Report from the Commission - Third report of the implementation of Council Regulation 3577/92 applying the principle of freedom to provide services to maritime cabotage (1997-1998)
Date: 2000-02-24
Institutions: European Commission
Subjects: domestic market, freedom to provide services, liberalisation of trade, maritime cabotage, maritime transport

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 24.02.2000
COM(2000) 99 final

REPORT FROM THE COMMISSION

THIRD REPORT ON THE IMPLEMENTATION OF COUNCIL REGULATION
3577/92 APPLYING THE PRINCIPLE OF FREEDOM TO PROVIDE SERVICES TO
MARITIME CABOTAGE (1997-1998)

REPORT FROM THE COMMISSION

THIRD REPORT ON THE IMPLEMENTATION OF COUNCIL REGULATION
3577/92 APPLYING THE PRINCIPLE OF FREEDOM TO PROVIDE SERVICES TO
MARITIME CABOTAGE (1997-1998)

TABLE OF CONTENTS

EXECUTIVE SUMMARY .................................................................................................... 3

1.

2.

INTRODUCTION ....................................................................................................... 7

LEGAL DEVELOPMENTS IN THE EU. ................................................................... 8

2.1. Legislation on access to the provision of maritime cabotage services ..................... 8

2.2. The situation concerning the right of access of EU first and second registers to

cabotage................................................................................................................. 8

2.3. The adoption of provisions concerning the imposition of host state rules on

manning for certain cabotage trades ..................................................................... 10

3.

Market developments in the 15 EU Member States. ................................................... 10

3.1. Cabotage trade ..................................................................................................... 10

3.2.

Southern Member States: cargo............................................................................ 12

3.2.1.

Liberalised at 31.12.1997 ....................................................................... 12

3.2.2. Non-liberalised at 31.12.1997................................................................. 13

3.3.

Foreign flag share of cabotage in EU Member States ........................................... 14

3.3.1.

Foreign flag share in the liberalised segments of the Southern
Member States’ cargo trades................................................................... 15

3.3.2.

Foreign flag share in the non-liberalised segments of Southern
Member States’ cargo trades................................................................... 16

3.3.3.

The waiver system.................................................................................. 17

3.3.4.

Foreign flag share in the Northern Member States: cargo........................ 17

2

3.3.5.

Share of DIS and MAR registered vessels............................................... 18

3.3.6.

Foreign flag share in the 15 EU Member States: passengers.................... 18

3.4. The cabotage fleets of the EU Member States. ..................................................... 19

3.5.

Impact of the liberalisation of cabotage during the reference period on
employment ......................................................................................................... 20

4.

THE EXTENSION OF COUNCIL REGULATION 3577/92 TO THE EEA AND
MARKET DEVELOPMENTS IN THE EFTA STATES. .......................................... 20

4.1. Cargo trades in the EFTA States .......................................................................... 21

4.2.

Passenger trades in the EFTA States .................................................................... 21

4.3.

Foreign flag penetration in EFTA......................................................................... 21

4.4. EFTA flags penetration in the 15 EU Member States. .......................................... 22

4.5. The cabotage fleets of the EFTA States................................................................ 22

4.6. Cabotage related employment in Norway and Iceland .......................................... 22

5.

COMPARATIVE MANNING COSTS FOR CARGO VESSELS.............................. 22

Annex I

Overview of cabotage related provisions in the EU and EFTA

countries……………………………………………………………………... 25

Annex II

Overview of cabotage market developments by EU

Member State……….……………………………………………………….. 34

Annex III

Comparative manning costs for cargo vessels……………………………….. 36

3

EXECUTIVE SUMMARY

This is the third two-yearly report by the Commission on the implementation of Council
Regulation 3577/92 relating to the freedom to provide maritime cabotage services in the EU
and covers the period 1997-1998. As in the previous reports, the present report deals with the
legal and market developments in the EU Member States and in the EFTA States, with the
extension of Regulation 3577/92 to the EEA and with the comparative manning costs for
cargo vessels.

Concerning the legal developments in the different Member States, it can be pointed out that
under the regulation, all of the Member States first registers have access to EU cabotage. Of
the second registers, the Spanish Special Register of ships and shipping companies of the
Canary Islands (REC) and the Portuguese Madeira (MAR) registers have unrestricted access.
MAR vessels had until recently (August 1999) access to mainland cabotage only. The Danish
International Ship Register (DIS) cargo vessels but not passenger vessels have access. Vessels
registered in the German International Ship Register (ISR) and in the Finnish List of cargo
vessels in foreign traffic should have access on a case by case basis and not have access to
regular/year round cabotage. Several Member States adopted new texts concerning access to
cabotage trades or adapted existing legislation to the regulation. In addition the five Southern
Member States have recently adopted regulations imposing their host state conditions
concerning all matters relating to manning to be applied by EU vessels carrying out island
cabotage services in their waters and for services with vessels smaller than 650 gt.

The Northern Member States already had fully liberalised cabotage when the regulation
entered into force or have fully liberalised them in the meantime. The Southern Member
States traditionally reserved domestic cabotage trades to the national flag. Therefore the
regulation provides for a gradual opening of the Southern Member States’ cabotage markets.

During the reference period of this report, two cabotage segments were liberalised in the
Southern Member States: services involving the transport of strategic goods (oil, oil products,
drinking water) and services by ships smaller than 650 gt. It should be noted in this context
that the Commission has relied for the data in this, as in previous reports, upon work carried
out by a consultant. It appears that when the consultant has collected material for this report
from the Member States, the necessary data has not always been available. For this reason,
some of the data used has involved estimates. In particular, since only estimates were
available for the year 1998 in which the services by ships smaller than 650 gt were liberalised,
the report presents data only for 1997 concerning liberalised cabotage volumes.

The liberalisation of the strategic cargoes led to a substantial increase in the volume of
liberalised cargoes (from 18.1 mln tonnes in 1995 to 43.15 mln tonnes in 1997) which more
than doubled from 13% of the total South European trade volume in 1993 to 31% in 1997.
However, this increase has not, during the reference period of this report, been followed by a
similar increase in the market penetration of non-domestic flags.

The foreign flag share (including non-national EU carriers and third country carriers) in the
total cabotage trades of the South European Member States developed from 8.35 mln tonnes
in 1995 to 9.05 mln tonnes in 1997.

The participation of non-national EU carriers in the liberalised sector of the southern
European cabotage on the basis of the Regulation decreased in relative terms from 9.4% of

4

the liberalised cargoes during 1995 to 8.1% in 1997 but increased in terms of volume carried
from 3 mln tonnes to 5.75 mln tonnes. There was an increased participation of other EU
vessels in the French cabotage in liquid products, of Spanish owned MAR vessels in Spanish
cabotage and of other EU vessels in the Italian specialised cargo cabotage sector. These
developments did not substantially affect the national markets since the same vessels operated
before in French and Spanish cabotage under waivers and the Italian fleet has never had
specialised vessels in its own fleet. The participation of non-EU carriers through waivers in
the liberalised sector decreased as well in relative terms from 7% in 1995 to 5.2% in 1997 of
the total liberalised cargoes but increased in terms of volumes carried from 1.3 to 2.25 mln
tonnes, particularly in Spain.

In the non-liberalised southern European cabotage, the carriage by waivers by non-
national vessels decreased from 5.35 mln tonnes in 1995 (of which 0.5 mln tonnes was carried
by non-EU carriers and 4.85 mln tonnes by EU carriers ) to 3.3 mln tonnes in 1997 (of which
2.0 mln tonnes were carried by non-EU carriers and 1.3 mln tonnes by EU carriers). However,
the participation of non-EU flags in the protected trades through waivers increased nearly
fourfold during this period, particularly in Spain also.

A total of 4.25 mln tonnes were carried by non-EU carriers under waivers in 1997 as
compared to 1.8 mln tonnes in 1995 in the South European cabotage trades.

As far as the involvement of the DIS and MAR vessels is concerned, MAR vessels are
active in Portuguese and Spanish cabotage trades. DIS vessels operate in other EU countries
mainly in container feeder trades and with specialised vessels. No increase in MAR
involvement in other EU trades since 1995 has been recorded. There was no involvement of
non-national flag vessels in passenger cabotage trades.

It is to be expected that the liberalisation of island cabotage from 1 January 1999, and in
particular of the roll-on/roll-off ferry segment, may have a more significant impact on the
market in terms of non-domestic flag share. There are two reasons for this: it is a relatively
important segment and a number of current public service contracts, at present benefiting
domestic companies, are expected to attract interest from companies in other Member States
when they come to be tendered. The first results of liberalisation of island cabotage and the
ferry segment will be the subject of the next report covering the years 1999-2000.

The liberalisation of the strategic products and of services by vessels less than 650 gt had no
noticeable impact on cabotage related employment in the South European Member States
since it had no effect on the number of vessels on these trades nor on the numbers of EU
seafarers employed.

During the reference period Regulation 3577/92 was finally extended to the EEA by
Decision of the EEA Joint Committee of 4 October 1997, which entered into force on 1
August 1998. It grants full access to EU cabotage trades for Norwegian and Icelandic flag
vessels and full access to Norwegian and Icelandic cabotage trades for EU vessels. However,
the Norwegian International Ship Register (NIS) vessels do not have access to EU cabotage
under Regulation 3577/92 and, as a consequence, these vessels will not be able to carry out
cabotage in the EU on the basis of the Regulation. On that occasion, Norway made a
statement by which it declares that it does not have the intention of amending its law
concerning the Norwegian International Ship (NIS) Register in respect of access of NIS
registered vessels to the Norwegian cabotage. Fleet developments were only significant for
the NIS fleet which increased by 4% from 1995 to 1997. Apart from the NIS vessels, EFTA

5

vessels continue to have only a minor involvement in the cabotage trades of the EU Member
States.

With regard to crew costs for cargo vessels for 1998 the report shows that the second
registers continue to have the lowest crew costs. The MAR flag would seem to be the
cheapest flag to operate together with the DIS followed closely by the Dutch flag, the NIS and
the REC. The French, Swedish, and Belgian registers are the most expensive. The Icelandic
and Norwegian registers are slightly less expensive than the latter. Changes in the state aid
regimes for the different registers during the reference period have only minimally affected
their relative position among the EU and EEA registers.

6

1.

1.

INTRODUCTION

This is the third report on the implementation of Council Regulation 3577/921, which
entered into force on 1 January 1993 and provides for a staged introduction of the
freedom to provide maritime cabotage services within the EU. The regulation provides
that every two years the Commission shall present to the Council a report on the
implementation of the regulation and,
forward any necessary
proposals. It also provides that the Commission shall make an in-depth examination of
the economic and social impact of the liberalisation of island cabotage and submit a
report to the Council by 1 January 1997, on the basis of which the Commission is to
submit a proposal to the Council which may include adjustments to the manning
nationality provisions of the regulation so that the definitive system be approved by the
Council before 1 January 1999.

if appropriate, put

The first report covering the period 1993-1994 was submitted to the Council on 7
September 1995.

