Rapport 2005-2006

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ANNUAL REPORT 2005-2006

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ECSA, formed in 1965, comprises the national shipowner associations of theEU andNorway.

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

Its aim is to promote the interests ofEuropean shipping so that the industry can bestserveEuropean and international trade and commerce in a competitive free enterprisenvironment to the benefit of shippers and consumers.

ECSA AS ANORGANISATION

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FOREWORD BY THE PRESIDENT 6EUROPEAN SHIPPING IN A GLOBAL MARKE T 8

ECONOMIC AND TRADE DE VELOPMENTS 8

SHIPPING MARKE TS AND THE EUROPEAN FLEE T 8

OUTLOOK 9EUROPEAN TRANSPORT POLICY 10

RE VISED WHIT E 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 ShippingEUROPEAN PORTS POLICY 14

SECURITY 16

SUPPLY CHAIN SECURITY 16ADVANCE CARGO DECLARATION 16

SAFE TY ANDENVIRONMENT 18

THIRD MARITIME SAFE TY PACKAGE 18ENVIRONMENT 19

AirEmissions 19EU Thematic Strategy for the Protection of the MarineEnvironment 20

Ship Recycling 20

THE HUMANELEMENT 22

MARITIME LABOUR CONVENTION 23

MARITIME EMPLOYMENT 23

MAINTAININGEU MARITIME KNOW-HOWESSENTIAL FOREUROPE 23

PIRACY AND ARMED ROBBERY 25

MARITIME E XT ERNAL RELATIONS 26

WTO-DDA NEGOTIATIONS SUSPENDED 26EU BILAT ERAL TRADE RELATIONS 26

BILAT ERAL MARITIME RELATIONS 26

TABLE OFCONTENTS

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APPLICATION OFEU COMPE TITITION RULES ON MARITIME SERVICES 28LINER SHIPPING 28

TRAMP SHIPPING 28

LEGAL ISSUES 30CRIMINAL SANCTIONS FOR SHIP-SOURCE POLLUTION 30

PROPOSAL FOR A DIRECTIVE ON CIVIL LIABILITY AND FINANCIAL SECURITIES FOR SHIPOWNERS(MARITIME SAFE TY PACKAGE III) 30

PROPOSAL FOR A REGULATION ON THE LIABILITY OF CARRIERS OF PASSENGERS BY SEAAND INLAND WAT ERWAYS IN THE E VENT OF ACCIDENTS 31

PASSENGER SERVICES 32

PASSENGER RIGHTS 32

TAXATION – PROPOSED SUPPLY OF SERVICES DIRECTIVE 32

TRAVELLERS ALLOWANCES 32

RESEARCH & DE VELOPMENT 34EU MARITIME INDUSTRIES TO STAY ON THE INT ERNATIONAL FRONTLINE 34

INT ERNAL MARKE T ISSUES 36ENLARGEMENT 37EUROPEAN CONSTITUTION/CONVENTION 37

ECSA INT ERNAL 38ECSA SECRE TARIAT MOVES TO NEW PREMISES 38

ANNE 40ECSA STRUCTURE 40

ANNE 44ECSA MEMBERS ADDRESSES 44

ANNE 46

SHIPPING INECSA MEMBER COUNTRIES 46

ANNE 55

GLOSSARY 55

ANNE 56

STATISTICAL TABLES 56

TABLE OF CONTENTS

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EUROPEAN SHIPPING KE Y FOREUROPEAN

AND GLOBAL TRADE

The past year was generally a good one for shipping. Worldseaborne trade continued to increase and rate levels wereoverall healthy.European shipping continued to play a key rolein global maritime trade with a controlled fleet of almost 41 %of the world merchant fleet.European shipowners are active inall the different shipping sectors offering maritime servicesintraEurope, linkingEurope with its main trading partners andin cross trades between different continents.

The global economic outlook for the remainder of 2006 and for2007 remains still positive but may of course be influenced bypolitical factors. For shipping optimism is also warranted,however, factors such as imbalances in trade, high oil pricesand phasing in of newbuildings may have some negative impactin some sectors.

A REALISTIC APPROACH IN TRANSPORT POLICY WELCOMED

The past year was marked by Commission initiatives to reviewEU transport policy papers. A constructive consultationprocess on the mid-term review of the 2001 White Paper onTransport Policy resulted in a realistic approach taking intoaccount experience gained and the suggestions of industry. Itis recognised that efficient transport capacity is a key elementto apply the Lisbon Policy aiming at makingEurope the mostcompetitive economy of the world. In this context investmentsin ports and hinterland connections enabling multimodalmaritime services to contribute to quality logistic chains areessential.

The review of the action programme on the promotion of shortsea shipping demonstrated the successful development of thistransport mode. Action should now concentrate on furtherimprovements on structural hindrances.

ECSA looks forward to further constructive discussions with theEU Institutions and stakeholders on applying the policies assuggested. This includes the debate on aEuropean Port Policythat 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 FutureMaritime Policy, launching a debate on a broader maritimepolicy, recognises the importance and the economic potentialof the maritime dimension inEurope. The paper recognises theessential role that shipping services have for theEuropeaneconomy and for the daily lives and wealth ofEuropean

citizens. This is heart-warming, particularly taking int

account that this is often ignored by theEuropean citizens atlarge.

ECSA will directly contribute to the consultation process aensure that the role of maritime transport and ports in thelogistic chains that link the single market to the world economy is safeguarded. Shipping and ports should be able to woand expand taking into account the global environment thathey are operating in.

SHIPPING A SAFE ANDENVIRONMENTALLY FRIENDLY

INDUSTRY The third Maritime Safety Package anticipated in last yeaannual report was issued in November 2005 and is now gothough the institutional discussion process. The reactions othe industry are in general positive and supportive, thougsome problems may arise in respect of national competenceConcern has been expressed on the proposal on Civil LiabiThe industry recommends a realistic approach that should the first instance concentrate on the ratification and applica-tion of existing legislation laid down in the IMO. New legtion should only be introduced if it has clear added value.

Though it is recognised that shipping is an environmentafriendly transport mode, the industry is committed to furtheimproving its environmental performance. It should, howevbe realised that a holistic international approach to find anoverall environmental benefit for the long term is the oneffective solution.

SECURITY

Now that the ISPS Code and the relevantEU Regulation andDirective are in force for some time, the main attention hafocussed discussions on the implementation of the securitmeasures contained in the Customs Code, particularly tadvance cargo declaration. An industry coalition of transpoindustries has made a number of detailed submissions aimeat having an efficient security checking system thereby avoiing unnecessary bureaucracy. The exercise has been difficultview of its complexity.ECSA hopes that the useful suggestionsmade by the transport industry coalition will be taken intaccount.

MARITIME LABOUR CONVENTION WELCOMEDECSA welcomes the adoption of the ILO Maritime LabStandards Convention in February 2006 as a global solution a global industry. The social partnersETF/ECSA are examining

FOREWORDBY THE PRESIDENT

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in a Social Dialogue Working Group all aspects of a possible

incorporation intoEU law. The priority forECSA is that theConvention is ratified as soon as possible by the requirednumber of States allowing early application.

Efforts to maintain maritime know-how inEurope by attractingyoung people for a maritime career are continuing. This is inline with the Transport Council Conclusions adopted under theUK Presidency in December 2005. An outward looking approachon maritime employment, taking into account thatEuropeanshipping is working in a global market, is essential. In thiscontext, it is evident that restrictive and/or labour protection-ist measures are very unhelpful and would have the opposite

effect to that intended.

NEWECSA PREMISES FOR BE TT ER SERVICESAND CONTACTS

The office occupiedECSA in rue Ducale 45 in Brussels for morethan 19 years became too small. HenceECSA has moved tolarger premises in rue Ducale 67 with larger meeting facilitiesoffering a better service to the membership and allowing bettercontacts with theEuropean 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, theEuropean Parliament and the industries ofthe maritime cluster.

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

Lennart Simonsson

FOREWORD BY THE PRESIDENT

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Continuing growth with changing trade patterns and positive outlook

ECONOMIC AND TRADE DE VELOPMENTS

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 energyand other commodities. Core inflation stayed low, but concernsbegan to mount about the growing imbalances in the globaleconomy. World trade growth decelerated after the 21% boom in2004, but still increased by 13%, for the first time surpassing US

$ 10 trillion. The increasing oil prices notably pushed up theexport values of the producing countries in Africa, MiddleEastand the CIS. China continued its particular role with a growth inGDP of about 10%, continued growth in exports by 25%, butimports 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 MARKE TS AND THE EUROPEAN FLEE T

In terms of trade and ocean transport demand several regions

and countries demonstrate quick development, such as LatinAmerica, 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 terms amount to about 57% of whatEU exports and 38% of whattheEU imports. China accounts for 42% of iron ore trade carriby sea, but (still) for less then 8% of oil demand – the US is dominant oil importer with 25%. China’s container tradacross the World and intra-Asia continue to burgeon, havingstrong influence on the employment of increasing capacity.

International seaborne trade volume in 2005 increased 3,9% amaritime transport in tonne-miles grew by 4,7% to abou28.868 billion tonne-miles (+6,7% in 2004). Volumes werealways dominated by the rather low value bulk commodities,trade and dry bulk shipments went up by 2,4 and 4,7% resptively. LNG shipments continued their increase with about 1Container transport increased by 10,2% to 115,7 million full EUend to end moves, of which 36,4 million in the mainEast/Westocean trades, about 20 million TEU in the North/South tradesand regional trades counted some 45 million TEU out of which anestimated massive 33-35 million in intra-Asia trades. Globport handling in 2005, including empties and transhipmencame to some 399 million TEU, of which 76 million in WestEurope. Rates in the dry and liquid bulk sectors were volatbut remained healthy on average. Container trades and charters came under rate pressure by end of the year and early 200

under threat of imminent large new capacity, but demannotably in the FarEast has at least for the time being easilyabsorbed the new capacity.

EUROPEAN SHIPPINGIN A GLOBAL MARKET

Y EAR EEA WORLD EEA AS % OF WORLD TONNAGE

N° MN. TONNES N° MN. TONNES1990 7,659 72,326 GRT 38,221 383,96 GRT 182000 6,783 84,351 GT 45,023 518,22 GT 16,2004 9,291 152,709 GT 46,551 584,3 GT 26,2005 9,047 154,332 GT 46,801 618,11 GT 25,

2006 9,037 156,907 GT 48,096 660,75 GT 23,

WORLD SEABORNE TRADE

199017000

24000

31000

1998 2006

Year

T o n n e s -

M i l e s

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EEA shipowners continued their strong presence with a control of40,8% of the World fleet measured in gross tonnage. TheEEAregistered 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 half2007 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 forvarying reasons the oil prices remain very high. Growth in Worldtrade is estimated to reach a higher 7% and GDP to increase byabout 3,5%.Economic development and industrial output willnot be equally spread between regions and countries, resultingin a continuing shift in trade flows and in imbalances. In the

course of 2005 China introduced a controlled floating of itscurrency; China’s record trade surplus increase over first half2006 by 55% to US$ 61,5 billion compared to same period lastyear, adds to further pressure for revaluation of the Yuan.

The underlying factors of economy and international tradewarrant a positive outlook for maritime transport and the ship-ping sector as a whole. The suspension of the WTO negotiationsis most regrettable but should on the short term not have anegative impact on global trade. However, there are as alwaysthreats and uncertainties to reckon with. High oil prices, but

also restrictive regulations on air emissions may have theireconomic impact on deep sea and intraEuropean short seashipping. Imbalances are costly, while too limited capacities ofports 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.

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RE VISED WHIT E PAPER ON TRANSPORT POLICY

Realistic approach welcomed

On 22 June 2006, the Commission approved a Communication onthe mid-term review of the 2001 White paper onEuropeanTransport Policy.

In the renewed agenda the overall objectives of transport policyare confirmed notably a competitive, secure, safe and environ-mentally friendly mobility, fully in line with the revised LisbonPolicy agenda for jobs and growth. The previous policy of uncou-pling growth in trade and growth in transport is abandoned. Growthof efficient and sustainable transport is considered essential. Themodal shift should develop on the basis of optimising the perform-ance of the relevant transport modes. This new policy is in line withthe suggestions made by the maritime industries through the MIF.

As far as maritime transport is concerned particular attention isdrawn to known areas such as the growth of short sea shipping, thenecessity of investments in ports and hinterland connections, thepossible creation of a commonEuropean maritime area, the appli-cation of the ILO Convention, strengthening the functions ofEMSA,and the development of a strategy for freight transport logistics.

The revised White Paper on Transport Policy was followed by thepublication of a Commission Communication on Freight Logisticson 28 June 2006. The Communication will be the basis for anAction Plan for Freight Transport Logistics, which is expected tobe issued in 2007.

The Communication proposes, amongst others, to set up a group

National Focal Points to identify and solve bottlenecks hamperdevelopment of freight transport logistics. It is also proposed improve tracking and tracing, to build logistics terminals and establish a dedicated rail freight network. Furthermore, it is envaged to harmonise transport documents and liability regimes the transport modes.

Freight logistics will be a priority item of the Finnish Presidency htaken over from Austria in 1 July 2006. The statements made byFinnish Transport Minister Ms Huovinen on July 12 in theEuropeanParliament Transport Committee that intermodality should not seen as an objective in itself but as a tool that could be used tachieve better logistics, are in line with the views expressed by theGroup Transport coordinated byECSA in its statement of March 2006.

ECSA welcomes the new approach and looks forward to an ongconstructive exchange of views with theEU Institutions and stake-holders.

A FUTURE MARITIME POLICY FOR THE UNION

E uropean shipping a corner stone of E uropean and global trade

ECSA appreciates the initiative of the Commission to launchbroad exchange of views leading to overallEuropean maritimepolicy starting with the issuing of the Green Paper on a FutMaritime Policy for the Union on 7 June 2006.

EUROPEANTRANSPORT POLICY

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ECSA is encouraged that the Green Paper recognises the impor-tance of and the economic potential of the maritime dimensionof Europe. The Paper stresses the essential role that shippingservices have for theEuropean economy and for the daily life andthe wealth ofEU citizens. As mentioned in the Green paper this isoften ignored byEU citizens.

Indeed, 90 % ofEuropean external trade and over 40 % of itsinternal trade are transported by sea. TheEuropean maritimeclusters are the biggest in the world. Maritime transport is thecatalyst for the maritime clusters.

Maritime transport and ports are recognised as key elements inthe logistic chains which link the single market to the world econ-omy. Their efficiency is crucial for the competitiveness of theEUin a globalising world. It is therefore no surprise that shippingservices and ports are identified as growing sectors and as keyelements of the Lisbon Policy makingEurope the most competi-tive trading entity in the world.

ECSA strongly feels that these basic facts cannot be ignored in afuture maritime policy forEurope and in particular in looking forthe right balance between the economic, social and environmen-tal dimensions of sustainable development.

Shipping and ports should be encouraged to expand to serve theneeds ofEuropean and global trade. Congestion in ports and otherbottlenecks that hinder efficient services should be taken care of.Investments in ports and in hinterland connections should bemade givingEurope efficient and seamless logistic chains. The

growth of short sea shipping during the last decennium should befurther enhanced in an integratedEuropean 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 natureof shipping services has to be taken into account on all fronts. TheGreen Paper recognises sustainable development necessitatesdeveloping universally applicable rules.

The competitive framework ofEuropean shipping should con-stantly take into account the global competitive environmentthat shipping is operating in. This is also key as far as employmentis concerned. Whilst efforts are taken to maintain maritime know-how inEurope, labour flexibility in the global labour market thatshipping is operating in is essential. Restrictive and/or labourprotectionist measures would have counterproductive resultstowards employment and maintaining maritime know-how. Itshould also not be overlooked that the main employment in themaritime industries is ashore and not at sea.

