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Archive for January, 2008

Total Oil Group undecided on Erika appeal

January 25th, 2008

By Andrew Spurrier in Paris Thursday 17 January 2008

THE Total oil group has stopped short of announcing an appeal against its condemnation in the Erika trial for causing pollution, indicating only that it intends to make use of the 10 days allowed it to come to a decision. 

It claimed that there were “numerous grounds” for appeal against yesterday’s verdict from the Paris Tribunal de Grande Instance but gave the impression that it might forgo an appeal in an effort to appease French public opinion. 

The oil group is widely seen by the French public as the principal instigator of the pollution disaster provoked by the break-up and sinking of the tanker off the Brittany coast in December, 1999. 

Apart from the €375,000 ($548,000) fine imposed on it by the trial judge for pollution, Total has been ordered to share with classification society Rina, Erika owner Giuseppe Savarese and technical manager Antonio Pollara damages totalling €192m. 

It said afterwards that it was “disappointed” by the judgment, claiming that the court had accepted that the direct cause of the sinking was outside its control. 

Total said it was pleased, however, with the acquittal of shipping manager Bertrand Thouilin, the last employee facing charges, and with the acquittal of Total itself on the charge of recklessly endangering human life. 

It was critical of the trial judge’s finding that it had failed to exercise due caution in its inspection and vetting of the 25-year-old tanker. 

It found it hard to understand how it could be found guilty for shortcomings in a procedure which it had introduced voluntarily to improve its shipping safety standards. 

And it warned that the court’s judgment could have an adverse effect on shipping safety in going against the generally accepted interpretation of international maritime law that charterers cannot be held responsible for the structural state of vessels which carry their cargoes. “By assigning liability to Total,” the oil group said, “the court’s verdict could create confusion concerning the responsibilities of the players and have the contradictory effect of making shipping less safe.” 

The French shipowners’ organisation Armateurs de France congratulated the court on its condemnation of Messrs Savarese and Pollara and Rina but made no mention of Total. 

“The owner, his technical manager and the classification society could not be ignorant of the ship’s grave structural problem and that it was not up to standard,” it said. “In these conditions one can only rejoice at their condemnation. It is exemplary for the improvement of our profession.” 

The organisation expressed reservations, however, about the compensation, and in particular the award for the first time in France of damages for general environmental as opposed to specific property damage. 

Noting that compensation payments had already been made by the International Oil Pollution Compensation Fund, it said that it was not opposed to the payment of additional compensation for environmental damage. 

“But should this notion not be defined in its principle and its modalities by the legislator (at international level) rather than by a court?” 

There were no such reservations on the part of environmental organisations or the local authorities along the 400 km stretch of the French Atlantic coast polluted by the Erika’s heavy fuel oil cargo. 

They generally welcomed the court’s verdict and, in particular, the condemnation of Total. 

The only reservations most of them had were over the size of the damages award which fell a long way short of the €500m-€1bn they had been hoping for. 

“We hope this judgment will become jurisprudence and snowball throughout the world,” said Greenpeace France. 

“International law should be modified to take account of environmental damage. Maritime law, too, should be reformed so that the present system of encouragement of charterers to be irresponsible is rendered impossible.” 

Another environmental defence organisation, Robin des Bois, hailed the outcome as very positive.
“This judgment in first instance renders fragile the strategy of dilution of responsibilities followed by the different players in international maritime transport and should, if it is definitive, encourage them to greater rigour in the choice and operation of ships,” it said. 

But it took a negative view of the level of damages awarded for environmental damage, which it estimated at €1.3m out of the total €192m awarded. 

It said that the negative effects of the pollution on plant, bird and animal life, as well as on the marine food chain and fish stocks, had been underestimated if not forgotten. 

“The sea has been sold off cheap,” it claimed. “It is the sales season.” It also questioned the court president’s affirmation that the effects of pollution from the Erika had lasted two years. It said it had been established that, 20 years after the Exxon Valdez oil spill, several species of birds, shellfish, fish and mammals had still to recover their pre-casualty status. 

As a result, it said, its principal claim that the guilty parties should be ordered to finance the biological monitoring of the effects of pollution from the Erika until 2019 had not been taken into account.

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Strikes in Greek Ports

January 22nd, 2008
Recent strikes in the dockworking industry in Greece are causing much havoc. It is this right which allows a worker to establish his rights at law by increasing his bargaining power when all else fails.

The following interesting article shows the economically dangerous situation triggered by the recent strikes in Greece: one must pay attention to the manner of strikes, because once there is a right (the right to strike) there is potential to abuse that right.

