PortCalls
The Philippines only shipping and  transport guide.
 

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The Next Wave rides on issues of the domestic shipping industry. Articles are written by members of the Philippine Interisland Shipping Association.

2004 Q2 |2004 Q1
2003 Q4 l 2003 Q3 l 2003 Q2 l 2003 Q1


      *Ship Classification (May 10, 2004)

      *Maritime Safety MIC Advocacy (April 26, 2004)

      *Laws regulating the industry (April 12, 2004)

 

Ship classification (May 10, 2004)

Ship classification is regarded as the development and worldwide implementation of published rules and regulations governing structural strengths of all parts of the hull and its appendages, and the safety and reliability of the main propulsion and steering systems and auxiliary systems built into a ship in order to maintain basic conditions on board, enabling the ship to operate in its intended service from the perspective of insurers, cargo shippers, administrative authorities and other parties.

A ship built in accordance with an IACS member rules and regulations and which fulfills the applicable stability requirements will be assigned a class in the Register Book of the Society. Each Member Society maintains the provisions of class through periodical visits by its surveyors to the ship in order to ascertain that the ship continues to comply with the rules of the Member Society.

A ship is said to be in class when the rules and regulations that pertain to it have, in the opinion of the Society, been complied with. Classification is vital for the structural and engineering design, construction and operation of ships, and affects shipbuilding, maintenance and repair, ship brokering, chartering, marine insurance, and banking.

The classification certificate issued by a Member Society is a document which confirms that a ship has been designed and built in accordance with that Society's rules and is fit for its intended service. Failure to meet the standards set by the Society or non-compliance with the recommendations issued as a result of a survey may result in the suspension or withdrawal of class.

Safety of Life at Sea Convention (SOLAS) The International Convention for the Safety of Life at Sea (SOLAS) specifies the minimum standards for the construction, equipment and operation of ships. It covers the different aspects of safety at sea. It is the most important international treaty affecting the safety of merchant ships.

It is mainly applicable to vessels engaged in international shipping and trade. The Convention currently in force is better known as the SOLAS 1974 as amended, or the SOLAS 74/78.

Its provisions include regulations governing:

* Vessel construction, repair, modification and outfitting,

* Fire protection, detection and prevention,

* Life saving appliances,

* Radio communications and navigational equipment,

* Safety of navigation,

* Carriage of cargo including dangerous cargo,

* Management for the safe operation on ships (or the International Safety Management Code),

* Safety measures for passenger vessels, high speed craft, bulk carriers, tankers, roll on-roll off vessels and other vessels,

* Safe manning levels,

* Pollution prevention for tankers and other vessels,

* Regulations affecting vessel traffic services, and

* Other similar regulations

The first convention was adopted in 1914 in reaction to the accident involving the RMS Titanic. It has seen subsequent amendments and has since been updated to what is now known as the 1974 SOLAS Convention.

Under its provision, the "flag state", or the government of the flag which a vessel flies, has the responsibility for ensuring that such vessel complies with the requirements of the SOLAS Convention and possesses the necessary statutory certificates to evidence such compliance.

Port State Control Governments of other IMO-member nations at which port a vessel may be found, or "port states," have the authority to inspect ships of other IMO-member country if there are clear grounds for believing that the ship and its equipment do not substantially comply with the requirements of the SOLAS Convention. This procedure is known as "Port State Control".

The convention is kept up to date by periodic amendments by the IMO. The amendments enter into force through tacit acceptance procedure and is deemed binding on all member states on the date specified by the amendment.

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Maritime Safety MIC Advocacy (April 26, 2004)

The Maritime Industry Cluster is advocating for safer ships and cleaner seas for our domestic merchant marine fleet. There is an urgent need to institute an aggressive safety regulatory framework for our domestic fleet.

We must agree how international standards may be applied or adopted to the domestic fleet which, because of the nature of its operations, differ in size, specifications, operations and usage, as well as management sophistication, from that of international shipping.

There is also a need to establish a career path progression and a certification program for seafarers serving on domestic fleets, so that they can look forward to making their way to international manning without jeopardizing the manning requirements of the domestic fleet.

