Law and risk regulation: a case study on solid bulk cargo liquefaction

Abstract

Solid bulk cargo liquefaction is a major concern to the shipping industry. The phenomenon occurs when granular cargoes with excessive moisture contents turn from a solid to liquid-like state during shipment. This can threaten the vessel’s stability, potentially causing it to capsize. To mitigate this danger, the International Maritime Organization (IMO) introduced the International Maritime Solid Bulk Cargoes (IMSBC) Code in 2011, containing procedures which promote the safe shipment of solid bulk cargoes. Despite these efforts, solid bulk cargo liquefaction remains the leading cause of fatalities on bulk carriers. Although responsible for less than 15% of bulk carrier losses between 2014 and 2023, solid bulk cargo liquefaction was the cause of over 61% of deaths on bulk carriers during that same period.

This thesis argues that the prevalence of the risk is partly due to the limitations in the IMSBC Code’s implementation and enforcement. Weak enforcement mechanisms, combined with a disconnect between public regulation and shipping practices, have potentially hindered the Code’s overall success. These limitations highlight the broader challenges faced by international law in addressing complex global risks. To address these challenges, this thesis proposes a collaborative governance scheme which integrates public regulation with private governance. This approach uses the strengths of both public regulation and private governance to compensate for each other’s shortfalls. Specifically, it argues that public regulation can be used to make legitimate safety standards, whereas private governance can be used to implement and enforce those standards.

Therefore, this thesis explores how these strengths can be realised. It examines how international organizations can create safety standards that effectively address risks whilst also promoting compliance. In particular, it investigates whether the decision-making processes employed by the IMO achieve these benefits. On the private governance side, this thesis assesses how contractual agreements can be used to implement and enforce IMO safety standards, identifying key contractual relationships that could serve as governance mechanisms to enforce the IMSBC Code.

The collaborative governance model developed in this thesis can be adapted to address complex regulatory risks beyond solid bulk cargo liquefaction. The broader applications of the approach can be explored in future research.

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Identifiers

ORCID for Madison Emily Stevens: orcid.org/0000-0002-7319-549X

ORCID for Emily Reid: orcid.org/0000-0001-5780-6759

ORCID for Fraser Sturt: orcid.org/0000-0002-3010-990X

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