ANNUAL REPORT 2005-2006

03

annual report 2005-2006

ECSA AS AN
ORGANISATION
ECSA, formed in 1965, comprises the national shipowner associations of the EU and
Norway.

ECSA works through a permanent secretariat in Brussels and a Board of Directors, as well
as a number of specialised committees.

Its aim is to promote the interests of European shipping so that the industry can best
serve European and international trade and commerce in a competitive free enterprise
environment to the benefit of shippers and consumers.
04
TABLE OF
CONTENTS
ECSA

FOREWORD BY THE PRESIDENT 6

EUROPEAN SHIPPING IN A GLOBAL MARKET 8
ECONOMIC AND TRADE DEVELOPMENTS 8
SHIPPING MARKETS AND THE EUROPEAN FLEET 8
OUTLOOK 9
EUROPEAN TRANSPORT POLICY 10
REVISED WHITE PAPER ON TRANSPORT POLICY 10
A FUTURE MARITIME POLICY FOR THE UNION 10
MARITIME INDUSTRIES FORUM (MIF) 12
SHORT SEA SHIPPING 12
Marco Polo Programme 12
Trans-European Transport Networks (TEN-T) 12
Mid-Term Review of the 2003 Programme for the Promotion of Short Sea Shipping 14
EUROPEAN PORTS POLICY 14
SECURITY 16
SUPPLY CHAIN SECURITY 16
ADVANCE CARGO DECLARATION 16
SAFETY AND ENVIRONMENT 18
THIRD MARITIME SAFETY PACKAGE 18
ENVIRONMENT 19
Air Emissions 19
EU Thematic Strategy for the Protection of the Marine Environment 20
Ship Recycling 20
THE HUMAN ELEMENT 22
MARITIME LABOUR CONVENTION 23
MARITIME EMPLOYMENT 23
MAINTAINING EU MARITIME KNOW-HOW ESSENTIAL FOR EUROPE 23
PIRACY AND ARMED ROBBERY 25
MARITIME EXTERNAL RELATIONS 26
WTO-DDA NEGOTIATIONS SUSPENDED 26
EU BILATERAL TRADE RELATIONS 26
BILATERAL MARITIME RELATIONS 26
 TABLE OF CONTENTS 05

annual report 2005-2006

APPLICATION OF EU COMPETITITION RULES ON MARITIME SERVICES 28
LINER SHIPPING 28
TRAMP SHIPPING 28
LEGAL ISSUES 30
CRIMINAL SANCTIONS FOR SHIP-SOURCE POLLUTION 30
PROPOSAL FOR A DIRECTIVE ON CIVIL LIABILITY AND FINANCIAL SECURITIES FOR SHIPOWNERS
(MARITIME SAFETY PACKAGE III) 30
PROPOSAL FOR A REGULATION ON THE LIABILITY OF CARRIERS OF PASSENGERS BY SEA
AND INLAND WATERWAYS IN THE EVENT OF ACCIDENTS 31
PASSENGER SERVICES 32
PASSENGER RIGHTS 32
TAXATION – PROPOSED SUPPLY OF SERVICES DIRECTIVE 32
TRAVELLERS ALLOWANCES 32
RESEARCH & DEVELOPMENT 34
EU MARITIME INDUSTRIES TO STAY ON THE INTERNATIONAL FRONTLINE 34
INTERNAL MARKET ISSUES 36
ENLARGEMENT 37
EUROPEAN CONSTITUTION/CONVENTION 37
ECSA INTERNAL 38
ECSA SECRETARIAT MOVES TO NEW PREMISES 38
ANNEX 1 40
ECSA STRUCTURE 40
ANNEX 2 44
ECSA MEMBERS ADDRESSES 44
ANNEX 3 46
SHIPPING IN ECSA MEMBER COUNTRIES 46
ANNEX 4 55
GLOSSARY 55
ANNEX 5 56
STATISTICAL TABLES 56
06
FOREWORD
BY THE PRESIDENT
ECSA
EUROPEAN SHIPPING KEY FOR EUROPEAN
AND GLOBAL TRADE
The past year was generally a good one for shipping. World
seaborne trade continued to increase and rate levels were
overall healthy. European shipping continued to play a key role
in global maritime trade with a controlled fleet of almost 41 %
of the world merchant fleet. European shipowners are active in
all the different shipping sectors offering maritime services
intra Europe, linking Europe with its main trading partners and
in cross trades between different continents.
The global economic outlook for the remainder of 2006 and for
2007 remains still positive but may of course be influenced by
political factors. For shipping optimism is also warranted,
however, factors such as imbalances in trade, high oil prices
and phasing in of newbuildings may have some negative impact
in some sectors.
A REALISTIC APPROACH IN TRANSPORT POLICY
WELCOMED
The past year was marked by Commission initiatives to review
EU transport policy papers. A constructive consultation
process on the mid-term review of the 2001 White Paper on
Transport Policy resulted in a realistic approach taking into
account experience gained and the suggestions of industry. It
is recognised that efficient transport capacity is a key element
to apply the Lisbon Policy aiming at making Europe the most
competitive economy of the world. In this context investments
in ports and hinterland connections enabling multimodal
maritime services to contribute to quality logistic chains are
essential.
The review of the action programme on the promotion of short
sea shipping demonstrated the successful development of this
transport mode. Action should now concentrate on further
improvements on structural hindrances.
ECSA looks forward to further constructive discussions with the
EU Institutions and stakeholders on applying the policies as
suggested. This includes the debate on a European Port Policy
that has been launched again in June 2006.
A FUTURE MARITIME POLICY FOR THE UNION
ECSA is encouraged that the June 2006 Green Paper on a Future
Maritime Policy, launching a debate on a broader maritime
policy, recognises the importance and the economic potential
of the maritime dimension in Europe. The paper recognises the
essential role that shipping services have for the European
economy and for the daily lives and wealth of European
citizens. This is heart-warming, particularly taking into
account that this is often ignored by the European citizens at
large.
ECSA will directly contribute to the consultation process and
ensure that the role of maritime transport and ports in the
logistic chains that link the single market to the world econo-
my is safeguarded. Shipping and ports should be able to work
and expand taking into account the global environment that
they are operating in.
SHIPPING A SAFE AND ENVIRONMENTALLY FRIENDLY
INDUSTRY
The third Maritime Safety Package anticipated in last year’s
annual report was issued in November 2005 and is now going
though the institutional discussion process. The reactions of
the industry are in general positive and supportive, though
some problems may arise in respect of national competences.
Concern has been expressed on the proposal on Civil Liability.
The industry recommends a realistic approach that should in
the first instance concentrate on the ratification and applica-
tion of existing legislation laid down in the IMO. New legisla-
tion should only be introduced if it has clear added value.
Though it is recognised that shipping is an environmentally
friendly transport mode, the industry is committed to further
improving its environmental performance. It should, however,
be realised that a holistic international approach to find an
overall environmental benefit for the long term is the only
effective solution.
SECURITY
Now that the ISPS Code and the relevant EU Regulation and
Directive are in force for some time, the main attention has
focussed discussions on the implementation of the security
measures contained in the Customs Code, particularly to
advance cargo declaration. An industry coalition of transport
industries has made a number of detailed submissions aimed
at having an efficient security checking system thereby avoid-
ing unnecessary bureaucracy. The exercise has been difficult in
view of its complexity. ECSA hopes that the useful suggestions
made by the transport industry coalition will be taken into
account.
MARITIME LABOUR CONVENTION WELCOMED
ECSA welcomes the adoption of the ILO Maritime Labour
Standards Convention in February 2006 as a global solution for
a global industry. The social partners ETF/ECSA are examining
 FOREWORD BY THE PRESIDENT 07

annual report 2005-2006

in a Social Dialogue Working Group all aspects of a possible
incorporation into EU law. The priority for ECSA is that the
Convention is ratified as soon as possible by the required
number of States allowing early application.

Efforts to maintain maritime know-how in Europe by attracting

young people for a maritime career are continuing. This is in
line with the Transport Council Conclusions adopted under the
UK Presidency in December 2005. An outward looking approach
on maritime employment, taking into account that European
shipping is working in a global market, is essential. In this
context, it is evident that restrictive and/or labour protection-
ist measures are very unhelpful and would have the opposite
effect to that intended.

NEW ECSA PREMISES FOR BETTER SERVICES

AND CONTACTS
The office occupied ECSA in rue Ducale 45 in Brussels for more
than 19 years became too small. Hence ECSA has moved to
larger premises in rue Ducale 67 with larger meeting facilities
offering a better service to the membership and allowing better
contacts with the European institutions and industry stake-
holders.

With a hectic programme of consultations on policy issues,

ECSA will further enhance its cooperation with Member States,
the Commission, the European Parliament and the industries of
the maritime cluster.

We have a common interest in securing a good future develop-

ment.

Lennart Simonsson
08
EUROPEAN SHIPPING
IN A GLOBAL MARKET
ECSA

Continuing growth with changing trade patterns and
positive outlook
ECONOMIC AND TRADE DEVELOPMENTS
Overall 2005 was outright good for shipping and showed a gener-
al solid economic growth of 3,3 %, just a bit slower than in 2004,
but above decade average and in spite of higher prices for energy
and other commodities. Core inflation stayed low, but concerns
began to mount about the growing imbalances in the global
economy. World trade growth decelerated after the 21% boom in
2004, but still increased by 13%, for the first time surpassing US
$ 10 trillion. The increasing oil prices notably pushed up the
export values of the producing countries in Africa, Middle East
and the CIS. China continued its particular role with a growth in
GDP of about 10%, continued growth in exports by 25%, but
imports halving to 11,5% over year 2005. In real terms, discount-
ing price changes, the volume of World trade in goods grew by 6%
with an outlook of 7% for 2006, according to WTO reports.
SHIPPING MARKETS AND THE EUROPEAN FLEET
In terms of trade and ocean transport demand several regions
and countries demonstrate quick development, such as Latin
America, India and especially China taking a particular place.
In both exports and in imports China now ranks third after the
EU and the US. According to WTO data China’s exports in value
terms amount to about 57% of what EU exports and 38% of what
the EU imports. China accounts for 42% of iron ore trade carried
by sea, but (still) for less then 8% of oil demand – the US is the
dominant oil importer with 25%. China’s container trades
across the World and intra-Asia continue to burgeon, having a
strong influence on the employment of increasing capacity.
International seaborne trade volume in 2005 increased 3,9% and
maritime transport in tonne-miles grew by 4,7% to about
28.868 billion tonne-miles (+6,7% in 2004). Volumes were as
always dominated by the rather low value bulk commodities, oil
trade and dry bulk shipments went up by 2,4 and 4,7% respec-
tively. LNG shipments continued their increase with about 10%.
Container transport increased by 10,2% to 115,7 million full TEU
end to end moves, of which 36,4 million in the main East/West
ocean trades, about 20 million TEU in the North/South trades
and regional trades counted some 45 million TEU out of which an
estimated massive 33-35 million in intra-Asia trades. Global
port handling in 2005, including empties and transhipments
came to some 399 million TEU, of which 76 million in West
Europe. Rates in the dry and liquid bulk sectors were volatile
but remained healthy on average. Container trades and char-
ters came under rate pressure by end of the year and early 2006,
under threat of imminent large new capacity, but demand
notably in the Far East has at least for the time being easily
absorbed the new capacity.

YEAR EEA WORLD EEA AS % OF WORLD TONNAGE

N° MN. TONNES N° MN. TONNES
1990 7,659 72,326 GRT 38,221 383,96 GRT 18,8
2000 6,783 84,351 GT 45,023 518,22 GT 16,3
2004 9,291 152,709 GT 46,551 584,3 GT 26,1
2005 9,047 154,332 GT 46,801 618,11 GT 25,0
2006 9,037 156,907 GT 48,096 660,75 GT 23,7

WORLD SEABORNE TRADE

31000
Tonnes-Miles

24000

17000
1990 1998 2006
Year
 EUROPEAN SHIPPING IN A GLOBAL MARKET
EEA shipowners continued their strong presence with a control of
40,8% of the World fleet measured in gross tonnage. The EEA
registered fleet increased by some 2,5 million GT or 1,7%, repre-
senting almost 24% the World fleet, which itself increased by 6,9 %.
OUTLOOK
The economic outlook for the remainder of 2006 and for first half
2007 is for a continuation of rather strong growth. However,
there are also negatives and risks, investment levels remain low,
there are unprecedented imbalances in current accounts and for
varying reasons the oil prices remain very high. Growth in World
trade is estimated to reach a higher 7% and GDP to increase by
about 3,5%. Economic development and industrial output will
not be equally spread between regions and countries, resulting
in a continuing shift in trade flows and in imbalances. In the
09
annual report 2005-2006
course of 2005 China introduced a controlled floating of its
currency; China’s record trade surplus increase over first half
2006 by 55% to US$ 61,5 billion compared to same period last
year, adds to further pressure for revaluation of the Yuan.
The underlying factors of economy and international trade
warrant a positive outlook for maritime transport and the ship-
ping sector as a whole. The suspension of the WTO negotiations
is most regrettable but should on the short term not have a
negative impact on global trade. However, there are as always
threats and uncertainties to reckon with. High oil prices, but
also restrictive regulations on air emissions may have their
economic impact on deep sea and intra European short sea
shipping. Imbalances are costly, while too limited capacities of
ports and hinterland connections risk congestion and high costs.
Many will closely watch the impact of the phasing in of new-
buildings, especially the very large container vessels.
10
EUROPEAN
TRANSPORT POLICY
ECSA
REVISED WHITE PAPER ON TRANSPORT POLICY
Realistic approach welcomed
On 22 June 2006, the Commission approved a Communication on
the mid-term review of the 2001 White paper on European
Transport Policy.
In the renewed agenda the overall objectives of transport policy
are confirmed notably a competitive, secure, safe and environ-
mentally friendly mobility, fully in line with the revised Lisbon
Policy agenda for jobs and growth. The previous policy of uncou-
pling growth in trade and growth in transport is abandoned. Growth
of efficient and sustainable transport is considered essential. The
modal shift should develop on the basis of optimising the perform-
ance of the relevant transport modes. This new policy is in line with
the suggestions made by the maritime industries through the MIF.
As far as maritime transport is concerned particular attention is
drawn to known areas such as the growth of short sea shipping, the
necessity of investments in ports and hinterland connections, the
possible creation of a common European maritime area, the appli-
cation of the ILO Convention, strengthening the functions of EMSA,
and the development of a strategy for freight transport logistics.
The revised White Paper on Transport Policy was followed by the
publication of a Commission Communication on Freight Logistics
on 28 June 2006. The Communication will be the basis for an
Action Plan for Freight Transport Logistics, which is expected to
be issued in 2007.
The Communication proposes, amongst others, to set up a group of
National Focal Points to identify and solve bottlenecks hampering
development of freight transport logistics. It is also proposed to
improve tracking and tracing, to build logistics terminals and to
establish a dedicated rail freight network. Furthermore, it is envis-
aged to harmonise transport documents and liability regimes of
the transport modes.
Freight logistics will be a priority item of the Finnish Presidency having
taken over from Austria in 1 July 2006. The statements made by the
Finnish Transport Minister Ms Huovinen on July 12 in the European
Parliament Transport Committee that intermodality should not be
seen as an objective in itself but as a tool that could be used to
achieve better logistics, are in line with the views expressed by the MIF
Group Transport coordinated by ECSA in its statement of March 2006.
ECSA welcomes the new approach and looks forward to an ongoing
constructive exchange of views with the EU Institutions and stake-
holders.
A FUTURE MARITIME POLICY FOR THE UNION
European shipping a corner stone of European and global
trade
ECSA appreciates the initiative of the Commission to launch a
broad exchange of views leading to overall European maritime
policy starting with the issuing of the Green Paper on a Future
Maritime Policy for the Union on 7 June 2006.

ECSA is encouraged that the Green Paper recognises the impor-
tance of and the economic potential of the maritime dimension
of Europe. The Paper stresses the essential role that shipping
services have for the European economy and for the daily life and
the wealth of EU citizens. As mentioned in the Green paper this is
often ignored by EU citizens.
Indeed, 90 % of European external trade and over 40 % of its
internal trade are transported by sea. The European maritime
clusters are the biggest in the world. Maritime transport is the
catalyst for the maritime clusters.
Maritime transport and ports are recognised as key elements in
the logistic chains which link the single market to the world econ-
omy. Their efficiency is crucial for the competitiveness of the EU
in a globalising world. It is therefore no surprise that shipping
services and ports are identified as growing sectors and as key
elements of the Lisbon Policy making Europe the most competi-
tive trading entity in the world.
ECSA strongly feels that these basic facts cannot be ignored in a
future maritime policy for Europe and in particular in looking for
the right balance between the economic, social and environmen-
tal dimensions of sustainable development.
Shipping and ports should be encouraged to expand to serve the
needs of European and global trade. Congestion in ports and other
bottlenecks that hinder efficient services should be taken care of.
Investments in ports and in hinterland connections should be
made giving Europe efficient and seamless logistic chains. The
EUROPEAN TRANSPORT POLICY 11
annual report 2005-2006
growth of short sea shipping during the last decennium should be
further enhanced in an integrated European transport system.
By its very nature shipping has always been a global industry.
Globalisation of trade has enhanced this global role and charac-
ter of shipping services. This de facto global character and nature
of shipping services has to be taken into account on all fronts. The
Green Paper recognises sustainable development necessitates
developing universally applicable rules.
The competitive framework of European shipping should con-
stantly take into account the global competitive environment
that shipping is operating in. This is also key as far as employment
is concerned. Whilst efforts are taken to maintain maritime know-
how in Europe, labour flexibility in the global labour market that
shipping is operating in is essential. Restrictive and/or labour
protectionist measures would have counterproductive results
towards employment and maintaining maritime know-how. It
should also not be overlooked that the main employment in the
maritime industries is ashore and not at sea.
In line with the policy promoted by Vice President Verheugen the
Green Paper stresses that action at EU level should be undertaken
only when it contributes value-added. In this context additional
bureaucratic layers should be avoided. This should be taken into
account when considering questions such as on an optional
European register and a European coast guard.
An efficient and effective EU maritime external relations policy
should safeguard a good working international framework for
12
ECSA
shipping services. The Maritime bilateral agreement with China
has established a good working framework for constructive
maritime relations with China. ECSA hopes that a bilateral agree-
ment with India can be agreed upon as well.
The Green Paper recognises that shipping is the most energy
efficient and environment friendly mode of transport in Europe.
Nevertheless, as mentioned in the chapter on safety and environ-
ment of this Annual Report the shipping industry is working on
further improving its performance on emissions.
ECSA welcomes the recognition in the paper that shipping is
international requiring global rules, and shares the view that
Member States should ratify internationally agreed Conventions
and ensure that they are properly enforced. A strong and
efficient International Maritime Organisation (IMO) is essential
for shipping as a global business. Therefore EU policy should aim
at reinforcing the role of IMO and its efficiency.
The Green Paper will now go through a consultation period of one
year. ECSA looks forward to an active and constructive consulta-
tion process.
MARITIME INDUSTRIES FORUM (MIF)
Clear Recommendations
The group Transport of the Maritime Industries Forum (MIF)
continued to work on a practical basis concentrating on the main
transport policy proposals of the Commission.
Recommendations were made on the mid term review of the White
paper on Transport Policy and on Logistics for promoting Freight
Intermodality. It is encouraging to note that the Commission has
taken the recommendations into account particularly in recog-
nising that growth in economy cannot be uncoupled from growth
in transport and in accepting a commercial approach in promot-
ing intermodal transport. On the latter point the MIF also
stressed the importance of sufficient and efficient infrastruc-
ture, the need for one stop administrative shopping and single
window, the need for a realistic approach on the 45 ft containers
and the necessity of an international approach through UNCITRAL
on multimodal liability.
The MIF will meet in Plenary on 5/6 October in Oslo with as a main
theme an exchange of views on the Green Paper on a Future
maritime Policy. Vice President Günter Verheugen and Commission
Joe Borg will attend the plenary meeting.
SHORT SEA SHIPPING
Marco Polo Programme
In May 2006, an agreement was reached on the Commission
proposal for a Second Marco Polo programme.
The Marco Polo II programme pursues the same objectives as the
First Marco Polo programme, i.e. granting Community financial
assistance for start-up, catalyst or common learning actions with
an aim at reducing road congestion, improving the environmental
performance of the freight transport system and enhancing
intermodal transport. However, the second programme includes
two new types of action (i.e. Motorways of the Sea and Traffic
Avoidance actions) and it has a larger scope of application,
covering also EFTA countries, Russia, Belarus, the Ukraine, the
Balkans and the Mediterranean Region.
The programme will run from 1 January 2007 to 31 December 2013
with an overall budgetary envelope of € 400 million instead of an
initially proposed envelope of € 740 million. This reduction is a
result of the reduced overall EU Budget for the period 2007 – 2013.
Trans-European Transport Networks (TEN-T)
In July 2005, the Commission adopted a series of measures to
speed up the completion of the trans-European Transport
Network. The measures included, amongst others, the nomination
of six European coordinators to facilitate the implementation of
the key priority TEN-T projects.
The Commission also proposed to set up a Trans-European
Transport Network Executive Agency with an aim to providing the
Commission with technical expertise, to take care of the technical
and financial management of TEN-T projects and to manage the
funds available under the TEN-T budget.

