MARPOL provisions, maritime companies must utilize safe garbage collection and disposal technologies and comply with regulations regarding allowable emission thresholds.
Conclusion
This paper has focused on studying three landmark regulatory frameworks that govern the rules of international maritime trade. Three convention provisions, namely COLREG-1972, SOLAS-1974, and MARPOL, were reviewed, which successively covered aspects related to rules for the safe navigation of ships afloat, compliance with enhanced safety standards, and pollution prevention. Each act was written based on existing cases of collisions and tragedies afloat, as well as a rational understanding of how to improve the safety of maritime cargo transportation for all parties involved. Investing in a financial project involving the purchase of a dry cargo ship and its subsequent use requires compliance with all three conventions; therefore, all necessary certifications and permits must be obtained from the responsible agencies before launching.
References List
IFRC (2020) International convention for the safety of life at sea, 1974.
IMO (2008) Final act of the international conference on marine pollution.
IMO (2019) International convention for the prevention of pollution from ships (MARPOL).
IMO (2020) Convention on the international regulations for preventing collisions at sea, 1972 (COLREGs).
IMO (2021) International convention for the safety of life at sea (SOLAS), 1974.
Morris, T. and Rautenbach, C. (2019) ‘A new era for marine forecasting in South Africa,’ South African Journal of Science, 115(5-6), pp. 1-2.
Wills, S. (2022) Shipwrecks in 100 objects: stories of survival, tragedy, innovation, and courage. Barnsley: Pen and Sword.
Ytreberg, E., Åström, S. and Fridell, E. (2021) ‘Valuating environmental impacts from ship emissions – the marine perspective,’ Journal of Environmental Management, 282, pp. 1-10.