Governance

Bribery and corruption

In February 2020, IUMI co-sponsored a paper to the IMO with a proposal to develop a guidance to address bribery and corruption in the maritime sector. A key objective in this work should be to align actions in the maritime sector with the UN Convention against Corruption (UNCAC). The Facilitation Committee (FAL 44) established in October 2020 a Correspondence Group on “Guidance to Address Maritime Corruption” under the coordination of the Marshall Islands. The group’s primary aim is to develop draft guidance to implement anti-bribery and anti-corruption practices. Members of the Group suggested that the high-level interests should be:

1. integrity and the willingness to work towards eradication of corruption in accordance with the United Nations Convention against Corruption;
2. the desire to create simple, maritime ship/port interface focused guidance and a GISIS (Global Integrated Shipping Information System) module which is legally based and which avoids retaliation; and
3. the necessity of relevant parties to act on and address reports of alleged corruption.

In February 2022, the Maritime Anti-Corruption Network released the results and lessons learned from ten years of collecting data of corrupt demands in maritime trade. This data has been collected in over a decade through MACN’s Anonymous Incident Reporting platform, a system designed to allow the maritime industry to report when it has been faced with corrupt demands in ports globally.

Diversity & inclusion

IUMI represents more than 40 national member associations from around the globe and works closely with affiliate organisations from a wide array of maritime stakeholders with international backgrounds. It is therefore IUMI’s goal to represent this variety of members in IUMI’s policy positions. Moreover, IUMI aims to include a diverse range of members as related to their geography, gender and age in the Technical Committees and Forums. The Committee and Forum Chairs are requested to consider these aspects when they recommend candidates during the annual elections. This intention is underpinned by IUMI’s diversity statement.

Livestock transports

Livestock carriers are a special type of ship intended to transport cattle, sheep and other animals. Most of the vessels engaged in this trade are converted from a general cargo vessel, i.e. not specifically designed for the purpose of carrying live animals. Converted livestock carriers are often fitted with multiple decks to accommodate the cattle. This set-up enhances the windage area and impacts the stability of the vessels. As these ships are often converted only after sailing in the trade they have been designed for originally, the fleet of livestock carriers has a fairly high average age which is often associated with fatigue in the strength of the structure as well as old main engines and propulsion systems. The track record of livestock carriers involved in major incidents is therefore relatively poor. Examples include the sinking of the Gulf Livestock 1 in the East China Sea in September 2020 with 43 crew and 6,000 cattle onboard and the capsizing and subsequent sinking of the Queen Hind in Romania in November 2019 with 14,000 sheep onboard.

The welfare of live animals during maritime and road transport poses additional safety as well as ethical concerns. Often, appropriate care cannot be afforded to the large number of animals being transported, leaving them exposed to food and water deprivation, rough seas, heat and cold stress. Overflow of faecal material regularly leads to faecal soiling of feed and water troughs as well as coat contamination. Due to the severe stress and suffering of the animals during long voyages, the New Zealand government in April 2021 banned live cattle exports by sea, with a two-year period to phase out the trade. Other countries such as the UK are considering to ban live animal exports and introducing further elements of animal welfare in transport, such as reducing maximum journey times, giving animals more space and headroom during transport, and stricter rules on transporting animals in extreme temperatures or by sea.

The PSI’s ESG Guide for Non-Life Insurance includes risk mitigation examples and good practice related to animal welfare for the live transport of animals. Marine insurers covering these risks are encouraged to review the treatment of animals during transport and to promote best practice among their insureds.