» PRESS CONFERENCE 04-2 ECSA ANNUAL REPORT 2003-2004 Monday 4 October, 2004 Key points More important role of European shipping in EU and global trades The importance of the EEA (European Economic Area) merchant fleet continued to grow, now representing more than 26 % of the world fleet. This means an increase of more than 50 % compared to 2002. This substantial increase of course includes the fleets of the new EU countries. However, without these fleets the increase still represents a growth of almost 5 %. This ongoing increase is supported by the EU State Aid Guidelines that were extended for another period of 7 years. The fleet controlled by EEA resident shipowners remained more or less stable, representing some 41 % of global merchant shipping. Shipping services are the backbone of trade: - 90 % of European external trade is transported by sea. - Up to 41 % of intra European movements are going by short sea services. - 80 % of world trade is moving by sea. European shipping is heavily involved in both EU internal and external trade movements as well as in cross trades between different continents. Shipping is benefiting of a high cycle at this moment in most sectors. Though some caution is necessary, it is anticipated that this will continue for some time. A strong and competitive European shipping sector is ready to serve European and world trade. European Transport Policy European transport policy covers a wide field and attention can be drawn to quite some points: Liberalisation of port services Industry has for a very long time insisted on further liberalisation of port services. This necessary step is in line with the Lisbon 2000 policy to make the EU the most competitive and efficient economy in the world. It was disappointing to see that, in sharp contrast with this policy, the proposed Directive on market access to port services was rejected in November 2003. Industry hopes that one way or another the process towards full liberalisation of all port services will be enhanced. Short Sea Shipping The promotion of short sea shipping continued successfully in 2003/2004. With a share of up to 41 %, a growth at the same pace as road transport can be noted. The work of the 16 short sea promotion centres, as well as investment by the shipping industry in new tonnage and logistic systems, is the basis of this success. Initiatives such as Marco Polo and the “Motorways of the Sea” can contribute to this growth. However, industry strongly warns against the artificial creation of services with Government support. It would be a wrong step to introduce public service concepts in short sea shipping through “Motorways of the Sea projects”. This would seriously hamper efficiency and create distortion of competition with existing services. European Intermodal Unit Sometimes proposals are made for which it is difficult to find a rationale. An example is the proposal on a European Intermodal Unit (EILU). Already in the consultation process, the very large majority of industry parties expressed support for pallet wide units (containers) that are stackable and interchangeable between the different transport modes. However, it was strongly stressed that such a unit should be based on ISO footprints as valid in ships, ports and handover points. Moreover, such units are available on the market with 40 ft and 45 ft pallet wide containers. Notwithstanding this common advice from industry, the Commission produced a Directive that did not respect the ISO footprint requirement. Helpful suggestions from the European Parliament were not taken on board properly. The industry hopes that this proposed Directive, having no added value since the equipment exists and is intensively used, will be withdrawn or be amended as suggested. EU Competition Rules The application of competition rules on maritime services has been on the agenda for a long time. In the context of the review of Regulation 4056/86 the shipping industry (ECSA/ELAA) has, whilst recognising that the Regulation is up to review, reiterated the necessity of a specific regime for liner shipping. It is hoped that the White Paper that the Commission will issue later this year will take account of this requirement. In their consultation papers and opinions, the Commission has also indicated its wish to lift the exception to the implementing articles of 81/82 for tramp shipping and cabotage services. Taking into account that tramp shipping is terra incognita for many, ECSA had useful workshops with the Commission services to provide some more background on how this important sector works. This was undertaken on the basis of a study on the tramp shipping market produced by Clarkson Research Studies and presented by professor Martin Stopford. In this constructive exercise it was made clear that the tramp market is highly fragmented and very competitive responding to the needs of trade. However, if some cooperative agreements in this sector, such as some bulk pools, would create problems versus the Competition Rules, guidance should be given in order to have legal certainty. This is particularly so since with Regulation 1/2003 notifications are no longer possible as from 1 May 2004. Security The IMO ISPS code has been transferred in EU legislation with Regulation 725/2004. European shipowners have been in the forefront in meeting the deadlines of the code. A joint approach on the Directive on port security was also reached at the Transport Council in June. ECSA is in ongoing contact with the EU Institutions on advance cargo declaration (24 h Rule) and on intermodal security on which detailed suggestions were already made by European Shipowners in October 2003. Safety and Environment The EU discussions and decisions on the aftermath of the Prestige accident contained a serious risk in endangering the fundamental role of the IMO in global maritime security. Eventually the IMO decisions of December 2003 saved the principle. The shipping industry finds it unacceptable that the Greek Captain Mangouras is still kept in custody in Spain almost two years after the accident. Whilst the role of EMSA is becoming more important the Commission has proposed the Maritime Safety Package 2004. While the approach of the package is proactive, evidently further discussion is essential in particular to avoid clashes with international regimes. The same message is valid for environmental issues where agreement on proposals on emissions is in the final stadium. Also the availability of fuel with the suggested sulphur contents should be further investigated as well as the technical means to use fuel of different sulphur contents. The Human factor As social partners ECSA and ETF have been working on joint projects such as the career mapping exercise and guidelines for shipping companies to promote opportunities and diversity in the maritime sector. The discussions in ILO on a Labour Standards Convention that took place in September 2004 have not yet resulted in a positive outcome. It is hoped that the progress made will lead to an overall agreement in time for the Diplomatic Conference in 2006. ECSA strongly advocates that Commission services wait for the final agreement before taking steps in the EU. In the Sectoral Dialogue Committee the above issues have been dealt with as well as the consequences of accession of the new EU countries. Relations with third countries Relations with third countries are of key importance for shipping as a de facto global industry. The implementation of the bilateral maritime agreement between the EU and China has been discussed in an implementation meeting held in November 2003 in Shanghai. A second implementation meeting will take place in November 2004 in Hamburg. Initial discussions on a framework for negotiations of a bilateral maritime agreement with India took place mid September 2004 in New Delhi. Formal negotiations on the basis of the framework will start soonest in Brussels. Whilst ECSA is cooperating with the Commission services in approaches in different countries much attention is also given to the discussions in WTO in particular to the discussions on services. Legal Issues Discussions on legal issues have received more attention during the last year. The key message of the industry here as well is that for a global industry global rules are essential. This philosophy was adhered to in the decisions on Environmental Liability. However, regrettably the same logic was not followed in the discussion process on the Directive for criminal sanctions for ship source pollution. ECSA hopes that for this important file, as well as in the forthcoming discussions on passenger liability (Athens Convention) and compensation for pollution damages (IOPC), the decisions of the EU will fall in line with the agreements reached in IMO. Enlargement - New EU Institutions ECSA was pleased to welcome the Associations of Cyprus, Estonia, Latvia, Lithuania and Poland as new ECSA members at its Board meeting in June 2004. In Malta a shipowners Association is being created. The enlargement of the EU as well as the nomination of a new European Parliament and a new Commission offers new opportunities and challenges. ECSA looks forward to continuing a constructive cooperation with the EU Institutions in this new environment. 4.10.2004