Southampton Institute

SCHOOL OF MARITIME AND COASTAL STUDIES

MSc International Maritime Studies

- Shipping, Ports and Environment
ISM CODE IMPLEMENTATION
GRIGORAKOS-STATHAKIS DIMITRIOS
2002

This dissertation is submitted in part fulfilment of the

Degree of Master of Science in International Maritime Studies
Shipping, Ports and Environment
at Southampton Institute
in September 2002

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CHAPTER 1: INTRODUCTION

1.1 Shipping industry-Safety-Human Element-ISM Code

The shipping industry delivers goods from country to country and connects the whole
world together. It is also a very important fundamental industry in the world economy. It
offers cheap and fast transport service to the other industries to open more wide markets
(Stopford, 1997, p17). Especially a fast, cheap and safe transport is a premise of today’s
“just in time” industry production process and market “globalization”. However, the
shipping industry is not safe enough, is always thought as one of the most dangerous
industry. Just open any day’s the marine newspaper Lloyds List; we can find that there is
a huge number of marine accident news in casualty report. So, safety is still one of the
main problems in the shipping industry.
Since the ship has first time used as a transport tool sailing at sea, people have tried to
improve its safety. Many efforts have improved marine safety, but the rate of marine
accidents is still unacceptably high today. The reason of such a high rate of marine
accidents is that over 80% of marine accidents occurred by human errors. So, one of the
best measures to reduce marine accident is to focus on human elements, recognize human
errors and eliminate them (Anderson, 1998, p15). Unfortunately the human element is
always ignored. Major maritime disasters caused the changes of the shipping industry. It
was not realized that the key issue of marine safety is human element. Again, a measure
to improve marine safety is to solve the problems of human element. It was not until the
end of 1960’s, that the importance of skills and knowledge of seafarers has been first
recognized. (Anderson, 1998, p15) In the following years, the whole human element in
marine accidents has gradually recognized. The human element in marine safety has been
identified. Following the adoption of International Convention on Standards of Training,
Certification and Watchkeeping for Seafarers (STCW) in 1978, the International Safety
Code (ISM) was adopted in 1993. These two regulations are main contribution to
International Maritime Organization (IMO) which deals with human element. The ISM
Code is the first standard of ship management, and the best measure to take into account
the human element in marine accidents.

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International Safety Management (ISM) Code is known as the International Management
Code for the safe operation of ships and for pollution prevention and adopted by IMO
resolution A.741 (18). When the ISM Code was adopted, there were many people doubt
it, and thought is as “a piece of paper”, and “just can create a certificate printing
industry”. (Cohen, Feb 1997, p45). In fact, ISM Code is focusing on the lack of safety
management that may create major problems of human element, and is intended to
improve the safety and reduce pollution from ships. The ISM Code has not introduced a
new technology standard on safety, but it has a major impact on the way shipping
companies are managed and operated. We can see that it brings a real safety revolution to
the shipping industry. (http://www.ismcode.net, 18/07/2002).
In this thesis, firstly, there will be a discussion on the development of the shipping
industry and why safety and pollution are always the main problems of the shipping
industry. Following there will be a discussion on marine safety to understand some
definitions, the main causes of marine accident, what role every participant act and what
efforts have been done on improving marine safety. Then, it will be discuss on why we
should focus on human element, which areas we should consider in human element study
and from some cases to find the human element in marine accidents. The final discussion
will be on why ISM Code was adopted, how to implement it, the problems in “paper
chase” as well as the impacts in the shipping industry. Also in the final discussion
conclusions that came up will be analyzed.

1.2 Rational and background

The development of the ISM code has its roots in the widespread belief that the best
practice and formal management systems which were found in the best organized
shipping companies were very different from practices of some owners who had
abandoned any pretence at good operating standards (Kuo, 1998, p155).
The ISM Code is important because it stresses the responsibility of management for
safety and spells out in considerable detail what that responsibility consists of. In the past
some companies gave the impression that safety of ships was the responsibility of the

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captain alone while the directors’ functions were limited to the more understanding task
of making a profit.(Anderson, 1998, p32)
The ISM Code also makes it clear that the “human element” (a phrase which has usually
been interpreted as meaning the seafarers alone), also applies to those on shore. When an
accident happens, the subsequent investigation often shows that mistakes have been made
not only from those on board but also by the company operating the ship. That also
shows as that the communication and co-operation between companies and seafarers
weren’t the best. The adoption of the Code as a mandatory instrument should enable
some of those mistakes to be eliminated- and enable those responsible for making them to
be held more accountable for their actions that they have been up until now. (Sauders
&Wheeler, 1991, p54)
The Code itself is made up of eleven rules or requirements from which the company is
required to develop policies and procedures for the shore based support of the shipping
operation, and therefore to ensure compliance. These rules or requirements only cover
those company developed processes to ensure that there is an adequate guidance to cover
an emergency at sea as well as the proper execution of activities to mitigate against the
loss of a ship, injury to people on board and pollution to the marine environment.
(Donaldson, 1994, p92).

1.3 The reason of the survey

The intention of the proposed research will be to consider the perceived conflict between
the requirements under the ISM Code to produce a wide range of documents and reports
as a part of its SMS (Safety Management System) to make ships safer and seas cleaner.

Consideration will be given to the actual, and likely, consequences of not complying v.
complying.

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A consideration of what, if anything, should to be done to encourage compliance with the
requirements of the ISM Code - from various perspectives. The intention of the proposed
research is to consider a number of key questions linked to the compliance or otherwise,
by Ship Operators and their staff with the requirements of Section 9. The basic questions
can be stated as follows:

• Is the ISM Code working?

• If yes - how has this been achieved?
• If no - why not?
• What are the perceived problems?
• Are these perceived problems justified?
• What needs to be done to alleviate the problem?

Whilst there is a preconceived idea that much of the industry is not, or only partially,
complying with the requirements of Section 9 - the research will in fact be looking for
compliant companies in order to establish, through reflection on practice, what it is that
they are doing which has achieved a successful compliance. So, is ISM Code just a set of
rules or requirements legislated by the International Maritime Organization (IMO) or, is
it an attempt to change through bureaucracy, the culture of the industry and encourage a
discipline at all levels of the shipping operation which will lead to safer more accountable
practices? Has ISM achieved its objectives?
There should be no doubt that the regulatory bodies of the international maritime
community are despaired to stop the growing number of accidents, injuries and pollution
violations committed by so called responsible shipping companies.

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CHAPTER 2: MARINE SAFETY

2.1 The definition of marine safety and marine accident

Marine safety can be defined as the freedom from danger or unacceptable risk of harm to
person, the environment, ships, cargo, or other property at sea (D.T.Bryant, 1991: p3).
Marine safety does not just happen; it is the reward of care and good organization on a
ship. As with general product safety, when quality is inherent in a product and reliability
is attained, marine safety will be possible provided human error is avoided. (D.T.Bryant,
1991: p3).
Marine safety is concerned with technology, standards and regulations, humans and
involves ships’ design, building and operation.

2.2 The causes of marine accidents

2.2.1 Human element

It is known that 80%-90% of all accidents are caused by “human error” today.
Human error more accurate to say is “human involvement”, because human involvement
does not mean the same thing as human responsibility. People may be involved in an
accident without being responsible for it (Leadley, 06/03/2002). We call the human
involvement as human element. The human element dimensions include such general
categories as knowledge, experience, judgment, communication, organization, role
violation, use of equipment etc.
Human element will be more analyzed because of its importance in chapter 3.

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2.2.2 Structure and equipment failure

A vessel, which has been badly constructed, with defects built into her, is a greater risk of
becoming a casualty. The big ships that vanished with their crews offered nothing other
that circumstantial evidence as to the reasons for their loss; other ships that crept into port
with serious structural damage provided evidence that was badly needed (Grey, 1991,
Sept/Oct). For example, one representative accident of this category was the 123,126 dwt
Gallant Dragon. The vessel had a structural fault. And there were several holds flooded
and shell platting missing, which gave valuable clues to the investigators. Poor design is a
matter for naval architects to resolve, and it is to be expected that class surveyors will
look closely at poorly designed areas of vessels whilst such vessels remain in service. To
reduce accidents from structural failure, a ship owner and master should be informed
when weaknesses have been identified and regularly monitor her condition. Proper
maintenance and continuous monitoring of the vessel might be the best solution to
prevent the accidents caused by equipment failure. (www.lloydslist.com/, Gallant
Dragon, 29/07/2002).

2.2.3 Age of the vessel

Metal failure and corrosion progressively weaken vessels, as vessels become older. And it
is common knowledge that the most casualties relate to older vessels. Judgments very as
to the age at which vessels become significantly higher risks, but over 15 years is widely
quoted. (Isbester,1993, p288). In the Lloyd’s Register World Casualty Statistics 1997
report the 132 total loss vessels, 29 vessels were in 10-19 years old and 91 vessels were
over 20 years old.

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2.2.4 Heavy weather

In the world casualty statistics of the Lloyd’s Register I appears a great deal of vessels
have been lost because of heavy weather. A representative example of this cause is the
super typhoon “Angela” which on 3rd of November in 1995 (www.Lloydslist.com,
Angela typhoon, 29/07/2002) drove the vessel Queen Vicky into collision with another
when initially the vessels are designed and built with the conditions to survive heavy
weather should be consider. To reduce the marine accidents from heavy weather, it is
useful to use a proper weather routing service, which can forecast the next 48 hours’
weather conditions, and reduces a vessel speed in adverse weather. When the adverse
weather causes a speed reduction of 25% with constant engine speed the RPM should
substantially reduced to avoid damage from the weather (www.Lloydslist.com, Angela
typhoon 29/07/2002).
In addition the geography factor it is also one of the causes of marine accidents. It is too
often that the ship master and officer are not familiar with the local geography condition
which can cause grounding and collision. When we study marine accidents we can find
that it is too often these factors mixed together to cause an accident.

2.3 The participants of marine safety

The international shipping industry can be viewed from several perspectives. Firstly, the
business of owning and operating vessels and moving freight together with associated
activities of marine insurance, construction and maintenance. Secondly, the business of
owning a vessel and chartering it out for other to operate. Third, the regulatory
framework both at international and national level, dealing with the safety of life and
property and protection of marine environment. (Inquiry into ship safety, (1992), p9).
The participants in the shipping industry concerned with marine safety include
international organizations, flag states, port states, classification societies, shipping
companies (include ship owners, operators, charterers), insurance providers, crews.

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2.3.1 International Maritime Organization (IMO)

The International Maritime Organization is the United Nations’ specialized agency

responsible for improving maritime safety and preventing pollution from ships. It also is
involved in legal matters, including liability and compensation issues and the facilitation
of international maritime traffic. Its governing body is the Assembly that is made up of all
157 Member States and meets normally once every 2 years. The Council acts as
governing body in between Assembly sessions. The main technical work is carried out by
the Marine Safety, Marine Environment Protection, Legal, Technical Co-operation and
Facilitation Committees and a number of sub-committees.(www.imo.org, about IMO,
30/07/2002) .However, by the late 1970’s, it had largely completed its developing
regulations and legislation’s work. After that IMO concentrated on keeping legislation up
to date and to ensuring that it is ratified by as many countries as possible. This has been
so successful that many Conventions now apply more than 98% of world merchant
shipping tonnage. Currently the emphasis is on typing to ensure that those conventions
and other treaties are properly implemented by the countries that have accepted them.
(FAQs about IMO, http://www.imo.org ).

2.3.2 Flag State

Flag State is the country in which a ship is registered and which undertakes the
responsibility for the implementation of international conventions relating to that ship.
According to the United Nations Convention on the Law of the Sea (UCLOS)
(www.un.org, 28/07/2002) article 91, 92, 94, every ship sailing on the sea should fly the
flag of the country where she is registered and obeys the administration and laws of that
country. The flag state should effectively exercise its jurisdiction and control in
administrative, technical and social matters over ships flying its flag.
The traditional register Flag States, such as Australia, UK, USA, China, Japan, have very
strict nationality rules. However, the register of many states, for example Cyprus, Liberia,
Panama, Malta, are now open to a wide variety of ships and nationality link is tenuous.

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The terms “open register” and “flag of convenience” (FOC) refer to such
arrangements.(www.imo.org, safety, 30/07/2002)
The growing use of these registers led some traditional maritime countries to develop
second registers. These register are generally meant to be available only to ships involved
in international trade, the intended purpose of a second register is to relieve ship owners
of some financial requirements associated with full national shipping, but maintain
effective oversight of safety standards. An example of such a register is the Norwegian
International Ship register. (www.imo.org, safety, 30/07/2002).

2.3.3 Port State

The term of Port State is used to describe the country in which that port is located. Port
State Control (PSC) empower a port state, according to the requirements of international
conventions and regulations, to inspect the conditions and acceptability of a foreign
vessel; visit its port to see whether the foreign vessel complies with these instrument. The
aim is to identify sub-standard ships and detain them until any safety or marine
environment-related defects, whether operational or structural, are rectified either before
the ship leaves, or by a specified date. PSC is regarded as measures complementary to the
flag state control. (www.imo.org, safety, 30/07/2002).
Legitimacy for port state control inspections may be found in UNCLOS articles
25,216,218,219 because it is usual for there to be an oil pollution threat, albeit only
bunkers, from any unseaworthy ship. The only limitation is that the steps taken be
reasonable, public, and not discriminatory.

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2.3.4 Classification Societies

Classification Societies originally evolved to carry out surveys of ship’s hulls on behalf
of insurance underwriters. This role has changed and today classification societies carry
out these responsibilities on behalf of owners and in some cases as agents for flag states.
Classification societies involve approval of the ship’s construction plans, testing of
materials and survey during construction. Periodic surveys are a condition of maintaining
a ship’s classification. Commonly referred to as class, the Flag State accepts the
responsibility that a ship complies with convention standard. The role of classification
societies is to verify, on behalf of a ship owner, the construction and ongoing standard of
the vessel. Classification societies may be authorized by some flag states to issue some or
all international certificates on their behalf. (www.imo.org, safety, 30/07/2002)

2.3.5 Insurance providers

Insurance providers can be divided into 3 categories: hull underwriters, cargo insurers and
Protection and Indemnity Clubs (P&I Clubs). Hull underwriters insure the ship’s hull and
many cover machinery. Cargo insurer underwrite the loss of cargo, they deal with cargo
owners not the shipping company. Liability cover is known as protection and indemnity
(P&I) and usually is provided by the P&I Club. The major areas of liability covered by
the P&I club are: (www.imo.org, safety, 30/07/2002)

• Loss of life and personal injury claims

• Hospital, medical and funeral claims arising from inquiry claims
• Sickness and repatriation of distressed seamen
• Damage to piers, wharves and other stationary objects
• Environmental damage
• Claim in respect to the wrong delivery of cargo
• Cost of raising wrecks

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2.3.6 Shipping Companies, officers and crew

“Shipping Company” means the owner of the ship or any other organization or person
such as the manager, or the bareboat charterer, who has assumed the responsibility for the
operation of the ship from the ship owner. The Shipping Company is still regarded as
having the prime responsibility for the safe operation of their ships. Today a ship manager
carries out the traditional operational functions of a ship owner. However, ship
management companies may not operate with the level of concern for a vessel as
traditional owners, nor does the same rapport with the crew exist.
Charterers contract ships to carry particular cargoes. Several types of charter are
commercially available, such as a single voyage or spot charter, time charter, and
bareboat charter. The last two charters may respond to the operation of ships.

2.3.7 Other players

Other players who determine marine safety include some maritime assistance
organizations, such as Coastguard, search and rescue helicopters, national maritime
institutions, marine pollution control units, etc. These players all act themselves roles in
shipping industry to improve marine safety.