In line with the policy promoted by Vice President Verheugen theGreen Paper stresses that action atEU level should be undertakenonly when it contributes value-added. In this context additional

bureaucratic layers should be avoided. This should be taken intoaccount when considering questions such as on an optionalEuropean register and aEuropean coast guard.

An efficient and effectiveEU maritime external relations policyshould safeguard a good working international framework for

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shipping services. The Maritime bilateral agreement with Chinahas established a good working framework for constructivemaritime 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 energyefficient and environment friendly mode of transport inEurope.Nevertheless, as mentioned in the chapter on safety and environ-ment of this Annual Report the shipping industry is working onfurther improving its performance on emissions.

ECSA welcomes the recognition in the paper that shipping isinternational requiring global rules, and shares the view thatMember States should ratify internationally agreed Conventionsand ensure that they are properly enforced. A strong andefficient International Maritime Organisation (IMO) is essentialfor shipping as a global business. ThereforeEU policy should aimat reinforcing the role of IMO and its efficiency.

The Green Paper will now go through a consultation period of oneyear.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 maintransport policy proposals of the Commission.

Recommendations were made on the mid term review of the Wpaper on Transport Policy and on Logistics for promoting Fre

Intermodality. It is encouraging to note that the Commission htaken the recommendations into account particularly in recognising that growth in economy cannot be uncoupled from groin transport and in accepting a commercial approach in promoing intermodal transport. On the latter point the MIF alsstressed the importance of sufficient and efficient infrastructure, the need for one stop administrative shopping and singwindow, the need for a realistic approach on the 45 ft containeand the necessity of an international approach through UNCITon multimodal liability.

The MIF will meet in Plenary on 5/6 October in Oslo with as

theme an exchange of views on the Green Paper on a Futmaritime Policy. Vice President Günter Verheugen and Commi Joe Borg will attend the plenary meeting.

SHORT SEA SHIPPING

Marco Polo Programme

In May 2006, an agreement was reached on the Commissproposal for a Second Marco Polo programme.

The Marco Polo II programme pursues the same objectives asFirst Marco Polo programme, i.e. granting Community finanassistance for start-up, catalyst or common learning actions witan aim at reducing road congestion, improving the environmenperformance of the freight transport system and enhancinintermodal transport. However, the second programme includtwo new types of action (i.e. Motorways of the Sea and TraAvoidance actions) and it has a larger scope of applicationcovering alsoEFTA countries, Russia, Belarus, the Ukraine, thBalkans and the Mediterranean Region.

The programme will run from 1 January 2007 to 31 Decemberwith an overall budgetary envelope of€ 400 million instead of aninitially proposed envelope of€ 740 million. This reduction is aresult of the reduced overallEU Budget for the period 2007 – 2013.

Trans-European Transport Networks (T EN-T)

In July 2005, the Commission adopted a series of measuresspeed up the completion of the trans-European TransportNetwork. The measures included, amongst others, the nominatof sixEuropean coordinators to facilitate the implementation ofthe key priority TEN-T projects.

The Commission also proposed to set up a Trans-EuropeanTransport NetworkExecutive Agency with an aim to providing theCommission with technical expertise, to take care of the techniand financial management of TEN-T projects and to manage thefunds available under the TEN-T budget.

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In December 2005, the High Level Transport Group on theExtensionof Major trans-European Transport Axes to the NeighbouringCountries submitted a report in which priority transport axes andmeasures to connect theEU with its neighbouring countries wereidentified. The aim is to remove physical and administrativebottlenecks along main transport axes, to facilitate cooperationand communication between national authorities in the differentcountries, to harmonise documents and procedures, etc.

As regards maritime transport, the High Level Group recommend-ed harmonizing the Paris, Mediterranean and Black Sea

Memorandums of Understanding, ratifying and implementinginternational standards and conventions fully and timely,improving the quality of port infrastructure and services andimplementing regular frequency of shipping services (at leastonce 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 2006and 2020, primarily financed by the countries concerned and byinternational financing institutions, complemented with supportfrom theEU.

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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 thePromotion of Short Sea Shipping

Promotion and growth to continue

In July 2006, the Commission adopted a Mid-Term Review of the2003 Programme for the Promotion of Short Sea Shipping. Thereview evaluated the results of the 14 actions that were intro-duced in the 2003 Commission Communication for the Promotionof Short Sea Shipping. The 14 actions are aimed at enhancing theefficiency of Short Sea Shipping inEurope. They included uniformreporting formalities for ships to enter or depart fromEU ports,guidance for successful Short Sea Promotion Centres which offeradvice on the use of Short Sea Shipping and the elimination ofobstacles that hinder the development of Short Sea Shipping.

The Mid-term review concluded that the 14 actions have been quitesuccessful but advocates Member States, the industry and theEuropean Short Sea Network to continue to work on remainingobstacles. 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 inEurope by 2010, to examinethe possibility of extending the scope of short-sea promotiontowards the promotion of multimodal solutions in inland transportas part of the overall logistics chain and to improve the integrationof the mode in the multimodal logistics supply chain to coincide withthe modern image that Short Sea Shipping has already acquired.

Having been at the origin of the promotion of short sea shippingand being actively involved in its further expansion,ECSA willfurther contribute to the ongoing work of the action programme.European shipowners have invested heavily in the development ofshort sea services resulting in a wide network of motorways of thesea. It is evident that the competitive position of this networkshould not be endangered by artificially created services.

The Mid-term review also stresses the need for standardised,more efficient and stackable equipment that facilitates thetransfer of freight from one transport mode to another in the

context of the proposed Directive on intermodal loading uni

Such standardization should lead to more efficient and productive logistics chains inEurope.

The Mid-term review notes that Short Sea Shipping plays a role in ensuring sustainable mobility and contributes, amongothers, to alleviating congestion and environmental pressurcaused by freight transport. Short Sea Shipping is an integral pof the logistics chain inEurope’s transport system.

Between 1995 and 2004, the ton-kilometre performance of ShSea Shipping in theEU-25 grew by 32 %, while road performancgrew by 35 %. Short Sea Shipping performs 39 % of all kilometres in theEU-25 while the share of road is 44 %. Thefastest growing segment of Short Sea Shipping is containeriscargo with average yearly growth rates of 8,8% since 2000.

EUROPEAN PORTS POLICY

Ports key in the supply chain

The saga relating to aEuropean Ports Policy took yet another turnin 2005/2006. Starting in 1997 with the Green Paper on a ppolicy, it led to a proposed Directive I on market access to pservices that was rejected by theEuropean Parliament inNovember 2003. Also a proposed Directive II that was brouforward by the Commission in October 2004 was rejected byEuropean Parliament in January 2006.Eventually the Commissionwithdrew Directive II in March 2006, launching at the same an general debate on an overallEuropean Port Policy.

It is appreciated that the launched debate is based on a broadeapproach looking at three key points:

Free market access and modernisation/liberalisation of porservices;Port capacity and hinterland connections.Funding, transparency and state aid guidelines.

For the shipping industry there are two items which need toaddressed with priority.

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Firstly the necessity of appropriate port capacity and adequatehinterland connections. This is recognised by all. A newEuropean

Port Policy should encourage investments in port capacity.Therefore, in further policy making, concession periods forinvestments in terminals should be sufficiently long to attractinvestments 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 inexpansion projects. In this context the fundamental role ofmaritime supply chain services forEuropean and global trade andindeed for daily lives is often overlooked.European wealth isdepending on maritime services. This is a clear common interestand should be dealt with as such. This environment friendly

transport mode very much depends on expansion of ports andefficient hinterland connections.

Secondly, liberalisation/modernisation of port services on whichthe views of the shipping industry are still the same. Action on thiskey issue is still necessary. This does not mean that allEuropeanports are inefficient today. However, there is definitively room forimprovement. 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 onissues that would have been covered by the Port Services Directive.

Often the discussion on whether ports and port services areefficient 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 anelement in an overall service package. In such a supply chainapproach each and every element or link in the chain plays a keyrole. The most efficient and cost effective transport mode will bechosen.Evidently handover points play a fundamental role in theend result.

Improving supply chains is one of the key elements of the LisbonPolicy to make theEuropean economy the best in the world. Itwould be difficult to explain and to understand why one specific

sector in a maritime supply chain should be an exception to thispolicy.

During the future discussions it should be made clear whether aspecific legal framework taking into account the specificities ofport services can be developed. However, what is often forgottenis that in absence of a specific framework the general legislation,notably the Treaty, and particularly the four freedoms and thecompetition rules apply. TheEuropean Commission is theguardian of the Treaty and should ensure that it is properlyapplied to the benefit of both shipping and trade.

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SUPPLY CHAIN SECURITY

The Commission adopted on 27 February 2006 the long awaitedCommission Communication on enhancing supply chain securityincluding a draft Regulation. The proposed measures will not dealwith Ships and Port security since these are already coveredthrough Regulation 725/2004 (ISPS) and Directive 65/2005 onport security.

The draft Regulation covers other elements of the supply chain in ageneral way. Main element is the granting of the status of “secureoperator” that will be awarded with advantageous/favourabletreatment in controls to some extent comparable with the CTPATsystem 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 onthe added value of the proposal.

ADVANCE CARGO DECLARATION

Discussions on a Regulation for the implementation of securitymeasures contained in the Customs Code including key measures

such as advance cargo declaration and the AEO status havetaken place in 2005/2006 in the Committee procedure.

The industry, includingECSA, has been involved in a number ofconsultation meetings and industry comments on advance cargdeclaration concentrated in particular on:

The fact that electronic data exchange is essential for advanccargo declaration. Therefore the implementation date shoulbe postponed until this is possible or only done through enpoints where this is possible.The specific position of short sea shipping/ferries and bushipping.Clarification on: who should file, data to be submitted, whe

and when to file, procedures on “do not load”, freight remaiing on board and the status of the AuthorisedEconomicOperator (AEO).NVOCCs/forwarders doing their own notifications.

Joint industry submissions have been made to the Commissand Member States on the initiative of the World Shipping Coand ECSA. The contributions of industry aimed at having efficient security checking system avoiding thereby unnecessbureaucracy.

SECURITY

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THIRD MARITIME SAFE TY PACKAGE

In November 2005 the Commission published its Third MaritimeSafety Package following consultation meetings with industryduring the previous year or so. While the strictly legal elements ofthe package are addressed in the chapter on Legal Issues of thisAnnual Report the five proposed Directives relating to safetycomprise the following:

Amendments to the Port State Control Directive 95/21, theobjective of which is to recast the instrument in order toimprove clarity following many changes introduced over thelast decade and to reinforce and improve the effectiveness ofPSC; a particularly notable element in the latter regard, andwelcomed by industry, is the replacement of the currentrequirement to inspect 25% of all visiting ships by a systemwhereby high risk ships are more frequently inspected andquality ships less so.Amendments to Directive 2002/59 concerning Vessel TrafficMonitoring and Information System. The key aims are torequire the use of the electronic exchange network‘SafeSeaNet’, to reinforce existing provisions relating toaccommodation of ships in places of refuge and to require AISon fishing vessels.Compliance with Flag State Requirements, the broad goal beingto ensure thatEU Member State effectively and consistently

discharge their obligations as flag States in accordance witIMO Conventions. More specifically, steps must be takenmake the provisions of the IMO Code compulsory in respethe implementation of the mandatory IMO instruments relatito the flag States and also to introduce a flag State AuditScheme.Establishing Fundamental Principles Governing InvestigationAccidents; the objective is to form a Community frameworkconducting investigations on marine casualties and to improvthe exchange of information among Member States. It is alproposed that Member States establish independent investigative bodies for conducting the investigations in an impartimanner and with the required resources.Classification Societies. The proposal is intended to underpthe Classification Societies by setting up a joint and indepenent body to assess the quality systems of theEU recognisedorganisations; the instrument also introduces a system of gradual financial penalties for low performance and changes to threcognition criteria aimed at clarification and simplification.

Overall,ECSA has reacted positively to the initiatives particularly on the proposals regarding port state control and the vesstraffic monitoring and information system, while recognisithat the flag state compliance proposal will no doubt raisconcerns in some Member States about the implications fcompetence of national maritime administrations at IMO

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certainly the industry would not wish to see any reduction in thequality of the decision making in IMO.

ECSA’s detailed positions on the proposals, developed jointly withICS, (available on website www.ecsa.be) have been sent to nationalAdministrations and to the responsibleEuropean ParliamentRapporteurs for consideration. In the Council, progress towardsagreement has being made with the Port State Control and VesselTraffic Monitoring proposals, with only the classification societies’initiative possibly being considered in 2006 and the remaining two in2007. The Parliament has just started its internal examination of thepackage as a whole, with completion of the First Reading stage notexpected 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

AirEmissions

As acknowledged in the recent Green Paper, shipping is the mostenergy efficient and environment friendly mode of transport inEurope (see table 20). However, the industry itself recognises thenegative impact of maritime air pollution and the wish both inthe EU and internationally for lower limits than those recentlymade mandatory by MARPOL Annex VI.

It is against this background that the shipping industry iscommitted to further improving its environmental performance

where there is a quantifiable benefit backed up by thoroughimpact assessments.

As all parties are aware, air pollution in general is a complexissue and reducing one pollutant may have a negative effect onother pollutants such as Green House Gases (GHGs). The industrytherefore believes that a holistic international approach to findan overall environmental benefit for the long term is the onlyeffective solution. In this context, there is scope for regionalaction on the international front via the possible creation ofSECAs after thorough assessment of environmental vulnerability.

It should, however, not be overlooked that it is unsustainable forEU ships to be subject to differing levels of emission control indifferent ports around the world.

As stated above, credible long term action must be based on soundenvironmental, technical as well as socio-economic assessment;in this regard, all measures to reduce maritime emissions must beas practical and cost-effective as possible; fuel quality and avail-ability are important elements in this regard, as is the need toensure that measures do not result in a modal shift to less envi-ronmentally credible mode of transport than shipping.

Reflecting these factors and principlesECSA, in close liaison withICS, has undertaken a detailed assessment of the technical andpolicy options available to reduce air emissions; notably SOx,NOx, Volatile Organic Compounds and Particulate Matter.ECSAwould draw attention to the following broad conclusions fromthis initiative;

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There are promising developments taking place with regard to

technologies to reduce SO2, NOx, PM and VOC emissions, andsuch developments should be promoted and fully exploited.There are also promising developments taking place inEU andIMO concerning new and cost-effective economic incentives.Such possibilities should be considered as alternatives to newregulations, especially regional regulations, as long as thesame or better environmental results can be achieved.There is no single option available to the industry that will besuitable for all types of ship and the variety of trades theyoperate, and it is important for the international andEUframework to allow flexibility for the industry to find the mostcost effective solutions.

It is hoped that the work undertaken by industry will positivelycontribute to the ongoing work in both the IMO andEU.

EU Thematic Strategy for the Protectionof the MarineEnvironment

ECSA shares the overall objective of the Thematic Strategy on theProtection and Conservation of the MarineEnvironment publishedin October 2005, namely to ensure thatEU marine waters arehealthy by 2021 – thereby protecting the resource base uponwhich marine related economic and social activities depend; it iscurrently the subject of debate within theEU institutions. As

recognised by the Lisbon strategy, sustainable development mustbe accompanied by the goals of promoting competitiveness andeconomic growth and development acrossEurope. In the latterregard, the principle of freedom of navigation is a fundamentalrequirement for free trade and competition together withunrestricted port access.

