15: CHARTING A GREENER COURSE IN SHIPPING: INCORPORATING ENVIRONMENTAL PERFORMANCE INDICATORS IN A TANKER POOL SYSTEM

Merchant shipping is generally a cost-effective and energy efficient mode of transportation for 90% of the world's trade. However the sheer scale and cross-border reach of shipping activities imply that any adverse impacts at a sector level are likely to be considerable. Compliance with the maritime environmental regulations may ensure that minimum standards are met, but industry self-regulation and self-improvement are the means to achieving optimal environment performance while taking into account economic benefits and costs. This study focuses on the scenario of a tanker pool structure and reviews the environmental and regulatory issues related to shipping and in particular, tankers. Various theoretical models for developing environmental performance indicators and setting standards are discussed. A survey on the environmental perspectives of relevant players in the industry was conducted, before finally proposing a framework for incorporating environmental performance indicators such as ISO14001 into the existing tanker pool rating system. The environmental criteria could be initially assigned a comparatively lower weighting compared to the existing technical and commercial criteria, before considering adjustments to the weightings at a later stage. As more pool members successfully attain the environmental accreditation, the overall environmental performance of the tanker pool would be progressively raised.