Operating differential subsidies: problems and alternatives for the United States

In this paper a proposal for a Competitive Rate of Return (CRR) based operating-subsidy system is made as an alternative to the existing US foreign-cost parity ODS system. Such an alternative, if adopted, could be successful in meaningfully relating US government maritime subsidy programmes to the legitimate financial needs of the industry. From the operator's viewpoint, the risk of drastic revenue fluctuations is removed, yet adequate opportunities are provided for firms with above average performance to be rewarded for their efficiency in higher than average profits. similarly, poorly run firms have an opportunity to lose money, in spite of government subsidies.

From the government's viewpoint, the CRR programme guarantees the provision of essential shipping services at the lowest possible cost. Because of substantial incentives to the operator on both the revenue and cost side of his profit equation, it is more likely that long-run government operating subsidies can be reduced under CRR than under the present system.

Although the CRR system has been described for use in determining subsidies for both bulk and general cargo carriers, it has been recommended that this system be considered first for implementation in the case of bulk vessels, because of the newness of the bulk subsidy programme. In addition, the 1970 Act gives MarAd the flexibility to initiate such a programme for bulk vessels without the necessity of new legislation.     

Operating differential subsidies: problems and alternatives for the United States

In this paper a proposal for a Competitive Rate of Return (CRR) based operating-subsidy system is made as an alternative to the existing US foreign-cost parity ODS system. Such an alternative, if adopted, could be successful in meaningfully relating US government maritime subsidy programmes to the legitimate financial needs of the industry. From the operator's viewpoint, the risk of drastic revenue fluctuations is removed, yet adequate opportunities are provided for firms with above average performance to be rewarded for their efficiency in higher than average profits. similarly, poorly run firms have an opportunity to lose money, in spite of government subsidies.

From the government's viewpoint, the CRR programme guarantees the provision of essential shipping services at the lowest possible cost. Because of substantial incentives to the operator on both the revenue and cost side of his profit equation, it is more likely that long-run government operating subsidies can be reduced under CRR than under the present system.

Although the CRR system has been described for use in determining subsidies for both bulk and general cargo carriers, it has been recommended that this system be considered first for implementation in the case of bulk vessels, because of the newness of the bulk subsidy programme. In addition, the 1970 Act gives MarAd the flexibility to initiate such a programme for bulk vessels without the necessity of new legislation.     

Reconstructing Polish ports and shipping

Dramatic efforts to put Poland's economy back on the right track indicate an urgent need to undertake studies concerning the future shape and structure of the Polish Merchant Marine as well as Poland's share in international maritime transport. Changing ownership and structure of enterprises, modernization of tonnage, improvement of domestic and foreign infrastructure, implementation of proper manning policy in the fleet and improvement of managerial techniques in the daily operation of ports and ships are some of the tasks which must be considered by those responsible for the future of Polish ports and shipping companies.     

Impact of proposed federal limits on US bagged food aid shipments: reduction in MSF carrier profits—a risk assessment 1

This paper is a stochastic risk simulation of the impact of proposed federal tonnage limits on US Maritime Security Fleet (MSF) bagged food aid shipments. Only MSF (i.e. federally subsidized carriers/vessels for war, or emergencies) and non-MSF US carriers (therefore, at competitive disadvantage) can compete for such shipments—representing an indirect subsidy to both groups. To compensate, US Congress proposed a financial penalty (loss of voyage subsidy) on MSF carriers for food aid above a certain limit. Accordingly, certain carriers will be policy 'winners' (non-MSF—larger food aid shipments), and others 'losers' (MSF). By simulating loss-minimizing economic behaviour by MSF carriers—using five stochastic factors—I obtain losses substantially below those claimed by the MSF owners.

Simulated annual-average MSF profits reduction is $3.5 million—within a large confidence interval; if no carriers surrender their subsidies (as claimed by MSF owners), a reduction of $6.0 million. Only 16% of annual MSF voyages are affected by a 2,500-ton limit (3%; 5,000-ton limit). Minimizing losses, 25 (of 41 affected) annual MSF voyages replace 38,000 tons of food aid with 23,000 tons of other cargo—forgoing $2.1 million in yearly direct subsidies. Two assumptions explain most of this simulated loss reduction.     