The international standards for vessel safety and crew training are rigorous. Our government regulatory agencies have adopted some of these standards for larger vessels, or those with sizes of 500 gross registered tons (GRT) or more.

Standards for smaller vessels or those with sizes below 500 GRT have to be definitely determined and implemented so that the ambiguity of present regulations may be clarified. Likewise, there are international standards for training required of seafarers serving on international vessels.

Domestic seafarers are required to undergo training for safety certification at another level. In order to achieve a zero-accident record in Philippine waters and gain public trust and confidence in the industry, government and the private sector must work together to design a maritime safety framework that will be implemented over the next two to three years.

Safety Standards in the International Trade International Standards Shipping is probably the most globally regulated of all industries. From the middle of the 19th century, countries with strong maritime traditions recognized the need to develop international regulations that could be followed by all shipping nations.

Countries have since moved towards setting a uniform standard for the worldís shipping fleet. Shipping, therefore, has become one of the most regulated industries globally.

International Maritime Organization (IMO) The International Maritime Organization (IMO) is the permanent international body that is given the task to promote maritime safety. It seeks to ensure safer ships and cleaner oceans.

The IMO is part of the United Nations Organization. It is mandated to provide the machinery for cooperation among governments in the field of governmental regulation and practices relating to technical matters affecting shipping in the international trade, particularly setting standards concerning maritime safety, efficiency of navigation, and the prevention and control of marine pollution from ships.

Codes and conventions of the IMO are made applicable to vessels engaged in international shipping. International Association of Classification Societies (IACS) The International Association of Classification Societies (IACS) was born out of the need of marine insurance underwriters to provide a system of inspection for ships' hulls and equipment.

A committee, created among insurance underwriters in the mid-18th century, was given the task to classify the condition of the vessel's hull and its equipment on an annual basis to determine the fitness of a ship for the voyage to be undertaken.

The vessel's condition was published in a register and made available to underwriters. The leading underwriters of the time called themselves "Members of the Society". The system, however, eventually fell into disrepute.

This forced the members to clean up their system and organize themselves into a self-standing "classification society". This became known as the "Lloyd's Register of British and Foreign Shipping" and was the model used by other countries in setting up their own organizations for the classification of their vessels.

The creation of other classification societies facilitated cooperation among them. However, technical regulation of vessels did not come until the formal organization of the IMO. Since then class rules have become the technical basis for gauging the safety of ship structural and engineering systems.

The IACS was formed in 1968 with seven leading societies as members. Their combined level of knowledge of and experience in ship structural and engineering systems paved the way for their consultative status at IMO.

They are the only non-government organization able to develop and apply international maritime rules.

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Laws regulating the industry (April 12, 2004)

Laws creating shipping regulatory agencies

* The Maritime Industry Decree of 1974 (Presidential Decree [PD] no. 474)

* The Coast Guard Law (Republic Act [RA] No. 5173)

* The Revised Coast Guard Law of 1974 (PD No. 601), as amended

* The Charter of the Philippine Ports Authority (PD No. 857)

* The Charter of the Cebu Ports Authority (RA No. 7621) Regulatory and Commercial Laws governing shipping

* The Public Service Act of 1936 (Commonwealth Act No. 146)

* The Salvage Law (Act No. 2616)

* The Code of Commerce (Articles 573-869, Book Three, "Maritime Commerce")

* The Civil Code of the Philippines (Articles 1732-1766, "Common Carriers")

* The Carriage of Goods by Sea Act (Commonwealth Act No. 65)

* The Ship Mortgage Decree of 1978 (PD No. 1521)

* Amending Section 806 of the Tariff And Customs Code of the Philippines, As Amended, By Allowing The Registration Of Vessels The Ownership Of Which is Vested in Corporations Or Associations, At Least Sixty Percent Of The Capital Stock or The Capital Of Which Belong To Citizens Of The Philippines (PD No. 761, As Amended)

* An Act To Regulate The Transfer of Vessels and Of Shipping Facilities And To Provide Penalties For The Violation Thereof (Commonwealth Act No. 606, As Amended)

