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WWL’s Marine Environment ClubLondon 6 February 2008

Truth & perception:

Two challenges for the shipping & logistics sector

Dr Simon Cripps

Director – WWF International Marine Programme

Jessica Battle – High Seas Communications Officer

Celia Marsh – Corporate Reporting Specialist

www.panda.org scripps@wwfint.org

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The shipping conundrum

The shipping industry has two challenges:

• Mitigating the impacts – the truth

• Reducing the high profile risks - perception

How can the sector make the most difference?

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Contents

1. Threats to the oceans

2. Marine logistics – WWF’s expectations

3. Is the sector suffering because of the bad guys and accidents?

4. Conclusions

• Successes of the WWF-WWL high seas programme

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The four biggest threats to the oceans

Overfishing, pollution, climate change, alien species (ref. IMO)

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Overfishing

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Bycatch & IUU

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Global warming

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Waste & coastal development

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Threats to sensitive and important areas

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The common cause: human activity

Fishing

Petroleum

Tourism

Shipping

Aquaculture

Investment

Land-based pollution

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The seas are in a crisis

30 per cent decline from 1970 - 2000.

WWF is one the few organisations that can and is reversing the decline

To do that we have to work from ecosystems through managers, governments, various sectors, retailers to markets and consumers

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The world’s wild west

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Is the shipping sector the problem or the solution for this crisis in the oceans?

Good companies should be looking to reduce the damage they cause and the risks of such damage occurring

Better companies should be taking responsibility for the environment they’re dependant on

Bad companies that damage the environment & give the industry a bad name need to find it too expensive to operate outside the rules

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Marine logistics – WWF’s expectations12 steps to heaven

1. Ship design

2. Fuel usage

3. Shipping routes

4. Transport efficiency

5. Emissions to air

6. Emissions to sea water: ballast and bilge management

7. Oil spills: accidental and incidental

8. Waste treatment / recycling

9. Noise

10. Use of chemicals and other raw materials

11. Ship recycling

12. Reporting - transparency and improvement

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1. Ship design

Direct and indirect environmental impacts - efficiency of transport and preventing potential environmental disasters

• Double hull construction with in board located fuel tanks,

• Enhanced propulsion systems which have proven fuel consumption benefits

• Large ships which can carry more load more efficiently ?

• Deck design for higher load efficiencies

• Technologies to reduce oily discharge/sludge

• Compliance with Det Norske Veritas’ Clean Class notation.(Reference 3)

• Green Passports (meet IMO guidelines on ship recycling)

• Investment in “next generation concept ships”

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2. Fuel and oil usage

• WWL since 2004 only used fuel with a maximum sulphur content of 1.5% instead of the global average of 2.7%

• At berth, most WWL vessels run their auxiliary engines (power generators) on marine diesel oil (MDO) - bunker fuel contains up to 5,000 times more sulphur than diesel

• WWL monitor speed (optimises fuel use)

• Uses biodegradable oils in 4 vessels

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3. Shipping routes

All shipping companies to use shipping routes which respect particularly environmentally sensitive high sea areas

• Additionally WWL & WWF high seas programme won IMO approval to establish mandatory ship routing and expanded shipping lanes along northern coast of Norway avoiding highly sensitive waters

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4. Transport efficiency

Shipping companies should have a policy and plan to maximise load efficiencies, with evidence to support it

• There are a wide range of measures possible to increase the loading efficiencies on ships allowing more to be transported at a time

• This should be reported on

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5. Emissions to air

All companies should demonstrate a policy and action plan to reduce/eliminate emissions to air & their compliance to international conventions

• In EU, shipping responsible for almost a quarter of total emissions of SO2 and NOx

• Helcom: shipping also contributing to the emissions of CO2, ozone-depleting substances & volatile organic compounds

• Annex VI of MARPOL 73/78 on "Regulations for the Prevention of Air Pollution from Ships". Annex VI covers ozone-depleting substances, nitrogen oxides (NOx), sulphur oxides (SOx) and volatile organic compounds (VOC).

• IMO guidelines (adopted in July 2005) require CO2

monitoring per unit of ship transport

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6. Emissions to sea water:ballast and bilge water

All companies state full commitment to the IMO ballast water management convention and bilge water management regulations & show how the requirements are implemented

• Ballast: UN: invasive marine species from ships’ ballast water, 1 of 4 greatest threats to the world’s oceans. IMO’sBallast Water Management Convention includes a legal requirement to treat ballast water & sediments before discharge

• Bilge water: IMO rules for bilge water cleaning such as the MEPC 107/ 49. Includes requirement that approved treatment systems can demonstrably clean bilge water of emulsions, heavy fuel oil & diesel oil

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7. Oil spills: Accidental and Incidental

Shipping companies have a zero oil spill policy and target for both major and incidental oil spills. Companies should demonstrate actions which fulfil this

• European Environment Agency: large accidental oil spills account for ca. 10–15 % of all oil that enters the ocean world-wide every year

• Grounding 44 %; fire/explosion 27 %; hull failure 15 %; collision 13 %

• ‘Incidental’ oil spills include from hull orequipment leaks, deballasting and tank-cleaning

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8. Waste treatment

Ships should have a no over-board waste policy and commit to IMO/Marpol and local port regulations

All recyclable materials should be recycled on shore

www.coastandocean.org

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9. Noise

Shipping companies have a policy to take noise into consideration with ship design. Shipping companies to work with the IMO and other shipping companies to address the problems of non regulation here

• Shipping noise now dominates the background noise over the frequency ranges (20Hz – 300Hz) throughout the oceans

• These frequencies are also used by many species of whale and particularly the large baleen whales

• There is currently no regulation on underwater noise

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10. Use of chemicals and other raw materials

