Risk in the maritime transport of oil between Europe and the United States: implications for European performance.

Summary Until the 1970s, risk theory in economic thought focused on the single risk. Since the 1980s, the economic theory of risk has included multirisk. In this study, the concept of marine oil risk is related to multi-hazard, which refers to a system of two main risks: the body risk of the oil tanker and the marine oil pollution risk. The risk in maritime oil transport, which is related to the multirisk, is, by its component "oil pollution risk", a new risk, which cannot be covered by insurance methods. The application of the economic theory of risk to maritime oil transport therefore has its limits. On a regulatory and legal basis, this study focuses on performance through total quality management. In this respect, the strategies followed by the various partners involved in maritime oil transport are analyzed. Two consequences emerge. The first concerns the oil fleet, whose overcapacity compresses oil freight rates. The renewal of the oil fleet, from good quality (modern) double hull tankers, is only possible if these freight rates are highly remunerative and allow the coverage of the total costs of the oil carrier, to enable the latter to acquire modern tankers. The second consequence is that only the strict application of the regulatory and legislative provisions could contribute to enable the oil carrier to obtain profitable oil freight rates by eliminating sub-standard tankers.