1

MM-SOP4000 Ship Operations ; 2012

NOMAR Nordic Master in Maritime Management ; 2012

Topic: ISM Code – 1. Introduction

Presented: 6. September 2012

By: Lars Chr. Iversen

References

2

Anderson, Introduction

http://www.imo.org/

http://www.ismcode.net/ (Anderson’s home page)

http://www.marisec.org/shippingfacts/home/

3

Framework & IMO

4

Requirements

imposed

Vessel & Company

Flag State

Classification

Society

Charterer

Port State

Insurance

Rules Generated

Contractual obligations

Laws/Rules/ Regulations Generated

Laws/Rules/ Regulations Generated

5

The individual

national states

The Flag State: has the

jurisdictional control of the

ships registered (flagged) by

the state.

The Port State: has certain

jurisdictional rights regarding

ships sailing within its national

waters

6

The Norwegian Maritime Directorate is a government body sub-

ordinated the Ministry of Trade and Industry and the Ministry of

Environment.

The directorate has jurisdiction over

i) ships registered in Norway

ii) foreign ships arriving Norwegian ports.

The directorate’s main goals are to prevent accidents and to achieve a

high level of safety for lives, health, vessels and the environment.

7

Shipping is global

Shipping is a highly globalized business. => Makes it necessary for international rules.

8

Over-national authority

The obligation by individual national states to follow over-

national organizations (e.g. UN, EU).

Ref.: Rules for ratification and implementation

http://www.imo.org/About/Conventions/ListOfConventions/Pa

ges/Default.aspx

9

IMO: International Maritime Organization (UN)

ILO: International Labor Organization

UNCTAD: United Nations Conference on Trade

and Development

WTO : World Trade Organization

United Nations

(IMO/ILO) Conventions

etc. Generated

Vessel & Company

Flag State

Classification

Society

Charterer

Port State

Insurance

MoU’s

Paris,

Tokyo etc

Rules Generated

Contractual obligations

Laws/Rules/ Regulations Generated

Laws/Rules/ Regulations Generated

International conventions imposed

11

International Conventions and Regulations

are implemented though the legislation of

each individual nation.

Conventions

Rules

Regulatations

National Laws

Implementation of Conventions by National States

12

Implementation of Conventions in Contracts

Conventions

Rules

Insurance

Charter contracts

Ship management contracts

13

IMO

The International Maritime Organization United Nations specialized agency Responsibility for the safety and security of shipping and the prevention of marine pollution by ships. Based on Convention established 1948. IMO Convention came into force in 1958. Located in London Members:

170 Member States and three Associate Members Consultancy Status:

78 international Non-Governmental Organizations (NGO’s) 63 international Inter-Governmental Organizations

14

The Maritime Safety Committee is

IMO's senior technical body on safety-

related matters

IMO Organization

Assembly Regular meeting every second year

Council China, Greece, Italy, Japan, Norway, Panama,

Republic of Korea, Russian Federation, United

Kingdom, United States.

Committees:

Maritime Safety Committee

Marine Environment Protection

Committee

Legal Committee

Technical Cooperation Committee

Facilitation Committee

15

Decision/Implementation process in IMO

Described in detail on IMO web-site

New Conventions

• Prepared by the Committee

• Approved (adopted) by the Assembly

• Ratification (signing) by the States

• Enter into force when conditions for State’s ratification has been

achieved

Complex and Time consuming

Amendments

Normally – enter into force after “Tacit Acceptance”

Amendment is valid if number of protesting nations not exceeds specified

limit.

16

The International Convention for the Safety of Life at Sea (SOLAS) is

an international maritime safety treaty.

The most important of all international treaties concerning the safety of

merchant ships.

Titanic 1912

About 1500 died

The first version of the treaty was passed in 1914 in response to the

sinking of the Titanic

SOLAS

17

Torrey Canyon

March 1967

About 130,000 ton (800.000

barrels) oil spill

Led to MARPOL

Torrey Canyon and other large-tanker

accidents in the 60’s led to MARPOL

IMO/ILO Conventions for shipping operations

18

Dealing with the ship

SOLAS (International Convention for the Safety of Life at Sea, 1974), IMO

MARPOL (International Convention for the Prevention of Pollution from Ships, 1973/1978), IMO

COLREG (Convention on the International Regulations for Preventing Collisions at Sea, 1972),

IMO

LOADLINE (International Convention on Loadlines, 1966), IMO

ISPS (The International Ship and Port Facility Security Code, 2002), IMO

Dealing with the shipping company

ISM (The International Safety Management Code, 1993), IMO (SOLAS Chapter IX)

Dealing with the seafarer

STCW (International Convention on Standards of Training, Certification and Watchkeeping for

Seafarers, 1978/1995)

ILO 147 (The ILO Merchant Shipping (Minimum Standards) Convention, 1976) requires national

administrations to have effective legislation on labour issues such as hours of work, medical

fitness and seafarers' working conditions. This will be superseded by MLC, 2006 (The ILO

Maritime Labour Convention, 2006) when it comes into force.

