The recent announcement that insurer Lloyds of London is adopting its own Arctic shipping guidelines
highlights troubling gaps in a coming set of shipping regulations, says Lars Erik Mangset, climate and sustainable industries advisor for WWF-Norway, in a letter to The Arctic Journal
Read the op-ed
The Polar Code sets rules for ships operating in polar waters. It is being developed by the International Maritime Organization, a United Nations agency that specializes in shipping. The process of negotiating the code is nearly complete, but the current draft of the Code does not adequately address the risks of Arctic shipping, raising concerns not just from WWF, but from the insurers that assume those risks.
"Factors like a lack of infrastructure, challenging communication environments, a lack of reliable ice and iceberg data and the ability to predict the presence of old-ice inclusions in first-year sea ice are not addressed by the Polar Code, even though they provide significant risks to ships and thus to their insurers", says Mangset.
By proposing additional guidelines, Lloyds is both providing guidance on implementing the Polar Code and addressing its weaknesses. It is likely that more insurance companies will scrutinize the Polar Code and its enforcement, and follow Lloyd’s example of issuing their own dedicated standards to guide their customers when operating in this challenging environment.