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2.4 The efforts on marine safety

2.4.1 The changes of ships design, construction and equipment

Enormous effort has been made this century to improve marine safety. It is the basic
thought that people using technology, new equipment and new material, and improving
ship design and construction to reduce the rate of accidents. Today the hull and structure
of ship have been built stronger, new equipment has been used on board to improve the
safety of the ship and also to reduce marine accidents. For example tankers’ double hull
structure is a good measure to prevent ship loss and pollution in collision and ground
accident. A sounder is useful to measure the depth of water to avoid grounding. Radar can
help to reduce collisions. The Global Maritime Distress and Safety System (GMDSS) is
an international system which uses terrestrial and satellite technology and ship-board
radio-systems to ensure rapid, automated, alerting of shore based communication and
rescue authorities, in addition to ships in the immediate vicinity, in the event of a marine
distress.

2.4.2 The development of international regulations

Because shipping is an international industry, it has always been recognized that the best
way of improving safety at sea is by developing international regulations that are
followed by all shipping nations. So from the mid-19th century onwards a number of such
treaties were adopted. Particularly after the Titanic disaster, people realized the
importance and urgency to develop international regulations. So, the first version of the
International Convention for the Safety of Life at Sea (SOLAS) was adopted in 1914.
Other versions were drawn up in 1929 and 1948. In 1948 an international conference in
Geneva adopted a convention formally establishing the International Maritime
Organization (IMO). It entered in force in 1958 and the new organization met for the first
time the following year (IMO, http://www.imo.org, SOLAS,15/07/2002). So from
1959, IMO was set up and curry out the developing international regulation and
legislation work concerned with marine safety and prevent pollution. Since 1969 IMO has

13
promoted the adoption of some 40 conventions and protocols and adopted well over 700
codes and recommendations concerning maritime safety, the prevention of pollution and
related matters. In addition, IMO has adopted some important recommendations. These
recommendations have dealt with such matters as traffic separation schemes, the adoption
of technical manuals, the IMO Search and Rescue Manual and the IMO Manual on Oil
Pollution; crew training; performance standards for ship-borne equipment; and many
other tasks. There are also guidelines to help the implementation of particular conventions
and instruments. (IMO, http://www.imo.org, SOLAS,15/07/2002).

2.4.3 The marine safety institutional development

The growth of classification societies, professional institutes and seafaring unions is one
area to improve marine safety. Especially classification societies have a very important
role in marine safety. Classification societies have been increased from 3 in the last
century to over 62 today. International Association of Classification Societies (IACS), as
a non-governmental organization with 10 members and 3 associated members, was
formed in 1968 to promote the highest standards in safety and pollution prevention and to
consult and co-operate closely with the marine industry and its leading international
organizations (www.iacs.org.uk, 30/07/2002). IACS make a special contribute to
maritime safety through its members’ work. Today classification embodies the technical
rules, regulations, standards, guidelines and associated surveys and inspections covering
the design, construction and through-life compliance of a ship’s structure and essential
engineering and electrical systems, especially increasing the certificate work for ships’
safety management in recent years. Many training schools and maritime institutes also
help to reduce the accidents in the shipping industry.

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CHAPTER 3: FOCUSING ON HUMAN ELEMENT

3.1 Why focus on human element?

The safety of ships has to do with ships’ designs, constructions, regulations, and operations.
The weight of public opinion has also played its part in stimulating both the enactment of
preventive legislation and the development of safer technology. Every major disaster, from
Titanic to the Herald of Free Enterprise, Estonia, Sea Empress, has made its impact in
bringing technical change. Such as the loss of the Derbyshire, people consider more from
technology and standard of the ship, rather than the seamanship. That is why there is an
argument that if there were a good seamanship manning on board Derbyshire, would not
have lost in the Japanese sea in 1980 (NUMAST Special report, August 1999, p24).
Shipping casualties may never be completely eliminated and there is nevertheless a growing
feeling that the present rates of shipping casualty are still unreasonably high. Today, it is
believed that over 80% of marine accidents are caused by human errors. That is why we must
focus on human element when we study on marine accidents. (NUMAST Special report,
August 1999, p24).

3.2 The importance of human element in shipping casualties

The first research on human element in shipping casualties was from the Marine Division of
the UK Department of Trade (now UK Marine Directorate of the Department of Transport).
A pilot study was commissioned with the specific aim of assessing the extent of shipping
casualties caused by human error, as well as assessing how the problem might be tackled in
the beginning of 1980’s. (Bryant, HMSO, 1991,p2).
The pilot study focused on quantitative aspect of casualties, showed that valuable
information on human element could be extracted from the department’s casualty records.
The study also gives some indications of the nature of human involvement in casualties; the
highlighted findings were that the human element was present to a very considerable extent.
More specially, in those casualties where there was sufficient information to be present in

15
over 90 per cent of collisions and groundings, and in over 75% of contacts and
fire/explosions. These results have largely been borne out by studies in other countries.
• 84 to 88 percent of tanker accidents
• 79 percent of towing vessel groundings
• 89 to 96 percent of collision
• 75 percent of fires and explosions (Bryant, 1991, p65);
• Figure 1 shows the result of UK and P&I Club study on human errors in shipping
casualties.
• Figure 2 shows the result of a Japanese study on the human element in shipping
casualties in Japanese water. (UK P&I Club, July 1996)

MAIN CAUSES OF UK P&I CLAIMS

STRUCTUAL FAILURE

PILOT ERROR 2% 17%

8%
SHORE ERROR
5%

MECHANIC FAILURE

EQUIPMENT FAILURE 14%

25%
ENGINEER OFFICER
ERROR
CREW ERROR 5%

WATCH OFFICER 10%

14%
ERROR
VARIOUS OTHERS
CAUSES

Figure 1: Main causes of UK P&I Claims

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 ACCIDENTS

OTHERS 17%
COLLISION
GROUNDING ENGINE COLLISION
ENGINE DAMAGE DAMAGE 16% 52%
OTHERS
GROUNDING
15%

GROUNDING COLLISION

FAILURE TO LOCATE
17%
POSITION 24% POOR WATCH
27%
DOZING KEEPING
NO SIGNAL (FROM
SHIP) 9%
POOR COURSE
SELECTION/KEEPING NAVIGATORS 53%
INSUFFICIENT 12% JUDGEMENT ERROR
COURSE CHECKING OTHERS
21%
OTHERS 24%
13%

ENGINE DAMAGE

22%
15%
POOR MAINTENANCE/
CHECKING
POOR HADLING OF
FUEL OILS
OTHERS

63%

Figure 2: Breakdown of Marine Accidents Causes, Judgment in 1993 (Japanese Waters)

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3.3 Understanding of “human error”, “human element”, “human factor”

3.3.1 “Human error”

3.3.1.1 The definition of human error

“As a human being, no one has ever made a mistake. The man who makes no mistakes does
not usually make anything”. (William Conor Magee). Everyone made mistakes; we call these
mistakes “human errors”. IMO has also given a definition of human error:
“A departure from acceptable or desirable practice on the part of an individual or group of
individuals that can result in unacceptable or undesirable result.” (IMO, June 1997).
In here, we talk about human errors in shipping industry; these errors caused over 80% of all
shipping casualties. These human errors do not include the human errors in design and
construction; they are just the errors in a ships operation. (Final Report on Main results,
1988, p:4)

3.3.1.2 The causes of human error

In fact, the human error study is main part of human element. So, to identify the causes of
human error will be very useful to delete human errors. We ordinary divided the main causes
of human errors into 3 types (Glendon, 1995, p248), and from these areas to consider the
deleting errors.

• Skill-based: unconscious, automatic actions resulting in ships (observable-at action

stage) and lapses (inferred-at storage stage, e.g. memory failures); many of these
being monitoring failure-either inattention or over attention.
• Rule-based: following a series of steps and making a mistake-either applying good
rules incorrectly or applying bad rules to a situation.
• Knowledge-based: learning from the first principles-mistakes made during problem
solving, for example those subject to attribution biases.

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3.3.1.3 Categories of human error

Human errors can be divided into bellow 6 categories:

1) Commission (adding or including something that should not be there)
2) Omission (missing something out, for example from a sequence of steps)
3) Selection (incorrect choice from a range of options)
4) Sequence (incorrect serial positioning of actions or events)
5) Time (too late or too early with an action)
6) Quantitative (not performing an action properly) (Glendon, 1995 p340),
(National Academy of science, 1980, p8).

3.3.2 “Human factor” and “Human element”

The causes of a marine accident are often very complex and often mix more factors such as
technical factors, and environmental factors. It is not very accurate to use “human errors” to
describe the human behaves in causing marine accidents, because human error is more the
feeling of “mistake”. It is just like a sentence in P&I club’s advertisement: “It may not be
your fault but is still your liability.” So more accurate to say, these human behaves should be
human involvement in causing marine accidents. We use the term “human factor” or “human
element” to call the human involvement in shipping accidents. “Human factor” or “human
element” is more focusing on people in their working and living environments, their
relationships with other people, and technology and procedures within their surrounding
environment, rather than just mistakes. (Bryant, 1991, p1).

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3.4 The areas “human element” includes

The human element is a complex multi-dimensional issue of that affects maritime safety and
marine environmental protection. It involves the entire spectrum of human activities
performed by ship’s crews, shore-based management, regulatory bodies, recognized
organizations, shipyards, legislators, and other relevant parties. When we study the human
element in shipping casualties, we should consider the difference of shipping industry with
land industry. We should also have to consider the areas of culture, ability/situation
awareness, social, legislation, ship conditions, and health onboard. (IMO Feb 1995).

3.4.1 Culture

Different countries have different religions, different customs, and different culture. These
are different enterprise cultures in different companies. Culture is a complex area. Different
culture means people may have different attitudes on the same thing, and may solve same
problems in different ways. This may affect safety on a ship, especially on a ship with
multinational crews. Flag of convenience is a fine example as we mentioned in previous
chapter.

3.4.2 Ability-Awareness

This area includes the qualifications, knowledge, education, communication, training and
skills of the seafarers. These al affect safety onboard ship. In 1978 IMO has adopted the first
convention on seafarers’ training, certification and watch keeping, International Convention
on Standards of Training, Certification and Watch keeping for Seafarers, 1978 (STCW 78).
The Convention was the first attempt to establish global minimum professional standards for
seafarers. The Convention entered into on 28 April 1984, and has been accepted by 133
States with fleets aggregating 98.11% of the world merchant shipping tonnage (IMO 30
June 2002, http://www.imo.org ).

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Due to the shortcomings of STCW 78, especially in the lack of seafarers’ competency,
different standards between states, and the development of shipping industry, the convention
was amended in 1995. The 1995 amendments entered into force under this procedure on 1
February 1997 (STCW, 1978 IMO February 1996). Although STCW ‘95 has given some
minimum professional standards, and solved the STCW 78 problems, it is still not
completely solved all the problems of seafarers’ (ability/situation awareness), but also we
should consider the other personnel’s (ability/situation awareness), and last but more
important the managers’ (ability/situation awareness).

3.4.3 Social

In fact, seafarer job is special occupation. It is not only need professional knowledge and
skills, but also needs to co-ordinate with others for a better result. That is the reason why it is
always thought as a kind of technical occupation. Crew work and live in the same
environment of ship, the social relations between them becomes very important, especially
when these relations act in a marine accident. So, when we study human element in shipping
casualty, we must consider the social factors on board ship because are important causes of
marine accidents in many cases. The social factor study should include things such as: the
working condition on board ship, interaction, morale of whole personnel both on board ship
and shore, leadership/support between crew members and shipboard crew with shore
personnel, teamwork, and confidence of crew members. (IMO February 1995).

21
3.4.4 Legislation

A good legislation system will help to eliminate the human error. This area includes the
legislation of IMO, flag state, port state, and professional union’s legislation. IMO, as the
main body of international legislation deals with maritime fairs, and has helped to make the
industry safer.
Port state control entitles a port state to investigate the foreign ships which calling at its ports
to ensure that its marine environment has been protected as well as the ships’ safety is
checked. So, port state should make legislation, which concern port state control. Port state
control as a supplementary of flag state control ensures ships to comply with the international
conventions, regulations and legislations, especially when dealing with human element.
Flag state is very important to implement the international legislation. The legislation of flag
state does not only concern the technology of its ships, but also concerns with other social
and administrative matters, especially safety. The legislation includes the safety of ships the
manning levels of ships, the crew’s qualification standards and certificate. There are different
ship register systems in the world; different register countries have different legislation. The
rates of marine accident in different countries are different. Why is it like that? It directly
concerns these countries’ legislation. So, the flag state legislation is very important part for
human element studies. In addition, the legislation of the professional unions should also be
considered when we study the human element. It plays a very important role in improving the
skills of the seafarers (www.imo.org, Safety section, 30/06/2002).

22
3.4.5 Ship condition

Ship casualties happened and too often are related with the ship conditions. There are
obvious differences between working on a good condition ships and bad condition ships.
Firstly, the new high design/ built quality ships compare with old low quality ship, the
quality of seafarers work is fewer, and the stress of the seafarers is less. That is why there are
more accidents happen in old low quality ships. Secondly, marine safety is also concern with
technology application on board ships. But at the same time the requirement of seafarer
knowledge and skills has been increased. In addition, the maintenance and verification of a
ship are the essential factors of marine safety. All of these are related the ship onboard crews
and ship owner manager. So, study the ship condition is also an important part of human
element studies.

3.4.6 Health

The physical and mental health of crew obviously affects a ship’s safety. Ship is a very small
and most of the times bad environment for people to work and live in; there are not more
space and there is too much noise, oil and sometimes high temperature. In this situation,
health should be paid more attention, because the health of a ship’s on board personnel plays
a very important element in marine safety. It is too often reported that a health problem can
cause a marine accident. So the health of ship on board personnel is also one of the main
parts of human element studies. We study the health of ship on board personnel that is only
the physical health, the mental health also need to be mentioned. Normally we should study
areas such as: strengths, fatigue, job content/ stress, food of seafarers and accommodation as
well as manning level on board.

23
CHAPTER 4: THE CONCEPT OF THE ISM CODE

4.1 ISM Code becomes mandatory

The ISM Code itself was adopted as a recommendation in 1993. After several years of
practical experience, it was felt that the Code was so important that it should be
mandatory. The best way of achieving this would be through the International
Convention for the Safety of Life at Sea, 1974 (SOLAS). This was done by means of
amendments adopted on 24 May 1994, which added a new Chapter IX to the Convention
entitled Management for the safe operation of ships (International Command Seminar,
1997, p19) The Code itself is not actually included in the Convention, but is made
mandatory by means of a reference in Chapter IX. By adding the ISM Code to SOLAS it
is intended to provide an international standard for the safe management of ships and for
pollution prevention. The Chapter entered into force under the tacit acceptance procedure
on 1st July 1998. It applied to passenger ships, oil and chemical tankers, bulk carriers, gas
carriers and cargo high speed craft of 500 gross tonnage and above. On the 1st of July
2002 ISM Code applied to other cargo ships and mobile offshore drilling units of 500
gross tonnage and above. (www.imo.org, 28/06/2002)

24
4.2 Understanding the ISM Code

4.2.1 ISM Code and Management

Company management is responsible for developing, implementing and maintaining an

effective safety management system, onshore and on board its ships.
The aspects of the ISM Code that relate to management are:

• The development of company policy in relation to safety and the protection of the
environment
• The written definition of the responsibilities and authority of each person onshore
and on board ship, with regard to safety and environmental policy. A designated person,
acting directly for the general management of the company, must supervise
implementation and maintenance of this policy
• The preparation, distribution and periodic updating of a documentary system, in
the form of procedures, plans and instructions. Accessible to all company personnel
• The periodic review of the effective operation of the implemented system. This
enables the identification of non-conformities followed by necessary corrective action to
maintain a desirable level of safety on-shore and on the ship.
• The monitoring of the actions implemented in order to improve safety in the
company, on the basis of actual experiences (Chauvel, 1997, p8).

