Smooth sailing

Protecting the global regulatory framework for shipping an urgent need

Shipping, as a truly global industry, relies on a comprehensive framework of global regulation to ensure smooth operations and economic efficiency. Imagine a ship embarking on a voyage from Shanghai to San Francisco. For seamless trade and operational efficiency, consistent rules must apply at both ends of the journey. Any deviations would result in chaos and hinder economic progress.

This is why governments must respect the international maritime legal framework and maintain cooperation, regardless of political differences on unrelated matters. In his keynote speech at the Second United Nations Global Sustainable Transport Conference in 2022, President Xi Jinping emphasized the importance of building global sustainable transport partnerships and jointly exploring how to promote global transport governance and deepen global transport cooperation. China actively engages in bodies such as the International Maritime Organization and demonstrates an impressive record of ratifying and enforcing conventions and protocols that promote the safety of life at sea and protect the marine environment.

At the recent 2023 North Bund Forum, Minister of Transport Li Xiaopeng emphasized the importance of practicing the global governance concept of consultation, co-construction and sharing. In particular, he highlighted the continuous strengthening of the "soft connectivity" of international shipping institutional rules and the expansion of international cooperation on a larger scale, broader scope and deeper level.

Over the past 100 years, global legal framework has been collectively agreed upon by the global community through organizations such as the IMO. Yet, there is an increasing trend of politicizing discussions within the IMO, which undermines the spirit of cooperation that has been its strength.

Political alliances, such as the European Union acting as a coordinated block, risk alienating non-EU states and diluting their sense of ownership in IMO decisions. As a result, achieving genuine global consensus on shipping issues becomes increasingly challenging. This trend is detrimental to the industry's progress and compromises the effectiveness of the regulatory framework.

One pressing example is the complex negotiations at the IMO to phase out greenhouse gas emissions from shipping by the mid-century. These discussions are sensitive due to the politics of climate change and the differing positions held by governments outside of the IMO. However, there is an unspoken concern among non-EU governments, including China, regarding the European Union's decision to apply its regional Emissions Trading Scheme to international shipping. This extraterritorial jurisdiction imposes charges on carbon dioxide emissions occurring thousands of miles away from Europe, potentially leading to similar measures by other nations.

The EU's regional ship recycling regulations, which it applies to non-EU flagships calling at European ports, add to the complexity and potential chaos. Moreover, the United Kingdom's adoption of a unilateral law mandating the payment of its national minimum wage to seafarers on non-UK flagships visiting UK ports undermines the authority of international agreements established by the International Labour Organization. This encroachment on flag state rights could set a dangerous precedent, eroding the rights of all flag states, including China, under the United Nations Law of the Sea.

The ramifications of these unilateral actions are significant and call for immediate attention. It is crucial that major shipping flag states worldwide take notice and engage in proactive measures to protect the global regulatory framework for shipping. By doing so, we can ensure the continued safety, efficiency and prosperity of the maritime industry.

The International Chamber of Shipping urges governments to recognize the far-reaching implications of their actions and uphold the principles of global cooperation in shipping. In recognition of China's active engagement in global shipping governance, the ICS announced at the opening ceremony of the North Bund Forum the establishment of its representative office in Shanghai, marking the second global office established by the ICS in China. The first office was established in the Hong Kong Special Administrative Region in November 2019, less than four years ago. These strategic office locations in China demonstrate the ICS's commitment to better listen to the voices of the Chinese shipping industry and support China's participation in global shipping governance. The ICS also participated in the signing ceremony of the United Nations Convention on the Judicial Sales of Ships in Beijing on Sept 5. This convention establishes a harmonized regime for judicial sales, providing protection against the risk of repeated ship arrests under multiple national jurisdictions. It is a testament to China's dedication to upholding the global legal framework for shipping.

Let us preserve the global legal framework that has served us for over a century and work collectively to address challenges while fostering a thriving and sustainable future for the maritime industry.

The author is principal representative of the International Chamber of Shipping (China) Liaison Office. The author contributed this article to China Watch, a think tank powered by China Daily. The views do not necessarily reflect those of China Daily.

Contact the editor at editor@chinawatch.cn.