Class Societies Join Maritime Anti-Corruption Network for the First Time
The American Bureau of Shipping, DNV and RINA have agreed to join the Maritime Anti-Corruption Network (MACN), bringing new technical expertise to the global association for integrity in shipping.
Historically, MACN's work has centered on combating facilitation payments (gratuities) in seaports, a longtime feature of interaction between ships' officers and local officials in certain port states around the world. Official solicitations for small payments of petty cash, food or cigarettes are common in some regions, and larger demands for bribes are not unheard-of. Seafarers are often at the receiving end, forced to decide whether to pay or to risk a made-up enforcement action that would delay their ship (and cost their company considerable amounts of money). Overall, MACN says that corruption can increase transport cost by 15 percent, and it has a global estimated cost of about $160 million per year - a cost that shipping stakeholders have to pass on to their customers or absorb on their balance sheets.
MACN's 200-plus members have banded together to resist these practices by sharing best practices; training seafarers on identifying and reporting corrupt practices; collecting incident reports of corrupt demands; sharing intelligence on port-specific corruption risks; and reporting patterns and problems to local authorities for action. The goal is to put up enough resistance and shed enough light on casual corruption that it gets addressed.
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Classification societies have expertise, reach and influence that can help MACN's broader goal to increase integrity in shipping, the organization said in a statement. They also have their own exposure to "integrity risks" when it comes to regulatory decisions, especially in high-risk operating environments. MACN's general assembly voted to allow class societies to join the group this April, and ABS, DNV and RINA are the first.
"Trust is fundamental to the efficient functioning of global shipping. At ABS, we see integrity as an important part of maintaining confidence in the systems, standards, and relationships that support international trade. Joining MACN provides an opportunity to engage with industry partners, share expertise, and contribute to efforts that strengthen transparency and responsible business practices across the maritime sector," said John McDonald, ABS Chairman and CEO.
