The ISM CodeImplementation to date

Piraeus 10/12/2008

John Couyou

For the benefit of business and people

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How it all begun

PROBLEM……..an accident and claims explosion

CAUSE………….human error

SOLUTION……..management systems

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ALMOST 10 YEARS OF ISM IMPLEMENTATION

What was the ISM intended for ?

Key players’ commitment - theory & practice

MAJOR Implications

Benefits & Drawbacks

Legal aspects – Court rulings

Enforcement – Enforcement penalties

Future prospects

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What was the ISM intended for ?

Provide an International Standard for management and operation of ships. (TMSA - ISO STANDARDS – BMSA ?)

Address the responsibilities of people who manage ships. (ASHORE – MSC-MEPC7/Circ 6)

Address the responsibilities of people who operate ships. (ONBOARD)

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What was the ISM intended for ?

Provide an International Standard for pollution prevention. ( MARPOL – ISO 14001/2004 – Vessel General Permit…….ISM 1.2.3)

Support and encourage the development of a safety culture.

Establish safety management objectives.

Establish an SMS by the Company to fit its own organization

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Other Key Players

.. agents , charterers, classification societies acting in their capacity as classification society , classification societies acting on behalf of Flag State Administration ,Flag State Administrations ,H&M Underwriters , P&I Clubs representatives ,PSC inspectors , pilots ,press , professional bodies ,ship brokers ,ship owners associations , surveyors ,consultants ,auditors* , trade unions , university lecturers/academics …

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MAJOR Implications

Company organization & Masters

Ship specific SMS , structure and maintenance

Ship and Equipment maintenance

Rules & regulations awareness

Training

Legal aspects

Insurance

Administration & costs

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BENEFITS & DRAWBACKS

It is a reliable management tool if used properly

It is effective in reducing accidents and damages (claims) if used properly

Risks are assessed and sensible precautions are taken when used sensibly

It helps increase awareness and compliance with rules and regulations

It improves/enforces safety consciousness and improves management skills of personnel

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BENEFITS & DRAWBACKS

It is not a prescriptive enough management tool (cf. TMSA)

Often , SMS Procedures may not be relevant

Working practices may be costly to change

Very scarcely ,time and resources are diverted from the principal purpose of carrying cargo profitability

Checklists burden the system ,to satisfy auditing requirements

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BENEFITS & DRAWBACKS

It is increasingly becoming an administrative burden

Too many rules and regulations directed to poorly trained personnel

Communication language ( too many languages ! )

Lack of “proper” training. Training needs are rarely reported

Lack of adaptability –on company side-with regards to ship-types and trade patterns (number of shore personnel, frequency of onboard visits)

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BENEFITS & DRAWBACKS

R.O , R.S.O. , Flag Administration , P.S.C. behaviors may create problems of application , interpretation ,variation in objective standards

Lack of proper SMS monitoring and superficial evaluation (Int. Audits-Master’s Reviews-Supt. Inspections-Evaluation of documentation received-Investigation & analysis etc. )

Shipping is a multinational and multifaceted industry with a globalized labor force. Diversity of opinions and experiences play a significant role in ISM implementation

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BENEFITS & DRAWBACKS

Non conformities still appear as a “black mark” ( In the company – to the Majors – to PSC- to Auditors )

Misguided ideas that large and repetitive quantities of paperwork (and administration to function) and ticking boxes and numerous checklists could ( ! ) replace good seamanship and proper training.

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Legal aspects EURASIAN DREAM…..car carrier…..07/02/02

Ruling : a framework upon which good practice should be hung.

………………………………………………………………………………………...

TOREPO…..product tanker…..18/07/02

Ruling : a prudent manager/master could very well organize their companies’/ships’ work to follow best practice and reasonableness guidelines

………………………………………………………………………………………...

PATRAIKOS II …..container ship…..09/05/2002

Ruling : failure to exercise due diligence in checking the background ,training and qualifications of the second mate

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COURT RULINGS

The court has scrutinized the SMS and the documented systems very closely .Voluminous and particularly irrelevant manuals have been criticized by the court.

It is unacceptable for a ship owner/manager to dump ready made procedures, manuals, etc. onboard a ship and just expect those onboard to get on with it.

The recruiting , vetting, familiarization and training of sea staff has come under very close scrutiny particularly when an incident occurs because of human error.

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COURT RULINGS

The evidence required has not been limited to the particular incident. Evidence was needed to be produced , that , good procedures were in place and that, for most of the time, those procedures were being correctly implemented and followed.

The courts expect certain things (evidence) to be produced , but will also expect “ audit trails” to be capable of being followed.

If the operator can demonstrate that he has a good system in place and all involved were doing their best to properly implement their SMS , then they should not be unreasonably punished by the courts.

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Enforcement

Commitment from the top Management

Designated Person & Master & ALL

Internal Auditors

Recognized Organizations

Flag Administrations

Port State Controls

Insurers

Courts

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Enforcement Penalties

Deficiencies

Detentions

Non Conformities & Additional Audits

Fines by Flag Administrations

Withdrawal of ISM Certificates ( RARE )

Loss of insurance claims

Extensive SMS revisions

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Future prospects

In the short and medium term ,the ISM Code was designed to discover and eliminate substandard ships ,together with substandard owners and managers ,not to mention many others who contribute to their survival and ,in some cases , prosperity. EXPERIENCE SHOWS THAT IT IS WORKING

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Can then , the ships be safely managed … ?

…at one level the answer really is yes and no, but at a deeper level there is a complicated and often complex and conflicting picture , which should not surprise anyone if one considers that one is dealing with a multinational , multifaceted industry with a globalised labor force. Therefore diversity of opinions and experiences are to be expected. IT IS A SLOW PROCESS

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Ships’ safe operation managementShips’ safe operation management

THANK YOU

FOR YOUR ATTENTION

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