Surveillance and Poaching on Inshore Reefs of the Great Barrier Reef Marine Park

The Great Barrier Reef (GBR), Australia, is managed under the GBR Marine Park Act (1975) and is seen as a shining example of marine resource management. The principle tool of management is zoning for multiple use. We examined surveillance and illegal fishing around two inshore islands (Magnetic and Orpheus) of the GBR Marine Park in 2000/2001. Both islands are near Townsville, the largest city adjacent to the GBR. Surveillance effort was low, with vessels present on only 16% of days of the year. Measurable but low levels of illegal recreational fishing occurred within no-take zones. Levels decreased with increasing surveillance effort. Thus zoning was not completely successful in protecting fish targeted by fisheries, even within the most highly enforced sections of the Park. The expansion of no-take zones in 2004 from 4.6% to 33.4% of the area of the 358,000 km2 Park represents a considerable challenge for future surveillance and enforcement.     

The decline of the UK merchant fleet: an assessment of government policies in recent years

This paper attempts to outline the evolution of UK shipping policy since the mid 1980s, in the context of the decline of the UK Merchant Marine. It provides an analysis of the action, or inaction, of the UK government during the period up to 1991, and assesses whether a coherent and logical policy has been developed. In so doing it evaluates whether the UK is in line with the actions of the EC and its other maritime competitors in the field of shipping policy and whether, as a consequence, the decline of the Merchant Marine has been actively hindered or helped. An assessment is also made in the light of continuing political developments in the UK, and those predicted for the coming months.     

Environmental improvement on Narragansett Bay as a result of section 312 implementation of the Federal Water Pollution Control Act

Abstract

Section 312 of the Clean Waters Act was implemented in 1980 and requires all vessels including recreational boats already equipped with Marine Heads (toilets) to install one of three types of USCG approved Marine Sanitation Devices. These regulations govern all lakes and coastal waters extending to the end of the U.S. territorial sea and is intended to prevent untreated effluent from reaching the marine environment. As provisions of the Clean Water Act are exempt from provisions of the National Environmental Policy Act, no Environmental Impact Statement was written concerning the impacts to the marine environment and the cost to the boating public. The study based on a small survey conducted on Narragansett Bay during the summer of 1980 develops several empirical models to estimate the total costs of MSD conversions. These estimates assume that all recreational boats longer than 21 feet were to comply with Section 312 regulations. Biological Oxygen Demand generated waste by both the resident and visiting fleets have also been estimated and costs per lbs. of BOD equivalent made. Based on these estimates the quantity of waste prevented from entering the receiving waters equals that of a community with less than 700 people. The capital investments of on‐board treatment approximates 30 ¢/gallon, nearly 1000 times the cost of treating municipal waste.     

Market structures in coastal shipping: what to expect in Canada following the Comprehensive and Economic Trade Agreement with the European Union?

After several years of negotiation between Canada and the European Union, the Comprehensive and Economic Trade Agreement (CETA) was ratified in early 2017. The regime set out by the Canadian Coasting Trade Act that reserves shipments of cargo between Canadian ports to Canadian vessels remains mostly untouched under CETA. Minor, yet potentially significant, changes to the regime are introduced by the trade agreement. Provisions are made to liberalize the repositioning of empty containers within Canada. The liberalization of public markets now allows European firms to compete in the Canadian dredging market. Finally, EU vessels can undertake some transshipment activity in Canada but this is limited to international cargo on the specific Montreal-Halifax route. The paper attempts to highlight some possible CETA’s consequences for domestic Canadian shipping markets. It uses industrial economics analytical tools drawn from a Structure-Conduct-Performance (SCP) paradigm. From a literature review, it reconstructs different cases of deregulation that occurred internationally. The observed transformations are then characterized in terms of the SCP model. The paper identifies some common impacts which occurred in different transportation industries after a deregulation process. Using these findings, it concludes by discussing potential impacts for domestic shipping markets in Canada.     

Underwater Cultural Heritage Policies of the United States Coastal Zone

Domestic management of historic shipwrecks and other Underwater Cultural Heritage (UCH) resources located in the United States coastal zone is extensively fragmented and a portion of it has significant implications in terms of international law. In the United States coastal zone, UCH (largely historic shipwrecks) falls under one of three general regimes, depending on where the resource is located and subject to specific and individual requirements: the General Maritime Law, the Abandoned Shipwreck Act, and the Marine Protection, Research and Sanctuaries Act, also known as the Marine Sanctuaries Act. After examining the development of and current status of these regimes, this article will suggest policies for a stronger, more coordinated federal management regime in United States coastal waters. It will specifically argue that a recent decision by the United States Court of Appeals for the Fourth Circuit provides a well-designed paradigm that could be linked with pertinent aspects of the three identified regimes to create a unified coastal governance mechanism for sunken historic shipwrecks.     

