A fuel levy is one of the market-based measures (MBMs) currently under consideration at the International Maritime Organization. MBMs have been proposed to improve the energy efficiency of the shipping sector and reduce its emissions. This paper analyses the economic and environmental implications of two types of levy on shipping bunker fuels by means of an analytical model built on the cobweb theorem. A unit-tax per ton of fuel and an ad-valorem tax, enforced as a percentage of fuel prices, are examined. In both cases, a speed and fuel-consumption reduction equivalent to an improvement in the energy efficiency of the sector would be expected as a result of the regulation enforcement. The speed reduction in the unit-tax case depends on fuel prices and the tax amount, whereas in the ad-valorem case it relies upon the enforced tax percentage.
Both schemes lead to industry profit decline, the extent of which depend on the structure of the levy and market conditions. Since there is concern that the costs resulting from the policy will be passed from shipping companies to their customers along the supply chain, the paper dwells on how the costs arising from the enforcement of the levy will be actually allocated between ship-owners and operators, and cargo-owners. In a market characterised by high freight rates and with no or limited excess capacity, a higher percentage of the total tax amount is transferred from ship-owners to shippers. In case of a recession the opposite happens.
In an effort to reduce the environmental impacts of maritime transportation, the International Maritime Organization (IMO) designated special Sulphur Emission Control Areas (SECAs) where ships are required to use low-sulphur fuel. In January 2015, the sulphur limit within SECAs was lowered to 0.1%, which can only be achieved if vessels are using pricier ultra-low sulphur fuel, or invest in abatement technologies. The increased operating costs borne by Ro-Ro operators in SECAs due to the stricter limits can result in the shutting down of some routes and a redistribution of cargo flows with land-based alternatives. The exact repercussions of the new sulphur limits are difficult to identify in the wake of significant recent reductions of the fuel prices for both low-sulphur and heavy fuel oil. This paper presents a modal split model that estimates modal shifts vis-a-vis competing maritime and land-based modes available to shippers. This allows examining the implications of the recent low prices to modal choice, and the influence a potential increase in fuel prices may have. The model is applied to seven routes affected by the regulation based on data from a leading European Ro-Ro operator. Sensitivity analyses on market share data, cargo values, freight rates, and haulers rates are conducted. Emissions inventories are constructed to assess the environmental efficacy of the SECA regulation. The novelty of the proposed model lies in the examination of the ex-post implications of shutting down a service and the redistribution of transport. Recommendations to mitigate and reverse the negative side-effects of such environmental legislation are proposed.
The purpose of this chapter is to introduce the concept of Market Based Measures (MBMs) to reduce Green House Gas (GHG) emissions from ships, and review several distinct MBM proposals that have been under consideration by the International Maritime Organization (IMO). The chapter discusses the mechanisms used by MBMs, and explores how the concept of the Marginal Abatement Cost (MAC) can be linked to MBMs. It also attempts to discuss the pros and cons of the submitted proposals.
As of January 2015, the new maximum limit of fuel sulfur content for ships sailing within emission control areas has been reduced to 0.1%. A critical decision for ship owners in advance of the new limits was the selection of an abatement method that complies with the regulations. Two main options exist: investing in scrubber systems that remove sulfur dioxide emissions from the exhaust and switching to low-sulfur fuel when sailing in regulated waters. The first option would involve significant capital costs, while the latter would lead to operating cost increases because of the higher price of the fuel used. This paper presents a literature review of emissions abatement options and relevant research in the field. A cost–benefit methodology to assess emission reduction investments from ship owners is also presented. A study examined the effects of recent drops in bunker fuel price to the payback period of a potential scrubber investment. The results show that lower prices would significantly delay the payback period of such investments, up to two times in some cases. The case studies present the emissions generation through each option for representative short sea shipping routes. The repercussions of low-sulfur policies on large emission reduction investments including cold ironing are examined, along with implications of slow steaming for their respective payback periods. Recommendations are made for research in anticipation of future regulations and technological improvements.
This edited volume examines the continued viability of international human rights law in the context of growing transnational law enforcement. With states increasingly making use of global governance modes, core exercises of public authority such as migration control, surveillance, detention and policing, are increasingly conducted extraterritorially, outsourced to foreign governments or delegated to non-state actors.