In December 2005, the High Level Transport Group on the Extension
of Major trans-European Transport Axes to the Neighbouring
Countries submitted a report in which priority transport axes and
measures to connect the EU with its neighbouring countries were
identified. The aim is to remove physical and administrative
bottlenecks along main transport axes, to facilitate cooperation
and communication between national authorities in the different
countries, to harmonise documents and procedures, etc.
As regards maritime transport, the High Level Group recommend-
ed harmonizing the Paris, Mediterranean and Black Sea
EUROPEAN TRANSPORT POLICY 13
annual report 2005-2006
Memorandums of Understanding, ratifying and implementing
international standards and conventions fully and timely,
improving the quality of port infrastructure and services and
implementing regular frequency of shipping services (at least
once a week) operating on the Motorway of the Sea.
The total cost of all proposed projects is estimated at
€ 45 billion, of which € 35 billion should be found between 2006
and 2020, primarily financed by the countries concerned and by
international financing institutions, complemented with support
from the EU.
14
ECSA
The recommendations made by the High Level Transport Group
may be reflected in a Commission Communication later in 2006.
Mid-Term Review of the 2003 Programme for the
Promotion of Short Sea Shipping
Promotion and growth to continue
In July 2006, the Commission adopted a Mid-Term Review of the
2003 Programme for the Promotion of Short Sea Shipping. The
review evaluated the results of the 14 actions that were intro-
duced in the 2003 Commission Communication for the Promotion
of Short Sea Shipping. The 14 actions are aimed at enhancing the
efficiency of Short Sea Shipping in Europe. They included uniform
reporting formalities for ships to enter or depart from EU ports,
guidance for successful Short Sea Promotion Centres which offer
advice on the use of Short Sea Shipping and the elimination of
obstacles that hinder the development of Short Sea Shipping.
The Mid-term review concluded that the 14 actions have been quite
successful but advocates Member States, the industry and the
European Short Sea Network to continue to work on remaining
obstacles. To that end, it is proposed to retarget some of the 14 orig-
inal measures in order to work towards making the first high-quali-
ty Motorways of the Sea operational in Europe by 2010, to examine
the possibility of extending the scope of short-sea promotion
towards the promotion of multimodal solutions in inland transport
as part of the overall logistics chain and to improve the integration
of the mode in the multimodal logistics supply chain to coincide with
the modern image that Short Sea Shipping has already acquired.
Having been at the origin of the promotion of short sea shipping
and being actively involved in its further expansion, ECSA will
further contribute to the ongoing work of the action programme.
European shipowners have invested heavily in the development of
short sea services resulting in a wide network of motorways of the
sea. It is evident that the competitive position of this network
should not be endangered by artificially created services.
The Mid-term review also stresses the need for standardised,
more efficient and stackable equipment that facilitates the
transfer of freight from one transport mode to another in the
context of the proposed Directive on intermodal loading units.
Such standardization should lead to more efficient and produc-
tive logistics chains in Europe.
The Mid-term review notes that Short Sea Shipping plays a key
role in ensuring sustainable mobility and contributes, amongst
others, to alleviating congestion and environmental pressure
caused by freight transport. Short Sea Shipping is an integral part
of the logistics chain in Europe’s transport system.
Between 1995 and 2004, the ton-kilometre performance of Short
Sea Shipping in the EU-25 grew by 32 %, while road performance
grew by 35 %. Short Sea Shipping performs 39 % of all ton-
kilometres in the EU-25 while the share of road is 44 %. The
fastest growing segment of Short Sea Shipping is containerised
cargo with average yearly growth rates of 8,8% since 2000.
EUROPEAN PORTS POLICY
Ports key in the supply chain
The saga relating to a European Ports Policy took yet another turn
in 2005/2006. Starting in 1997 with the Green Paper on a port
policy, it led to a proposed Directive I on market access to port
services that was rejected by the European Parliament in
November 2003. Also a proposed Directive II that was brought
forward by the Commission in October 2004 was rejected by the
European Parliament in January 2006. Eventually the Commission
withdrew Directive II in March 2006, launching at the same time
an general debate on an overall European Port Policy.
It is appreciated that the launched debate is based on a broader
approach looking at three key points:

Free market access and modernisation/liberalisation of port
services;

Port capacity and hinterland connections.

Funding, transparency and state aid guidelines.
For the shipping industry there are two items which need to be
addressed with priority.

Firstly the necessity of appropriate port capacity and adequate
hinterland connections. This is recognised by all. A new European
Port Policy should encourage investments in port capacity.
Therefore, in further policy making, concession periods for
investments in terminals should be sufficiently long to attract
investments allowing a decent return on capital.
Realism is also essential in the well known conflict between envi-
ronmental and economic considerations that are facing ports in
expansion projects. In this context the fundamental role of
maritime supply chain services for European and global trade and
indeed for daily lives is often overlooked. European wealth is
depending on maritime services. This is a clear common interest
and should be dealt with as such. This environment friendly
transport mode very much depends on expansion of ports and
efficient hinterland connections.
Secondly, liberalisation/modernisation of port services on which
the views of the shipping industry are still the same. Action on this
key issue is still necessary. This does not mean that all European
ports are inefficient today. However, there is definitively room for
improvement. This is not a theoretical statement. In the bottle-
neck exercise on short sea shipping that is constantly being updat-
ed it is clear that many cases refer to ports and port services on
issues that would have been covered by the Port Services Directive.
EUROPEAN TRANSPORT POLICY 15
annual report 2005-2006
Often the discussion on whether ports and port services are
efficient enough is dealt with looking at port services in isola-
tion. This is definitely wrong.
Reality is a supply chain approach where maritime services are an
element in an overall service package. In such a supply chain
approach each and every element or link in the chain plays a key
role. The most efficient and cost effective transport mode will be
chosen. Evidently handover points play a fundamental role in the
end result.
Improving supply chains is one of the key elements of the Lisbon
Policy to make the European economy the best in the world. It
would be difficult to explain and to understand why one specific
sector in a maritime supply chain should be an exception to this
policy.
During the future discussions it should be made clear whether a
specific legal framework taking into account the specificities of
port services can be developed. However, what is often forgotten
is that in absence of a specific framework the general legislation,
notably the Treaty, and particularly the four freedoms and the
competition rules apply. The European Commission is the
guardian of the Treaty and should ensure that it is properly
applied to the benefit of both shipping and trade.
16
SECURITY
ECSA
SUPPLY CHAIN SECURITY
The Commission adopted on 27 February 2006 the long awaited
Commission Communication on enhancing supply chain security
including a draft Regulation. The proposed measures will not deal
with Ships and Port security since these are already covered
through Regulation 725/2004 (ISPS) and Directive 65/2005 on
port security.
The draft Regulation covers other elements of the supply chain in a
general way. Main element is the granting of the status of “secure
operator” that will be awarded with advantageous/favourable
treatment in controls to some extent comparable with the CTPAT
system in the US. The status can be obtained on a voluntary basis.
The proposal will now go through the normal decision process
(Council/European Parliament). Questions have been raised on
the added value of the proposal.
ADVANCE CARGO DECLARATION
Discussions on a Regulation for the implementation of security
measures contained in the Customs Code including key measures
such as advance cargo declaration and the AEO status have
taken place in 2005/2006 in the Committee procedure.
The industry, including ECSA, has been involved in a number of
consultation meetings and industry comments on advance cargo
declaration concentrated in particular on:

The fact that electronic data exchange is essential for advance
cargo declaration. Therefore the implementation date should
be postponed until this is possible or only done through entry
points where this is possible.

The specific position of short sea shipping/ferries and bulk
shipping.

Clarification on: who should file, data to be submitted, where
and when to file, procedures on “do not load”, freight remain-
ing on board and the status of the Authorised Economic
Operator (AEO).

NVOCCs/forwarders doing their own notifications.
Joint industry submissions have been made to the Commission
and Member States on the initiative of the World Shipping Council
and ECSA. The contributions of industry aimed at having an
efficient security checking system avoiding thereby unnecessary
bureaucracy.
 SECURITY

annual report 2005-2006

17
18
SAFETY AND
ENVIRONMENT
ECSA
THIRD MARITIME SAFETY PACKAGE
In November 2005 the Commission published its Third Maritime
Safety Package following consultation meetings with industry
during the previous year or so. While the strictly legal elements of
the package are addressed in the chapter on Legal Issues of this
Annual Report the five proposed Directives relating to safety
comprise the following:

Amendments to the Port State Control Directive 95/21, the
objective of which is to recast the instrument in order to
improve clarity following many changes introduced over the
last decade and to reinforce and improve the effectiveness of
PSC; a particularly notable element in the latter regard, and
welcomed by industry, is the replacement of the current
requirement to inspect 25% of all visiting ships by a system
whereby high risk ships are more frequently inspected and
quality ships less so.

Amendments to Directive 2002/59 concerning Vessel Traffic
Monitoring and Information System. The key aims are to
require the use of the electronic exchange network
‘SafeSeaNet’, to reinforce existing provisions relating to
accommodation of ships in places of refuge and to require AIS
on fishing vessels.

Compliance with Flag State Requirements, the broad goal being
to ensure that EU Member State effectively and consistently
discharge their obligations as flag States in accordance with
IMO Conventions. More specifically, steps must be taken to
make the provisions of the IMO Code compulsory in respect of
the implementation of the mandatory IMO instruments relating
to the flag States and also to introduce a flag State Audit
Scheme.

Establishing Fundamental Principles Governing Investigation of
Accidents; the objective is to form a Community framework for
conducting investigations on marine casualties and to improve
the exchange of information among Member States. It is also
proposed that Member States establish independent investiga-
tive bodies for conducting the investigations in an impartial
manner and with the required resources.

Classification Societies. The proposal is intended to underpin
the Classification Societies by setting up a joint and independ-
ent body to assess the quality systems of the EU recognised
organisations; the instrument also introduces a system of grad-
ual financial penalties for low performance and changes to the
recognition criteria aimed at clarification and simplification.
Overall, ECSA has reacted positively to the initiatives particular-
ly on the proposals regarding port state control and the vessel
traffic monitoring and information system, while recognising
that the flag state compliance proposal will no doubt raise
concerns in some Member States about the implications for
competence of national maritime administrations at IMO;

certainly the industry would not wish to see any reduction in the
quality of the decision making in IMO.
ECSA’s detailed positions on the proposals, developed jointly with
ICS, (available on website www.ecsa.be) have been sent to national
Administrations and to the responsible European Parliament
Rapporteurs for consideration. In the Council, progress towards
agreement has being made with the Port State Control and Vessel
Traffic Monitoring proposals, with only the classification societies’
initiative possibly being considered in 2006 and the remaining two in
2007. The Parliament has just started its internal examination of the
package as a whole, with completion of the First Reading stage not
expected to be completed before early 2007 at the earliest. It is like-
ly to be 2008 before final adoption of the proposals can be expected.
ENVIRONMENT
Air Emissions
As acknowledged in the recent Green Paper, shipping is the most
energy efficient and environment friendly mode of transport in
Europe (see table 20). However, the industry itself recognises the
negative impact of maritime air pollution and the wish both in
the EU and internationally for lower limits than those recently
made mandatory by MARPOL Annex VI.
It is against this background that the shipping industry is
committed to further improving its environmental performance
SAFETY AND ENVIRONMENT 19
annual report 2005-2006
where there is a quantifiable benefit backed up by thorough
impact assessments.
As all parties are aware, air pollution in general is a complex
issue and reducing one pollutant may have a negative effect on
other pollutants such as Green House Gases (GHGs). The industry
therefore believes that a holistic international approach to find
an overall environmental benefit for the long term is the only
effective solution. In this context, there is scope for regional
action on the international front via the possible creation of
SECAs after thorough assessment of environmental vulnerability.
It should, however, not be overlooked that it is unsustainable for
EU ships to be subject to differing levels of emission control in
different ports around the world.
As stated above, credible long term action must be based on sound
environmental, technical as well as socio-economic assessment;
in this regard, all measures to reduce maritime emissions must be
as practical and cost-effective as possible; fuel quality and avail-
ability are important elements in this regard, as is the need to
ensure that measures do not result in a modal shift to less envi-
ronmentally credible mode of transport than shipping.
Reflecting these factors and principles ECSA, in close liaison with
ICS, has undertaken a detailed assessment of the technical and
policy options available to reduce air emissions; notably SOx,
NOx, Volatile Organic Compounds and Particulate Matter. ECSA
would draw attention to the following broad conclusions from
this initiative;
20
ECSA

There are promising developments taking place with regard to
technologies to reduce SO2, NOx, PM and VOC emissions, and
such developments should be promoted and fully exploited.

There are also promising developments taking place in EU and
IMO concerning new and cost-effective economic incentives.
Such possibilities should be considered as alternatives to new
regulations, especially regional regulations, as long as the
same or better environmental results can be achieved.

There is no single option available to the industry that will be
suitable for all types of ship and the variety of trades they
operate, and it is important for the international and EU
framework to allow flexibility for the industry to find the most
cost effective solutions.
It is hoped that the work undertaken by industry will positively
contribute to the ongoing work in both the IMO and EU.
EU Thematic Strategy for the Protection
of the Marine Environment
ECSA shares the overall objective of the Thematic Strategy on the
Protection and Conservation of the Marine Environment published
in October 2005, namely to ensure that EU marine waters are
healthy by 2021 – thereby protecting the resource base upon
which marine related economic and social activities depend; it is
currently the subject of debate within the EU institutions. As
recognised by the Lisbon strategy, sustainable development must
be accompanied by the goals of promoting competitiveness and
economic growth and development across Europe. In the latter
regard, the principle of freedom of navigation is a fundamental
requirement for free trade and competition together with
unrestricted port access.
ECSA further acknowledges that from an environmental point of
view, it may well be appropriate to subdivide the overall marine
area of the EU into regions in order to establish what is required for
each region (the so called marine spatial planning); what is neces-
sary or best in one region may not be necessary in another region.
However, from the perspective of international shipping, having
ships operating in all three regions, it is important to ensure that
this approach does not result in a myriad of varying rules for ship-
ping within the EU. Such a situation would not be operationally
feasible for the shipping industry. Specific local requirements
should be solved through international instruments e.g. SECAs.
Ship Recycling
The shipping industry fully recognises the need to improve the
health and safety standards in ship recycling yards around the
world and acknowledges the role played by the NGOs and regional
bodies such as the European Parliament in drawing attention to
this serious issue. In accepting its responsibilities, the shipping
industry has been instrumental through both industry initiatives
and via IMO in the significant progress made in recent years.
In particular, the IMO is currently formulating an internationally
binding Convention on ship recycling to be adopted in 2009; this
initiative, fully supported by the shipping industry, is closely
based on the IMO Guidelines published in 2003 which in turn
reflected the 2001 Industry Code of Practice on Ship Recycling;
this introduced a number of recommendatory provisions such as
gas freeing-for hot work on delivery, a list of potentially
hazardous materials, and minimisation of potentially hazardous
materials at the construction phase.
 SAFETY AND ENVIRONMENT 21

annual report 2005-2006

At a European Parliament Hearing jointly organised by NGOs and
industry on 25th April Environment Commissioner Stavros Dimas
and MEPs stressed that the most effective means to address the
problems in the ship recycling industry is via international
measures. The EU, through its 25 Member States, has significant-
ly contributed to progress on the issue in IMO to-date and
continues to exert considerable influence in achieving concrete
and effective results, and this remains the most positive utilisa-
tion of the Community’s influence in progressing the issue. The
European Parliament also has an important role in promoting
timely and effective international action.

In addition, the EU itself can actively promote the IMO work and
ensure the success of the Convention by using EU Development
Aid, cooperation agreements and other influential links with
recycling States to provide equipment, expertise and training to
raise safety and environmental standards to an acceptable level.

The Commission has also indicated its wish to develop an interim

EU Strategy, with a particular emphasis on state owned ships
following the controversy surrounding the recycling the warship
‘Clemenceau’. In this regard a wide ranging study for the
Commission on all aspects of ship recycling in the EU context is
currently underway, and ECSA and the Industry Working Group on
Ship Recycling will constructively contribute to that initiative.

ECSA has welcomed the inauguration of the EMSA headquarters in

Lisbon in September 2006. Their technical expertise in the areas
of maritime safety and environment in particular ensures that
they will make a major contribution in the coming years, and ECSA
looks forward to a continuing constructive working relationship
in that context.
22
THE HUMAN
ELEMENT
ECSA

MARITIME LABOUR CONVENTION
A global solution for a global industry
There was in effect unanimous adoption of the Maritime Labour
Standards Convention in Geneva in February. The Convention
brings together and updates more than 60 international labour
standards adopted in ILO since 1920 and covers such areas as
conditions of employment and working conditions, including
health, safety, minimum age, recruitment, working hours and
accommodation on ships. It is regarded as the ‘fourth pillar’ of
the international regulatory system for global shipping following
SOLAS, STCW and MARPOL. Initiated and fully supported by indus-
try, the Convention requires ratification of 30 states representing
33% of world tonnage for its entry into force.
The Commission has been very supportive of the ILO process and
has signalled their wish that the Convention should be incorpo-
rated into EU law. In this context, and recognising the complexi-
ties of the issues, ECSA and ETF have established a Working Group
of the Social Dialogue Committee to examine over the coming
months, with the close involvement of the Commission, all
aspects of the way ahead.
ECSA has urged EU Member States to ratify the Convention as
soon as possible and has issued a joint statement with ETF to
EU Ministers with this message; in this regard, it is hoped that
a Council Decision with a similar goal, as proposed by the
Commission in June, will be adopted in the coming months.
MARITIME EMPLOYMENT
An outward looking approach required
The increasing reality of globalisation presents particular
challenges in the area of maritime employment in a generally
high labour cost Europe. Ensuring that European shipping can
continue to effectively and fairly compete in this global mar-
ket must always be the cornerstone of the EU policy in this
area. This is fully consistent with the EU Lisbon Agenda aimed
at making the EU the most competitive economy in the world;
a key element is a recognition that increased labour flexibili-
ty is in the interests of Europe’s longer term sustainable
growth.
The alternative approach which is to promote restrictive and/or
labour protectionist measures would have the opposite effect
to those intended, leading to lack of competitiveness, loss of
markets, reductions in the size of EU fleets and, inevitably, to
loss of European jobs. Such an approach, inconsistent with
basic EU Treaty principles, has regrettably been evident in a
number of instances within Europe over the last year or so, the
European Court of Justice being called to make a ruling in this
context.
THE HUMAN ELEMENT 23
annual report 2005-2006
As a consequence, ECSA has encouraged the Commission to
pursue a policy which reflects the industry view as explained
below and, within its area of responsibility, to take a pro-active
stance towards any action taken which undermines this
approach.
MAINTAINING EU MARITIME KNOW-HOW ESSENTIAL
FOR EUROPE
In the context of the global reality referred to, ECSA fully recog-
nises the importance of maintaining European maritime know
how; it is essential for both the industry itself and for the main-
tenance of the maritime clusters that are vital to the economic
and social interests of the Community.
While there is an estimated 300,000 plus seafarers employed on
EEA registered vessels, with a broadly equal split between EEA and
non-EEA nationals, it should be noted that the main employment
in the maritime industries is ashore rather than at sea.
Against this background, there are a number of actions being
pursued at national, Community and international level which
can usefully be built upon and there is an important role for the
social partners in this regard. Together, they will make a signifi-
cant contribution to enhancing European maritime know how and
the employment opportunities of EU seafarers. The following,
consistent with Council Conclusions on Maritime Employment
adopted under the UK Presidency in December 2005, and wel-
comed by ECSA, can be cited:

Supply and Demand of Seafarers. Past studies conclude that in
many Member States there is a current or forecast shortage of
EU junior officers; quite what the situation is today in each EU
Member State could perhaps benefit from further examination.
Considerable analysis needs to be undertaken nationally
before increasing the supply as it is clearly economically and
socially undesirable if those undergoing training are likely to
find it difficult to find employment on completion of training.