ECSA further acknowledges that from an environmental poin

view, it may well be appropriate to subdivide the overall mararea of theEU into regions in order to establish what is required feach region (the so called marine spatial planning); what is necesary or best in one region may not be necessary in another regio

However, from the perspective of international shipping, havships operating in all three regions, it is important to ensure ththis approach does not result in a myriad of varying rules for shping within theEU. Such a situation would not be operationallyfeasible for the shipping industry. Specific local requiremenshould be solved through international instruments e.g. SECAs.

Ship Recycling

The shipping industry fully recognises the need to improve health and safety standards in ship recycling yards around thworld and acknowledges the role played by the NGOs and regbodies such as theEuropean Parliament in drawing attention tothis serious issue. In accepting its responsibilities, the shippinindustry has been instrumental through both industry initiativand via IMO in the significant progress made in recent years.

In particular, the IMO is currently formulating an internationabinding Convention on ship recycling to be adopted in 2009; initiative, fully supported by the shipping industry, is closebased on the IMO Guidelines published in 2003 which in reflected the 2001 Industry Code of Practice on Ship Recyclthis introduced a number of recommendatory provisions suchgas freeing-for hot work on delivery, a list of potentiallhazardous materials, and minimisation of potentially hazardoumaterials at the construction phase.

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At aEuropean Parliament Hearing jointly organised by NGOs andindustry on 25th AprilEnvironment Commissioner Stavros Dimasand MEPs stressed that the most effective means to address theproblems in the ship recycling industry is via internationalmeasures. TheEU, through its 25 Member States, has significant-ly contributed to progress on the issue in IMO to-date andcontinues to exert considerable influence in achieving concreteand effective results, and this remains the most positive utilisa-tion of the Community’s influence in progressing the issue. TheEuropean Parliament also has an important role in promotingtimely and effective international action.

In addition, theEU itself can actively promote the IMO work andensure the success of the Convention by usingEU DevelopmentAid, cooperation agreements and other influential links withrecycling States to provide equipment, expertise and training toraise safety and environmental standards to an acceptable level.

The Commission has also indicated its wish to develop an interimEU Strategy, with a particular emphasis on state owned shipsfollowing the controversy surrounding the recycling the warship‘Clemenceau’. In this regard a wide ranging study for theCommission on all aspects of ship recycling in theEU context iscurrently underway, andECSA and the Industry Working Group onShip Recycling will constructively contribute to that initiative.

ECSA has welcomed the inauguration of theEMSA headquarters in

Lisbon in September 2006. Their technical expertise in the areasof maritime safety and environment in particular ensures thatthey will make a major contribution in the coming years, andECSAlooks forward to a continuing constructive working relationshipin that context.

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MARITIME LABOUR CONVENTION

A global solution for a global industry

There was in effect unanimous adoption of the Maritime LabourStandards Convention in Geneva in February. The Conventionbrings together and updates more than 60 international labourstandards adopted in ILO since 1920 and covers such areas asconditions of employment and working conditions, includinghealth, safety, minimum age, recruitment, working hours andaccommodation on ships. It is regarded as the ‘fourth pillar’ ofthe international regulatory system for global shipping followingSOLAS, 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 andhas signalled their wish that the Convention should be incorpo-rated intoEU law. In this context, and recognising the complexi-ties of the issues,ECSA andETF have established a Working Groupof the Social Dialogue Committee to examine over the comingmonths, with the close involvement of the Commission, allaspects of the way ahead.

ECSA has urgedEU Member States to ratify the Convention assoon as possible and has issued a joint statement withETF toEU Ministers with this message; in this regard, it is hoped thata Council Decision with a similar goal, as proposed by theCommission in June, will be adopted in the coming months.

MARITIME EMPLOYMENT

An outward looking approach required

The increasing reality of globalisation presents particularchallenges in the area of maritime employment in a generallyhigh labour costEurope.Ensuring thatEuropean shipping cancontinue to effectively and fairly compete in this global mar-ket must always be the cornerstone of theEU policy in thisarea. This is fully consistent with theEU Lisbon Agenda aimedat making theEU the most competitive economy in the world;a key element is a recognition that increased labour flexibili-ty is in the interests ofEurope’s longer term sustainablegrowth.

The alternative approach which is to promote restrictive and/orlabour protectionist measures would have the opposite effectto those intended, leading to lack of competitiveness, loss ofmarkets, reductions in the size ofEU fleets and, inevitably, toloss ofEuropean jobs. Such an approach, inconsistent withbasicEU Treaty principles, has regrettably been evident in anumber of instances withinEurope over the last year or so, theEuropean Court of Justice being called to make a ruling in thiscontext.

As a consequence,ECSA has encouraged the Commission topursue a policy which reflects the industry view as explained

below and, within its area of responsibility, to take a pro-activestance towards any action taken which undermines thisapproach.

MAINTAININGEU MARITIME KNOW-HOWESSENTIALFOREUROPE

In the context of the global reality referred to,ECSA fully recog-nises the importance of maintainingEuropean maritime knowhow; 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 onEEA registered vessels, with a broadly equal split betweenEEA andnon-EEA nationals, it should be noted that the main employmentin the maritime industries is ashore rather than at sea.

Against this background, there are a number of actions beingpursued at national, Community and international level whichcan usefully be built upon and there is an important role for thesocial partners in this regard. Together, they will make a signifi-cant contribution to enhancingEuropean maritime know how and

the employment opportunities ofEU seafarers. The following,consistent with Council Conclusions on MaritimeEmploymentadopted under the UK Presidency in December 2005, and wel-comed byECSA, can be cited:

Supply and Demand of Seafarers.Past studies conclude that inmany Member States there is a current or forecast shortage ofEU junior officers; quite what the situation is today in eachEUMember State could perhaps benefit from further examination.Considerable analysis needs to be undertaken nationallybefore increasing the supply as it is clearly economically andsocially 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-sideemployment for former seafarers can be an important factor inattracting persons into a seafaring career. In this context, theECSA/ETF Career Mapping project, concluded in Autumn 2005,should be helpful in demonstrating the possible careerplanning opportunities forEuropean seafarers in order to makeshipping an attractive career option. The concept should bepromoted and used nationally. However, ship operators shouldnot be expected to bear the full burden of training, and theemphasis on shore based opportunities provides a strongargument for 100% public funding of maritime training.

A stable and competitive environment forEU Shipping.AnappropriateEU framework providing stimulating elements forthe maintenance of competitiveness of Member States’ fleets

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and the promotion ofEuropean shipping know-how andmaritime training, as well as the employment ofEuropeanseafarers, is essential for shipping and has positive effectsfor the whole maritime cluster. The framework (the State AidGuidelines) has to be stable and has to be applied in aflexible manner taking into account the specific nationalcircumstances involved. A key element is that the structuraloperational environment should be able to meet globalcompetition.

Maritime Labour Standards.As mentioned above, the recentILO Maritime Labour Standards Convention will provide a solid,

comprehensive and global basis for world wide employmstandards.ECSA urges ratification byEU Member States and itsstrict enforcement within theEU.

National Action andE xchange of Best Practice.While there isconsiderable scope forEU action as described above, MemberStates are of course best placed to identify the particularproblems in relation to maritime employment being facenationally and how those issues can be most suitablyaddressed in the local circumstances.Examples include thenational supply and demand situation, and particularly to thaction necessary to train the required number of seafarers fo

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their national needs; improving the image of shipping byappropriate campaigns tailored to meet the national circum-

stances are an integral part of this process. As set out in a UKPresidency paper of December 2005, there are many innova-tive and comprehensive initiatives being taken throughoutthe EU, and a greater emphasis on the exchange of bestpractice would be well worthwhile.ECSA will play its full partin this context.

These issues have been, and no doubt will be, the subject offurther discussions with the Commission andETF in the context ofthe Maritime Social Dialogue Committee.

PIRACY AND ARMED ROBB

ERY

The continuing serious problem of piracy and armed robberyagainst ships in certain parts of the world was discussed again inthe ECSA/ETF Social Dialogue Committee, and a joint approachwas made to theEU Transport, Trade and DevelopmentCommissioners. In doing so they provided detailed informationon the scale and location of the global attacks and urged theCommissioners to take up the issue when having discussions andnegotiations with those countries and regions where such attackstake place.

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Maritime transport serves and thrives on continuing increases in

international trade and forE

CSA members as a whole the tradebetween third countries and regions are at least as importantas the intra and externalEuropean trades. Stimulating tradeconditions with liberal, transparent and consistent nationaland international rules and procedures are therefore of greatimportance.

WTO-DDA NEGOTIATIONS SUSPENDED

High expectations were given to a successful conclusion of thecomprehensive WTO round, under the Doha Development

Agenda, launched in November 2001 towards agreements onstrong reductions in subsidies and import tariffs of agriculturalproducts, import tariffs for goods, on access to markets forservices, global trade rules and special considerations for theleast developed nations. The concept of solid agreements forinternational trade is generally recognised, as may be proved bythe 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 verydifficult undertaking. Appropriate balances must be foundbetween the interests and priorities of the members. TheMinisterial Conference in Hong Kong in December 2005 did notbring the desired breakthrough, but did confirm the commit-ment to continue and set deadlines, which in turn were oftennot 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 setdeadline of end 2006 could not be met and that the Round hadto be suspended.

One notable positive development in the negotiations was thewide support for the good work done towards an agreement onTrade Facilitation – setting rules and objectives for the basicprocesses of cross-border trade. Hopefully these can somehowbe made effective by means of other instruments and/or bodies

like the WCO.Although stimulation of global trade through an agreementwould have been welcome also for shipping as the majortransport mode, the point for the shipping sector itself is not somuch that there are major practical hindrances for efficientlyserving the external trade of member countries, which could havebeen resolved. However, obtaining the certainty that the de factofreedoms will last and thus allow long term planning andinvestments remains important. In the meantime the maritimestandstill agreement, preventing new protectionist measures byWTO member states, should remain in force.

EU BILAT ERAL TRADE RELATIONS

The failure of the WTO-DDA round to conclude by end 200no doubt further intensify the interest in coming to bilateraand multilateral regional trade agreements. Increasing thealready over 200 of such agreements in place risk confusionoverlaps and/or discrimination for trade. Reportedly the WThas meanwhile come to an outline for preventing such adverimpacts. TheEU has been less active in this field than e.g. theUS and Japan, although Free Trade Agreements exist with Mexico and is for several years less successfully under negotion with MERCOSUR – as recently expanded with VenezuelanewEU focus on agreements with Asian partners has alreadbeen announced, in whichECSA will endeavour to secure a right-ful place for maritime transport.

BILAT ERAL MARITIME RELATIONS

The bilateralEU-China maritime agreement of end 2002 hasproven its continued success to the benefit of trade and thmaritime carriers, as was confirmed during the third implemetation meeting in Shanghai in May 2006. SomeEuropean wishes,including the right of relaying international cargoes betweeChinese ports by use of own vessels – avoiding transhipmeoutside China – remain under study.

ECSA welcomed the first round of negotiations on aEU-Indiamaritime agreement in July 2006, at which the respectivpositions were extensively discussed and laid down in a papfor further negotiation. Although the common interests iefficient maritime transport and under the wider ‘strategiPartnership’ are recognised, the expressed maritime relatepriorities on the Indian side are differing from those of theEUnegotiators and industry. Time has now come for real progreto be made and two next rounds of negotiations, agreed for en2006 and first half 2007, are looked forward to with anticiption.

On the many maritime issues and developments at play arouthe world, ranging from legislative to purely practical anoperational constraints,ECSA and company members closelyconsult internally, with the Commission services and wiMember States on the appropriate approaches to be taken.

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LINER SHIPPING

The review ofEU Competition Rules on maritime services thatstarted in 2003 is in full process. In December 2005, theCommission adopted a proposal to repeal Regulation 4056/86

giving a GroupExemption to Liner Conferences. The Commissionagreed to a postponement of the effective date with two yearsallowing a denouncing of the UNCTAD Code. Guidelines will beissued indicating what lines are allowed to do following therepeal of theExemption. In the interim period an Issues Paperwill be issued in 2006 containing the background for theGuidelines. The Liner Industry is in discussion with theCommission services on the Issues Paper and the Guidelines.

In this context theEuropean Liner Affairs Association (ELAA)presented on 22 June a revised alternative regime for linershipping in a post-liner conference era inEurope. A first alter-

native was presented in 2004 and was revised following multiplediscussions between theELAA and DG Competition.

In their revised alternative, which is supported byECSA, theELAA proposes to establish a port-to-port aggregated volumedatabase, based on figures supplied by the carriers to anindependent data service, to provide for an industry supply anddemand forecast produced with the help of an independentexpert and to establish a Liner Shipping Association enablingcarrier discussions and consultations with other industrystakeholders. In addition, it is proposed to establish a simpleaggregated price index by trade direction and to publishinformation from the public domain to increase transparency ofcosts such as bunkering, canal dues, port charges and currencyexchange rate exposure. Finally, it is proposed to make all theinformation generated available to the general public and thebenefit of all industry stakeholders and governments.

TRAMP SHIPPING

In the December 2005 Decision, the Commission also confirits intention to lift the exclusion of tramp shipping and cabotage from the Implementing Rules (Regulation 1/2003). Th

have been no complaints and consequently there is no case laon the application of Competition Rules for tramp shippinMoreover the sector is terra incognita for many. Therefore tshipping industry is throughECSA involved in a constructiveinformation and discussion process with the Commissioservices with the aim to have legal certainty by the time ththe basic competence of implementing the Competition Ru(enforcement) is shifted from being solely with Member Statto be also with the Commission.

During this exchange of views it was confirmed that tCommission services would give guidance to the industrygrey areas that may exist. This guidance should be given priolifting the exclusion from the Implementing Rules.

In the context of this exercise the Commission issued o21 February 2006 a tender for a study regarding the legal aeconomic analysis of tramp maritime services. The contract the study was awarded end July and the consultants areexpected to deliver the study within 4 months.

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RULES ON MARITIMESERVICES

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with gross negligence as conduct barring limitation, applicableto ships flying the flag of a State that is not a contracting partyto the 1996 LLMC.

Furthermore, it is proposed to oblige shipowners to have afinancial guarantee for civil liability, including for covering thecosts linked to the repatriation of seafarers in case of abandon-ment. The financial guarantee must be a sum not less thandouble of the ceilings laid down in the 1996 LLMC, evidenced bya certificate which issued by a Member State. The certificatemust be carried onboard the ship and notified to the MemberState when the ship enters into an area falling under jurisdiction

of that Member State. Member States are obliged to mutuallyrecognize their financial guarantee certificates.

Requests for compensation of damage caused by the ship may beaddressed directly to the provider of the financial guarantee.

ECSA supports the basic objectives of the Directive, i.e. a promptratification 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 Statesto issue a financial guarantee certificate for civil liability, andstrongly criticised the suggestion of introducing gross negligence

as conduct barring limitation and of obliging ships to have afinancial guarantee for civil liability for double the ceilings of the1996 LLMC.

ECSA has made some alternative proposals with direct added

value and looks forward to a constructive dialogue with therelevantEU Institutions.

PROPOSAL FOR A REGULATION ON THE LIABILITY OF CARRIERS OF PASSENGERS BY SEA AND INLANDWAT ERWAYS IN THE E VENT OF ACCIDENTS

The second legal proposal of the Maritime Safety package IIIaims at incorporating the provisions of the 2002 Protocol to theAthens Convention relating to the carriage of passengers andtheir luggage by sea (Athens Protocol) intoEC law. It is alsoproposed 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 theirmobility or medical equipment. They will also have to pay inadvance in case of death of a passenger or personal injury to apassenger. Passengers will have to be informed on their rightsunder the Regulation prior to departure of the ship.

