Consultation outcome

Consultation report: Consultation on the proposal to make the merchant shipping (special measures to enhance maritime safety) regulations 2024

Updated 29 January 2024

Introduction

The Maritime and Coastguard Agency (MCA), an executive Agency of the Department for Transport (DfT), carried out a public consultation on the proposed statutory instrument, the Merchant Shipping (Special Measures to Enhance Maritime Safety) Regulations 2024, regarding four specific measures to enhance the safety of ships. It is proposed that these measures, which are obligations contained in Chapter XI-1 of the Annex to the International Convention for the Safety of Life at Sea, 1974 (“SOLAS” or “the Convention”), be put into law by way of the proposed Regulations. The consultation was published on 15 September 2023 on GOV.UK and notifications of the consultation were sent to marine industry stakeholders, including the Devolved Administrations of Scotland, Wales and Northern Ireland, Red Ensign Group Registries, Trade Unions, operators of passenger ships and operators of cargo ships of 300 gross tons and over and Class Associations. The consultation was also promoted on social media platforms and a press release was issued.

Consultees were invited to comment on any aspect of this consultation; however, they were specifically invited to respond to the consultation questions in the published document.

1. Key Findings

1.1 Introduction

1.1.1 The UK has an obligation in international law, as a signatory to SOLAS, to keep domestic law in line with the updates to the Convention and any associated Codes. The UK is behind with implementing amendments to Chapter XI-1 of the International Convention for the Safety of Life at Sea (“SOLAS” or “the Convention”) into UK law.

1.1.2 The changes that the Merchant Shipping (Special Measures to Enhance Maritime Safety) Regulations 2024 (“the 2024 Regulations”) will introduce are requirements for: 1) a ship identification number, 2) a company and registered owner number, 3) a continuous synopsis record, and 4) the requirement for oil tankers to be surveyed in accordance with the International Code on the Enhanced Programme of Inspections during surveys of Bulk Carriers and Oil Tankers, 2011 (“the ESP Code”).

1.1.3 It is acknowledged that the fraudulent registration of ships, proliferation of fraudulent registries and related deceptive shipping practices pose a serious threat to the safety and security of international shipping, including the safety and well-being of the crew, and to the protection of the environment, and can facilitate illicit maritime trafficking and the evasion of sanctions.  The IMO Ship Identification Number is unique to the ship and remains with the ship for the whole of its life. Similarly, the IMO unique Company and Registered Owner Identification Number is unique to the company and owner. Therefore, assigning and maintaining these schemes for ships, companies and owners improves the safety and security of the maritime industry.

1.1.4 It is proposed to implement the following requirements of SOLAS Chapter XI-1 are implemented by way of the 2024 Regulations.

Regulation 2 – enhanced survey requirements for oil tankers and bulk carriers  

The requirement for (seagoing) bulk carriers of 500 gross tons and above to be surveyed in accordance with the International Code on the Enhanced Programme of Inspections during surveys of Bulk Carriers and Oil Tankers, 2011 (“the ESP Code”) is contained in the Merchant Shipping (Additional Safety Measures for Bulk Carriers) Regulations 2022 (SI 2022/1218).  The requirement for oil tankers of the same size (that is, those on international voyages) to be surveyed in accordance with the ESP Code will be implemented by way of amendments to the Merchant Shipping (Survey and Certification) Regulations 2015 (SI 2015/508) and those amendments will be made by the proposed Regulations.

Regulation 3 – Ship Identification Number

This regulation requires certain ships to have an IMO number and applies to all passenger ships of 100 gross tons and upwards engaged on international voyages and to all cargo ships of 300 gross tons and upwards engaged on international voyages. Additionally, this requirement applies to the following UK ships engaged on domestic voyages:

• Class A passenger ships;

• Class B passenger ships certified to carry more than 250 passengers; and

• tankers which operate at sea.

The proposed Regulations make it a requirement on the owner and operator of a ship, as well as on the master, to ensure that an IMO number is obtained for a ship, as well as to ensure that the number is inserted in the ship’s certificates, and therefore not to operate the ship without this number (see regulation 7(1) of the 2024 Regulations).

Regulation 3-1 Company and Registered Owner Identification Number 

Regulation 3-1 requires companies and registered owners of certain ships to have an identification number. The requirement applies to companies operating, and registered owners of, all passenger ships engaged oninternational voyages and to all cargo ships of 500 gross tons and above engaged on international voyages. Additionally, this requirement applies to the following UK ships engaged on domestic voyages:  

• Class A passenger ships;

• Class B passenger ships certified to carry more than 250 passengers; and

• tankers (of 500 gross tons or more) which operate at sea.

The proposed Regulations make it a requirement on the Company and owner of a ship to obtain this number, as well as to ensure that the number is inserted in the ship’s certificates, and therefore not to operate the ship without this number (see regulation 8(1) of the 2024 Regulations).

