Globalisation and Maritime Governance

This chapter begins with a detailed analysis of the need for maritime governance and the factors which lie behind the drivers of maritime governance identified in Chapter 1. The stimulants behind maritime governance are considered and the reasons why it cannot be left to market forces alone to direct what is both achievable and desirable. The factors discussed which drive maritime governance include a desire for efficiency in the operation of the industry, the central need for safety and security, the need to protect the environment from a potentially highly damaging industry, and the need to coordinate domestic and international maritime policies to meet national and global ambitions. There follows discussion of the implications for governance of the maritime business of its inherent international nature, particularly as almost all aspects of the sector are open to global competition even wholly domestic markets. This includes crews, owners, insurers, cargos, bunker supplies, brokers, vessel registration and many more. A specifically designed international maritime governance framework is required because otherwise problems of inconsistency, ignorance and jurisdictional inadequacy emerge stemming largely from the mismatch between a global business and what remain dominantly nation-state orientated regulators even where the regulatory body is global exemplified by the United Nations, European Union or the World Bank. These problems are exacerbated by widespread evidence of the ‘Prisoner’s Dilemma’ whereby a tendency to sink to the bottom in terms of the quality of maritime policies for safety, security and the environment is clear as individual nations fear being out-manoeuvred by unscrupulous competitors operating across global markets. This globalised profile is emphasised by the increasing role of international sourcing, security fears, the development of information technology and the expansion of global industries in shipping and ports and the growth of free trade ambitions. Other factors promoting a global view of maritime governance include extended inter-modalism, the growth in port and shipping physical sizes, the flexibility of capital and labour mobility, and the need for consistent global technical standards.