25
4.2.2 ISM Code and People

People as mentioned are the key to the system. The human element is also mentioned in
previous chapter.
The points of the ISM Code that relate to people are:

• Qualifications because, with a reduced crew and increasingly sophisticated

equipment, each action is important. Greater and recognized autonomy may be a question
of survival for other members of the crew
• Communication between crew members because it is necessary to issue work
orders without involuntary omissions, to ensure the continuity of safety and to avoid any
fatal breakdown
• Provision of information to seafarers on their work and responsibility to carry out
the master’s wishes and crew tasks in a safe environment
• Training of crew and on shore personnel to prevent errors and non-conformities
which may be a fatal at sea. This training also includes drills and exercises to simulate
emergencies
• Motivation for all personnel (Chauvel, 1997, p9)

4.2.3 ISM Code and Ship and equipment

While the seafarer presents the behavioral element at the heart of the system, the ship and
its equipment represent the “hardware”.
It is essential to get the relationship between ship and seafarer right. It is vital for the
seafarer to understand both his job and his working environment. People, the way they
work, and the environment in which they work in must be taken in to account as
mentioned in previous chapter. The essential points of the ISM Code referring to the ship
and its equipment are:

26
• Development of a preventive maintenance program to minimize risks of
breakdowns and accidents, but also to give the seafarer the possibility of controlling his
work environment.
• Identification and periodical inspection of all the equipment and systems
considered as critical for the safe and effective operations of the ship
• Necessary inspection and control of the instruments and materials which provide
information on the operational condition of the ship. If operational and calibration
procedures are drafted in the form of a program, this will prevent omissions and will
contribute to the creation of a safety-conscious environment for the whole crew.
(Chauvel, 1997, p10)

4.2.4 ISM Code and Procedures

Procedures are not an end in themselves but a means of transmitting the expertise
necessary in order to make progress. The essential reason for writing them down is to
enrich them with acquired experiences but also to avoid recurring errors.
“Procedure” is a word most often used in the ISM Code. This shows the importance
given to the change from an oral tradition to a written one. Speech is always be a carrier
for daily activity. Written forms of expression are intended to record data essential to the
proper functioning of the ship, and to ensure the exchange of information between the
crews.
A new balance between oral and written traditions is being asked for. Good written
documentation, and well drafted visual procedures, may become excellent tools for the
training of the personnel. (Seaways, 2001, p:5).

27
The essential points of the ISM Code relating to procedures are:

• Drafting all the operational procedures for the ship to perform its mission, within
the context of the company’s policy for safety and environmental protection
• Preparation and maintenance of operational action plans which enable personnel
to face and manage for all foreseeable situations which may effect the safety of personnel
or result in a pollution risk
• Regular training of crews in emergency exercises and practices in order to prepare
them for all eventualities
• Systematic organization of documental internal audits on the application of
procedures recommended by the company, and the follow up of any corrective measures
in line with the ISM Code.
• Analysis and handling of non-conformities(Chauvel, 1997, p11)

4.3 Objectives of the Code

The objectives of the ISM 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 marine
environment, and to property. The ISM Code establishes safety management objectives
are:
• To provide for safe practices in ship operation and a safe working environment;
• To establish safeguards against all identified risks;
• To continuously improve safety management skills of personnel, including
preparing for emergencies. (Guidelines on the Implementation of the ISM Code, 1997,
p4)

28
4.4 The importance of the role of management

When an accident happened, people very often ask why it happened. Nowadays the
technology has been developed on board ship; the seafarers have been certificate
according to STCW; various regulations have been adopted by international
organizations and flag states. The problem is that people always pay more attention on
ship hardware such as the age, the condition and technology of ship to prevent accidents,
have ignored “management” which is the most effective measure for preventing human
error and accidents. Although sometimes it seems that the main causes of marine
accidents are human error, the environment factors, the technical factors, fundamental
problem. In the background of every disaster, there must be the lack of management. For
example, the inquiry into the Herald of Free Enterprise disaster concluded that the
“underlying or cardinal faults lay higher up in the company… the board directors did not
appreciate their responsibility for the safe management of the ships” (Department of
Transport, 14/07/2002). It is too often that ship owners and managers have acted as
though their responsibility for the ship and its crew ended once in the it left port, and it is
though that the accidents are inevitable, and therefore not worth trying to prevent. In fact,
great improvements can be made, as the oil company Shell has proved. After a series of
accidents and incidents involving crew safety ion 1981- 1982, the company carried out a
major review of its procedures and introduced an Enhanced Safety Management
Program. Over the following years, safety improved by thirty times and the time lost
through injuries was cut by nearly 90%. (World Maritime Day 1997, www.imo.org,
01/08/2002).

29
4.5 Safety Management Systems (SMS)

The ISM Code requires a safety management system (SMS) to be established by “the
company”, which is defined as the ship owner or any person, such as the manager or
bareboat charterer, who has assumed responsibility for operating the ship. This system
should be designed to ensure compliance with all mandatory regulations and that codes,
guidelines and standards recommended by IMO and others are taken into account.
When developing their SMS, the companies may need to address the following elements
of safety mentioned in the Code (The Nautical Institute, 1998, p106)

• Create a safety and environmental policy for the company and ensure that it is
implemented and maintained ;
• Define and document the responsibility, authorities and interrelations of key
personnel showing the clear lines of interpretation;
• Appoint one or more designed person to ensure that the SMS is working properly
controlled and administered and to provide a link to provide a link between the Company
and those on board ships;
• Define the responsibilities and the authority of the Master as to safety and
environmental protection and their implementation onboard ensure adequate resources
are available to support the SMS;
• Develop plans for the shipboard operations concerning the safety of the ship and
pollution prevention with particular emphasis on preventive actions for special and
critical shipboard operations;
• Create procedures to identify, describe and response to emergency shipboard
situations such as hazards, accidents and failures. Contingency planning will include
program for drills and exercises to prepare for such situation;
• Report and analyze of non-conformances, accidents, hazardous occurrences and
near misses;
• Establish procedures for preventive maintenance of ship and equipment, the
sudden failure of which may result in a hazardous situation. These procedures must
provide for adequate inspections and tests use;

30
• Control with regard to development; distribution, amendment and disposal,
documentation and data necessary for maintenance of the SMS;
• Verify review and evaluate the SMS by means of internal safety audits to monitor
its effectiveness. (Guidelines on the Implementation of the ISM Code, 1997, Article
2-12 p15).

From the above requirements of SMS, we can see that the SMS is just designed for
human elements in marine accidents. These human elements includes such as fatigue, the
ability and equipment familiar of seafarers, communication problems, working and living
condition problems, low morale on board ship, and organizing failure, etc. SMS,
according to these problems, has made the safety and environmental protect policy,
defined levels of responsibilities and authority, appointed designed persons to respond the
safety. It also has developed plans for shipboard operations, created various safety
procedures which includes training, communication, emergency etc. and established a
record and report system. The importance is that SMS has set up a self-regulation , verify
review and evaluation system to keep the SMS efficiently and eliminate the influence of
the human element in marine accidents.

4.6 The Issuance of DOC and SMC

After a month or more of implementation of SMS, it has to be audited both ashore and on
board the ship to ascertain if the policies or procedures are actually effective. When the
qualified auditor (classification societies) is satisfied, a Document of Compliance (DOC
hereafter) is issued to the Company and a copy of such document should be placed on
board in order the Master may produce the verification of the Administration or
organizations recognized by it. At the same time a Safety Management Certificate (SMC)
is issued to the ship (Guidelines on the Implementation of the ISM Code, 1997,
Article 13 p25).
The DOC and the SMC are valid for a period of five years, and is verified annually. An
interim SMC, valid for no more than 12 month, may be issued to facilitate initial

31
implementation of the ISM Code and implementation where a company is newly
established or where a new ship types are added to an existing DOC. An interim SMC,
valid for not more than six months, may be issued to new ships on delivery, and when a
Company takes on the responsibility for the management of a ship which is new to the
Company. In special cases the Administration may extend the validity of the interim
SMC for a further six months. (Guidelines on the Implementation of the ISM Code,
1997, Article 13 p25).

32
CHAPTER 5: IMPLEMENTATION OF THE ISM CODE

5.1 Practical means of implementation

Shipping industry is one of the most regulative industries. There are already too much
regulations and rules. And there were many people doubt the necessity and the effect of
the ISM Code. They thought that the implementations of the ISM Code are just “political
slogans”, especially to facing the “poor performance of maritime sector in the way of
safety” it only can increase “a new industry of certificate printing” (Cohen , 1997, p7).
So a great deal work has been done by IMO, flag states and port states to ensure the
implementation of ISM Code, and bring a safety revolution in shipping industry.

5.2 Safety culture or paper chase?

The ISM Code it is designed to create a system where by everyone both aboard ship and
on shore is accountable. The drafters of the Code early intended to create accountability
by creating a paper-driven safety regime. According to a commentary on the ISM Code,
the goal is “say what you”, “do what you write,” ”record it”. In this manner, each
shipping company must develop a Safety Management System (SMS) whereby extensive
documentation of all aspects of shipboard and shore-based operations are kept.
“Deficiencies” and “non-conformities” are recorded and an extensive internal auditing
system is put in place. Much of the information generated in the SMS is reported to the
highest levels of management by the “designated person ashore” (DPA).
Will this document-driven safety system function as planned? In a perfect world, such a
system would create an environment where everyone is protected-everything is written
down neatly, deficiencies and non-conformities are honestly addressed and alleviated-
and therefore no one involved has anything to fear from the documents themselves. In

33
this manner, assuming the Code functions as designed, everyone is accountable and the
deniability of undocumented, unfavorable facts will be a thing of the past.
From a litigation point of view, however, this system may create problems for even the
most honest, above-board shipping company. Obviously, documents concerning prior
defects and non-conformities, even if they are later alleviated, provide an opportunity for
the opposition to place the ship owner in a bad light. Without the ISM Code
documentation, the prior deficiencies may never come in to light at all. (Seaways
Dec1997, p3-4).
From a safety sense, deniability is probably to deny a bad thing. In a lawsuit, however,
the ability to deny a fact not proved by the opposition can be central to an effective
defense. Further, although lawsuits involve law, in general it is the facts, not the law, that
determine who wins and who loses. Skilled lawyers may be able to obfuscate or twist the
facts so as to make the opposition look bad. The documents and the oral testimony
presented at trial are where this occurs.
The ISM Code will pay a major role because the fewer documents produced by a party in
the litigation, the fewer opportunities a skilled questioner will have to make a witness
stumble on cross-examination. Again if every fact documented pursuant to an SMS was
perfect, honest and precisely drafted, and if every employee, from the lowest seafarer
through the master, was a perfect witness whose testimony would exactly track the
documents created pursuant to the SMS, then, perhaps, there would be no dangers lurking
within the SMS documentation.
However, there will necessarily be inconsistencies in the documents. Some documents
will be inadequate, others will be overly detailed. Human nature being what it is, results
will be fudged or made to look better than they really are. Others may be thoroughly
honest- but present a bleak picture. Accordingly, ISM documentation will provide rich
folder for any skilled cross-examiner to make the most upright ship’s officer appears
dishonest. Inconsistencies and inadequacies, discovered by a diligent attorney during the
discovery process, will give rise to credibility questions. Numerous inconsistencies,
which may be inevitable, may sink an entire case. (Seaways Dec1997, p3-4).

34
5.3 International Maritime Organization (IMO)

Since ISM Code was adopted by IMO, IMO and its sub-committees have done a great
progress on the implementation of the ISM Code. A very important part of them is the
Maritime Safety Committee and the Maritime Environmental Protection Committee draft
the guideline for the implementation of the ISM Code. In order to assist flag states and
shipping companies to implement ISM Code, the Guidelines were adopted by the
assembly in November 1995 by means of resolution A788(19) (ISM Code,1997, p13). It
recognizes:

• That an administration, in establishing that safety standards are being

maintained, has a responsibility to ensure that documents of Compliance have been
issued in accordance with the guidelines,
• That there may be a need for Administrations and have two main purposes.
There are to verify that the Safety Management System (SMS) complies with the ISM
Code to assist the issue of periodical verification of the DOC and SMC. The Guidelines
are decided into four sections. The first deal with the scope and application of the Code.
The second gives guidance on verifying compliance with the Code and is particularly
concerned with the company SMSs. These should meet general safety objectives and also
the specific requirements of safety and pollution prevention. The SMS has to be approved
by the Administration and can also be audited to ensure that compliance is maintained.
These audits can be extended to matters that are not subject to statutory or classification
surveys, such as the condition of the vessel between surveys and certain operational
requirements. In such cases, the Guidelines say, “specific arrangements may be
required…such as document procedures and instructions”. (ISM Code, 1997, p14).
The third section deals with the issuance and validity of the DOC and SMC and the
fourth with the certification process. This includes initial, periodic and renewal
verification and guidance is given on how to prepare and carry out safety management
audits.
There are two appendices to the Guidelines. The first deal with definitions used in the
Code and the second one contains examples of model forms. (ISM Code, 1997, p14).

35
5.4 Flag State and Classification Society

IMO was established to adopt legislation. Flag States are responsible for implementing it.
When a flag State accepts an IMO Convention it agrees to make it part of its own
national law and to enforce it just like any other law. So, the implementation of the ISM
Code is responded by flag states, and it is a part of flag state’s administration. The flag
state control is the most effective measure to implement ISM Code (www.imo.org,
28/07/2002).
Classification Societies are authorized to develop standards according to statutory
international and national regulations, undertake these regulations compliance surveys,
and to issue the necessary certification on behalf of flag states. It is their responsibility to
carry out ISM audits and to issue the DOCs and SMCs to the complied companies and
ships on behalf of flag states. IACS, as an international association of classification
societies, in order to meet the challenge of ISM Code implementation, has taken the
initiative by developing procedural guidelines and unified interpretations of the ISM
Code, together with related requirements for the training and qualification of compliance
auditors (www.imo.org, 28/07/2002).

5.5 Port State

Port state control is a good measure for the implementation of the ISM Code as well.
After entering into force on 1st of July 1998 (ISM Code), in the light of predictions that a
substantial number of ships would not be able to meet the deadline for compliance, the
Paris MOU port state control Committee decided to mount a Concentrated Inspection
Campaign of ISM compliance. In the event the predictions of wide scale non-compliance
did not materialize. During a 3-month period nearly 1600 eligible ships were inspected of
which 81 ships were detained for major non-conformities. (Paris MOU Annual report
1998, p1)
However, an owner who did not obtain the necessary certification could become unable
to operate their ships because no port would accept them without documentation showing
that ISM Code has been implemented. But port state control, due to its limitations, can
never be able to identify all ships which do not meet international standards.

36
5.6 How to implement ISM Code

The ISM Code is formulated in general terms so that it can be widely applied. The
purpose of this chapter is to describe its implementation, step by step. The method
proposed takes account of the requirements of the Code along with management
elements of the programme the 10 steps in this programme are:
• Initial assessment
• Strategic planning
• Safety and environmental protection policy
• Responsibilities and authority
• Project team
• Company procedures
• Shipboard procedures
• Measurement and reporting
• Personnel training
• Final assessment
• Certification (Chauvel, 1997, ch4, p29).
The word ‘procedure’ appears twice in the steps of the programme, for 2 reasons:

 It is the key word most frequently mentioned in the Code. This clearly
demonstrates the importance of procedures in the documentary system which
must be created by the company;
 The procedures necessary on shore and on board a ship are not the same. They are
specific to each ship, depending on the tasks carried out by the ship, and
additional to the company procedures.
Apart from this, the other steps concern management practices for the programme. Each
is presented in an identical way. The figure 3 (source: Chauvel, 1997) below presents
the general schedule for the implementation of the ISM Code.

37
38
5.6.1 Initial assessment

Objective: Define the required performance on shore and on board ship, in relation to the
system, in order to conform to the ISM Code. This first step consists of:
• evaluating the current practices of the company in relation to the requirements of
the Code;
• Identifying the deviations in relation to each chapter of the Code;
• Presenting the deviating observed to the company’s general management and the
sectors where improvements are desirable to obtain ISM certification.

