***Why so many shipowners find Panama's flag convenient

The Panama Canal features prominently in Panamanian life

Panama, a small nation of just three million, has the largest shipping fleet in the world, greater than those of the US and China combined. Aliyya Swaby investigates how this tiny Central American country came to rule the waves.

Thanks to its location and slender shape, Panama enjoys a position as the guardian of one of the world's most important marine trade routes, which connects the Pacific and Atlantic oceans.

For a hundred years the Panama Canal has provided a short cut for ships wishing to avoid the more hazardous route via Cape Horn.

Dubbed one of the seven wonders of the modern world, the 77km (48-mile) canal is a feat of engineering that handles 14,000 ships every year along its intricate lock system.

Many of these vessels fly the Panamanian flag yet the country itself has a limited history of trade.

Panama only has one small shipping line as well as a number of companies providing supplementary maritime services around the ports and canal.

Cheaper foreign labour

Most merchant ships flying Panama's flag belong to foreign owners wishing to avoid the stricter marine regulations imposed by their own countries.

Panama operates what is known as an open registry. Its flag offers the advantages of easier registration (often online) and the ability to employ cheaper foreign labour. Furthermore the foreign owners pay no income taxes.

About 8,600 ships fly the Panamanian flag. By comparison, the US has around 3,400 registered vessels and China just over 3,700.

Under international law, every merchant ship must be registered with a country, known as its flag state.

That country has jurisdiction over the vessel and is responsible for inspecting that it is safe to sail and to check on the crew's working conditions.

Open registries, sometimes referred to pejoratively as flags of convenience, have been contentious from the start.

The first transfer of ships to Panama's register in 1922 involved two US passenger ships wishing to serve alcohol to passengers during Prohibition. More followed as shipowners sought to avoid higher wages and improved working conditions secured through US legislation.

After World War Two, Panama's registry grew more rapidly as US shipowners sought to lower overheads while European ones switched flags to avoid high tax rates.

As demand rose for open registration, other countries in the developing world formed their own. The US used Liberia's registry to build a fleet of neutral ships during the Cold War.

Panama now has the largest registry in the world, followed by Liberia, the Marshall Islands, Hong Kong and Singapore. By last year, almost three quarters of the world's fleet was registered under a flag of a country other than its own.

The registry is lucrative for Panama, bringing in half a billion dollars for the economy in fees, services and taxes.

However, critics of the system point to the ease of hiding the true identity of shipowners and the lax enforcement of rules and regulations.

Allegations of corruption

Luis Fruto, representative of the International Transport Workers' Federation (ITF) in Panama, says the country turns a blind eye to its "responsibilities in order to acquire higher registration".

The ITF has led a campaign against flags of convenience since 1958. It considers that Panamanian registration is better than some "from a safety viewpoint, but it remains seriously flawed in areas such as oversight, accident investigation and crew assistance".

Two years ago, Mr Fruto investigated the death of a woman sailor, 22, on her first voyage. She became trapped in machinery that was reportedly faulty and died.

The ITF says that, rather than heading for the nearest port as rules dictate, the ship continued to sail for more than two weeks with her body in a freezer.

Further investigation by the ITF suggested that some of the shipping certificates had been bought.

International legal requirements insist that countries operating open registries inspect vessels, comply with international regulations and investigate accidents and corruption.

Critics worry that poor standards of regulation enforcement lead to more accidents

But critics say that Panama cuts corners in all these tasks, putting maritime workers at risk.

Indeed, accidents involving Panamanian-registered ships are high.

However, Carlos Gonzalez, former executive secretary of the Panamanian Maritime Authority, attributes this to a numbers game.

Panama has the most ships and therefore the most incidents, he says.

Since 2008, Panama has cut down on enough offences to move up from the black to the white list of the Paris Memorandum of Understanding, a watchdog comprising 27 maritime administrations from Europe and North America.

Yet Panama's registry is consistently beset by allegations of corruption.

'Scandal'

In 2000, ITF general secretary David Cockroft was able to buy a Panamanian first officer's certificate for $4,000 to navigate a ship - even though he had no maritime skills or experience.

