Govt flags off ‘holistic’ review of ship age norms

Less than a year after it introduced age norms for ships, both Indian registered and foreign flagged, from calling at the country’s ports to load and unload cargo, the Directorate General of Shipping has decided to undertake a sweeping review of its order with a holistic approach, encompassing the entire maritime sector.The Directorate General of Shipping, India’s maritime administration, has called price offers to pick a consultant to carry out the study.

The 24 February 2023 order issued by the D G Shipping on ‘Age Norms and Other Qualitative Parameters with Respect to Vessels’ set an age limit of 25 years for oil tankers, bulk carriers, and general cargo vessels, triggering concerns among stakeholders. This led the administration to partly amend the order on 1 July 2023.

The age norms were designed to encourage a younger fleet to improve safety, meet global rules on ship emissions and protect the marine environment from pollution during mishaps.

The consultant picked for the task should “review the DG Shipping Order on age norm thoroughly, understanding its provisions, intentions, and implications on shipping industry as whole and suggest modifications, if any”.

“The output of the study would determine whether the Order is capable of serving the interest of the Indian shipping industry as a whole. It should undertake an analysis of existing fiscal policies on the competitiveness of vessels flying the Indian flag as compared to foreign flags and put forth potential strategies for enhancing the tonnage registered under the national flag,” the D G Shipping wrote in the tender.The consultant hired by D G Shipping should “examine how the proposed order on age restriction may intersect with existing and upcoming international regulations related to green shipping and emission reduction including those from the International Maritime Organization (IMO)”.It should also “examine the operational and technical challenges that may arise from complying with age restrictions, including vessel availability, technology upgrades, and maintenance requirements”.

Another key aspect of the study is to “evaluate regulatory and policy constraints that may have discouraged ship owners from flagging their vessels under the Indian flag and identify areas where regulatory reforms, incentives, and streamlined processes could encourage greater participation in Indian national tonnage”.

Besides, it should suggest “potential strategies for enhancing the tonnage registered under the national flag, highlighting the policies, whether fiscal or regulatory compliance, which needs to be addressed”.

It should propose “effective incentive mechanisms that can attract ship-owners to register vessels under the Indian flag and recommend strategies to promote investment in ship-building, ship repair, and maritime infrastructure to support the growth of Indian national tonnage”.