ECSA supports a prompt ratification of the Athens Protocol oncethe outstanding issues as discussed in IMO have been settled. Asfar as the transposition intoEU law is concerned it is recom-

mended to assess the impact of its extension to domestictraffic. There are concerns that domestic carriers will havedifficulties in meeting the financial obligations resulting fromthe Athens Protocol, which was initially drafted for passengerships operating international voyages only.

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PASSENGER RIGHTS

While the Commission’s 2005 Communication on PassengerRights concentrated on air transport, it announced that theCommission would be turning its attention to the maritimesector; areas to be addressed include delays, cancellations,passenger complaints, denial of access and rights of personswith reduced mobility.

In this context, the cruise and ferry sectors have provided boththe Commission and their consultants with comprehensivewritten information on the existing practice in these areas, andarranged meetings and visits to vessels to explain the arrange-

ments at first hand. The Commission is currently reviewing theinput from the various stakeholders, with any possibleEUinitiative likely to be taken in 2007.

TAXATION –PROPOSED SUPPLY OF SERVICES DIRECTIVE

While the possibility of VAT on passenger fares has beendropped following industry input to the consultation process,

the Commission have addressed the issue of VAT on on-bo

restaurant transactions. Specifically, they are proposing thatsuch on-board restaurant and catering services should betaxable at the place of departure of the transport service.Member States are discussing the proposal, it being understothat it will not affect the ability of individual Member Statesdecide whether or not to charge VAT on such transactions. Itanticipated that there will be a Council Statement to this effecwhich is crucial in order to safeguard the existing level of feservices.

The issue of taxes on other services, such as on entertainmenis also under consideration, with the industry closely follow

the situation.

TRAVELLERS ALLOWANCES

ECSA has welcomed the proposed Directive to raise travellallowances and in submissions to Member States and Parliamhas made the case for parity between sea and air travel. Thisevident since passenger lines are in direct competition wiairlines.

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ENLARGEMENT

It remains the objective of theE

U to welcome Bulgaria andRomania in January 2007 as full members provided that they areready for full membership. To that end, both countries werecalled 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 andimplement it fully and effectively and to make progress towardsthe complete fulfilment of the Copenhagen political criteria,including the commitment to good neighbourly relations. Turkeywas also invited to avoid any action which could negativelyaffect the process of peaceful settlement of disputes.

After the June 2006 SummitEnlargement Commissioner Olli Rehnstressed in addressing theEuropean Parliament that “Turkeyshould remove existing obstacles to the free movement of goodsincluding restrictions on means of transport which are in breach ofexisting obligations under the Association Agreement”. Thismeans that Turkey should open its ports to vessels under flag of allmember states, including the Republic of Cyprus.ECSA hasapproached the Commission repeatedly insisting that existingunacceptable boycott practices should be withdrawn immediate-ly. In October or November 2006 the Commission is due to publishits progress report on Turkey, with Cyprus as one major issue.

TheEU leaders also welcomed the start of substantive accessionnegotiations with Croatia and confirmed that the future of the

Western Balkans (Albania, Bosnia and Herzegovina, Serbia andMontenegro and Kosovo) lies in theEuropean Union. To that end,the EU will continue assisting the Western Balkan countriesthrough practical measures which will integrate their economiesand societies into theEuropean mainstream. The Former YugoslavRepublic of Macedonia has also applied for membership and isworking on the fulfilment of the Copenhagen political criteria.

EUROPEAN CONSTITUTION/CONVENTION

The so called reflection period on the future of theEUConstitution will be extended until end 2008.

The first year of the reflection period aimed on the one hand, to tryto keep the constitutional process alive and, on the other hand, tocreate a “Europe of results” that is more in touch with theexpectations and aspirations of the citizens. 15 Member Stateshave 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 downin June 2005, will not submit the same text to a new vote.

TheEuropean Council calls for the adoption on 25 March 2007 inBerlin of a political declaration byEU leaders, setting outEurope’s values and ambitions and confirming their shared

commitment to deliver them, commemorating 50 years of theTreaties of Rome.

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BOARD OF DIRECTORS

PRESIDENT Lennart Simonsson (Sweden)

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

DIRECTORS / ALT ERNAT ES

Members Alternates

AUSTRIA Hans Georg Wurmböck

BELGIUM/LUXEMBOURG Nicolas Saverys Marc NuytemansLeo Werkers

CYPRUS Andreas Droussiotis Thomas KazakosCharalambos Mylonas Andreas HatjiioannouMichalis 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 PerrinAnne Barthe

GERMANY Klaus Meves Hans-Heinrich Nöll

GREECE NicosEfthymiou 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 KutkaMALTA Nicolas A.Pappadakis Joseph Curmi

THE NE THERLANDS Marnix J. van Overklift Guido Hollaar

NORWAY Herbjørn Hansson Morten WerringLars Almklov

POLAND Pawel Szynkaruk Adolf Wysocki

PORTUGAL Joao Carvalho P. Magalhães

SLOVENIA Egon Bandelj

SPAIN Juan Riva Francos Manuel CarlierSWEDEN Lennart Simonsson Håkan Larsson

Håkan Friberg

UNIT ED KINGDOM Michael Parker Mark Brownrigg

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SHIPPING POLICY COMMITT EEChairman: M. CarlierVice-Chairman: N. Hassiotis

AUSTRIA H.G. WurmböckBELGIUM L. WerkersCYPRUS T. Kazakos, M. IoannidesDENMARK T. Petterson, J.F. Hansen, R. Piil Pedersen,

M. LundESTONIA R. MerisaluFINLAND M. NykänenFRANCE E. Berlet, A. Barthe,GERMANY J. Habicht, D. HosseusGREECE J.C. Lyras, A. Bredima-Savopoulou,

N. Hassiotis, K. PeppaIRELAND B. KerrITALY L. Paolizzi, S. Messina, L. MartinNETHERLANDS T.P. Blankestijn, T. P. TammesNORWAY L. AlmklovPOLAND A. WysockiPORTUGAL J. BebianoSPAIN M. Carlier,E. SecoSWEDEN H. Friberg, P. Sjöberger, C. FriskU.K. M. Brownrigg, G. Simmonds, D. AspreyICS S. Bennett

SOCIAL AFFAIRS COMMITT EE

Chairman: P. VossVice-Chairman: G. Sulpice

AUSTRIA H.G. WurmböckBELGIUM N. SimonsCYPRUS T. Kazakos, M. IoannidesDENMARK P. VossESTONIA I. KaunisFINLAND H. Loennqvist, K. KostiainenFRANCE G. SulpiceGERMANY D. LindemannGREECE G. Koltsidopoulos, K. PeppaIRELAND D. HopkinsITALY R. Aglieta, L. PaolizziLITHUANIA G. KutkaNETHERLANDS G. Hollaar, J. BaggermanNORWAY E. MidelfartPOLAND R. CzyzykSPAIN J. BarbadilloSWEDEN P. SprangersU.K. E. Brookes, T. SpringettISF N. Wiseman

SAFE TY ANDENVIRONMENT COMMITT EEChairman: T. GloersenVice-Chairman:E. Brookes

AUSTRIA H.G. WurmböckBELGIUM L. WerkersCYPRUS A. Josephides, M. FilippouDENMARK H.H. PetersenESTONIA H. Lepalaan, H. SuunFINLAND T. Jokilehto, B. BergmanFRANCE C. VéchotGERMANY W. Hintzsche, H. BraunGREECE J. Panopoulos, J. Andreopoulos, G. GabrielIRELAND B. KerrITALY G.Ercolessi, C. StagnaroNETHERLANDS E. Staal, D. AninkNORWAY T. GloersenPOLAND Z. NieweglowskiSPAIN A. BazurkoSWEDEN B. Arvidsson, P. MarzeliusU.K. E. BrookesICS P. Hinchliffe

BUDGE T COMMITT EE

BELGIUM M. NuytemansGREECE N. HassiotisNETHERLANDS G. HollaarNORWAY L. Almklov

STATISTICS WORKING GROUP*/FOCAL POINTSChairman: J. Dowden

BELGIUM M. NuytemansCYPRUS P. HannasDENMARK M. Lund*ESTONIA T. NinnasFINLAND T. JokilehtoFRANCE S. Barneoud-Rousset *GERMANY L. Gramsch, C. De BildeGREECE N. Hassiotis*IRELAND B. KerrITALY N. Mazza*LITHUANIA V. LygnugarisNETHERLANDS R. de Kort*NORWAY H. KristoffersenPOLAND A. WysockiPORTUGAL J. Coelho

ECSA STRUCTURE

ECSA SECRE TARIAT

SECRE TARY GENERALAlfons Guinier

DEPUTY SECRE TARIES GENERALTim Marking - Th. Herman de Meester

E XECUTIVE ADVISORSChristophe Tytgat - Sonia Karassavidou

EUROPEAN RO-RO CARRIERS ACTION GROUPE XECUTIVE DIRECTOR James Dempster

ECSA SECRE TARIAT Rue Ducale 67 b 2 - 1000 BrusselsTel : +32 2 511 39 40 - Fax : +32 2 511 80 92E-mail : [email protected] - Website : www.ecsa.be

DIRECT DIALINGAlfons Guinier +32 2 510 61 26 [email protected] Marking +32 2 510 61 27 [email protected] de Meester +32 2 510 61 28 [email protected] Tytgat +32 2 510 61 29 [email protected] Karassavidou +32 2 510 61 25 [email protected] James Dempster +32 2 510 61 23 [email protected]

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SPAIN A. De HitaSWEDEN C. Frisk*U.K. J. Dowden*

COMPE TITION WORKING GROUPChairman: L. Almklov

BELGIUM L. WerkersDENMARK T. Petterson, J.F. Hansen, J.K. Clasen, M. LundESTONIA M. Kullerkupp-JõekaarFRANCE T. ConteGERMANY J. Habicht, D. HosseusGREECE L. Demetriades-Eugenides, J. Tzavaras,

A. Bredima-Savopoulou, K. PeppaITALY L. MartinNETHERLANDS T.P. Blankestijn, M. SchaapNORWAY L. AlmklovSWEDEN P. SjöbergerU.K. D. ChardICS S. Bennett

TAXATION WORKING GROUPChairman: V. Moorcraft

DENMARK P. Saaek, J.K. ClasenFINLAND J. Hanses, T. NylundFRANCE J. Aubert, M. CharbeyGERMANY J-T Heitmann, H.H. NöllGREECE M. Foros, K. PeppaIRELAND N. MottramITALY A. QuadraniNETHERLANDS R. de KortNORWAY T. Sigerset, G. StenbergPOLAND R. CzyzykSPAIN M. CarlierSWEDEN R. Lindgren, P. SjöbergerU.K. V. Moorcraft, T. Reardon, M. Barlow,AIDA CRUISES P. SoulsbyCOSTA CROCIERE A. DietrichCARNIVAL CORP. J. BorderROYAL CARIBBEAN C. Gingrich

PORTS WORKING GROUPChairman: T. Conte

BELGIUM L. WerkersDENMARK J.F. Hansen, J. ClasenESTONIA Y. SaarinenFRANCE T. ConteGERMANY D. Meenke, G. KempfGREECE M. Sarlis, N. HassiotisITALY G. Lombardi, L. Martin, F. NappNETHERLANDS T.P. BlankestijnNORWAY L. Almklov, K. DjoenneSPAIN M. CarlierSWEDEN C. Frisk, P. SjöbergerU.K. D. Asprey, T. Reardon

WEST & CENTRAL AFRICA WORKING GROUPChairman: G. Cerruti

BE

LGIUM D. Geens, A. PeggDENMARK A.Egehus, R. Nielsen, M. LundFRANCE T. Conte,GERMANY H. Wenk,E. Donner, D. Griebel, D. HosseusGREECE K. PeppaITALY G. CerrutiNETHERLANDS H. Veldman

NORWAY B. MarkveienPOLAND J. WisniewskiU.K. G. SimmondsSWITZERLAND (MSC) C. Gargiulo

SHORT SEA TRADE WORKING GROUPChairman: G. Kempf

BELGIUM S. Jung, L. WerkersDENMARK M. W. Nielsen, M. LundFINLAND H. Ahlström,FRANCE B. HuchetGERMANY G. Kempf, H. Sommer, G. KrohnGREECE M. Sarlis, N. Hassiotis, K. PeppaIRELAND B. KerrITALY L. Paolizzi, L. Martin, L. BertaniNETHERLANDS R. de Kort, Y. BuitenwerfNORWAY L. Almklov, K. Djoenne, J. TollefsenPOLAND J. KoreckiSPAIN M. CarlierSWEDEN C. Frisk, P. SjöbergerU.K. D. Asprey

E XT ERNAL RELATIONS WORKING GROUPChairman: N. Hassiotis

BELGIUM L. WerkersDENMARK T. Petterson, R. Piil Pedersen, M. LundFRANCE A. BartheGERMANY D. HosseusGREECE N .Hassiotis, K. PeppaITALY L. MartinNETHERLANDS T. P. Tammes, T. P. BlankestijnNORWAY L. AlmklovSPAIN J. Barbadillo, M. CarlierSWEDEN C. Frisk, P. SjöbergerU.K. G. Simmonds

SECURITY WORKING GROUPChairman: T.P. Blankestijn

BELGIUM L. WerkersDENMARK R. Piil Pedersen, M. LundGERMANY D. Meenke, D. DabelsGREECE J. AndreopoulosITALY L. MartinNETHERLANDS E. StaalNORWAY T. GloersenU.K. T. Reardon, G. Simmonds

LEGAL WORKING GROUPChairman: B. Kröger

BELGIUM B. VanheuleDENMARK U. Rasmussen, M. LundFINLAND M.Etu-SeppäläFRANCE N/AGERMANY H.H. NöllGREECE G. Koltsidopoulos, K. PeppaNETHERLANDS T. P. TammesNORWAY K. Boehler

SPAIN J. BarbadilloSWEDEN C. FriskU.K. D. ChardICS L. HowlettBIMCO P. Holst

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AIREMISSIONS WORKING GROUPBELGIUM L. Cappoen, L. WerkersDENMARK M. Lund

FINLAND T. JokilehtoGERMANY H. BraunGREECE J. PanopoulosNETHERLANDS D. AninkNORWAY T. GloersenSWEDEN B. ArvidssonU.K. R. AshdownICS P. Hinchliffe

SECTORAL DIALOGUE COMMITT EEON MARITIME TRANSPORT The Sectoral Dialogue Committee is a consultative bodyto theEC Commission, half representing shipowners'associations, the other half maritime unions.

