The shipping industry is working to curb abuses of the
Automatic Identification System (AIS) satellite positioning data and the
practices of switching off these mandatory systems. The shipping association
BIMCO is taking on the practice, specifically the abuses by charters, as a
means of protecting shipowners and the industry.
Required under SOLAS regulations, AIS transmits information
about a ship including its identity and position. It should not be switched off
or disabled at any time other than for very specific safety and security
reasons permitted by the regulations, such as avoiding detection by pirates in
high-risk areas. Recent incidents in the Gulf of Guinea where ships have “gone
missing” raising fears of hijackings or assaults highlighted the practice of
turning off AIS and the dangers.
Switching off AIS is most often associated with clandestine
activities. In 2020, when the United States issued an advisory on the deceptive
practices used by rogue nations and shipping interests to avoid sanctions, they
specifically highlighted switching off AIS as a practice that shipping
companies should be monitoring for and one that could lead to the black listing
of shipping assets.
The U.S. Office of Foreign Assets Control (OFAC) recommended
in May 2020 that the shipping industry should develop contractual provisions
“in the form of an AIS ‘switch off’ clause.” The intention was that the clause
would allow shipowners, charterers, and operators to terminate work with any
party that demonstrates “a pattern of multiple instances of AIS manipulation that
is inconsistent with SOLAS.”
The Panama Maritime Authority also in May 2020 issued a
stern warning to all Panamanian flagged vessels that deliberately deactivate,
tamper, or alters the operation of the AIS or Long Range Identification and
Tracking System. Panama warned that it would impose sanctions up to $10,000
and/or de-registration or de-flagging of the vessel from the Panama registry
fur these abuses.
BIMCO’s concern is that some charterers may, in their haste
to be sanctions compliant, develop their own AIS “switch off” clauses that
might expose owners to the risk of being terminated even when the AIS has been
switched off for legitimate reasons. They also cite instances when the signal
has failed to transmit or be received for reasons outside the owners’ control.
BIMCO is developing a new clause for charter parties that
will address not only the use of the AIS during the charter party but also
prior to the contract. Targeted for publication in May, BIMCO says the form is
important because the OFAC guidelines are focused on identifying patterns in
AIS manipulation by ships rather than isolated “one-off” incidents. Their
clause will recognize that there may be legitimate reasons why the ship’s AIS
signal has been interrupted but will help tackle potential abuse by sanctions
busters providing additional protections for the ship owners and the overall
industry.