Bimco warns on Erika rules impact

Citation

Grey, M. (2001), "Bimco warns on Erika rules impact", Disaster Prevention and Management, Vol. 10 No. 2. https://doi.org/10.1108/dpm.2001.07310bab.006

Bimco warns on Erika rules impact

Bimco warns on Erika rules impact

European proposals for the accelerated phase-out of old single-hulled tankers by January 1, 2003, could lead to more than 500 tankers of nearly 64m dwt becoming redundant and requiring replacement and demolition. Research by the Baltic and International Maritime Council (Bimco) on the likely consequences of proposals by Belgium, France and Germany to the International Maritime Organisation in the wake of the Erika pollution, indicates that 513 tankers of 63.9rn dwt would have to be "recycled" as they reach or exceed the age of 23-26 years by this date. Under existing Marpol rules as presently implemented, only 55 tankers would have to be scrapped by this date.

Proposed

Bimco comments on what has become known as the "French" proposal, which differs only in detail from those proposed by the European Commission, are submitted for discussion at the critical October meeting of the Marine Environment Protection Committee, which is expected to be dominated by Erika-related issues. Bimco deputy secretary-general Steen Stender Petersen said that the figures represent a "preliminary" assessment of the consequences and only consider ships of over 20,000 dwt and built after 1973. There are more than 4,000 tankers smaller than 20,000 dwt which would be subject to the same phase-out proposal. According to the Bimco paper – which follows an assessment last week by the Brussels-based Alliance of Maritime Regional Interests in Europe, which suggested proposals to ban single-hulled ships would be "economically damaging" – the joint French, Belgian and German proposals, if implemented, would create "a very serious condition" on the oil supply market.

Crises

It forecasts that the lack of available ships would "send the freight rates rocketing sky-high", precipitating both national and international economic crises with a potential lack of oil supply. The Bimco paper also concludes that, while shipyards have in recent years been building between 6m and 10m dwt per annum, the replacement of more than six times this tonnage inside a two-year time frame "is not likely to be possible". Further, the next proposed phase-out deadline for Marpol tankers would mean that a further 599 tankers of 69.6m dwt would have to be scrapped. Bimco also comments on the ability of the demolition industry to absorb such tonnage quickly in both these phase-out "peaks". A likely scenario, it suggests, would be that many ships will be laid up and slowly deteriorate, causing a hazard where they are anchored. A quick decision taken in the aftermath of the French pollution could lead to a number of perfectly good ships being phased out at a very young age, with "huge investments in maintenance being wasted", it says. One ship will meet the 2008 deadline at the age of 11 years, while the study has discovered five vessels which will be 12 years old and 17 ships only 13 years old when the 2008 deadline kicks in. Bimco has asked the commission for an impact study of the consequences of the proposed accelerated phase-out of single-hulled ships. It says no study has yet been completed.

Michael Grey

Lloyd's Casualty Week, Vol. 321 No. 5, 28 July 2000