Shipowner Members

AUSTRIA H.G. WurmböckBELGIUM N. SimonsCYPRUS T. Kazakos, M. FilippouDENMARK P. VossESTONIA I. KaunisFINLAND H. AhlströmFRANCE G. SulpiceGERMANY D. LindemannGREECE G. KoltsidopoulosIRELAND D. HopkinsITALY R. Aglieta, L. PaolizziLITHUANIA G. Kutka

NE

THE

RLANDS G. Hollaar, J. BaggermanNORWAY E. MidelfartPOLAND R. CzyzykSPAIN M. Carlier, J. BarbadilloSWEDEN P. SprangersU.K. E. Brookes, T. SpringettISF N. WisemanSecretariat A. Guinier, T. Marking

HIGH LE VEL PASSENGER FERRY GROUPChairman: 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)

NE

THE

RLANDS 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)

EUROPEAN RO-RO CARRIERS ACTION GROUPChairman: P. Kyprianou

BELGIUM M. Cigrang (Cobelfret),

M. Gray (Cobelfret)FINLAND T. Voionmaa (Finnlines),R.Eriksson (Transfennica)

FRANCE C. Santoni (Louis Dreyfus Lines)GERMANY Y. Sonobe (KESS),

T. Wendt (KESS),R. Luttmann (Mitsui OSK),T. Metzger (Mitsui OSK)

GREECE N. Travlos (Neptune Lines)ITALY E. Grimaldi (Grimaldi Group),

P. Kyprianou (Grimaldi Group)NORWAY S. Omholt (UECC)SPAIN V. Serrano (Flota Suardiaz),

M.Eduardo Carballal (Trasmediterranea),F. Casas Blanco (Trasmediterranea)

EUROPEAN CRUISE COUNCILChairman: P.L. Foschi (Costa Crociere s.p.a.)Vice-Chairman: P. Ryan (Island Cruises)

D. Dingle (Carnival UK) J. Duguid (Saga Shipping)E. Frydenberg (Silversea Cruises) J. C. Helary (France Ferries Croisieres)S. Hooper (Royal Caribbean Line Cruises)S. Kiliaris (Louis Cruise Lines)N. Lingard (Fred Olsen Cruise Lines)A. Molina (Pullmantur Cruises)L. Narraway (Carnival Cruises Lines)

G. Potamianos (Arcalia Shipping Company Ltd.)S. Schnier (Hansa kreuzfahrten GMBH)D. Selby (Thomson Cruises)M. Terrevazzi (Regent Seven Seas Cruises)M. Thamm (Aida Cruises)P. Vago (MSC Cruises)M. Zengerle (Norwegian Cruise Lines) J. Zurnieden (Phönix Reisen)

ECSA STRUCTURE

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AUSTRIA

AUSTRIAN SHIPOWNERS' ASSOCIATIONKolingasse, 12 – Postfach 31096 Wien

Tel: +43 1 317 42 830Fax: +43 1 317 41 54e-mail: [email protected]: www.oelsm.com

BELGIUM

ROYAL BELGIAN SHIPOWNERS’ ASSOCIATIONBrouwersvliet 33 bus 9

2000 AntwerpenTel: +32 3 232 72 32Fax: +32 3 231 39 97e-mail: [email protected]: www.brv.be

CYPRUS

JOINT CYPRUS SHIPOWNERS ASSOCIATIONBlue Anchor House, 4R, Parou Street1082 Nicosia

Tel: +357 25360717, +357 22446350Fax:+357 25358642, +357 22446351e-mail: [email protected]

DENMARK

DANMARKS REDERIFORENINGAmaliegade 33DK - 1256 Copenhagen K

Tel: +45 33 11 40 88Fax: +45 33 11 62 10e-mail: [email protected]: www.shipowners.dk

ESTONIA

ESTONIAN SHIPOWNERS’ ASSOCIATIONLuise 1 A10142 Tallinn

Tel/fax: +372 646 01 09e-mail: [email protected]

FINLAND

FINNISH SHIPOWNERS' ASSOCIATIONSatamakatu 4 A – PO Box 155

00161 HelsinkiTel: +358 9 622 67 30Fax: +358 9 669 251e-mail : [email protected]: www.varustamoydistys.fi

ALANDS REDARFÖRENING

Hamngatan 822100 Mariehamn

Tel: +358 18 13 430Fax: +358 18 22 520e-mail : [email protected]

FRANCE

ARMATEURS DE FRANCE

Rue de Monceau, 4775008 Paris

Tel: +33 1 53 89 52 52Fax: +33 1 53 89 52 53e-mail : [email protected]: www.armateursdefrance.org

GERMANY

VERBAND DEUTSCHER REEDEREsplanade, 620354 Hamburg

Tel: +49 40 35 09 70Fax: +49 40 35 09 72 11e-mail: [email protected]: www.reederverband.de

GREECE

UNION OF GREEK SHIPOWNERSAkti Miaouli, 8518538 Piraeus

Tel: +30 210 429 11 59Fax: +30 210 429 11 66

+30 210 429 01 07e-mail: [email protected]

IRELAND

IRISH CHAMBER OF SHIPPINGTolka Quay RoadDublin 1

Tel: +353 1 855 90 11Fax: +353 1 855 90 22e-mail: [email protected]

ITALY

CONFEDERAZIONE ITALIANA ARMATORIPiazza S.S. Apostoli, 66

00187 RomeTel: +39 06 6748 11Fax: +39 06 6978 3730e-mail: [email protected]: www.confitarma.it

FEDARLINEA

G. G. Belli, 200153 Rome


LITHUANIA

LITHUANIAN SHIPOWNERSI. Janonio 245813 Klaipéda


LUXEMBOURG

UNION DES ARMATEURS LUXEMBOURGEOISRue de Hollerich 201022 Luxembourg

Tel: +352 48 28 50 1Fax: +352 48 28 71

MALTA

MALTA INTERNATIONAL SHIPPING COUNExchange Building, Republic StreetValletta VLT05

Tel: +356 21228193Fax: +356 21228196e-mail: [email protected]: www.misc.com.mt

NETHERLANDS

KONINKLIJKE VERENIGINGVAN NEDERLANDSE REDERSWijnhaven 65 b,3011 WJ Rotterdam

Tel: +31 10 414 60 01Fax: +31 10 233 00 81e-mail: [email protected]: www.kvnr.nl

NORWAY

NORWEGIAN SHIPOWNERS' ASSOCIATIONRädhusgaten, 25 - Box 1452 Vika0116 Oslo 1

Tel: +47 22 40 15 00Fax: +47 22 40 15 15e-mail: [email protected]: www.rederi.no

ANNEX 2 - ECSAMEMBERS ADDRESSES

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POLAND

Zwiazek Armatorów Polskish(POLISH SHIPOWNERS’ ASSOCIATIONUl.Energetykow 3/470-952 SZCZECIN

Tel: +48 91 8143 391Fax: +48 91 8143 398e-mail: [email protected]: www.polshipowners.pl

PORTUGAL

ASSOCIACAO DE ARMADORESDA MARINHA DE COMERCIORocha do Conde De ÓbidosEdificio Da Gare Maritima2° Piso, Sala B

Cais de Alcântara1350 – 352 LISBOA


SLOVENIA

SLOVENIAN ASSOCIATION OF SHIPOWNERSObala 556230 Portoroz

Tel: +386 56766 249Fax: +386 56766 130e-mail: [email protected]

SPAIN

ASOCIACION DE NAVIEROSESPANOLESDr. Fleming, 11 – 1° D28036 Madrid


Website: www.anave.es

SWEDEN

SWEDISH SHIPOWNERS' ASSOCIATIONSödra Hamngatan, 53P.O. Box 330SE-401 25 Göteborg

Tel: +46 31 62 95 25Fax: +46 31 15 23 13e-mail: [email protected]: www.sweship.se

U.K.

THE CHAMBER OF SHIPPINGCarthusian Court,12, Carthusian StreetLondonEC1M 6EZ

Tel: +44 207 417 28 00Fax: +44 207 726 20 80e-mail: [email protected]: www.british-shipping.org

ECSA MEMBERS ADRESSES

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BELGIUM

2005 was again an excellent year for the Belgian shipping compa-nies and thus, according to the results of the updatedEconomicImpact Study (Policy Research nv), there is no longer any reason todoubt the efficiency of the shipping policy.

Policy Research’s conclusion was that, despite the new policycoming into effect later than planned, most of the Belgian fleetwas already sailing under the Belgian flag at the beginning of 2005.

Added value in the merchant marine sector has risen by 65% since2001 and employment for Belgians with 3%. The introduction ofthe new shipping policy in Belgium got off to a good start. The newpolicy framework also meant that the key players in the Belgianshipping cluster kept their decision-making power in Belgium.

On the national level, a project concerning company taxation hasbeen finalized to permit private investment in ships on the samelines as real estate certificates. For seafarers on board short seavessels 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 bythe ship-owners. Belgium can reassume its international role as amaritime nation.

Once again, the campaigns to promote the seafaring professionthat the maritime sector organizes in collaboration with themerchant navy training institutions are proving highly successful.Enrolment for the 2005/2006 academic year has increased in adulteducation centres, secondary maritime training institutes and theMaritime Academy. The Maritime Academy is developing an optionfor students who are more interested in getting on with seafaringthan in acquiring an academic title. They will be able to take onlySTCW-related subjects, leading to the granting of a seafaringcertificate. If they decide to obtain the academic title at a laterstage, the modular system will enable them to take the necessarycourses for graduating fully.

CYPRUS

Cyprus constitutes the 3rd largest shipping fleet in theEuropeanUnion, and is considered to be the largest third-party shipmanagement centre inEurope. The contribution of Shipping toCyprus is estimated to be between 2-4 % of the Gross DomesticProduct, which exceedsEUR 350 million per year. Another impor-tant contribution of the Cyprus Shipping Industry is that it hascreated many employment opportunities for Cypriots. The totalnumber of gainfully employed persons by Cyprus shipping ashore isapproximately 5,000 and approximately 25,000 seafarers areemployed onboard Cyprus flag ships at any one time.

The Cyprus Shipping Council is one of the closest co-operators oCyprus Department of Merchant Shipping in the formulation ofGovernment’s maritime related policy. No policy decisions concing shipping matters are taken by the Government without ficonsulting the Council. This has been achieved through the partpation of the Council at numerous joint working groups with varGovernment Departments. Furthermore, the Council is regulcalled to appear before Parliamentary Committees as the represetative body of the Cyprus Shipping Industry, when matters affecCyprus Shipping are discussed at the House of Representatives.

During theEU accession negotiations, Cyprus adopted a new safety maritime policy, which concentrated on the effective controlthe ships and the improvement of the quality of the fleet, throuthe implementation of stricter registration rules, the deletion osubstandard vessels from the Cyprus Registry, unscheduleinspections of Cyprus flag vessels and a network of Independinspectors of Cyprus flag vessels. All the abovementioned effoand measures taken have paid off for Cyprus, and on 18 May 2the Cyprus flag was removed from the “black list” of the Paris Mand on 10 May 2006 was placed on the MoU’s “White List”.

The smooth development and operation of Cyprus Shipping ishampered by the Turkish trade restrictions against Cyprus flships, which were introduced in 1987. Since Cyprus accession tEU, these restrictions demonstrate that the illegal and discriminatory practice followed by the Turkish Authorities not only afCyprus, but also the interest of theEU. The Turkish embargodistorts the application of the principle of fair and free compettion in shipping trade within theEU, undermines the economicdevelopment and cooperation of the region, and violate alcommercial principles in shipping.

The Cyprus Shipping Council organised for the second time“Day of the Sea”Event, which took place on 17 September 2006, inLimassol. The “Day of the Sea”Event is a biennial “Open-Fair”social event related to the Sea and Shipping. Its aim is to increapublic awareness of the Shipping Industry in general and at tsame time promote the image of the Council in Cyprus, as wemaritime employment both onboard and ashore. Admission at Event was open to the general public and approximately 40people attended theEvent.

Last but not least, the Cyprus Shipping Industry in cooperation wthe Cyprus Government organised for the ninth time with grsuccess, the biennial international shipping Conference “MaritiCyprus” on 25-28 September 2005, which attracted hundredsshipping executives and experts from all around the world. TConference was entitle “Shipping: What lies ahead?... A threepiece puzzle” and focused on three interlinked key issues, whformed a “puzzle” for the Shipping Industry: Manning & InduRelations, Ship Safety & Security and Financing.

ANNEX 3SHIPPING IN ECSA

MEMBER COUNTRIES

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DENMARK

Shipping is a unique Danish stronghold with Danish shipping

companies in the forefront of the most advanced segments of theglobal shipping market. With an inflow of foreign currencyamounting to DKK 140 billion, shipping has cemented its positionas Denmark’s second largest export industry. At the turn of theyear Danish Shipowners’ newbuilding programme exceeded thetonnage of the existing merchant fleet. More than 13 million dwt,at a value of DKK 75 billion, were on order for delivery over thecoming three to four years. With its 500 ships and 10 million dwt,the Danish merchant fleet has never been larger and this alsoapplies to employment in the industry both at sea and with agrowing 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-basedcommercial operation of ships.

The positive development, which has characterised Danishshipping in recent years, must be seen as a unique combination ofthe industrial know-how combined with a political regulatoryframework that together is the back bone of the competitivenessof Danish shipping. The Danish Parliament and changing govern-ments have pursued a far-sighted industrial policy, which hasestablished and maintained positive conditions for the industry.Denmark’s International Ship Register and the tonnage tax systemhave proven to be absolutely fundamental for maintaining anefficient shipping sector in Denmark. The basis for Danish-flaggedships competing internationally is laid down within the frameworkof theEU recommendations for shipping taxation.

Although the wheels of theEU are grinding slowly as regards theproposal for a newEU constitution and the handling of theEUexpansion, theEU with respect to shipping has not come to astandstill by any means. For example, in November 2005 a compre-hensive shipping package was launched in the form of the MaritimeSafety Package III, containing seven new legislative initiativesrelating to safety and insurance related matters.Even if theproposals are mostly well-founded it is still important to seek tocarry safety and environmental stipulations through at an interna-tional IMO-level rather than a regionalEU level.

The shipping industry is a central part of the Commission’s veryambitious work with the formulation of an all-encompassingpolicy for the seas in theEU, the so called maritime Green-Book.The stage is currently being set for a number of new governmentalinitiatives with respect to the environment, while for the shippingindustry a predominantly global view remains. The shippingindustry has, in previous talks with the Commission, determinedthat competitiveness, stability and international solutions arevital in order to maintain the world’s largest maritime cluster in theEU. The best example of such a policy is theEU’s rules, whichprovide the member states with the opportunity to establishcompetitive regulatory framework, such as the DanishInternational Ship Register, DIS, and the Danish tonnage taxregime. On the other hand one should clearly avoid short-sightedmaritime employment requirements forEuropean flagged vessels

with a misguided reference to the need of keeping maritime knowl-edge. The knowledge building inEuropean shipping is today notleast land based in the shipping offices.

ESTONIA

SinceEstonian shipping was privatised in the mid-1990s, AS TallinkGrupp has been the most successful. AlthoughEstonian shippingdoes not receive any state subsidy at all, the company hasmanaged to successfully compete with major well-known Balticshipping companies. In 2006 AS Tallink Grupp bought Silja Line Ltdbecoming thereby the largest passenger and cargo carrier in theBaltic Sea. Cargo-line between Finland and Germany was acquired,with fast ferries.

Ships of AS Tallink Grupp sail on routes betweenEstonia andFinland and betweenEstonia and Sweden, on which routes theyaccount for half of the passenger and freight carriage. A new routewas opened this year between Latvia and Sweden (Riga-Stockholm). In the recent years the company has started tomodernise its fleet. Romantika, the most up-to-date passengerferry in the Baltic Sea, capable of carrying 2,500 passengers andwith 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 Galaxywas delivered in April this year. A few more new ships for AS TallinkGrupp are under construction.

As Saaremaa Laevakompanii (SLK), which until recently had onlyoperated 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 stateprocurement tenders for links to the Ruhnu Island in the Gulf ofRiga. Last year they opened a new ferry route between Saaremaa(Estonia), and Ventspils (Latvia). In May 2006 a new ferry routefrom theEstonian port of Sillamäe (near the Russian border) toKotka inEastern Finland was introduced.

Amongst the members of theEstonian Shipowners’ Association,the tug line AS PKL is also growing fast. During the past years it hasacquired new tugs with ADS propulsion devices and has widened itsarea of services to the Port of Riga in Latvia. Thus far not all carryEstonian 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 mainitems of interest to French shipowners which became evident lastyear and carried on in 2006.