The initial assessment relates to all the activities on shore and on board the ships
concerned by certification. During this assessment, not all ships are seen, but at least one
ship per specific activity, so the assessment can indicate any weaknesses in the current
system. The results of the initial assessment should be used as a reference to measure
progress as the project is realized. (Chauvel, 1997, ch4, p30)
This step may be regarded as a snapshot of the safety management system currently in
place in the company.
The initial assessment requires the participation of each company manager. This is a
project based on team work, even if the task is assigned to someone outside the company.
The working plan is the same for certification:
• Review of the documentary system
• Audit of the practices on shore and onboard several ships.

Each manager must list supportive documentary evidence used in his department or on
board his ship, and indicate existing gaps in these. This assessment is even more
important since it shapes the action plan for obtaining the certification necessary to ships,
so that they can continue to carry out their tasks without breaking any regulations.
The initial review of the system is carried out according to the following model, figure 4
below, (source: Chauvel, 1997):

39
40
0 per cent: No evidence of written procedures.
25 per cent: Existence of written procedures covering part of the requirements of the
Code.
50 per cent: All the procedures are written and adequately cover the requirements of the
Code
100 per cent: An audit confirms that the procedures are being enforced

5.6.2 Strategic planning

Objective: Achieve implementation of the ISM Code at shore-based centers and on board
ships, in due time and at reasonable cost.
Based on the deviations observed during the initial assessment, a program must be
prepared with the aim of obtaining ISN Code certification within an acceptable period of
time. This second step consists of:

• Creating the action plans, sequence, on shore and on board the ships
• Defining and selecting realistic dates for each action
• Identifying the resources required for implementation of the program within the
agreed periods
Following the report obtained from the initial assessment, it is necessary to plan the
action to be undertaken in the time given. Implementation may take between 16 and 24
months.
A project of this size cannot be carried out blindly. The plan has an impact on the
motivation of the participants. Sometimes it is necessary to be reminded of the three
elements that for the objective:
• Realistic in terms of methods and time allowed
• Measurable in terms of comparison
• Controllable in terms of responsibility

41
If the company resources are insufficient; it should use external skills.
Not all of the points of passage proposed below have to be taken into consideration, but
the fact of asking these questions may avoid forgetting something important. (Chauvel,
1997, ch4, p32).

Initial assessment of the system

Operational planning at head office, onshore centers and standard ships

Documentary review of the existing system at head office
Audit of the on shore-based system
Audit of the system on board the ships selected
Preparation of the assessment report
Presentation of the report to the company management

Strategic planning

Management seminar on the ISM Code

Definition of priorities trends and objectives
Preparation of the action plan
Approval of the action plan

Safety and environmental policy

Development of the policy draft

Final review of policy
Commitment of general management
Formalization of the policy
Internal/external communication plan
Presentation to personnel

42
Implementation
Responsibilities and authority

Company flowcharts
Definition of responsibilities, authority and operational links
Head office and on shore-based centers
Designated person(s)
Master and officers on board ship

Project team

Definition of the task

Selection of members
Definition of responsibilities, authority and operational links
Training in project and team work
Providing information to personnel
Launching of the project

Company procedures

Development of the documentary structure

Detailed review of existing procedures
Identification of documentary requirements
Planning of the preparation of documents
Drafting of documents
Approval of documents
Implementation of documents

43
Shipboard procedures

Identification of the requirements specific to each type of ship

Development of the documentary structure specific to each ship
Detailed review of existing procedures
Implementation of documentary requirements
Planning and preparation of documents
Drafting documents
Approval of documents
Publishing of documents
Implementing documents

Measuring and reporting

Content, form and frequency of report

Responsibility for preparation
Role of general management

Personnel training

Identification of requirements
Preparation of the training program
Approval of the training program
Training management
Training personnel
Internal auditors
Appraisal of training courses

44
Final assessment

Planning the audits

Designation of the audits
Realization of the audits
Presentation of the report to the general management of the company
Implementation of corrective actions, if necessary
Preparation of the certification request file

The initial strategic planning will probably be reviewed, after several months, to become
more realistic. The advantage is in having prepared it, and knowing what is to be
modified, and why will determine impact on the expected result. (Chauvel, 1997, ch4,
p33)

5.6.3 Safety and environmental protection policy

Objective: make all the aware of the company policy selected and the commitment of the
management to ensure the success of the project.
At this stage the company has a program for implementing the ISM Code on shore and
board ship. The project must be legitimized. The third step consists of:

• Drafting the company’s safety and environment protection policy

• Informing all of the personnel of the importance of importance of the project for
the company, of its content and the planned process of implementation
• Communicating the safety and environmental protection policy and also
explaining it point by point, so that everyone can understand how they are
directly affected by its implementation.

45
By informing all the personnel before launching the program, the management shows its
commitment to the project and its determination for it to succeed in the time allocated.
It is also necessary to remember that safety and environmental protection policy is one of
the requirements of the ISM Code. This is the keystone of the program and the first
commitment of the project. It can only be devised and drafted by the general management
of the company. If drafted by the safety manager alone, it risks being seen as his policy
and not that of the company. (Chauvel, 1997, ch4, p35).

A good policy must be:

• Sufficiently wide reaching to resist the erosion of time, so that each person can
find improvement projects within it
• Oriented towards the human element, so that this can be identified in the
company policy
• Comprehensible to everyone, showing the goal to achieved
• Show the unconditional commitment of the general management

5.6.4 Responsibilities and authority

Objective: to ensure that everyone concerned in the certification project knows what
management expects from them.
When the policy is drafted, it is vital to define the role of everyone to implement and
maintain the policy over time. This fourth step consists of:

• Defining responsibilities and authority at all levels of the organization

• Establishing operational links, as clearly and as simple as possible between
company departments
• Documenting the responsibilities and authority of the departments and the
operational links between the departments
These documents are part of the company’s safety and environmental protection
manual. They must be present permanently in the on shore-based centers and on the
ships.

46
Responsibilities and authority are part of a process of delegation based on the objectives
to be reached. Apart from responsibility for the action and the authority on the action,
delegation relates to the skills of the function and responsibility of its result.
Responsibilities and authority for each function must be drafted clearly and concisely.
They must not form a succession of interminable litanies which are never understood and
difficult to update. The company flowchart is the point of departure to clarify who does
what, and who is responsible for what. Each function can only have one responsible.
(Chauvel, 1997, ch4, p36)

5.6.5 Project team

Purpose: develop and carry out all necessary actions within the context of the selected
program, and to resolve any problems which may have adverse consequences on the
success of the project.
In order to succeed, the company management must be involved in the project: but it is
also necessary to rely on a team which is responsible for carrying it out. This fifth
consists of:

• Appointing the members of the team changed with concluding the project
• Designating the members of the team who coordinates all the activities necessary
to achieving the objective
• Defining the responsibilities of each member within the team charged with the
project
• Carrying out the actions according to the program and the responsibilities
allocated to each member of the team. (Chauvel, 1997, ch4, p37).

The project manager should report directly to the company manager in relation to this
project. The team members coordinate all necessary activities in their sector of
competence.

47
Implementation of activities is the responsibility of each manager within his department.
The person designated under the safety and environmental policy should also assume
coordination of the project.
The team should be made up of people who already have management responsibilities
within the company, because once the project is concluded, they will have to continue to
assume responsibility for maintenance of the policy within the department. The
elementary process for realization of the project is as follows:

PERSONNEL &
DEPARTMENT
DESIGNATED

ENGINEERS
PERSON(S)

HEADS OF

OFFICERS
MANAGER

MASTERS
ISM TEAM
GENERAL

CREW
SAFETY MANAGEMENT SYSTEM
1- PLAN

1-INITIAL PRE - ASSESSMENT OF

SMS
R
2-TRAIN HEADS OF DEPARTMENT
& MASTERS
R T T T
3-DEFINE ACHIEVEMENTS
REQUIRED TO OBTAIN THE R P P
CERTIFICATION
4-DESIGNATED PERSON IN
CHARGE
R D MC MC

5-TRAIN ISM TEAM R R

6-REVIEW SMS DOCUMENTATION P P P P

7-PREPARE ISM ACTION PLAN R P MC MC

8-APPROVE ISM ACTION PLAN R P P P

Figure 5: Defining the objectives (source: (Chauvel, 1997)

48
 DEPARTMENT
DESIGNATED

PERSONNEL
ENGINEERS
PERSON(S)

HEADS OF

OFFICERS
MANAGER

MASTERS
ISM TEAM
GENERAL

& CREW
SAFETY MANAGEMENT
SYSTEM 2-
DO

1-PREPARE S&EP POLICY AND

COMPANY COMMITMENT
R P

2-INFORM PERSONNEL ON
PROJECT
MC R1 R2 I I

3-ASSIGN RESPONSIBILITIES
ASHORE AND ON BOARD SHIP
I P R1 R2 I

4-IMPLEMENT SMS ASHORE P R

5-TRAIN PERSONNEL ASHORE

AND OFFICERS
R P P P T T

6-IMPLEMENT SMS ON BOARD

SHIP
P R P

7-TRAIN CREWS ON BOARD

SHIP
R T D
8-CO-ORDINATE ISM ACTION
PLAN
I R P I I

Figure 6: Implementing the system (source: (Chauvel, 1997)

49
 PERSONNEL &
DEPARTMENT
DESIGNATED

ENGINEERS
PERSON(S)

HEADS OF

OFFICERS
MANAGER

MASTERS
ISM TEAM
GENERAL
SAFETY MANAGEMENT

CREW
SYSTEM
3- CHECK

1-MEASURE PROGRESS
ACCORDING TO ISM ACTION R
PLAN

2-PREPARE MONTHLY
ACTIVITIES REPORT
R P

3-PRESENT ACTIVITIES
REPORT TO GENERAL I R P P
MANAGER

4-REVIEW AND APPROVE

REPORT
R P P P

5-INFORM HEADS OF
DEPARTMENT AND MASTERS
R MC I I

6-INFORM PERSONNEL ABOUT

PROGRESS
R1 R2 I I

7-MAKE FINAL ASSESSMENT

OF SMS
R P P MC

8-ADJUST SMS IF NECESSARY R1 R2 P

Figure 7: Carrying out the final assessment (source: (Chauvel, 1997)

50
 PERSONNEL &
DEPARTMENT
DESIGNATED

ENGINEERS
PERSON(S)

HEADS OF

OFFICERS
MANAGER

MASTERS
ISM TEAM
GENERAL

CREW
SAFETY MANAGEMENT
SYSTEM
4- ACT

1-PREPARE SCHEDULE FOR

VERIFICATION
I R I P P

2-PREPARE FILES FOR

CERTIFICATION
R P I I

3-OBTAIN DOCUMENT OF
COMPLIANCE FOR SHORE- R I P
BASED OPERATION

4-OBTAIN SAFETY
MANAGEMENT CERTIFICATE R I P
FOR SHIPS

5-INFORM PERSONNEL ON
OBTAINING THE R I I I I I I
CERTIFICATES

6-RECOGNIZE PEOPLE FOR

OUTSTANDING EFFORTS AND R P P P
CONTRIBUTIONS

7-PREPARE SAFETY
IMPROVEMENT PLAN FOR THE R R MC P P
COMING YEAR

8-PLAN DATE FOR SMS

REVIEW
I R I I I

Figure 8: Obtaining certification (source: (Chauvel, 1997)

• Define achievement
• Implement SMS
• Make final assessment
• Obtain SMS certification

Each step of the process must clearly identify the sequence of actions to be undertaken
and the consequent responsibilities. By way of example, figures 5,6,7,8 show the

51
sequence of actions to be taken and the responsibilities for each stage of implementation
of the action plan.
Where: R=responsibility, R1=on shore based, R2=on board ship, P=participation
I= for information, MC=May contribute, T= training required
Each company, depending on its organizational structure, should define its own process
within the context of its project.

5.6.6 Company procedures

Objective: describe as clearly as possible all of the activities which contribute

maintenance of the safety and environmental protection policy of the company. The first
activities to undertake are generally in relation to the shore-based centers, in order to
manage the ISM system Code. The sixth step consists of:

• Listing the existing documentary system in each sector of the company

• Analyzing each existing procedure in terms of conformity to the ISM Code
• Identifying any elements missing from the system
• Draft missing or obsolete procedures
• Create the company’s documentary system in accordance with the requirements
of the Code (Chauvel, 1997, ch4, p41).

Responsibility for the system documentation (procedures, instructions and other

documents) should fall on each department manager.
All the documentation necessary to conform to the requirements of the ISM Code makes
up the ‘safety and protection of the environment’ procedures manual. The procedures
constitute the backbone of the documentary system. Without these it would not be
possible to carry out an audit of the system implemented by the company.

52
Reflections on the structure of the documentary system are essential because there are no
formal rules. Depending on the size of the company, it may be preferable to have one
single manual including all the procedures, or to create several manuals.
Whatever model is used, the procedures must be written in the working language of the
personnel. They must be drafted clearly and concisely.
The documentary system relies on a classic current model:

• Policies and responsibilities

• General procedures for onshore-based operations, common to all ships
• Procedures specific to a type of ship
• Work instructions when necessary

5.6.7 Shipboard procedures

Objective: describe as clearly and simply as possible all specific activities necessary on
each ship and their interfaces with on shore-based centers, to ensure maintenance of the
company policy wherever the ship is located.
As the documentary system is created on shore, it is necessary to think about the direct
implications and the necessary interfaces with the ships for the system to become
operational. This seventh step consists of:

• Listing the documentary system existing on board each type of ship

• Analyzing each existing procedure in terms of its conformity with the
requirements of the ISM Code
• Identifying the elements missing for each ship
• Drafting any missing or obsolete procedures
• Creating the documentary system for each ship in accordance with the on shore
documentary system and in relation to the requirements of the ISM Code
Responsibility for system documentation (procedures, instructions and other documents),
should call to each departmental manager. (Chauvel, 1997, ch4, p42).

53
There is only one policy, that of the company. This is the same on shore and on board
ship. The sections constituting the policies manual, the general procedures manual and
the procedures specific to the ship concerned should be available on board each ship. All
this documentation required by the ISM Code constitutes the safety and environmental
protection manual specific to the ship.
Even well drafted, a procedure may not be sufficient in itself especially in the case of
multinational crews. It may then be necessary to have recourse to work instructions
specific to several posts on board ship. This responsibility falls to the master and his
officers.
A work instruction is the application of part of a procedure. If it has to be translated into
work instructions, there may be a problem in drafting. Instructions must never become
permanent substitutes for gaps in the way people responsible have drafted the procedures.
They are aids and not obligations.
A work instruction may be a drawing, numbered pictograms or a simple text of stages to
follow, drafted in the spirit of the procedure.
All the procedures, for the company and its ships, are part of the documentary system
which permits demonstration of the effectiveness of the company policy in relation to the
requirements of the ISM Code.

5.6.8 Measurement and reporting

Objective: enable the general management of the company to follow the progress of the
project and to act when the situation requires this.
The time required for complete implementation of the system depends on a number of
criteria (size of the company, nature and number of ships, available internal resources
etc). it may be several months before the objective is reached.
Preoccupied by daily activities, the parties involved in the project may put off the
measures undertaken and the time frame will never be adhered to. This eighth step
consists of:

54
 • Drafting, at the beginning of the programme, schedule of meetings to review the
progress of the project
• Creating a system for monitoring the project, placed directly under the
responsibility of the project manager
• Identifying the deviations and their causes
• Taking necessary corrective actions in order to keep to the time scales or, as a last
resort, modifying the program of activities. (Chauvel, 1997, ch4, p43).

The presence and direct involvement of the general management of the company during
these meetings is essential. It confirms its wish to see the program succeed and
contributes to the motivation of the team charged with concluding the program.
Formalizing the monitoring of the project is not a luxury but simply good management
practice.
The certification process should not be perceived as an expense because it is becoming
compulsory. It must be considered as an investment, the return from which does not
depend solely on the initial expenditure, but on research into the sufficiency of the
actions undertaken. As stated earlier, it is necessary to define at the beginning of the
program the content but also the form and the frequency of reports and reviews.
During these reviews it will be possible to modify the programme, if the situation
demands, taking account of the impact of these decisions. In the case of delay, the
important thing is to understand the reason and to take all necessary measures to maintain
the final objectives.

