SWEDEN REPORT In the autumn 2001, Swedish shipping received the good, and eagerly awaited, news that the Swedish Parliament, the Riksdag, and the Government had decided in favour of the net wage model. This model, which is in line with the State Aid Guidelines, brings the competitiveness of Swedish shipping companies up to a level with our neighbouring countries in the EU as regards manning costs. The positive response from shipowners was instant and a number of vessels have been flagged in immediately. This positive trend has continued and it is expected that the Swedish flag will have increased considerably by the end of 2002. The political decisiveness, ensuring a new shipping policy, was thus instrumental in stopping, and reversing, the trend of flagging-out. During the year, the European Commission also presented several documents that are important for the future of shipping in Europe. One of these documents concerned the liberalisation of port services in the EU - where the aims are fully supported by the Swedish Shipowners' Association (SSA). The Swedish shipping industry is actively involved in environmental work. The Board of SSA in October 2001 adopted an ambitious new environment policy. Continuous focus has been given to emissions from ships, where a special study has been undertaking the development of a proposal for an emission trading scheme. On the national level, work continued on the elimination of specifically Swedish rules and regulations, and a dialogue has been opened with concerned administrations. In the area of traffic policy, there was much discussion about shipping dues and what form they should take in the future. The Swedish Shipowners' Association has followed these discussions with great interest and its standpoint is that shipping dues must be reduced and placed in relation to what other modes of transport pay in the form of charges to the State. During the year, the Swedish Freight Transport Delegation presented its report. This is a good report and it supports the Association's ideas about how a future system of dues should be designed. 2001 was the Swedish Shipowners' Association's first year as a dedicated trade association. This role has been both stimulating and interesting. Given the strong focus of SSA on maritime issues internationally and within the EU, it was decided that the Association would open an office in Brussels. This office started operating in March 2002. According to statistics from the Institute of Shipping Analysis in Gothenburg, Swedish Shipping consisted of 570 ships with a total deadweight of 11.06 million tonnes at 31st of December, 2001. The corresponding numbers for December 31st , 2000 were 583 ships and 11.78 million tonnes deadweight. 18 new ships with a total deadweight of 0.9 million tonnes were delivered to Swedish shipowners during 2001. Membership status of the SSA as per 31st December, 2001: 123 shipping companies, together employing 9,300 seafarers and 2,300 shore personnel.