The polar code: legal implications for Alaskan vessel owners and charterers.

• Author: Hurst, Isaak
• Position: SPECIAL SECTION: International Trade

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This article is intended to provide a general introductory overview of the issues discussed and is not intended to provide a complete analysis of such issues. This article is not intended to provide legal advice or to establish an attorney-client relationship and readers should not act upon the information contained in it without professional counsel.

On May 15, 2015, the United Nations International Maritime Organization, better known as the IMO, released the final draft of the Polar Code-a significant piece of international legislation intended to cover the full range of shipping-related safety and environmental matters relevant to the Arctic and Antarctic waters.

The Polar Code is tremendously important because it establishes new safety and environmental guidelines for vessels operating in polar waters. These new regulations include, inter alia, new ship design, construction, and equipment requirements; new operational and training obligations; new search and rescue prerequisites; and, equally important, new environmental standards regarding oil, noxious liquids, sewage, and garbage. The Polar Code is historic in that, for the first time, there is a mandatory set of rules and regulations for vessel owners who operate in polar waters.

However, while everyone can agree there needs to be a higher degree of care when navigating polar waters, the consequential impacts of these regulations (particularly on vessel owners in Western Alaska), may serve as a legal deterrent to operators (or investors) looking to do business in that part of the state. Indeed, from a vessel owner's perspective (or a charterers), the Polar Code may be doing more harm than good by subjecting these owners and charterers to a new class of regulatory liability.

General Background: The Polar Code

The increase in traffic to the Arctic has led to an international consensus that shipping in these regions needs to be better regulated. A mandatory code for all ships operating in polar waters, known as the International Code of Safety for Ships Operating in Polar Waters (Polar Code), was therefore introduced by the IMO and utilizes existing legal instruments in the form of amendments to existing international laws and treaties.

The Polar Code derives its authority from two significant international treaties: the International Convention for the Safety of Life at Sea (SOLAS) and the International Convention for the Prevention of Pollution from Ships (MARPOL). With respect to the former, SOLAS is a famous shipping treaty that focuses on vessel safety and requires minimum standards for the construction of vessels, the equipment on vessels, and the daily operations of vessels. Regarding the latter, MARPOL is an international convention covering the prevention of...