Ahmed ElAmin reports Bad shipowners had better catch the wave of reform sweeping through the industry or they will be left behind on the shoals of financial ruin.

Key to the battle is a new standard for ships and ship companies which the industry hopes will be adopted worldwide. The industry still suffers from the fallout of the Exxon Valdez oil spill off Alaska in 1989 which made the public more sceptical and led to the imposition of tough and costly requirements from ships.

Now the industry is working to make shipping safer and the oceans less polluted, delegates at a shipping conference were told yesterday.

"Our only image is a negative image,'' Richard duMoulin, chairman of The International Association of Independent Tanker Owners told delegates at shipping conference yesterday. "There is no positive image.'' Where attempts to set international standards have come short in making shipowners more responsible, those in the industry hope that the new International Safety Mangagement Code (ISM) will do much to solve the industry's problems.

Some countries are already setting ISM as the standard for ships arriving at their ports. The US, for example, will require most ship classes to comply with ISM by July 1998. Without an ISM certificate a ship will not be allowed to enter a US port by that date.

So far about 52 percent of the association's membership have received ISM certification Mr. duMoulin said. He estimates about 90 percent will comply by the deadline. The code will help to remove those who don't meet the standard from the industry.

"The tanker industry will be ready for the deadline,'' he said.

"...Those who don't (comply) should not be in shipping.'' However, the stumbling block to make the seas safer and less polluted may come from individual shipowners who fail to comply with ISM, and countries which fail to require it as a standard.

"I see a train wreck coming,'' he said. "Anything which wrecks ISM, wrecks the tanker industry.'' To help make sure the code becomes a worldwide standard the association is attempting to make sure countries and regulatory bodies adopt it as a means of preventing bad shipowners from operating.

"The industry needs to do more to help itself,'' he said. "...ISM is the glue which holds the industry together.'' He also noted the tanker suffered from a bad image because of its previously secretive nature. The association was working to make information about its members more available and correct some of the misconceptions.

For example, over the past 20 years there has been a 85 percent reduction in the oil pollution from ships cleaning out residual oil at sea. There has been a 50 percent reduction in pollution resulting from accidents during the same period.

"Only 11 percent of the oil pollution comes from tankers,'' he said. "About 60 percent comes from rivers and harbours.'' Still the industry wanted to reduce pollution further. One method was by lobbying more port authorities to put in facilities so ships could clean dirty ballast in harbour without resorting to dumping at sea.

"Our industry hasn't improved enough,'' he said.

Bruce Lucas, president of Atlantic Marine Ltd. in Bermuda, said the ISM standard would force change on the industry, even for those who don't want to spend the money to make their ships safer and their crews competent.

"ISM resulted from the basic recognition that the shipping industry, in spite of the good intentions of some, would be unable to impose and maintain self-regulation in regard to safety management upon its varied and diverse participants,'' he said.

He said the ISM standard places the responsibility for safe operation much more squarely onto the shoulders of the ship operating companies, who are required to have systems in place to ensure that ships are correctly manned, have trained and licensed staff, and are seaworthy to international standards.

Ron Ross, director of Bermuda's Marine and Ports department, said 80 percent of the 121 commercial ships registered here are compliant with the ISM standard.

He said it's expected Bermuda will have full certification by the target deadlines.

About 100 delegates from around the world are attending the two-day conference hosted by The Bermuda International Shipping Association at the Sonesta Beach Hotel. The conference ends today.

`I see a train wreck coming. Anything which wrecks ISM, wrecks the tanker industry.' -- Richard duMoulin RON ROSS -- Expecting Bermuda will have full certification by the deadlines.

BUSINESS BUC Bad shipowners told: You must reform