The second report covering the period 1995-1996 was presented on 18 June 1997 and,
as provided for in the Regulation, included an examination of the possible economic and
social impact of liberalisation of island cabotage. On the basis of this report, the
Commission adopted on 29 April 1998 and submitted to the Council a package2
consisting of:

• a Communication on a common policy on manning of regular passenger and ferry services

operating in and between Member States, and

• a proposal for a Council regulation amending Council Regulation 3577/92 and

• a proposal for a Council directive on manning conditions for regular passenger and ferry

services operating between Member States.

It is not proposed to discuss this communication or these proposals, which are presently
before Council, in the present report.

2.

This third report covers the period 1997-1998 during which two more cabotage trades
in mainland cabotage were liberalised in the five Southern Member States: the transport
of strategic goods as from 1.1.1997 and services by ships smaller than 650 gt as from
1.1.1998 and deals with the same basic areas as the two previous reports:

• Chapter 2: a report on legal developments introduced by the Member States in

implementation of the Regulation.

• Chapter 3: market developments in EU cabotage

• Chapter 4: the extension of Regulation 3577/92 to the EEA by Decision 70/97 of EEA

Joint Committee and the market developments in the EFTA States’ cabotage sectors.

1

2

Council Regulation No 3577 of 7 December 1992 applying the principle of freedom to provide services
to maritime transport within Member States (maritime cabotage). O.J. L 364 of 12.12.92, p. 7.
COM(1998) 251 final of 29.4.1998.

7

• Chapter 5: comparative manning costs for cargo vessels.

3.

2.

This report is presented for information to the European Parliament, the Economic and
Social Committee and the Committee of the Regions.

LEGAL DEVELOPMENTS IN THE EU.

2.1.

Legislation on access to the provision of maritime cabotage services

Those Member States which have specific cabotage legislation have adapted their national
provisions traditionally restricted to national carriers in order to comply with the regulation
(Spain by Law 27/92, Portugal by Decree Law 368/93, Germany by Law of 15 July 1994). A
Commission infringement procedure is still pending against France for maintaining national
legislation which is not in conformity with the regulation. Austria and Luxembourg have no
cabotage legislation. Neither do Belgium, Denmark, Ireland, the U.K. or the Netherlands
because they have an open coast policy. Following accession on 1 January 1995, Finland
adapted its legislation to the regulation by Act 1362/94 of 22 December 1994 and Sweden by
Decree 1995:961 of 1 June 1995. Annex I contains an overview of the main legal and fiscal
provisions in the EU and EFTA countries concerning access to cabotage, crew nationality
requirements for first and second registers, vessels ownership requirements and fiscal regime.

During the period 1997-1998, the following legal developments took place in Member
States:

Greece adapted its legislation to the regulation by Presidential Decree 117/97 and Presidential
Decree 84/98, following an infringement procedure.

Italy adapted its legislation (‘Codice della Navigazione’) by Law 30/98 of 27 February 1998
following an infringement procedure.

Spain adopted Royal Decree 1466/1997 of 19 September 1997 determining the legal
framework of regular maritime cabotage lines and maritime services of public interest.

Portugal adopted Decree Law 194/98 of 10 July 1998. This text was partially amended by
Decree-law of 20 August 1999.

Compatibility of the texts of Spain and Portugal with the regulation is being examined by the
Commission in the context of the relevant infringement procedures.

2.2.

The situation concerning the right of access of EU first and second registers to
cabotage.

Under the Member States’ national laws, there are no restrictions concerning access of first
registers to their own cabotage markets. The situation concerning access of second-register
vessels to domestic cabotage is the following:

Germany: Vessels used in international traffic for the greater part of a financial year must be
registered in the international register (ISR) and benefit from certain fiscal advantages (‘Flag
protection law’ and ‘Income tax law’ as amended by the Law amending the technical and
fiscal conditions in maritime transport to meet international standards’ of 18 September
1998).

8

Finland: Only cargo or mainly cargo vessels registered in the first Finnish register which are
less than 20 years old and predominantly used in international traffic may be registered in the
‘List of merchant vessels in international trade’ (Law 1707/1991 as amended by Law
1611/1992). Passenger vessels fulfilling the above requirements and not operating regularly
between Nordic ports may also be entered in that list. Vessels employed solely in national
cabotage may not.

Denmark adopted Law 464 of 12 June 1996 amending the law on the Danish International
Ship Register (DIS) in order to allow DIS cargo vessels access to Danish cabotage trades. DIS
passenger vessels are not allowed access to Danish cabotage.

During the period 1997-98, the following legal developments took place:

Portugal adopted Decree Law 31/97 of 28 January 1997 which allowed Madeira (MAR)
registered vessels access to maritime transport between mainland ports. By Decree Law
331/99 of 20 August 1999, MAR vessels have been granted access to island cabotage trades
as well.

Spain adopted Royal Decree 2221/1998 of 16 October 1998 which authorises vessels and
companies devoted to cabotage trade to be registered in the special register of ships and
shipping companies of the Canary Islands (REC). This text completes the staged access of
REC vessels to domestic trades.

Italy adopted Law 30/98 of 27 February 1998 creating the Italian international register for
vessels carrying out international trades.

Under the regulation, in order to be admitted to other Member States’ cabotage markets,
Community shipowners must operate vessels registered in and flying the flag of a Member
State and these ships comply with all the conditions for carrying out cabotage in that Member
State. In other words, they must be admissible to their domestic cabotage.

All of the EU Member States’ first register vessels fulfil the requirements under the regulation
to be admitted to other Member States’ cabotage. Of the vessels registered in the EU Member
States’ second registers, the following fulfil the requirements to carry out cabotage in other
EU Member States:

- vessels registered in the Spanish REC register

- vessels registered in the Portuguese MAR register

- DIS cargo vessels but not passenger vessels

- German ISR vessels on a case by case basis and not in regular/year round cabotage, and

- Finnish vessels entered on the ‘List of merchant vessels in international trade’ on a case by
case basis and not in regular/year round cabotage .

The following vessels registered in the EU Member States’ second registers do not have
access to other EU Member States’ cabotage:

- vessels registered in the Italian second register

9

2.3.

The adoption of provisions concerning the imposition of host state rules on
manning for certain cabotage trades

With a view to liberalisation of island cabotage on 1 January 1999 and in implementation of
Article 3 of the regulation, Italy, Spain, Greece, France and Portugal have adopted
legislation or administrative provisions imposing their host state rules on manning for island
cabotage (except where the voyage concerned follows or precedes a voyage to or from
another state) and for services with vessels smaller than 650 gt. France adopted ‘Decree
99/195 of 16 March 1999 concerning the application of host state conditions in conformity
with Regulation 3577/92 of 7 December 1992 applying the principle of freedom to provide
services to maritime transport within Member States (maritime cabotage)’. Spain adopted the
‘Order of 22 July 1999 establishing the manning conditions for vessels carrying out island
cabotage’. These texts have been cleared as compatible with the regulation. Other national
texts are currently being examined by the Commission.

3.

MARKET DEVELOPMENTS IN THE 15 EU MEMBER STATES.

3.1.

Cabotage trade

the
The Northern Member States (Belgium, Denmark, Finland, Germany, Ireland,
Netherlands, Sweden, and UK) have fully liberalised trades. During the reference period of
this third report, two more cabotage sectors were liberalised under the terms of the regulation
in the southern Member States (France, Greece, Italy, Portugal, Spain): the transport of
strategic goods (oil, oil products and drinking water) on 1 January 1997 and services by
vessels smaller than 650 gt on 1 January 1998. The following services remained non-
liberalised in the southern Member States in the reference period:

In mainland trades:

- regular passenger and ferry services, protected until 1 January 1999.

In island trades:

- island cabotage (including Ceuta and Melilla and the French overseas departments),
protected until 1 January 1999.

- regular passenger and ferry services and services provided by vessels less than 650 gt in
Greece which will be liberalised at 1 January 2004.

Although it has become increasingly difficult to obtain reliable data on this subject due to the
fact that certain Member States do not record data on cabotage movements any more, it has
been estimated that the total volume of cabotage trades in the EU Member States developed
from 239 mln tonnes in 1993 (EU 12: 221 mln tons plus 18 mln tons: FIN and SWE), through
262 mln tonnes (EU 15) during 1995, to 265.3 mln tonnes in 1997 (EU 15)3.

Of this last volume island trades account for 139.7 mln tons (52,7%) and mainland trades for
125.6 mln tonnes. In 1993 the island trades (EU 12) accounted for 51% of the total volume
and in 1995 they accounted for the same percentage (EU 15).

3

In the previous report the figures given for 1993 and for 1995 were slightly different due to a double
count error for one Member State (D) and to the fact that provisional data has now been confirmed.

10

Out of the total 265.3 mln tons of cabotage trades in 1997, 125.85 mln tons corresponded to
North European cabotage and 139.45 mln tons to South European cabotage.

Table 1

Summary of cabotage cargo trade volumes in EU countries 1993 – 1997 (mln
tonnes)

Area

North (Belgium, Denmark Finland,
Germany, Ireland, Luxembourg, Netherlands,
Sweden, United Kingdom)

South (France, Greece, Italy, Portugal, Spain)

Total EU 12

Total EU 15

1993

95.4

125.6

221

(239)

1995

127.75

134.3

n.a.

262.05

1997

125.85

139.45

n.a.

265.3

Annex II presents a detailed overview of cargo cabotage developments since 1992. In most of
the Member States trade volumes did not alter significantly.

In the period of reference the passenger trades in the Northern Member States were liberalised
and the ones in South Europe were still protected, except for mainland cruise services which
were liberalised by 1.1.1995. There is no domestic passenger traffic taking place in the
Netherlands, Belgium or in Ireland. The United Kingdom (estimated at 40 mln passengers)
and Germany (estimated at 5 mln passengers) are important, but no longer record this data.
The decrease in Denmark was the result of the opening of the fixed link between the islands
of Fyn and Sjaeland in 1997. The fluctuations in Italy and Spain are attributed to “the
economic climate”.

The passenger figures entered in Table 2 concern predominantly ferry passengers, crossing
between two ports. Included in these figures are approximately 500.000 domestic (touristic)
cruise passengers, which were carried in Greek waters during 1997.

11

Table 2

Passenger trades in EU – 1997 (mln passengers)

North Europe (liberalised)

South Europe (protected)

Country

Denmark

Finland

Sweden

U.K.4

Germany5

1995

21.5

4.0

1.1

40.6

3.3

1997

16.4

3.4

1.1

40.0

5.0

Country

France -
Corsica

Oth. Routes

Greece

Italy

Portugal

Spain

1995

1.3

1.95

36.0

38.0

0.4

7.1

Total

70.5

65.9

Total

84.75

1997

1.28

2.0

41.36

37.2

0.35

6.5

88.63

3.2.

Southern Member States: cargo

In the period of reference the ongoing liberalisation affected only the Southern Member
States. The strategic cargoes in mainland cabotage were added to the liberalised trade sector
on 1.1.1997. At this date out of the total 139.45 mln tons of South European cabotage trades
the liberalised cargoes amounted to 43.15 mln tonnes and the non-liberalised cargoes
amounted to 96.3 mln tons .