55
5.6.9 Personnel training

Objective: develop and improve the skills of personnel on shore and on board ships with
regard to application of the company policy relating to safety and protection of the
environment. Even the most complete documentary system only has a chance of
obtaining a concrete result if the personnel alone have access to the information. It must
also understand and contain this information. The ninth step consists of:

• Preparing a cycle of training for all the managers involved in the implementation
of the new system
• Setting up the mechanisms and the means to multiply awareness of the system
implemented on shore as well as on the ships
• Arrange for the training of new employees in order to keep the system
operational
• Arrange the necessary training when modifications are made to the system
• Train the personnel according to the training cycle selected. (Chauvel, 1997,
ch4, p44)

It is not necessary to create a training manual. The best manual for management and
personnel is the procedures manual if it has been properly drafted. Videocassettes may
cover specific technical aspects. Imagination is required to maintain the level of
personnel skills.
Procedures are the first support to use during training. A simple principle exists: a
procedure without training is a useless document. Training is an integral part of the
implementation of a procedure. It is necessary to specify at each publication of a
procedure the training of those who are concerned with its daily implementation.
Training in procedures must be accompanied with practical exercises, in particular for
emergency situations. The managers responsible for the sectors concerned, and be the
subject of an appraisal should carry it out in cascades.

56
The training program may include:
• Familiarization with the ISM Code
• Implementation of the ISM Code
• Drafting procedures
• Internal audit
• Problem solving etc.

The form depends on the exercises already acquired by the company and the equipment it
possesses on shore and on board ships: formal courses, syndicate work session, individual
training, using material and equipment such as videocassettes, slides, overhead
transparencies or exercises.
Training should be a continuous process aiming to improve personnel skills, and to
integrate new employees into the operating teams.

5.6.10 Final assessment

Objective: prove that the system implemented will enable the company to obtain ISM
Code certification.
This is the culmination of the project for certification of the system in relation to the
requirements of the Code. Between the initial assessment and this step, several months
will have passed with highs and lows. Is the company finally ready for certification? This
tenth step consists of:

• Checking the key points of the system implemented last time

• If necessary, adjusting the details which might delay certification
• Preparing the certification audit for each ship. (Chauvel, 1997, ch4, p45).

This lat step before the certification process is crucial both for the general management of
the company, and the personnel who have invested their time and their efforts to obtain
certification. They would find it hard to accept safety and the protection of the

57
environment are values shared by everyone. And human beings have a need for
challenges and winning in order to be motivated.

5.6.11 Certification

Certification of a system is a binary approach: to be certified or not.

The initial assessment indicates deviations from the requirements of the ISM Code. The
final assessment must conclude that the system implemented meets all the requirements
for certification. In order words the recommended approach for the final assessment must
indicate a score of 100 per cent for each requirement of the ISM Code after the initial
assessment has been carried out.
It is desirable to instruct an external auditor, who has no participated in the
implementation of the system, to carry out the final assessment. Objective and neutral,
the auditor can quickly detect a weak point or an omission, which might hinder
certification. The corrective action undertaken, as a result of this report, will enable those
involved to present the certification dossier in complete confidence for:

• Shore based operations

• Shipboard (DETR, 1999, Ch 3, p1-2)

The subject developed in this chapter is based on a logical approach accompanied with
practical advice. This is the basis of the project which will enable the company to obtain
its certification.
Certification is not an end-goal, but a point of passage from progressing and improving
company performance by preventing risks and not by corrective actions which mobilize
personnel without any real value.

58
In addition to implementing this project, the approach has significant advantages in
relation to personnel and costs:

• Improvement of personnel skills with regard to safety

• Creation of a company culture motivated around the theme of safety and the
environment
• Improvement of the risks of conditioned reflex that can prevent a catastrophe or
improve the system
• Reduction of risks of failure, and therefore useless costs(DETR, 1999, Ch 3, p2).

If these elements can contribute to an overall improvement of the social climate in the
company, then can also contribute to better commercial relations. Safety and protection
of the environment are essential criteria in keeping with the logic of quality development.

59
CHAPTER 6: THE SURVEY - ANALYSIS

6.1 The analysis of the Survey and the key findings

By conducting interviews to designated persons, ISM auditors, owners, seafarers, persons

related with ship safety in the shipping companies, was the best way to get the whole
picture of the ISM Code perspective of those people. Safety-related personnel in major
shipping companies was more than happy to answer the simply questions which
mentioned in chapter 1, regarded ISM Code implementation. The actual interviews took
place in Piraeus, Greece.
The semi-structured questionnaire aimed to accomplish the two main objectives: To
determine how successful the ISM Code is in maintaining safety through the different
perception between the shipping companies and seafarers as well as to evaluate through
the interviews with both shipping companies and seafarers the importance of the ISM
code on board. The questions are simple in order to help the respondents to be more
comfortable when answering the questions and to make the meeting look more like a
discussion rather than an interview.
The part that is more interesting is when the same questions are answered not only by the
shore-based personnel but also from seafarers. There are shipping companies and
individual seafarers from whom ISM Code is the greatest blessing ever bestowed upon
the shipping industry -and that is because those people saw efficiency and profits increase
and claims reduced- which they directly link to their ISM Code implementation. At the
other end of the scale there are certainly those who clearly feel that ISM Code is the
greatest curse ever inflicted in the industry- many apparently believing some sort of
conspiracy that the ship operators have used ISM Code as an excuse to shift all
responsibility and liability from the office ashore onto the ship. A seafarer (2nd officer)
from a well-known major shipping company in Greece stated: “ISM Code is just for
seafarers to wash the “laundry” of those responsible in the shipping company”. (5)

60
The majority of the respondents fall between these extreme views and it is the purpose of
this survey to try to understand why different individuals and companies appear to have
different points on the compliance scale.

6.1 Problems on implementation- an international “view”

6.1.1 The multi-flagged fleet

A number of companies are operating multi flagged fleets in the world shipping industry
now. At this point it must be mentioned the fact that all of the shore-based staff as well as
all of the seafarers were working in multi-flagged companies. According to the
requirements of the International Safety Management (ISM) Code, such companies need
to have two or more Documents of Compliance (DOC’s), issued by the different
Administration. Different administrations have different views on the degree to which
audit and certification should be delegated to class or to others in some cases. So these
companies face the necessary multi verification, which is heavy burden. In fact, no matter
how many types of flags in a multi-flagged fleet, the company carries out its management
only according to one safety management system established by this company, there
needs to be negotiation regarding the verification and certification among the
administrations of parties involving in a company with a multi-flagged fleet. A director
from Golden Union S.A. based in Piraeus, Greece stated: “multi-flagged fleets will
always be a problem in the shipping industry despite the fact that facilitates and reduces
the expenses of the shipping companies”. In other words: “we are doing our job in a
cheaper “way” even though we know its not the best way to do it” (6).

61
6.1.2 The guideline for Port State Control

For port state control, there are no guidelines to govern the inspection of implementing
the ISM Code. As a result, there are two possibilities in this regard. One is only check the
DOC and Safety Management Certificate (SMC). Another one is to make more inquiries,
examine the document of the SMS, or carry out the operational inspection. For the latter,
the problem of language used in the document of Safety Management System (SMS)
could be involved.(Baochen, 1996, p361).

6.1.3 The ISM “cheats”

In the first page of Lloyd’s List on 29 March 1999, there was news about “ISM cheats
using temporary crews” (www.Lloydslist.com, 27/07/2002). We were told that there
were two cheating cases had been reported by ISM auditors in European port, with
number of similar unconfirmed cases. So we are facing question that how to completely
prevent this kind ISM cheat. Another problem is how a surveyor of classification society
surveys ISM implementation. Different classification societies have different ways. Just
using checklist to finish paper documents’ check and asking crew questions are not
enough, such as Lloyd’s Register of Shipping. The fact that this kind of “show me safety”
check is not enough, and the reason is that there may be cheats. Although the surveyors
just in short time survey a ship and one of the most efficient ways is check all documents,
but practical situation on board ship should be checked as well, particularly the
organization, safety procedures and operation skills of seafarers on board ship.

62
6.3 The impacts of the ISM Code

6.3.1 Expand the safety responsibility

The ISM Code is the first to clearly define “company” as the person who has assumed
the responsibility for operating the ship. This means all the persons who respond to
operate ships should respond for their operating ships’ safety. A seafarer believes that:
“good operational management can reduce shipping accidents…” and continues “… but
serious operational failings continue to contribute to a major of accidents”. In other
words “don’t blame as (the seafarers) for the accidents, personnel operating the ship has
a responsibility too”. (7). So the safety of ships is not only the ship owner or manager
responsibility, but also the responsibility of all persons involved the ship operation, such
as bareboat charterer, etc. in fact, these persons act very important roles in marine safety,
it will improve the safety on board ship due to the ISM Code expand the safety
responsibility to these persons.

6.3.2 Improve the compliance of international and national regulations

Shipping industry is a dangerous industry. In order to improving the safety, there are a
number of regulations and rules that have been made from the lessons of marine
accidents. That is why the shipping industry is also the most regulative industry.
However, the poor compliance of these regulations and rules is still the big problem of
the shipping industry. One of the objectives of the ISM Code is to improve the
compliance of national and international regulations. As implementing ISM Code, it will
improve the compliance of these regulations and rules

63
6.3.3 Improve management and increase competition of company

ISM Code is the first time of International Maritime Organization (IMO) to adopt a
management standard in the shipping industry. It requires companies to set up an
effective, self-regulating, safety management system. Just like The International
Association of In depended Tanker Owners (INTERTANKO), the organization of
independent tanker owners, has for instance described the Code as “one of the most
important safety initiatives ever investigate by the marine community. Compliance with
its provision entails a top-down company wide commitment”. For a company the impacts
of the implementation of ISM Code can be described as:
(Bramsen,http://home3.inet.tele.dk/, 05/08/2002)

• An improvement in the safety consciousness of the company, which made the

safety management more scientific
• An improvement in safety management skill of personnel both aboard and ashore,
which can efficiently to eliminate the accidents happen
• The establishment of a safety culture that encourages continuous improvement in
safety and environment protection
• Improved company morale and clear the relationships and authorities both ashore
and aboard
• Reduced accidents and great confidence on the part of clients and insurance
underwriters. Det norske Veritas, the Norwegian Classification Society (DNV) surveys of
companies that have implemented Safety Management Systems show substantial saving
are possible

1. 6% to 10% reduction in P&I premiums

2. 10% to 15% reduction in the cost of hull and machinery insurance
3. 15% to 25% reduction in hospital hours
4. 25% to 35% reduction in lost man hours

64
5. 35% to 45% reduction in sick leave
6. 50% to 90% reduction in cargo damage

• Cost savings resulting from improved efficiency and productivity

(Bramsen,http://home3.inet.tele.dk/, 05/08/2002)

6.3.4 Develop a safety culture across the whole shipping industry

As implementing the ISM Code, a safety culture is developed across the whole shipping
industry, and impacts all participants of the shipping industry. The regulations and
conventions such as Safety of Life At Sea Convention (SOLAS), International
Convention for the Prevention of Marine Pollution for Ships (MARPOL), International
Convention on Standards of Training, Certification and Watch keeping for Seafarers,
1978 (STCW), Collision Regulations (COLREG), International Maritime Dangerous
Goods Code (IMDG Code), etc. which adopted by IMO, can be implemented and
complied very well. For flag state, the administrations have been improved, like the
training, certification of seafarers, the safety standards of ships, etc. Especially for the
safety standards Flag of Convenience have been improved. It is the first time
classification societies have been involved into a non-technical area. They have to make
safety management standards, survey, class and certificate ships and companies. For the
ship insurance underwriters, they will get benefit from the implementation of the ISM
Code, and they may change the rules of insurance, and refuse to insure the ships that
company does not comply with ISM Code. For port states, due to the implementation of
the ISM Code, shipping company will implement the ISM Code as well as improve
management and get great benefits. “It is still early days in the implementation and
development of the ISM Code in the establishment of a safety culture across the shipping
company…” and continues “… nevertheless, the considerable effort expended so far by

65
shipping companies towards compliance has shown benefits”. In other words “we saw the
implementation of the ISM Code in phase 1, lets see how phase 2 will be implemented
and then we can draw our conclusions. You can’t have safety culture throughout the
whole shipping industry in just 4 years time!” This stated by a Captain from East
Mediterranean Limited and shows the holistic approach of the implementation part of the
ISM Code. Its another point of view that we should look at. (4)

66
CHAPTER 7: CONCLUSIONS

7.1 Best measure against human element in marine accidents

In shipping industry, management plays a very important role, especially to improving

marine safety the major problems of human element in marine accidents are always
concern with management, such as manning level, seafarer training on board, the duty
arrangement, stress, organizing on board ship, etc. So safety management can be best
measure to take account human element. The ISM Code has set up a standard of safety
management, and requires company to set up a safety management system (SMS). The
SMS is designed for the human elements in marine accidents and improving the lack of
safety management. So, ISM Code has been regarded as the most important single
development in marine safety. It has brought a safety revolution across the whole of the
shipping industry. It is believed that if the ISM Code had been adopted just a few years
early, the whole shipping industry would be safer today.

67
7.2 Effective implementation? How?

7.2.1 Auditing

One of the best measures for better implementation of the Code is the audits. Audits may
be classified into three different types, depending upon the relationship between the
auditor and the auditee. The type of audit may influence some of the generally accepted
protocols employed in the audit process. Examples could include such areas as hoe much
‘advice’ an auditor should be expected or encouraged to give to the auditee.
1. A first party audit (An internal audit): carried out by an organization on itself, using
one of their own staff or a specialist and qualified sub-contractor as the appointed auditor:
in simple terms, US-ON-US.
2. A second party audit (An external audit): carried out by, or on behalf of a customer, or
possibly, a sub-contractor on another sub-contractor or potential sub-contractor for the
supply of goods or services. Again, simply put, US-ON-THEM.
3. A third party audit (An external audit): normally carried out by a certification body,
statutory body or suitably independent body for the purpose of some form of approval or
endorsement. Usually authorized or accredited, without any commercial interest in the
auditee. In this case, THEM-ON-US.
It is interesting the answer from a safety training officer in a question of how is auditing
contributes in marine safety: “It is now proved that well experienced internal auditors
and well trained officers together can give multiply benefits to their shipping company as
well as improving the safety, and provide a link between safety on shore and safety on
board”(4). More interesting though is the opinion of a Captain who is more than 5 years
in the same shipping company! : “Audits do not spot light the negative and positive
aspects of managements’ safety culture. However the accident investigation allows
investigators to home in on weaknesses of the system to a degree which is impossible for
an auditor to identify in the limited time available to him!”(10).

68
It is obvious that those 2 opinions are conflicting! There were two more shipping
companies in which shore-based staff and seafarers were interviewed but there were no
conflicting opinions. Conflicting opinions show that the communication between shore
and ship is in low level. Consequently how this company, (for various reasons it is not
mentioned in the main body but in Appendix 4), will improve safety on board ship if it
can’t yet communicate? This is one of the main problems that must be eliminated in
every shipping company before start thinking of improving safety.

7.2.2 Commitment from the top

“Ship owners nowadays have understand that owning a shipping company its not only the
profit that you have to have in mind. Safety culture derives from the ship owner. Off
course time is money but company without safety might cost not only money but lives as
well”(11). This is a seafarer’s opinion when he was asked what did he think that ship
owners are having in mind. As mentioned the fact that there were shore-based staff and
seafarers interviewees from the same shipping companies was interesting. What is more
interesting is the fact that none of them did not want to express his opinion about the ship
owner!