Shipping companies state compliance to the International Convention on the control of harmful Anti-fouling systems on all ships and ban specifically TBT

Shipping companies should as a policy use sustainable sourced, eco friendly raw materials on board ships including: chemicals, wood products engine oils (bio-degradable grades), etc

The 2003 Group The 2003 Group

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11. Ship recycling

Shipping companies to attain green passports for all ships

• Green passports are documents that ensure the ships meet IMO guidelines on ship recycling which accompanies the ship through its lifetime

• Provides information on materials known to be potentially hazardous utilised in the construction of the ship, its equipment and systems

• Particularly a social issue associated with work forces in India and Bangladesh

www.greenpeace.org.uk

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12. Reporting- transparency and improvement

WWF’s ‘fundamental reporting principals’

• Compliance with international laws and international conventions

• Commitment to sustainability

• Continual improvement

• Co-operation with stakeholders

• Community , interaction/investment in local /international communities

• Credibility/transparency

• Communication - transparency

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Is the sector suffering because of the bad guys and accidents?

• IUU fishing vessels

• Lack of beneficial owners

• High profile wrecks

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Why is IUU fishing damaging for the shipping industry?

Seafarers employment and safety IMO/ITF

Maritime security UNICPOLOS/IMO

No port controls

Vessels damage the environment

Transport of goods without

oversight

No control routines

No genuine link

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Beneficial owners – lack of transparency

• A cross-sectoral problem

• Bad for crews, bad for the industry

• IUU enabling mechanism; hiding the law breakers

• Maritime security

• WWF to expose and address the failure of ‘flag of convenience’ states to identify beneficial owners

• Through registers, ITF, IMO, UNICPOLOS

• Seeks to engage responsible shipping companies (such as WWL)

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But let’s not forget the perception………

5 high profile shipwrecks in the last months in the UK alone

Accidents involving foreign commercial vessels in UK waters rose from 85 in 2003 to 150 in 2006 (UK Marine Accident Investigation Branch)

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Invasive species threat

1st Feb Spanish trawler ran onshore at St Kilda, Outer Hebrides

World Heritage Site

90% of the Europe’s Leach’s storm petrels and the world’s largest populations of gannets and puffins

“It would only take one pregnant

female rat to get ashore to

devastate the bird populations,”

St Kilda caretaker said

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Timber on the beach

15th Jan Greek-registered Ice Prince sank 42km off Dorset after a storm

5,258t sawn timber

423t fuel oil

123t marine diesel oil

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Cargo ship hits waves and headlines

1st Feb, the Horncliff (FoC Liberia)

13,000t cargo ship in force-10 storm off the Isles of Scilly

Giant waves washed dozens

of containers overboard

Captain injured, airlifted to

hospital

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Napoli

• January 2007 MSC Napoli, SW England

• More than 200 containers containing hazardous chemicals slid into sea

• Motorbikes, car parts and other goods also slid off the ship —and many containers washed ashore, setting off massive beachcombing

• Still hitting the headlines in 2008

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In the sensitive Arctic

Many examples including:

“Exxon Valdez”, crude oil tanker, Alaska 1989 aground, 37,000 tonnes of oil spilt

“Maxim Gorkiy”, cruise vessel, Svalbard 1989 hit an iceberg, damaged, hundreds evacuated

“Selendang”, bulk carrier, Alaska 2004 aground, broke in two M/S ”Selendang”, Alaska 2004

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Conclusions

Challenges for the responsible shipping industry:

• A range of issues that a broader cross-section of the industry needs to deal with as part of business – NOx, SOx, CO2 etc.

• IUU fishing & bad companies are a problem for the whole industry

• Wrecks & maritime safety raise the profile on the whole industry

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WWF’s high-seas governance programme is sponsored by:

www.panda.orgwww.2wglobal.com

www.wwf.no

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Successes of the WWL-WWF High seas programme

• UNICPOLOS – EBM sole topic on agenda 2006, WWF only NGO invited to present

• UN agreement on banning destructive bottom trawling in sensitive areas

• Bottom trawling banned in South Pacific RFMO – nearly 25% of the high seas

• Port State Agreement under way in FAO and agreed at NEAFC 2007 – lead to closing of another entry of illegally caught fish

• Norway ratified IMO Ballast Water Convention – WWF participates in working groups to prepare national legislation

• IMO Antifouling Systems Convention will come into force in 2008 after Panama ratified – after 10 years of WWF lobbying through f ex the 2003 Group

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More successes

• Ministerially-led High Seas Task Force – WWF a member & ensured latest thinking on sustainable oceans management was included

• HSTF follow up – Chatham House process WWF continues to lobby for RFMO reform: UK takes tough stance on IUU

• ITF/WWF IUU report launched with Australian Fisheries Minister at CCAMLR annual meeting – huge media

• North Sea Ministerial on shipping and fisheries 2006 – WWF pushed for ballast water and antifouling, led to Clean Ship concept adoption

• WWF contributed to reduce IUU for cod in the Barents Sea, through report, media & consumer pressure

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And more…

• L20 2006 - WWF invited by the prime minister of Canada to write a communiqué on oceans governance for a meeting of 20 of the world's prime ministers

• UN Fish Stock Agreement Review Conference 2006 – WWF Follow the Leader report influenced debate on RFMO reform

• South Pacific RFMO – WWF takes part in preparatory conferences, ensuring this new RFMO is best practice

• European fish processors take action to avoid IUU fish – after WWF lobbying

• First ever tuna RFMO meeting 2007 – WWF forged ties with industry to be used when lobbying tuna RFMOs for reform

• IMO push ship routes further from Norwegian coast in Barents Sea