Analysis Of The Level Of Implementation Of Imo Conventions In Nigerian Shipping Sector

Introduction

1.1 Background Of The Study

One of the principal functions of the International Chamber of Shipping (ICS) is to represent the shipping industry’s views in the various IMO committees as new regulations are developed. But the adoption of IMO Conventions by Diplomatic Conferences is only part of the story. IMO Conventions can only come into force if they are taken forward for ratification once government officials get home after Diplomatic Conferences. IMO Conventions need to be ratified by governments, and then implemented and enforced in practice.

According to IMO (2007), although the incidence of marine casualties has decreased dramatically in recent years, the number of abandoned wrecks, estimated at almost 1,300 worldwide in 2007, has reportedly increased and the problems associated with them continue to be serious. Shipwrecks can be a hazard to the navigation of other vessels and their crews. Depending, among other aspects, on the nature of the cargo, wrecks may also potentially cause damage to the marine and coastal environments and costs are involved in their marking and removal. The Convention aims to provide a uniform set of rules for States to remove, or have removed, promptly and effectively, shipwrecks located beyond the territorial sea. The Convention also provides for compulsory insurance and a right of direct action against the insurer.

Although the Convention normally applies only to wrecks located beyond the territorial sea, in the “exclusive economic zone” of a State Party, it also includes an optional clause enabling States Parties to make certain provisions applicable to their territory, including their territorial sea. This is important, given that most of the dangerous wrecks lie within the territorial sea, in shallow coastal waters under the jurisdiction of coastal States.
Shipping as one of the world’s most international industries makes seaborne trade in a sense at the apex of world economic activity. As business has become more international, and newly industrialized countries have taken their place alongside the Organization for Economic Corporation and Development (OECD) countries, the maritime industry has provided the vehicle for an extraordinary growth of trade. This has also led to the progression from a world of isolated communities to an integrated global community (Stopford, 2003).

Shipping is a complex industry and the conditions which govern its operations in one sector do not necessarily apply to another. In terms of its main assets, the ships vary widely in size and type. They provide the whole range of service for a variety of goods, whether over shorter or longer distances. The shipping market is made of the liner shipping, tramp shipping, bulk shipping, the charter market etc. And because shipping is a service industry, ship demand depends on several factors including price, speed, reliability and security (Stopford, 2003).

1.2 Statement Of The Problem

In order to operate efficiently, the international shipping industry depends on the global regulatory framework provided by IMO and the effective implementation of IMO Conventions. The alternative would be chaos and market distortion, as well as inferior levels of safety and environmental protection.

Before, the implementation of IMO, the operations and services rendered to users within the confines of the operating environment have not been satisfactory due largely to lack of shipping policy and some government policy inconsistencies. Shipping operations and services have over the years been dominates by foreign shipping companies and vessels in Nigeria.

Therefore, the implementation of IMO in Nigerian shipping industries is very important. Also many factors like the management of bunker, activities of pirates, application of information and communication technology, safety practices and ship turn round time affect the growth and survival of shipping industries.

1.3 Objectives Of The Study

The main objective of this study is to critically examine an analysis of the level of implementation of IMO conventions in Nigerian shipping sector. The specific objectives include the following:

To determine the factors that hinder effective and efficient shipping operations in Nigeria.

To determine the challenges facing shipping industries implementation of IMO conventions in Nigeria.

To find out whether government policies affect implementation of IMO convention in shipping sector in Nigeria.

1.4 Research Questions

The following research questions were stated to guide this study:

What are the factors that hinder effective and efficient shipping operations in Nigeria?

What are the challenges facing shipping industries implementation of IMO conventions in Nigeria?

Do government policies affect implementation of IMO convention in shipping sector in Nigeria?

1.5 Research Hypotheses

The following research hypotheses were formulated to guide this study:

Hypothesis 1

H0: There are no factors that hinder effective and efficient shipping operations in Nigeria.

H1: There are factors that hinder effective and efficient shipping operations in Nigeria.

Hypothesis 2

H0: There are no challenges facing shipping industries implementation of IMO conventions in Nigeria.

H1: There are challenges facing shipping industries implementation of IMO conventions in Nigeria.

Hypothesis 3

H0: There is no significant relationship between government policies and implementation of IMO convention in shipping sector in Nigeria.

H1: There is a significant relationship between government policies and implementation of IMO convention in shipping sector in Nigeria.

1.6 Significance Of The Study

The study will be of immense benefit to the shareholders who have contributed to the maritime sector operations in Nigeria shipping industries.

The operations carried out by shipping lines are complicated as much they are technical. And as we know, the shipping industry drives national economic development. Also for any shipping line to remain on top in the industry, it needs to keep abreast with the current trends, the market and technological factors that drive efficiency.

Finally, future researches on maritime logistics operations will find the study interesting in their research.

1.7 Scope Of The Study

This study is limited to Port State Control and upon the research topic, which is centered on an analysis of the level of implementation of IMO conventions in Nigerian shipping sector.

1.8 Limitation Of The Study

There is no study undertaken by a researcher that is perfect. The imperfection of any research is always due to some factors negatively affecting a researcher in the course of carrying out research. Therefore, time constraint has shown no mercy to the research. The limited time has to be shared among many alternative uses, which includes reading, attending lectures and writing of this research, also distance and its attendant costs of travelling to obtain information which may enhance the writing of this study was a major limitation.

1.9 Definition Of Terms

a) International Maritime Organization (IMO):

A specialized agency of the United Nations that is responsible for measures to improve the safety and security of international shipping and to prevent marine pollution from ships.

b) Conventions:

An international agreement, especially one dealing with a specific matter, as postal service.

c) Shipping:

The process of transporting an item, usually through the mail. Shipping is a very basic, common way of getting an item from one place to another, or from one person to another.

d) Sector:

A sector is an area of the economy in which businesses share the same or a related product or service. It can also be thought of as an industry or market that shares common operating characteristics.