Since only estimations are available for the mainland cargoes carried by vessels <650 gt
which were liberalised on 1 January 1998, it has only been possible to provide the exact
figures for liberalised versus protected cargo volumes at 31.12.1997.

3.2.1.

Liberalised at 31.12.1997

The cabotage trades liberalised by 31.1.1997 involved all mainland cargoes carried by vessels
exceeding 650 gt and amounted to 43.15 mln tonnes. The liberalisation of the ‘strategic’ cargo
section, as from 1 January 1997, led to a substantial increase in the volume of liberalised
cargoes which more than doubled from 1993 to 1997 (13% of the total South European trade
volumes in 1993 to 31% during 1997).

4

5

6

Consultant’s estimate.
Consultant’s estimate.
Comprising: 13,8 mln long distance, 27 mln local crossings and 0.5 mln cruise passengers.

12

Table 3

Southern Member States liberalised cargo trades by market segments 1993,
1995 and 1997 (million tonnes).

Category

Dry bulk

Liquid bulk

General cargo

Total

Year

1993

1995

1997

1993

1995

1997

1993

1995

1997

1993

1995

1997

France

Greece

Italy

Portugal

Spain

1.1

1.9

5.1

0.1

3.7

1.1

2.8

4.9

-

1.7

2.8

6.1

-

3.2

2.7

Totals

11.9

12.0

13.3

0.5

-

0.6

0.1

0.8

2.0

0.5

0.5

0.6

-

0.55

4.6

5.9

4.2

3.5

6.7

-

0.2

2.1

-

-

0.1

3.6

-

-

0.1

4.6

-

0.3

0.25

0.25

1.6

2.1

7.8

0.2

4.8

1.6

3.4

9.1

-

6.3

8.8

14.9

3.5

4.0

9.65

2.15

24.9

2.6

3.95

4.95

16.5

18.1

43.15

3.2.2. Non-liberalised at 31.12.1997

The non-liberalised cargo volumes in Southern Europe for 1997 included mainland services
by vessels <650 gt (liberalised on 1 January 1998), regular mainland passenger and ferry
services (liberalised on 1 January 1999) and island cabotage (liberalised on 1 January 1999
except for regular passenger and ferry services and services provided by vessels of less than
650 gt in Greek island cabotage). Out of the total of 96.3 million tonnes of protected cabotage
cargoes in 1997, 92.9 million tonnes corresponded to island cabotage and 3.4 million tonnes
to mainland cabotage .

Table 4

Southern Member States non-liberalised cargo trades by market segment 1993,
1995 and 1997 (million tonnes)

Category

Dry bulk

Liquid bulk

General cargo

Total

Year

1993

1995

1997

1993

1995

1997

1993

1995

1997

1993

1995

1997

France

Greece

0.5

6.8

0.7

7.3

0.2

6.9

6.3

7.5

4.8

8.5

0.5

1.1

2.75

2.9

0.8

2.7

0.8

2.6

7.9

6.3

1.5

17.2

18.5

12.25

Italy

13.5

13.8

13.1

27.1

26.9

27.2

10.4

10.5

12.8

51.0

51.2

53.1

Portugal

Spain

0.5

1.2

0.3

1.7

0.3

2.0

4.5

4.7

0.5

0.9

1.0

1.2

5.9

6.0

2.0

15.6

21.35

13.2

10.3

11.15

12.25

27.1

34.2

27.45

Totals

22.5

23.8

22.5

61.0

66.25

44.15

25.6

26.15

29.65

109.1

116.2

96.3

The total protected transport volumes by vessels <650 gt amounted to 5.3 mln tonnes 1997.
The mainland part of these transport volumes was liberalised on January 1st 1998. It is
estimated that this concerned around 2.15 mln tonnes of cargo transport.

13

3.3.

Foreign flag share of cabotage in EU Member States

In 1995 the non-national transport share in the total South European cargo volumes was 8.35
mln tonnes or 6%. Due to the liberalisation of the strategic cargoes the non-national transport
share increased in 1997 to 9.05 mln tonnes (6.5% of total South European cargo volumes).
Table 5 provides the flag involvement in the South European trades by flag category and
identifies also the volumes which are still protected.

Table 5

Flag shares in the total cabotage trades of the Southern Member States (mln
tonnes)

Country/flag

1995

1997

Mainland.

Island

Total

Mainland

Island

Total

7
Protected
5.0

8.7

4.9

4.3

9.9

32.8

France – Total
National
Other EU
Non-EU
Greece – Total
National
Other EU
Non-EU

Italy – Total
National
Other EU
Non-EU
Portugal – Total
9
National

Other EU

10

Non-EU

Spain – Total

11

National

Other EU
Non-EU

Total S. Europe
National
Other EU
Non EU

Total

6.6
5.5
0.5
0.6
12.1
12.0
0.05
0.05

14
13.7
0.1
0.2
4.3
-
4.25
0.05

13.9
11.8
1.4
0.7

50.9
43.0
6.3
1.6

1.3
1.25
0,05
-
9.8
9.8
-
-

46.3
46.3
-
-
1.7
1.7
-
-

24.3
23.9
0.2
0.2

7.9
6.75
0.55
0.6
21.9
21.8
0.05
0.05

60.3
60.0
0.1
0.2
6.0
1.7
4.25
0.05

38.2
35.7
1.6
0.9

83.4
82.95
0.25
0.2

134.3
125.95
6.55
1.8

Total

6.5
4.6
1.4
0,5
10.7
10.5
0.1
0.1

15.9
14.95
0.8
0.15
3.6
3.55
-
0.05

9.85
7.0
1.4
1.45

46.55
40.6
3.7
2.25

8
Protected
0.2

1.9

1.0

0.1

0.2

3.4

1.3
1.1
0,2
-
10.35
10.35
-
-

52.1
52.05
-
0.05
1.9
1.9
-
-

27.25
24.4
0.9
1.95

92.9
89.8
1.1
2.0

7.8
5.7
1.6
0.5
21.05
20.85
0.1
0.1

68.0
67.0
0.8
0.2
5.5
5.45
-
0.05

37.1
31.4
2.3
3.4

139.45
130.4
4.8
4.25

Table 5 identifies the changes which occurred between 1995 and 1997 in the national shares
by Member State. From this table it is clear that national flag shares only decreased in a
significant way for France and Spain. In France the share of national flag decreased by 12%
(1 mln tonnes) in favour of other EU flags whose share increased from 4.5% in 1995 to over

7

8

9

10

11

Non liberalised trades: strategic cargoes, transport with vessels < 650 gt and mainland ferry services.
Liberalised, except for transport with vessels < 650 GT and mainland ferry services.
1995: excluding MAR which at the time operated in national cabotage through waivers. 1997: including
MAR.
For 1995 including MAR.
Including REC.

14

20% in 1997. This concerned mainly the transport of strategic cargoes which after the
liberalisation changed from French to other EU flags.

The foreign flag share (including non-national EU carriers and third country carriers) in the
total cabotage trades of the South European Member States developed from 8.35 mln tonnes
in 1995 to 9.05 mln tonnes in 1997 In Spain the share of the national flag (including the REC
register) decreased by 4.3 mln tonnes in favour of other EU vessels (mainly MAR) and
specially of non-EU vessels. The REC register carries the bulk of the cabotage volumes. In
1995 REC vessels carried 3 mln tonnes of nearly all mainland cargoes. During 1997 their total
involvement had increased to 16.8 mln tonnes of which over 10 mln tonnes of island cargoes.
The MAR vessels operating in Spain are Spanish owned and were responsible in 1997 for 1.1
mln tonnes (3%) of the total cabotage transport volume in Spain. The non-EU tonnage,
however, carried 9% of the same volume (primarily Malta, Cyprus and Antigua & Barbuda)
both in the liberalised and the non-liberalised sectors.

In Italy although the share of the national flag decreased only slightly, there was a significant
increase in the share of other EU vessels (from 0.1 to 0.8 mln tonnes) in the liberalised
specialised (e.g. heavy loads) Italian cargo sectors. Since there are no specialised vessels in
the Italian fleet, the Italian shipping industry has not been affected by this increase.

In the case of Portugal the volumes carried by the MAR fleet in 1995 were included in the
previous report under the volumes carried by non-national EU vessels because they operated
in Portuguese cabotage through waivers. As from 1997, MAR vessels were admitted to
Portuguese mainland cabotage and the volumes carried by these vessels are therefore included
in the national share for 1997.

Participation of Swedish and Finnish vessels in South European markets is incidental.

Table 6

Development of the transport share of national flags by Southern Member
State (%) 1995-1997

Country
France
Greece
Italy
Portugal
MAR
Spain (incl. REC)

1995
85.4
99.5
99.5
28.3
70.0
93.5

1997
73.1
99.0
98.5
34.2
64.0
84.5

3.3.1.

Foreign flag share in the liberalised segments of the Southern Member States’ cargo
trades

In 1997, out of the 43.15 mln tonnes liberalised trade, 5.75 mln tonnes or 13% of the
liberalised cargoes were carried by non-national vessels from other EU or non-EU country
registers. Compared to the corresponding figure for 1995 (3 mln tonnes in 1995 or 16.6% of
the liberalised cargoes), there was a decrease in the participation of non-national vessels in
relative terms but there was an increase in terms of volumes transported.

15

The participation of non-national EU carriers in the liberalised sector of the Southern
cabotage market on the basis of the Regulation decreased in relative terms from 9.4% of the
liberalised cargoes during 1995 to 8.1% in 1997 but increased in terms of volume carried
from 3 mln tonnes to 5.75 mln tonnes. There was an increased participation of other EU
vessels in the French cabotage in liquid products, of Spanish owned MAR vessels in Spanish
cabotage and of other EU vessels in the Italian specialised cargo cabotage sector. These
developments did not substantially affect the national markets since the same vessels operated
before in French and Spanish cabotage under waivers and the Italian fleet has never had
specialised vessels in its own fleet. The participation of non-EU carriers through waivers in
the liberalised sector decreased as well in relative terms from 7% in 1995 to 5.2% in 1997 of
the total liberalised cargoes but increased in terms of volumes carried from 1.3 to 2.25 mln
tonnes, particularly in Spain.

Table 7 identifies the flag involvement in the liberalised sections of the South European
Member States.

Table 7

Flag shares in liberalised Southern Member States’ cargo volumes (1995 –
1997) mln tonnes

Country

Total cabotage
trade

Of which
liberalised

EU flag
involvement

Non-EU flag
involvement

Total foreign flag
involvement

1995

1997

1995

1997

1995

1997

1995

1997

1995

1997

France

Greece

Italy

7.9

21.9

60.3

Portugal

6.0

7.8

21.05

68.0

5.5

38.2

37.1

Spain

Total

1.6

3.4

9.1

-

4.0

6.3

8.8

14.9

3.5

9.65

0.25

0.05

0.1

-

1.3

1.7

1.2

0.1

0.8

-

1.4

3.5

0.3

0.05

0.5

0.1

0.2

0.15

0.55

0.1

0.3

0.05

0.05

0.05

0.7

1.3

1.45

2.25

2.0

3.0

1.7

0.2

0.95

0.05

2.85

5.75

134.3

139.45

18.1

43.15

3.3.2.

