Polar Code leaves enforcement gap for Arctic shipping

Subject

The International Maritime Organisation's Polar Code.

Significance

The International Maritime Organisation's (IMO) Polar Code for commercial shipping in Arctic and Antarctic waters will come into effect in less than ten months, on January 1, 2017. Shipping lines, insurers and Polar states have less than a year to come into compliance with stricter international regulations governing maritime activity. However, the agreement leaves unaddressed certain environmental, coverage and enforcement concerns that could threaten the near-term success of the agreement.

Impacts

• Marine insurers will aggressively monitor Polar shipping and may threaten to cancel coverage of non-compliant ships and cargo.
• As Polar routes become more lucrative, the global shipping community may need to revise how it views flags of convenience.
• Amid oversupply of conventional commercial shipping, specialised Arctic vessels may offer opportunities to shipbuilders.