The role of maritime clusters. The possibilities of shore-side
employment for former seafarers can be an important factor in
attracting persons into a seafaring career. In this context, the
ECSA/ETF Career Mapping project, concluded in Autumn 2005,
should be helpful in demonstrating the possible career
planning opportunities for European seafarers in order to make
shipping an attractive career option. The concept should be
promoted and used nationally. However, ship operators should
not be expected to bear the full burden of training, and the
emphasis on shore based opportunities provides a strong
argument for 100% public funding of maritime training.

A stable and competitive environment for EU Shipping. An
appropriate EU framework providing stimulating elements for
the maintenance of competitiveness of Member States’ fleets
24
ECSA
and the promotion of European shipping know-how and
maritime training, as well as the employment of European
seafarers, is essential for shipping and has positive effects
for the whole maritime cluster. The framework (the State Aid
Guidelines) has to be stable and has to be applied in a
flexible manner taking into account the specific national
circumstances involved. A key element is that the structural
operational environment should be able to meet global
competition.

Maritime Labour Standards. As mentioned above, the recent
ILO Maritime Labour Standards Convention will provide a solid,
comprehensive and global basis for world wide employment
standards. ECSA urges ratification by EU Member States and its
strict enforcement within the EU.

National Action and Exchange of Best Practice. While there is
considerable scope for EU action as described above, Member
States are of course best placed to identify the particular
problems in relation to maritime employment being faced
nationally and how those issues can be most suitably
addressed in the local circumstances. Examples include the
national supply and demand situation, and particularly to the
action necessary to train the required number of seafarers for
 THE HUMAN ELEMENT 25

annual report 2005-2006

their national needs; improving the image of shipping by
appropriate campaigns tailored to meet the national circum-
stances are an integral part of this process. As set out in a UK
Presidency paper of December 2005, there are many innova-
tive and comprehensive initiatives being taken throughout
the EU, and a greater emphasis on the exchange of best
practice would be well worthwhile. ECSA will play its full part
in this context.

These issues have been, and no doubt will be, the subject of
further discussions with the Commission and ETF in the context of
the Maritime Social Dialogue Committee.

PIRACY AND ARMED ROBBERY

The continuing serious problem of piracy and armed robbery
against ships in certain parts of the world was discussed again in
the ECSA/ETF Social Dialogue Committee, and a joint approach
was made to the EU Transport, Trade and Development
Commissioners. In doing so they provided detailed information
on the scale and location of the global attacks and urged the
Commissioners to take up the issue when having discussions and
negotiations with those countries and regions where such attacks
take place.
26
MARITIME EXTERNAL
RELATIONS
ECSA
Maritime transport serves and thrives on continuing increases in
international trade and for ECSA members as a whole the trade
between third countries and regions are at least as important
as the intra and external European trades. Stimulating trade
conditions with liberal, transparent and consistent national
and international rules and procedures are therefore of great
importance.
WTO-DDA NEGOTIATIONS SUSPENDED
High expectations were given to a successful conclusion of the
comprehensive WTO round, under the Doha Development
Agenda, launched in November 2001 towards agreements on
strong reductions in subsidies and import tariffs of agricultural
products, import tariffs for goods, on access to markets for
services, global trade rules and special considerations for the
least developed nations. The concept of solid agreements for
international trade is generally recognised, as may be proved by
the increasing number of currently 149 WTO members. However,
the many differences between economies, levels of develop-
ment and cultures make the complex negotiating process a very
difficult undertaking. Appropriate balances must be found
between the interests and priorities of the members. The
Ministerial Conference in Hong Kong in December 2005 did not
bring the desired breakthrough, but did confirm the commit-
ment to continue and set deadlines, which in turn were often
not met by all or not at all. Despite all the continuing efforts,
the key actors in the negotiations – the US, EU, Brazil, India,
Australia and Japan – had to conclude by end July that the set
deadline of end 2006 could not be met and that the Round had
to be suspended.
One notable positive development in the negotiations was the
wide support for the good work done towards an agreement on
Trade Facilitation – setting rules and objectives for the basic
processes of cross-border trade. Hopefully these can somehow
be made effective by means of other instruments and/or bodies
like the WCO.
Although stimulation of global trade through an agreement
would have been welcome also for shipping as the major
transport mode, the point for the shipping sector itself is not so
much that there are major practical hindrances for efficiently
serving the external trade of member countries, which could have
been resolved. However, obtaining the certainty that the de facto
freedoms will last and thus allow long term planning and
investments remains important. In the meantime the maritime
standstill agreement, preventing new protectionist measures by
WTO member states, should remain in force.
EU BILATERAL TRADE RELATIONS
The failure of the WTO-DDA round to conclude by end 2006 will
no doubt further intensify the interest in coming to bilateral
and multilateral regional trade agreements. Increasing the
already over 200 of such agreements in place risk confusion by
overlaps and/or discrimination for trade. Reportedly the WTO
has meanwhile come to an outline for preventing such adverse
impacts. The EU has been less active in this field than e.g. the
US and Japan, although Free Trade Agreements exist with e.g.
Mexico and is for several years less successfully under negotia-
tion with MERCOSUR – as recently expanded with Venezuela. A
new EU focus on agreements with Asian partners has already
been announced, in which ECSA will endeavour to secure a right-
ful place for maritime transport.
BILATERAL MARITIME RELATIONS
The bilateral EU-China maritime agreement of end 2002 has
proven its continued success to the benefit of trade and the
maritime carriers, as was confirmed during the third implemen-
tation meeting in Shanghai in May 2006. Some European wishes,
including the right of relaying international cargoes between
Chinese ports by use of own vessels – avoiding transhipments
outside China – remain under study.
ECSA welcomed the first round of negotiations on a EU-India
maritime agreement in July 2006, at which the respective
positions were extensively discussed and laid down in a paper
for further negotiation. Although the common interests in
efficient maritime transport and under the wider ‘strategic
Partnership’ are recognised, the expressed maritime related
priorities on the Indian side are differing from those of the EU
negotiators and industry. Time has now come for real progress
to be made and two next rounds of negotiations, agreed for end
2006 and first half 2007, are looked forward to with anticipa-
tion.
On the many maritime issues and developments at play around
the world, ranging from legislative to purely practical and
operational constraints, ECSA and company members closely
consult internally, with the Commission services and with
Member States on the appropriate approaches to be taken.
MARITIME EXTERNAL RELATIONS 27

annual report 2005-2006

28
APPLICATION OF
EU COMPETITITION
ECSA

RULES ON MARITIME
SERVICES
LINER SHIPPING TRAMP SHIPPING
The review of EU Competition Rules on maritime services that In the December 2005 Decision, the Commission also confirmed
started in 2003 is in full process. In December 2005, the its intention to lift the exclusion of tramp shipping and cabo-
Commission adopted a proposal to repeal Regulation 4056/86 tage from the Implementing Rules (Regulation 1/2003). There
giving a Group Exemption to Liner Conferences. The Commission have been no complaints and consequently there is no case law
agreed to a postponement of the effective date with two years on the application of Competition Rules for tramp shipping.
allowing a denouncing of the UNCTAD Code. Guidelines will be Moreover the sector is terra incognita for many. Therefore the
issued indicating what lines are allowed to do following the shipping industry is through ECSA involved in a constructive
repeal of the Exemption. In the interim period an Issues Paper information and discussion process with the Commission
will be issued in 2006 containing the background for the services with the aim to have legal certainty by the time that
Guidelines. The Liner Industry is in discussion with the the basic competence of implementing the Competition Rules
(enforcement) is shifted from being solely with Member States,
Commission services on the Issues Paper and the Guidelines.
to be also with the Commission.
In this context the European Liner Affairs Association (ELAA)
During this exchange of views it was confirmed that the
presented on 22 June a revised alternative regime for liner Commission services would give guidance to the industry on
shipping in a post-liner conference era in Europe. A first alter- grey areas that may exist. This guidance should be given prior to
native was presented in 2004 and was revised following multiple lifting the exclusion from the Implementing Rules.
discussions between the ELAA and DG Competition.
In the context of this exercise the Commission issued on
In their revised alternative, which is supported by ECSA, the 21 February 2006 a tender for a study regarding the legal and
ELAA proposes to establish a port-to-port aggregated volume economic analysis of tramp maritime services. The contract for
database, based on figures supplied by the carriers to an the study was awarded end July and the consultants are
independent data service, to provide for an industry supply and expected to deliver the study within 4 months.
demand forecast produced with the help of an independent
expert and to establish a Liner Shipping Association enabling
carrier discussions and consultations with other industry
stakeholders. In addition, it is proposed to establish a simple
aggregated price index by trade direction and to publish
information from the public domain to increase transparency of
costs such as bunkering, canal dues, port charges and currency
exchange rate exposure. Finally, it is proposed to make all the
information generated available to the general public and the
benefit of all industry stakeholders and governments.
APPLICATION OF EU COMPETITITION RULES ON MARITIME SERVICES 29

annual report 2005-2006

30
LEGAL ISSUES
ECSA
CRIMINAL SANCTIONS FOR SHIP-SOURCE POLLUTION
Legal confusion continues after adoption
of the Directive and Framework Decision
After a long and very confusing political decision-making
process, which started in 2003, the Directive and Framework
Decision on criminal sanctions for ship-source pollution were
eventually adopted in 2005. From an industry viewpoint, the
final outcome was very disappointing because of a much
contested deviation from MARPOL and UNCLOS.
The Directive lays down the basis to sanction deliberate as well
as accidental ship-source pollution. The Framework Decision
determines the penalties, including imprisonment, for such
pollution. The two texts were issued following the sinking of the
oil tanker Prestige off the Spanish coast of Galicia in November
2002.
The provisions of the Directive and Framework Decision have to
be implemented into Member States’ national law by 1 March
2007 and 12 January 2007 respectively.
The future of the Directive and Framework Decision is, however,
unclear since after adoption court cases were launched against
them. The Commission has asked an annulment of the
Framework Decision by the European Court of Justice. An indus-
try coalition has contested the legal validity of the Directive
before an English High Court. The High Court ruled on 30 June
2006 that the industry’s challenge to the Directive is well found-
ed and has remitted the case to the European Court of Justice.
ECSA is closely monitoring implementation of the Directive and
Framework Decision into national law and will give an appropri-
ate follow-up to the outcome of the court cases.
PROPOSAL FOR A DIRECTIVE ON CIVIL LIABILITY
AND FINANCIAL SECURITIES FOR SHIPOWNERS
(MARITIME SAFETY PACKAGE III)
The maritime safety Package III includes two proposals dealing
with legal issues, the most controversial of them is the proposal
on civil liability and financial securities.
The proposal aims at establishing stringent liability rules appli-
cable to all ships with a view to preventing or repairing damage
caused by ships. To that end, it is proposed that all EU Member
States become contracting parties to the 1996 Convention on
the Limitation of Liability for Maritime Claims (1996 LLMC). It is
also proposed to incorporate this Convention into Community
law in order to ensure its full and uniform application through-
out the EU. As a second step, the Commission envisages seeking
a mandate for negotiating a revision of the 1996 LLMC within IMO
with a view at reviewing the level at which the shipowner looses
his right to limit his liability.
The draft Directive also provides a more severe liability regime

with gross negligence as conduct barring limitation, applicable
to ships flying the flag of a State that is not a contracting party
to the 1996 LLMC.
Furthermore, it is proposed to oblige shipowners to have a
financial guarantee for civil liability, including for covering the
costs linked to the repatriation of seafarers in case of abandon-
ment. The financial guarantee must be a sum not less than
double of the ceilings laid down in the 1996 LLMC, evidenced by
a certificate which issued by a Member State. The certificate
must be carried onboard the ship and notified to the Member
State when the ship enters into an area falling under jurisdiction
of that Member State. Member States are obliged to mutually
recognize their financial guarantee certificates.
Requests for compensation of damage caused by the ship may be
addressed directly to the provider of the financial guarantee.
ECSA supports the basic objectives of the Directive, i.e. a prompt
ratification of the 1996 LLMC as well as of other IMO Conventions,
in particular the HNS and Bunker Oil Spills Conventions. However,
ECSA has questioned the added value of obliging Member States
to issue a financial guarantee certificate for civil liability, and
strongly criticised the suggestion of introducing gross negligence
as conduct barring limitation and of obliging ships to have a
financial guarantee for civil liability for double the ceilings of the
1996 LLMC.
ECSA has made some alternative proposals with direct added
LEGAL ISSUES 31
annual report 2005-2006
value and looks forward to a constructive dialogue with the
relevant EU Institutions.
PROPOSAL FOR A REGULATION ON THE LIABILITY
OF CARRIERS OF PASSENGERS BY SEA AND INLAND
WATERWAYS IN THE EVENT OF ACCIDENTS
The second legal proposal of the Maritime Safety package III
aims at incorporating the provisions of the 2002 Protocol to the
Athens Convention relating to the carriage of passengers and
their luggage by sea (Athens Protocol) into EC law. It is also
proposed to extend the scope of application of the Athens
Protocol to domestic traffic and inland waterways.
Furthermore, carriers will have to provide financial compensa-
tion to disabled passengers for damage to or loss of their
mobility or medical equipment. They will also have to pay in
advance in case of death of a passenger or personal injury to a
passenger. Passengers will have to be informed on their rights
under the Regulation prior to departure of the ship.
ECSA supports a prompt ratification of the Athens Protocol once
the outstanding issues as discussed in IMO have been settled. As
far as the transposition into EU law is concerned it is recom-
mended to assess the impact of its extension to domestic
traffic. There are concerns that domestic carriers will have
difficulties in meeting the financial obligations resulting from
the Athens Protocol, which was initially drafted for passenger
ships operating international voyages only.
32
PASSENGER
SERVICES
ECSA
PASSENGER RIGHTS
While the Commission’s 2005 Communication on Passenger
Rights concentrated on air transport, it announced that the
Commission would be turning its attention to the maritime
sector; areas to be addressed include delays, cancellations,
passenger complaints, denial of access and rights of persons
with reduced mobility.
In this context, the cruise and ferry sectors have provided both
the Commission and their consultants with comprehensive
written information on the existing practice in these areas, and
arranged meetings and visits to vessels to explain the arrange-
ments at first hand. The Commission is currently reviewing the
input from the various stakeholders, with any possible EU
initiative likely to be taken in 2007.
TAXATION –
PROPOSED SUPPLY OF SERVICES DIRECTIVE
While the possibility of VAT on passenger fares has been
dropped following industry input to the consultation process,
the Commission have addressed the issue of VAT on on-board
restaurant transactions. Specifically, they are proposing that
such on-board restaurant and catering services should be
taxable at the place of departure of the transport service.
Member States are discussing the proposal, it being understood
that it will not affect the ability of individual Member States to
decide whether or not to charge VAT on such transactions. It is
anticipated that there will be a Council Statement to this effect
which is crucial in order to safeguard the existing level of ferry
services.
The issue of taxes on other services, such as on entertainment,
is also under consideration, with the industry closely following
the situation.
TRAVELLERS ALLOWANCES
ECSA has welcomed the proposed Directive to raise travellers’
allowances and in submissions to Member States and Parliament
has made the case for parity between sea and air travel. This is
evident since passenger lines are in direct competition with
airlines.
PASSENGER SERVICES 33
34
RESEARCH
& DEVELOPMENT
ECSA
EU MARITIME INDUSTRIES TO STAY
ON THE INTERNATIONAL FRONTLINE
Research and development is core to innovation, also in
maritime transport. First instance innovation is a responsibility
for individual companies for operating efficiently and compet-
itively. But there are many aspects where joint approaches
between operators, yards and suppliers of equipment, but also
with research institutes, are necessary for reasons of expertise,
consultation and costs. These aspects may include areas as
safety, propulsion, emissions, development of standards and
the meeting of regulatory requirements. Technological research
will most often be undertaken by suppliers and specialised
institutions rather than by shipowners, although operational
requirements and priorities must be closely consulted on and
results tested. ECSA’s main role lies in this supportive consulta-
tion and setting of priorities.
Research and development plays an important supporting role
for stimulating know-how and the competitiveness of the EU
under the Lisbon Strategy set by the Commission and Member
States. To this effect the 7th R&D Framework Program has been
allocated a substantially higher budget than the previous
programs. With a long term view and also to guide the
Commission in developing the 7th FP, the maritime industries’
Technology Platform WATERBORNE developed and published a
‘Vision 2020’, followed by a ‘Strategic Research Agenda’.
ECSA members have acknowledged the importance of R&D, but
at the same time identified the difficulties in maintaining a
good oversight of the almost abundant initiatives and develop-
ments at national and at community level, especially also
individual Commission initiated policy related projects. Efforts
will therefore be made in enhancing the tracking, monitoring
and reporting efforts.
As a first step and also to better learn the R&D process, ECSA
has taken on the coordinating role in the integrated project on
safe maritime operations under the 6th FP. The proposal for this
‘Flagship’ project with almost 50 participants, including sever-
al member associations and companies, was formally approved
early 2006 and after contract negotiations with the Commission
is expected to start autumn 2006.
RESEARCH & DEVELOPMENT 35

annual report 2005-2006

36
INTERNAL
MARKET ISSUES
ECSA

ENLARGEMENT
It remains the objective of the EU to welcome Bulgaria and
Romania in January 2007 as full members provided that they are
ready for full membership. To that end, both countries were
called upon to rigorously step up their efforts to tackle decisive-
ly and without delay the remaining issues of concern.
Turkey was called upon to intensify the reform process and
implement it fully and effectively and to make progress towards
the complete fulfilment of the Copenhagen political criteria,
including the commitment to good neighbourly relations. Turkey
was also invited to avoid any action which could negatively
affect the process of peaceful settlement of disputes.
After the June 2006 Summit Enlargement Commissioner Olli Rehn
stressed in addressing the European Parliament that “Turkey
should remove existing obstacles to the free movement of goods
including restrictions on means of transport which are in breach of
existing obligations under the Association Agreement”. This
means that Turkey should open its ports to vessels under flag of all
member states, including the Republic of Cyprus. ECSA has
approached the Commission repeatedly insisting that existing
unacceptable boycott practices should be withdrawn immediate-
ly. In October or November 2006 the Commission is due to publish
its progress report on Turkey, with Cyprus as one major issue.
The EU leaders also welcomed the start of substantive accession
negotiations with Croatia and confirmed that the future of the
INTERNAL MARKET ISSUES 37
annual report 2005-2006
Western Balkans (Albania, Bosnia and Herzegovina, Serbia and
Montenegro and Kosovo) lies in the European Union. To that end,
the EU will continue assisting the Western Balkan countries
through practical measures which will integrate their economies
and societies into the European mainstream. The Former Yugoslav
Republic of Macedonia has also applied for membership and is
working on the fulfilment of the Copenhagen political criteria.
EUROPEAN CONSTITUTION/CONVENTION
The so called reflection period on the future of the EU
Constitution will be extended until end 2008.
The first year of the reflection period aimed on the one hand, to try
to keep the constitutional process alive and, on the other hand, to
create a “Europe of results” that is more in touch with the
expectations and aspirations of the citizens. 15 Member States
have ratified so far the Constitutional Treaty notably Austria,
Belgium, Cyprus, Estonia, Germany, Greece, Hungary, Italy, Latvia,
Lithuania, Luxembourg, Malta, Slovakia, Slovenia and Spain,
whereas the Netherlands and France, whose citizens voted it down
in June 2005, will not submit the same text to a new vote.
The European Council calls for the adoption on 25 March 2007 in
Berlin of a political declaration by EU leaders, setting out
Europe’s values and ambitions and confirming their shared
commitment to deliver them, commemorating 50 years of the
Treaties of Rome.
38
ECSA
INTERNAL
ECSA

ECSA SECRETARIAT MOVES TO NEW PREMISES

With an expanding membership, the office occupied by ECSA in
rue Ducale 45 in Brussels for more than 19 years became too
small particularly the meeting facilities were insufficient. Hence
the ECSA secretariat moved in April 2006 to a new office in rue
Ducale 67 a few hundred meters from the previous office. The new
office is adapted to the latest technology and offers meeting
facilities allowing the ECSA Board, Committees and Working
Groups to meet in an efficient infrastructure.