7.2.3 Continuous improvement- Management review

“While many senior managers recognize the long-term benefits associated with an
effective safety management system, the inclusion of system goals is rarely included in a
company's strategic plan.” DPA’s opinion from CERES shipping about continuous
improvement and management review (9). To simplify that: “By integrating Management
Review and strategic planning, a company can maximize cost- benefits and overall
company performance”. For instance, savings can be achieved by eliminating duplicate
meetings that requires the attendance of senior. Further savings can be gained when the
brightest minds in the company begin to examine system performance.

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7.2.4 Training

When we are talking about training we are not only talking training on board but also on
shore training. The reason of training on both ‘sides’ is to inspirited the necessity for ISM
Code. What does the word ‘training’ include? Training on board ship has a lot of
meanings: bridge resource management, safety matters such as enclosed space entry,
English language, ship handling etc.
“The standard of safety can, to a large extent, be improved through education and
training” (8). While these terms are familiar to everyone it is difficult to know what is
involved in each, because their close inter-relation. Some believe that education is theory
and training is practice while others regard education and training as teaching
respectively the ‘why’ and ‘how’ of a task. It would be therefore useful to consider their
similarities and differences.

7.2.5 Computerized plan system

The American Bureau of Shipping has developed a computer database system (SafeNet)
that was originally designed for tracking survey information. The system has now
evolved into a fully capable tool for maintaining a safety management system. It also
allows a company to pursue the holy grail of a "paperless" system. SafeNet has a
modular design and a company can pick and choose different modules to suit its needs.
The complete suite of SafeNet modules handles nearly every aspect of operational
management, and also includes a payroll module. Fully integrated, the modules eliminate
the need for repetitive data entry, share information between modules, and allow the user
to move rapidly from one module to another.

The following SafeNet modules have direct or indirect applicability to a Safety

Management System:

70
 • Survey Status contains complete information on the status of all class and
statutory surveys for a company's entire fleet, even if the vessels are not classed
by ABS.
• Marine Information provides a library of relevant publications and listings of
type-approved equipment, and recognized suppliers from the Fairplay Shipyard
Directory.
• Crew Management records and maintains data pertaining to onboard personnel,
both actively and previously employed.
• Hull Maintenance provides a sophisticated management and information system
covering the structure of the vessel throughout its service life.
• Maintenance & Repair records all maintenance work performed on a vessel by
the crew or outside contractors. It provides a complete, planned machinery and
vessel compartment maintenance history.
• Purchasing & Inventory Control provides a two-step process for ordering
materials and supplies. Requisitions are issued to record material orders by a
vessel and Purchase Orders are used to place material orders with vendors.
Inventory Control tracks equipment parts and consumable items at various sites,
including onboard each vessel within a fleet and at shore-side facilities.
• Code Compliance is designed to simplify the storage, tracking and recall of
incidents and documents required by the ISM Code and the STCW Convention.
• Vessel Drawings allows the user to electronically retain a lifecycle suite of
drawings within SafeNet. The system offers extensive search capability.
Drawings can be made available in the office, onboard the vessel or in the repair
yard. Users can view details of the drawings, including drawing description and
number, that relate to any time point in the vessel's history.

In area of change, the Internet has hit the economy of North America and much of the
world like a tidal wave. New concepts such as the free distribution of information and
products in order to gain market share, and e-commerce have tilted conventional thinking
on its ear. Central to what many are now calling the "New Economy" is the Network
Effect - also known as Metcalf's Law. The network effect is a simple mathematical

71
formula: the sum of a network increases as the square of the number of members. Or, as
members join a network arithmetically, the value of the network increases exponentially.
As bandwidth increases and satellite communications costs decrease, it will soon be
economical to equip vessel with access to the Internet. When this change occurs,
companies will become more network oriented. This includes leveraging Intranet
technology because of its compatibility with the Internet. “E-mail will be come the
primary means of communication between company shore facilities and vessels”(4).
Stated by a seafarer (2nd officer) of a major shipping company. Company vessels will also
be able to pass on lessons-learned, and mariners will be able to collaborate on various
processes. Of course, this implies further training. However, as various technologies are
linked, increased productivity will allow for further crew reductions.
In the not to distant future, other advanced technologies and services such as GPS,
ECDIS, and SafeNet will be linked to the Internet. This will allow for constant tracking
by management and regulatory agencies. Ships will be provided with constantly updated
weather routing information, port information, tides and currents, access to technical
drawings, medical advisory services, database and search procedures and a whole host of
other information technology (IT) products. The efficiency of the electronic marketplace
should be the salvation of the smaller shipping companies. Increased use of e-commerce
will allow for the inexpensive out-sourcing of virtual management systems via
centralized computing.

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7.3 ISM Code: Phase 1 complete – Phase 2 started

Phase 1:

The International Management Code for the Safe Operation of Ships and for Pollution
Prevention (ISM Code) became mandatory for most ships trading internationally on 1
July 2002. Compliance with the Code has been mandatory for tankers, passenger ships
and bulk carriers since July 1998, under the first phase of ISM implementation, and now
all other vessels covered by the SOLAS Convention, which includes all but the smallest
internationally-trading vessels, must comply. (www.mpa.gov.sg, 27/04/2002).
“This is important, because we know that human factors account for most accidents at
sea - and that many of them can ultimately be traced to management. The Code is helping
to raise management standards and practices and thereby reduce accidents and save
lives” experienced crew manager stated (12).
In looking at the Phase 2 implementation of the ISM Code, it is useful to look at some of
the issues that arose during the implementation of the ISM Code Phase 1. Based on
feedback gathered from the classification societies, the following are some of the major
lessons learnt from ISM Phase 1:

Application for shipboard audits:

As mentioned earlier, there were a large number of companies trying to implement the
Code at the last minute and this led to a sharp increase in application for shipboard audits
close to deadline. This creates a backlog of work for the Classification Societies, and
companies run the risk of not being able to obtain ISM certification in time. This could
result in the company having to stop operations and lead to a loss of revenue. Companies
are therefore advised to start implementing ISM Phase 2 early to avoid such a situation.

73
Need for commitment :

During Phase 1 of the ISM Code, many shipping companies were either not aware of the
ISM Code, thought that the ISM Code would not actually come into force or that the
deadline for compliance would be extended. From the experience in Phase 1, we know
that the deadline will not be extended and the ISM Code is definitely here to stay. It is
therefore best for companies to take the ISM Code and its deadline for compliance
seriously, and to look at how to effectively implement the Code.

Safety Management Systems:

Many companies had put too much detail in their SMS when a simple SMS covering all
the necessary areas would have been sufficient. Such companies have the mentality that
“more means better”, which is not always true. Interesting statement from a shipbroker
who is 30 years in this job: “ Shipping companies should develop a system that covers all
the necessary aspects but is not unduly complicated for implementation”. (13).

Phase 2:

The Secretary-General of the International Maritime Organization (IMO), Mr. William

A. O'Neil, has welcomed the publication of the results of a new study carried out by The
Swedish Club confirming that ship owners implementing the ISM Code can expect to
achieve a reduction in hull claims of 30 per cent or better, together with a similar
improvement in the incidence of P&I claims. (www.imo.org, 02/08/2002). The study
followed one carried out in 1999 which had reviewed claim trends in the three years to 30
June 1999 indicating that the claims development during the period was 30 per cent better
for those ships for which 1 July 1998 was the implementation date - the phase 1 ships.
(www.imo.org, 02/08/2002).

74
Recalling the increased safety awareness and environmental consciousness that effective
implementation of safety management systems can bring, Mr. O'Neil notes the beneficial
impact on safety and environment as well as the benefits to be gained by the shipping
industry in meeting the ISM Code's objectives. The reduction of accidents and incidents
following ISM Code implementation reported by some companies and the encouraging
results reported by port State control authorities with respect to ISM Code
implementation on the phase 1 ships, both point to the positive effect of the Code on
operational standards. (www.imo.org, 02/08/2002).
With an estimated 13,000 ships requiring certification by the second deadline of 1 July
2002, and IACS reports of around 6,000 ships certificated to date, there is clearly no
room for complacency and urges those shipping companies that have yet to start
implementing their safety management systems to do so without further delay.
(www.imo.org, 02/08/2002)

7.4 The importance of motivation (A= (K+S) x M)

In previous chapters it is mentioned briefly the importance of motivation. In this chapter

motivation and its importance will be analyzed.
All these years many people tried to find measures for better safety on board ships and
for environmental protection. Conclusions that made up were: in order to achieve a goal
(in this case the goals is safety), ability is required. What ability means? A formula has
been produced and tested by many shipping companies in order to give an explanation on
what ability means. The formula is:

A= (K+S) x M

A= ABILITY, K=KNOWLEDGE, S=SKILLS, M=MOTIVATION

75
We can easily see that in order to have ability knowledge, skills and more important
motivation is required. But why do we add knowledge with skills and why we multiply
motivation? The only way to understand the formula is by giving example:

ISM Code is a set of rules requirements and regulations. Measuring all the above (K,S,M)
as % a fine example will be like this: Assuming that someone has the knowledge of all
these rules and requirements of the ISM Code and lets assume that he or she has the skills
as well to implement and apply those rules when needed. So, lets say 90%=K and
65%=S. initially the equation will be:

A= (90+65) x M =>A=155 x M

In this case there are two options:

a) if there is no motivation from the person who has the knowledge and the skills
then motivation in the equation will be equal to 0.then the equation will be:

A=155 x M [M=0] =>A=155 x 0 =>A=0

b) on the other hand if the same person want to apply those rules correctly and have
the motivation (e.g. M=10), then the equation will be like:

A=155 x M [M=10] => A=155 x 10 =>A=1550

All these means that even though all these rules and regulations are well awarded from
both seafarers and shore-based staff motivation is very important in order to improve
ability. But why do we want to improve ability in the first place? The fact that ability can
improve safety rises from the fact that motivation has proved to be the key word when we
are talking about ship’s safety, marine accidents and environmental protection.

76
Consequently ISM Code without motivation (commitment from the top, ship owner
motivation, safety culture), will not have the same effectiveness and the same
implementation. So, is ISM Code finally working? If yes how and under what
circumstances? The progress that have been made in the past 20 years as far as safety is
concerned, showed that rules are rising continuously but problems to implement them
will always arise. ISM Code is working but on different levels of a scale, and this is
because whilst ships to which the Code applies have been audited and are carrying the
Safety Management Certificates, and likewise the companies managing them holding
Documents of Compliance, ships are still being detained through Port State Control
(PSC) inspections, maybe not through direct contraventions of the ISM Code but through
other issues which a safety management system should be identified and corrected.
Motivation as mentioned is the starting point when implementation of any code no just
ISM Code, is taking place in shipping industry. A major benefit of the ISM Code is that
it encourages lessons to be learned from incidents. Although these incidents may not be
significant, they could, in other circumstances, have endangered life and the environment.
By learning lessons, safety procedures can be reviewed and amended to reduce risk of
occurrence. Global improvement in safety management as a result of ISM Code
implementation is dependent on the willingness of flag States and companies to
investigate incidents and share the safety lessons without looking for someone to blame.
The sharing of responsibility between companies and interested states will increase the
change that the thorough investigation is undertaken and effective safety action taken.
Implementation of the ISM Code offers the opportunity for the industry to move away
from a culture biased towards blame to one of shared sense of personal responsibility for
safety throughout the organization. It is the shipping companies who can provide the
driving force needed for this cultural change.

77
 ACKNOWLEDGEMENTS

I wish to extend my gratitude to the following for their assistance in

supplying information for my thesis:

SHORE-BASED PERSONNEL

 Golden Union Shipping CO. S.A.

8 Aegaleo street, 185 45 Piraeus, Greece

George Gabriel (Director)

 CERES Hellenic Shipping Enterprises Ltd.

69 Akti Miaouli, Piraeus 185 37, Greece

Stylianos Andriotis

(Training Officer Safety Training and Environmental Protection Division)

Mike Shucker

(Vice President Safety Training and Environmental Protection Division Manager)

 AVIN International S.A.

12A Irodou Attikou Street Marousi 151 24, Athens, Greece

Marina Papadopoulou (Administrative Assistant)

78
 Safety Management Overseas S.A

Allasia Building 13, B Merarchias, Piraeus, Athens, Greece

Andreas Andriopoulos (Superintendent Engineer)

Grigorakos Dimitrios (Crew Manager)

 CARRIERS Chartering CORP. S.A

4-6 Efploias Street, Piraeus 185 37, Greece

Moshoyannis George (Chartering)

 EFPLOIA Shipping Co S.A

L.C Lemos Maritime House, 111 Filonos Street 185 35, Piraeus Greece

Georgia Kapeoldasi (Marine Department Safety Division)

 EASTERN Mediterranean Maritime Ltd

85, Vouliagmenis Avenue (CITY PLAZA), 166 74 Glyfada, Greece

Cap Elias Stathakis (Manager – Marine Personnel Department)

79
 SEAFARERS

 CERES Hellenic Shipping Enterprises Ltd.

69 Akti Miaouli, Piraeus 185 37, Greece

Karamanis Pantelis, Master Mariner

Dimitrios Mandrohalos, Chief Enginner

 AVIN International S.A.

12A Irodou Attikou Street Marousi

151 24, Athens, Greece
Nikiforos Antonios, 2nd officer

 EFPLOIA Shipping Co S.A

L.C Lemos Maritime House, 111 Filonos Street

185 35, Piraeus Greece
Antonopoulos Nikolaos, 2nd officer

 MINOAN Lines Shipping S.A.

Central Bureau 17, 25th August Street
712 02 Heraklion , Crete Greece
Houliaris Evagelos, Chief Officer

80
 LYRAS Shipping Limited
Deuteras Merarhias 42, Akti Miaouli,
Piraeus, Greece
Phoivos Stavropoulos, 2nd Officer

 KRISTEN NAVIGATION
354 Sygrou Avenue GR 176 74,
Athens, Greece
Asiminas Anastasios Chief Officer

 Safety Management Overseas S.A

Allasia Building 13, B Merarchias,

Piraeus, Athens, Greece

Vassilikis Konstantinos, Captain

81
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CHAPTER 1: INTRODUCTION

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82
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83
CHAPTER 3: FOCUSING ON HUMAN ELEMENT

1. Bryant D.T, (1991), “The human element in shipping casualties”, London:

HMSO.
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Chapman and Hall, January 1995.
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Casualties”, Annex 3. Feb 1995.
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Human Element Common Terms. IMO, June 1997
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International Convention on Standards of Training, Certification and Watch
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Manning” July 1996

84
CHAPTER 4: THE CONCEPT OF THE ISM CODE

1. Chauvel. A. M, 1997, Managing Safety and Quality in Shipping, The Key to

Success, A Guide to ISM-ISO 9002-TQM, The Nautical Institute.
2. Department of Transport (UK), M/V Herald of Free Enterprise, Report of court
No. 8074- Formal investigation (Hon. Mr Justice Sheen-Wreck Commissioner),
July 29th 1987, London, Her Majesty’s Stationery Office, 1987, isbn 0 11 550828
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Phase II, The Tavistock Institute of Human Relations.
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28/06/2002].
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Code : Guidelines on the Implementation of the ISM Code, 1997 edition,
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Code: Guidelines on the implementation of the ISM Code, 1997 edition,
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the Panel on Human error in Merchant Marine Safety Maritime Transportation
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Detail, Arne Sagen MNI Principal Surveyor, Authorized ISM Code auditor, ISO
assessor, Port State Inspector)

85
 10. The International Command Seminar, 21-22 May 1997, London, Organized by
The Honorable Company of Master Mariners, The International Federation of
Shipmaster’s Associations, The Nautical Institute, Trinity House.
11. The Nautical Institute, 1998, The Nautical Institute on the Management of Safety
in Shipping, Operations and Quality Assurance.

