Shipping regulator exempts Indian vessels from age bar

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

17 May 2008

In a surprise move, the Director General of Shipping (DGS) has exempted vessels with Indian flags from the recent ban it had imposed on chartered ships older than 25 years from plying in India's territorial waters in bad weather. In a fresh circular issued on Tuesday, Deputy DGS Samuel Darse said the ban applies to vessels other than those carrying Indian flag. Many in the industry asked whether the marine regulator was treating some ships "more equally".
When contacted, Darse refused to comment on the issue, and merely said they were taking steps in accordance with the Merchant Shipping Act.
However, justifying the ban on old vessels, the DGS through a circular dated April 25 said: "The analysis of the accidents over the past three years showed a significant correlation between the age of the vessels and the break-downs, which caused huge casualties. Therefore, in the interest of marine shipping, the guidelines for chartering of vessels were being revised and a tighter regime of surveys and inspection was being brought on recommendations from an expert committee appointed by the Ministry of Shipping, Road Transport and Highways."
Chairman of a shipping company, who did not want to be named, said this was a clear case of discrimination between companies. "What is the logic behind stating that old Indian' vessels would not meet accidents whereas vessels of foreign origin can meet accidents?" he asked. "The move by the DGS was favouring only a particular section of players in the industry and was discriminatory," he added.
According to industry sources, over 250 among the current fleet of nearly 850 chartered vessels were foreign ships. The companies owning these ships would be out of business for over six months in a year, they add.
A top official at the DGS headquarters in Mumbai said the step would mainly curb the malpractice among charter and oil exploration companies.
"There have been cases where tenders of public sector oil companies have been manipulated and some very old and dilapidated vessels lying in countries like Somalia, Panama and Nigeria, where mafia is actively involved and agencies do not bother much about regulations, were being used for Indian operations."
The official also mentioned that managing the Indian ships and local companies was easier for the government as they came under its jurisdiction.

Source: Business Standard