A high tide of new regulations

Marpol 26.8

In 2014, MEPC 66 adopted three resolutions concerning tanker stability. Marpol Annex I – MEPC.248(66), IBC Code - MEPC.250(66), and BCH Code - MEPC.249(66). All three resolutions require new and existing oil and chemical tankers to be fitted with an approved stability instrument capable of verifying compliance with the applicable intact and damage stability requirements.

These new tankers, constructed on or after 1 January 2016, will need to comply on delivery and existing tankers, constructed before 1 January 2016, will need to comply at the first scheduled renewal survey after 1 January 2016 but not later than 1 January 2021.

TMSA

IRClass (the Indian Registry of Shipping) notes that from a regulatory compliance point MSC 428(98) requires cyber risks to be appropriately addressed through ISM. In addition, tankers are required to comply with TMSA requirements. Tanker owners have the advantage that TMSA is more prescriptive and provides a series of requirements. The two significant sections in TMSA 3 on change management at element 7 and cyber security at element 13 provide high-level guidelines.

Tanker owners have the responsibility to carry out in-depth risk analysis to identify risks and define mitigation measures to minimise the exposure of cyber risk to their critical assets, which would address both Flag and TMSA requirements.

The requirements when implemented, address the following major areas:

• Ensuring commitment from senior management and methodology for conducting systematic risk assessment;
• Implementation of controls for normal and emergency situations;
• Methodology for conducting audits in ensuring and improving implementation of identified controls;
• Establishing roles and responsibilities onboard and onshore;
• Establishing procedures for equipment maintenance and change management;
• Process for identifying and implementing initial and periodical training;
• Ensuring easy availability of procedures to crew.

To assist the maritime industry in identification of cyber risks and to design a suitable cyber risk management system, Cyber Safety Guidelines based on IEC 27001, IEC 62443 and industry best practices were developed by IRClass, which also provides gap assessment services for identifying existing gaps in technical and procedural controls.

IRClass has carried out gap assessments of a leading tanker service providers and its findings are categorised in two groups, with one group identifying policies and procedures, while the second group focuses on controls. This has helped the company in addressing onboard cyber risks. The regulation comes into force on 1 January 2021.

“Brexit may be push that sends the remaining shipping expertise to Singapore”

2011 ESP Code

From 1 January 2021, the Enhanced Survey Programme (ESP) Code is replaced with the code in the Programme of Inspections During Surveys of Bulk Carriers and Oil Tankers, 2011 (ESP Code) is amended to match the IACS Unified Resolution (URs). The URs are technical resolutions, which are set, revised, and withdrawn by IACS. URs are classification rules established for the uniform implementation among IACS member societies.

NOx Tier III certification

From 1 January 2021, the Emission Control Area (ECA) regulations on NOx emissions from marine diesel engines become active in the Baltic Sea ECA and the North Sea ECA. Only vessels with an Engine International Air Pollution Prevention (EIAPP) Certificate and the subsequent demonstration of in service compliance in accordance with the requirements of the mandatory regulations 13.8 and 5.3.2 respectively, NOx Technical Code 2008 (resolution MEPC.177(58) as amended by resolution MEPC.251.(66)), and classed as Tier III can operate in the ECAs. Tier II is still allowed outside the ECAs.

California: Oil spill prevention and response act

At a local level, California is dramatically increasing the size of oil spill fines. The governor of California approved an act to amend Section 8670.64 of the Government Code, known as the Lempert-Keene-Seastrand Oil Spill Prevention and Response Act. This requires the administrator for oil spill response, acting at the direction of the Governor, to implement activities relating to oil spill response, including emergency drills and preparedness, and oil spill containment and clean-up.

It also makes it a felony to cause a spill in the waters of California or fail to clean up or stop the spill. In 2020, the level of fines ranges from US$5,000 per day to a maximum of US$500,000 per day.

Under the amendment, a person convicted of violating any of the above prohibited acts shall be subjected to a fine ranging from US$10,000 to US$1,000,000 for each violation, with each day or partial day of a violation being considered a separate violation.

In addition, the legislation allows the court to impose a further US$1,000 fine per gallon of oil spilt in excess of 1,000 gallons.

The Merchant Shipping (Consequential Amendments) (EU Exit) Regulations 2020

Finally, there is the great British gamble of Brexit. For many working and living in the shipbrokers and commodity trading houses in the City of London, Brexit may be push that sends the remaining shipping expertise to Singapore. Shipping has been singled out under the Brexit legislation in the form of the Merchant Shipping (Consequential Amendments) (EU Exit) Regulations 2020. It aims to maintain the status quo, but Hamburg, Copenhagen, Dublin, and Paris (in that order) are attractive alternatives for tanker companies needing a base in the EU.