Don't ignore the biggest shipping deadline of the year: July 1

Launching a sweeping, international maritime security mandate with a drop-dead compliance deadline in less than two years is a bit like getting thousands of students from around the world — with varied backgrounds and education levels — to turn in the same standardized term paper. The results are bound to include some “the dog ate my homework” and class-skipping responses.

In the case of the International Maritime Organization’s (IMO) International Ship and Port Facility Code (ISPS), it is not advisable to offer excuses for not getting the assignment finished on time. The results will be far worse than bad grades — they could be monetary fines as high as US$30,000 per vessel, cargo shipping holdups and, most importantly, the door closing on your company or country’s ability to conduct successful waterborne trade, especially with the United States.

The ISPS Code’s roots actually go back to 1974’s International Convention for the Safety of Life at Sea, specifically SOLAS chapters V and XI (the latter chapter has since been broken into two parts). Many countries never bothered complying with what were, originally, measures meant to ensure the seaworthiness of vessels.
The rules of the game had changed dramatically by 2002, when in December of that year, the IMO’s Diplomatic Conference adopted new maritime regulations via amendments to the 1974 accords, and the compliance stakes became much more serious due to the significant sea change in the post 9/11 world. Now ship and port security plans, among other security-related assessments, will need to be certified in order to receive those golden compliance certificates in what will be a zero-tolerance regime.
Shipping and port operators/managers around the world have been madly scrambling, and in some cases, arguing over interpretive elements with regard to the ISPS Code; however, these concerns aside, neither shipping companies, seaports, nor countries want to be blacklisted.

Furthermore, shippers will want to be doing business with compliant service providers to avoid unnecessary and costly cargo holdups.
Certainly there is no doubt that trying to enforce any sort of international standard is not an easy task, and some of the rules of the game have questionable consequences for various parties.
In the case of the largest ship registry in the world, Panama, a private monopoly at the behest of the Panama Maritime Authority was reportedly charging in excess of $3,000 per ship for the security plan review and certification process, compared to a reported average of $750 in other ship registry countries where more traditional safety review organizations have been employed. The Panama price has reportedly been lowered somewhat, but the blame should be placed on how the Panama Maritime Authority chose to interpret and utilize the ISPS process. Despite the obvious price gouging, the price of non-compliance will be much higher.
There are other tales of woe being circulated, but the facts are thus: the ISPS certification process is reality with a solid purpose, despite the costly up-front dose of medicine. More bitter medicine yet would be a devastating explosion aboard a commercial vessel in any country’s harbor, or from a terrorist-connected ship with dubious ownership, hidden from view, off-loading terror devices into the hinterlands, because of a lack of a cohesive security review plan. Class dismissed.

Southern California Ports Handbook
Our interestingly designed cover this issue is courtesy of Colby Communications. It is the template for our new Southern California Ports Handbook cover, published in conjunction with our sponsor, the Marine Exchange of Southern California, Executive Director Manny Aschemeyer’s high-caliber team in San Pedro Harbor. We’re not only excited to be launching the inaugural directory in early summer, but we look forward to building what will be the only true, usable, affordable reference to the big Southern California maritime and transportation industries for years to come. To place your order at the low price of just $31.95, call Gary Greenewald at .

Stats Man
It’s a bird! It’s a plane! It’s a cargo ship! No, it’s Stats Man! We’re pleased to bring aboard Bob Hannus, an expert in shipping industry market research and analysis. He will bring well-researched shipping market trends, forecasts and statistical recaps to the magazine, designed to enhance the market perspectives of our professional readership.
Bob spent 27 years at the Port of Seattle, spearheading initiatives that gauged market performance, strategy formulation, analysis research studies, development efforts, customer surveys, forecasting, and information systems. Prior to his tenure with the port, he served in a similar capacity with the former air cargo company Flying Tigers. He will provide the centerpiece of our Cargo Intelligence section in every issue of Marine Digest and Cargo Business News.