Who takes responsibility when a Ship sinks?

Why in the News?

Two recent maritime accidents off Kerala’s coast have spotlighted shipping safety, ecological risks, and the International Maritime Organisation’s (IMO) role in global maritime regulation.

About the International Maritime Organisation (IMO):

  • Overview: The IMO is a UN specialised agency that regulates international shipping and aims to prevent marine pollution from ships.
  • Establishment: It was established in 1948 via a UN conference in Geneva and formally came into existence in 1958. It is headquartered in London, United Kingdom.
  • Membership: It has 175 member states and 3 associate members. India joined in 1959.
  • Objective: To develop a fair and effective global regulatory framework for the shipping industry that is universally adopted and consistently implemented.
  • Legal Functions: It also addresses liability and compensation and facilitates international maritime traffic through legal frameworks.
  • World Maritime Day: It observes World Maritime Day on the last Thursday of September each year to promote awareness of maritime significance.
  • IMO Governance Structure:
    • Assembly: The highest governing body meets every 2 years.
    • Council: Comprises 40 members serving 2-year terms, acts as the executive organ, and focusing on safety and pollution control.
    • Committees: Five main committees and multiple subcommittees draft and adopt conventions, codes, and guidelines for maritime operations.
  • SOLAS (Safety of Life at Sea) Convention: Originating after the Titanic disaster, SOLAS mandates lifeboat capacity on both ship sides and is regularly updated by the IMO to meet modern safety standards.

India and IMO:

  • Overseeing Agency: IMO-related matters in India are handled by the Directorate General of Shipping.
  • Council Representation: India is a Category B member of the IMO Council, indicating its growing maritime influence.
  • Future Goals: Under Vision 2030 and Amrit Kaal Vision 2047, India plans to set up a dedicated IMO cell.
  • Conventions Not Yet Ratified: India has not yet ratified the 2004 Ballast Water Convention and the 2010 HNS Convention.
  • Flags of Convenience (FOC): Many ships operate under FOCs (e.g., Liberia, Marshall Islands) to bypass stringent regulations.

Who is Liable for Environmental Damage and Lost Cargo?

  • Owner Liability: Ship owners are liable for both cargo loss and environmental damage under international law.
  • Bill of Lading: Cargo is transported under a bill of lading, a legal contract between ship owner and cargo holder.
  • Marine Insurance: P&I Clubs (Protection & Indemnity) cover liabilities related to cargo loss, environmental damage, and loss of life.
  • Liability Caps: While cargo liability is capped, environmental claims—especially for oil or toxic spills—can be uncapped and costly.
  • Polluter Pays Principle: The MARPOL Convention enforces that polluters bear the cost of environmental damage, even if national law limits compensation.
  • Wreck Liability: The Nairobi Convention (2007) holds ship owners responsible for wreck removal or financial liability within 200 nautical miles of a nation’s coast.
  • Recent Examples: Accidents like Wan Hai 503 and ELSA 3, involving toxic spills and lost containers, show the importance of robust legal frameworks.
[UPSC 2022] With reference to the ‘Polar Code’, which one of the following statements best describes it?

Options: (a) It is the international code of safety for ships operating in polar waters.*

(b) It is the agreement of the countries around the North Pole regarding the demarcation of their territories in the polar region.

(c) It is a set of norms to be followed by the countries whose scientists undertake research studies in the North Pole and South Pole.

(d) It is a trade and security agreement of the member countries of the Arctic Council.

 

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