ECSA
EUROPEAN COMMUNITY SHIPOWNER’S ASSOCIATION

RUE DUCALE 67 B 2
1000 BRUSSELS

Tel : +32 2 511 39 40

Fax : +32 2 511 80 92

e-mail : mail@ecsa.be
Website : www.ecsa.be
 ECSA INTERNAL

annual report 2005-2006

39
40
ANNEX 1
ECSA STRUCTURE
ECSA

BOARD OF DIRECTORS
PRESIDENT
Lennart Simonsson (Sweden)

VICE-PRESIDENT/PRESIDENT-ELECT
Philippe Louis-Dreyfus (France)

DIRECTORS / ALTERNATES

Members Alternates

AUSTRIA Hans Georg Wurmböck

BELGIUM/LUXEMBOURG Nicolas Saverys Marc Nuytemans
Leo Werkers
CYPRUS Andreas Droussiotis Thomas Kazakos
Charalambos Mylonas Andreas Hatjiioannou
Michalis Ioannides Tasos Panayides
DENMARK Torben Janholt Peter Bjerregaard
Jan Fritz. Hansen
ESTONIA Toivo Ninnas Jaan Kalmus
FINLAND (FSA) Mika Nykänen Henrik Loennqvist
(Äland) Kent Nyström Hans Ahlström
FRANCE Philippe Louis-Dreyfus Yves Perrin
Anne Barthe
GERMANY Klaus Meves Hans-Heinrich Nöll
GREECE Nicos Efthymiou Matheos D. Los
John C. Lyras Anna Bredima-Savopoulou
IRELAND Shay Hickey Brian W. Kerr
ITALY Emanuele Grimaldi
(Confitarma) Nicola Coccia Gennaro Fiore
(Fedarlinea) Giuseppe Ravera Lorenzo Paolizzi
LITHUANIA Vytautas Lygnugaris Gintautas Kutka
MALTA Nicolas A.Pappadakis Joseph Curmi
THE NETHERLANDS Marnix J. van Overklift Guido Hollaar
NORWAY Herbjørn Hansson Morten Werring
Lars Almklov
POLAND Pawel Szynkaruk Adolf Wysocki
PORTUGAL Joao Carvalho P. Magalhães
SLOVENIA Egon Bandelj
SPAIN Juan Riva Francos Manuel Carlier
SWEDEN Lennart Simonsson Håkan Larsson
Håkan Friberg
UNITED KINGDOM Michael Parker Mark Brownrigg
 ECSA STRUCTURE 41

annual report 2005-2006

ECSA SECRETARIAT ECSA SECRETARIAT
Rue Ducale 67 b 2 - 1000 Brussels
SECRETARY GENERAL Tel : +32 2 511 39 40 - Fax : +32 2 511 80 92
Alfons Guinier E-mail : mail@esca.be - Website : www.ecsa.be

DEPUTY SECRETARIES GENERAL DIRECT DIALING

Tim Marking - Th. Herman de Meester Alfons Guinier +32 2 510 61 26 guinier@ecsa.be
Tim Marking +32 2 510 61 27 marking@ecsa.be
EXECUTIVE ADVISORS Herman de Meester +32 2 510 61 28 demeester@ecsa.be
Christophe Tytgat - Sonia Karassavidou Christophe Tytgat +32 2 510 61 29 tytgat@ecsa.be
Sonia Karassavidou +32 2 510 61 25 karassavidou@ecsa.be
EUROPEAN RO-RO CARRIERS ACTION GROUP James Dempster +32 2 510 61 23 dempster@ecsa.be
EXECUTIVE DIRECTOR
James Dempster

SHIPPING POLICY COMMITTEE SAFETY AND ENVIRONMENT COMMITTEE

Chairman: M. Carlier Chairman: T. Gloersen
Vice-Chairman: N. Hassiotis Vice-Chairman: E. Brookes
AUSTRIA H.G. Wurmböck AUSTRIA H.G. Wurmböck
BELGIUM L. Werkers BELGIUM L. Werkers
CYPRUS T. Kazakos, M. Ioannides CYPRUS A. Josephides, M. Filippou
DENMARK T. Petterson, J.F. Hansen, R. Piil Pedersen, DENMARK H.H. Petersen
M. Lund ESTONIA H. Lepalaan, H. Suun
ESTONIA R. Merisalu FINLAND T. Jokilehto, B. Bergman
FINLAND M. Nykänen FRANCE C. Véchot
FRANCE E. Berlet, A. Barthe, GERMANY W. Hintzsche, H. Braun
GERMANY J. Habicht, D. Hosseus GREECE J. Panopoulos, J. Andreopoulos, G. Gabriel
GREECE J.C. Lyras, A. Bredima-Savopoulou, IRELAND B. Kerr
N. Hassiotis, K. Peppa ITALY G. Ercolessi, C. Stagnaro
IRELAND B. Kerr NETHERLANDS E. Staal, D. Anink
ITALY L. Paolizzi, S. Messina, L. Martin NORWAY T. Gloersen
NETHERLANDS T.P. Blankestijn, T. P. Tammes POLAND Z. Nieweglowski
NORWAY L. Almklov SPAIN A. Bazurko
POLAND A. Wysocki SWEDEN B. Arvidsson, P. Marzelius
PORTUGAL J. Bebiano U.K. E. Brookes
SPAIN M. Carlier, E. Seco ICS P. Hinchliffe
SWEDEN H. Friberg, P. Sjöberger, C. Frisk
U.K. M. Brownrigg, G. Simmonds, D. Asprey
ICS S. Bennett BUDGET COMMITTEE
BELGIUM M. Nuytemans
SOCIAL AFFAIRS COMMITTEE GREECE N. Hassiotis
Chairman: P. Voss NETHERLANDS G. Hollaar
Vice-Chairman: G. Sulpice NORWAY L. Almklov
AUSTRIA H.G. Wurmböck
BELGIUM N. Simons STATISTICS WORKING GROUP*/FOCAL POINTS
CYPRUS T. Kazakos, M. Ioannides Chairman: J. Dowden
DENMARK P. Voss
ESTONIA I. Kaunis BELGIUM M. Nuytemans
FINLAND H. Loennqvist, K. Kostiainen CYPRUS P. Hannas
FRANCE G. Sulpice DENMARK M. Lund*
GERMANY D. Lindemann ESTONIA T. Ninnas
GREECE G. Koltsidopoulos, K. Peppa FINLAND T. Jokilehto
IRELAND D. Hopkins FRANCE S. Barneoud-Rousset *
ITALY R. Aglieta, L. Paolizzi GERMANY L. Gramsch, C. De Bilde
LITHUANIA G. Kutka GREECE N. Hassiotis*
NETHERLANDS G. Hollaar, J. Baggerman IRELAND B. Kerr
NORWAY E. Midelfart ITALY N. Mazza*
POLAND R. Czyzyk LITHUANIA V. Lygnugaris
SPAIN J. Barbadillo NETHERLANDS R. de Kort*
SWEDEN P. Sprangers NORWAY H. Kristoffersen
U.K. E. Brookes, T. Springett POLAND A. Wysocki
ISF N. Wiseman PORTUGAL J. Coelho
42
ECSA

SPAIN A. De Hita NORWAY B. Markveien

SWEDEN C. Frisk* POLAND J. Wisniewski
U.K. J. Dowden* U.K. G. Simmonds
SWITZERLAND (MSC) C. Gargiulo
COMPETITION WORKING GROUP
Chairman: L. Almklov SHORT SEA TRADE WORKING GROUP
Chairman: G. Kempf
BELGIUM L. Werkers
DENMARK T. Petterson, J.F. Hansen, J.K. Clasen, M. Lund BELGIUM S. Jung, L. Werkers
ESTONIA M. Kullerkupp-Jõekaar DENMARK M. W. Nielsen, M. Lund
FRANCE T. Conte FINLAND H. Ahlström,
GERMANY J. Habicht, D. Hosseus FRANCE B. Huchet
GREECE L. Demetriades-Eugenides, J. Tzavaras, GERMANY G. Kempf, H. Sommer, G. Krohn
A. Bredima-Savopoulou, K. Peppa GREECE M. Sarlis, N. Hassiotis, K. Peppa
ITALY L. Martin IRELAND B. Kerr
NETHERLANDS T.P. Blankestijn, M. Schaap ITALY L. Paolizzi, L. Martin, L. Bertani
NORWAY L. Almklov NETHERLANDS R. de Kort, Y. Buitenwerf
SWEDEN P. Sjöberger NORWAY L. Almklov, K. Djoenne, J. Tollefsen
U.K. D. Chard POLAND J. Korecki
ICS S. Bennett SPAIN M. Carlier
SWEDEN C. Frisk, P. Sjöberger
U.K. D. Asprey
TAXATION WORKING GROUP
Chairman: V. Moorcraft
EXTERNAL RELATIONS WORKING GROUP
DENMARK P. Saaek, J.K. Clasen Chairman: N. Hassiotis
FINLAND J. Hanses, T. Nylund
FRANCE J. Aubert, M. Charbey BELGIUM L. Werkers
GERMANY J-T Heitmann, H.H. Nöll DENMARK T. Petterson, R. Piil Pedersen, M. Lund
GREECE M. Foros, K. Peppa FRANCE A. Barthe
IRELAND N. Mottram GERMANY D. Hosseus
ITALY A. Quadrani GREECE N .Hassiotis, K. Peppa
NETHERLANDS R. de Kort ITALY L. Martin
NORWAY T. Sigerset, G. Stenberg NETHERLANDS T. P. Tammes, T. P. Blankestijn
POLAND R. Czyzyk NORWAY L. Almklov
SPAIN M. Carlier SPAIN J. Barbadillo, M. Carlier
SWEDEN R. Lindgren, P. Sjöberger SWEDEN C. Frisk, P. Sjöberger
U.K. V. Moorcraft, T. Reardon, M. Barlow, U.K. G. Simmonds
AIDA CRUISES P. Soulsby
COSTA CROCIERE A. Dietrich
CARNIVAL CORP. J. Border SECURITY WORKING GROUP
ROYAL CARIBBEAN C. Gingrich Chairman: T.P. Blankestijn
BELGIUM L. Werkers
PORTS WORKING GROUP DENMARK R. Piil Pedersen, M. Lund
Chairman: T. Conte GERMANY D. Meenke, D. Dabels
GREECE J. Andreopoulos
BELGIUM L. Werkers ITALY L. Martin
DENMARK J.F. Hansen, J. Clasen NETHERLANDS E. Staal
ESTONIA Y. Saarinen NORWAY T. Gloersen
FRANCE T. Conte U.K. T. Reardon, G. Simmonds
GERMANY D. Meenke, G. Kempf
GREECE M. Sarlis, N. Hassiotis
ITALY G. Lombardi, L. Martin, F. Napp LEGAL WORKING GROUP
NETHERLANDS T.P. Blankestijn Chairman: B. Kröger
NORWAY L. Almklov, K. Djoenne
SPAIN M. Carlier BELGIUM B. Vanheule
SWEDEN C. Frisk, P. Sjöberger DENMARK U. Rasmussen, M. Lund
U.K. D. Asprey, T. Reardon FINLAND M. Etu-Seppälä
FRANCE N/A
GERMANY H.H. Nöll
WEST & CENTRAL AFRICA WORKING GROUP GREECE G. Koltsidopoulos, K. Peppa
Chairman: G. Cerruti NETHERLANDS T. P. Tammes
NORWAY K. Boehler
BELGIUM D. Geens, A. Pegg SPAIN J. Barbadillo
DENMARK A. Egehus, R. Nielsen, M. Lund SWEDEN C. Frisk
FRANCE T. Conte, U.K. D. Chard
GERMANY H. Wenk, E. Donner, D. Griebel, D. Hosseus ICS L. Howlett
GREECE K. Peppa BIMCO P. Holst
ITALY G. Cerruti
NETHERLANDS H. Veldman
 ECSA STRUCTURE 43

annual report 2005-2006

AIR EMISSIONS WORKING GROUP EUROPEAN RO-RO CARRIERS ACTION GROUP
Chairman: P. Kyprianou
BELGIUM L. Cappoen, L. Werkers
DENMARK M. Lund BELGIUM M. Cigrang (Cobelfret),
FINLAND T. Jokilehto M. Gray (Cobelfret)
GERMANY H. Braun FINLAND T. Voionmaa (Finnlines),
GREECE J. Panopoulos R. Eriksson (Transfennica)
NETHERLANDS D. Anink FRANCE C. Santoni (Louis Dreyfus Lines)
NORWAY T. Gloersen GERMANY Y. Sonobe (KESS),
SWEDEN B. Arvidsson T. Wendt (KESS),
U.K. R. Ashdown R. Luttmann (Mitsui OSK),
ICS P. Hinchliffe T. Metzger (Mitsui OSK)
GREECE N. Travlos (Neptune Lines)
ITALY E. Grimaldi (Grimaldi Group),
SECTORAL DIALOGUE COMMITTEE P. Kyprianou (Grimaldi Group)
ON MARITIME TRANSPORT NORWAY S. Omholt (UECC)
The Sectoral Dialogue Committee is a consultative body SPAIN V. Serrano (Flota Suardiaz),
to the EC Commission, half representing shipowners' M. Eduardo Carballal (Trasmediterranea),
associations, the other half maritime unions. F. Casas Blanco (Trasmediterranea)
Shipowner Members
EUROPEAN CRUISE COUNCIL
AUSTRIA H.G. Wurmböck Chairman: P.L. Foschi (Costa Crociere s.p.a.)
BELGIUM N. Simons Vice-Chairman: P. Ryan (Island Cruises)
CYPRUS T. Kazakos, M. Filippou
DENMARK P. Voss D. Dingle (Carnival UK)
ESTONIA I. Kaunis J. Duguid (Saga Shipping)
FINLAND H. Ahlström E. Frydenberg (Silversea Cruises)
FRANCE G. Sulpice J. C. Helary (France Ferries Croisieres)
GERMANY D. Lindemann S. Hooper (Royal Caribbean Line Cruises)
GREECE G. Koltsidopoulos S. Kiliaris (Louis Cruise Lines)
IRELAND D. Hopkins N. Lingard (Fred Olsen Cruise Lines)
ITALY R. Aglieta, L. Paolizzi A. Molina (Pullmantur Cruises)
LITHUANIA G. Kutka L. Narraway (Carnival Cruises Lines)
NETHERLANDS G. Hollaar, J. Baggerman G. Potamianos (Arcalia Shipping Company Ltd.)
NORWAY E. Midelfart S. Schnier (Hansa kreuzfahrten GMBH)
POLAND R. Czyzyk D. Selby (Thomson Cruises)
SPAIN M. Carlier, J. Barbadillo M. Terrevazzi (Regent Seven Seas Cruises)
SWEDEN P. Sprangers M. Thamm (Aida Cruises)
U.K. E. Brookes, T. Springett P. Vago (MSC Cruises)
ISF N. Wiseman M. Zengerle (Norwegian Cruise Lines)
Secretariat A. Guinier, T. Marking J. Zurnieden (Phönix Reisen)

HIGH LEVEL PASSENGER FERRY GROUP

Chairman: A.P. Panagopulos
DENMARK H. Rorbaek (Scandlines), S. Jespersen
(DFDS), K. Robdrup (Norfolk Line)
ESTONIA M. Marek Mägi (AS Tallink Group)
FINLAND A. Pankakoski (Silja Line Oy),
N-E. Eklund (Viking Line AB),
K. Nyström (Viking Line)
FRANCE E. Ribier (Sea France),
P. Denneulin (Brittany Ferries),
P. Mattei (Corsica Ferries/Tourship Group),
P. Vieu (Société Nationale Maritime Corse-
Méditérannée), A. Person (L.d. Lines)
GERMANY A-H. von Oertzen (TT-Line),
G. Tesch (Scandlines Deutschland GMBH),
G. Backer (KG Seetouristik GMBH)
GREECE A.P. Panagopulos (Superfast Ferries),
G. Yannoulatos (Hellenic Mediterranean Lines)
IRELAND E. Keane (Irish Ferries)
NETHERLANDS W. de Lange (Stena Line)
NORWAY T. Kleivdal (Color Line),
R. Kjaer (Color Line as alternate),
D. Solem (Fjord Line)
POLAND P. Waszczenko (Unity Line)
SWEDEN J.E. Nilsson (Rederi AB Gotland),
S-D Brax (Brax shipping)
U.K. R. Peters (P&O Ferries Ltd)
44
ANNEX 2 - ECSA
MEMBERS ADDRESSES
ECSA
AUSTRIA
AUSTRIAN SHIPOWNERS' ASSOCIATION
Kolingasse, 12 – Postfach 3
1096 Wien
Tel: +43 1 317 42 830
Fax: +43 1 317 41 54
e-mail: office@oellvie.at
Website: www.oelsm.com
BELGIUM
ROYAL BELGIAN SHIPOWNERS’ ASSOCIATION
Brouwersvliet 33 bus 9
2000 Antwerpen
Tel: +32 3 232 72 32
Fax: +32 3 231 39 97
e-mail: info@brv.be
Website: www.brv.be
CYPRUS
JOINT CYPRUS SHIPOWNERS ASSOCIATION
Blue Anchor House, 4R, Parou Street
1082 Nicosia
Tel: +357 25360717, +357 22446350
Fax:+357 25358642, +357 22446351
e-mail: jcsa@jcsa-cy.org
DENMARK
DANMARKS REDERIFORENING
Amaliegade 33
DK - 1256 Copenhagen K
Tel: +45 33 11 40 88
Fax: +45 33 11 62 10
e-mail: info@shipowners.dk
Website: www.shipowners.dk
ESTONIA
ESTONIAN SHIPOWNERS’ ASSOCIATION
Luise 1 A
10142 Tallinn
Tel/fax: +372 646 01 09
e-mail: reederid@hot.ee
FINLAND
FINNISH SHIPOWNERS' ASSOCIATION
Satamakatu 4 A – PO Box 155
00161 Helsinki
Tel: +358 9 622 67 30
Fax: +358 9 669 251
e-mail : office@varustamoyhdistys.fi
Website: www.varustamoydistys.fi
ALANDS REDARFÖRENING
Hamngatan 8
22100 Mariehamn
Tel: +358 18 13 430
Fax: +358 18 22 520
e-mail : info@alship.aland.fi
FRANCE
ARMATEURS DE FRANCE
Rue de Monceau, 47
75008 Paris
Tel: +33 1 53 89 52 52
Fax: +33 1 53 89 52 53
e-mail : info@armateursdefrance.org
Website: www.armateursdefrance.org
GERMANY
VERBAND DEUTSCHER REEDER
Esplanade, 6
20354 Hamburg
Tel: +49 40 35 09 70
Fax: +49 40 35 09 72 11
e-mail: vdr@reederverband.de
Website: www.reederverband.de
GREECE
UNION OF GREEK SHIPOWNERS
Akti Miaouli, 85
18538 Piraeus
Tel: +30 210 429 11 59
Fax: +30 210 429 11 66
+30 210 429 01 07
e-mail: ugs@ath.forthnet.gr
IRELAND
IRISH CHAMBER OF SHIPPING
Tolka Quay Road
Dublin 1
Tel: +353 1 855 90 11
Fax: +353 1 855 90 22
e-mail: bks@iol.ie
ITALY
CONFEDERAZIONE ITALIANA ARMATORI
Piazza S.S. Apostoli, 66
00187 Rome
Tel: +39 06 6748 11
Fax: +39 06 6978 3730
e-mail: confitarma@confitarma.it
Website: www.confitarma.it
FEDARLINEA
G. G. Belli, 2
00153 Rome
Tel: +39 06 58 300 100
Fax: +39 06 58 09 412
e-mail: fedarlinea@fedarlinea.191.it
LITHUANIA
LITHUANIAN SHIPOWNERS
I. Janonio 24
5813 Klaipéda
Tel: +370 46 39 36 78
Fax: +370 46 39 36 79
e-mail: lsa@klaipeda.omnitel.net
LUXEMBOURG
UNION DES ARMATEURS LUXEMBOURGEOIS
Rue de Hollerich 20
1022 Luxembourg
Tel: +352 48 28 50 1
Fax: +352 48 28 71
MALTA
MALTA INTERNATIONAL SHIPPING COUNCIL
Exchange Building, Republic Street
Valletta VLT05
Tel: +356 21228193
Fax: +356 21228196
e-mail: ships@maltanet.net
Website: www.misc.com.mt
NETHERLANDS
KONINKLIJKE VERENIGING
VAN NEDERLANDSE REDERS
Wijnhaven 65 b,
3011 WJ Rotterdam
Tel: +31 10 414 60 01
Fax: +31 10 233 00 81
e-mail: kvnr@kvnr.nl
Website: www.kvnr.nl
NORWAY
NORWEGIAN SHIPOWNERS' ASSOCIATION
Rädhusgaten, 25 - Box 1452 Vika
0116 Oslo 1
Tel: +47 22 40 15 00
Fax: +47 22 40 15 15
e-mail: post@rederi.no
Website: www.rederi.no