Foreign flag share in the non-liberalised segments of Southern Member States’
cargo trades

The non-liberalised cargoes totalling 96.3 mln tons in 1997 (116.2 in 1995) were in principle
exclusively reserved to the national flags. However, in 1997 an estimated 3.3 mln tonnes
(3.4%) were carried by non-national vessels through waivers where national flag vessels were
not available as compared to the 5.35 mln tonnes (4.6%) carried through waivers in 1995. In
1997, out of the 3.3 mln tonnes carried through waivers, 1.3 mln tonnes (1.3%) were carried
by non-national EU vessels and 2.0 mln tonnes (2%) by non- EU vessels. This compares with
the 1995 figures where, out of the 5.35 mln tonnes carried through waivers, 4.85 mln tonnes
(4.1%) were carried by non-national EU vessels (including MAR) and 0.5 mln tonnes (0.4%)
by non-EU vessels.

Compared with the previous report the number of waivers granted in the non-liberalised
trades decreased noticeably in all Southern Member States with the exception of Spain and, to
a lesser extent, Italy. This was entirely due to the liberalisation of the strategic cargo sectors.
However,
the participation of non-EU flags in non-liberalised trades through waivers
increased, in total, nearly fourfold during this period.

16

Two developments are of importance here: the MAR fleet, which played an important role in
1995 in the non liberalised sector through waivers, was active in the reference period in the
liberalised sector. However, non-EU flags increased their transport share significantly in the
protected Spanish trades and were responsible for nearly 2 mln tonnes of transport in this
sector. At the same time, EU flags trebled their share in these Spanish trades.

Table 8

Flag shares in non-liberalised Southern Member States’ cargo volumes (1995 –
1997) mln tonnes

Country

Total
trade

cabotage

Of which non

EU flag

Non-EU flag

Liberalised

Involvement

Involvement

Total foreign flag
involvement

1995

1997

1995

1997

1995

1997

1995

1997

1995

1997

1.5

0.3

0.4

0.3

France

Greece

Italy

7.9

21.9

60.3

Portugal

6.0

7.8

21.05

68.0

5.5

6.3

18.5

51.2

6.0

12.25

53.1

2.0

-

-

4.25

Spain

Total

38.2

37.1

34.2

27.45

0.3

134.3

139.45

116.2

96.3

4.85

-

-

-

0.9

1.3

-

-

-

0.2

0.5

-

-

0.05

-

1.95

2.0

0.6

-

-

4.25

0.5

5.35

0.4

-

0.05

-

2.85

3.3

3.3.3.

The waiver system

Despite liberalisation, in 1997 a total 4.25 mln tonnes (2.25 mln tonnes in the liberalised
sector and 2.0 mln tonnes in the non-liberalised sector) as compared to 1.8 mln tonnes (1.3
mln tonnes in the liberalised and 0.5 mln tonnes in the non-liberalised sector) in 1995, were
carried by waivers by non-EU carriers in the Southern Member States’ cabotage trades. This
constitutes a 136% increase in the volume carried by non-EU vessels.

3.3.4.

Foreign flag share in the Northern Member States: cargo

The Northern Member State trades are fully liberalised and open to other EU flags. In some of
these Member States non-EU vessels require waivers (Germany, Finland, Sweden) unless
they have been granted access on the basis of bilateral agreements. In the other Northern
Member States third country vessels can participate on the same basis as EU vessels. The
degree of foreign participation varies considerably from one Member State to the other. In
Denmark, such data are not collected and only estimates for national flag shares are provided.
Austria and Luxembourg have no cabotage trade. The limited volumes in Belgium and the
Netherlands are fully transported by national flag vessels. Table 9 provides an overview of the
development of foreign flag participation in the Northern European Member States’ cabotage
trades.

17

Table 9

Flag shares in total cabotage trades of Northern Member States - 1995 / 1997
(mln tonnes)

Country/flag

1995

1997

Country/flag

1995

Finland – Total

National

Other EU

Non EU

Ireland – Total

National

Other EU

Non-EU

U.K.–Total12

National13

Other EU

Non-EU

5.9

5.1

0.75

0.05

0.7

0.03

0.5

0.17

62.3

15,8

18.0

28.5

7.15

6.3

0.85

-

0.75

0.03

0.55

0.17

63.2

8.8

15.9

38.5

Germany – Total

National

Other EU

Non-EU

Sweden – total

National

Other EU

Non-EU

Denmark –Total

National

Other EU

Non-EU

3.9

3.25

0.6

0.05

13.6

11.5

NA

NA

19.2

10.0

NA

NA

1997

4.0

2.75

0.3

0.95

12.95

10.25

0.9

1.8

19.35

10.0

NA

NA

3.3.5.

Share of DIS and MAR registered vessels

7 MAR vessels (out of 25 Portuguese owned units) now dominate the Portuguese oil trades.
The other Portuguese owned MAR vessels operate worldwide. MAR registered vessels are
also much present in Spain. The number of Spanish owned MAR vessels increased from 34 in
1996 to 45 in 1998. At least half operate in the Spanish domestic trades. The remaining
Spanish owned MAR vessels operate worldwide.

DIS cabotage relevance is still mainly limited to container feeder activities: 25 of these
vessels operate in cabotage trades, half of which in Southern Member States. Additionally
some 50 non-container vessels are active in cabotage trades, but only 10-15 in South Europe
(chemical and gas tankers and other specialised vessels). Since the last report there has been
no increase recorded in their market participation in cabotage trades.

3.3.6.

Foreign flag share in the 15 EU Member States: passengers

As for the period covered by the previous report, in 1997-1998 there was no non-national flag
involvement in domestic passenger trades of EU Member States.

12

13

Excludes 1-port offshore traffic (15 mln tonnes in 1995/18 mln tonnes in 1997) for which flag data is no
longer published.
Incl. Gibraltar, Channel Islands, Isle of Man.

18

3.4.

The cabotage fleets of the EU Member States.

In many cases it is hardly possible to identify the cabotage fleets in northern Member States,
with the consequence that the fleets which are listed hereunder comprise all tonnage which
potentially could have participated in cabotage activities (short-sea fleets <10,000 DWT) with
the exception of the Danish and Finnish first register fleets and the Swedish fleet which only
include vessels operating in cabotage. A number of fleets have no, or hardly any, cabotage
relevance: Austria, Belgium, DIS and Ireland. The fleets of Germany, Netherlands and the
UK participate occasionally in northern cabotage trades.

During the period of reference the German and Dutch fleets increased significantly. In
Belgium, Ireland and the U.K. the fleets decreased. The DIS fleet did not vary significantly in
terms of tonnage. Overall the number of vessels in the total North European Member States’
fleets increased by only 73 vessels, while the deadweight tonnage increased by nearly 4%.

Table 10

Cabotage fleets of Northern Member States (GT and DWT x 1000)

Country

1996

1998

Austria

Belgium

Denm. – convent.

Denmark – DIS

Finland

Germany14

Ireland

Netherlands

Sweden

United Kingdom

Number GT – tonnage – DW

Number

GT – tonnage – DW

29

17

127

448

105

373

49

248

152

470

60

66

213

5,318

356

550

98

480

103

1,365

100

36

88

7,584

338

866

134

680

150

956

22

7

114

479

125

431

35

299

144

435

68

6

384

5,318

358

615

88

615

104

964

94

10

105

7,398

385

1,113

120

870

155

1,099

Total North Europe

2,018

8,609

10,932

2,091

8,520

11,349

For southern Member States, the various fleets also contain vessels which operate both
nationally as well as in international trades.

The South European Member States’ fleets increased significantly: 14% in numbers of
vessels, 23% in terms of gt tonnage and 32% in deadweight. The French fleet virtually
doubled. Due to the replacement of smaller by larger vessels, the Greek fleet increased
significantly in tonnage although the number of vessels increased only by ten units. The
Spanish first register fleet decreased but the REC fleet increased in parallel. The MAR fleet
increased drastically in terms of numbers of vessels (from 59 in 1996 to 105 in 1998). The
tonnages, however, remained the same, which points to a considerable decrease in the average
ship size over the reference period (from 18,000 deadweight to 10,500 deadweight).

14

Including ISR.

19

Table 11

Cabotage fleets of South European Member States (GT and DWT x 1000)

1996

1998

Number GT – tonnage – DW

Number

GT – tonnage – DW

Country

France 15

Greece

Italy16

Portugal – conventional

Portugal – MAR
register

Spain

Spain – REC register

27

515

362

15

59

209

65

196

1,900

1,036

120

650

900

541

310

563

1,480

75

1,074

868

750

43

525

476

15

105

193

71

500

2,000

1,668

120

659

830

793

619

800

2,280

76

1,106

781

1,110

6,772

Total South Europe

1,252

5,343

5,120

1,428

6,570

3.5.

Impact of
employment

the liberalisation of cabotage during the reference period on

In 1997 the total cabotage related employment in the Northern EU Member States stood at
17,460 jobs. 60% of personnel on board cargo vessels and 97% of personnel on board ferry
services consisted of EU nationals. 2,100 non-EU seafarers were employed in the cargo sector
and 229 non-EU seafarers in the RoRo/ferry sector.

The total number of persons employed in the South European Member States’ cabotage
amounted to nearly 50,000 persons in 1997 (all EU nationals). This represents a decline of
1,000 jobs since 1995. This was partly due to rationalisation in Italy and to the decrease in the
fleet size of the conventional register in Spain which has not been fully compensated by an
increase in employment in the Spanish REC register.

The liberalisation of the strategic products and of services by vessels less than 650 gt had no
noticeable impact on cabotage related employment in the South European Member States
since it had no effect on the number of vessels on these trades nor on the numbers of EU
seafarers employed.

4.

THE EXTENSION OF COUNCIL REGULATION 3577/92 TO THE EEA AND MARKET
DEVELOPMENTS IN THE EFTA STATES.

By decision 70/97 of 4 October 1997 of the EEA Joint Committee, Council Regulation
3577/92 was incorporated in the EEA Agreement and extended to the EFTA countries. In
order to take into account Member States’ concerns with respect
the
following statement by the government of Norway was entered into the minutes of the above

to the extension,

15

16

The French ‘TAAF register’ (29 vessels with 150,000 GT/206,000 DWT in 1998) has no access to
cabotage trades and is excluded.
Italy’s second register has no access to cabotage trades and is not included in the figures.

20

mentioned EEA Joint Committee decision: “Norway does not have the intention of amending
its law concerning the Norwegian International Ship (NIS) Register in respect of access of
NIS registered ships to the Norwegian cabotage”. Furthermore, in the Transport Council of 11
December 1997 the above mentioned decision was discussed and the following statement was
entered into the minutes of the Council: “The Council and the Commission state that
Norway’s Declaration concerning Decision 70/97 of the EEA Joint Committee constitutes an
extremely important element for the Community as regards its position on the extension of
Regulation (EEC) N° 3577/92 to the EEA. They reserve the right to re-examine this position
and to invoke the appropriate procedures laid down in the EEA Agreement if the Norwegian
position, as expressed in the declaration, were to change in respect of access of vessels
registered in the Norwegian International Ship Register to cabotage”.