Despite repeated assurances that the country was cleaning up its act, Roberto Linares, the head of the Panama Maritime Authority, resigned in June after it was discovered that workers were being certified without the proper qualifications.

"The scandal brings us back to the days that Panama was called a 'convenience flag'," said Franklin Castrellon, former spokesman for the Panama Canal Commission, an independent agency operating the waterway until the country took over from the US in 1999.

New leadership plans to turn things around again.

Jorge Barakat, the new head of the maritime authority, said: "The Panamanian flag is still robust and secure. Whatever kind of non-compliance there is will be reviewed by the administration."

As a commercial venture, Panama's flag of convenience is a success. But according to the ITF, that comes at a cost.

'Distorted the market'

It believes the world economy could survive a ban on flags of convenience and the higher costs that it says would follow.

ITF secretary Jon Whitlow said: "There would be some reconfiguration. The positive effects would include better protections and safeguards for seafarers who found themselves once again serving on a national flag ship."

Shipping prices would rise, but free competition has extensively distorted the market, he says.

However, defenders of the system say this thinking is outdated and that flags of convenience are here to stay.

"Panama's registry will last for ever," said Jorge Luis Sanchez, professor at the International Maritime University of Panama. "Those who don't like the open registry can opt to do something else with their ships."

Jazmina Rovi, former director of the Panama Maritime Law Association, said unions are better off enforcing uniform standards than eliminating the registry altogether.

With the new maritime administrator sworn in last month, it remains to be seen whether Panama will crack down on corruption and safety breaches or continue to live with the taint that still clings to flags of convenience.

FROM MARITIME ACCIDENT CASEBOOK:

Ebola symptoms. Click for larger image. Source: Centers for Disease Control and Prevention

Many of today’s seafarers come from countries where healthcare facilities are limited and may be unable to handle an outbreak of Ebola Virus Disease, which has already killed almost 900 people in West Africa.  Three global shipping organisations have expressed concern about the potential exposure of ship’s crews  to the disease and have issued joint guidelines to their members on the risks posed in countries affected by the Ebola virus.

Ebola emerged in 1976 in 2 simultaneous outbreaks, in Nzara, Sudan, and the Democratic Republic of Congo. The present outbreak has struck Guinea, Liberia and Sierra Leone. There is no cure and treatment largely consists of mitigating he symptoms (See graphic). Nine out of ten people infected die.

The disease enters the human population through close contact with the blood, secretions, organs or other bodily fluids of infected animals. In Africa, infection has been documented through the handling of infected chimpanzees, gorillas, fruit bats, monkeys, forest antelope and porcupines found ill or dead or in the rainforest.

It then spreads in the community through human-to-human transmission, with infection resulting from direct contact, through broken skin or mucous membranes, with the blood, secretions, organs or other bodily fluids of infected people, and indirect contact with environments contaminated with such fluids. Burial ceremonies in which mourners have direct contact with the body of the deceased person can also play a role in the transmission of Ebola. Men who have recovered from the disease can still transmit the virus through their semen for up to seven weeks after recovery from illness.

Some 20 per cent of maritime manpower comes from the Philippines, for instance, the largest single nationality aboard. Although the country’s Department of Health has expressed confidence that it is prepared to handle Ebola infections its efforts appear t be focussed on Filipino workers arriving from West Africa rather than seafarers. However, AIDS, which has similar transmission characteristics is on the increase and may provide a model for how difficult an Ebola outbreak may be to contain.

The International Chamber of Shipping, International Maritime Employers’ Council, and the International Transport Workers’ Federation have urgently advise that on all such vessels:

1. The Master should ensure that the crew are aware of the risks, how the virus can be spread and how to reduce the risk.
2. The ISPS requirements on ensuring that unauthorised personnel do not board the vessel should be strictly enforced throughout the duration of the vessel being in port.
3. The Master should give careful consideration to granting any shore leave whilst in impacted ports.
4. The shipowner/operator should avoid making crew changes in the ports of an affected country.
5. After departure the crew should be aware of the symptoms and report any occurring symptoms immediately to the person in charge of medical care.

