Concerns about Disorder in World Maritime Logistics Next Month

The International Ship and Port Facility Security (ISPS) Code, which was devised to prevent terror in ships or ports, may cause a serious “disorder in maritime logistics” because at least 60 percent of ships and 80 percent of ports, to which the ISPS Code applies, have not met compliance even though it will be enforced on July 1.

The inspection into the conditions of 39 countries among 40 members of the council of International Maritime Organization (IMO), which was carried by the 92nd council that ended on June 25, revealed that only 33 percent of ships and 16 percent of ports had been approved by the ISPS Code. The ships, owned by these 39 countries, account for 84 percent of all the merchant ships of the world on the basis of amount of tonnage.

From July 1, the U.S. Coast Guard will reject or suspend the entry of those ships not compliant with the ISPS Code, which may lead to a disorder in maritime logistics, such as hold-up of exported or imported goods. Japan, Canada, and Australia also have plans to implement it decidedly.

The Financial Times pointed out that the U.S. Coast Guard will board all ships arriving in its ports to check if they comply with the ISPS Code, and ships not meeting compliance will be searched, which may cause a serious delay.

However, most of the shipping companies in developing countries, which have not yet been approved, are calling for loosening the regulations during the early stage of implementation on the grounds that it is a hasty action to give full effect to ISPS Code adopted in December 2002, only after one and a half years of preparation.

The Ministry of Maritime Affairs and Fisheries announced on June 24 that there will be no problems in loading or unloading Korean ships because 90 percent of 425 ships and 28 ports, to which the ISPS Code applies, have met compliance.

However, when Korean ships sail to the U.S. via a third country that has not been approved by the ISPS Code, it may work to their disadvantage in the inspection by the U.S. Coast Guard.

ISPS Code: An international security standard devised by IMO after the Sept. 11 attack to keep ships and ports safe from terror. Mandatory compliance with the ISPS Code for all international passenger ships, international ports, and cargo boats capable of loading at least 500 tons is July 1.

Jin Lee leej@donga.com