Ship Managers Call For Changes In IMO’s Net-Zero Framework To Avoid Legal Issues

Shipping — Image for representation purposes only

Ship managers have raised concerns about the International Maritime Organisation’s (IMO) net-zero framework, warning that its current form could lead to legal challenges.

The international association InterManager, representing ship managers globally, has submitted a proposal to the upcoming Marine Environment Protection Committee (MEPC83) meeting, urging modifications to the framework to ensure its fairness and effectiveness.

The submission points out a major issue with the IMO’s greenhouse gas (GHG) proposal, stating that it does not consider the role of third-party International Safety Management (ISM) Managers.

The association states that about 20% of the global fleet is managed by such third-party technical ship managers. However, the current framework does not account for their limited control over a ship’s emissions.

Ship managers do not influence key factors affecting a vessel’s GHG intensity. They are not involved in choosing engines, installing energy-efficient technologies like solar panels or wind-assisted propulsion, or selecting fuels.

These decisions are made by shipowners, often in agreement with charterers, through charter party contracts that also define the ship’s speed and fuel consumption.

Despite their lack of decision-making power, the draft amendments to MARPOL Annex VI propose making ship managers solely responsible for penalties related to GHG emissions.

InterManager argues that this approach is factually incorrect and could expose ship managers to legal disputes when national regulations are implemented.

The financial burden of compliance could greatly impact ship managers. If they are held accountable for GHG penalties, they would need shipowners to provide upfront financial security to cover potential risks of insolvency or defaults.

This requirement could lead to large sums of money being tied up, limiting cash flow that could otherwise be used for expansion or investment in new ships.

InterManager President Sebastian von Hardenberg stated that ship managers are committed to supporting the industry’s decarbonisation efforts but should not be unfairly penalised for decisions they do not control.

“We ship managers are fully committed to playing our part in shipping’s journey to net zero. However, when it comes to the GHG intensity of a ship, ship managers have no say whatsoever in any of the decisions that result in material impact; they are not even consulted. In shore terms, we are the Facility Managers, not the Factory Owners,” he stated.

InterManager has urged the IMO to reconsider the proposed framework and ensure that the responsibilities and penalties are assigned appropriately.

The MEPC83 meeting will provide an opportunity to discuss these concerns and refine the framework to create a more balanced and legally sound approach for the maritime industry.

Reference: InterManager

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