Liberia hails BWMC amendments as good for shipping and environment

The Liberian Maritime Administration has welcomed an agreement reached by the IMO Marine Environment Protection Committee (MEPC) on an implementation schedule for the Ballast Water Management Convention (BWMC) which broadly incorporates the terms of an amendment initially proposed by Liberia.

It was decided at the 71st session of the MEPC (MEPC 71) in London that ships built after 8 September 2017 should have a ballast water management system (BWMS) installed upon delivery. Existing ships, however, will have until their first or second MARPOL Annex I IOPPC renewal survey after 8 September 2019 to install a BWMS, depending on when the survey occurs.

What is effectively a two-year deferral on the implementation schedule for existing ships will be incorporated in the BWMC as new Regulation B-3, which sets out the timeframe for when ships should install a BWMS. The wording in Paragraph 10, meanwhile, reflects the desire by IMO member states to limit any further decoupling of the MARPOL Annex I IOPP Certificate from other convention certificates before the 8 September 2019 cut-off date.

Alfonso Castillero, Chief Commercial Officer of the Liberian International Ship &Corporate Registry (LISCR), the US-based manager of the Liberian Registry, says, “We want to thank the industry and all member states for the key role they played in securing this agreement. Liberia was one of the first administrations to ratify the convention, and is entirely committed to its effective and smooth implementation. But the existence of important practical and technical considerations compelled it to seek the support of other stakeholders in securing an equitable implementation date for the BWM Convention.

“Liberia began proposing amendments to the convention at earlier sessions of MEPC, in the belief that the proposed implementation schedule was unworkable within the predicted time-frame and given the availability of BWMS. Following last year’s MEPC70 meeting, where no clear decision was taken on the two sets of draft amendments, Liberia initiated discussions with other interested IMO member states and industry organizations to develop a single unified amendment taking into account parts of both drafts.

“Liberia is delighted that MEPC 71 approved the draft amendments, with a view to eventual adoption at MEPC 72. With just two months before the BWMC enters into force, the decision is timely and will ensure that the necessary pieces are in place for shipping and other stakeholders to effectively and smoothly implement the convention, with consequent positive implications for the protection of the marine environment.”


The Liberian Registry is the world’s most technologically advanced maritime administration. It has a long-established track record of combining the highest standards of safety for vessels and crews with the highest levels of responsive and innovative service to owners. Moreover, it has a well-deserved reputation for supporting international legislation designed to maintain and improve the safety and effectiveness of the shipping industry and protection of the marine environment. www.liscr.com

Moore Stephens says shipping will find ways to ride out protracted downturn

International accountant and shipping adviser Moore Stephens says the shipping industry will use a mixture of experience and innovation to navigate what is likely to be another volatile year for the industry in 2017.

Richard Greiner, Moore Stephens Partner, Shipping & Transport, says, “Making predictions about the shipping industry is as volatile an undertaking as the business of shipping itself. Who, for example, predicted that the Baltic Exchange would be sold to Singapore? The same people, presumably, who foretold that Donald Trump would be elected president of the United States, that Britain would vote to leave the European Union, and that Leicester City would win the English Premier League. Yet it all happened in 2016.

“Predicting shipping’s fortunes in 2017 is as precise a science as foretelling the English weather. But some things are at least more likely to happen than not. Oil prices should continue on an upward trend on the strength of the recent OPEC production cuts. Calls for higher levels of ship demolition will increase significantly, although not ship demolition itself. The cost of meeting regulatory requirements will become clearer as the industry and its financiers grapple with the financial consequences of having to burn lower-sulphur bunker fuel whilst ensuring that their ballast water management systems are fit-for-purpose.

“In common with other industries, shipping will be waiting to see whether Brexit really does mean Brexit. Orders will be placed for new ships. If they are not, a number of shipyards will go to the wall. For many, freight rates will continue to struggle to reach the levels required to ensure commercial viability, while consolidation will remain the buzzword in the liner trades.

“If operating costs do not increase, concern will spread about whether quality and safety are being sacrificed. Both traditional and innovative sources of funding will remain accessible to those with sound business plans. And cyber security will move nearer the top of shipping’s list of things to address.

“Confidence in shipping increased steadily for most of 2016, underlining just how robust the industry can be in difficult times. The inherent volatility of the industry will continue throughout 2017, during which time shipping will resort to tried and trusted methods and to fresh innovation alike in an effort to keep its head above water. Shipping will find a way.

“Things that will not happen in 2017 include another major fall in oil prices, and a big increase in hull insurance rates. Leicester City will not win the Premier League.”

Moore Stephens LLP is noted for a number of industry specialisations and is widely acknowledged as a leading shipping, offshore maritime and transport & logistics adviser. Moore Stephens LLP is a member firm of Moore Stephens International Limited, one of the world's leading accounting and consulting associations, with 657 offices of independent member firms in 106 countries, employing 27,613 people and generating revenues in 2015 of $2.7 billion. www.moorestephens.co.uk


For more information:
Richard Greiner
Moore Stephens LLP, London
Tel: +44 (0)20 7334 9191
richard.greiner@moorestephens.com