The advice is supplemented with information from the World Health Organization on the virus (available here www.who.int/mediacentre/factsheets/fs103/en)

A spokesperson for the three organisation says: “Everyone is deeply concerned for those suffering from the Ebola epidemic and supportive of a coordinated world response to help them. We particularly applaud all those medical staff who are risking their lives to help. In the meantime we want to make sure that those in the world shipping industry play our part in ensuring the safety of crews visiting the affected countries, and minimising the risk of the virus spreading further.”

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World Health Organisation Fact Sheet

In 60 seconds: What is Ebola?

Why Ebola is so dangerous

How close are we to having a drug to treat Ebola?

FROM THE SIU:

***Guidance Issued for Ebola Virus (8/4)

Back to News

The following press release and related guidance document were issued August 4 by the International Transport Workers’ Federation, International Chamber of Shipping, and International Maritime Employers’ Council.

Joint ICS, IMEC, ITF press release: Global shipping bodies issue Ebola virus advice

4 August 2014

Three global shipping organizations today issued guidance to their members on the risks posed to ships’ crews calling in countries affected by the Ebola virus.

The ICS (International Chamber of Shipping), IMEC (International Maritime Employers’ Council), and the ITF (International Transport Workers’ Federation) urgently advise that on all such vessels:

1. The Master should ensure that the crew are aware of the risks, how the virus can be spread and how to reduce the risk.

2. The ISPS requirements on ensuring that unauthorized personnel do not board the vessel should be strictly enforced throughout the duration of the vessel being in port.

3. The Master should give careful consideration to granting any shore leave whilst in impacted ports.

4. The shipowner/operator should avoid making crew changes in the ports of an affected country.

5. After departure the crew should be aware of the symptoms and report any occurring symptoms immediately to the person in charge of medical care.

The advice is supplemented with information from the World Health Organization on the virus (available here www.who.int/mediacentre/factsheets/fs103/en)

A spokesperson for the three organizations commented: “Everyone is deeply concerned for those suffering from the Ebola epidemic and supportive of a coordinated world response to help them. We particularly applaud all those medical staff who are risking their lives to help. In the meantime we want to make sure that those in the world shipping industry play our part in ensuring the safety of crews visiting the affected countries, and minimizing the risk of the virus spreading further.”

The following information, produced by the World Health Organization, may assist in the education of on-board personnel:

Ebola is introduced into the human population through close contact with the blood, secretions, organs or other bodily fluids of infected animals. In Africa, infection has been documented through the handling of infected chimpanzees, gorillas, fruit bats, monkeys, forest antelope and porcupines found ill or dead or in the rainforest.

Ebola then spreads in the community through human-to-human transmission, with infection resulting from direct contact (through broken skin or mucous membranes) with the blood, secretions, organs or other bodily fluids of infected people, and indirect contact with environments contaminated with such fluids. Burial ceremonies in which mourners have direct contact with the body of the deceased person can also play a role in the transmission of Ebola. Men who have recovered from the disease can still transmit the virus through their semen for up to 7 weeks after recovery from illness.

Ebola is not spread through the air.

Health-care workers have frequently been infected while treating patients with suspected or confirmed EVD. This has occurred through close contact with patients when infection control precautions are not strictly practiced.

Among workers in contact with monkeys or pigs infected with Reston ebolavirus, several infections have been documented in people who were clinically asymptomatic. Thus, RESTV appears less capable of causing disease in humans than other Ebola species.

However, the only available evidence available comes from healthy adult males. It would be premature to extrapolate the health effects of the virus to all population groups, such as immuno-compromised persons, persons with underlying medical conditions, pregnant women and children. More studies of RESTV are needed before definitive conclusions can be drawn about the pathogenicity and virulence of this virus in humans.

Signs and symptoms
EVD is a severe acute viral illness often characterized by the sudden onset of fever, intense weakness, muscle pain, headache and sore throat. This is followed by vomiting, diarrhea, rash, impaired kidney and liver function, and in some cases, both internal and external bleeding. Laboratory findings include low white blood cell and platelet counts and elevated liver enzymes.

