ICS: Canadian Oil Tanker Moratorium Act a Draconian Step

The International Chamber of Shipping (ICS), representing 80% of the world merchant fleet, has voiced concern about the proposed legislation by the Canadian Parliament on establishing a moratorium on the shipment of crude oil in the waters of Northern British Columbia.

ICS believes that the legislation in question would interfere with international maritime trade.

“Such a draconian step could lead to serious concerns being raised by Canada’s international trading partners,” said ICS Director of Policy and External Relations, Simon Bennett.

ICS asserted that the proposals have not been developed through an evidence-based process, and believes that it would establish an unwelcome precedent that might be emulated elsewhere, including by individual US states, with the potential to impact greatly on the efficiency of world trade, as well as that of Canada.

Furthermore, the Chamber added that the environmental record of the shipping industry, especially the tanker sector, is impressive. On average, worldwide, there are currently fewer than two significant oil spills (over 700 tonnes) per year, compared to 25 such incidents per year thirty years ago, despite a doubling of the amount of oil transported by sea.

“We would instead encourage Canada to continue its strong history of environmental protection and support for responsible global trade through the implementation of practical measures consistent with international best practice. This includes respecting the UN International Maritime Organization’s role in developing safe and sustainable shipping regulations and recommendations that might address any concerns that Canada may have,” Bennett stressed.

This legislation, tabled in the Canadian parliament in May, will be reviewed by a parliamentary committee, beginning on October 19.

On May 12, 2017, the Government of Canada introduced the Oil Tanker Moratorium Act in parliament, which aims to provide “an unprecedented level of coastal protection” in northern British Columbia.

The moratorium would prohibit oil tankers from stopping, loading or unloading crude or persistent oil products in northern British Columbia, and it would apply to tankers carrying more than 12,500 metric tonnes of crude oils.

Cargoes such as LNG, gasoline, naphtha, jet fuel and propane would be exempt from the ban.

The proposed act includes an enforcement regime which could see penalties for violation reach up to $5 million.