Flags of convenience could result in ’11 September at sea’

Date: 22/05/03

By Karen Carstens

THE veil of corporate secrecy that hides the true ownership of ships could make it easier for extremists to launch a "maritime 11 September" attack, according to the Organisation for Economic Cooperation and Development (OECD).

"It has been widely recognized by all countries under the threat of terrorism that ships are an obvious, and potentially devastating, source of terrorist acts," a report published by its maritime transport committee stated.

Oil or gas tankers could be transformed into "floating bombs" and other ships could be used to transport men and material secretly or to finance terrorist activities, the report warns.

Transparent ownership and control of vessels would raise "security and secrecy problems for the terrorists and would increase their risk of being discovered".

In presenting the findings, the Paris-based OECD called for tougher rules on ownership and a crackdown on the widespread use of 'flags of convenience' to help combat both tax-dodging magnates and extremists.

OECD maritime expert Wolfgang Huebner said that the shipping industry was now "waking up" to threats exposed by the 11 September 2001 hijacked airliner attacks on New York and Washington, which left more than 3,000 people dead.

"It is only due to 9/11 and certain maritime disasters that the international community is thinking about how disasters and terrorist attacks can be avoided," he said.

OECD experts are due to report in November on what measures states could take to boost security and openness.

New rules could include compulsory disclosure of the real ownership of vessels, tougher scrutiny of shipping registers, and changing international conventions to ensure a closer link between a ship and the state in which it is registered.

Huge vested interests are involved as ships transport the bulk of world trade commodities. But the shipping sector has to adapt, said Huebner. "Things have changed and the business community has to realize this. It's a very important political message that we are looking at these factors now," he added. "This could be the beginning of rather draconian changes in international shipping." Huebner believes the changes would be effective only if a "critical mass" of countries adopted them, adding that it would take five to ten years to change the system.

Danny Scorpecci, a senior OECD maritime expert, suggested that measures of last resort could include closer scrutiny of ships using certain flags of convenience, or restricting access to ports to ships flying specific flags.

"If the equivalent of a 9/11 does happen in a port, I have no doubt that governments would start thinking about some of these measures in order to protect themselves," he said.

The OECD has warned that current rules governing the ownership of ships could make it easier for extremists to launch a maritime terrorist attack.