People are infectious as long as their blood and secretions contain the virus. Ebola virus was isolated from semen 61 days after onset of illness in a man who was infected in a laboratory.

The incubation period, that is the time interval from infection with the virus to onset of symptoms, is 2 to 21 days.

Further information on the virus may be found at the following link:
http://www.who.int/mediacentre/factsheets/fs103/en/

FROM THE MARITIME EXECUTIVE:

***Warning: Ebola Outbreak in West Africa

By MarEx

ITF, IMEC and ICS-ISF have been in communication regarding the serious nature of the outbreak of the Ebola virus in West Africa. As such, we have agreed that strong recommendations should be made to our members with vessels calling into countries which have been impacted by the virus. Members are asked to consider these recommendations internally and pass such on to their vessels as a matter of some urgency:
1.    The master should ensure that the crew are aware of the risks, how the virus can be spread and how to reduce the risk.
2.    The ISPS requirements on ensuring that unauthorized personnel do not board the vessel should be strictly enforced throughout the duration of the vessel being in port.
3.    The master should give careful consideration to granting any shore leave whilst in impacted ports.
4.    The shipowner/operator should avoid making crew changes in the ports of an affected country.
5.    After departure the crew should be aware of the symptoms and report any occurring symptoms immediately to the person in charge of medical care.

The following information, produced by the World Health Organisation, may assist in the education of on-board personnel:

Ebola is introduced into the human population through close contact with the blood, secretions, organs or other bodily fluids of infected animals. In Africa, infection has been documented through the handling of infected chimpanzees, gorillas, fruit bats, monkeys, forest antelope and porcupines found ill or dead or in the rainforest.

Ebola then spreads in the community through human-to-human transmission, with infection resulting from direct contact (through broken skin or mucous membranes) with the blood, secretions, organs or other bodily fluids of infected people, and indirect contact with environments contaminated with such fluids. Burial ceremonies in which mourners have direct contact with the body of the deceased person can also play a role in the transmission of Ebola. Men who have recovered from the disease can still transmit the virus through their semen for up to 7 weeks after recovery from illness.

Ebola is not spread through the air.

Health-care workers have frequently been infected while treating patients with suspected or confirmed EVD. This has occurred through close contact with patients when infection control precautions are not strictly practiced.

Among workers in contact with monkeys or pigs infected with Reston ebolavirus, several infections have been documented in people who were clinically asymptomatic. Thus, RESTV appears less capable of causing disease in humans than other Ebola species.

However, the only available evidence available comes from healthy adult males. It would be premature to extrapolate the health effects of the virus to all population groups, such as immuno-compromised persons, persons with underlying medical conditions, pregnant women and children. More studies of RESTV are needed before definitive conclusions can be drawn about the pathogenicity and virulence of this virus in humans.

Signs and symptoms

EVD is a severe acute viral illness often characterized by the sudden onset of fever, intense weakness, muscle pain, headache and sore throat. This is followed by vomiting, diarrhoea, rash, impaired kidney and liver function, and in some cases, both internal and external bleeding. Laboratory findings include low white blood cell and platelet counts and elevated liver enzymes.

People are infectious as long as their blood and secretions contain the virus. Ebola virus was isolated from semen 61 days after onset of illness in a man who was infected in a laboratory. 
The incubation period, that is the time interval from infection with the virus to onset of symptoms, is 2 to 21 days.

FROM SEAFARER TIMES (PHILIPPINES), SHIPPING TRIBUNE (INDIA), SHIPPING ONLINE (CHINA), PORT NEWS (RUSSIA), MARINE LOG:

***Global shipping bodies issue Ebola virus advice

Submitted by Helmsman on Tue, 08/05/2014 - 10:29

Global shipping bodies issue Ebola virus advice
4 August 2014 received via email

Three global shipping organisations today issued guidance to their members on the risks posed to ships’ crews calling in countries affected by the Ebola virus.

