The Role of Class in The Maritime Safety Regime: Antonio Leosala

The Role of Class in
the Maritime Safety Regime
Antonio Leosala
DNV Academy in Vietnam
Content of the discussion
Relationships within the Industry

Expectations and Performance
Trends in Maritime Regulatory Development
A Challenging Future
Version MI Trainees 29.08.2005 Slide 2

140 years serving the Maritime Industry
Collaboration
Accidents have always influenced decisions on Rules and Reglations.
We evolve with the times…
Collaborate between Regulatory Bodies and Class Societies…
We must understand WHY these organizations exist!

International Maritime Organization
United Nations: International Maritime safety and regulatory
procedures
156 IMO members.
Created because of the Titanic disaster in 1914.

Classification Societies - Origin (cont’d)
The term “classification” comes from classes of safety standards,

initially introduced. A ship might be assigned a class dependent,
int.al. upon condition
Today a ship’s condition has to meet the minimum standard
according to relevant class dependent upon ship type, equipment
and trading area - 1A1
Classification is a 3rd Party Service. We balance the interests of all
parties and set acceptance levels according to what is societal
expectations.

Players in Maritime Safety
FLAG STATE THE SOCIETY

PORT STATE
CHARTERER FINANCE
OWNER
INSURANCE EMPLOYEES
SHAREHOLDER
SHIPBUILDER
Owner relations
DNV relations SUPPLIERS

IMO continued…
Assembly
Council
Maritime Safety Committee (MSC)
Fire Protection (FP)
Radio-communications and Search and Rescue (COMSAR)
Safety of Navigation (NAV)
Ship Design and Equipment (DE)
Stability and Load Lines and Fishing Vessels Safety (SLF)
Standards of Training and Watchkeeping (STW)
Flag State Implementation (FSI)
The Marine Environment Protection Committee (MEPC)
Bulk Liquids and Gases (BLG)
Carriage of Dangerous Goods, Solid Cargoes and Containers (DSC)
Legal Committee (LC)
Technical Co-operation Committee (TCC)
Facilitation Committee

Flag States
State of registry for a specific ship.
Maritime regulations in conjunction with IMO.
Control through surveyors and inspectors.

Port States

Act
Act mainly
mainly through
through IMO.
IMO.

Results
Results of
of inspections
inspections etc.
etc. are
are made
made publicly
publicly available.
available.

Adequacy
Adequacy indicator.
indicator.

The Chain of Responsibility
CLASS
SHIPOWNER
SOCIETIES
SHIPYARDS
CHARTERERS
Shipowners are the
primary link in the
responsibility chain INSURERS
CARGO OWNERS
PORTS &
TERMINALS BANKS &
FLAG STATES INVESTORS
Version MI Trainees 29.08.2005

The Maritime Safety Regime
UNCLOS defines framework for the
Control Regime in Maritime Safety
SHIPOWNER Ensure implemented standards
SHIPOWNER are being maintained
CLASS Enforcement through

CLASS
Classification and Certification
FLAG Provide and implement

FLAGSTATE
STATE Maritime Safety Regulations
PORT Verify implementation and

PORTSTATE
STATE enforcement of Foreign
Flag Ships
UNCLOS: United Nation Convention on the Law of the sea.
Common Misunderstandings about Class
We are not a Police

Force
(and we don’t want to be one
either).
We cannot assume the
responsibility of the owner
to maintain his vessel.
We alone cannot eradicate
substandard shipping.
Periodical surveys
+/- 3
ANNUAL months
DUE
DATE
EITHER OR
INTERMEDIATE
2nd ANNUAL 3rd ANNUAL

DUE DATE DUE DATE
-
RENEWAL 12 months
Class will normally visit a ship DUE

DATE
only 3-4 times a year. The owner is
responsible 24 hours 365 days per year.
100% survey of a modern Double Hull VLCC
requires :
• Height to climb 11 km
• Area to survey 330 000 m2
• Length of weld 1250 km
• Length of longitudinals 82 km
• Inner bottom area 11 000 m2
in an dark and dirty

environment

How to Survey a Modern Double Hull tanker ?