POLAND
Zwiazek Armatorów Polskish
(POLISH SHIPOWNERS’ ASSOCIATION
Ul. Energetykow 3/4
70-952 SZCZECIN
Tel: +48 91 8143 391
Fax: +48 91 8143 398
e-mail: secretariat@polshipowners.pl
Website: www.polshipowners.pl
PORTUGAL
ASSOCIACAO DE ARMADORES
DA MARINHA DE COMERCIO
Rocha do Conde De Óbidos
Edificio Da Gare Maritima
2° Piso, Sala B
Cais de Alcântara
1350 – 352 LISBOA
Tel: +351 21 393 27 20
Fax: +351 21 393 27 29
e-mail: assamc@sapo.pt
ECSA MEMBERS ADRESSES
SLOVENIA
SLOVENIAN ASSOCIATION OF SHIPOWNERS
Obala 55
6230 Portoroz
Tel: +386 56766 249
Fax: +386 56766 130
e-mail: slovenia@shipowners.si
SPAIN
ASOCIACION DE NAVIEROS ESPANOLES
Dr. Fleming, 11 – 1° D
28036 Madrid
Tel: +34 91 458 00 40
Fax: +34 91 458 60 87
e-mail: anave@anave.es
Website: www.anave.es
45
annual report 2005-2006
SWEDEN
SWEDISH SHIPOWNERS' ASSOCIATION
Södra Hamngatan, 53
P.O. Box 330
SE-401 25 Göteborg
Tel: +46 31 62 95 25
Fax: +46 31 15 23 13
e-mail: srf@sweship.se
Website: www.sweship.se
U.K.
THE CHAMBER OF SHIPPING
Carthusian Court,
12, Carthusian Street
London EC1M 6EZ
Tel: +44 207 417 28 00
Fax: +44 207 726 20 80
e-mail: postmaster@british-shipping.org
Website: www.british-shipping.org
46
ANNEX 3
SHIPPING IN ECSA
ECSA
MEMBER COUNTRIES
BELGIUM
2005 was again an excellent year for the Belgian shipping compa-
nies and thus, according to the results of the updated Economic
Impact Study (Policy Research nv), there is no longer any reason to
doubt the efficiency of the shipping policy.
Policy Research’s conclusion was that, despite the new policy
coming into effect later than planned, most of the Belgian fleet
was already sailing under the Belgian flag at the beginning of 2005.
Added value in the merchant marine sector has risen by 65% since
2001 and employment for Belgians with 3%. The introduction of
the new shipping policy in Belgium got off to a good start. The new
policy framework also meant that the key players in the Belgian
shipping cluster kept their decision-making power in Belgium.
On the national level, a project concerning company taxation has
been finalized to permit private investment in ships on the same
lines as real estate certificates. For seafarers on board short sea
vessels separate wage conditions were negotiated.
After an absence of several years, Belgium was elected to the
Board of the International Maritime Organization after an inten-
sive election campaign by the Belgian government, supported by
the ship-owners. Belgium can reassume its international role as a
maritime nation.
Once again, the campaigns to promote the seafaring profession
that the maritime sector organizes in collaboration with the
merchant navy training institutions are proving highly successful.
Enrolment for the 2005/2006 academic year has increased in adult
education centres, secondary maritime training institutes and the
Maritime Academy. The Maritime Academy is developing an option
for students who are more interested in getting on with seafaring
than in acquiring an academic title. They will be able to take only
STCW-related subjects, leading to the granting of a seafaring
certificate. If they decide to obtain the academic title at a later
stage, the modular system will enable them to take the necessary
courses for graduating fully.
CYPRUS
Cyprus constitutes the 3rd largest shipping fleet in the European
Union, and is considered to be the largest third-party ship
management centre in Europe. The contribution of Shipping to
Cyprus is estimated to be between 2-4 % of the Gross Domestic
Product, which exceeds EUR 350 million per year. Another impor-
tant contribution of the Cyprus Shipping Industry is that it has
created many employment opportunities for Cypriots. The total
number of gainfully employed persons by Cyprus shipping ashore is
approximately 5,000 and approximately 25,000 seafarers are
employed onboard Cyprus flag ships at any one time.
The Cyprus Shipping Council is one of the closest co-operators of the
Cyprus Department of Merchant Shipping in the formulation of the
Government’s maritime related policy. No policy decisions concern-
ing shipping matters are taken by the Government without first
consulting the Council. This has been achieved through the partici-
pation of the Council at numerous joint working groups with various
Government Departments. Furthermore, the Council is regularly
called to appear before Parliamentary Committees as the represen-
tative body of the Cyprus Shipping Industry, when matters affecting
Cyprus Shipping are discussed at the House of Representatives.
During the EU accession negotiations, Cyprus adopted a new safe-
ty maritime policy, which concentrated on the effective control of
the ships and the improvement of the quality of the fleet, through
the implementation of stricter registration rules, the deletion of
substandard vessels from the Cyprus Registry, unscheduled
inspections of Cyprus flag vessels and a network of Independent
inspectors of Cyprus flag vessels. All the abovementioned efforts
and measures taken have paid off for Cyprus, and on 18 May 2005,
the Cyprus flag was removed from the “black list” of the Paris MoU,
and on 10 May 2006 was placed on the MoU’s “White List”.
The smooth development and operation of Cyprus Shipping is still
hampered by the Turkish trade restrictions against Cyprus flag
ships, which were introduced in 1987. Since Cyprus accession to the
EU, these restrictions demonstrate that the illegal and discrimina-
tory practice followed by the Turkish Authorities not only affect
Cyprus, but also the interest of the EU. The Turkish embargo
distorts the application of the principle of fair and free competi-
tion in shipping trade within the EU, undermines the economic
development and cooperation of the region, and violate all
commercial principles in shipping.
The Cyprus Shipping Council organised for the second time, the
“Day of the Sea” Event, which took place on 17 September 2006, in
Limassol. The “Day of the Sea” Event is a biennial “Open-Fair”
social event related to the Sea and Shipping. Its aim is to increase
public awareness of the Shipping Industry in general and at the
same time promote the image of the Council in Cyprus, as well as
maritime employment both onboard and ashore. Admission at the
Event was open to the general public and approximately 4000
people attended the Event.
Last but not least, the Cyprus Shipping Industry in cooperation with
the Cyprus Government organised for the ninth time with great
success, the biennial international shipping Conference “Maritime
Cyprus” on 25-28 September 2005, which attracted hundreds of
shipping executives and experts from all around the world. The
Conference was entitle “Shipping: What lies ahead?... A three
piece puzzle” and focused on three interlinked key issues, which
formed a “puzzle” for the Shipping Industry: Manning & Industrial
Relations, Ship Safety & Security and Financing.
 SHIPPING IN ECSA MEMBER COUNTRIES
DENMARK
Shipping is a unique Danish stronghold with Danish shipping
companies in the forefront of the most advanced segments of the
global shipping market. With an inflow of foreign currency
amounting to DKK 140 billion, shipping has cemented its position
as Denmark’s second largest export industry. At the turn of the
year Danish Shipowners’ newbuilding programme exceeded the
tonnage of the existing merchant fleet. More than 13 million dwt,
at a value of DKK 75 billion, were on order for delivery over the
coming three to four years. With its 500 ships and 10 million dwt,
the Danish merchant fleet has never been larger and this also
applies to employment in the industry both at sea and with a
growing number of onshore staff both at home and abroad.
Through an added chartering in of 30 – 40 million tdw, Denmark has
developed into an international centre for knowledge-based
commercial operation of ships.
The positive development, which has characterised Danish
shipping in recent years, must be seen as a unique combination of
the industrial know-how combined with a political regulatory
framework that together is the back bone of the competitiveness
of Danish shipping. The Danish Parliament and changing govern-
ments have pursued a far-sighted industrial policy, which has
established and maintained positive conditions for the industry.
Denmark’s International Ship Register and the tonnage tax system
have proven to be absolutely fundamental for maintaining an
efficient shipping sector in Denmark. The basis for Danish-flagged
ships competing internationally is laid down within the framework
of the EU recommendations for shipping taxation.
Although the wheels of the EU are grinding slowly as regards the
proposal for a new EU constitution and the handling of the EU
expansion, the EU with respect to shipping has not come to a
standstill by any means. For example, in November 2005 a compre-
hensive shipping package was launched in the form of the Maritime
Safety Package III, containing seven new legislative initiatives
relating to safety and insurance related matters. Even if the
proposals are mostly well-founded it is still important to seek to
carry safety and environmental stipulations through at an interna-
tional IMO-level rather than a regional EU level.
The shipping industry is a central part of the Commission’s very
ambitious work with the formulation of an all-encompassing
policy for the seas in the EU, the so called maritime Green-Book.
The stage is currently being set for a number of new governmental
initiatives with respect to the environment, while for the shipping
industry a predominantly global view remains. The shipping
industry has, in previous talks with the Commission, determined
that competitiveness, stability and international solutions are
vital in order to maintain the world’s largest maritime cluster in the
EU. The best example of such a policy is the EU’s rules, which
provide the member states with the opportunity to establish
competitive regulatory framework, such as the Danish
International Ship Register, DIS, and the Danish tonnage tax
regime. On the other hand one should clearly avoid short-sighted
maritime employment requirements for European flagged vessels
47
annual report 2005-2006
with a misguided reference to the need of keeping maritime knowl-
edge. The knowledge building in European shipping is today not
least land based in the shipping offices.
ESTONIA
Since Estonian shipping was privatised in the mid-1990s, AS Tallink
Grupp has been the most successful. Although Estonian shipping
does not receive any state subsidy at all, the company has
managed to successfully compete with major well-known Baltic
shipping companies. In 2006 AS Tallink Grupp bought Silja Line Ltd
becoming thereby the largest passenger and cargo carrier in the
Baltic Sea. Cargo-line between Finland and Germany was acquired,
with fast ferries.
Ships of AS Tallink Grupp sail on routes between Estonia and
Finland and between Estonia and Sweden, on which routes they
account for half of the passenger and freight carriage. A new route
was opened this year between Latvia and Sweden (Riga-
Stockholm). In the recent years the company has started to
modernise its fleet. Romantika, the most up-to-date passenger
ferry in the Baltic Sea, capable of carrying 2,500 passengers and
with the car deck having room for 1,000-meter lanes row of cars,
was put into service in 2001. A sister ship of the former, Victoria I,
was launched in 2004 and a third ship of the same series Galaxy
was delivered in April this year. A few more new ships for AS Tallink
Grupp are under construction.
As Saaremaa Laevakompanii (SLK), which until recently had only
operated on island ferries, is also developing at a vigorous pace.
Ferries of the line maintain daily traffic between the biggest West-
Estonian islands, Saaremaa and Hiiumaa. The company won state
procurement tenders for links to the Ruhnu Island in the Gulf of
Riga. Last year they opened a new ferry route between Saaremaa
(Estonia), and Ventspils (Latvia). In May 2006 a new ferry route
from the Estonian port of Sillamäe (near the Russian border) to
Kotka in Eastern Finland was introduced.
Amongst the members of the Estonian Shipowners’ Association,
the tug line AS PKL is also growing fast. During the past years it has
acquired new tugs with ADS propulsion devices and has widened its
area of services to the Port of Riga in Latvia. Thus far not all carry
Estonian flag.
FRANCE
The fleet under the French flag increased with one vessel in 2005,
amounting to a total of 213 units. It is worth pointing out two main
items of interest to French shipowners which became evident last
year and carried on in 2006.
Firstly, the future of the French tax lease scheme (GIE fiscal) is still
under threat from the European Commission to be re-qualified as
a non sectorial State aid for shipping, with risk for shipowners of
having to reimburse the fiscal advantage dedicated to ships
financed through it. Up to now, most of French shipowners have
delayed their new shipbuilding programme.
48
ECSA
Secondly, the RIF register: the law introducing the new French
international register was voted in May 2005. Due to a late release
of some additional legal texts, the entry into force of the French
second register became only effective mid February 2006. About 25
ships have been registered under the RIF register so far. This regis-
ter is open to every single ship operating on an international
market except for ferries on intra-community traffics.
When adopting the law, there were fierce discussions in Parliament
and between shipowners and unions about the mandatory number
of European seafarers to be included in the total crew.
Eventually, the shipowners’ point of view was adopted, with the
obligation to have on board each vessel 35% of European officers
and ratings (including the master) if the ship is to be financed
through the French tax lease scheme, and 25% if financed other-
wise. The unions considered last figure as a poor result and some-
how not satisfactory. So they decided to ask ITF, during the Rio FPC
of last year, to declare the RIF a flag of convenience and this is
what ITF did, on the basis of article 12 of the Oslo-to-Delhi Policy.
As a consequence, some French shipowners clearly said that they
would not register their ships under the RIF register as long as this
flag is being classified FOC by ITF. For the time being, Armateurs de
France is currently re-opening discussions with the unions, and it is
currently not clear what will happen next.
The law related to the RIF register also includes an exemption of
their contribution to the national social security scheme for
employers and also implies (under certain conditions) an exemp-
tion of payment of income tax for seafarers.
That last point is put forward in ongoing discussions with the
unions about the FOC classification of the register as an item to be
considered, as it is apparent that most French officers are asking
shipowners to urgently proceed to registration of their ships under
the RIF register to benefit from the exemption.
Another concern in France, as everywhere in the shipping world,
relates to recruitment (and the quality of training). Because of early
wastage among officers, especially in deep sea navigation, there is
clearly a shortage of officers, more specifically of engineers. As in
many countries, shipowners and other branches of the nautical
industry have launched a common reflection on how to attract
young people to careers at sea. A maritime cluster was created end
2005, both for the purpose mentioned above and also to promote
the maritime industry with the authorities and the public.
FINLAND
The Finnish merchant fleet amounts to 1,6 million GT. The average
age of the merchant fleet is about 20 years. Some newbuildings
have been registered under Finnish flag in the past year and hope-
fully at least some of the ships on order will carry the Finnish flag.
The Finnish merchant fleet is still almost totally manned by Finnish
seafarers (7500) due to strong opposition from the Seamen’s
Union against foreign employers.
Finland’s own foreign trade shipments rose to 89,6 million tons,
transit shipments being 5,6 million tons. The Finnish merchant
fleet transported 32 % of the exports and imports of the country.
The number of passengers transported by sea between Finland and
other countries was 16,6 million.
From the beginning of January 2005 a net wage system, in line with
the EU State Aid Guidelines, is in use even for passenger vessels.
The net wage system applies to all types of Finnish flagged vessels
in international traffic serving Finnish foreign trade, that is in
regular traffic to and from Finnish ports.
The law on tonnage tax has been in force for some years now, but
only one small shipping company has chosen this option. A func-
tioning tonnage tax system is still one of the most important issues
for Finnish shipping. It gives shipping companies the opportunity to
make long-term decisions in an operating climate corresponding
to that in competitor countries.
GERMANY
The German-owned and operated merchant fleet keeps on
growing: 206 newbuildings with 6,4 GT and a gross investment of
€ 6,7 Billion were put into service by German shipowners in 2005. In
addition 259 second-hand vessels with a total of 4,5 Million GT
were purchased from abroad.
On 1 January 2006, the tonnage owned by German companies flying
the German or foreign flags added up to 2.729 vessels with a total
of 50 Million GT. This is an increase of 154 and a total tonnage of
9,0 Million GT compared to the figures a year ago. The German-
owned fleet now ranks third in the world. It mainly consists of
containerships, i.e. 1.167 vessels with a capacity of 2,8 Million TEU.
This part of the fleet maintained its world-wide top position.
Amongst these vessels, 603 are flying the German flag and 2.126
are flying foreign flags, of which 1.751 are entered into a German-
sea-ship-register.
On 1 July 2006, the orderbook for deliveries to German shipowners,
including their affiliated companies abroad, consists of 703 vessels
with a total of 18,3 Million GT. This means a total gross investment
of ¤ 23,1 Billion. The majority of the newbuildings are container
vessels. This will keep the fleet modern, strong and efficient.
The change of government after the elections of September 2005
has not affected the positive development of the German shipping
industry. In its coalition treaty the new government confirmed the
basic principles of its predecessor in that the strengthening of the
maritime cluster was declared to be an important policy aim. In
particular, the tonnage tax and the additional measures for the
reduction of wage cost differences between the German flag and
foreign flags have been expressly confirmed. This was mainly due
to the fact that all agreements made by the National Maritime
Conference in 2003 had been fulfilled by the government, the union
and the shipowners. The shipowners have met their promise to
reflag more than 100 vessels. The number of ships flying the
German flag increased since the beginning of 2004 by 42%, their
 SHIPPING IN ECSA MEMBER COUNTRIES
tonnage by 100%. The number of young trainees grew more than
100% to around 900 within the same period while the current lack
of seafaring and shore-based personnel becomes more and more
apparent.
The German shipping industry is looking forward to the next
National Maritime Conference which will be organised in Hamburg
on 4 December 2006. At this Conference the continuation of the
positive development and its political base will be the focus. A
further important item will be the necessary expansion of the
capacities of the public training institutions which have become
small as a consequence of the training endeavours of the shipping
companies.
The German shipping industry is also looking forward to the coming
monitoring process of the European Commission which is scheduled
in the 2004 EU State Aid Guidelines for the beginning of 2007. To
reach compliance with European law is also under way in respect of
the nationality of masters on board German flag ships. The
manning regulation is going to be changed by admitting masters
having the nationality of EU Member States but requiring sufficient
knowledge of the German language.
GREECE
Developments in the global economy remained prosperous during
2005. The slow-down in global economic operations was limited,
despite the impressive increase in oil prices. On the other hand, the
decrease in freight rates during 2005 resulted in a reduced
increase rate of the gross receipts of transport services. More
specifically, the gross receipts from shipping services for Greece
reached €13,871mn, an increase of €564mn or 4.2% compared to
the unusually high earnings of 2004, which were themselves higher
by 40%.
In this context, the Greek-owned fleet strengthened its power by
increasing its total tonnage (dwt) by 4.1% whilst it maintained its
world premiership, accounting for 16.1% of world tonnage (dwt). It
is worthwhile noting that Greek owners control 19.8% of the world
tanker fleet (chemical and product carriers, crude oil) and 23.6%
of the world bulk carrier fleet in terms of dwt (excluding ships
currently on order - ships greater than 1,000GT). Moreover, the
Greek flag fleet amounted to 30.9 million GT, representing 22.1% of
the EU tonnage (GT), whereas, Greek-owned vessels flying the EU
Member States flags amount to 49.7% of EU shipping (dwt – ships
greater than 100GT).
In the shipbuilding sector, Greek-owned shipping achieved simi-
larly impressive rates resulting once again in a leading position of
the global venture of “Quality Shipping”. In particular, by the end
of March 2006 newbuilding orders by Greek interests (excluding
passenger, miscellaneous and offshore vessels) amounted to 364
vessels, representing 25.8 million dwt. Out of these vessels, 183 are
tankers corresponding to 14.9% of world tonnage (dwt) (i.e. 62
crude oil tankers amounting to 17.6% of world tonnage (dwt) and
121 chemical and product carriers amounting to 10.2% of world
tonnage (dwt)) and 92 bulkers corresponding to 14.4% of world
49
annual report 2005-2006
tonnage (dwt) on order in this category. The impressive order book
of newbuildings on behalf of Greek shipowners resulted in a further
reduction of the average age of the Greek-owned fleet to 15.3
years compared with 15.9 in 2005, whereas the average age of the
Greek registered fleet is 11.7 years compared to 11.6 years in 2005
(including vessels on order).
In order to manage this fleet, more than 1,000 shipping companies
operate in Greece employing more than 11,000 persons, the vast
majority of whom are Greeks. In a wider context, the maritime
cluster creates almost 200,000 jobs, 50,000 of which are for
seafarers.
The benefits to the Greek economy from shipping activities are
more than obvious. In order to maximize these benefits, the vision
of a large Greek fleet, closely related to the Greek economy and
society, could become a reality through the support of a modern
maritime centre of national, communal and international scope.
There are encouraging signs that this development is not far off.
The Balkan mainland and the wider area of the Near East, coupled
with the recent interest for the promotion of Chinese trade in
Europe through the geographic access of Greece, appear to call for
the services of such a centre and of such a big and modern fleet. In
the meantime, at a period when shipping is in the lead worldwide,
efforts have to be made in order to further improve the competi-
tiveness of the Greek-flag fleet.
ITALY
At the end of 2005, the Italian merchant fleet consisted of 1,434
ships totalling 11,848,404 gross tons, broken down as follows: over
1,000 GT : 683 ships, totalling 11,603,842 GT; from 100 to 999 GT :
751 ships, totalling 244,562 GT. As compared with the end of 2004,
an increase of 4% in tonnage and a increase of 1% in the ships’
number has been recorded. The fleet flying the Italian flag
accounts for 99% of the total Italian owned merchant fleet and
amounts to 1,428 totalling 11,364,209 GT; this is due to a large
number of new ships and also to the growing registration in the
Italian International Register.
The Italian units registered in the International Register are 530
totalling 10,424,743 GT; those in the Ordinary Register are 902
totalling 1,398,072 GT. The Italian ships temporarily flying a
foreign flag (bareboat charter registration) are 2 totalling 25,590
GT, representing about 1% of total tonnage. The portion of the
fleet owned by totally or partially privately owned bodies is equal
to 94%.
The Italian fleet proves again to be a young fleet: 60% of the ships
are less than 10 years old and 40% have not yet completed their
5th year of service. The modernization of the vessels, initiated
during the last 10 years, has continued. Between 1996 and 2005,
493 ships were delivered totalling about 6,7 millions GT.
During 2005, the strong seagoing orientation of Italian foreign
trade was confirmed, as the overall volume of international
transactions for the maritime transport of cargo and passengers
50
ECSA
registered 12,702 millions Euro compared to 17,608 millions Euro
for all the other systems of transportation taken together.
The maritime system produces about €36,300 million, equivalent
to 2.7% of GDP, the same amount as the agricultural sector. The
most significant portion of the maritime economy is to be assigned
to the maritime transport of goods and passengers, yielding some
€15,700 millions, equivalent to 43% of the entire maritime system.
This is a sector with a strong capacity to produce profit: the
national system creates yield of over €210 corresponding to each
additional €100 that goes to the shipping sector because of new
investments or increased exports and consumptions.
From the occupational point of view, 26,300 labour units employed
in the shipping sector activate over 60,000 labour units in other
branches of the economy. Therefore, the overall shipping sector
employs on the whole 86,300 people with a high multiplier, equal to
3,028. It is estimated therefore that 100 additional labour units in
the maritime sector become 328 in the entire economic system.
With the introduction of the international register and the
tonnage tax, the reform of navigation has been completed, in
compliance with the European Community directives; this means
that not only is the Italian shipping industry currently able to
operate on an equal footing with the international competition,
but there has been a noteworthy revival of maritime activities,
with the result that decision-making and administrative hubs that
might otherwise have been moved to offshore areas have been
kept (and in some case relocated) in Italy.
During 2005 there were major new developments regarding the
tonnage tax, in force since the tax period following 20 October
2004, the date on which the European Commission declared it to be
compatible with the new treaties establishing the system of
optional taxation applicable to navigation enterprises.
LITHUANIA
The entire Lithuanian transportation system plays an important
role in the economy of the country. Annually, this sector generates
over 8.0 % of the national GDP and employs about 4.0% of its total
labour force.
At the end of 2004, the Governmental Strategic Committee
approved some guidelines on the basis of a study on the
“Relevance and Economic Impact a Modern Shipping Policy on