CHAPTER 5: IMPLEMENTATION OF THE ISM CODE

1. Chauvel. A. M, 1997, Managing Safety and Quality in Shipping, The Key to

Success, A Guide to ISM-ISO 9002-TQM, The Nautical Institute
2. Cohen Captain Amos, (1997), “The ISM Code and STCW 95 Implementation”,
Letter to the editor, BIMCO, Bulletin February ‘97.
3. IMO Website: http://www.imo.org/home.asp , [accessed 28/07/2002], Safety
section, Flag states – Classification Societies.
4. Paris MOU Annual report 1998, Paris memorandum of understanding on port
state control.
5. Seaways, December 1997, Bruce. G. Paulsen, “Safety Culture or Paper Chase?”,
A New York lawyer looks at the ISM Code, The International Journal of The
Nautical Institute.

86
CHAPTER 6: THE SURVEY – ANALYSIS

1. Baochen Zhan, 1996, ISM Code in China, Seminar on Maritime Collision, Dalian
China, Marine Collision and Prevention. Chiavari.
2. Bramsen Arne, ISO 9002 and ISM Code Implementation and Audit,
http://home3.inet.tele.dk/arne_b/ism_iso/no_frame/ismcode.htm,[accessed
05/08/02].
3. Lloyd’s List Website: ISM Code Cheats:
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e&var_element=LLPortal/content/dynamic/generic/render_article&display_chann
el=maritime&article_id=20012534865 , [accessed 27/07/2002].
4. Personal Interview with 2nd officer Phoivos Stavropoulos, from Lyras Shipping
Limited, 05/07/2002
5. Personal Interview with Asiminas Anastasios (2nd officer) in Kristen Navigation,
02/07/2002.
6. Personal Interview with Captain Elias Stathakis, Manager in Marine Personnel
Department in Eastern Mediterranean Shipping Company, 14/06/2002.
7. Personal Interview with director George Gabriel, Golden Union Shipping CO.
S.A. 24/06/2002.

87
CHAPTER 7: CONCLUSIONS

1. International Maritime Organization (IMO) Website:

http://www.imo.org/Newsroom/mainframe.asp?topic_id=67&doc_id=1453,
[accessed 02/08/2002].
2. International Safety Management Code (ISM), 1997, “ISM Code and Guidelines
on Implementation, International Maritime Organization”, London 1997.
3. Department Environment Transport Regions, 1999, “International Safety
Management Code for the Safe Operation of Ships and for Pollution Prevention,
The ISM Code, Instructions for the Guidance of Surveyors”, The Maritime
Coastguard Agency.
4. Personal Interview with Marianna Papadopoulou, Administrative Assistant, Avin
International S.A, 17/06/2002.
5. Website: http://www.mpa.gov.sg/homepage/shippingnews/ism/ism.htm ,
[accessed 27/04/2002], “ISM Code Implementation”.
6. Leadley.J.M, 05-06/03/2002, Notes based on the “Maritime Internal Auditor”
course, Millennium Maritime Services, Warsash Maritime Center.
7. Personal Interview with Stylianos Andriotis, Training Officer Safety Training and
Environmental Protection Division, CERES Hellenic Shipping Enterprises Ltd.
19/06/2002.
8. Personal Interview with Mike Shucker MNI, Senior Vice President Safety
Training and Environmental Division Manager, CERES Hellenic Shipping
Enterprises Ltd, 17/06/2002
9. Personal Interview with Captain Vasilikis Konstantinos of Overseas Management,
Shipping Company, 03/07/2002.
10. Personal Interview Houliaris Evagelos, Chief Officer of Minoan Lines,
07/07/2002.
11. Personal Interview with Grigorakos Dimitrios, Crew manager of Overseas
Management Shipping Company, 25/06/2002
12. Personal Interview with the Shipbroker Moshoyianni George of the Carries
Shipping Company, 30/06/2002.

88
 BIBLIOGRAPHY

IMO DOCUMENTS

Resolutions

1) A.443(XI) Decisions of the shipmaster with regard to maritime safety and marine
environment protection

2) A.741(18) International Management Code for the Safe Operation of Ships and
for Pollution Prevention (International Safety Management (ISM Code).
(Revokes resolution A.680(17))

3) A.788(19) Guidelines on implementation of the International Safety Management

(ISM Code) by administrations. (Assembly Resolution

4) A.848(20) Implementation of the International Safety Management (ISM) 1997

5) A.852(20) Guidelines for a structure of an integrated system of contingency

planning for shipboard Emergencies

6) A.880(21) Implementation of the International Safety Management (ISM) Code

by 1 July 2002

7) A.913(22) Revised guidelines on implementation of the International Safety

Management (ISM) Code by administrations

8) MSC.104(73) Amendments to the International Safety Management (ISM) Code.

Adopted on December 5, 2000.

89
 Circulars

FSI

1) FSI/Circ.9 List of non-governmental organizations authorized to carry out surveys

and issue certificates 27/11/2000 on behalf of Administrations

MSC

1) MSC/Circ.693 Draft amendments to the International Safety Management Code

26/05/1995

2) MSC/Circ.761 Timely and effective implementation of the ISM Code.

11/07/1996

3) MSC/Circ.762 & Guidance to companies operating multi-flagged fleets and

supplementary guidelines to administrations

4) MSC/Circ.771 Implementation of the International Safety Management (ISM)

Code. 12/12/1996

5) MSC/Circ.828 & Implementation of the ISM Code and interim documentation

MEPC/Circ.334 07/11/1997

6) MSC/Circ.881 Implementation of the International Safety Management (ISM)

Code by 1 July 2002 14/12/1998
http://www.imo.org/includes/blastData.asp/doc_id=807/881.PDF

7) MSC/Circ.890 Interim guidelines for port state control related to the ISM Code
18/12/1998
http://www.imo.org/includes/blastData.asp/doc_id=817/890.PDF

8) MSC/Circ.927 Documents of compliance issued under the provisions of the

International Safety Management 21/07/1999 (ISM) Code. 1999
http://www.imo.org/includes/blastData.asp/doc_id=1069/927.pdf

9) MSC/Circ.994 The beneficial impact of the ISM Code and its role as an indicator
of safe operation and MEPC/Circ.381 environmental protection 01/05/2001
http://www.imo.org/includes/blastData.asp/doc_id=1163/994-MEPC-Circ.381.pdf

10) MSC/Circ.1020 Implementation of the International Safety Management (ISM)

Code by 1 July 2002-02-25

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 IMO MATERIAL ON THE WEBSITE

1) 78% of fleet set to meet ISM target, says IMO Briefing, 9 April 1998
http://www.imo.org/HOME.html

2) ISM Code becomes mandatory Briefing 1 July 1998

http://www.imo.org/HOME.html

3) ISM Code must not become "paper exercise" warns Secretary-General. In his
opening remarks to the 9th session of the Sub-Committee on Flag State
Implementation yesterday, (19 February 2001) IMO Secretary-General William
O’Neil has renewed calls for effective and conscientious implementation of the
International Safety Management (ISM) Code. Stressing that the shipping
industry should spare no effort in making the ISM Code work, Mr O’Neil told
delegates: "We should not allow it to become merely a paper exercise." ,
Briefing 2/2001 http://www.imo.org/HOME.html

4) IMO welcomes ISM Code study : ISM Code Phase 2 ships. IMO has welcomed
the results of a study confirming that shipowners implementing the ISM Code can
expect a reduction in hull claims of 30% or better. Briefing 22/2001
http://www.imo.org/Newsroom/mainframe.asp?topic_id=67&doc_id=1453

5) IMO issues ISM Code warning. IMO issues reminder to shipping companies to
plan their ISM Code implementation activities without delay if they are to meet
the 1 July 2002 deadline. Briefing 03/2002
http://www.imo.org/Newsroom/mainframe.asp?topic_id=583&doc_id=1842

91
 OTHER WEBSITES

Germanischer Lloyd http://www.germanlloyd.org

IACS/ISM White List (Fairplay) http://www.fairplay-

publications.co.uk

International Association of Classification http://www.iacs.org.uk

Societies (IACS)

ISM and the USCG Port State Control http://www.uscg.mil/hq/gm/pscweb/ISM.htm

Programme

ISM Code sponsored by The North East http://www.ismcode.net

Branch of the Nautical Institute /content.html

USCG: NVIC 5-99 - Guidance Regarding http://www.uscg.mil/hq/

Voluntary Compliance with the g-m/nvic/5_99/n5-99.pdf
International Management Code for the
Safe Operation of Ships and Pollution

GUIDELINES

AMERICAN BUREAU OF SHIPPING (ABS). - ABS Marine Services Marine

management and ship operation guideline ISO 9002/ISM Code : Management systems -
Guideline for marine management and ship operation based on the requirements of ISO
9002 and the International Management Code for the Safe Operation of Ships and for
Pollution Prevention (ISM Code). London : ABS Marine Services, 1994

BUREAU VERITAS - ISM Code certification scheme. Paris : Bureau Veritas, 1995

BUREAU VERITAS - La Maîtrise du Code International de Gestion de la Sécurité (Code

ISM) : Colloque organisé par: Institut Méditerranéen des Transports Maritimes et Bureau
Veritas, Marseille, le 21 mars 1995. Paris : Bureau Veritas, 1995.

CYPRUS MARINE ENVIRONMENT PROTECTION ASSOCIATION (CYMEPA) - A

10 minute guide on the IMO's ISM Code. Limassol : CYMEPA, 1995

INTERNATIONAL ASSOCIATION OF CLASSIFICATION SOCIETIES (IACS)

- Guidance for IACS auditors to the ISM Code. London : IACS, 1996

- Interpretation of the International Management Code for the Safe Operations of Ships
and for Pollution Prevention (ISM Code), adopted by IMO Resolution A.741(18).
London : IACS, 1995

92
- Procedural guidelines for ISM Code Certification. 3rd ed.. London : IACS, 1995

- Guidance for IACS Auditors to the ISM Code. London, IACS, 1995

- Synopsis of the IACS Model Course for Training ISM Code Auditors. London, IACS,
1995

- IACS white list : Certificates issued, listed by flag state http://www.iacs.org.uk

Fairplay IACS White List Database
http://www.fairplay.co.uk/databases/ism/search.asp

-IACS procedural requirements for ISM Code Certification. Rev.6 (2000). Effective
01/02/2001. http://www.iacs.org.uk

INTERNATIONAL CHAMBER OF SHIPPING (ICS) - Assessment and Development

of Safety Management Systems. Part I : Assessment Checklist; Part II : Example
Documentation. London, ICS, 2 vols

INTERNATIONAL CHAMBER OF SHIPPING (ICS) / INTERNATIONAL SHIPPING

FEDERATION (ISF) - Guidelines on the application of the IMO International Safety
Management Code. 3rd ed.. London : ICS/ISF, 1996

93
 CONFERENCE PAPERS

1) BOURNE, R. - The International Safety Management Code : The importance

placed upon it by Lloyd's Register. In: Nautical Institute. Forth and West of
Scotland Branches Marine safety management - International conference and
exhibition (29-30 March 1995 : Glasgow). London : The Nautical Institute, 1995

2) BOTTERILL, G.J. - Quality and safety management in shipping, ISO 9002

including the mandatory IMO's ISM Code. In: Zhao, J. (Eds. et al) Maritime
collision and prevention - Proceedings of the Hill Taylor Dickinson Seminar -
China (21 September 1996 and the International Conference on Preventing
Collision at sea : Dalian). Epsom (Surrey) : Chiavari Publishing, 1996, pp
369-378

3) BROMBY, M. - Ensuring compliance with the IMO's Code and its place within
quality management systems. In: IIR Ltd. Cost-effectively implementing quality
management systems in shipping to meet and exceed the latest marine safety and
quality standards - An intensive two-day International Forum (27-28 March 1995
: London). London : IIR Ltd., 1995

4) CHAUVEL, A-M / BUREAU VERITAS - Links between the ISM Code and ISO
9002 standard. In: IBC Legal Studies and Services Ltd Achieving safety at sea :
Practical strategies for implementing the ISM Code - Conference (14-15
October1996 : London). London : IBC Legal Studies and Services Ltd, 1996

5) CLIPSHAM, R. / INTERNATIONAL FEDERATION OF SHIPMASTERS'

ASSOCIATIONS
6) (IFSMA) - Implementing and operating marine safety management systems to
meet and exceed the ISM Code : "How are we going to ensure world wide
standards and credibility" : Paper delivered at a meeting in London, March 25-26
March 1996. London : IFSMA, 1996

7) COOPER, G.B. - ISM Code / Flag state responsibility - The Liberian experience.
In: IBC Legal Studies and Services Ltd Achieving safety at sea : Practical
strategies for implementing the ISM Code - Conference ( 14-15 October 1996 :
London). London : IBC Legal Studies and Services Ltd, 1996

8) CORSE, J.H. - Examining aspects of the ISM Code. In: IIR Ltd Developing,
implementing and auditing marine safety systems to ensure compliance with the
ISM Code - Conference (10-11 March 1997 : London). London : IIR Ltd, 1997

9) COWLEY, J. - The concept of the ISM Code. In: The Institute of Marine
Engineers (IMarE) IMAS 95 - The Institute of Marine Engineers conference
proceedings on management and operation of ships : Practical techniques for
today and tomorrow (24-25 May 1995 : London). London : IMarE, 1995, pp 3-37

94
10) CUBBIN, A. - Implementing the ISM Code : The port state perspective In:
DMG Business Media; Safety at Sea and Marine Electronics Exhibition and
Conferences, Sasmex 1998. -- Redhill (Surrey) : DMG Business Media, 1998
(Paper 3 - Day 1)

11) EDWARDS, K. / CHANNEL ISLAND SHIP MANAGEMENT LTD - The

International Safety Management Code : Documentation and process control. In:
IBC Legal Studies and Services Ltd Achieving safety at sea : Practical
strategies for implementing the ISM Code - Conference (14-15 October 1996 :
London). London : IBC Legal Studies and Services Ltd, 1996

12) EVANS, E.C. – Experience and expectations of the ISM Code and other
legislation : A shipmaster’s point of view : Paper delivered at the Registro
Italiano Navale (RINA) International Symposium, Rome, October 9th, 2000).
Genova, RINA, 2000.

13) GOLD, E. / AUSTRALIAN MARINE PILOTS ASSOCIATION (AMPA) - The

ISM Code and the STCW revisions : Lessons in corporate responsibility? : Paper
delivered at the Australian Marine Pilots Association (AMPA) conference, March
11th, 1998.

14) GRAY, J.
- Setting up the safety management system. In: IBC UK Conference Ltd Port
state control : Managing safety and quality in shipping - Conference (2-3
December 1998 : London). London : IBC UK Conference Ltd, 1998

15) - Understanding the practicalities of the IMO's ISM Code and how it will affect
your future ship management. In: IIR Ltd Successfully implementing and
operating marine safety management systems to meet and exceed the ISM Code -
International Conference (31 May - 1 June 1995 : London). London : IIR Ltd,
1995

16) GU, W. / WANG, J. - The assessment and evaluation of the ISM Code. In:
Zhao, J. (Eds. et al) Maritime collision and prevention - Proceedings of the Hill
Taylor Dickinson Seminar - China (21 September 1996 and the International
Conference on Preventing Collision at sea : Dalian). Epsom (Surrey) : Chiavari
Publishing, 1996, pp 362-368

17) HELLENIC CHAMBER OF SHIPPING - Seminar on Implementation of the ISM

Code (Development and Implementation of the ISM Code). Some papers are
reproduced in the English Supplement to the Hellenic Chamber of Shipping
Review, no 145, pp 79-132

18) HUNTER, J.A.D. - The International Safety Management Code : Shipowners'

perspective of its development : A success or a failure? In: Institute of Marine
Engineers/Maritime and Coastguard Agency (MCA) New safety culture :

95
 Conference Proceedings. London : The Institute of Marine Engineers, 1998, pp 3-
7 (Part II)

19) HUTTON, H.M. - ISM Code : Company-wide commitment required. In: ;

American Bureau of Shipping (ABS) Safer ships competent crews -
International Conference (24-25 October 1996 : Halifax, Nova Scotia). New York
: ABS, 1997, pp 65-70

20) IBC LEGAL STUDIES AND SERVICES LTD - Achieving safety at sea :
Practical strategies for implementing the ISM Code - Conference (14-15 October
1996 : London) . London : IBC Legal Studies and Services Ltd, 1996

21) INSTITUTE FOR INTERNATIONAL RESEARCH (I RR) - Developing,

Implementing and Auditing Marine Safety Management Systems to ensure
compliance with the ISM Code. Proceedings of a Conference held at The Forum
Hotel, 10th and 11th March 1997. London, IRR Ltd, 1997

22) INSTITUTE FOR INTERNATIONAL RESEARCH (I RR) - Beyond ISM :

Putting your marine safety management system into practice - Conference (24-25
June 1998 : London) . -- London : IIR Ltd, 1998

23) INSTITUTE FOR INTERNATIONAL RESEARCH (I RR) - International Safety

Management Code – Conference (24-26 April 1995 : London). London, IIR Ltd,
1995.

