European Union shipping law

Last updated

European Union shipping law is the body of law developed by the European Union ("EU") relating to shipping or maritime matters.

Contents

Introduction

Shipping is extremely important to the European Union. The EU is the world's second-largest trading bloc and therefore very dependent on shipping. About 90% of its trade with the rest of the world is carried by sea and around 40% of its internal trade is carried by sea. The EU has a coastline twice that of Russia and three times that of the US so it is acutely aware of maritime safety and environmental issues. More than 350 million passengers sail annually through its 1200 ports. It is also a major employer in the EC and a significant source of foreign income.

Origins

In principle, all of EU law applies to the maritime sector. Nonetheless, despite the Treaty establishing the European Economic Community (now the European Community (the "EC")) having been signed on 25 March 1957, it was not until the 1970s, that there was any serious attempt to develop European laws relating to shipping. During the 1970s, a number of attempts were made to develop laws in particular areas such as liner conferences, the environment and pilotage. It was not however until the 1980s, particularly 1986, that a serious body of EC shipping law evolved. On 22 December 1986, the Council of Ministers adopted four Regulations which lay the foundations for most of EC shipping law. In the 1990s and 2000s so far, the law has developed in various areas including competition and anti-trust law but also in the areas as safety, the environment, ports and employment.

Freedom to Provide Services

In principle, all EU shipowners are free to provide maritime services either between Member States or within Member States (i.e., provide cabotage services). The right to provide international maritime services (provided one EU port was involved) is enshrined in Regulation 4055/86. [1] The freedom to provide services between ports within one and the same EU Member States (i.e., so-called "cabotage" services) provided more difficult to achieve and it was only accomplished when Regulation 3577/92 was adopted by the EU.

Competition Law

One of the most controversial topics is the application of competition law to maritime transport and, in particular, liner conferences.

Competition law is the set of legal rules designed to ensure freedom or rivalry in the marketplace. It is known as "antitrust law" in the US.

Between 1986 and 2006, the EC had a special regime exempting many liner conferences from the application of the prohibition on anti-competitive arrangements (i.e. Article 81 of the EC Treaty (now Article 101 of the Treaty on the Functioning of the European Union)). This exemption was contained in Regulation 4056/86 which has now been repealed, effective October 2008. Many other countries such as Singapore, Japan and China, in an effort to prevent destructive competition, are allowing price-setting immunity of liner conferences.

EU State aid law is becoming of increasing significance in the sector. Ports have to ensure that developments are compliant with State aid law and Member States may therefore have to notify proposed aid schemes to the European Commission for prior approval.

Related Research Articles

European Union Political and economic union of 27 European states

The European Union (EU) is a political and economic union of 27 member states that are located primarily in Europe. The union has a total area of 4,233,255.3 km2 (1,634,469.0 sq mi) and an estimated total population of about 447 million. An internal single market has been established through a standardised system of laws that apply in all member states in those matters, and only those matters, where the states have agreed to act as one. EU policies aim to ensure the free movement of people, goods, services and capital within the internal market; enact legislation in justice and home affairs; and maintain common policies on trade, agriculture, fisheries and regional development. Passport controls have been abolished for travel within the Schengen Area, roaming charges also. A monetary union was established in 1999, coming into full force in 2002, and is composed of 19 member states which use the euro currency. The EU has often been described as a sui generis political entity with the characteristics of either a federation or confederation.

Directive (European Union) Legislative act of the European Union

A directive is a legal act of the European Union that requires member states to achieve a particular result without dictating the means of achieving that result. Directives first have to be enacted into national law by member states before their laws are ruling on individuals residing in their countries. Directives normally leave member states with a certain amount of leeway as to the exact rules to be adopted. Directives can be adopted by means of a variety of legislative procedures depending on their subject matter.

European Union law Rules operating within EU member states

European Union law is a system of rules operating within the member states of the European Union. Since the founding of the European Coal and Steel Community following World War II, the EU has developed the aim to "promote peace, its values and the well-being of its peoples". The EU has political institutions, social and economic policies, which transcend nation states for the purpose of cooperation and human development. According to its Court of Justice the EU represents "a new legal order of international law".

European Union competition law Economic law of the European Union

European competition law is the competition law in use within the European Union. It promotes the maintenance of competition within the European Single Market by regulating anti-competitive conduct by companies to ensure that they do not create cartels and monopolies that would damage the interests of society.

Directorate-General for European Civil Protection and Humanitarian Aid Operations

The Directorate-General for European Civil Protection and Humanitarian Aid Operations, formerly known as the European Community Humanitarian Aid Office, is the European Commission's department for overseas humanitarian aid and for civil protection. It aims to save and preserve life, prevent and alleviate human suffering and safeguard the integrity and dignity of populations affected by natural disasters and man-made crises. Since September 2019, Janez Lenarčič is serving as Commissioner for Crisis Management in the Von der Leyen Commission.