“Risk Based Inspection” with Focus on ”Critical Areas”
Inspection of stringer
connections to
longitudinal bulkhead
Inspection of stringer
connections to inner
side in the side crude
oil tanks

Perceptions of
the Maritime Industry …
as seen from the Press

Reduction in Total Losses last 25 years
Total Loss Rate [per 1000 ships]
20,0
18,0 Tankers
16,0 Bulkers
Losses per 1000 ships
General Cargo
14,0
Fishing
12,0
Other
10,0 Total
8,0
6,0
4,0
2,0
0,0
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
20
20
Volume of Oil spilled 1970 - 2004
Source ITOPF

Number of Oil Spills per year > 700 tons
Source ITOPF

DNV Maritime
Worldwide Port State Detention Ratio
Detention Ratio* Sorted By Class in Paris MOU, Tokyo MOU, USA** and Indian*** Ocean MOU, 2002-2004
(*: Detentions % of Inspections, **: Inspections per class in USA estimated based on distinct arrivals per class & total inspections,
***: Excluding Australia as already included in Tokyo MOU)
25%
23,9%
20%
15%
12,3%
10%
8,2% 7,9%
6,2% 6,0%
5,5%
5% 4,4% 4,2% 4,2%
3,7% 3,6% 2,9% 2,7% 2,6%
0%
Non- CRS RS IRS Total BV RINA LR IACS GL ABS NK KR DNV CCS
IACS
Source: Inspection databases on the Internet & USCG annual reports & monthly detention lists

Trends in Safety - and Quality Legislation
Quality = Performance/Expectations
Marketforces – pull = E
PERFORMANCE QUALITY
Tomorrow
Today DNV – push = P
TIME
The Regulators
THE ”OFFICIAL” ONES
IMO - Global application
Regulates ships, incl. operations (mainly)
EU - Regional application, but global reach.

Regulates shipping (mainly)
USA etc - Regional application, but global reach
Regulates shipping (mainly)
IACS - Global application

Regulates ships, incl. some operations

History - Disasters trigger new Rules
Titanic (1912) SOLAS (1929)
Torrey Canyon (1967) MARPOL (1973) / STWC (1978)
Amoco Cadiz (1978) SOLAS / MARPOL 1978 Protocols
Herald of Free Enterprise (1987) ISM / SOLAS Ch. II-1 / FSA
Exxon Valdez (1989) OPA 90 / MARPOL
Scandinavian Star (1990) SOLAS Ch. II-2
Bulk Carriers lost early 1990 SOLAS Ch. XII (1997)
Estonia (1994) SOLAS Ch. II-1 (1995)
Erika (1999) Erika Pack I/II -> PSC/Class/EMSA
Prestige (2002) Erika Package III>Flag State/Pollution Liability
09. 11( 2002) ISPS Code

Class Rules vs. International Legislation
International Legislation covers aspects

related to :
Safety, Health and Environment
Accommodation
Life saving
Navigation
Fire
Load Line, Stability
Radio Communication
Dangerous goods
Security Traditiona
l
Pollution Prevention Classificati
on
Technical safety (Class certificate) coverage
Manning ...

Focus is mainly on Tank and Bulk
(in addition to security)
•Tank - for reasons of

environmental protection:
Keeping the oil inside
the hull (Mainly EU driven)
•Bulk -for reasons of Safety:

Keeping the sea water outside
the hull (Mainly IMO driven)
New Roles and Responsibilities in
Regulatory Development
Regulation
Safety,
quality and
functional
objectives IMO
Risk acceptance
criteria
Prescriptive rules including detailed

technical requirements
Operational, training, manning,

IACS
maintenance and inspection requirements
Policies, management systems and best practices on

quality, safety and protection of the environment
Self-
Regulation
European Union
European Union’s role as a regulatory body has been
increasing quite substantially.
Main drive to avoid oil pollution in EU waters.
Heavy on the environment!

