National Marine Educators Association

“How the Modern Cruise Industry is Regulated and Operates”

June 30, 2015Newport, Rhode Island

Bud DarrSenior VP of Technical & Regulatory Affairs

Cruise Lines International Association

Cruise Lines International Association-Unified voice of the global cruise

community-Represents, advocates and promotes the

common interests of the industry to external stakeholders-Global organization with 15 offices

worldwide

Australia + New Zealand

China

Singapore

Italy

Belgium +Luxembourg

Netherlands

Germany

Spain

UK + Ireland

CLIA Office Locations

5

Alaska

Hawaii

Canada

US + Global

Brazil

France

State of the Industry

CLIA Global Ocean Cruise Passengers(in Millions)

7

17.82009

20.52011

20.92012

21.32013

19.12010

22.12014

23.0*2015

* projected

Global Distribution of Cruise Passengers by Source Market

(Millions of Passengers)

Source: G.P. Wild (Int.) Limited from CLIA, IRN and other sources (2013)

European Distribution of Cruise Passengers by Source Market

(Millions of Passengers)

Source: G.P. Wild (Int.) Limited from CLIA, IRN and other sources (2013)

Distribution of Cruise Passengers by Source Market Outside of Europe and North America

Source: G.P. Wild (Int.) Limited from CLIA, IRN and other sources (2013)

Economic ImpactTotal Global Economic Contribution of the Cruise

Sector (2013)

No. of Passenger and Crew Onshore Visits (in millions)

114.87

Total Direct Expenditures (in billions of U.S. dollars)

$52.31

Total Output Contribution (in billions of U.S. dollars)

$117.15

Total Income Contribution (in in billions of U.S. dollars)

$38.47

Total Employment Contribution

891,009

Source: BREA (2014)

Cruise Ship Deployment

Source: Whatsinport.com

15

How we are Regulated

How we are Regulated

International

Regional

National

Sub-national

16

Maritime Regulatory Enforcement

Flag States

Classification Societies

Coastal &

Port States

17

Representation with UN Bodies•International Maritime Organization•International Labour Organization•World Health Organization•UN World Tourism Organization•International Civil Aviation Organization

18

IMO Organization

Assembly

Council

Committees

Subcommittees

• Agenda• Approvals

• Budget• Direction

• Substantive Policy and Standard Development

• Detailed Technical Work

Internationally, the cruise industry’s approx 250 vessels are often folded into the broader shipping industry of approx. 50,000 vessels

19

IMO Committees

• Maritime Safety

• Marine Environment Protection

• Legal

• Facilitation

• Technical Cooperation

20

Relevant IMO Subcommittees

• Ship Design and Construction

• Ship Systems and Equipment

• Human Element Training and Watch keeping

• Navigation, Communications, Search and Rescue

• Implementation of IMO Instruments

• Pollution Prevention and Response

21

IMO Membership

• 171 Member States

• 3 Associate Member States

• 63 Intergovernmental Organizations

• 77 Non-Governmental Organizations

22

CLIA as a Non-Governmental Organization

Consultative Status - ICCL / CLIA

Since 1993

Meeting Participation, Position Papers Expert “advice”, Points of View, and Advising Governments and Other Delegations

23

IMO Standards

• CONVENTIONS - INTERNATIONAL LAW

• CODES

• RESOLUTIONS

• GUIDELINES

• INTERPRETATIONS

24

SOLAS: Safety of Life at Sea(1974)

MARPOL and SIX ANNEXES: Prevention of Pollution from Ships (73/78)

STCW: Standards for Training Certification and Watch keeping (95)

LLC: Load Lines Convention (66/88)

FAL: Facilitation

Major IMO Conventions

25

International Labour Organization

• Operates in tri-partite manner, Governments 50% of vote, Labor 25%, ship owners 25%

• Ship owners represented by ICS, Labor by ITF

• Consolidated Maritime Labour Convention of 2006

• Invokes port state control, therefore enforceable worldwide.

26

U.S. Regulatory Framework

27

Current Policy Issues

Cruise Ship Policy Contributors

•Cruise Lines•Seafarers•Shipbuilders•Classification Societies•Flag States•Port States•Industry Trade Associations

29

Trade Association Roles•Cooperation •Communication•Sharing of Best Practices•Policy Development•Issues Education•International Engagement•Representation

30

CLIA Complementary Efforts

•Promotion of Enhanced Safety Culture •CLIA Globalization •Develop & Enhance Industry Policies•Verification of Member Policies (CEO Engagement)•Guest Care & Contingency Planning Initiatives•Passenger Bill of Rights

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Some Key Safety Issues•Operational Measures•Reliability of Systems•Innovation in Design•Evacuation Analysis•Contingency Planning•Polar Cruises

Some Key Health Issues•Norovirus/Acute Gastrointestinal Illness•Influenza Like Illness•Ebola (Current Outbreak)•Emergency Care

33

Some Key Environmental Issues

•Sulfur Requirements•Exhaust Gas Scrubber Washwater Standards•Port Reception Facilities•Wastewater Management Requirements•Polar Issues

34

Maritime Labour Convention, 2006

•Ensuring that seafarers have the rights to:oA safe and secure work placeoFair terms of employmentoDecent working and living conditionsoHealth protection, medical care, welfare measures and other

forms of social protection

Thank you

bdarr@cruising.org