Decision 70/97 entered into force on 1 August 1998 following the completion of Norway’s
national procedures and became applicable in Norway and Iceland. It grants full access to EU
cabotage trades for Norwegian and Icelandic flag vessels and full access to Norwegian and
Icelandic cabotage trades for EU vessels, in accordance with Regulation 3577/92.

The legislation on the NIS does not allow NIS vessels into Norwegian cabotage. As a
consequence, these vessels are not able to carry out cabotage in the EU Member States on the
basis of Regulation 3577/92.

4.1.

Cargo trades in the EFTA States

The cargo cabotage trades in the EFTA countries – Iceland and Norway - developed from 36
mln tonnes during 1993 to 40 mln tonnes in 1995 and to 48 mln tonnes in 1997. Over 28 mln
tonnes of the latter volume concerned crude oil arriving in Norway from the continental shelf.

4.2.

Passenger trades in the EFTA States

In Iceland the total number of passengers transported by domestic ferry services amounted to
381,309 in 1997. This compares with 356,280 for 1995. In Norway 44,6 million passengers
were transported in regular ferry services in 1997. This figure compares with 46,5 million in
1994 and 43,214 millions in 1995.

4.3.

Foreign flag penetration in EFTA.

Foreign flag share remained unchanged since 1995 for Iceland as the national flag carried in
1997 100% of the passenger and cargo trades. In Norway, data for 1997 is only available for
14 major ports. The Norwegian flag carried over 77.2% of the mainland cargo trades to and
from these ports (including NIS vessels with waivers) as compared to 76% in 1996. Other EU
flags carried 12.2% of which the U.K. flag carried 6%, the Swedish flag 3.6% and other EU
flags 2.6% (Denmark, Germany, Finland, Greece, Italy, the Netherlands). Non-EU flags
carried the remaining 10%. All passenger transport in Norway is carried out by NOR-
registered vessels.

21

4.4.

EFTA flags penetration in the 15 EU Member States.

Apart from the NIS register, EFTA vessels have only a minor share in the cabotage trades of
the EU Member States. NIS vessels are an exception: their tankers play an important role in
the UK (and Norwegian) offshore oil trades.

Estimates based on 1995 data (more recent data for offshore trades is no longer published)
show that the NIS participation in the UK offshore trades amounted in 1997 to approximately
15% (of around 16.5 mln tonnes). Apart from these volumes NIS vessels carried in 1997 10%
of UK mainland trades (of 63 mln tonnes). This totalled in 1997 approximately 8.5 mln
tonnes carried by NIS vessels divided into 2.5 mln tonnes offshore trade and 6 mln tonnes
mainland cabotage. For both trades it concerned predominantly tankers.

Apart from these trades NIS vessels carried 9% of German cabotage (of 4 mln tonnes) and
minor volumes of specialised cargo in France in 1997.

Icelandic vessels have no relevance in any of the other domestic seaborne trades.

4.5.

The cabotage fleets of the EFTA States.

At 1 January 1998, the Icelandic merchant fleet comprised 15 vessels of 30,666 gt. Since
1995 the fleet declined by two units and 18,000 gt. At the same date, the fleet under the first
Norwegian register (NOR) flag comprised 774 vessels of 2.45 million gt (3.21 million dwt).
This compares with 772 vessels of 2.08 million gt at end-1995. Many of these vessels operate
in the national cabotage trade. At the same date the NIS fleet comprised 683 vessels of 19.63
million gt (30.77 million dwt). This represents a net increase of 13 vessels and 4% in tonnage
capacity since end-1995. This fleet has no domestic cabotage relevance.

4.6.

Cabotage related employment in Norway and Iceland

In Iceland the number of direct and indirect jobs related with the cabotage sector were of
1,249 in 1993. More recent data is not available, but considering that the fleet and trade
volumes have barely changed, no major changes are to be expected. In Norway, the number
of Norwegian seafarers on Norwegian registered vessels for 1998 was 20,500. These vessels,
which operate exclusively in domestic trades, are all manned by nationals.

5.

COMPARATIVE MANNING COSTS FOR CARGO VESSELS

As for the two previous reports, a comparison of manning costs has been carried out for three
ship types which are considered to be representative for cargo cabotage operations. The
manning costs have been calculated taking into account the crew composition, the nationality
requirements and the different salary levels for seafarers and the specific national rules
regarding income tax and social contributions for seafarers. Annex III to the report contains
three tables presenting the main cost results for the three types of cargo vessel (general cargo

22

vessel of 1,500 gt, dry cargo vessel of 3,300gt and products tanker of 9,000 gt). A
comprehensive overview of the results is summarised in Table 12. The results take into
account average crew number and nationality compositions as has been found to be typical for
the fleets of the different countries. They represent the net manning costs to the shipowner,
i.e. gross manning costs minus tax benefits or labour related State aids which applied in the
various countries for 1998.

Table 12

Comparative net manning costs (average EU = 100): general cargo vessel
1,500 gt/dry cargo vessel 3,300 GT and products tanker 9,000 GT (1998)

Register

France

Iceland

Sweden

NOR

Belgium

Kerguelen

Finland

Ireland

Germany

Italy

Denmark

UK

DIS (max)

Greece
ISR)
Portugal

Spain

NIS

Dutch

Canary

MAR

DIS (min)

General cargo 1,500 GT

Dry cargo 3,300 GT

Products tanker 9,000 GT

204

142

133

128

125

113

112

110

110

105

101

92

91

81

78

69

69

57

56

47

40

37

200

120

117

125

108

109

123

105

83

111

137

88

124

83

69

61

101

47

47

55

35

51

173

119

111

161

102

89

107

91

100

111

129

75

116

86

83

70

106

71

57

57

41

44

Since the previous report there have been some amendments to state aid to shipowners which
in the study of comparative manning costs. Whereas the
have been taken into account
availability of state aid has had a significant impact on owners’ net costs in several Member
States in the past (e.g. NL, FIN, S, NOR and second registers), the changes in fiscal benefits
that have been reported over the reference period have only had a limited influence on the
respective rankings, or relative positions, of the flags concerned vis à vis other EU/EEA flags.
The affected flags include the Portuguese, Swedish, Irish, Belgian and the Spanish REC.
The schemes introduced in Germany and France applied only to internationally operating
vessels and the competitive positions of these flags are not affected. In the case of Portugal
changes in state aid affected part of the costs of junior officers and have had a minimal impact
on overall manning costs. The Swedish Shipowners’ Association has advised that changes in
the state aid regime have allowed additional overall savings in gross manning costs of around
1-2% over the 1996 position. Having taken this into account in the comparative analysis of
EU manning costs, the relative competitiveness of the Swedish flag in relation to other EU
registers remains unaffected in the case of the 1,500gt and 3,300 gt dry cargo vessels as
compared with the 1996 position, while its position is slightly improved for the product tanker

23

where Sweden has moved from 5th most expensive flag in 1996 to 6th together with Italy in
1998.

In Ireland, despite the regime of refund of social charges paid by owners, the Irish manning
costs have increased and its relative position compared with other EU flags has also increased
slightly since 1996. The scheme introduced in Belgium as from 1 January 1997 may afford
savings to shipowners of around 20% of owners’ gross costs on the basis of 100% Belgian
crew. However, these savings should be considered to be theoretical since,
in practice,
Belgian vessels are often crewed with non-Belgian seafarers and many are bareboated out to
the Luxembourg register. Finally, the relative competitiveness of the REC register in relation
to other EU flags has not been changed in that it remains in a similar ranked position in 1998
as compared with 1996.

Other differences in the ranking of the different registers with respect to the 1997 report are
due to changes in the source of the data (Iceland, Norway, Belgium,), to the movement of
other flags in the ranking (Kerguelen), to changes in the rates paid (France, Sweden, Italy),
to the devaluation of the currency against the dollar (Greece, Spain) or to changes in the crew
composition used for the calculation (Germany, REC).

The outcome of the crew cost calculations show that the MAR flag is consistently one of the
cheapest to operate under for each of the three representative vessels realising crew savings in
the region of 60% when compared to the average for other EU/EEA flags. The Dutch register
is the lowest cost option for national flags, but still the cost differential in favour of the MAR
register ranges from 13 to 17% for the three vessel types.

Vessels registered under the DIS flag include a significant number of non-EU crew, which is
beneficial for the cost advantage. This is referred to in the Tables as the DIS (minimum) case.
The results of the analysis show that DIS (minimum) flagged vessels can undercut the EU
average from 46 to 61%, depending on the vessel under consideration.

It is worth comparing the DIS (minimum) case with that of the Dutch flag. For the smallest of
the three vessels under comparison the DIS flag was some 20% cheaper to man than the
Dutch flag vessel. For the products tanker this differential falls to 14%; whilst for the 3,300
GT dry cargo vessel the Dutch flag undercut the DIS case by 4%.

The above results should be interpreted with great caution taking into account that crew costs
under the different registers can be influenced by changes in the specific national fiscal
arrangements. Furthermore, as set out in the previous report, crew costs are only a percentage
of the total costs of a cargo vessel. Therefore the results presented in the Tables in Annex III
should not be understood to be yardsticks for the overall competitive position of the different
registers but merely a comparison of crew costs.

24

ANNEX I

Overview of cabotage related provisions in the EU and EFTA countries

Country

Basic Principle on Cabotage Comment

Waiver system

Crew nationality requirements

Vessel ownership requirements

Fiscal regime

1st register

2nd register

1st register

2nd register

Not applicable

None negotiated on
ship by ship basis.

Not applicable

Vessel owned/ managed by EU
citizen/company
in
Austria

domiciled

Not applicable

None
shipping.

applicable

for

Not applicable

Not applicable

Captain should be
citizen,
Belgian
in
waivers
non-
of
case
availability.

given

Vessel owned by Belgian /EU
citizen or a non EU citizen
domiciled in Belgium or by a
company having its registered
office in the EU The vessel must
be managed from Belgium

Not Applicable

security
Social
(total
exemptions
exemption
for
employers’ contribution
exemption
and partial
for
seafarers’
contributions on board
EU vessels).

Not applicable

- Captain must be
Third
Danish.
country
nationals
can be employed on
Danish terms

DIS Register:

- Captain must be
Danish national.

country
-
Third
nationals
be
can
employed on their
national
wage
conditions.

Vessel owned by Danish or EU
persons or companies managed
from Denmark.

DIS Register: see 1st

Roll-over relief.

Register

Seafarers on board DIS
vessels are tax exempted
and paid net wages.

Austria

No maritime cabotage

Belgium

Not restricted

-

-

Denmark

Not restricted except
DIS passenger vessels

for

The reservation of
trades
with vessels of less than 500
grt
to national carriers was
repealed by decree 658/94.

- Decree 658/94 allows all
foreign vessels to participate.

By Law 464
June
of 12
1996
DIS
cargo vessels
were allowed
Danish
to
as
cabotage
per
1
December
1996.
Passenger
vessels
remain
excluded
from Danish
cabotage

25

Country

Basic Principle on Cabotage Comment

Waiver system

Crew nationality requirements

Vessel ownership requirements

Fiscal regime

1st register

2nd register

1st register

2nd register

reductions of
Special
seafarers’
income tax
for vessels flying the
Finnish
(18%
flag
reduction of municipal
tax and 30% of State
tax). The State also
the
participates
to
pension payments
seafarers.

in

tax

A
rebate
of
seafarers’
income tax
refund of
and partial
social security costs is
paid to the employer.
This
is available for
ships listed on the List
in
of Cargo vessels
international Trade. .