EU Directives
3rd Maritime Safety Package
MEP TRAN Proposal
Reduction of Emission of Greenhouse Gasses
Corporate Social Responsibility

United States Coast Guard
Very good example of Port State control.
Basically, a regional body but, it has a global reach.
Deals mainly with shipping in regards to:

- Port Security
- Vessel Security
- Facility Security

USCG Acts
Magnuson Act 1950
Ports and Waterways Safety Act 1972
Maritime Transportation Security Ace 2002 (MTSA)
International Ship and Port Security Code (ISPS)

European Maritime Safety Agency
EMSA is a European Union agency based in Lisbon, Portugal.
Purpose:
- Reduce the risk of maritime accidents
- Reduce maritime pollution from ships
- Reduce the risk and loss of human life at sea
- Enforce legislation of the EU/European Commission

International Labor Organization

BUT - - - -
Accidents have always occurred -

and will continue to do so.
The Human Factor
The Problem is not a lack of Rules and

Regulation - but Compliance !
Challenges to the Industry
To run a profitable sustainable business
Change the public image of shipping to that of a responsible
transporter of goods and people.
To achieve this, the industry must address :

• environmental performance - reality and public perception
• safety of crew, passengers and cargo.
• transparency, i.e. more openness around ownership and
performance data to build trust among regulators and public at large.
IN SHORT -
IDENTIFY AND DISCOURAGE SUB-STANDARD SHIPPING.

The Future
The Class concept - risk management - has existed for
more than 250 years.
Class must continue to adapt to changing expectations.
Classification is “Knowledge Management”.
Class must continue to provide top notch quality
services and technical competence.
All economic activity must be sustainable from a social,
political, environmental and ethical point of view.
Class is no exception.

The Role of Class in The Maritime Safety Regime: Antonio Leosala

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The Role of Class in

the Maritime Safety Regime

Relationships within the Industry

Version MI Trainees 29.08.2005 Slide 2

We evolve with the times…

Collaborate between Regulatory Bodies and Class Societies…

We must understand WHY these organizations exist!

Version MI Trainees 29.08.2005 Slide 4

156 IMO members.

Created because of the Titanic disaster in 1914.

Version MI Trainees 29.08.2005 Slide 5

The term “classification” comes from classes of safety standards,

Version MI Trainees 29.08.2005 Slide 6

FLAG STATE THE SOCIETY

DNV relations SUPPLIERS

Version MI Trainees 29.08.2005 Slide 7

Maritime Safety Committee (MSC)

Fire Protection (FP)

Radio-communications and Search and Rescue (COMSAR)

Safety of Navigation (NAV)

Ship Design and Equipment (DE)

Stability and Load Lines and Fishing Vessels Safety (SLF)

Standards of Training and Watchkeeping (STW)

Flag State Implementation (FSI)

The Marine Environment Protection Committee (MEPC)

Bulk Liquids and Gases (BLG)

Carriage of Dangerous Goods, Solid Cargoes and Containers (DSC)

Legal Committee (LC)

Technical Co-operation Committee (TCC)

Version MI Trainees 29.08.2005 Slide 8

State of registry for a specific ship.

Maritime regulations in conjunction with IMO.

Control through surveyors and inspectors.

Version MI Trainees 29.08.2005 Slide 9

Version MI Trainees 29.08.2005 Slide 10

Version MI Trainees 29.08.2005

CLASS Enforcement through

FLAG Provide and implement

PORT Verify implementation and

We are not a Police

2nd ANNUAL 3rd ANNUAL

Class will normally visit a ship DUE

in an dark and dirty

Version MI Trainees 29.08.2005 Slide 15

Version MI Trainees 29.08.2005 Slide 16

Version MI Trainees 29.08.2005 Slide 17

as seen from the Press

Total Loss Rate [per 1000 ships]

Version MI Trainees 29.08.2005 Slide 20

Version MI Trainees 29.08.2005 Slide 21

Version MI Trainees 29.08.2005 Slide 22

Today DNV – push = P

EU - Regional application, but global reach.

USA etc - Regional application, but global reach

Regulates shipping (mainly)

IACS - Global application

Version MI Trainees 29.08.2005 Slide 24

Torrey Canyon (1967) MARPOL (1973) / STWC (1978)

Amoco Cadiz (1978) SOLAS / MARPOL 1978 Protocols

Herald of Free Enterprise (1987) ISM / SOLAS Ch. II-1 / FSA

Exxon Valdez (1989) OPA 90 / MARPOL

Scandinavian Star (1990) SOLAS Ch. II-2