Firstly, the future of the French tax lease scheme (GIE fiscal) is stillunder threat from theEuropean Commission to be re-qualified asa non sectorial State aid for shipping, with risk for shipowners ofhaving to reimburse the fiscal advantage dedicated to shipsfinanced through it. Up to now, most of French shipowners havedelayed their new shipbuilding programme.

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Secondly, the RIF register: the law introducing the new Frenchinternational register was voted in May 2005. Due to a late releaseof some additional legal texts, the entry into force of the French

second register became only effective mid February 2006. About 25ships have been registered under the RIF register so far. This regis-ter is open to every single ship operating on an internationalmarket except for ferries on intra-community traffics.

When adopting the law, there were fierce discussions in Parliamentand between shipowners and unions about the mandatory numberofEuropean seafarers to be included in the total crew.

Eventually, the shipowners’ point of view was adopted, with theobligation to have on board each vessel 35% ofEuropean officersand 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 FPCof last year, to declare the RIF a flag of convenience and this iswhat ITF did, on the basis of article 12 of the Oslo-to-Delhi Policy.As a consequence, some French shipowners clearly said that theywould not register their ships under the RIF register as long as thisflag is being classified FOC by ITF. For the time being, Armateurs deFrance is currently re-opening discussions with the unions, and it iscurrently 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 foremployers 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 theunions about the FOC classification of the register as an item to beconsidered, as it is apparent that most French officers are askingshipowners to urgently proceed to registration of their ships underthe 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 earlywastage among officers, especially in deep sea navigation, there isclearly a shortage of officers, more specifically of engineers. As inmany countries, shipowners and other branches of the nauticalindustry have launched a common reflection on how to attractyoung people to careers at sea. A maritime cluster was created end2005, both for the purpose mentioned above and also to promotethe maritime industry with the authorities and the public.

FINLAND

The Finnish merchant fleet amounts to 1,6 million GT. The averageage of the merchant fleet is about 20 years. Some newbuildingshave 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 Finnishseafarers (7500) due to strong opposition from the Seamen’sUnion against foreign employers.

Finland’s own foreign trade shipments rose to 89,6 million totransit shipments being 5,6 million tons. The Finnish merchfleet transported 32 % of the exports and imports of the countr

The number of passengers transported by sea between Finland other countries was 16,6 million.

From the beginning of January 2005 a net wage system, in linetheEU State Aid Guidelines, is in use even for passenger vessThe net wage system applies to all types of Finnish flagged vesin international traffic serving Finnish foreign trade, that is regular traffic to and from Finnish ports.

The law on tonnage tax has been in force for some years now,only one small shipping company has chosen this option. A futioning tonnage tax system is still one of the most important issu

for Finnish shipping. It gives shipping companies the opportunimake long-term decisions in an operating climate correspondito that in competitor countries.

GERMANY

The German-owned and operated merchant fleet keeps ogrowing: 206 newbuildings with 6,4 GT and a gross investme€ 6,7 Billion were put into service by German shipowners in 20addition 259 second-hand vessels with a total of 4,5 Million were purchased from abroad.

On 1 January 2006, the tonnage owned by German companies fthe German or foreign flags added up to 2.729 vessels with a toof 50 Million GT. This is an increase of 154 and a total tonnag9,0 Million GT compared to the figures a year ago. The Gerowned fleet now ranks third in the world. It mainly consistscontainerships, i.e. 1.167 vessels with a capacity of 2,8 Million EU.This part of the fleet maintained its world-wide top positioAmongst these vessels, 603 are flying the German flag and 2are flying foreign flags, of which 1.751 are entered into a Germsea-ship-register.

On 1 July 2006, the orderbook for deliveries to German shipowincluding their affiliated companies abroad, consists of 703vesswith a total of 18,3 Million GT. This means a total gross investof ¤ 23,1 Billion. The majority of the newbuildings are contavessels. This will keep the fleet modern, strong and efficient.

The change of government after the elections of September 20has not affected the positive development of the German shippiindustry. In its coalition treaty the new government confirmed tbasic principles of its predecessor in that the strengthening of thmaritime cluster was declared to be an important policy aim. particular, the tonnage tax and the additional measures for thereduction of wage cost differences between the German flag aforeign flags have been expressly confirmed. This was mainlyto the fact that all agreements made by the National MaritimConference in 2003 had been fulfilled by the government, the uand the shipowners. The shipowners have met their promisereflag more than 100 vessels. The number of ships flying German flag increased since the beginning of 2004 by 42%, t

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tonnage by 100%. The number of young trainees grew more than100% to around 900 within the same period while the current lackof seafaring and shore-based personnel becomes more and more

apparent.The German shipping industry is looking forward to the nextNational Maritime Conference which will be organised in Hamburgon 4 December 2006. At this Conference the continuation of thepositive development and its political base will be the focus. Afurther important item will be the necessary expansion of thecapacities of the public training institutions which have becomesmall as a consequence of the training endeavours of the shippingcompanies.

The German shipping industry is also looking forward to the coming

monitoring process of theEuropean Commission which is scheduledin the 2004EU State Aid Guidelines for the beginning of 2007. Toreach compliance withEuropean law is also under way in respect ofthe nationality of masters on board German flag ships. Themanning regulation is going to be changed by admitting mastershaving the nationality ofEU Member States but requiring sufficientknowledge of the German language.

GREECE

Developments in the global economy remained prosperous during2005. The slow-down in global economic operations was limited,

despite the impressive increase in oil prices. On the other hand, thedecrease in freight rates during 2005 resulted in a reducedincrease rate of the gross receipts of transport services. Morespecifically, the gross receipts from shipping services for Greecereached€13,871mn, an increase of€564mn or 4.2% compared tothe unusually high earnings of 2004, which were themselves higherby 40%.

In this context, the Greek-owned fleet strengthened its power byincreasing its total tonnage (dwt) by 4.1% whilst it maintained itsworld premiership, accounting for 16.1% of world tonnage (dwt). Itis worthwhile noting that Greek owners control 19.8% of the worldtanker fleet (chemical and product carriers, crude oil) and 23.6%of the world bulk carrier fleet in terms of dwt (excluding shipscurrently on order - ships greater than 1,000GT). Moreover, theGreek flag fleet amounted to 30.9 million GT, representing 22.1% oftheEU tonnage (GT), whereas, Greek-owned vessels flying theEUMember States flags amount to 49.7% ofEU shipping (dwt – shipsgreater than 100GT).

In the shipbuilding sector, Greek-owned shipping achieved simi-larly impressive rates resulting once again in a leading position ofthe global venture of “Quality Shipping”. In particular, by the endof March 2006 newbuilding orders by Greek interests (excludingpassenger, miscellaneous and offshore vessels) amounted to 364vessels, representing 25.8 million dwt. Out of these vessels, 183 aretankers corresponding to 14.9% of world tonnage (dwt) (i.e. 62crude oil tankers amounting to 17.6% of world tonnage (dwt) and121 chemical and product carriers amounting to 10.2% of worldtonnage (dwt)) and 92 bulkers corresponding to 14.4% of world

tonnage (dwt) on order in this category. The impressive order bookof newbuildings on behalf of Greek shipowners resulted in a furtherreduction of the average age of the Greek-owned fleet to 15.3

years compared with 15.9 in 2005, whereas the average age of theGreek 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 companiesoperate in Greece employing more than 11,000 persons, the vastmajority of whom are Greeks. In a wider context, the maritimecluster creates almost 200,000 jobs, 50,000 of which are forseafarers.

The benefits to the Greek economy from shipping activities aremore than obvious. In order to maximize these benefits, the vision

of a large Greek fleet, closely related to the Greek economy andsociety, could become a reality through the support of a modernmaritime 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 NearEast, coupledwith the recent interest for the promotion of Chinese trade inEurope through the geographic access of Greece, appear to call forthe services of such a centre and of such a big and modern fleet. Inthe 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 1,434ships totalling 11,848,404 gross tons, broken down as follows: over1,000 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 flagaccounts for 99% of the total Italian owned merchant fleet andamounts to 1,428 totalling 11,364,209 GT; this is due to a largenumber of new ships and also to the growing registration in theItalian International Register.

The Italian units registered in the International Register are 530totalling 10,424,743 GT; those in the Ordinary Register are 902totalling 1,398,072 GT. The Italian ships temporarily flying aforeign flag (bareboat charter registration) are 2 totalling 25,590GT, representing about 1% of total tonnage. The portion of thefleet owned by totally or partially privately owned bodies is equalto 94%.

The Italian fleet proves again to be a young fleet: 60% of the shipsare less than 10 years old and 40% have not yet completed their5th year of service. The modernization of the vessels, initiatedduring 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 foreigntrade was confirmed, as the overall volume of internationaltransactions for the maritime transport of cargo and passengers


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registered 12,702 millionsEuro compared to 17,608 millionsEurofor all the other systems of transportation taken together.

The maritime system produces about€36,300 million, equivalentto 2.7% of GDP, the same amount as the agricultural sector. The

most significant portion of the maritime economy is to be assignedto 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: thenational system creates yield of over€210 corresponding to eachadditional€100 that goes to the shipping sector because of newinvestments or increased exports and consumptions.

From the occupational point of view, 26,300 labour units employedin the shipping sector activate over 60,000 labour units in other

branches of the economy. Therefore, the overall shipping sectoremploys on the whole 86,300 people with a high multiplier, equal to3,028. It is estimated therefore that 100 additional labour units inthe maritime sector become 328 in the entire economic system.

With the introduction of the international register and thetonnage tax, the reform of navigation has been completed, incompliance with theEuropean Community directives; this meansthat not only is the Italian shipping industry currently able tooperate 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 beenkept (and in some case relocated) in Italy.

During 2005 there were major new developments regarding thetonnage tax, in force since the tax period following 20 October2004, the date on which theEuropean Commission declared it to becompatible with the new treaties establishing the system ofoptional taxation applicable to navigation enterprises.

LITHUANIA

The entire Lithuanian transportation system plays an importantrole in the economy of the country. Annually, this sector generatesover 8.0 % of the national GDP and employs about 4.0% of its totallabour force.

At the end of 2004, the Governmental Strategic Committeeapproved some guidelines on the basis of a study on the“Relevance andEconomic Impact a Modern Shipping Policy onLithuania’sEconomy.” A set of measures to be implemented wasproposed, aiming at improving the national setting. There are twomain fiscal measures, i.e. a Tonnage tax system and a reduction ofsocial contribution taxes.

It was finally concluded that a Modern Shipping Policy would havea significant positive impact on the Lithuanian shipping sector andthe Lithuanian economy as a whole. The Lithuanian shipping sectorsuffers from some weaknesses and threats, namely manpowercosts, a high average age of the merchant fleet and a decliningnumber of merchant vessels under Lithuanian flag.

In 2005, the Lithuanian Government and stakeholders came tmutual agreement, suggesting reducing Social contribution taxeFollowing endorsement by theEuropean Commission, the

Lithuanian Parliament has to adopt implementing measures.The Lithuanian Government also notified a proposal to introducTonnage Tax system in Lithuania, which was approved by European Commission on 19 July.

It is expected that these fiscal measures will come into force 2007. Starting on 1st January, 2004 “0” % income tax was intro-duced for all seafarers, liable to taxation in Lithuania, irrespectiof the flag of the vessel they work on. The question of reintroding a Lithuanian flag link principle with regard to income exemptions is now under scrutiny. TheEC forced Lithuania to

reintroduce the flag link principle. Due to the fact that Lithuan joined theEU in May 2004, Lithuanian seafarers have becom“more expensive” because of social contribution taxes, which to be paid byEuropean shipowners. Many Lithuanian seafarerswere replaced by a labour force from third countries.

From 1st July, 2006 Lithuania has become a member of the PaMemorandum of Understanding. It is hoped that this fact wreduce the number of Lithuanian ships being detained.

Increasing the competitiveness of the Lithuanian shippinsector demands a continuing improvement of the reputation

the Lithuanian flag and a further application of state aidmeasures in line with the Community guidelines on State aidmaritime transport. It should also enable a renewal of thLithuanian fleet.

Altogether, the year 2005 was a profitable year for the manational shipping companies.

THE NE THERLANDS

Overall, 2005 was a good year for global shipping with a hvolume of cargo being carried and with good rates. Although Dshipowners have benefited from this positive year, the Dutch shof global transport could have been bigger. The reason being unsatisfactory business climate for shipowners in the Netherlanresulting in a decline of the number of ships registered under Dutch flag.

Until 2003, the Dutch-registered fleet showed a steady increasethree to five percent annually. Since then, the number of shiunder the Dutch flag has decreased with a similar percentagresulting in a fleet of 759 ships in July 2005, which was the back in 2001.

In 2005, it once again became apparent that the Dutch shippinindustry acts as a booster for other segments of the Dutcmaritime cluster. Dutch shipowners have ordered a considerabnumber of ships to be built in the Netherlands and the positiconsequences to a large part of the cluster (shipyards, maritimsuppliers, ports) have been clearly visible.EUR 2.8 billion was

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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 underlinedin the results of a study carried out by the University of Groningen,published in September 2005. Maritime transport is in the top fiveof most successful services in the Netherlands and came secondfor size.

The worldwide role of the Dutch shipping industry is important too.For instance, in terms of numbers (nearly 300), the Dutch short seashipping sector is number three in the world and number two inEurope. The Dutch reefer trade and the heavy lift trade are alsosignificant world players.

The total number of seafarers employed by the Dutch merchantfleet is 20,000. 192,000 people are employed within the maritimecluster as a whole and it generates an added value of€ 12.6 billion.

Dutch consumers too benefit directly from the shipping industry. Incombination with the low cost of maritime transport, the enor-mous quantities of cargo transported cause a large number ofgoods to become available at (relatively) low prices. Very oftenthe consumer is not aware of this, but 90 percent of goods forconsumption 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 offlorries and onto this type of ship.

In order to make the Netherlands a more attractive location forshipping business, the Dutch government introduced a specificshipping policy about ten years ago. The policy was meant tocontribute to the continuing development of not only the shippingindustry but also the maritime cluster as a whole. By now theshipping policy is showing signs of aging. It has been copied and inmany 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 andintends to carry out an evaluation of the policy over the past tenyears. Based on this evaluation there will be recommendations tomake the shipping policy attractive once again. It goes withoutsaying that the KVNR, as a trade organisation to the shippingindustry, will make a positive contribution in this matter.

Whilst renewing the Dutch shipping policy, the position of Dutchseafarers will have to be addressed as well. They operate in aninternational labour market of which the Dutch seafarers’ one isonly a part. Dutch seafarers are of value not only as long as theywork as officers or masters on ships flying the Dutch flag, but alsowhen –after an average of seven years at sea– they exchange theirseagoing jobs for shore positions. Often they occupy specialistpositions within the Dutch maritime cluster and thus continue tomake valuable contributions to the Dutch economy. However, theircompetitive position in the international labour market is beingseverely impaired by government policies often not specificallyaimed at the seafaring population. The new health insurance

system, the continuation of the retirement age of 60 and the LifeCourse plan are a few examples.

National legislation “outranking” international legislation may bea negative influence on the appeal of the Dutch business climate.As it is potentially damaging to competitiveness with other flagstates it is something that should be guarded against. In 2005 itlooks as though it is happening anyway in the area of environmen-tal legislation. The Inspectorate for theEnvironment has decidedto maintain national legislation for Dutch flag ships regardingrefrigerant agents in shore installations to the letter. Should thisprove to be legally feasible in the Netherlands –which according tostandard international interpretation it should not be– it willdefinitely have an adverse effect on the competitive position ofships registered in the Netherlands.