Dockworkers seem to have a characteristic history of striking, causing ports to come to a standstill. However their conditions are not always the best – indeed they often leave much to be desired. There is much to be said about their employment rights. however, when they strike, this can cause damage to the export and import of a country, as well as to the shipping lines intending to use such ports.

http://www.hellenicshippingnews.com/index.php?mod=article&cat=Topstory&article=7761

 
Export trade of Hellas was negatively affected by the ongoing mobilisations by dockworkers, Athens Chamber of Commerce and Industry (EBEA) president Constantine Michalos, in an exclusive interview with Athens News Agency. Although no official data has yet been released, a negative trend is already evident. Should the continuing work disputes surrounding the country’s two major ports, Piraeus and Thessalonica,  persist - as dockworkers have warned - the negative effects on the country’s economy are expected to intensify. Michalos said that EBEA had met with representatives of the dockworkers, with their Federation, and made it clear that all the sides involved were steadfast against the mobilisations, despite the initial reservations of the business world to the first privatisation plan tabled by the preceding Merchant Marine ministry leadership, adding that there was no justification today. EBEA, he continued, believed that there was no reason today for the strike actions to continue, and warned that, if the labour action continued past this current week, many problems would be created in the exports and imports sector.
The difference with the almost two-month strikes which occurred at the end of 2006 on the same matter, is that this time around, the country’s public opinion is less keen on agreeing with the dockworkers’ stance on the future status of the ports. Although the government has clarified that its objective is not to privatize the ports, but to modernize their infrastructures and container handling perfromance by means of a 30-year concession period, the dockworkers continue to react fiercly against such a case, worried that jobs are at stake. Last week’s remarks made by George Voulgarakis, Minister of Mercantile Shipping on the matter, suggested that no jobs will be threatened by the ongoing process. But the workers will continue to abstain from work on weekends at least until the end of the month, with the decision on potentially new 24-hour strikes expected to be made at the same time. That said, the government is expected to release the much anticipated inviting text on the awarding process competition by Friday. The first offers should be expected until the 18th of March. The second phase will include the evaluation of the economic offers of the companies.
Cosco and Hutchison are interested for Piraeus, with the Chinese conglomerate having repeatedly expressed its interest on the port’s container handling operations. They regard Hellas as a gateway to the broader Balcans area. Hutchinson on the other hand is also very interested in Piraeus, but also for Thessalonica port, already operating 46 ports in 23 countries worldwide. Another interested party is Dubai Ports World, with APM Terminals, a unit of AP-Moeller Maersk recently adding itself on the list, depending on the terms which will be set by the Ministry.
Besides port operators, the largest container shipping lines are also among the list of interested parties, but their participation in the awarding process is subject to the final text and its terms. Israel’s ZIM Lines, Sinotrans, Evergreen and MSC (Mediterannean Shipping  Company) are also among those interested, according to some sources.

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I.M.L.I. – one year on

January 22nd, 2008

I distinctly remember being at IMLI just one year ago, preparing a legislative drafting project and my dissertation.

‘IMLI’ stands for International Maritime Law Institute, which is the brainchild of the International Maritime Organisation and is set up to train professionals all over the world in the rule of maritime law. The motto is: Safer Shipping on Cleaner Oceans. (www.imli.org)

The course is a full time one, so I had quite a task to juggle work and study. Luckily, Malta being a maritime hub, one tends to be familiar with certain issues from undergrad school.

The European Commission is in the process of working on its policies concerning EC Maritime Law, and this is not a day too early. Indeed, for many years there has been a debate as to whether the EC should in fact be a full member of the IMO, which is an international organisation, or whether it should continue to hold observer status.

The particularity of EC law is its supremacy over the Member States’ national law. Thus, a Member State is not free, in an IMO forum, to vote in favour of anything that has already been legislated upon by the EC. The Community is one entire landmass, making a coordinated approach which, on the other hand, cannot be achieved without supremacy of EC law. The Community institutions provide a forum for debate among the Member States at European level, which can then present a single front via the European Commission in sessions of other international organisations.

Once the EC takes any steps affecting maritime law, the Member States will no longer be able to take any individual contrary votes at international level. This is, for example, particularly problematic in the case of liner conferences. In September 2006, the European Commission issued a regulation to withdraw the block exemption from Articles 81 and 82 of the EC Treaty in favour of liner conferences. The liner industry has, for years and years, operated by means of liner conferences in order, they claim, to maximise efficiencies, time slots, capacity and so on. If these are now liable to be found contrary to the EC Treaty, and therefore liable to be fined heavily, the Regulation could well be set to change the way that liner shipping works. Liner shipping conferences operate worldwide, but the fact that they have a base, branch or simply that they affect anything in, the EU means that the Commission will investigate and – if necessary fine the parties.

We have yet to see what changes the new regulation will bring about. Liner Conferences have strongly protested against this move, but the Commission has been adamant.

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