LECTURE 13 Title:

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BASIC ASPECTS OF SHIPPING POLICIES

OBJECTIVE 1.1 1.2 1.3 1.4 1.5 To explain some types of policy in international shipping To explain the important definitions/issue in shipping policy To identify institutions implementing international shipping policies. To identify some of the instrument in international shipping policies To explain some of the important impact of international shipping policy.

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INTRODUCTION 2.1 2.2 On the one hand international shipping operation involves:.. .. many operational components such as sea-based navigational right, land-based infra-structural support, safety issues as well as environmental matters,.. .. many participating nations with different attitudes and strategies (normally referred to as policies). On the other hand cost in shipping is borne by the consumer and it is believed that free competition induce lower shipping cost. There are a number of policies drafted by international governing bodies, presumably to act as watchdog for international shipping. There are also examples of national and international policies adopted by participating nations which have negative impact to international shipping especially on free competition. Understanding on some policy matters applicable to different aspects of international shipping is important.

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DIFFERENT ASPECTS OF SHIPPING POLICIES 3.1 3.2 The following are basic aspects of shipping policies:.. ..first the Freedom of the Seas,..

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..second the Anti-Trust Policies,.. ..third the Protectionist Policies,.. ..fourth the Open Registry Policies ..fifth the Jurisdiction and Safety Policies.

FREEDOM OF THE SEAS 4.1 4.2 Basically this means free competition in the shipping industry. This is believed to secure a commercial and efficient framework for the further development and smooth expansion of trade and shipping. 4.3 This sometimes is related the to so-called international division of labour which implies that each country should concentrates on producing those goods and services which, due to climate, geography and natural resources it could produce at lower costs.. 4.4 ..which will lead to optimal utilisation of world resources. 4.5 In the context of international shipping this will lead to some countries developing a large and competitive national fleets, serving exporters and importers all over the world,.. 4.6 ..while other nations left the transport of their trade to the foreign shipping companies. 4.7 The Freedom of the Seas is stipulated in the Code of Liberalisation of the OECD ( Organisation for Economic Cooperation and Development ) countries which are of the main element as follows:.. 4.8 ..member countries not to induce policy legislation favouring the use of national flag, either to control of allocation of cargos or giving preferences to national fleets in matters affecting to ship operations,.. 4.9 ..member countries not conclude trade and shipping agreements with foreign countries containing preferential treatment clauses,.. 4.10 ..member countries not to introduce export and import regulations, currency exchange rules, etc that may influence choice of nationality of carrier.. 4.11 .. 4.12