The ICS (International Chamber of Shipping), IMEC (International Maritime Employers’ Council), and the ITF (International Transport Workers’ Federation) urgently advise that on all such vessels:

1. The Master should ensure that the crew are aware of the risks, how the virus can be spread and how to reduce the risk.

2. The ISPS requirements on ensuring that unauthorised personnel do not board the vessel should be strictly enforced throughout the duration of the vessel being in port.

3. The Master should give careful consideration to granting any shore leave whilst in impacted ports.

4. The shipowner/operator should avoid making crew changes in the ports of an affected country.

5. After departure the crew should be aware of the symptoms and report any occurring symptoms immediately to the person in charge of medical care.

The advice is supplemented with information from the World Health Organization on the virus (available here www.who.int/mediacentre/factsheets/fs103/en)

A spokesperson for the three organisations commented: “Everyone is deeply concerned for those suffering from the Ebola epidemic and supportive of a coordinated world response to help them. We particularly applaud all those medical staff who are risking their lives to help. In the meantime we want to make sure that those in the world shipping industry play our part in ensuring the safety of crews visiting the affected countries, and minimising the risk of the virus spreading further.”

URGENT COMMUNICATION ON THE RISK OF THE EBOLA VIRUS

ITF, IMEC and ICS-ISF have been in communication regarding the serious nature of the outbreak of the Ebola virus in West Africa. As such, we have agreed that strong recommendations should be made to our members with vessels calling into countries which have been impacted by the virus. Members are asked to consider these recommendations internally and pass such on to their vessels as a matter of some urgency:

1. The Master should ensure that the crew are aware of the risks, how the virus can be spread and how to reduce the risk.

2. The ISPS requirements on ensuring that unauthorised personnel do not board the vessel should be strictly enforced throughout the duration of the vessel being in port.

3. The Master should give careful consideration to granting any shore leave whilst in impacted ports.

4. The shipowner/operator should avoid making crew changes in the ports of an affected country.

5. After departure the crew should be aware of the symptoms and report any occurring symptoms immediately to the person in charge of medical care.

The following information, produced by the World Health Organisation, may assist in the education of on-board personnel:

Ebola is introduced into the human population through close contact with the blood, secretions, organs or other bodily fluids of infected animals. In Africa, infection has been documented through the handling of infected chimpanzees, gorillas, fruit bats, monkeys, forest antelope and porcupines found ill or dead or in the rainforest.

Ebola then spreads in the community through human-to-human transmission, with infection resulting from direct contact (through broken skin or mucous membranes) with the blood, secretions, organs or other bodily fluids of infected people, and indirect contact with environments contaminated with such fluids. Burial ceremonies in which mourners have direct contact with the body of the deceased person can also play a role in the transmission of Ebola. Men who have recovered from the disease can still transmit the virus through their semen for up to 7 weeks after recovery from illness.

Ebola is not spread through the air.

Health-care workers have frequently been infected while treating patients with suspected or confirmed EVD. This has occurred through close contact with patients when infection control precautions are not strictly practiced.

Among workers in contact with monkeys or pigs infected with Reston ebolavirus, several infections have been documented in people who were clinically asymptomatic. Thus, RESTV appears less capable of causing disease in humans than other Ebola species.

However, the only available evidence available comes from healthy adult males. It would be premature to extrapolate the health effects of the virus to all population groups, such as immuno-compromised persons, persons with underlying medical conditions, pregnant women and children. More studies of RESTV are needed before definitive conclusions can be drawn about the pathogenicity and virulence of this virus in humans.

Signs and symptoms

EVD is a severe acute viral illness often characterized by the sudden onset of fever, intense weakness, muscle pain, headache and sore throat. This is followed by vomiting, diarrhoea, rash, impaired kidney and liver function, and in some cases, both internal and external bleeding. Laboratory findings include low white blood cell and platelet counts and elevated liver enzymes.

People are infectious as long as their blood and secretions contain the virus. Ebola virus was isolated from semen 61 days after onset of illness in a man who was infected in a laboratory.

The incubation period, that is the time interval from infection with the virus to onset of symptoms, is 2 to 21 days.