Lithuania’s Economy.” A set of measures to be implemented was
proposed, aiming at improving the national setting. There are two
main fiscal measures, i.e. a Tonnage tax system and a reduction of
social contribution taxes.
It was finally concluded that a Modern Shipping Policy would have
a significant positive impact on the Lithuanian shipping sector and
the Lithuanian economy as a whole. The Lithuanian shipping sector
suffers from some weaknesses and threats, namely manpower
costs, a high average age of the merchant fleet and a declining
number of merchant vessels under Lithuanian flag.
In 2005, the Lithuanian Government and stakeholders came to a
mutual agreement, suggesting reducing Social contribution taxes.
Following endorsement by the European Commission, the
Lithuanian Parliament has to adopt implementing measures.
The Lithuanian Government also notified a proposal to introduce a
Tonnage Tax system in Lithuania, which was approved by the
European Commission on 19 July.
It is expected that these fiscal measures will come into force in
2007. Starting on 1st January, 2004 “0” % income tax was intro-
duced for all seafarers, liable to taxation in Lithuania, irrespective
of the flag of the vessel they work on. The question of reintroduc-
ing a Lithuanian flag link principle with regard to income tax
exemptions is now under scrutiny. The EC forced Lithuania to
reintroduce the flag link principle. Due to the fact that Lithuania
joined the EU in May 2004, Lithuanian seafarers have become
“more expensive” because of social contribution taxes, which are
to be paid by European shipowners. Many Lithuanian seafarers
were replaced by a labour force from third countries.
From 1st July, 2006 Lithuania has become a member of the Paris
Memorandum of Understanding. It is hoped that this fact will
reduce the number of Lithuanian ships being detained.
Increasing the competitiveness of the Lithuanian shipping
sector demands a continuing improvement of the reputation of
the Lithuanian flag and a further application of state aid
measures in line with the Community guidelines on State aid to
maritime transport. It should also enable a renewal of the
Lithuanian fleet.
Altogether, the year 2005 was a profitable year for the main
national shipping companies.
THE NETHERLANDS
Overall, 2005 was a good year for global shipping with a high
volume of cargo being carried and with good rates. Although Dutch
shipowners have benefited from this positive year, the Dutch share
of global transport could have been bigger. The reason being an
unsatisfactory business climate for shipowners in the Netherlands
resulting in a decline of the number of ships registered under the
Dutch flag.
Until 2003, the Dutch-registered fleet showed a steady increase of
three to five percent annually. Since then, the number of ships
under the Dutch flag has decreased with a similar percentage
resulting in a fleet of 759 ships in July 2005, which was the fleet
back in 2001.
In 2005, it once again became apparent that the Dutch shipping
industry acts as a booster for other segments of the Dutch
maritime cluster. Dutch shipowners have ordered a considerable
number of ships to be built in the Netherlands and the positive
consequences to a large part of the cluster (shipyards, maritime
suppliers, ports) have been clearly visible. EUR 2.8 billion was
 SHIPPING IN ECSA MEMBER COUNTRIES
spent on orders for new ships to be built on Dutch yards in 2005.
Dutch custom is responsible for an important part of this amount.
The importance of the Dutch shipping industry was also underlined
in the results of a study carried out by the University of Groningen,
published in September 2005. Maritime transport is in the top five
of most successful services in the Netherlands and came second
for size.
The worldwide role of the Dutch shipping industry is important too.
For instance, in terms of numbers (nearly 300), the Dutch short sea
shipping sector is number three in the world and number two in
Europe. The Dutch reefer trade and the heavy lift trade are also
significant world players.
The total number of seafarers employed by the Dutch merchant
fleet is 20,000. 192,000 people are employed within the maritime
cluster as a whole and it generates an added value of
€ 12.6 billion.
Dutch consumers too benefit directly from the shipping industry. In
combination with the low cost of maritime transport, the enor-
mous quantities of cargo transported cause a large number of
goods to become available at (relatively) low prices. Very often
the consumer is not aware of this, but 90 percent of goods for
consumption and production worldwide are transported by ship.
Last but not least, many short sea ships contribute to the reduc-
tion of traffic congestion on Dutch roads, by taking goods off
lorries and onto this type of ship.
In order to make the Netherlands a more attractive location for
shipping business, the Dutch government introduced a specific
shipping policy about ten years ago. The policy was meant to
contribute to the continuing development of not only the shipping
industry but also the maritime cluster as a whole. By now the
shipping policy is showing signs of aging. It has been copied and in
many cases even improved upon by the countries surrounding us,
and the Netherlands have fallen behind. The Ministry of Transport,
Public Works and Water Management has recognised this fact and
intends to carry out an evaluation of the policy over the past ten
years. Based on this evaluation there will be recommendations to
make the shipping policy attractive once again. It goes without
saying that the KVNR, as a trade organisation to the shipping
industry, will make a positive contribution in this matter.
Whilst renewing the Dutch shipping policy, the position of Dutch
seafarers will have to be addressed as well. They operate in an
international labour market of which the Dutch seafarers’ one is
only a part. Dutch seafarers are of value not only as long as they
work as officers or masters on ships flying the Dutch flag, but also
when –after an average of seven years at sea– they exchange their
seagoing jobs for shore positions. Often they occupy specialist
positions within the Dutch maritime cluster and thus continue to
make valuable contributions to the Dutch economy. However, their
competitive position in the international labour market is being
severely impaired by government policies often not specifically
aimed at the seafaring population. The new health insurance
51
annual report 2005-2006
system, the continuation of the retirement age of 60 and the Life
Course plan are a few examples.
National legislation “outranking” international legislation may be
a negative influence on the appeal of the Dutch business climate.
As it is potentially damaging to competitiveness with other flag
states it is something that should be guarded against. In 2005 it
looks as though it is happening anyway in the area of environmen-
tal legislation. The Inspectorate for the Environment has decided
to maintain national legislation for Dutch flag ships regarding
refrigerant agents in shore installations to the letter. Should this
prove to be legally feasible in the Netherlands –which according to
standard international interpretation it should not be– it will
definitely have an adverse effect on the competitive position of
ships registered in the Netherlands.
It is clear that the Dutch shipping industry’s added value can only
be maintained –and if possible increased– by amending the
Dutch shipping policy. The fact that half the ships operated by
Dutch shipowners are at present registered under foreign flags
provides great potential for the expansion of the Dutch register.
Amendment of the shipping policy should not be confined to the
remit of the Ministry of Transport, Public Works and Water
Management, but should extend to that of all other ministries
that have links with the shipping industry. Should there be no or
insufficient amendment to the policy, there is a very real chance
that – despite efforts by the Ministry of Transport, Public Works
and Water Management – the downward spiral plaguing the
Dutch shipping industry prior to 1996 will once again become
manifest.
NORWAY
Instability and controversy have marked the Norwegian maritime
policy over recent years. The Norwegian tonnage tax system, which
was introduced in 1996, is no longer competitive compared to
international systems, including tonnage tax systems in other
European countries. Over the last couple of years a clear trend has
been seen in which new shipping projects and activities, controlled
by Norwegian interests, are located outside Norway.
However, a government Shipping Policy White Paper in 2004 result-
ed in a very broad political majority in Parliament in favour of
aligning the Norwegian tonnage tax system with EU countries. The
majority included all parties except the Socialist Left Party. As a
response, Government appointed an expert commission to review
the Norwegian system and give recommendations with respect to
aligning it with the European model.
The White Paper did not result in a similar broad political majority
in the Parliament concerning the future conditions for Norwegian
seafarers. A wide majority was in favour of maintaining the current
net wage system for offshore vessels, but a majority voted to
discontinue the net wage system for ferries in international service
as of 2006. The liberal/conservative government lost the general
election, in September 2005. The election returned a three party,
red-green, majority government, including the Socialist Left Party
52
ECSA
as junior partner (holding the post as Minister of Finance). This is
the first majority government in Norway for 20 years. The new
government has committed itself to promote the Norwegian
maritime industries and has made it clear that it will not discon-
tinue the net wage system for ferries in international service.
The expert commission, which was headed by a professor in
economics, presented a split recommendation in March 2006. The
commission-minority recommended full alignment with European
tonnage tax systems. However, the majority gave a very theoretical
recommendation: in order to secure optimal allocation of resources
in the Norwegian economy the general Norwegian tax system must
apply on equal terms to all Norwegian industries and employees.
Consequently all special tax provisions for shipping companies and
seafarers should be abolished, even if this will result in shipping
activities leaving Norway. The commission report was out for public
hearings until June. It already seems clear that the theoretical
majority recommendation does not have much political support. A
joint maritime cluster, employing more than 90.000 Norwegians,
hopes that the Norwegian government will decide to make the
necessary changes to bring the Norwegian tonnage tax system in
line with the system in EU-countries. The government is expected to
draw a conclusion in the autumn of 2006.
The Norwegian controlled fleet declined by 9,3% to 37,1 million dwt
in tonnage terms from January 2005 to January 2006. However, the
fleet grew by 28 in numbers to 1.642 vessels. More than 2/3 of the
fleet fly EEA-flags, including more than fifty percent under
Norwegian flag.
At the beginning of 2006 Norwegian shipowners had a total of 212
new ships, valued at 64 mill NOK, and 20 rigs on order, valued at 32
billion NOK. The total value of 96 billion NOK (14,2 billion USD)
represents an impressive 140% increase compared to January
2005. Norwegian yards accounted for 59 of the ships on order,
another 35 orders were placed at other European yards in Poland,
Spain, Finland, Netherlands and Germany.
As of February 2005 some 55.500 persons of more than 60 different
nationalities were employed onboard Norwegian controlled merchant
vessels and rigs. Some 15.200 of these were Norwegian nationals,
10.600 of other EEA-nationalities and another1.100 of other
European nationalities. The most important non-European national-
ities serving onboard Norwegian controlled vessels were Filipinos and
Indians, represented by 16.600 and 4.000 seafarers respectively.
POLAND
As of 31.12.2005, Polish shipping companies owned (or co-owned)
130 ships which capacity amounted to 1 862 300 GT whereof, ships
flying Polish flag were only 17 what represented 2,1 % (in GT) of the
total figure. In comparison to 2004, it was 13 ships more (163 800
GT). An average age of the fleet was 20,1 years.
In June 2006, the country’s statistics on vessels on order (including
affiliated companies abroad) indicated 12 bulkers (406,170 dwt)
for delivery in 2008-2009.
In 2005, the Polish owned and co-owned fleet carried 9 362 400
tons of seaborne trade, i e by 58,4 % less than in 2004. As far as the
carriage of passenger in the Baltic Sea is concerned, there was an
increase of 14,1 % compared to the preceding year (713 000 pas-
sengers carried in 2005).
The passenger coastal fleet comprised 21 small units of total
4 300 GT. In 2005 maritime affairs were dealt with by the Ministry of
Infrastructure and later by the Ministry of Transport and
Construction. On 5th of May 2006 the Ministry of Maritime Economy
was established, thus fulfilling the expectation of the maritime
industries forum, including the PSA.
There are now great hopes in shipping circles that there could be a
speeding up of the process of consultation and work on the coun-
try’s maritime strategy for the years 2007-2015, which includes
such topics such as competitiveness, labour and growth.
As a result of intense discussions, on 12th April 2006 two separate
Polish associations agreed to jointly represent Polish Shipping
(20 members) at ECSA. The POLISH SHIPOWNERS’ ASSOCIATION
(PSA) now includes 4 Members from POLSTEM Group of Companies.
The PSA’s Secretariat has been transferred from Gdynia to Szczecin.
PSA is actively co-operating with the Polish Shortsea Promotion
Centre, Polish Chamber of Maritime Commerce and other organiza-
tions and associations in Poland.
Throughout the years, the Polish Government has been publicly
declaring support for the national shipping sector. Yet, the years to
come will show the results of a current discussion on a “tonnage
tax regime”. On the side of PSA there are hopes and expectations
that the proposed Tonnage Tax regime can be adopted by the Polish
Parliament in 2006. Regrettably, a reduction of social taxes and
other wage related proposals have not as yet been considered.
Experts of the Polish Shipowners’ Association are actively partici-
pating in all initiatives which are aiming at returning ships to the
Polish national flag. However, such a return will require a more
friendly approach from the Polish Ministry of Finance (State
budget respectively) as well as fiscal incentives in line with the
Community Guidelines on State aid to maritime transport.
PORTUGAL
The year 2005 was, once again, a frustrating one for the Portuguese
Shipowners. The Government change, in March 2005, did not result
in a policy change with respect to Portuguese shipping.
Consequently, Portuguese Shipowners continue to wait for the
adoption of the requested supportive measures, similar to those
already adopted a long time ago in most other Member States,
such as the adoption of a tonnage tax regime and measures in the
field of social security contributions and income taxation.
The new Government has highlighted the importance of maritime in
its Programme but the maintenance of three Ministries responsible
for maritime policies, will not result in an integrated, consistent and
efficient performance which the Portuguese shipping so requires.
 SHIPPING IN ECSA MEMBER COUNTRIES
The problems faced by the nautical school and maritime profes-
sional structure are still unsolved and the serious lack of national
seafarers faced by the shipowners in order to man their vessels
continues to increase.
The need to shape the legal picture to modern shipping and the
lack of an action plan to solve for once the excessive administra-
tive bureaucracy are also some features of prime importance that
are still unsolved.
Also strongly felt is the absence of an articulated and efficient
policy for the short sea shipping sector, which would allow the
profiting of the national maritime potentialities and the energiz-
ing of the investment in the sector.
Flagging out increases, whereas the Conventional Registry contin-
ues to show a dramatic decline reducing the number of registered
vessels to a meaningless 15 representing just 77,656 tdw.
A special reference deserves to be made to the celebration of the
IMO World Maritime Day Parallel Event held in Portugal on the 15th
November 2005 with the presence of the IMO Secretary General and
of senior personalities of institutions and international and
national maritime activities.
SPAIN
After two exceptional years of historical freight levels in most
market sectors, the downturn registered in 2005 affected also
Spanish shipping. The tonnage of the total merchant fleet
controlled by Spanish shipping companies decreased by 2.2%, in
terms of GT and 3.9% in DWT. Nevertheless, it is worth noting that
the decline was concentrated in the Spain’s registered ships, while
the fleet controlled under foreign flags remained practically
unchanged.
At the beginning of 2006, Spanish shipowners controlled 281
merchant ships with 4,083,308 GT and 4,941,178 DWT. Out of these
totals, 60% of the ships, 55% of the GT and 43% of the DWT were
flying the Spanish flag. Only 5 ships, of 6,193 GT and 7,198 DWT,
remained in the traditional Spanish ship register so that 99.7% of
the tonnage under national flag was registered in the Special
Canary Islands register.
Last year, Spanish shipping companies received only 7 newbuild-
ings, with a market value of about €237 million. Adding to the 18
new ships received in 2004 and the 13 in 2003, the total
investment, only in these 38 newbuildings, exceeds €1,477 million
in the last three years.
Spanish seaborne trade (imports + exports + national cabotage)
increased by 8.2% in 2006, reaching a new historic record of 340
million tonnes. General cargo trade showed an increase of 10.4%
to 101.4 million tonnes, dry bulk rose by 8.4% to 105.1 million
tonnes and liquid bulk shipments by 6.4% to 131.9 million tonnes.
Transport demand increased strongly both in exports (59 million
tonnes, +9.7%) and imports (234 million tonnes, +8.6%), while
53
annual report 2005-2006
cabotage trade increased more discreetly (45 million tonnes,
+4.1%). While Spanish exports consist mainly of general cargo
(65.7%), most of the import commodities are in bulk, both liquid
(44.3%) and dry (38.1%), summing up together 82.4% of imports.
In the cabotage trade, 47.7% is general cargo, 32.7% liquid bulk
and 19.6% dry bulk.
The new national regulations on the employment of non-EU
workers, effective by February 2005, made it extremely difficult to
employ non-European seafarers onboard Spanish flag ships. That
was the most important reason why, for the first time in ten years,
the Spanish fleet reduced its tonnage by 3% in 2005. This fact
demonstrates the permanent necessity for shipowners to have a
competitive framework for their operations. This has been further
confirmed in the first 5 months of 2006: while Spanish flag fleet
remained stable, the Spanish controlled tonnage under foreign
flags increased by a significant 14%.
Finally, as a consequence of the good results obtained by Spanish
ships on Port State Control inspections during last year, as from 1st
of January of 2006, the Spanish flag is in the Paris MOU White List.
Spanish shipping companies, coordinated by ANAVE, are working
together with the Maritime Administration to try and confirm this
achievement for the coming future.
SWEDEN
2006 is a significant year for the Swedish Shipowners´ Association.
The Association celebrated its centenary as the association for the
Swedish shipping industry.
In 2006, two important studies were presented as part of the
centenary celebrations. A new cluster study was presented with new
figures showing the growth within the shipping sector in Sweden.
Approximately 220 000 people are involved in the shipping cluster in
Sweden. The cluster has increased with 70 000 people since the last
report from 2001. A second report included a programme present-
ing a vision for the coming ten years for the shipping industry in
Sweden. This “Vision 2016” has 8 headlines which will be the lead-
ing star for the future work and ambition of the Swedish
Shipowners´ Association during ten years. Both reports are avail-
able on the website of the Swedish Shipowners´ Association -
(http://srf2.initiva.net/Sveriges_Redareforening_DXNI-
679_.aspx).
The operation conditions for Swedish shipping are still a central
question, primarily with respect to the implementation of the
tonnage tax in Swedish legislation. During 2005 a report was pre-
sented and hopefully this proposal for a new tonnage tax regime
will go to the Parliament during the fall 2006.
Education and research are core areas in the shipping industry of
the future and its development. Together with Chalmers University
of Technology and the School of Business, Economics and Law at
Gothenburg University, the Association and its members, in the
long term cooperation project, have established Lighthouse, a new
competence centre in Gothenburg for shipping related education
54
ECSA
and research. This long term investment from the shipping industry
will secure the future research and education which the industry
will require for the future.
An important issue, in which the Association is actively involved, is
that the Baltic Sea Area should be classed as a Particularly
Sensitive Sea Area (PSSA). As the leading country, Sweden has
been the driving force behind this issue at IMO and in mid-2005,
the decision was passed.
Statistics from the Port State Control Paris MoU show that Swedish
ships are among the very best in the world. The Shipowners´
Association and its members have a policy of zero tolerance with
respect to detentions following Port State controls.
An important question, which indirectly affects shipping in
Europe, is the review of the emission trading system for carbon
dioxide, which was initiated during the year. The Swedish
Shipowners´ view is that this tool, i.e. the trading system as such,
is superior to the alternatives of taxes, regulations or higher
charges. It means that European competitiveness is not weakened
more than necessary at the same time as the environmental
effects are rapidly achieved.
UNITED KINGDOM
The growth of UK-based shipping has continued through 2005/6,
supported by an internationally competitive tonnage tax regime.
Since the introduction of tonnage tax in 2000, the UK has benefit-
ed considerably from the recent period of buoyant shipping
markets. As a result, UK-owned shipping increased in tonnage
terms during 2005 by a further 5% to 17.1m deadweight tonnes
(dwt) and is now some 140% higher than in 2000. UK-registered
shipping outstripped even those achievements with an 11%
increase to 11.7m dwt over the year, an expansion of more than
300% over the past five years.
The combination of sustained growth and healthy shipping
markets has pushed up both turnover and the contribution sea
transport made to the UK balance of payments. In recently
released figures for 2004, shipping gross revenue broke the £10bn
(Euros 14.5bn) barrier. Sea transport has risen up the table of
service sector export earners, and now lies third for the first time
in many years, overtaking insurance, air transport and royalties
behind the two traditionally high earning sectors of financial
services and tourism.
Maintaining this level of success in fiercely competitive interna-
tional shipping markets is a major challenge. The EU’s revised 2004
Maritime State Aid Guidelines aim to set a fair approach between
the different national regimes of member states and to promote
the international competitiveness of EU-based shipping but their
detail takes a narrow approach to, for example, flagging which is
particularly unfortunate for an internationally focussed shipping
industry like that in the UK. The Chamber sees the development of
a strong and influential EU hub for international shipping and
shipping services as an essential component of the future global
structure for shipping; key to this is maintaining the competitive
advantage of European-based shipping.
The shipping industry, as we are all well aware, made a major
advance in the field of seafarers’ working conditions with the
adoption of the International Labour Organisation (ILO) Maritime
Labour Convention 2006, which is designed to provide an effective
safeguard of decent conditions for seafarers across the globe. The
challenge is to ensure that the convention in implemented in both
British and European law in a pragmatic manner which preserves
the flexible elements for which the Chamber and other shipping
organisations have fought hard.
On employment the Chamber has continued to push the
Government to take action in order to create a more favourable
employment environment for UK seafarers. The Chamber remains
firmly opposed to any mandatory employment link for tonnage tax
companies, although it is willing to consider voluntary commit-
ments by companies both in and outside tonnage tax. Improving
employment opportunities for officers and particularly ratings
continues to present a real test and challenge to policy makers and
shipowners alike.
Maritime governance issues and environmental performance have
remained high on the international, national and EU agenda during
2005 and throughout the Chamber has worked to ensure that
progress is achieved against a background of commercial realism.
Reductions in air emissions, to take only one example, must be
achieved using the latest technology and it seems vital that
legislation is flexible enough to allow industry to pursue the most
cost-effective solutions. In advance of the EU Future Maritime
Policy Green Paper the UK Government has its own commitment to
a ‘marine bill’ which will introduce a system for delivering sustain-
able development of the marine and coastal environment. As with
the EU Green Paper this legislation will seek to resolve conflicting
demands amongst sea-users; from energy, aggregates, shipping,
port and fishing interests, while also ensuring that conservation
objectives are achieved.
The Chamber continues to provide the base for the Sea Vision UK
campaign to raise awareness of the wider maritime sector whilst
encouraging young people to consider a career within the sector.
The campaign has benefited from the addition of three new staff
and an increased membership. It now engages with over 250
organisations and companies from across the sector. Sea Vision
UK is working hard to continue the legacy of SeaBritain 2005,
capitalising on the momentum generated by the maritime focus of
last year.
In 2006 Sea Vision partners will take part in wider range of public
events than ever. The dedicated Sea Vision website, which contains
the leading national maritime events database, is being continu-
ally updated to offer more service to the industry and public alike,
with new careers, news and partner support sections and links to
local attractions. The continued success of the UK maritime sector
guarantees an exciting future for Sea Vision UK, encouraging us all
to ‘take a fresh look at the sea.’
 ANNEX 4 55