Do maritime passengers’ subsidies in Europe affect prices?

Some European governments subsidize their residents when they travel at sea. This paper seeks to analyze the impact on prices of maritime passengers’ subsidies in Europe. Following a review of the scarce academic literature on this topic and the subsidy scheme in Europe, a sample of firms’ prices and other characteristics of 40 European routes for 2016 are analyzed. Both an estimation of a price equation and a matching approach are applied and reach the same conclusion: prices per kilometer are around 40 per cent higher on those subsidized routes due to subsidies. This outcome reduces the potential subsidy gain to consumers.     

Evaluating the long term impacts of transport policy: An initial assessment of bus deregulation

Local buses in Britain, outside London, were ‘deregulated’ as a result of the 1985 Transport Act, with most of the organisational changes implemented in 1986 but many of the ownership changes occurring over a longer period. By contrast, in London, the 1984 London Regional Transport Act introduced a system of comprehensive tendering – but it took 10 years for the organisational and ownership changes to be fully implemented. This paper examines the long term impacts of these changes. A key issue when examining long term changes is that of the counterfactual – what would have happened if the changes had not occurred? An econometric model of the demand for local bus services in Britain is outlined and used in conjunction with extrapolative methods for key variables such as fares and bus kms to determine demand-side counterfactuals. Some analyses of subsidy and of costs will also be outlined. This will then permit the examination of welfare change by estimating changes in consumer and producer surpluses, updating earlier studies. It is found that outside London, bus demand declined strongly, at least up to the year 2000 and some of this reduction can be ascribed to deregulation. By contrast in London, demand has generally been increasing. However, in both areas operating costs also declined strongly, again up to 2000, but since then there have been strong increases in costs and subsidy. Our initial finding is that there are net welfare increases both outside and inside London, but with welfare increases per capita being five times greater in London than elsewhere. However, sensitivity analysis shows that our results are sensitive to the specification of the modelling system and assumptions made concerning the counterfactual, particularly for the results for London.     

《船舶水污染物排放控制标准》对辖区客运船舶生活污水的影响

《船舶水污染物排放控制标准》(GB3552-2018)(以下简称新《排放标准》)于2018年7月1日正式实施,对客运船舶的生活污水排放接收做了严格的规定。通过对新《排放标准》的研究和对相关单位部门的调研,发现辖区客运船舶生活污水处置存在新《排放标准》执行难、生活污水排放监管难、岸上接收处置难等问题和难点。建议地方政府等部门加强政策宣传、出台激励政策、加快码头生活污水接收设施建设、加强联合监管等措施,减少客运船舶生活污水非法排放,从而保护海洋环境。     

The 2008 New Zealand public transport management act: Rationale, key provisions, and parallels with the United Kingdom

In January 2009, following a lengthy industry review and consultation process, the New Zealand Public Transport Management Act (PTMA) came into force. The Act allows Regional Transport Authorities, as the primary procurers of public transport services, to place either a control or a contracting requirement upon services that are registered as commercial requiring no subsidy. The imposition of either the control or the contracting requirement is designed to facilitate greater system integration, improve service continuity and enhance services to the customer, andallow the Authority to invest in key strategic projects, such as integrated fares and ticketing, so as to grow patronage.The PTMA’s other objective is to ensure improved value for public subsidies. Recent years have seen significant subsidy inflation for seemingly little commensurate benefits. The Act will allow the Regional Transport Authority to achieve greater value for money through improved farebox, a shift to longer, larger contracts to increase competition in the market, a more appropriate allocation of risk, and the removal of the ability of operators to ‘game’ the current system by using strategically placed commercial services as barriers to competition.Similar concerns have also stimulated new legislation in the UK and this paper illustrates the parallels in the environment and proposed response.     

Merchant fleet development by legislation: lessons from West and Central Africa

In the late 1960s and early 1970s, several developing maritime nations began to invoke their 'legitimate right' to carry, in their own vessels, cargo generated by their own import and export trades as one way to reverse their underdevelopment and dependency on traditional maritime nations. Consequently, they embarked on the establishment and development of national merchant fleets by means of cargo reservation legislation and flag discrimination practices. West and Central African states have pursued a vigorous policy of merchant fleet development for over two decades. This study examines some of the cargo reservation policies and flag discrimination practices in West and Central Africa and concludes that these two measures alone are insufficient to build up a significant merchant marine. Merchant fleet development depends equally on the resolution of problems such as shortage of ship finance or capital, disruptive bureaucratic politics among the state agencies concerned with shipping, low volume of trade, and contradictory and ambivalent fiscal and macroeconomic policies in these countries that impede the development of the maritime sector.     

