SINGAPORE's Maritime and Port Authority (MPA) has issued a circular to shipowners, ship managers, operators and crew of Singapore-registered ships, classification societies, insurers and the general shipping community, calling for the provision of compulsory financial security under Section 34A of the Merchant Shipping (Maritime Labour Convention) Act 2014.
Such measures are expected to meet the requirements of Regulation 2.5 and Regulation 4.2 of the Maritime Labour Convention, 2006, as amended (MLC).
Ships as described in Section 3 of the Merchant Shipping (Maritime Labour Convention) Act 2014 (No. 6 of 2014) 1 will be required from January 18 2017 to carry on board certificates attesting that contracts of insurance or other financial security are in place to cover shipowners' liabilities for outstanding wages and repatriation and compensation for death or long-term disability.
Where more than one financial security provider supplies cover in respect of the MLC ship, the certificates provided by each financial security provider must be carried on board.
Shipowners must provide a copy of the signed form to MPA for MPA's records. Electronic copies of the signed forms must be submitted to MPA via email (mmo@mpa.gov.sg) no later than 30 days after the form has been completed.
For the first time in decades, growth in world trade is falling below global economic growth. Economic prospects in key emerging markets remain uncertain and it is not obvious where a powerful new engine of growth is to be found. Protectionism and isolationist sentiments are eroding the very basis for global collaboration on which our industry relies.
Add to that the threat of digital disruption from platform-based business models, seismic shifts in supply chain logistics technology, a pipeline of regulatory requirements that will only grow in complexity and cost combined with limited sources of finance.