GLOSSARY

annual report 2005-2006

AEO Authorised Economic Operator
AIS Automatic Identification Systems
ASEAN Association of South East Asian Nations. Encompasses 10 South East Asian countries, Indonesia, Malaysia,
Philippines, Singapore, Thailand, Brunei, Vietnam, Lao Peoples’ Democratic Republic, Burma/Myanmar and
Cambodia.
CIS Commonwealth of Independent States
CO2 Carbon Dioxide
CTPAT Customs Trade Partnership Against Terrorism
DDA Doha Development Agenda
DWT Deadweight Tonnage represents the maximum weight of cargo fuel and stores that a vessel can carry.
EEA European Economic Area
EFTA European Free Trade Association. Iceland, Liechtenstein, Norway and Switzerland are members of EFTA
ELAA European Liner Affairs Association
EMSA European Maritime Safety Agency
ETF European Transport Workers’ Federation
EU European Union
FP Framework Programme
GDP Gross Domestic Product
GHGs Greenhouse Gases
GT Gross Tonnage is the internationally accepted measurement of vessels, notably taking into account the volume of
the vessels enclosed spaces.
HNS International Convention on Liability and Compensation for Damage in connection with the Carriage of Hazardous
and Noxious Substances by Sea, 1996
ICS International Chamber of Shipping
ILO International Labour Organisation (UN)
IMO International Maritime Organisation (UN)
ISPS Code IMO International Ship and Port Facility Security Code
LLMC International Convention on the Limitation of Liability for Maritime Claims, 1976 and 1996
LNG Liquefied Natural Gas
MARPOL International Convention for the Prevention of Pollution from Ships, 1973 and Protocol of 1978
MEP Member of the European Parliament
MERCOSUR A political grouping of Argentina, Bolivia, Brazil, Chile, Paraguay and Uruguay aimed at promoting economic and
political cooperation.
MIF Maritime Industries Forum
NGO Non- Governmental Organisation
NOx Nitrogen Oxides
NVOCC Non Vessel Operating Common Carrier
PARIS MOU Paris Memorandum of Understanding on Port State Control
PM Particulate Matter
PSC Port State Control
R&D Research and Development
SECA SOx Emission Control Area
SOLAS International Convention for the Safety of Life at Sea, 1974
SOx Sulphur Oxides
STCW International Convention on Standards of Training, Certification and Watchkeeping for Fishing Vessel Personnel,
1995
TEN-T Trans- European Transport Networks
TEU Twenty Foot Equivalent Unit (container)
TP WATERBORNE EU Maritime Technology Platform
UNCITRAL United Nations Commission on International Trade Law
UNCLOS United Nations Convention on the Law of the Sea,1982
UNCTAD United Nations Conference on Trade and Development
VAT Value added tax
VOC Volatile Organic Compounds
WCO World Customs Organisation
WTO World Trade Organisation
56
ANNEX 5
STATISTICAL TABLES
ECSA

EEA REGISTERED TRADING FLEET BY MEMBER STATE

As at 1st April 2006 (100 GT and above)
TABLE 1
FLAG No GT DWT
AUSTRIA 8 34 072 44 437
BELGIUM 70 3 904 222 6 447 313
CYPRUS 924 19 466 852 31 148 849
DENMARK 373 8 013 799 9 770 951
ESTONIA 49 398 808 106 429
FINLAND 156 1 349 878 1 071 784
FRANCE 201 5 286 137 7 164 423
GERMANY 523 11 155 847 13 242 309
GREECE 1 245 31 380 389 53 531 029
ICELAND 14 6 449 2 893
IRISH REPUBLIC 42 169 667 245 007
ITALY 886 11 486 896 12 306 373
LATVIA 33 255 027 340 540
LITHUANIA 63 371 594 369 883
LUXEMBOURG 38 461 051 636 299
MALTA 1 208 23 505 022 37 740 966
NETHERLANDS 584 4 960 683 4 935 633
NORWAY 1 195 16 563 128 22 586 934
POLAND 55 78 751 64 591
PORTUGAL 152 1 123 628 1 434 109
SLOVAKIA 47 212 161 300 835
SPAIN 218 2 320 797 2 297 117
SWEDEN 350 3 655 908 2 328 607
UNITED KINGDOM 603 10 745 621 11 412 277
TOTAL 9 037 156 906 387 219 529 588
Source: Lloyd's Register - Fairplay

EEA AND WORLD TRADING FLEETS

As at 1st April 2006 (100 GT and above - thousand tonnes)
TABLE 2
EEA FLEET WORLD FLEET
TYPE NO GT DWT NO GT DWT
Bulk Carrier 1 258 39 042 70 591 6 416 192 204 344 804
Bulk/Oil Carrier 21 1 168 2 019 135 4 570 7 813
Chemical Tanker 168 1 139 1 781 1 338 5 562 9 090
Container (FC) 900 30 343 35 182 3 635 100 231 116 300
Cruise 79 2 694 356 403 12 058 1 440
Gen Cargo Multi Deck 586 2 676 3 587 4 365 19 403 26 514
Gen Cargo Single Deck 1 396 6 122 8 677 11 561 32 844 47 346
Gen Cargo/Passenger 56 53 18 317 591 292
Liquefied Gas Carrier 233 6 295 6 280 1 243 28 119 25 200
Oil Tanker 1 591 46 414 82 273 8 956 204 255 366 023
Other Tanker 75 140 204 380 884 1 278
Passenger 781 270 50 2 697 1 027 206
Reefer 143 967 1 050 1 237 6 199 6 661
Ro-Ro Other Cargo 278 4 030 2 586 889 9 490 6 563
Ro-Ro Passenger 1 167 9 536 2 143 2 714 15 358 3 889
Specialised Carrier 305 6 018 2 734 1 810 27 954 12 727
TOTAL 9 037 156 907 219 531 48 096 660 749 976 146
 STATISTICAL TABLES 57

annual report 2005-2006

ADDITIONAL SELECTED COMMERCIAL FLEETS
As at 1st April 2004 (100 GT and above - thousand tonnes)

EEA FLEET WORLD FLEET

TYPE NO GT DWT NO GT DWT
Dredging 347 1 007 1 311 1 215 2 628 3 156
Offshore Supply 450 929 1 038 3 221 3 730 4 098
Tug 1 678 489 217 11 141 3 084 1 170
TOTAL 2475 2425 2566 15577 9442 8424
Source: Lloyd's Register - Fairplay

THE EEA REGISTERED AND WORLD FLEET DEVELOPMENT

As at 1st April 2006 (100 GT and above)
TABLE 3
YEAR EEA WORLD EEA AS %
OF WORLD TONNAGE
N° MN. TONNES N° MN. TONNES
1990 7 659 72 326 GRT 38 221 383 955 GRT 18,8
2000 6 783 84 351 GT 45 023 518 221 GT 16,3
2004 9 291 152 709 GT 46 551 584 303 GT 26,1
2005 9 047 154 332 GT 46 801 618 109 GT 25,0
2006 9 037 156 907 GT 48 096 660 749 GT 23,7
Source: Lloyd's Register - Fairplay

EEA REGISTERED AND EEA CONTROLLED FLEET

As at 1st April 2006
TABLE 4

EEA registered, non-domiciled owner’s EEA Shipowners' controlled,

20,7 Mn GT EEA registered fleet
136,2 Mn GT

EEA Shipowners' controlled fleet

under third country flags
133,9 Mn GT

Source: Lloyd's Register - Fairplay

58
ECSA

AVERAGE AGE OF FLEETS

As at 1st April
TABLE 5
2005 2006
EEA WORLD EEA WORLD
DRY BULK 14,2 13,9 13,37 13,48
LIQUID 10,2 11,7 8,85 10,87
OTHER DRY CARGO 12,6 15,0 11,81 14,20
PASSENGER 14,4 12,6 14,39 12,42
TOTAL TRADING 12,24 13,40 11,24 12,75
Source: Lloyd's Register - Fairplay

THE WORLD MERCHANT FLEET'S DISTRIBUTION BY TYPE OF VESSEL

As at 1 July 2006
TABLE 6
1,000 GT
FLAG OIL TANKERS DRY BULK GEN. CARGO CONTAINER OTHER TYPES TOTAL
Panama 38 928 61 275 5 979 21 863 16 372 144 417
Liberia 32 564 10 820 1 263 16 009 2 184 62 840
Bahamas 16 837 7 223 3 412 2 104 8 528 38 104
Greece 17 260 10 406 235 2 350 1 566 31 817
Singapore 17 207 6 140 1 203 4 584 1 619 30 753
Marshall Islands 19 848 5 384 986 3 968 536 30 722
Hong Kong, China 7 018 17 396 1 699 4 167 314 30 594
Malta 7 813 11 219 2 178 1 227 1 333 23 770
China, People's Republic of 4 398 8 594 4 436 3 242 754 21 424
Cyprus 3 414 10 748 1 500 2 922 821 19 405
Norway 10 005 1 855 1 483 48 3 249 16 640
Japan 5 491 2 577 663 424 2 569 11 724
Italy 3 820 1 839 347 824 4 805 11 635
Germany 553 156 321 9 729 360 11 119
United Kingdom 1 688 1 069 394 5 266 2 403 10 820
Korea, South 1 141 5 138 739 1 197 491 8 706
United States of America 2 409 1 239 280 2 983 1 658 8 569
Denmark 1 979 316 251 4 979 621 8 146
Isle of Man 5 460 1 805 384 259 160 8 068
India 5 161 2 192 244 106 46 7 749
Bermuda 3 208 1 852 13 731 1 877 7 681
Antiuga & Barbuda 68 617 2 211 4 221 248 7 365
Malaysia 4 028 432 402 689 162 5 713
St Vincent & The Grenadines 392 2 326 2 053 110 553 5 434
Russia 1 605 645 2 515 159 388 5 312
Rest of the world 30 874 20 862 19 188 8 215 15 648 94 787
TOTAL WORLD TONNAGE 243 169 194 125 54 379 102 376 69 265 663 314
EEA Member Countries Source: Lloyd's Register - Fairplay
 STATISTICAL TABLES 59

annual report 2005-2006

NEWBUILDINGS ON ORDER
(Vessel types on multi annual order by Country of Domicile - as at June 2006)
TABLE 7
DRY CARGO CONTAINER TANKER
COUNTRY OF DOMICILE N° TOTAL DWT N° TOTAL DWT N° TOTAL DWT
AUSTRIA - - - - 1 38 500
BELGIUM 1 3 890 11 397 160 25 2 336 460
CYPRUS 18 257 070 31 551 130 26 1 175 388
DENMARK 5 15 800 99 7 005 550 125 7 223 847
ESTONIA
FINLAND 1 4 600 2 23 000 2 124 450
FRANCE - - 63 3 567 174 14 313 800
GERMANY 118 1 004 028 357 10 352 430 64 2 223 245
GREECE 5 36 300 12 300 100 216 13 382 480
IRELAND 10 45 016 - - - -
ITALY 8 85 600 22 969 300 81 3 027 395
LATVIA - - - - 14 667 360
LUXEMBOURG - - - - - -
MALTA - - - - 2 94 000
MONACO - - - - 4 293 600
NETHERLANDS 111 741 626 46 543 578 23 786 357
NORWAY 10 320 520 - - 80 3 700 570
POLAND - - - - - -
PORTUGAL 4 26 500 - - 3 450 000
SPAIN 1 4 500 2 33 000 4 83 999
SWEDEN - - - - 30 1 334 517
UK 26 185 900 7 272 979 60 2 143 358
EEA TOTAL 318 2 731 350 652 24 015 401 774 39 399 326
WORLD TOTAL 660 5 265 721 1 152 50 723 414 1 860 121 069 299
BULKER RO-RO PASSENGER
COUNTRY OF DOMICILE N° TOTAL DWT N° TOTAL DWT N°
AUSTRIA - - - - -
BELGIUM 3 324 200 6 85 520 -
CYPRUS 5 157 250 - - -
DENMARK 14 486 965 4 55 765 2
ESTONIA 3
FINLAND 2 37 600 10 165 000 6
FRANCE - - 1 1 000 5
GERMANY 46 3 084 602 2 14 600 3
GREECE 82 7 478 225 17 230 130 2
IRELAND - - - - -
ITALY 13 721 863 6 139 900 26
LATVIA - - - - -
LUXEMBOURG 1 76 600 - - -
MALTA - - - - -
MONACO 4 305 600 4 48 000 -
NETHERLANDS 4 273 000 - - 1
NORWAY 19 939 945 41 718 996 17
POLAND 12 406 170 - - -
PORTUGAL - - - - -
SPAIN - - 1 7 300 3
SWEDEN 3 27 000 5 66 100 5
UK 9 633 269 6 44 000 3
EEA TOTAL 217 14 952 289 103 1 576 311 76
WORLD TOTAL 832 66 446 642 223 3 324 865 157
Source: Fairplay Newbuildings
60
ECSA