The U.S. national marine sanctuary program: An analysis of the program's implementation and current issues

Abstract

The U.S. National Marine Sanctuary Program was established in 1972 by Title III of the Marine Protection, Research, and Sanctuaries Act (16 U.S.C. §1431 et seq.). In this article, we discuss the development of the sanctuary concept, and the original intent of Congress, and analyze how it was applied by the sanctuary program. Differences in interpretation of the program's purpose are examined, including discussion of the multiple‐use management concept, an important but controversial management technique used in the sanctuaries. The continuing efforts by Congress and the National Oceanic and Atmospheric Administration to clarify the program's purpose are investigated. The program's administrative history is explained and the current sanctuaries and active candidates are briefly described. In light of the 1988 reauthorization of the Marine Sanctuary Act, the current issues facing the program are analyzed. Finally, we draw conclusions and make recommendations for the program's future.     

Marine Protected Area Costs as “Beneficial” Fisheries Subsidies: A Global Evaluation

Marine protected areas (MPAs) are now generally accepted as important tools in the protection of coastal biodiversity. It is also likely that they play a positive role in enhancing fisheries. Yet currently, less than 1% of the global oceans are protected, although international agreements have targets ranging from 10–30% coverage. Despite its minuscule size, we consider the current MPA “network” to be beneficial to fisheries, and its running or maintenance cost, therefore, to be a positive contribution to the sustainability of fisheries, or a “beneficial” subsidy (“harmful” subsidies enhance fishing capacity and effort). A method was derived from data in Balmford et al. (PNAS, 101: 9694–9697) to estimate the annual cost of maintaining MPAs as a function of their size, and of the degree of development of the country in question. We provide national costs of the 53 countries that jointly contribute 95% of global fisheries catch and, assuming that this type of subsidy, in a given country, cannot exceed 15% of the ex-vessel value of its fisheries catches, estimated a global MPA subsidy to fisheries of 870 million US$. Given that total subsidies to fisheries currently range from 30–34 billion US$ annually (without MPA costs), this amounts to only 2.5–2.8% of total subsidies to fisheries being devoted explicitly to the maintenance of the biodiversity that sustains them.     

内河船舶航行香港航线防止空气污染的检验与管理

内河船舶航行香港航线,应满足香港《商船（防止空气污染）规例》的要求,并持有防止空气污染证书。本文结合香港规例、内河船检法规及中国海事局文件要求,按照新船与现有船舶进行区分,介绍了航行香港的内河船舶防止空气污染方面的检验要求,并提出相应的管理建议。关键词：内河船舶防止空气污染检验要求     

An investigation into the existence of a two-tier spot freight market for crude oil carriers

Developments in environmental legislation have exercised increased pressure on the tanker sector to improve its quality. To date, the most influential and, indisputably, the most controversial piece of legislation against oil pollution is the U.S. Oil Pollution Act that was introduced in 1990. This paper attempts an empirical examination of the effects of these developments in the spot freight market. Using a database of Worldscale fixtures over a period of four and a half years, a series of statistical tests was performed with the aim of detecting the existence of any premium paid for vessels of lower age, double hull construction, or trading to the U.S.A. The results were mixed, indicating in several cases some form of premia for US.-bound vessels, but less evidence of premia for lower age and better hull construction.     

节能减排环保背景下的船用双燃料柴油机发展研究

船用天然气/柴油双燃料柴油机是一种具有良好发展前景的节能减排环保船用动力设备。从船用双燃料柴油机发展的时代背景,发展趋势及天然气燃料的优势,包括国内外船用柴油机发展趋势、船用双燃料柴油机的发展前景、船用天然气燃料的优势;船用双燃料柴油机及其子系统研究;船用双燃料柴油机的国内发展现状等方面,对节能减排环保背景下的船用双燃料柴油机发展进行了研究。     

复杂工况条件下砂被、通长袋和软体排施工方法的改进

结合宁波大榭招商国际集装箱码头围堤造陆工程,介绍在不同水深的复杂工况条件下砂被、通长袋及软体排的材料结构设计和施工工艺;与传统的施工方法对比,对船机设备、施工工艺等方面进行了改进,以达到提高施工效率,保证质量的效果。