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The ISM Code

Implementation to date

Piraeus10/12/2008

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 aspectsCourt rulings

Enforcement Enforcement penalties

Future prospects

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What was the ISM intended for ?

Provide an International Standard for management andoperation of ships.(TMSA - ISO STANDARDSBMSA ?)

Address the responsibilities of people who manage ships.(ASHOREMSC-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 pollutionprevention.( MARPOLISO 14001/2004Vessel General

Permit.ISM 1.2.3)Support and encourage the development of asafety culture.

Establish safety management objectives.Establish an SMS by the Company to fit its own

organization

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OtherKey Players

.. agents , charterers, classification societiesacting in their capacity as classification society ,

classification societies acting on behalf of FlagState Administration ,Flag State Administrations,H&M Underwriters , P&I Clubs representatives,PSC inspectors , pilots ,press , professionalbodies ,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 maintenanceRules & regulations awareness

Training

Legal aspects

Insurance

Administration & costs

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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 auditingrequirements

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10/2010

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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 adaptabilityon company side-with regards toship-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-Masters Reviews-Supt. Inspections-

Evaluation of documentation received-Investigation &

analysis etc. )

Shipping is a multinational and multifaceted industry witha 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 companyto the Majorsto PSC- to Auditors )

Misguided ideas that large and repetitive quantities ofpaperwork (and administration to function) and ticking

boxes and numerous checklists could ( ! ) replace goodseamanship 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 theircompanies/ships work to follow best practice and reasonablenessguidelines

...

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

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

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COURT RULINGS

The court has scrutinized the SMS and thedocumented systems very closely .Voluminous andparticularly irrelevant manuals have been criticized bythe court.

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

The recruiting , vetting, familiarization and training of

sea staff has come under very close scrutiny particularlywhen an incident occurs because of human error.

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COURT RULINGS

The evidence required has not been limited to theparticular 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 PenaltiesDeficiencies

Detentions

Non Conformities & Additional AuditsFines 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 wasdesigned 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 , whichshould 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 management

THANK YOU

FOR YOUR ATTENTION

ISM Code