- Registration governed by the
Act
Marine
Finnish
(512/1993)
Maritime Code (674/1994)

Registration
and

- List of Cargo Vessels
in International Trade

(Act No 1707/1991)

- >60 percent of the vessel must
be owned by Finnish citizens or
Finnish registered companies.

-
the MOTC permits foreign
owned ships to be registered in
the Finnish register provided
that the operation of the vessel
is undertaken by a Finnish
national or company and that
the person or company owning
the vessel is has its domicile or
residence in the EEA

if

they
in

- Cargo or primarily
cargo vessels may be
are
entered
the
registered
Finnish 1° register.
if
they are primarily used
for foreign traffic and if
they are less than 20
years old.

not
Registration
permitted
for
passenger/car ferries or
vessels engaged only in
cabotage.

Only passenger vessels
operating between third
countries
not
regularly
operating
between Nordic ports
may be entered.

and

Finland

Restricted

governed

by
Cabotage
Section 4 of Restrictive
Trades Practices Act.

- Non EU vessels are
generally prohibited from
entering domestic coastal
trades.

Vessels in the List of Cargo
vessels
International
Trade have restricted access
to cabotage.

in

Island cabotage:

- services operating within
are
islands
the Åland
vessels
to
restricted
registered under the Ålands
flag.

Amending
Act
(1362/
94) of 22
December
1994 to the
Restrictive
Trades
Practices
Act
abolished
restrictions
concerning
cabotage on
EU vessels
as
from
1.1.1995
(accession).

Bilateral

-
agreement
with
Norway
of
applies
NIS

as
1.1.97.
to

Mainland
cabotage:

Master must
Finnish national

be

- Master
national.

Finnish

- Special permits
obtained from the
MOTC for non-EU
vessels
in
mainland cabotage
where no suitable
other
is
available.

vessel

4

-
awarded in 1997

permits

for

Permits

are
-
granted
a
maximum of one
foreign
year
vessels
trading
between Åland and
the mainland.

to

No

-
awarded in 1997.

permits

- at
least half the
crew must consist
of
EEA/EU
citizens.

No
restrictions

other

- Recruitment of
non-EEA
is
crewmembers
permitted
on
certain conditions
of
by
way
derogation
from
the usual collective
labour agreements.

26

Country

Basic Principle on Cabotage Comment

Waiver system

Crew nationality requirements

Vessel ownership requirements

Fiscal regime

1st register

2nd register

1st register

2nd register

France

Restricted

- Art.257 of the 'Code Des
Douanes’ of 11/5/77:

- Only French flag vessels
can
between
participate
metropolitan ports

extends
to

this
- Art.258
reservation
voyages
between ports in one DOM
of
ports
between
and
Guadeloupe, Guyane
and
Martinique.

TAAF
cabotage.

not

allowed

in

A footnote to
Art. 257 in
March
the
1994 edition
of the ‘Code
des Douanes’
refers
to
Regulation
3577/92.

can

Waivers
be
granted for single or
consecutive voyages
to foreign vessels in
case of
identified
demand.

1st Register:

- Master and first
mate
French
citizens.

Taaf
(Kerguelen)
Register: 35% of the
be
crew should
French
nationals,
incl. Captain and 1st
engineer.

(Art.257 ‘Code des
Douanes’).

Other

-
crew
citizens of the EU or
EEA.

- 50% of the vessel must be
owned by a physical person
national of EU/EEA or

TAAF register similar as
1st register.

Partial

-
refunding
corporate tax paid to
local authorities not for
pure cabotage).

-100% of
the vessel must be
owned by a company having its
registered office in EU/EEA and
its operation carried out from a
permanent
in
France.

establishment

refunding

of
-Partial
social security costs in
respect of
international
trade.

(both proportional with
international
of
shipowners’ turnover).

part

27

Country

Basic Principle on Cabotage Comment

Waiver system

Crew nationality requirements

Vessel ownership requirements

Fiscal regime

1st register

2nd register

1st register

2nd register

Germany

Restricted

Regulated in Art. 5:
paragraph 2, 3 'Gesetz über
die Küstenschiffahrt' (Law
on coastal shipping).

Vessels used in international
trade for the greater part of
the financial year, must be
registered in the ISR register.
(Flaggenrechtsgesetz).

Greece

Restricted:

- Regulated in Code of
Public Maritime Law
(CPML). Decree Law 187/73
Arts.165 and 166 reserves
Greek passenger and cargo
cabotage to Greek vessels.
This legislation has been
partly adapted to Reg.
3577/92.

Article 5 of the
‘Gesetz über
Änderung der
Rechtsvorschriften auf
dem Gebiet der
Seeschiffahrt’ (which
came in effect on 23
July 1994) brought
Art. 5 in line with
Reg. 3577/92

Article 2.2 and 2.3 of
the amended ‘Law on
Coastal Shipping’
provides that waivers
to non-EU vessels
may be only granted if
no EU vessels are
available or if they are
available at very
unfavourable
conditions.

- Requirements for
crewmembers are
according to the
‘Schiffsbesetzungs
ordunung’ same for all
German vessels:
Master should be
German national. 1 or
2 officers German or
EU national. Other
crew any nationality.

- Waivers can be
granted also on the
basis of reciprocity.

Same, but:

- Vessels on ISR list,
(operating >half year
internationally) may
employ all foreigners.

- Vessels >half year in
cabotage cannot enter
ISR list and may only
employ foreigners if
nationals are not
available.

>50% ownership/
control by German or
EU

ISR same as
1st register.

- Ships operating solely in
cabotage: no tax relief on
income and no subsidies.

nationals with
representatives
domiciled in Germany
or by German or EU
companies having their
registered office, central
administration or
principal place of
business in the EU. (Art.
1 & 2 of: ‘Flaggen-
rechtsgesetz’).

- Ships operating
internationally may opt
between normal taxation
and the tonnage tax.

-They also benefit from
40% income tax reduction.

Presidential. Decree
215/94 partly
harmonised Greek law
in accordance with
CR.3577/92.

Waivers can be
granted on condition
of reciprocity:

Presidential Decree
12/92 requires:

- Art.166 of CPML

100% of crew of EU
nationals.

Over 1997/98 18
waivers were granted

-Allows access of
other EU vessels in
non-strategic
mainland trades with
vessels>650 GT.

Presidential Decrees
117/97 and 84/98
further partly adapted
Greek legislation to
Reg. 3577/92.

Not applicable

Article 5 of CPML:

Not
applicable

Officers pay 9% income
tax.

>50% of shares of the
vessel must be owned by
Greek nationals or by
Greek legal entities
more than half of whose
capital is held by Greek
nationals.

Court of Justice of the
European Communities
condemned Greece for
failure to fulfil its
obligations on account
of this legislation in its
judgement of 27
November 1997 (Case
C-62/96).

Other crewmembers pay
6% income tax.

-Reduced rate of social
security rate.

-tonnage tax is imposed on
Greek tonnage serving
ports outside Greece.

28

Country

Basic Principle on
Cabotage

Comment

Waiver system

Crew nationality requirements

Vessel ownership requirements

Fiscal regime

1st register

2nd register

1st register

2nd register

Ireland

Not restricted

Not applicable

- Officers to be Irish,
UK, other EU or
Commonwealth citizens.

Not applicable

- Ratings: Irish, UK, or
other EU citizens.

Following the judgement
of the Court of Justice of
the European Communities
of 12 June 1997 in Case C-
151/97, Ireland adopted
the Merchant Shipping
(Miscellaneous provisions)
Act, 1998.

Vessels must be owned by
EU nationals or a body
corporate established
under and subject to the
law of a Member State and
having its principal place
of business in a Member
State.

Not
applicable

- 10% Corporate profits
tax,

- 15% straight-line
depreciation, for the first 6
years, 10% for the 7th year.

- Special reduction in
seafarers’ income tax for
seafarers at sea for at least
169 days per year.

- Reimbursement of social
charges paid by employers
in respect of seafarers on a
MS registered vessel.

Italy

Restricted

Regulated in Article 224 of
the 'Codice della
Navigazione' (Shipping
Code) as amended by Law
30/98. Restricted to
Community vessels.

- Revised art.224 allows
other EU vessels to
participate in Italian
cabotage in accordance
with Reg. 3577/92.

The Ministry of
Transport/
Navigation may
grant waivers on
case by case basis
through special
authorisation.

- Master and chief
officer to be Italian,

- Other crewmembers
Italian or EU citizens
Article 318 ‘Codice
della Navigazione’.

2nd Register, instituted
through law 30/98,
second register vessels
have no access to
cabotage trades

Over 50% vessel shares
must belong to Italian/
Community nationals or to
Italian or EU companies.

Luxem-
bourg

No maritime cabotage

-

Not applicable

Not applicable

Independent register
mainly used by Belgian
owners. Captain EU
citizen, licence
recognised by
Luxembourg. Crew
according to STCW
standards.

29

Same as for
first register
plus bareboat
chartered in
vessels
belonging to
non-EU
owners.

Tax-free reserves of profit
from sale of ships can be
spread over 5 years.

Partial exemption of social
security charges.

Not
applicable

- reduced rate of seafarers’
income tax.

Art.143 CDN, as modified
by law 30 of 27 February
1998.

Owned >50% by nationals
of EU or commercial
companies with registered
office in the EU, if
significant part of
management is handled
from Luxembourg.

Country

Basic Principle on Cabotage Comment

Waiver system

Crew nationality requirements

Vessel ownership requirements

Fiscal regime

Nether-
lands

Not restricted

Not applicable

1st register

2nd register

1st register

2nd register

Not applicable

Captain Dutch national,
other crew according to
STCW standards
certificates recognised
by Dutch authorities.

2/3 vessel must belong
to Dutch national or
legal entities with
EU/EEA nationality.

Not
applicable

- effective exemption of
tax and social security
charges normally payable
by shipowner/ employer.

Decree Law 194/98
replaced Decree Law
386/93 and updates
situation to the
liberalisation of island
cabotage as from
1.1.1999.

Art.5 of same text
allows – subject to
authorisation of the
General Directorate
(DGPNTM) – the
use of other vessels
in case of non-
availability of EU
vessels.

100% Portuguese or EU
nationals. Captain/chief
officer Portuguese,
unless authorisation
obtained in special
conditions

Madeira (MAR) register:
100% Portuguese or EU
crew for access to
cabotage trades.

Portugal

Restricted:

Regulated in Decree Law
194/98:

MAR vessels only had
access to continental
cabotage during the
reference period. They have
been recently granted access
also to island cabotage
trades. (Decree Law 331/99
of 20 August 1999).

Substantial part of
operational
management must be
carried out from the
Netherlands.
Regulated in Dutch
Commercial Code Art.
311.

Regulated by Decree
Law 196/98, which
establishes the
regulatory and legal
context of maritime
transport activities:
Shipowner with
address or head office
and main
establishment in
national territory and
to be registered at
DGPNTM.