* Allowing The Temporary Registration of Foreign-Owned Vessels Under (Time) Charter or Lease To Philippine Nationals For Use In The Philippine Coastwise Trade Subject To Certain Conditions (PD No. 760, As Amended)

*Requiring All Philippine-Owned and/or Registered Vessels To Undertake Repairs and Drydocking with MARINA-Registered Ship Repair Yards (PD No. 1221)

* Regulating the Operations of Shipbuilding and Ship Repair Yards (PD No. 1059)

* Removing Red Tape and Reducing Clearance Requirements for Inter-island Vessels (Executive Order No. 493, series of 1992)

* Deregulating Entry Into Domestic Liner Routes (EO No. 185, series of 1994)

* Deregulating Domestic Shipping Rates (EO No. 213, series of 1994) Incentives Laws Governing Shipping

* The Philippine Overseas Shipping Act of 1955 (RA No.1407), as amended by RA No. 6106 and PD No. 214

* The Philippine Overseas Shipping Development Act (RA No. 7471)

* Providing for Incentives to the Shipbuilding and Repair Industry (PD No. 666)

* Providing Incentives to the Shipping Industry by Granting Additional Deductible Items for Income Tax Purposes (PD No. 667)

* Providing Direct Incentives for the Development of Philippine Overseas Shipping (PD No. 806)

* Requiring Government Offices, Agencies, Instrumentalities and Government-Owned or Controlled Corporations, Persons and Entities Enjoying Tax Exemption, Incentive or Subsidy from the Government to Utilize in International Transportation the Services of the Philippine Flag Carrier and Shipping Lines and for Other Purposes (PD No. 894 as amended by PD No. 1466)

* Authorizing the National Development Company to Assist Local Shipbuilders and Persons and Entities Engaged in Inter-island Shipping and Appropriating Funds Therefor (PD No. 878)

* Omnibus Investments Code (EO No. 226) Laws Governing Seafaring

* Labor Code of the Philippines, As Amended (PD No. 442)

* Reorganizing the Ministry of Labor and Employment Creating The Philippine Overseas Employment Association, and For Other Purposes (Executive Order no. 797, series of 1982 as amended by EO No. 247, series of 1987)

* An Act to Institute the Policies of Overseas Employment And Establish A Higher Standard Of Protection and Promotion Of the Welfare of Migrant Workers, Their Families and Overseas Filipinos In Distress, And For Other Purposes (RA No.8042)

AGENCIES REGULATING THE INDUSTRY Domestic Shipping

* Maritime Industry Authority • Philippine Ports Authority

* Philippine Coast Guard

* Department of Transportation and Communications

* Department of Environment and Natural Resources

* Department of Energy

* Department of Agriculture

* Department of Interior and Local Government

* Department of Tourism

* Bureau of Customs

* Bureau of Quarantine

* Bureau of Plant Industry

* Bureau of Animal Industry

* Bureau of Fisheries and Aquatic Resources

* National Food Authority

* Sugar Regulatory Agency • Philippine National Police

* Philippine Atmospheric Geophysical and Astronomical Services Administration

* National Mapping and Resource Information Authority

* National Telecommunications Commission

* Videogram Regulatory Board Overseas Shipping

* Maritime Industry Authority

* Philippine Ports Authority

* Philippine Coast Guard

* Department of Transportation and Communications

* Department of Foreign Affairs

* Bureau of Immigration

* Bureau of Customs

* Bureau of Quarantine Seafaring

* Department of Labor and Employment

* Maritime Industry Authority • Department of Foreign Affairs

* Department of Education, Culture and Sports

* Department of Health • Commission on Higher Education

* Maritime Training Council •Professional Regulatory Commission

* National Conciliation and Mediation Board

* National Labor Relations Commission

* National Telecommunications Commission

* Overseas Workers Welfare Administration

* Philippine Overseas Employment Administrationation

* Bureau of Customs

* Bureau of Investments

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2003 Q4 l 2003 Q3 l 2003 Q2 l 2003 Q1

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