Global Regulation for a Global Industry

1. Shipping is an international industry which depends upon a global _______ framework to operate efficiently.

2. Shipping enjoys a relatively high level ‘playing field’ between maritime nations, as well as healthy ______ between individual shipping companies, of which there are around 10, 000 involved in international trades, operating about 50, 000 ships.

3. Shipping is highly regulated at the global level, notably by the United Nations International ________ Organization (IMO), which is responsible for safety of life at sea, maritime securities and the protection of the marine environment. In addition, the International Labour Organization (ILO) establishes standards of employment and working conditions for seafarers.

4. It is vital that regulations on matters such as construction standards, navigational rules and crew qualifications are common to all ships in international trade. When a ship sails from Brisbane to Buenos Aires, the same rules need to be applied at both ends of the voyage. The ______ would be a web of conflicting national regulations, resulting in market distortions and administrative confusion that would compromise the efficiency of world trade.

5. The level of ratification and enforcement of IMO Conventions is very high in comparison with international rules adopted for land based industries. For example, the provisions of the Safety of Life at Sea Convention (SOLAS) and the International _______ for the Prevention of Pollution from Ships (MARPOL) have been implemented by virtually every maritime country. IMO regulations are enforced on a global basis and nations have the power to detain foreign ships in port if they do not conform to international rules.

6. ILO has also adopted the Maritime Labour Convention (MLC) which is shortly expected to be implemented on a global basis, to provide a level playing field with regard to seafarer’s employment ________.

7. The safety record of the industry and its environmental performance are impressive. National and regional policy makers occasionally question the ______ of the international regulatory regime which shipping operates.

8. But when consideration is given to the difficulties involved in securing international ________ on complex technical requirements, IMO is a model of efficiency.