- option to apply tonnage
tax or corporate tax on
business results.

Madeira
register:

- Income tax on 30% of
shipwoner’s profit

- (branch)
office or legal
representatio
n in Madeira
island

- No corporate tax in
international waters
(MAR).

-Tax free reserves are
allowed for reinvestment
within 2 years (MAR).

- total relief of social
security charges and
seafarers’ income tax
(MAR).

30

Country

Basic Principle on Cabotage Comment

Waiver System

Crew Nationality Requirements

Vessel ownership requirements

Fiscal Regime

Spain

Restricted – Regulated in
Law 27/1992 on State Ports
and Merchant Marine.

REC vessels have
unrestricted access to
cabotage.

1st register

2nd register

1st register

RD 2221/98, of 16
October 1998, allowed
REC ships to
participate in all
Spanish cabotage
trades (including
island cabotage).

- Art.81 of Law
27/1992 regulates
the possibility for
waivers exceptio-
nally, in case of
non-availability of
Spanish (EU) ships.

- Captain & 1st
officer Spanish
nationals,

- Other crew EU
nationals.

Canary Island
Register (REC):

- captain & 1st
officer Spanish
nationals,

Any Spanish or EU national or
company with representative
appointed in Spain.

(Article 76 Law 27/92).

- Other crew
minimum 50% EU
nationals, possible
waiver for
additional non-EU
crew if EU nationals
not available.

-Up to 1.1.99, if
involved in non-
liberalised trades all
crew to be EU
Nationals

2nd register

Any shipping
company,
established
either in

Spain, EU or in
a third country
may register a
ship under the
REC if vessel is
managed from
the Canaries or
if it has a
permanent
establishment
In the Canary
Islands .

Law 19/1994, modified
last in December 1996,
allows fiscal allowances
for REC registered
vessels.

-90% reduction in
employer Social
Security contribution,

-90% reduction of
Corporate Tax.

-exemption of income
tax with respect to 50%
of seafarers’ income.

Sweden

Restricted

Decree of 1 June 1995
amended 235/75 granted
access to EU vessels.

Trades have been
liberalised for EU
vessels in accordance
with Regulation
3577/92 since 1.1.95
(accession).

Bilateral agreement
with Norway (1989)
applies to NIS.

-Exemptions are
granted by the
Swedish Maritime
Administration in
cases where no
suitable Swedish
/EU vessel is
available.

Approximately 20
exemptions
awarded each year.

- Captain must be
Swedish (no
exceptions). No
other restrictions.

- All crew retained
on collective wage
agreements
regardless of
nationality.

Not applicable

-Governed by Maritime Act
(1994:1009).

Not applicable

>50% to be owned by Swedish
citizen/ corporations.

- Government reserves the right
to permit foreign vessels to fly
the Swedish flag whose
operation is under Swedish
control and whose owner has
permanent residence in Sweden.

Vessels > 50% owned by EEA

nationals or companies having
registered office, central admin.
or principal place of business in
the EEA and whose operation is
controlled from Sweden may be
registered in the Swedish
register.

- Tax-free reserves of
25% of company profit
for up to 5 years.

- Shipowners receive
full rebate of tax paid
on seafarers’ income
plus an additional relief
of SEK 58,000 per full
time employee for
social cost
contributions.

- Special tax regime for
seafarers abolished in
1998. Seafarers now
pay full income tax on
gross earnings.

31

Country

Basic Principle on Cabotage Comment

Waiver system

Crew nationality requirements

Vessel ownership requirements

Fiscal regime

United

Not restricted

Not applicable

Kingdom

1st register

2nd register

1st register

2nd register

Not applicable

- For 'strategic' ship-
types: master to be
British, Commonwealth,
EEA or NATO
nationality.

- Other ships no
nationality requirements.

Vessel >50% owned
by citizen or bodies
incorporated in the EU
or UK Dependent
Territories

Not
applicable

- Roll-over relief

- exemptions for UK
seafarers not resident in
the UK for more than 183
days per year.

OTHER

(EEA Countries)

Iceland1

Not restricted:

Open coastline.

- Practically
unlimited scope for
foreign merchant
ships to trade
between Icelandic
ports.

-As from 1.8.1998
CR 3577/92 applies
(Joint Committee
Decision No 70/97)

Not applicable

- Since EEA, all EEA
citizens are eligible crew.

Not applicable

- Under Act 26/1987
Employment Rights of
Foreigners, all non-EEA
crew members must obtain
a work permit from the
Ministry of Social Affairs
for entering employment
on board.

- Governed by Registration of
ships Act 115/1985, previously
limited registration to Icelandic
nationals/ residents.

- Amending Act 62/1992 gives
right of registration to
citizens/corporations of EEA
countries.

Not applicable

- Seafarers obtain
following tax privileges:

- Income tax deduction
ISK 685 (US 10.4) x
1.49 for each sea day.

- Shipowners do not
receive any rebates/
refunds for social cost
contributions.

1

EEA Joint Committee decision No 70/97, of 4 October 1997 (OJ L30, 5.2.98) amended Annex XIII (Transport) to the EEA agreement, to extend Regulation
3577/92 to Iceland and Norway

32

Country

Basic Principle on
Cabotage

Norway1

Not restricted:

- Open coastline.

- NIS vessels are in
principle excluded, but
permission is given for
cargo vessels if certain
requirements are fulfilled

Comment

Waiver system

Crew nationality requirements

Vessel ownership requirements

Fiscal regime

1st register

2nd register

1st register

2nd register

- None, except master
must be Norwegian.
This requirement is in
the process of being
changed

- All crew retained on
collective wage
agreements.

NIS register:

- General
requirement for
Norwegian
master. However
exemptions for
other nationalities
are readily
available.

Under the scope of
the Public
Transportation Act
1976, all operators
deploying vessels
on scheduled coastal
passenger services
are required to
obtain a licence
from the MOTC.

As from 1.8.98 CR
3577/92 applies to
all EEA members
(Joint Committee
Decision No 70/97).

- NIS vessels
can enter some
cabotage cargo
trades. Such
vessels are
entered on a list
of the Maritime
Directorate

The current list
includes 16
mostly highly
specialised gas
– tankers.

- Norwegian Ordinary
Register (NOR) governed
by Maritime
Transportation Act.

- Open only to Norwegian
citizens/residents or
unlimited partner-ship
where at least 60% of
ownership is by
Norwegian citizens or the
owner is a limited
company where at least
60% of the capital and
operating powers are in
Norwegian hands.

NIS register put into
operation by the
Norwegian International
Ship Register Act of 12.6.
1987.

- Ownership requirements
as for NOR. If nationality
conditions are not met,
registration also open to
limited company or
partnership with head-
office in Norway, or ship-
owning partnership with
Norway based managing
owner, or owner with
appointed representative
authorised to accept writs
on behalf of the owner.

- All crew members serving
on NOR/NIS vessels are
entitled to special tax
deduction limited to 30% of
their gross income, but not
>NKr 70,000 per year.
Limited to seafarers working
for a minimum sailing
period.

- Tax rebate system revised
spring 1998.Provides refunds
to shipowners of 12% tax
paid on seafarers’ gross
wages. Rebates only
available for crewmembers
resident/ liable for taxation in
Norway. Restricted to NOR
vessels except where entire
crew NIS vessels fulfil
necessary residency/liability
requirements

- Tonnage tax system.
Introduced in July ‘96

Note:

The following countries had bilateral and reciprocal cabotage agreements with EFTA and/or EU countries;

Finland has a bilateral agreement with Norway concluded per 1/1.1997, which grants access to NOR and NIS registered vessels.
Sweden has bilateral agreements with: with Norway, incl. NIS , Iceland, Belgium, Denmark (incl. DIS) Ireland, Netherlands, Portugal and the UK,

Norway has bilateral agreements with: Finland (1997), Germany (1997) Sweden, Iceland, Denmark, the UK and Portugal

1

EEA Joint Committee decision No 70/97, of 4 October 1997 (OJ L30, 5.2.98) amended Annex XIII (Transport) to the EEA agreement, to extend Regulation 3577/92 to
Iceland and Norway

33

ANNEX II

Overview of cabotage developments by EU Member State (mln tonnes)

EU Member
State

Belgium 1992

1993

1994

1995

1997
Denmark 1992b)
1993b)
1994b)
1995b)
1996b)

Finland

Francec)

1992

1993

1994

1995
1997b)

1992

1993

1994

1995
1996a)

Germany 1992

1993

1994

1995

1997

1992

1993

1994

1995
1996a)

1992

1993

1994

1995

1997

1992

1993

1994

1995
1996c)

1992

1993

1994

1995

1997

Greece

Ireland

Italy

Nether-

Lands

Dry bulk

Liquid bulk

Gen. Cargo

Total

Total

Main

Land

0.05

0.05

0.05

0.05

0.05

5.8

4.7

4.7

4.7

4.6

4.7

4.65

5.45

5.25

6.5

8.4

8.1

7.7

6.6

6.5

4.4

3.6

3.25

3.6

3.65

10.1

10.1

9.35

12.1

10.7

0.7

0.85

0.7

0.7

0.75

17.9

13.8

13.8

14.0

15.9

0.3

0.4

0.4

0.4

0.4

Islands

-

-

-

-

-

12.9

13.9

14.1

14.5

0.05

0.05

0.05

0.05

0.05

18.7

18.6

18.8

19.2

14.75

19.35

0.7

0.6

0.6

0.65

0.65

1.5

1.4

1.5

1.3

1.3

0.3

0.3

0.25

0.3

0.35

10.2

8.5

9.2

9.8

10.35

-

-

-

-

-

45.6

46.0

47.4

46.3

52.1

-

-

-

-

-

5.4

5.25

6.05

5.9

7.15

9.9

9.5

9.2

7.9

7.8

4.7

3.9

3.5

3.9

4.0

20.3

18.6

18.55

21.9

21.05

0.7

0.85

0.7

0.7

0.75

63.5

59.8

61.2

60.3

68.0

0.3

0.4

0.4

0.4

0.4

Islands

Main

Land

-

-

-

-

-

5.25

4.25

4.2

4.1

4.0

0.6

0.55

0.7

0.8

0.8

1.6

1.6

2.0

1.6

1.7

0,7

0.5

0.45

0.8

1.25

3.7

3.7

4.0

4.9

4.4

0.15

0.3

0.1

0.05

0.05

5.4

5.9

5.4

5.8

6.1

0.3

0.4

0.4

0.4

0.4

-

-

-

-

-

2.05

1.9

1.85

1.8

1.75

0.55

0.45

0.45

0.5

0.5

0.3

0.2

0.2

0.2

0.2

-

-

-

-

-

4.9

4.1

4.4

5.2

4.85

-

-

-

-

-

10.8

13.1

12.0

12.9

13.5

-

-

-

-

-

Main

Land

0.05

0.05

0.05

0.05

0.05

0.55

0.45

0.5

0.6

0.6

4.1

4.1

4.75

4.45

5.7

6.8

6.5

5.7

5.0

4.8

3.7

3.1

2.8

2.8

2.4

6.0

6.0

5.0

6.8

5.9

0.55

0.55

0.6

0.65

0.7

6.65

3.8

4.2

3.8

4.2

-

-

-

-

-

Islands

Main

Land

Islands

-

-

-

-

-

2.65

2.5

2.75

3.2

3.3

0.05

0.05

0.05

0.05

0.05

0.3

0.3

0.45

0.3

0.3

0.05

0.05

0.05

0.05

0.05

2.2

2.0

1.7

2.2

2.0

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

0.4

0.4

0.35

0.4

0.4

-

-

-

-

-

-

-

-

-

-

8.2

9.5

9.5

9.5
9.7c)

0.1

0.1

0.1

0.1

0.1

0.9

0.9

0.85

0.8

0.8

0.25

0.25

0.2

0.25

0.3

3.1

2.4

3.1

2.4

3.5

-

-

-

-

-

23.15

5.85

11.65

4.1

4.2

4.4

5.6

-

-

-

-

-

9.1

9.4

9.7

12.5

-

-

-

-

-

23.8

26.0

23.7

26.1

-

-

-

-

-

34

EU Member
State

Portugal

1992

Spain

1993

1994

1995

1997

1992

1993

1994

1995

1997

Sweden

1992

1993

1994

1995

1997

United

1992

Kingdom 1993

(incl.