Regulation 5 – Continuous Synopsis Record

Regulation 5 applies to all passenger ships engaged on international voyages and to all cargo ships of 500 gross tons and above engaged on international voyages. Regulation 9 of the 2024 Regulations incorporates this international requirement into UK law.

The Continuous Synopsis Record (CSR) is a form of logbook that stays with the ship for its whole life and records all changes of owner, flag, name, Class, ISM details etc. The Company, owner and master of a ship must ensure that a copy of the whole CSR is kept on board the ship, even when it transfers to another flag State, is sold to another owner, is taken over by another bareboat charter, or another company assumes the responsibility of the ship operation.  The CSR helps to prevent fraud and enhances safety by way of a complete ship record.  

1.1.5 The proposed Regulations contain an ambulatory reference provision to allow all references to SOLAS in the Regulations to be read as the most up to date requirements.  This means that any future updates made to the Convention, and which are referenced in the 2024 Regulations, will be given direct effect in the UK. The ambulatory reference provision will transpose future international requirements without gold plating or adding any additional obligations, making the process of implementing future amendments to the Convention into UK law a more efficient and cost-effective process for the UK Government, taxpayer and businesses.

Consultation

1.1.6 The consultation was carried out between 15 September 2023 and 10 November 2023 and can be found at: www.Gov.uk

1.1.7 A total of two responses were received.  Both respondents noted that operators currently comply with the measures, although one was of the view that they disproportionately affect smaller businesses; the MCA response explained the safety case for not differentiating between smaller and larger businesses. One respondent noted that the penalties were quite severe; in response, it was explained by MCA that the penalties are in line with other merchant shipping legislation, that they are aimed primarily at ships operating under a false flag, including fleets concealing identification numbers in order to break sanctions, and that the penalties therefore provide robust deterrents to such operations. Not all questions posed in the Consultation Document were answered. The answers given have been fully and carefully considered with no substantive changes made to the Regulations or associated documentation.  However, minor drafting changes have been made to the Regulations in order to improve clarity.

This consultation has been completed in order to ensure best practice has been followed and provide the opportunity for feedback from the entire maritime industry.

2. Summary of responses

2.1 Consultees

2.1.1 The first respondent provided input as an individual as well as representative of an organisation representing oneself as seafarer, ship operator and ship owner of a large business (over 250 staff). The second respondent is a ship operator representing the views of the organisation, which is a large business (over 250 staff).

2.2 Responses

Question 1

Is the assumption that owners and operators of ships engaged on international voyages already have IMO identification numbers assigned (as required by SOLAS Chapter XI-1) correct?

Responses

Both respondents confirmed that owners and operators of ships engaged on international voyages have assigned IMO identification numbers. One of the respondents further explained that the assignment of the IMO identification number has been in place for quite some time.

Government Comments

The Government thanks the respondents for their comments.

Question 2

Is the assumption that Class A, Class B passenger ship and tanker vessel operators are already familiar with these requirements accurate?

Responses

The respondents confirmed this assumption was accurate, while one respondent mentioned that the operators of Class A, Class B passenger ship and tanker vessels will probably be familiar with these requirements.

Government Comments

The Government thanks the respondents for their comments.

Question 3

Do you believe that these international requirements impact disproportionately small and micro businesses?

Responses

The respondents provided mixed comments. One respondent mentioned that these international requirements will not disproportionately impact small and micro businesses, while the other respondent disagreed.

Government Comments

To minimise the impact of the requirements on small businesses (employing up to 50 people), the Government’s approach is to analyse the companies owning United Kingdom registered ships in order to determine any impact. The vast majority of companies owning United Kingdom registered ships are large businesses, or subsidiaries of multinational companies.

The basis for the final decision on what action to take to assist small businesses is that the Chapter XI-1 requirements are concerned with safety measures for ships. In the interests of safety, it is not possible to justify different requirements just because a company has fewer employees. The benefits of lives potentially saved, even amongst smaller operators, greatly outweigh the impact. All operators are expected to comply with the same standards and, therefore, there will be no disproportionate impact upon one smaller business relative to another.

The Government does not believe that any of these responses have highlighted any issues where small or micro businesses are prejudiced.

Question 4

Do you have any experience of the time it takes to complete the different forms required in order to comply with these international requirements?

Responses

One respondent commented ‘yes’ without providing any further details on the time it takes. Other respondent did not answer the question.

Government Comments

The Government thanks the respondents for their comments.

Question 5

Do you have estimates available for the maintenance costs related to the updating of the Continuous Synopsis Record? How long and how often are the updates needed?

Responses

One respondent commented that the maintenance costs incurred in relation to the updating of the Continuous Synopsis Record were not available but did comment that the updating of the fleet could be done as a block lot. The other respondent pointed that it could take hours and invariably involves the operator chasing up the flag State/Recognised Organisation.  It was commented that management costs are in the hundreds and the flag authority should know the requirements for updates.

