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Purpose

To inform readers comprehensively and sufficiently about the new (July 1, 2004) legal regime of SOLAS/ISPS code concerning security of ports and ships.

Design/methodology/approach

The paper estimates the code's impact on vessels' security and on ships' ownership and control as well as on seafarers.

Findings

The maritime security measures costing $626 million (and $168 million per year) had to be seen as the third pillar of the international shipping policy and to facilitate instead of obstructing free flow of international sea transport.

Research limitations/implications

The very recent implementation of ISPS code made this paper prognostic in nature.

Originality/value

This is the first account of the new regime and is of interest to shipowners and ports, US and EU seafarers.

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