New forms of cooperation raise difficult questions about divided, shared and joint responsibility under international human rights law. At the same time, some governments engage in transnational law enforcement exactly to avoid such responsibilities, creatively seeking to navigate the complex, overlapping and sometimes unclear bodies of international law. As such, this volume argues that this area represents a particular dark side of globalisation, requiring both scholars and practitioners to revisit basic assumptions and legal strategies.
The volume will be of great interest to students, scholars and practitioners of international relations, human rights and public international law.
This report analyses recent productivity developments in some of the main capture fisheries in Europe. Using data on specific fleet segments, productivity growth has been compared
between demersal fisheries in the UK, Spain, Norway, Iceland and the Faroe Islands, and pelagic fisheries in the UK, Denmark, Norway, Iceland and the Faroe Islands.
This article aims to present the most relevant practices of offshore oil contracting at an international level, in order to better understand the legal dynamics of the sector. The problem investigated deals with the terms of the legal relationship between the State and national and foreign public companies, as well as the relationship between States, with a view to the exploitation of shared offshore oil resources. This problem is current, taking into account both the fact that oil is a scarce resource, as well as the fact that its offshore exploration is particularly complex and risky. This article presents, in a non-exhaustive way, some examples of practices that illustrate contractual trends that have already crystallized. The approach to its content is made from an international law perspective, focused on the transnational challenges posed to States and operators. It is concluded that the sector is characterized by a huge variety of practices, which reveals an ability of operators to adapt to the characteristics of the concrete challenges of an offshore exploration project. It also shows the political and economic particularities of the States involved in the process.
A major part of the world fleet of more than 47,000 merchant ships operates under conditions that hamper energy efficiency and efforts to cut CO2 emissions. Valid and reliable data sets on ships' energy consumption are often missing in shipping markets and within shipping organizations, leading to the non-implementation of cost-effective energy efficiency measures. Policy makers are aiming to remedy this, e.g., through the EU Monitoring, Verification and Reporting scheme. In this paper, current practices for energy consumption monitoring in ship operations are explored based on interviews with 55 professionals in 34 shipping organizations in Denmark. Best practices, which require several years to implement, are identified, as are common challenges in implementing such practices—related to data collection, incentives for data misreporting, data analysis problems, as well as feedback and communication problems between ship and shore. This study shows how the logic of good energy consumption monitoring practices conflict with common business practices in shipping companies – e.g., through short-term vessel charters and temporary ship organizations – which in turn can explain the slow adoption of energy efficiency measures in the industry. This study demonstrates a role for policy makers or other third parties in mandating or standardizing good energy consumption monitoring practices beyond the present requirements.
This article discusses the role of private regulators within the international legal framework of Arctic shipping. The role of private actors has been acknowledged both in legal scholarship and policy papers; but it has not yet been placed in the centre of attention. This article does so by analysing the role of private actors under the Polar Code and three types of private regulation — guidelines of classification societies, requirements of insurance industry and private contracting. It concludes that private actors have an essential role both in developing and effectuation of public international law and thus in achieving sustainable Arctic shipping.
Maritime shipping is regarded as the most efficient mode of transport; however, its contribution to climate change through greenhouse gas emissions and the health issues related to shipping activity near residential centers cannot be neglected. In recent years, the efforts of regulators, ship operators, and port authorities have led to actions for ship emissions reduction to improve shipping's environmental performance. This work builds on an activity-based methodology that allows the estimation of emissions and examines environmental effects of slow steaming, fuel regulations, near-port speed-reduction schemes, and cold ironing. Pollutant emissions of carbon dioxide, sulfur dioxide, nitrogen oxides, and black carbon are modeled. A linear programming model minimizes fuel consumption through speed differentiation on a shipping line's routes based on fuel costs and binding regulations in each segment of the journey. Although the examined emissions-reduction actions may have a positive regional environmental effect by cutting emissions, it is possible that additional emissions are generated elsewhere because of increased sailing speeds beyond regulated areas. Trade-offs between pollutants are observed for reduction actions that may have a positive effect on some emission species but at the same time result in additional particulate matter and black carbon emissions. The presented framework allows key actors to conduct comprehensive studies and design improved emissions reduction actions with fewer negative impacts in other areas.