It is clear that the Dutch shipping industry’s added value can onlybe maintained –and if possible increased– by amending theDutch shipping policy. The fact that half the ships operated byDutch shipowners are at present registered under foreign flagsprovides great potential for the expansion of the Dutch register.Amendment of the shipping policy should not be confined to theremit of the Ministry of Transport, Public Works and WaterManagement, but should extend to that of all other ministriesthat have links with the shipping industry. Should there be no orinsufficient amendment to the policy, there is a very real chancethat – despite efforts by the Ministry of Transport, Public Works

and Water Management – the downward spiral plaguing theDutch shipping industry prior to 1996 will once again becomemanifest.

NORWAY

Instability and controversy have marked the Norwegian maritimepolicy over recent years. The Norwegian tonnage tax system, whichwas introduced in 1996, is no longer competitive compared tointernational systems, including tonnage tax systems in otherEuropean countries. Over the last couple of years a clear trend hasbeen seen in which new shipping projects and activities, controlledby 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 ofaligning the Norwegian tonnage tax system withEU countries. Themajority included all parties except the Socialist Left Party. As aresponse, Government appointed an expert commission to reviewthe Norwegian system and give recommendations with respect toaligning it with theEuropean model.

The White Paper did not result in a similar broad political majorityin the Parliament concerning the future conditions for Norwegianseafarers. A wide majority was in favour of maintaining the currentnet wage system for offshore vessels, but a majority voted todiscontinue the net wage system for ferries in international serviceas of 2006. The liberal/conservative government lost the generalelection, in September 2005. The election returned a three party,red-green, majority government, including the Socialist Left Party


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as junior partner (holding the post as Minister of Finance). This isthe first majority government in Norway for 20 years. The newgovernment 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 ineconomics, presented a split recommendation in March 2006. Thecommission-minority recommended full alignment withEuropeantonnage tax systems. However, the majority gave a very theoreticalrecommendation: in order to secure optimal allocation of resourcesin the Norwegian economy the general Norwegian tax system mustapply on equal terms to all Norwegian industries and employees.Consequently all special tax provisions for shipping companies andseafarers should be abolished, even if this will result in shipping

activities leaving Norway. The commission report was out for publichearings until June. It already seems clear that the theoreticalmajority 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 thenecessary changes to bring the Norwegian tonnage tax system inline with the system inEU-countries. The government is expected todraw a conclusion in the autumn of 2006.

The Norwegian controlled fleet declined by 9,3% to 37,1 million dwtin tonnage terms from January 2005 to January 2006. However, thefleet grew by 28 in numbers to 1.642 vessels. More than 2/3 of the

fleet flyEEA-flags, including more than fifty percent underNorwegian flag.

At the beginning of 2006 Norwegian shipowners had a total of 212new ships, valued at 64 mill NOK, and 20 rigs on order, valued at 32billion NOK. The total value of 96 billion NOK (14,2 billion USD)represents an impressive 140% increase compared to January2005. Norwegian yards accounted for 59 of the ships on order,another 35 orders were placed at otherEuropean yards in Poland,Spain, Finland, Netherlands and Germany.

As of February 2005 some 55.500 persons of more than 60 differentnationalities were employed onboard Norwegian controlled merchantvessels and rigs. Some 15.200 of these were Norwegian nationals,10.600 of otherEEA-nationalities and another1.100 of otherEuropean nationalities. The most important non-European national-ities serving onboard Norwegian controlled vessels were Filipinos andIndians, 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, shipsflying Polish flag were only 17 what represented 2,1 % (in GT) of thetotal figure. In comparison to 2004, it was 13 ships more (163 800GT). An average age of the fleet was 20,1 years.

In June 2006, the country’s statistics on vessels on order (includingaffiliated 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 tons of seaborne trade, i e by 58,4 % less than in 2004. As far ascarriage of passenger in the Baltic Sea is concerned, there was

increase of 14,1 % compared to the preceding year (713 000 psengers carried in 2005).

The passenger coastal fleet comprised 21 small units of tot4 300 GT. In 2005 maritime affairs were dealt with by the MinisInfrastructure and later by the Ministry of Transport anConstruction. On 5th of May 2006 the Ministry of MaritimeEconomywas established, thus fulfilling the expectation of the maritimindustries forum, including the PSA.

There are now great hopes in shipping circles that there could bspeeding up of the process of consultation and work on the cou

try’s maritime strategy for the years 2007-2015, which includsuch topics such as competitiveness, labour and growth.

As a result of intense discussions, on 12th April 2006 two separatePolish associations agreed to jointly represent Polish Shippi(20 members) atECSA. The POLISH SHIPOWNERS’ ASSOCIATION(PSA) now includes 4 Members from POLSTEM Group of Companies.The PSA’s Secretariat has been transferred from Gdynia to SzczPSA is actively co-operating with the Polish Shortsea PromoCentre, Polish Chamber of Maritime Commerce and other orgations and associations in Poland.

Throughout the years, the Polish Government has been publdeclaring support for the national shipping sector. Yet, the yearscome will show the results of a current discussion on a “tonnage tax regime ”. On the side of PSA there are hopes and expectationthat the proposedTonnage Tax regime can be adopted by the PolishParliament in 2006. Regrettably, a reduction of social taxes another wage related proposals have not as yet been considered.

Experts of the Polish Shipowners’ Association are actively partpating in all initiatives which are aiming at returning ships to tPolish national flag. However, such a return will require a mfriendly approach from the Polish Ministry of Finance (Stbudget respectively) as well as fiscal incentives in line with Community Guidelines on State aid to maritime transport.

PORTUGAL

The year 2005 was, once again, a frustrating one for the PortuguShipowners. The Government change, in March 2005, did not rin a policy change with respect to Portuguese shippingConsequently, Portuguese Shipowners continue to wait for adoption of the requested supportive measures, similar to thosalready adopted a long time ago in most other Member Statesuch as the adoption of a tonnage tax regime and measures in thfield of social security contributions and income taxation.

The new Government has highlighted the importance of maritimits Programme but the maintenance of three Ministries responsifor maritime policies, will not result in an integrated, consistent aefficient performance which the Portuguese shipping so requires

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The problems faced by the nautical school and maritime profes-sional structure are still unsolved and the serious lack of nationalseafarers faced by the shipowners in order to man their vessels

continues to increase.The need to shape the legal picture to modern shipping and thelack of an action plan to solve for once the excessive administra-tive bureaucracy are also some features of prime importance thatare still unsolved.

Also strongly felt is the absence of an articulated and efficientpolicy for the short sea shipping sector, which would allow theprofiting 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 registeredvessels to a meaningless 15 representing just 77,656 tdw.

A special reference deserves to be made to the celebration of theIMO World Maritime Day ParallelEvent held in Portugal on the 15thNovember 2005 with the presence of the IMO Secretary General andof senior personalities of institutions and international andnational maritime activities.

SPAIN

After two exceptional years of historical freight levels in mostmarket sectors, the downturn registered in 2005 affected alsoSpanish shipping. The tonnage of the total merchant fleetcontrolled by Spanish shipping companies decreased by 2.2%, interms of GT and 3.9% in DWT. Nevertheless, it is worth noting thatthe decline was concentrated in the Spain’s registered ships, whilethe fleet controlled under foreign flags remained practicallyunchanged.

At the beginning of 2006, Spanish shipowners controlled 281merchant ships with 4,083,308 GT and 4,941,178 DWT. Out of thesetotals, 60% of the ships, 55% of the GT and 43% of the DWT wereflying 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% ofthe tonnage under national flag was registered in the SpecialCanary Islands register.

Last year, Spanish shipping companies received only 7 newbuild-ings, with a market value of about€237 million. Adding to the 18new ships received in 2004 and the 13 in 2003, the totalinvestment, only in these 38 newbuildings, exceeds€1,477 millionin the last three years.

Spanish seaborne trade (imports + exports + national cabotage)increased by 8.2% in 2006, reaching a new historic record of 340million tonnes. General cargo trade showed an increase of 10.4%to 101.4 million tonnes, dry bulk rose by 8.4% to 105.1 milliontonnes and liquid bulk shipments by 6.4% to 131.9 million tonnes.Transport demand increased strongly both in exports (59 milliontonnes, +9.7%) and imports (234 million tonnes, +8.6%), while

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 bulkand 19.6% dry bulk.

The new national regulations on the employment of non-EUworkers, effective by February 2005, made it extremely difficult toemploy non-European seafarers onboard Spanish flag ships. Thatwas the most important reason why, for the first time in ten years,the Spanish fleet reduced its tonnage by 3% in 2005. This factdemonstrates the permanent necessity for shipowners to have acompetitive framework for their operations. This has been furtherconfirmed in the first 5 months of 2006: while Spanish flag fleet

remained stable, the Spanish controlled tonnage under foreignflags increased by a significant 14%.

Finally, as a consequence of the good results obtained by Spanishships 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 workingtogether with the Maritime Administration to try and confirm thisachievement for the coming future.

SWEDEN

2006 is a significant year for the Swedish Shipowners´ Association.The Association celebrated its centenary as the association for theSwedish shipping industry.

In 2006, two important studies were presented as part of thecentenary celebrations. A new cluster study was presented with newfigures showing the growth within the shipping sector in Sweden.Approximately 220 000 people are involved in the shipping cluster inSweden. The cluster has increased with 70 000 people since the lastreport from 2001. A second report included a programme present-ing a vision for the coming ten years for the shipping industry inSweden. This “Vision 2016” has 8 headlines which will be the lead-ing star for the future work and ambition of the SwedishShipowners´ 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 centralquestion, primarily with respect to the implementation of thetonnage tax in Swedish legislation. During 2005 a report was pre-sented and hopefully this proposal for a new tonnage tax regimewill go to the Parliament during the fall 2006.

Education and research are core areas in the shipping industry ofthe future and its development. Together with Chalmers Universityof Technology and the School of Business,Economics and Law atGothenburg University, the Association and its members, in thelong term cooperation project, have established Lighthouse, a newcompetence centre in Gothenburg for shipping related education

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and research. This long term investment from the shipping industrywill secure the future research and education which the industrywill require for the future.

An important issue, in which the Association is actively involved, isthat the Baltic Sea Area should be classed as a ParticularlySensitive Sea Area (PSSA). As the leading country, Sweden hasbeen 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 Swedishships are among the very best in the world. The Shipowners´Association and its members have a policy of zero tolerance withrespect to detentions following Port State controls.

An important question, which indirectly affects shipping inEurope, is the review of the emission trading system for carbondioxide, which was initiated during the year. The SwedishShipowners´ view is that this tool, i.e. the trading system as such,is superior to the alternatives of taxes, regulations or highercharges. It means thatEuropean competitiveness is not weakenedmore than necessary at the same time as the environmentaleffects are rapidly achieved.

UNIT ED 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 shippingmarkets. As a result, UK-owned shipping increased in tonnageterms during 2005 by a further 5% to 17.1m deadweight tonnes(dwt) and is now some 140% higher than in 2000. UK-registeredshipping outstripped even those achievements with an 11%increase to 11.7m dwt over the year, an expansion of more than300% over the past five years.

The combination of sustained growth and healthy shippingmarkets has pushed up both turnover and the contribution seatransport made to the UK balance of payments. In recentlyreleased figures for 2004, shipping gross revenue broke the £10bn(Euros 14.5bn) barrier. Sea transport has risen up the table ofservice sector export earners, and now lies third for the first timein many years, overtaking insurance, air transport and royaltiesbehind the two traditionally high earning sectors of financialservices and tourism.

Maintaining this level of success in fiercely competitive interna-tional shipping markets is a major challenge. TheEU’s revised 2004Maritime State Aid Guidelines aim to set a fair approach betweenthe different national regimes of member states and to promotethe international competitiveness ofEU-based shipping but theirdetail takes a narrow approach to, for example, flagging which isparticularly unfortunate for an internationally focussed shippingindustry like that in the UK. The Chamber sees the development ofa strong and influentialEU hub for international shipping andshipping services as an essential component of the future global

structure for shipping; key to this is maintaining the competitiadvantage ofEuropean-based shipping.

The shipping industry, as we are all well aware, made a maadvance in the field of seafarers’ working conditions with tadoption of the International Labour Organisation (ILO) MaritLabour Convention 2006, which is designed to provide an effesafeguard of decent conditions for seafarers across the globe. Tchallenge is to ensure that the convention in implemented in boBritish andEuropean law in a pragmatic manner which preservethe flexible elements for which the Chamber and other shipporganisations have fought hard.

On employment the Chamber has continued to push thGovernment to take action in order to create a more favourab

employment environment for UK seafarers. The Chamber remfirmly opposed to any mandatory employment link for tonnagecompanies, although it is willing to consider voluntary commments by companies both in and outside tonnage tax. Improviemployment opportunities for officers and particularly ratingcontinues to present a real test and challenge to policy makers anshipowners alike.

Maritime governance issues and environmental performance hremained high on the international, national andEU agenda during2005 and throughout the Chamber has worked to ensure thprogress is achieved against a background of commercial realis

Reductions in air emissions, to take only one example, must achieved using the latest technology and it seems vital thalegislation is flexible enough to allow industry to pursue the mcost-effective solutions. In advance of theEU Future MaritimePolicy Green Paper the UK Government has its own commitma ‘marine bill’ which will introduce a system for delivering susable development of the marine and coastal environment. As wtheEU Green Paper this legislation will seek to resolve conflictdemands amongst sea-users; from energy, aggregates, shippingport and fishing interests, while also ensuring that conservatioobjectives are achieved.

The Chamber continues to provide the base for the Sea Visioncampaign to raise awareness of the wider maritime sector whencouraging young people to consider a career within the sectThe campaign has benefited from the addition of three new stand an increased membership. It now engages with over 2organisations and companies from across the sector. Sea VisiUK is working hard to continue the legacy of SeaBritain 2capitalising on the momentum generated by the maritime focuslast year.

In 2006 Sea Vision partners will take part in wider range of puevents than ever. The dedicated Sea Vision website, which contthe leading national maritime events database, is being continually updated to offer more service to the industry and public aliwith new careers, news and partner support sections and linkslocal attractions. The continued success of the UK maritime secguarantees an exciting future for Sea Vision UK, encouraging uto ‘take a fresh look at the sea.’

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AEO AuthorisedEconomic OperatorAIS Automatic Identification SystemsASEAN Association of SouthEast Asian Nations.Encompasses 10 SouthEast Asian countries, Indonesia, Malaysia,

Philippines, Singapore, Thailand, Brunei, Vietnam, Lao Peoples’ Democratic Republic, Burma/MyanmarCambodia.