19

ISM Code

20

Estonia Capsice and sink

Baltic Sea

28. Sept 1994

852 lives (989 pob)

Scandinavian Star Fire

Skagerrak

7. April 1990

159 lives (707 pob)

Herald of Free

Enterprise Capsice

British Channel

6. March 1987

193 lives (459 pob)

North-Europe ferry disasters

21

Exxon Valdez Grounding & Major oil spill

Alaska

24. March 1989

500,000 (+/-) barrels spill

Clean up: 2 bill. USD

Compensations: 1 bill. USD

Actual damages: 0.3 bill. USD

Puntive damages: 2.5 (?) bill. USD

Case still ongoing!

Exxon Valdez

Exxon Valdez incident led to US Oil Pollution Act 1990 (OPA 90)

22

ISM Code

=

Short name:

“The International Safety Management Code” Full name:

“The International Management Code for the Safe

Operation of Ships and for Pollution Prevention”

§ 1.2.1

“The objectives of the Code are to ensure safety at sea, prevention of

human injury or loss of life, and avoidance of damage to the

environment, in particular to the marine environment and to property

23

IMO SOLAS, 1974:

ISM code = Chapter IX in SOLAS

Chapter IX:

§ 3.1: “The company and the ship shall comply with the requirements

of the ISM Code.

Incorporated in SOLAS in 1994

Validity from 1996/1998/2002 (depending on ship type)

24

Human factor

=

80% of casualities

Analysis of casualities

25

§

§

§

§

§

§ §

§

§

§

§

versus

Specific Requirements

Requirements to

Management System

”Old” thinking

and

still kept

”New” thinking

in addition

Specific versus System

Complexity driven

26

ISM not = Quality Management

However:

ISM Code is based on same principles as modern Quality

Management, e.g. ISO 9001

§ 1.2.3

“The safety management system should ensure:

.1 Compliance with mandatory rules and regulations; and

.2 that applicable codes, guidelines, and standards recommended by

the Organization, Administrations, classification societies and maritime

industry organizations are taken into account

27

ISM is legally mandatory

Implication:

Non-compliance = Legal Breach (by Flag State law)

i.e.:

Identified bodies/persons (Company, Designated Person,

Master) may be prosecuted for such breaches

28

Has it worked?

29

Total losses by number (ships over 500gt) Source: ICS / Int. Union of Marine Insurance

Has it worked….?

30

Lives lost on cargo ships Source: ICS/Lloyd's Register Fairplay

Has it worked….?

31

Estimated quantity of oil spilt Source: ICS/International Tanker Owners' Pollution Federation

Has it worked….?

32

33

And now - Deepwater Horizon….

Blow-out started 20. April 2010

• 11 lives lost

• Rig lost

• Major blow-out – lasted for about 3

months

• 4.9 million barrels?

• BP fund allocation: 20 billion USD

• BP paid per 07/12: 8.8 billion USD

”First Class Companies”:

BP – Oil Company Operator

Transocean – Drilling Rig Operator

Halliburton - Contractor

Note – Oil Drilling Unit, not ship

34

“(i) Better management of decision-making

processes within BP and other companies, (ii)

better communication within and between BP

and its contractors and (iii) effective training

of key engineering and rig personnel would

have prevented the Macondo incident.”

Ref: Wikipeda

White House Commission Report – conclusion:

35

Bourbon Dolphin

Anchor Handling Vessel (AHV)

Cap-sized during anchor handling

operations 12th April 2007.

8 people died.

Assignment will be given concerning this accident.

36

http://www.youtube.com/watch?v=ZlX-VVxNcn4&NR=1

8 died

37

Costa Concordia

Owned and operated by Costa Crociers, part of Carnival Group

Grounding - January 2012 – 4252 people onboard

32 people died

Compete loss of vessel?: New price: 800 mill USD?

Salvage operation: 300 mill. USD

Causes:

Note: Court hearing postponed until Oct. 2012

Speculations:

• Non-authorized navigation routing

“Macho” show-off?

• Old maps?

• Open water-tight doors?

38

Has it the ISM-Code worked….?

•Some good trends, in particular on pollution.

•But …still accidents happens.

•Recent events, e.g. ”Bourbon Dolphin”, will be used as

case studies as part of this course