Post-Prestige - Single-Hull Phase-Out And Fines

(Sea Venture Volume 21) (Updated August 2003)

In 1992 MARPOL¹ was amended to make it mandatory for all tankers of 5,000dwt and above ordered after 6 July 1993 to be of double-hull construction.

Following the Erika incident in December 1999 the IMO² regulations on single-hull tankers (MARPOL Regulation 13G) were amended in April 2001 to provide for an accelerated phase-out. Under the new regulations all older tankers will be gradually phased out from 2003 to 2015 (the exact date depending upon the size and age of the tanker and whether it has segregated ballast tanks), at which time, only double-hulled tankers will be allowed to operate.

Following the sinking of the Prestige off the Northern Coast of Spain in November 2002 with 77,000 mt of heavy fuel oil on board, the Spanish government enacted domestic legislation prohibiting entry into Spanish ports, terminals or anchorages of any single-hulled tankers carrying heavy fuel, tar, asphalt, bitumen or heavy fuel oil, regardless of the vessel's flag.

This prohibition came into force on 14 December 2002 but was only applied as from 1 January 2003. A breach of this prohibition will result in a fine of up to Euro 3m ($3.1m) which can supposedly be levied jointly and severally against the owner of the vessel, the owner's P&I Club and the master. However, legal commentators suggest that this legislation does not make the P&I Clubs directly liable for such fines; it is simply a new type of fine, the exposure to which should be determined by Club Rules and the vessel's terms of entry.

France and Portugal have apparently followed Spain's lead in banning single-hull tankers carrying heavy oils from their waters.

Moreover, despite objections that the proper forum for single-hull tanker regulation should be IMO, the European Union Transport Council have agreed the following proposals and it is anticipated that they will be accepted by the European Parliament in the near future:

•  an immediate prohibition on the transport of all heavy fuel oil, heavy crude oil, waste oils, bitumen and tar to or from EU ports in any single-hull vessels of 5,000 dwt or above, irrespective of flag, such prohibition also applying to all single-hull vessel of 600dwt and above by 2008 .

•  an even quicker phase out of single hull-tankers as follows:

- an age limit of 23 years and an absolute cut-off date of 2005 for pre-MARPOL tankers (i.e. without segregated ballast tanks) over 20,000 dwt.

- an age limit of 28 years and an absolute cut-off date of 2010 for MARPOL tankers. (i.e. with segregated ballast tanks) over 20,000 dwt

- the same cut-off date as before (2015) for tankers of less than 20,000 dwt but with an age limit of 28 years.

•  A broader application of the special inspection regime for tankers (the Condition Assessment Scheme) designed to assess the structural soundness of single-hull tankers every two and a half years such that it will now apply to all single-hull tankers over 15 years of age.

The EU Proposals have now been submitted to IMO for consideration at the 49th Marine Environment Protection Committee (MEPC) session in July 2003. An additional meeting of the MEPC in December 2003 will probably be scheduled to allow for adoption of the proposals after the 6 month consideration period stipulated by MARPOL.

The U.S. authorities have also recently considered the question of accelerating their single-hull phase-out regulations but have decided to do nothing present. Other countries are stepping up the focus of Port State Control (PSC) inspections of single-hull tankers; as a notable example, all single-hull tankers trading to Australia are now subject to PSC inspection regardless of age or flag.

Update August 2003

New EU Regulation - August 2003   

1.International Convention for the Prevention of Pollution from Ships, 1973, as modified by the Protocol of 1978 relating thereto (MARPOL 73/78) 

2. The International Maritime Organisation