The environmental disaster wrought by the M T Prestige on the Spanish coastline in late 2002 was to be expected, says Peter Morris

Much of the work to make shipping safer over the past three years appears to have been futile, when antique tankers clothed in secrecy and carrying large cargoes of offensive fuel oil can drive through the heavily trafficked and sensitive seaways of Europe.

At 26 years old the Prestige was an antique tanker which, by its longevity, carried inherent risks demanding special attention and care. The only good feature about its loss is that no seafarers died in the environmental disaster.

This was a classic creature of the arcane world of shipping. Owned in one country by a single ship company, registered in another country, wearing the flag of a third country, surveyed in a fourth country, carrying the cargo of a fifth country – and with cargo interests that appeared linked to sixth and seventh countries.

Sea cargo owners, like users of other forms of surface transport, must become publicly accountable for their choice of transport, and responsible for any damage caused by the ships they use. There is no case today for cargo owners to plead ignorance of the condition of the ships they use, especially in the oil trade.

In its report, Ships, Slaves and Competition, the International Commission on Shipping strongly backed the drive for full transparency in shipping and the urgent need for fair competition.

The phrase “competitive shipping “in commercial terms seems a desirable objective for industry to pursue. However we know from studies by the Organization for Economic Cooperation and Development (OECD) that non-compliance with IMO convention safety standards can give a ship operator a 15 to 16 per cent cost advantage over operators whose ships do comply.

Quality ship operators and their organisations speaking out for safe, quality shipping deserve support.

Governments and shipping industry leaders need to drive home the message that the relentless pressure to reduce sea freight rates brings with it risks to human life, industry opportunities, fishing and the marine environment.

There is a level of unavoidable costs that have to be incurred to provide safe, efficient transport services and those costs are built into the final unit cost of a product, however small they may be.

The chase for cheaper freight rates by cargo

The chase for cheaper and cheaper freight rates by cargo owners, without regard for the risks they create, means that the introduction of newer, safer and more modern ships is delayed by the continuing use of aged ships.

As long as there are charterers and cargo owners who are prepared to use ships of questionable quality there will be shipowners who are prepared to provide them.

Cargo owners must become visible, accountable and responsible for any damage caused by the ships they utilise. They must become publicly accountable for their choice of shipping and required to justify that choice in the event of mishap.

That is heresy, some would say. There was a similar response 10 years ago when my Ships of Shame report recommended that the names of charterers of detained substandard ships should be published. However cargo owners will inevitably be brought into the net of accountability.

Cargo owner associations have generally backed the call for quality in shipping and proper treatment of crews. They are aware of the commercial advantages of positive public profiles for their products.

The European Commission’s package of proposals to prohibit the access of all single hull tankers over 23 years of age to EU ports will reduce the pressure of ageing tankers on the market. It will also restrict the access of younger single hull tankers, accelerate the phase out of single hull tankers and impose broader and earlier compliance with reinforced inspection rules for single hull tankers.

A more positive outcome from the Prestige disaster would be the full transparency and accountability of cargo owners, and fairer conditions of competition for quality ship operators.

Peter Morris is Chair of the International Commission on Shipping and author of its report, Ships, Slaves and Competition, which was published in 2001. He is a former Australian Transport Minister.