CIS Commonwealth of Independent StatesCO2 Carbon DioxideCTPAT Customs Trade Partnership Against TerrorismDDA Doha Development AgendaDWT Deadweight Tonnage represents the maximum weight of cargo fuel and stores that a vessel can carry.EEA EuropeanEconomic AreaEFTA European Free Trade Association. Iceland, Liechtenstein, Norway and Switzerland are members ofEFTAELAA

E

uropean Liner Affairs AssociationEMSA European Maritime Safety AgencyE TF European Transport Workers’ FederationEU European UnionFP Framework ProgrammeGDP Gross Domestic ProductGHGs Greenhouse GasesGT Gross Tonnage is the internationally accepted measurement of vessels, notably taking into account the volume

the vessels enclosed spaces.HNS International Convention on Liability and Compensation for Damage in connection with the Carriage of Haza

and Noxious Substances by Sea, 1996ICS International Chamber of ShippingILO International Labour Organisation (UN)IMO International Maritime Organisation (UN)ISPS Code IMO International Ship and Port Facility Security CodeLLMC International Convention on the Limitation of Liability for Maritime Claims, 1976 and 1996LNG Liquefied Natural GasMARPOL International Convention for the Prevention of Pollution from Ships, 1973 and Protocol of 1978MEP Member of theEuropean ParliamentMERCOSUR A political grouping of Argentina, Bolivia, Brazil, Chile, Paraguay and Uruguay aimed at promoting econom

political cooperation.MIF Maritime Industries ForumNGO Non- Governmental OrganisationNOx Nitrogen OxidesNVOCC Non Vessel Operating Common Carrier

PARIS MOU Paris Memorandum of Understanding on Port State ControlPM Particulate MatterPSC Port State ControlR&D Research and DevelopmentSECA SOxEmission Control AreaSOLAS International Convention for the Safety of Life at Sea, 1974SOx Sulphur OxidesSTCW International Convention on Standards of Training, Certification and Watchkeeping for Fishing Vessel Perso

1995 T EN-T Trans-European Transport Networks T EU Twenty FootEquivalent Unit (container) TP WAT ERBORNE EU Maritime Technology PlatformUNCITRAL United Nations Commission on International Trade LawUNCLOS United Nations Convention on the Law of the Sea,1982UNCTAD United Nations Conference on Trade and Development VAT Value added tax VOC Volatile Organic CompoundsWCO World Customs OrganisationWTO World Trade Organisation

ANNEX 4GLOSSARY

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56 ANNEX 5STATISTICAL TABLES

EEA REGIST ERED TRADING FLEE T BY MEMBER STAT E

As at 1st April 2006 (100 GT and above)TABLE 1

FLAG No GT DWTAUSTRIA 8 34 072 44 437BELGIUM 70 3 904 222 6 447 313CYPRUS 924 19 466 852 31 148 84DENMARK 373 8 013 799 9 770 951ESTONIA 49 398 808 106 429FINLAND 156 1 349 878 1 071 78FRANCE 201 5 286 137 7 164 423GERMANY 523 11 155 847 13 242 30GREECE 1 245 31 380 389 53 531 029ICELAND 14 6 449 2 893IRISH REPUBLIC 42 169 667 245 007ITALY 886 11 486 896 12 306 373LATVIA 33 255 027 340 540LITHUANIA 63 371 594 369 88LUXEMBOURG 38 461 051 636 299MALTA 1 208 23 505 022 37 740 96NETHERLANDS 584 4 960 683 4 935 633NORWAY 1 195 16 563 128 22 586 9POLAND 55 78 751 64 591PORTUGAL 152 1 123 628 1 434 10SLOVAKIA 47 212 161 300 835SPAIN 218 2 320 797 2 297 117SWEDEN 350 3 655 908 2 328 607UNITED KINGDOM 603 10 745 621 11 412 2 TOTAL 9 037 156 906 387 219 529 588

Source: Lloyd's Register - Fairplay

EEA AND WORLD TRADING FLEE TSAs at 1st April 2006 (100 GT and above - thousand tonnes)

TABLE 2EEA FLEE T WORLD FLEE T

TYPE NO GT DWT NO GT DWT

Bulk Carrier 1 258 39 042 70 591 6 416 192 204 344Bulk/Oil Carrier 21 1 168 2 019 135 4 570 7 81Chemical Tanker 168 1 139 1 781 1 338 5 562 9 0Container (FC) 900 30 343 35 182 3 635 100 231 116 3Cruise 79 2 694 356 403 12 058 1 440Gen Cargo Multi Deck 586 2 676 3 587 4 365 19 403 26Gen Cargo Single Deck 1 396 6 122 8 677 11 561 32 844 4Gen Cargo/Passenger 56 53 18 317 591 292Liquefied Gas Carrier 233 6 295 6 280 1 243 28 119 25Oil Tanker 1 591 46 414 82 273 8 956 204 255 366 0Other Tanker 75 140 204 380 884 1 278

Passenger 781 270 50 2 697 1 027 206Reefer 143 967 1 050 1 237 6 199 6 661Ro-Ro Other Cargo 278 4 030 2 586 889 9 490 6 5Ro-Ro Passenger 1 167 9 536 2 143 2 714 15 358 3 8Specialised Carrier 305 6 018 2 734 1 810 27 954 12 7 TOTAL 9 037 156 907 219 531 48 096 660 749 976 146

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ADDITIONAL SELECT ED COMMERCIAL FLEE TSAs at 1st April 2004 (100 GT and above - thousand tonnes)

EEA FLEE T WORLD FLEE T TYPE NO GT DWT NO GT DWT Dredging 347 1 007 1 311 1 215 2 628 3 156Offshore Supply 450 929 1 038 3 221 3 730 4 098Tug 1 678 489 217 11 141 3 084 1 170 TOTAL 2475 2425 2566 15577 9442 8424


THE EE A REGIST ERED AND WORLD FLEE T DE VELOPMENT As at 1st April 2006 (100 GT and above)

TABLE 3

Y EAR EEA WORLD EEA AS %OF WORLD TONNAGE

N° MN. TONNES N° MN. TONNES1990 7 659 72 326 GRT 38 221 383 955 GRT 18,82000 6 783 84 351 GT 45 023 518 221 GT 16,32004 9 291 152 709 GT 46 551 584 303 GT 26,12005 9 047 154 332 GT 46 801 618 109 GT 25,02006 9 037 156 907 GT 48 096 660 749 GT 23,7


EEA REGIST ERED ANDEEA CONTROLLED FLEE T As at 1st April 2006

TABLE 4

EEAShipowners' controlled,EEAregistered fleet136,2 Mn GT

EEAregistered, non-domiciled owner’s20,7 Mn GT

EEAShipowners' controlled fleetunder third country flags

133,9 Mn GT


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58

AVERAGE AGE OF FLEE TSAs at 1st April

TABLE 52005 2006

EEA WORLD EEA WORLDDRY BULK 14,2 13,9 13,37 13,48LIQUID 10,2 11,7 8,85 10,87OTHER DRY CARGO 12,6 15,0 11,81 14,2

PASSENGER 14,4 12,6 14,39 12,42 TOTAL TRADING 12,24 13,40 11,24 12,75Source: Lloyd's Register - Fairplay

THE WORLD MERCHANT FLEE T'S DISTRIBUTION BY TYPE OF VESSELAs at 1 July 2006

TABLE 6

1,000 GT FLAG OIL TANKERS DRY BULK GEN. CARGO CONTAINER OTHER TYPES TOTALPanama 38 928 61 275 5 979 21 863 16 372 144 41Liberia 32 564 10 820 1 263 16 009 2 184 62 84Bahamas 16 837 7 223 3 412 2 104 8 528 38 10Greece 17 260 10 406 235 2 350 1 566 31 817Singapore 17 207 6 140 1 203 4 584 1 619 30 75Marshall Islands 19 848 5 384 986 3 968 536 30 72Hong Kong, China 7 018 17 396 1 699 4 167 314 30Malta 7 813 11 219 2 178 1 227 1 333 23 770China, People's Republic of 4 398 8 594 4 436 3 242 754 21Cyprus 3 414 10 748 1 500 2 922 821 19 405Norway 10 005 1 855 1 483 48 3 249 16 640 Japan 5 491 2 577 663 424 2 569 11 724Italy 3 820 1 839 347 824 4 805 11 635Germany 553 156 321 9 729 360 11 119United Kingdom 1 688 1 069 394 5 266 2 403 10 820Korea, South 1 141 5 138 739 1 197 491 8 706United States of America 2 409 1 239 280 2 983 1 658 8 5Denmark 1 979 316 251 4 979 621 8 146Isle of Man 5 460 1 805 384 259 160 8 068India 5 161 2 192 244 106 46 7 749Bermuda 3 208 1 852 13 731 1 877 7 681Antiuga & Barbuda 68 617 2 211 4 221 248 7 36

Malaysia 4 028 432 402 689 162 5 713St Vincent & The Grenadines 392 2 326 2 053 110 553 5Russia 1 605 645 2 515 159 388 5 312Rest of the world 30 874 20 862 19 188 8 215 15 648 94 TOTAL WORLD TONNAGE 243 169 194 125 54 379 102 376 69 265 663 314

Source: Lloyd's Register - FairplayEEA Member Countries

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NEWBUILDINGS ON ORDER(Vessel types on multi annual order by Country of Domicile - as at June 2006)

TABLE 7DRY CARGO CONTAINER TANKER

COUNTRY OF DOMICILE

N° TOTAL DWT N° TOTAL DWT N° TOTAL DWTAUSTRIA - - - - 1 38 500BELGIUM 1 3 890 11 397 160 25 2 336 460CYPRUS 18 257 070 31 551 130 26 1 175 388DENMARK 5 15 800 99 7 005 550 125 7 223 847ESTONIAFINLAND 1 4 600 2 23 000 2 124 450FRANCE - - 63 3 567 174 14 313 800GERMANY 118 1 004 028 357 10 352 430 64 2 223 245GREECE 5 36 300 12 300 100 216 13 382 480IRELAND 10 45 016 - - - -ITALY 8 85 600 22 969 300 81 3 027 395LATVIA - - - - 14 667 360LUXEMBOURG - - - - - -MALTA - - - - 2 94 000MONACO - - - - 4 293 600NETHERLANDS 111 741 626 46 543 578 23 786 357NORWAY 10 320 520 - - 80 3 700 570POLAND - - - - - -PORTUGAL 4 26 500 - - 3 450 000SPAIN 1 4 500 2 33 000 4 83 999SWEDEN - - - - 30 1 334 517UK 26 185 900 7 272 979 60 2 143 358EEA TOTAL 318 2 731 350 652 24 015 401 774 39 399 326WORLD TOTAL 660 5 265 721 1 152 50 723 414 1 860 121 069 299

BULKER RO-RO PASSENGERCOUNTRY 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 2ESTONIA 3FINLAND 2 37 600 10 165 000 6FRANCE - - 1 1 000 5GERMANY 46 3 084 602 2 14 600 3GREECE 82 7 478 225 17 230 130 2IRELAND - - - - -ITALY 13 721 863 6 139 900 26LATVIA - - - - -LUXEMBOURG 1 76 600 - - -MALTA - - - - -MONACO 4 305 600 4 48 000 -NETHERLANDS 4 273 000 - - 1NORWAY 19 939 945 41 718 996 17POLAND 12 406 170 - - -PORTUGAL - - - - -SPAIN - - 1 7 300 3SWEDEN 3 27 000 5 66 100 5UK 9 633 269 6 44 000 3EEA TOTAL 217 14 952 289 103 1 576 311 76WORLD TOTAL 832 66 446 642 223 3 324 865 157

Source: Fairplay Newbuildings

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WORLD SEABORNE TRADE(Million Tons)

TABLE 8

CRUDE OIL IRON COAL GRAIN OTHER TOTALOIL PRODUCTS ORE CARGOEST. EST.

1990 1 190 336 347 342 192 1 525 3 9322000 1 608 419 454 523 230 2 361 5 5952004 1 792 461 589 664 236 2 789 6 5312005 est. 1 820 488 650 690 242 2 894 6 7842006 forecast 1 900 510 690 715 255 3 018 7 0882007 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 TOTALOIL PRODUCTS ORE CARGOEST. EST.

1990 6 261 1 560 1 978 1 849 1 073 4 400 17 122000 8 180 2 085 2 545 2 509 1 244 7 130 23 692004 8 795 2 305 3 444 2 960 1 350 8 720 27 572005 est. 8 985 2 475 3 801 3 091 1 384 9 132 28 862006 forecast 9 380 2 600 4 035 3 219 1 459 9 611 30 3

2007 forecast 9 750 2 680 4 354 3 350 1 515 9 901 31 5Source: Fearnleys

ANNUAL PERCENTAGE GROWTH IN GDP, OF WORLD MERCHANDISE E XPORTS IN REAL VALUE

AND OF MARITIME TRANSPORT VOLUME, 1995-2005TABLE 9

-2

0

2

4

6

8

10

12

14

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

GDP Merchandise exports Maritime Transport Vol. in tonne miles

3,22,8

5,7

Sources: WTO & Fearnleys

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CONTAINER TRADES - FULL MOVESTABLE 14

WORLD WIDE FLOWS Year T EUs Growth2004 105,0 million 14,6%2005 115,7 million 10,2%2006 (forecast) 127,8 million 10,5%

OTHER TRADE ESTIMAT ESNorth - South vice-versa 20 million TEURegional 45 million TEU

Intra Asia 33-35 million TEU

SELECT ED MAIN TRADES TRANSPACIFIC (*)

Eastbound Westbound Year T EUs Growth T EUs Growth2004 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%NORTHEUROPE & MEDIT ERRANEAN - FAREAST

Eastbound Westbound Year T EUs Growth T EUs Growth2004 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 T EUs Growth T EUs 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%

Source: Drewry Shipping Consultants(*) Including Canada and Mexico

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

RANK OPERATOR TOTALE XISTING CHART ERED ON ORDER2006 T EU SHIPS T EU SHIPS CAPACITY % T EU SHIPS %E XIST

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 employed8 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 NedlloydCMA-CGM includes Delmas Group (OTAL, Setramar), ANL, Feeder Associate System, Cagema, MacAndrewsCSAV includes Norasia, Libra, Montemar, Hansa Star Line andEuroatlantic Container Line (ECL)Evergreen includes Hatsu Marine, Lloyd TriestinoNYK includes Tokyo Senpaku Kaisha (TSK)Zim includes Gold Star Line and Laurel NavigationHamburg-Süd includes Columbus Linie, Aliança, Crowley American Transport,Ellerman and Kien HungHappag-Lloyd includes ex CP-ShipsGrimaldi includes ACL

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

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

M O U P O R T S T A T E

I N D I V I D U A L S H I P C A L L S

I N S P E C T I O N S

I N S P E C T I O N S W I T H

D E F I C I E N C I E S

D E T E N T I O N S

D E T E N T S W I T H R O R E L A T E D

D E F I C I E N C I E S *

% -

I N S P . W I T H D E F I C I E N C I E S

% D

E T A I N E D

% I N

S P E C T E D S H I P C A L L S

( 2 5 %

C O M M I T M E N T )

% I N

S P E C T I O N O F M O U T O T A L

Source: Paris MOU*) Involving responsibility of the Recognised Organisation which has issued the relevant certificate(s).

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WORLD TANKER INCIDENTS BY CAUSE 1978-2005TABLE 17

War1000

800

600

400

200

0

Hull & Machinery

Fire/ Expl

Grounded

Coll/Contact

Msc

2 0 0 5

2 0 0 0

1 9 9 5

1 9 9 0

1 9 8 5

1 9 8 0

Source intertanko

NUMBER OF SPILLS OVER 700 TONNESTABLE 18

19800

5

10

15

20

25

1985 1990 1995 2000 2005

Spills per year

1980-899.3 spills per year

on average1990-99

7.8 spills per yearon average

2000-053.7 spills per year

on average

10 year average

Source: ITOPF

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COMPARISON OF CO2 EMISSIONS BE TWEEN DIFFERENT TRANSPORT MODESTABLE 20

0

100

200

300

400

500

600

700

heavy truckwith trailer cargo vessel

2,000-8,000 dwtcargo vessel

over 8,000 dwt C O

2 ( g

r a m s p e r

t o n n e

/ k i l o m e

t r e )

air freight747-400

1,200 km

flight

Source: NTM (Swedish Network for Transport and theEnvironment)

QUANTITIES OF OIL SPILT TABLE 19

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 20040

50

100

150

200

250

300

350

400

450

500

550

600

650

Khark V80,000 tonnes

Exxon Valdez37,000 tonnes

Erika20,000 tonnes

Prestige63,000 tonnes

ABT Summer260,000 tonnes

Castillio de Bellver252,000 tonnes

( 0 0 0 '

s o

f t

o n n e s

)

Source: ITOPF

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