1994

Offshore) 1995

1997

TOTALS 1992

1993

1994

1995

1996/7

EEA STATES

Iceland

1993

1994

1995

1997a)

Norway

1993

1994

1995

1997a)

Dry bulk

Liquid bulk

Gen. Cargo

Total

Total

Main

Land

0.1

0.1

-

-

-

4.9

4.25

4.65

3.95

2.75

3.55

3.55

3.55

3.75

3.4

9.5

7.9

8.0

7.0

4.0

31.6

28.9

33.45

33.15

28.85

0.05

0.05

0.05

0.05

8.0b)

8.0

12.9

14.3

Islands

0.5

0.5

0.5

0.3

0.3

1.2

0.95

0.85

0.95

1.95

1.85

1.7

1.4

1.8

1.75

1.2

0.7

1.15

0.7

0.7

20.95

21.45

22.8

24.35

25.5

-

-

-

-

NA

NA

NA

NA

Main

Land

5.0

4.3

4.3

4.3

3.6

11.65

9.5

8.15

9.7

6.8

6.9

7.15

7.15

7.6

7.3

35.8

35.1

38.8

39.0

41.7

76.75

69.35

82.0

84.75

83.75

0.3

0.3

0.3

0.35

4.55b)

4.5

4.0

4.5

Islands

Main

Land

Islands

0.4

0.4

0.4

0.4

0.4

6.65

6.4

8.45

12.2

13.1

0.1

0.1

0.45

0.15

0.15

21.2

19.0

23.65

23.5

26.0

56.6

54.45

63.95

72.25

71.45

-

-

-

-

22

27

22

28

-

-

-

-

-

0.3

0.35

0.25

0.25

0.3

-

-

-

0.3

0.3

3.6

4.4

4.8

4.7

6.4

10.15

9.25

9.6

10.05

13.0

0.05

0.05

0.05

0.05

1.25b)

1.2

1.0

1.2

0.8

0.8

1.0

1.0

1.2

9.8

10.15

11.05

11.15

12.2

0.1

0.1

0.1

-

0.05

4.0

4.5

4.9

2.6

2.4

38.7

37.6

40.2

37.5

42.75

-

-

-

-

NA

NA

NA

NA

Main

Land

5.1

4.4

4.3

4.3

3.6

16.85

14.1

13.05

13.9

9.85

10.45

10.7

10.7

11.65

11.0

48.9

47.4

51.6

50.7

52.1

118.5

107.5

Islands

1.7

1.7

1.9

1.7

1.9

17.65

17.5

20.35

24.3

27.25

2.05

1.9

1.95

1.95

1..95

26.4

24.2

29.7

26.8

29.1

116.25

113.5

125.05

126.95

127.95

125.6

134.1

139.7

0.4

0.4

0.4

0.45

NA

NA

NA

NA

-

-

-

-

NA

NA

NA

NA

6.8

6.1

6.2

6.0

5.5

34.5

31.6

33.4

38.2

37.1

12.5

12.6

12.65

13.6

12.95

75.3

71.6

81.3

77.5

81.2

234.75
221.0

252.0

262.05

265.3

0.4

0.4

0.4

0.45

35.8

40.7

39.9

48.0

a.

b.

c.

Consultants estimate.

Includes estimated data, on trade volume, trades area or commodity allocation.

Only European cabotage.

35

ANNEX III

Manning cost comparisons for cargo vessels for 1998.

Comparative net manning costs: general cargo vessel 1,500 gt

Back up
Factora)

Officers/
Ratings

1.5/1.5

1.5/1.5

2.0/2.0

2.0/2.0

1.5/1.5

1.8/1.8

1.2/1.2

1.5/1.5

1.8/1.8

1.5/1.5

1.8/1.4

1.5/1.5

1.8/1.4

1.6/1.6

1.5/1.5

1.5/1.5

1.8/1.4

2.0/2.0

1.7/1.7

1.8/1.4

1.5/1.5

1.8/1.4

Total Manning
Cost/year (US$
‘000)

Index
(Average 100)

1,500

1,041

974

942

917

832

823

811

810

775

742

677

666

592

572

510

504

420

408

345

293

271

204

142

133

128

125

113

112

110

110

105

101

92

91

81

78

69

69

57

56

47

40

37

735

100

Crew

Register

Total Crew

Officers

Ratings

6E+0F

5E+0F

4E+0F

4E+0F

5E+0F

4E+2F

5E+0F

4E+0F

3E+1F

6E+0F

3E+0F

4E+0F

3E+0F

5E+0F

3E+1F

5E+0F

5E+0F

2E+1F

3E+0F

5E+0F

3E+2F

1E+2F

6E+0F

5E+0F

5E+0F

3E+0F

4E+0F

1E+5F

6E+0F

4E+0F

3E+1F

6E+0F

3E+0F

4E+0F

3E+0F

7E+0F

1E+3F

4E+0F

6E+0F

0E+4F

3E+0F

2E+4F

2E+2F

0E+4F

Franceb)

Iceland

Swedenb)

NORb)

Belgiumb)

Kerguelenb)

Finlandb)

Irelandb)

Germanyb)

Italy

Denmarkb)

UKb)

DIS (max)

Greece

ISRb)

Portugal

Spain

NISb)

Dutchb)

Canary

MAR

DIS (min)

Average

a. Applies to national seafarers only

b. Based on ISF data

E: EU/EEA nationals

F: Foreign

Source:

MERC/TecnEcon

12

10

9

7

9

12

11

8

8

12

6

8

6

12

8

9

11

7

6

11

9

7

36

Back up
Factora)

Officers/
Ratings

1.8/1.8

1.8/1.4

2.0/2.0

1.8/1.4

1.2/1.2

1.5/1.5

2.0/2.0

1.5/1.5

1.8/1.8

1.5/1.5

1.5/1.5

1.8/1.4

1.5/1.5

1.6/1.6

1.8/1.8

1.5/1.5

1.5/1.5

1.8/1.4

1.8/1.4

1.7/1.2

2.0/2.0

1.5/1.5

Total Manning
Cost/year
(US$ ‘000)

Index
(Average 100)

1,932

1,325

1,207

1,193

1,190

1,162

1,124

1,070

1.052

1,046

1,014

971

846

802

800

667

586

532

494

455

449

339

200

137

125

124

123

120

117

111

109

108

105

101

88

83

83

69

61

55

51

47

47

35

965

100

Comparative manning costs: dry cargo vessel 3,300 gt

Crew

Officers

Ratings

Total Crew

Register

Franceb)

Denmarkb)

NORb)

DIS (max)

Finlandb)

Iceland

Swedenb)

Italy

Kerguelenb)

Belgiumb)

Irelandb)

Spain

UKb)

Greece

Germanyb)

ISRb)

Portugal

Canary

DIS (min)

Dutchb)

NISb)

MAR

Average

7E+0F

6E+0F

5E+0F

6E+0F

7E+0F

6E+0F

5E+0F

7E+0F

4E+3F

6E+0F

5E+0F

6E+0F

5E+0F

6E+0F

3E+1F

3E+1F

5E+0F

6E+0F

2E+4F

5E+0F

2E+2F

3E+2F

9E+0F

4E+0F

4E+0F

4E+0F

9E+0F

5E+0F

5E+0F

9E+0F

3E+6F

4E+0F

5E+0F

8E+0F

5E+0F

7E+0F

2E+4F

2E+4F

8E+0F

2E+6F

0E+5F

0E+3F

0E+4F

2E+4F

a. Applies to national seafarers only

b. Based on ISF data

E: EU/EEA nationals

F: Foreign

Source:

MERC/TecnEcon

16

10

9

10

16

11

10

16

16

10

10

14

10

13

10

10

13

14

11

8

8

11

37

Back up
Factora)

Officers/
Ratings

1.8/1.8

2.0/2.0

1.8/1.4

1.5/1.5

1.8/1.4

1.5/1.5

2.0/2.0

1.2/1.2

1.8/1.4

1.5/1.5

1.8/1.8

1.5/1.5

1.8/1.8

1.6/1.6

1.5/1.5

1.5/1.5

2.0/2.0

1.5/1.5

-

1.7/1.2

1.8/1.4

1.5/1.5

Total Manning
Cost/year
(US$ ‘000)

Index
(Average100)

2,115

1,971

1,572

1,457

1,415

1,352

1,349

1,307

1,295

1,243

1,217

1,116

1,081

1,050

1,014

915

868

859

698

696

537

497

173

161

129

119

116

111

111

107

106

102

100

91

89

86

83

75

71

70

57

57

44

41

1,220

100

Comparative manning costs: products tanker 9,000 gt

Crew

Register

Total Crew

Officers

Ratings

7E+0F

7E+0F

7E+0F

7E+0F

7E+0F

7E+0F

6E+0F

7E+0F

7E+0F

7E+0F

5E+2F

4E+0F

4E+3F

7E+0F

5E+2F

4E+0F

4E+3F

7E+0F

7E+0F

7E+0F

2E+5F

4E+3F

11E+0F

8E+0F

5E+0F

7E+0F

5E+0F

13E+0F

6E+0F

11E+0F

10E+0F

5E+0F

2E+6F

8E+0F

3E+8F

13E+0F

2E+6F

8E+0F

0E+8F

11E+0F

3E+7F

0E+8F

0E+6F

5E+6F

Franceb)

NORb)

Denmarkb)

Iceland

DIS (max)

Italy

Swedenb)

Finlandb)

Spain

Belgiumb)

Germanyb)

Irelandb)

Kerguelenb)

Greece

ISRb)

UKb)

NISb)

Portugal

Canary

Dutchb)

DIS (min)

MAR

Average

a. Applies to national seafarers only

b. Based on ISF data

E: EU/EEA nationals

F: Foreign

Source:

MERC/TecnEcon

18

15

12

14

12

20

12

18

17

12

15

12

18

20

15

12

15

18

17

15

13

18

38