WORLD SEABORNE TRADE

(Million Tons)
TABLE 8
CRUDE OIL IRON COAL GRAIN OTHER TOTAL
OIL PRODUCTS ORE CARGO EST. EST.
1990 1 190 336 347 342 192 1 525 3 932
2000 1 608 419 454 523 230 2 361 5 595
2004 1 792 461 589 664 236 2 789 6 531
2005 est. 1 820 488 650 690 242 2 894 6 784
2006 forecast 1 900 510 690 715 255 3 018 7 088
2007 forecast 1 975 525 730 740 265 3 108 7 343
Source: Fearnleys

WORLD SEABORNE TRADE

(Billion tonne-miles)

CRUDE OIL IRON COAL GRAIN OTHER TOTAL

OIL PRODUCTS ORE CARGO EST. EST.
1990 6 261 1 560 1 978 1 849 1 073 4 400 17 121
2000 8 180 2 085 2 545 2 509 1 244 7 130 23 693
2004 8 795 2 305 3 444 2 960 1 350 8 720 27 574
2005 est. 8 985 2 475 3 801 3 091 1 384 9 132 28 868
2006 forecast 9 380 2 600 4 035 3 219 1 459 9 611 30 304
2007 forecast 9 750 2 680 4 354 3 350 1 515 9 901 31 550
Source: Fearnleys

ANNUAL PERCENTAGE GROWTH IN GDP, OF WORLD MERCHANDISE EXPORTS IN REAL VALUE

AND OF MARITIME TRANSPORT VOLUME, 1995-2005
TABLE 9

14

12

10

65,7

4
3,2
2,8

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
-2

GDP Merchandise exports Maritime Transport Vol. in tonne miles

Sources: WTO & Fearnleys

 STATISTICAL TABLES 61

annual report 2005-2006

REAL MERCHANDISE TRADE GROWTH BY REGION, 2005
Annual percentage change
TABLE 10

South and
Central America
CIS

Africa & Middle

East
Asia

North America World

exports
Europe

0 2 4 6 8 10 12 14 16 18 20
Imports Exports

Source: WTO.

GDP AND MERCHANDISE TRADE BY REGION, 2004-05

(Annual percentage at constant prices)
TABLE 11
GPD EXPORTS IMPORTS
2004 2005 2004 2005 2004 2005
Norh America 4.1 3.4 8.0 6.0 10.5 6.5
United States 4.2 3.5 8.5 7.0 11.0 5.5
South and central America (a) 6.8 4.9 12.5 10.0 18.5 14.0
Europe 2.3 1.7 7.0 3.5 7.0 3.0
European Union (25) 2.2 1.6 7.0 3.5 6.0 2.5
Commonwealth of Independent States 8.0 6.6 13.0 4.5 16.0 16.5
Africa and Middle East 5.7 4.5 7.0 7.5 13.5 12.0
Asia 4.2 4.2 14.0 9.5 14.0 7.5
China 10.1 9.9 24.0 25.0 21.5 11.5
Japan (b) 2.3 2.8 10.5 1.0 7.0 2.5
World 3.9 3.3 9.5 6.0 - -
(a) Including the Caribbean. Source: WTO
(b) Trade volume data are based on Japan’s customs statistics. National account data
report a markedly stronger export and import growth in 2005.
62
ECSA

MERCHANDISE TRADE BY REGION IN VALUE

(Billion dollars and percentage)
TABLE 12
EXPORTS IMPORTS
VALUE ANNUAL PERCENTAGE CHANGE VALUE ANNUAL PERCENTAGE CHANGE
2005 2000-05 2003 2004 2005 2005 2000-05 2003 2004 2005
World 10121 10 17 21 13 10481 10 17 22 13
Norh America 1478 4 5 14 12 2285 6 8 16 14
United States 904 3 5 13 10 1733 7 9 17 14
South and central America (a) 351 13 15 29 25 294 7 6 28 22
Brazil 118 17 21 32 23 78 6 3 31 17
Europe 4353 11 19 20 8 4521 10 20 20 9
European Union 3988 10 19 19 7 4120 10 20 20 8
Other Western Europe 233 10 14 18 14 182 8 15 16 10
South-East Europe 132 21 29 34 17 219 19 33 36 18
CIS 342 19 27 36 29 216 21 27 31 25
Russian Federeration 245 18 27 35 34 125 23 25 28 28
Africa 296 15 26 30 29 248 14 21 29 16
South Africa 52 12 23 26 13 67 17 40 39 16
Africa less South Africa 244 16 26 31 33 181 13 16 26 16
Oil exporters (b) 166 18 33 41 45 63 17 17 34 17
Non oil exporters 78 11 18 18 12 118 11 15 22 16
Middle East 529 15 20 30 36 318 15 15 26 19
Asia 2773 11 19 25 15 2599 12 20 27 16
Japan 596 4 13 20 5 516 6 14 19 14
China 762 25 35 35 28 660 24 40 36 18
Four East Asian traders (c) 731 9 19 25 12 676 8 15 27 14
India 90 16 16 33 19 132 21 26 37 35
MERCOSUR (4) 163 14 19 28 20 113 5 11 38 18
ASEAN (10) 653 9 16 20 14 593 9 13 25 16
EU (25) extra-trade 1328 11 17 21 10 1460 10 19 21 14
a) includes the Caribbean. Source WTO
b) Algeria, Angola, Chad, Congo, Equtorial Guinea, Gabon, Libya, Nigeria, Sudan.
c) Chinese Taipei; Hong Kong, China; Republic of Korea and Singapore.

SELECTED MAIN BULK TRADES

CRUDE OIL TOTAL SEABORNE TRADE 2004
(Figures in million tonnes)
TABLE 13
TO: N/W MEDITER- NORTH SOUTH JAPAN OTHER OTHERS TOTAL
FROM: EUROPE RANEAN AMERICA AMERICA ASIA 2004
Middle East 65.8 62.9 130.0 10.6 179.9 352.7 30.3 832.2
Near East 0.1 11.0 1.1 0.0 0.0 0.0 0.0 12.2
North Africa 14.5 67.9 21.8 4.0 0.3 5.0 1.0 114.5
West Africa 5.2 21.2 91.7 9.0 7.6 67.4 3.7 205.8
Caribbean 5.0 8.5 189.1 12.5 0.1 6.0 0.3 221.5
South East Asia 0.0 0.0 5.3 0.0 10.2 25.3 15.4 56.2
North Sea 2.3 8.2 46.4 0.6 0.1 4.1 0.2 61.9
Others 88.1 67.2 40.3 14.3 2.2 32.0 5.7 249.8
TOTAL 2004 181.0 246.9 525.7 51.0 200.4 492.5 56.6 1754.1
Source: Fearnleys
 STATISTICAL TABLES 63

annual report 2005-2006

IRON ORE TOTAL SEABORNE TRADE 2004
(Figures in thousand tonnes)

TO: UK/ MEDITER- OTHER USA JAPAN CHINA OTHER OTHERS TOTAL
FROM: CONT. RANEAN EUROPE FAR EAST 2004
Scandinavia 6594 778 895 - - 691 216 6655 15829
Other Europe 477 - - - - 397 923 3446 5243
West Africa 7601 - 678 - - - - 2721 11000
Other Africa 7158 330 3201 - 10072 17014 1582 2311 41669
North America 12034 1347 295 - 857 1925 2257 4458 23173
S. America Atl. 46234 2350 8110 7460 27149 54407 20881 38214 204805
S. America Pac. - - - 403 4102 5701 2968 586 13759
Asia 630 139 - - 21938 39798 3710 2081 68297
Australia/N.Z. 14620 958 503 120 76250 69645 38767 5202 206064
TOTAL 2004 95349 5902 13681 7983 140368 189579 71304 65673 589838
Source: Fearnleys

COAL TOTAL SEABORNE TRADE 2004

(Figures in thousand tonnes)

TO: UK/ MEDITER- OTHER SOUTH JAPAN OTHER OTHERS TOTAL

FROM: CONT. RANEAN EUROPE AMERICA FAR EAST 2004
North America 12921 5810 4618 8170 10240 9234 3494 54487
Australia 19280 3315 6851 10328 102547 59318 23360 224999
South Africa 24231 7437 14449 2172 - 1340 6344 55973
S. America Carib. 16018 3949 4605 1678 44 40 21413 47747
China 1242 2229 492 676 28956 44326 6842 84763
FSU 17116 18475 6086 241 9298 7110 842 59168
Other East Europe 9020 114 4162 77 - - 1011 14384
Indonesia 4123 5731 3680 1449 24982 55402 10454 105821
Others 2771 - 1189 957 3917 7680 813 17327
TOTAL 2004 106722 47060 46132 25748 179984 184450 74573 664669
Source: Fearnleys

GRAIN TOTAL SEABORNE TRADE 2004

(Figures in thousand tonnes)
TO: USA CANADA SOUTH AUSTRALIA OTHERS TOTAL
FROM: AMERICA 2004
UK/Continental 2808 716 6006 - 260 9791
Mediterranean 3996 1667 6121 712 3503 15999
East Europe 642 45 583 - 3547 4816
Other Europe 408 113 2186 - 368 3075
Africa 14622 2247 7382 3827 11985 40063
Americas 26539 3232 7791 196 158 37917
Near East 3555 - 983 131 2894 7563
Indian Ocean 2107 755 4728 6695 4951 19237
Japan 22755 1673 768 2693 682 28571
Other FE 30138 5217 16430 9865 6746 68396
Others & Unspec. - 35 - 476 34 546
TOTAL 2004 107570 15699 52979 24595 35130 235973
Source: Fearnleys
64
ECSA

CONTAINER TRADES - FULL MOVES

TABLE 14

WORLD WIDE FLOWS

Year TEUs Growth
2004 105,0 million 14,6%
2005 115,7 million 10,2%
2006 (forecast) 127,8 million 10,5%

SELECTED MAIN TRADES

TRANSPACIFIC (*)
Eastbound Westbound
Year TEUs Growth TEUs Growth
2004 11,4 million 15,6% 4,7 million 7,0%
2005 12,8 million 12,0% 5,2 million 9,8%
2006 (forecast) 14,2 million 11,2% 5,7 million 10,3%
NORTH EUROPE & MEDITERRANEAN - FAR EAST
Eastbound Westbound
Year TEUs Growth TEUs Growth
2004 4,6 million 13,3% 8,2 million 17,4%
2005 4,9 million 6,5% 9,3 million 13,4%
2006 (forecast) 5,3 million 8,2% 10,5 million 12,9%
TRANSATLANTIC (*)
Eastbound Westbound
Year TEUs Growth TEUs Growth
2004 1,7 million 7,6% 2,3 million 4,10%
2005 1,8 million 5,2% 2,4 million 3,8%
2006 (forecast) 1,9 million 3,2% 2,5 million 5,6%

OTHER TRADE ESTIMATES

North - South vice-versa 20 million TEU
Regional 45 million TEU
Intra Asia 33-35 million TEU
(*) Including Canada and Mexico Source: Drewry Shipping Consultants
 STATISTICAL TABLES 65

annual report 2005-2006

TOP 25 CONTAINER LINES AS AT 1ST AUGUST 2006
TABLE 15

RANK OPERATOR TOTAL EXISTING CHARTERED ON ORDER

2006 TEU SHIPS TEU SHIPS CAPACITY % TEU SHIPS % EXIST
CAPACITY
1 APM-Maersk 1 729 818 576 955 773 404 55,3% 633 237 118 36,6%
2 MSC 937 989 306 325 118 105 34,7% 308 887 43 32,9%
3 CMA CGM 605 969 274 374 907 193 61,9% 275 872 57 45,5%
4 Evergreen 529 405 162 188 987 59 35,7% 124 288 26 23,5%
5 Hapag-Lloyd 447 548 137 20 846 73 4,7% 63 482 10 14,2%
6 COSCO Container 389 179 133 169 346 36 43,5% 156 018 24 40,1%
7 CSCL 368 710 129 165 021 51 44,8% 15 655 34 42,5%
8 Hanjin / Senator 339 304 86 262 698 67 77,4% 140 773 22 41,5%
9 APL 331 396 105 204 126 69 61,6% 117 358 29 35,4%
10 NYK 318 019 120 149 109 78 46,9% 204 708 35 64,4%
11 MOL 272 748 89 147 359 56 54,0% 113 588 17 41,6%
12 OOCL 271 937 70 110 251 41 40,5% 90 894 18 33,4%
13 K Line 257 631 84 130 161 54 50,5% 120 144 20 46,6%
14 CSAV 243 523 87 241 938 86 99,3% 39 246 6 16,1%
15 Zim 224 940 96 103 423 55 46,0% 182 356 33 81,1%
16 Yang Ming Line 212 526 79 81 073 36 38,1% 118 138 24 55,6%
17 Hamburg-Süd 199 422 98 126 477 74 63,4% 102 293 28 51,3%
18 Hyundai M.M. 156 939 39 111 887 25 71,3% 165 800 25 105,6%
19 PIL (Pacific Int'l Line) 139 351 102 50 273 32 36,1% 47 415 19 34,0%
20 Wan Hai 122 250 72 36 813 25 30,1% 49 022 11 40,1%
21 UASC 78 743 33 15 705 8 19,9% 54 400 8 69,1%
22 IRIS 56 642 60 592 9 1,0% 74 812 19 132,1%
23 MISC Berhad 51 512 20 15 688 6 30,5% 7 943 1 15,4%
24 RCL (Regional Container L.) 47 675 40 8 079 6 16,9%
25 Grimaldi (Napoli) 45 113 38 1 434 3 3,2% 6 660 6 14,8%
TOTAL TOP 25 - capacity employed 8 378 289 3 035 3 997 084 1 651 3 212 989 633
TOTAL Container Liner World 9 950 354 5 615
Source BRS Alphaliner

EUROPEAN COMPANIES

Main lines' consolidated subsidiaries :

APM-Maersk includes Safmarine, Portlink and MCC, ex-P&O Nedlloyd
CMA-CGM includes Delmas Group (OTAL, Setramar), ANL, Feeder Associate System, Cagema, MacAndrews
CSAV includes Norasia, Libra, Montemar, Hansa Star Line and Euroatlantic Container Line (ECL)
Evergreen includes Hatsu Marine, Lloyd Triestino
NYK includes Tokyo Senpaku Kaisha (TSK)
Zim includes Gold Star Line and Laurel Navigation
Hamburg-Süd includes Columbus Linie, Aliança, Crowley American Transport, Ellerman and Kien Hung
Happag-Lloyd includes ex CP-Ships
Grimaldi includes ACL
66
ECSA

MOU PORT STATES’ INDIVIDUAL CONTRIBUTION TO THE TOTAL AMOUNT OF INSPECTIONS 2005
TABLE 16

% INSPECTION OF MOU TOTAL

%-INSP. WITH DEFICIENCIES
DETENTS WITH RO RELATED

% INSPECTED SHIP CALLS

INDIVIDUAL SHIP CALLS

(25% COMMITMENT)
INSPECTIONS WITH
MOU PORT STATE

DEFICIENCIES *
DEFICIENCIES
INSPECTIONS

% DETAINED
DETENTIONS
Belgium 4975 1426 450 50 10 31,56 3,51 28,66 6,69
Canada 1850 896 275 37 10 30,69 4,13 48,43 4,2
Croatia 1228 411 238 16 2 57,91 3,89 33,47 1,93
Denmark 2361 613 190 14 0 31 2,28 25,96 2,88
Finland 1203 394 86 7 0 21,83 1,78 32,75 1,85
France 5730 1831 944 51 4 51,56 2,79 31,95 8,59
Germany 5238 1746 780 36 8 44,67 2,06 33,33 8,19
Greece 2284 772 327 33 5 42,36 4,27 33,8 3,62
Iceland 356 104 38 2 0 36,54 1,92 29,21 0,49
Ireland 1251 422 238 19 2 56,4 4,5 33,73 1,98
Italy 6505 2392 1506 226 29 62,96 9,45 26,39 11,22
Netherlands 5400 1373 776 71 11 56,52 5,17 25,43 6,44
Norway 2301 580 166 14 2 28,62 2,41 25,21 2,72
Poland 2583 723 366 12 1 50,62 1,66 27,99 3,39
Portugal 2697 1021 552 60 10 54,06 5,88 37,86 4,79
Russian Federation 3693 1104 738 37 8 67,21 3,37 29,89 5,15
Slovenia 744 247 129 69 27 52,22 27,94 33,19 1,17
Spain 6141 2169 1317 131 11 60,72 6,04 35,32 10,17
Sweden 2716 737 192 10 1 26,05 1,36 27,13 3,46
United Kingdom 6288 1895 1414 90 22 74,62 4,75 30,14 8,89
Source: Paris MOU
*) Involving responsibility of the Recognised Organisation which has issued the relevant certificate(s).
 STATISTICAL TABLES 67

annual report 2005-2006

WORLD TANKER INCIDENTS BY CAUSE 1978-2005
TABLE 17

1000 War
Hull & Machinery
Fire/Expl
800
Grounded
Coll/Contact
600 Msc

400

200

0
80 85 90 95 00 05
19 19 19 19 20 20
Source intertanko

NUMBER OF SPILLS OVER 700 TONNES

TABLE 18

25 Spills per year 10 year average

20
1980-89
9.3 spills per year 1990-99
15 on average 7.8 spills per year
on average
2000-05
3.7 spills per year
10 on average

0
1980 1985 1990 1995 2000 2005

Source: ITOPF
68
ECSA

QUANTITIES OF OIL SPILT

TABLE 19

650

600

550 ABT Summer

260,000 tonnes
Castillio de Bellver
500 252,000 tonnes
450

400
(000's of tonnes)

350 Khark V
80,000 tonnes
300
Exxon Valdez
250 37,000 tonnes
200 Prestige
63,000 tonnes
150 Erika
20,000 tonnes
100

50

0
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004

Source: ITOPF

COMPARISON OF CO2 EMISSIONS BETWEEN DIFFERENT TRANSPORT MODES

TABLE 20

700
air freight
600 747-400
1,200 km
flight
CO2 (grams per tonne/kilometre)

500

400

300
heavy truck
with trailer cargo vessel cargo vessel
200 2,000-8,000 dwt over 8,000 dwt

100

Source: NTM (Swedish Network for Transport and the Environment)

 STATISTICAL TABLES

annual report 2005-2006

69
ECSA

70
 ECSA
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