Government Comments

The Government thanks the respondents for their comments. The CSR is a statutory document and the accuracy of the content of the CSR is of the utmost important for the operator as well as the flag State. It is also acknowledged that the designated IMO process for filling in different forms may consume hours of management time. The Government would like to assure all applicants that the MCA processes CSR amendment requests expeditiously. The amendment of the CSR is not periodical as it depends on when events occur, such as a change of management, owner, classification society, flag etc. Therefore, each vessel is subject to its own unique circumstances and is dependent on management policies and decisions. The objective of the consultation question was to capture the experience and nominal update frequency of changes to a company’s fleets in the second part of the question. 

Question 6

Do you agree that implementation of the international rules in SOLAS Chapter XI-1 relating to identification numbers and the CSR will improve safety of shipping in the UK?

Responses

One respondent answered in the negative without providing any further details. However, the other respondent agreed that the ship identification number will improve safety, but other measures may not and the implementation of the CSR requirement is another level of administration/bureaucracy.

Government Comments

It is acknowledged that the fraudulent registration of ships, proliferation of fraudulent registries and related deceptive shipping practices pose a serious threat to the safety and security of international shipping, including the safety and well-being of the crew, and to the protection of the environment, and can facilitate illicit maritime trafficking and the evasion of sanctions.  The IMO Ship Identification Number is unique to the ship and remains with the ship for the whole of its life. Similarly, the IMO unique Company and Registered Owner Identification Number is unique to the company and owner. Therefore, assigning and maintaining these schemes for ships, companies and owners improves the safety and security of the maritime industry. 

Maintaining and exchanging information between stakeholders through bilateral and or multilateral mechanisms is very important for ship safety, security, pollution prevention and crew welfare. A unique number for each ship gives a superior framework and capacity to obtain and use ship data, i.e., port State control (PSC) regions can readily identify a ship and company/owner regardless of name, operator, flag, and so on

The proposed Regulations will ensure that the UK is fully compliant with all the international requirements and that these are enforceable.  This ensures that all ships are maintained to a unified standard, and it will improve the safety, security and pollution prevention capabilities of ships.

Question 7

Do you agree that implementation of the ESP Code for oil tankers will enhance safety of shipping in the UK?

Responses

One respondent answered in the negative without providing any further details. However, the other respondent agreed that it will hopefully enhance safety of the shipping in UK by implementation of the ESP Code survey requirements for oil tankers.

Government Comments

The Government thanks the respondents for their comments. The Regulations contain improved standards for oil tankers by requiring that these ships be surveyed in accordance with the ESP Code (which contains requirements for oil tankers which are additional to the standard survey requirements for other cargo ships). This enhanced inspection is undertaken in parallel to the ship’s standard survey with the objective of enhancing maritime safety and preventing pollution.

Question 8

Do you have any additional comments to add to the response?

Responses

One respondent had additional comments regarding penalties and on the timing of introducing the requirement for maintaining the CSR document. The respondent commented that the penalties seemed a bit heavy handed, and that the formalised requirements seemed a bit behind the times. The respondent went on to say that it was a pity that the requirement to maintain all CSRs on board a vessel was not clearly promulgated at the time of implementation of the ISPS Code* and opined that a joining Master cannot be held responsible for actions of a predecessor.

Government Comments

The above response notes the delayed implementation of these SOLAS requirements into UK law. There has been a backlog of implementation of international maritime convention requirements and this instrument is one of the final steps in removing that backlog. However, the MCA has always provided guidance on the requirements in the form of a Marine Guidance Note or equivalent arrangements.

With reference to the proposed penalties in the 2024 Regulations, the reasoning behind these penalties is explained below. 

• There are 13 offences, each attracting a prescribed penalty, covering three areas: IMO ship identification number, Company and shipowner IMO number, and Continuous Synopsis Record (CSR). These are serious offences carried out by operators seeking to conceal a ship’s identity and avoid detection when conducting unlawful activities.

• The penalties are in line with other merchant shipping legislation implementing SOLAS.

• Abuse of the IMO ship identification scheme, CSR, Company/owner IMO number and ships operating under a false flag are serious matters believed to be undertaken by a small number of operators worldwide. The criminal offences are targeted at those operators and will not impact those operators who are compliant.

• Concealment of an IMO ship identification number will almost certainly be linked to serious fraudulent activity at sea.  The so called “dark fleet” comprises ships concealing their identification numbers in order to break sanctions.

• These dark operations to circumnavigate sanctions are considered to be a serious threat to the safety and security of the international maritime fleet.

• It is critical to have clear enforcement powers in the Regulations to provide robust deterrents.

3. Next steps

3.1 What happens next

3.1.1 The Government will finalise the Regulations with a view to bringing them into force during March 2024.

3.2 Additional information

3.2.1 The Government would like to take this opportunity to thank all who responded to this consultation.