Merchant Marine Act of 1920 Protectionist US maritime law

The Merchant Marine Act of 1920 is a United States federal statute that provides for the promotion and maintenance of the American merchant marine. Among other purposes, the law regulates maritime commerce in U.S. waters and between U.S. ports. Section 27 of the Merchant Marine Act is known as the Jones Act and deals with cabotage. It requires that all goods transported by water between U.S. ports be carried on ships that have been constructed in the United States and that fly the U.S. flag, are owned by U.S. citizens, and are crewed by U.S. citizens and U.S. permanent residents. The act was introduced by Senator Wesley Jones. The law also defines certain seaman's rights.

Cabotage is the transport of goods or passengers between two places in the same country by a transport operator from another country. It originally applied to shipping along coastal routes, port to port, but now applies to aviation, railways, and road transport as well.

Short-sea shipping Movement of cargo and passengers by sea along a coast, without crossing an ocean

The modern terms short-sea shipping, marine highway, and motorways of the sea, and the more historical terms coastal trade, coastal shipping, coasting trade, and coastwise trade, all encompass the movement of cargo and passengers mainly by sea along a coast, without crossing an ocean.

European Single Market Single market of the European Union and participating non-EU countries

The European Single Market, Internal Market or Common Market is a single market comprising the 27 member states of the European Union (EU) as well as – with certain exceptions – Iceland, Liechtenstein, and Norway through the Agreement on the European Economic Area, and Switzerland through bilateral treaties. The single market seeks to guarantee the free movement of goods, capital, services, and people, known collectively as the "four freedoms".

European Maritime Safety Agency

The European Maritime Safety Agency (EMSA) is a European Union agency charged with reducing the risk of maritime accidents, marine pollution from ships and the loss of human lives at sea by helping to enforce the pertinent EU legislation. It is headquartered in Lisbon.

Home state regulation is a principle in the law of the European Union for resolving conflict of laws between Member States when dealing with cross-border selling or marketing of goods and services. The principle states that, where an action or service is performed in one country but received in another, the applicable law is the law of the country where the action or service is performed. It is also called home country control, country of origin rule, or country of origin principle. It is one possible rule of EU law, specifically of European Single Market law, that determines which laws will apply to goods or services that cross the border of Member States.

Government procurement or public procurement is undertaken by the public authorities of the European Union (EU) and its member states in order to award contracts for public works and for the purchase of goods and services in accordance with principles derived from the Treaties of the European Union. Such procurement represents 14% of EU GDP as of 2017, and has been the subject of increasing European regulation since the 1970s because of its importance to the European single market.

European Union (EU) concepts, acronyms, and jargon are a terminology set that has developed as a form of shorthand, to quickly express a (formal) EU process, an (informal) institutional working practice, or an EU body, function or decision, and which is commonly understood among EU officials or external people who regularly deal with EU institutions.

Transport in the European Union

Transport in the European Union is a shared competence of the Union and its member states. The European Commission includes a Commissioner for Transport, currently Adina Ioana Vălean. Since 2012, the Commission also includes a Directorate-General for Mobility and Transport which develops EU policies in the transport sector and manages funding for Trans-European Networks and technological development and innovation, worth €850 million yearly for the period 2000–2006.

Primacy of European Union law

The primacy of European Union law is a legal principle establishing precedence of European Union law over conflicting national laws of EU member states. The principle was derived from an interpretation of the European Court of Justice, which ruled that European law has priority over any contravening national law, including the constitution of a member state itself. The majority of national courts have generally recognized and accepted this principle, except for the part where European law outranks a member state's constitution. As a result, national constitutional courts have also reserved the right to review the conformity of EU law with national constitutional law.

The Erika legislative packages of the European Union are maritime laws intended to improve safety in the shipping industry and thereby reduce environmental damage to the oceans.

European labour law regulates basic transnational standards of employment and partnership at work in the European Union and countries adhering to the European Convention on Human Rights. In setting regulatory floors to competition to for job-creating investment within the Union, and in promoting a degree of employee consultation in the workplace, European labour law is viewed as a pillar of the "European social model". Despite wide variation in employment protection and related welfare provision between member states, a contrast is typically drawn with conditions in the United States.

Area of freedom, security and justice EUs home affairs and justice policies

The area of freedom, security and justice (AFSJ) is a collection of home affairs and justice policies designed to ensure security, rights and free movement within the European Union (EU). Areas covered include the harmonisation of private international law, extradition arrangements between member states, policies on internal and external border controls, common travel visa, immigration and asylum policies and police and judicial cooperation.

Maritime Labour Convention International Labour Organization Convention

The Maritime Labour Convention (MLC) is an International Labour Organization convention, number 186, established in 2006 as the fourth pillar of international maritime law and embodies "all up-to-date standards of existing international maritime labour Conventions and Recommendations, as well as the fundamental principles to be found in other international labour Conventions". The other "pillars are the SOLAS, STCW and MARPOL. The treaties applies to all ships entering the harbours of parties to the treaty, as well as to all ships flying the flag of state party.

Philip Ruttley is a leading Anglo-Swiss lawyer and published expert in European Union competition (anti-trust) law and international trade law. He has been described as "one of Europe's foremost maritime competition experts".

References

Sources