24) JARASHOW, R.L. - Is the ISM Code a saviour, a nightmare, neither or both? :
Speech delivered at the Liberian Shipowners Council meeting in London, October
17, 1996. - New York : Watson, Farley and Williams, 1996

25) KOCH, E. - The expectations of shipmanagers from flag states in relation to the
1995 amendments to the STCW convention and the ISM Code In: Ministry of
Communications and Work (Cyprus) - Maritime Cyprus Conference, (Limassol,
1997). Limassol, Ministry of Communications and Works, 1997.

26) LINDVALL, C. - Is the ISM Code a friend to the shipmaster?. In: Nautical
Institute For operators, ship captains and those aspiring to command - The
International Command Seminar (10-11 May 1995 : London). London : The
Nautical Institute, 1995, pp 58-63

27) LLOYD'S SHIP MANAGER (LSM) - Ship management in a change global

market - The International Ship Management Conference (19-20 September 1994
: Limassol) . London : Lloyd's of London Press, 1994

28) MARSHALL, M. -Port state control, ISM and insurance. In: IBC UK
Conferences Port state control : Managing safety and quality in shipping -
(10-11 July 2000 : London). London : IBC UK Conferences Ltd, 2000

96
29) MASUDA, M. - THe ISM Code's contribution to improved safety. In: Korea
Maritime Dangerous Goods Inspection Center (KOMDIC) ISTGD :
International Symposium on the Transport of Dangerous Goods by Sea and
Inland Waterways - Proceedings (13th : 26-28 October 1998 : Seoul). Seoul :
KOMDIC, 1998, pp 267-275

30) MAVROMATAKIS, E.J. - ISM Code : Is it different from an offshore safety

case?. In: Institute of Marine Engineering Safe and efficient ships : New
approaches for design operation and maintenance - ICMES 96 : International
Conference on Marine Engineering Systems (13-14 June 1996 : . London : The
Institute of Marine Engineers, 1996, pp 47-55

31) MCGUIRE, G. - Quality and the ISM Code : The common foundation. In:
Nautical Institute. Forth and West of Scotland Branches Marine safety
management - International conference and exhibition (29-30 March 1995 :
Glasgow). London : The Nautical Institute, 1995

32) MEJIA, M. – Performance criteria for the International Safety Management (ISM)
Code : In: International Association of Maritime Universities (IAMU) IAMU
2001 Proceedings (2nd General Assembly) (Kobe, 2-5 October 2001).Kobe, Kobe
University of Mercantile Marine, 2001, pp 109-116

33) MINISTRY OF COMMUNICATIONS AND WORK (Cyprus) - Maritime

Cyprus Conference (Limassol, 1997). Limassol, Ministry of Communications and
Works, 1997.

34) MITROPOULOS, E. E. (Director, Maritime Safety Division, IMO) -

Development and Implementation of the ISM Code. Hellenic Chamber of
Shipping Review no 145, 1997, English Supplement, pp 83-89

35) OKAMURA, B. – International Safety Management Code, the latest

developments. In :Institute for International Research (IIR) : International Safety
Management Code Conference (April 1995 :London). London, IIR Ltd, 1995.

36) OLSEN, O. - The implementation and training requirements of the ISM Code. In:
Nautical Institute. Forth and West of Scotland Branches Marine safety
management - International conference and exhibition (29-30 March 1995 :
Glasgow). London : The Nautical Institute, 1995

37) PAYER, H.G. - The ISM Code and the 1995 amendments to the STCW
Convention : The role of the auditing body In: Ministry of Communications and
Work (Cyprus) - Maritime Cyprus Conference, (Limassol, 1997). Limassol,
Ministry of Communications and Works, 1997.

97
38) REGISTRO ITALIANO NAVALE (RINA) - International seminar on port state
control and implementation of ISM and STCW 95 (10 June 1998 : Rome).
Genova, RINA, 1998

39) SERGHIOU, S. - Compliance with the ISM Code. In: Lloyd's Ship Manager
(LSM) Ship management in a changing global market - The International Ship
Management Conference - Cyprus (5th : 19-20 September 1994 : Limassol).
London : Lloyd's of London Press, 1994

40) SHIELDS, P. - Requirements under the ISM Code. In: Nautical Institute The
mariner and the maritime law : Seminar 7 - Pollution - (15-16 November 1996 : .
London : The Nautical Institute, 1996, pp 93-100

41) SONCINI, G. - PMS (Planned Maintenance System) on ships : Dream or reality?.

In: Institute of Marine Engineering Safe and efficient ships : New approaches
for design operation and maintenance - ICMES 96 : International Conference on
Marine Engineering Systems (13-14 June 1996 : . London : The Institute of
Marine Engineers, 1996, pp 105-109

42) STERRETT, D.J. - The importance of the IMO International Safety Management
(ISM) Code. In: Australian Maritime Safety Authority (AMSA) "Ships of
shame" : What can be done? - Conference (20-21 September 1993 : Newcastle).
Canberra : Australian Government Publishing Service, 1993

43) STONELEY, J. - Shipowners' view of port state control and impact of ISM Code.
In: IBC UK Conference Ltd Port state control : Managing safety and quality in
shipping - Conference (2-3 December 1998 : London). London : IBC UK
Conference Ltd, 1998

44) TRAVES-TAYLOR, .M. - Implementing the ISM Code : An effective response

for shore management and sea staff. In: Nautical Institute The International
command seminar - (21-22 May 1997 : London). London : The Nautical
Institute, 1997, pp 19-25

45) VESSEY, A. - The IMO's ISM Code and it's related relationship with ISO 9002,
together with essential advice on maintaining a quality/safety management
system. In: IIR Ltd. Cost-effectively implementing quality management systems
in shipping to meet and exceed the latest marine safety and quality standards : An
intensive two-day International Forum (27-28 March 1995 : London). London :
IIR Ltd., 1995

46) WILLIAMS, P.J.- The implications of the ISM Code to the packaged dangerous
goods transport by sea. In: Korea Maritime Dangerous Goods Inspection Center
(KOMDIC) ISTGD : International Symposium on the Transport of Dangerous
Goods by Sea and Inland Waterways - Proceedings (13th : 26-28 October 1998 :
Seoul). Seoul : KOMDIC, 1998, pp 117-122

98
47) WOININ, P. - ISM Code : Identifying and reporting risks. In: International
Federation of Shipmasters' Association (IFSMA) Unity for Safety at Sea -
Annual General Assembly (23rd : 23-24 May 1997 : London). London : IFSMA,
1997, Agenda Item 18

48) ZHANG, B. - ISM Code in China. In: Zhao, J. (Eds. et al) Maritime collision
and prevention : Vol. 1 - Proceedings of the Hill Taylor Dickinson Seminar -
China (21 September 1996 and the International Conference on Preventing
Collision at sea : Dalian). Epsom (Surrey) : Chiavari Publishing, 1996,
pp355-362

99
 ARTICLES FROM THE PRESS

1) 'IMO to promote safety seminars'. (IMO is hosting the first of a series of

seminars on the ISM Code, to be held in Panama during the week starting
February 24) - LLOYD'S LIST, 10 February 1997, p 3

2) 'You ready for this?'. (It can take up to 18 months to prepare for and gain
certification to the ISM Code which comes into effect in less than 18 months'
time. Ship operators that have not yet come to grips with what certification means
may find it hard to meet the necessary standards in time) - HAZARDOUS
CARGO BULLETIN, February 1997, pp 63,65

3) ''ISM Code "A business challenge"'. (Speaking at an LLP-organised conference

entitled "Shipping Guidance through the Global Maze Conference", Achilles
Vardakis, chairman and chief executive officer of Shipmanagement Expert
Systems, said the code was a business approach which had played an important
role in some companies' success) - LLOYD'S LIST, 22 February 1997, p 12

4) 'Ensuring that the certification process is entirely above board'. (One of the major
concerns of Shipowners embarking on the road to International Safety
Management Code accreditation is the need for total transparency of the system) -
LLOYD'S LIST, 3 March 1997, p 8

5) 'How we can make the ISM Code effective' - LLOYD'S LIST, 10 March 1997, p
8

6) 'Owners set to miss ISM boat'. (Delays in preparing for the ISM Code are causing
increasing worry to the UK Mutual Steam Ship Assurance Association) -
TRADEWINDS, 14 March 1997, p 25

7) 'Potential legal implications of ISM Code'. (There has been considerable debate
about the legal implications of the ISM Code, and in particular, the possible
changes that the code may bring to a shipowner's liability) - INDIAN SHIPPING,
Vol 48, No 12, pp 13-14

8) 'P&I club issues safety software'. (A software draft of a safety management

system - ISM Template - that will meet the requirements of the ISM Code has
been issued by the UK P&I Club to its members) - LLOYD'S CASUALTY
WEEK, 21 March 1997, p iii

9) 'Denholm head warns industry on lack of ISM Code progress'. (The "wider
shipping industry" needs to wake up to the implications of the International Safety
Management (ISM) Code, according to Denholm Ship Management) - LLOYD'S
LIST, 27 March 1997, p. 3

100
10) 'ISM Code: will we get there in time?' - LLOYD'S LIST, 28 March 1997, p 5

11) ''Owners warned about ISM'. (Oil major Mobil warns owners that they face ruin if
they don't get ISM Code certification by the July 1998 deadline) -
TRADEWINDS, 27 March 1997, p 2

12) 'Clarksons gives warning on ISM Code'. (There is likely to be a profound change
in the way that Shipowners and managers regard the purchase and supply of
bunkers once the ISM Code becomes mandatory, suggests Mike Ball, a director of
international shipbrokers Clarksons) - LLOYD'S LIST, 2 April 1997, p 8

13) 'Focus on quality'. (With the approach of the ISM Code, attention is focused on
quality issues) - THE BALTIC, March 1997, pp 77-79

14) 'The ISM Code: a progress report'. (Meeting hosted by The Nautical Institute to
establish if there were a particular role for the Nautical Institute in helping
implement the ISM Code and, if so, what this should be) - SEAWAYS, April
1997, pp 11-12

15) 'Harmony in safety'. (Ensuring ISM Code regulations do not vary state-to-state is
vital if these regulations are to succeed globally. In response, IATCA
(International Auditor and Training Certification Association) was formed in
1995) - HAZARDOUS CARGO BULLETIN, April 1997, p 70

16) 'Watching the clock'. (Many are already enjoying the benefits of ISM and quality
assurance. Many aren't) - LLOYD'S LIST MARITIME ASIA, April 1997, pp
42-46

17) 'ISM the legal implications'. (Although the ISM Code is a set of guidelines and
not, in itself, law, its terms carry considerable legal impact) - LLOYD'S LIST
MARITIME ASIA, April 1997, p 47

18) 'Cultural revolution can bring new attitudes to maritime safety'. ( ISM marks a
shipping safety breakthrough on a par with the introduction of the Plimsoll Line
1876, seafarer trade unionists believe) - LLOYD'S LIST, 28 April 1997, p. 10

19) 'Newswround : ISM Code'. (Bureau Veritas is expanding its ISM Code training
courses) - LLOYD'S LIST, 29 April 1997, p. 16

20) 'Last chance safety code warning'. (J. Bell (IACS) quotes: "of 19,000 ships which
would require documents training by July next year, only 1,561 have so far been
certificated") - LLOYD'S LIST, 30 April 1997, pp 1,5

21) 'Slow owners running out of time on ISM deadline'. (Many Shipowners continue
to ignore the implementation of a key piece of safety legislation, despite warnings

101
 that ships will be banned from ports or detained when the new ISM Code comes
into force next year) - TRADEWINDS, 1 May 1997, p 3

22) 'ISM Code opens Shipmanagers to some big claims'. (Shipmanagers are becoming
increasingly aware of the implications of the ISM Code on responsibility and
liability) - LLOYD'S LIST, 8 May 1997, p 5

23) 'EC plans early ban on ISM Code defaulters'. (Concentrated inspection
programme agreed on port state control) - LLOYD'S LIST, 21 May 1997,
24) p 1

25) 'ISM code call to insurers'. (The head of ILU has urged marine insurers to monitor
clients' progress towards the ISM Code or face criticism after the 1998 deadline) -
LLOYD'S LIST, 23 May 1997, p 1

26) 'Hong Kong owners move on ship safety'. (ISM Code compliance well advanced)
- LLOYD'S LIST , 24 May 1997, p 10

27) 'USCG proposes regulations to implement ISM Code' - GOLOB'S OIL

POLLUTION BULLETIN, 23 May 1997, pp 7-8

28) 'British-flag vessels ISM deadline hope'. (All British-flagged vessels liable to
comply with ISM safety rules in the first round are likely to meet the July 1998
deadline, the Marine Safety Agency official in charge of certification believes) -
LLOYD'S LIST, 28 May
29) 1997, p 12

30) 'Approaching ISM'. (Most recent estimates indicate that reaching full compliance
with the ISM Code and obtaining certification will take the average vessel
between twelve and sixteen months) - BIMCO BULLETIN, April 1997, pp 12-13

31) 'Training sea and shore staff for the ISM Code' - BIMCO BULLETIN, April
1997, pp 14-18

32) 'Port state control steps up a gear'. (Detention in port or a ban from MOU waters
will face vessels failing to implement the ISM Code from July 1, 1998) -
FAIRPLAY, 29 May 1997, p 10

33) 'Quality: one step beyond'. (No serving ship's officer can any longer ignore the
impact of ISM, ISO 9002 and other quality measures. But what to do? How to
implement programmes that require meticulous planning?) - SEAWAYS, June
1997, pp 3-8

34) 'Facing the deadline for the ISM Code'. (The mid-1998 deadline for meeting the
ISM Code is fast approaching. How are the classification societies helping
shipowners face the challenge?) - SAFETY AT SEA, May 1997, pp 12-14

102
35) 'ISM Code: avoiding non-conformities and speeding compliance'. ( Michael
Pearson, Head of ISM Code certification for ABS Europe outlines how ship
operators can streamline their approach in order to meet the Code's 1 July 1998
deadline) - SAFETY AT SEA, May 1997, pp 16-17

36) 'ISM Code: software and training update'. (To assist in the preparation for the
ISM Code, ship operators can use various software packages or undertake
training) - SAFETY AT SEA, May 1997, pp 19-20

37) 'A viewpoint: Roberto Salvarani'. (Head of Maritime Safety and Pollution
Prevention at the EC reviews the effect of the latest EU Directive and the ISM
code on European shipping) - 100A1, Issue 2, 1997, pp 4-7

38) 'Fears of ISM disruption'. (Shipping could face disruption next year when new
safety rules become mandatory as only some 8 per cent of vessels have won
certification so far) - LLOYD'S LIST, 18 June 1997,
39) p 3

40) 'Role of the human element in maritime casualties'. (Implementation of ISM Code
submitted by the IACS) - HELLENIC CHAMBER OF SHIPPING, March/April
1997, pp 100-126

41) 'ISM defaulters face UK arrest'. (Ships face arrest at UK ports if they fail to
comply with the ISM Code after the international deadline of July 1, 1998) -
LLOYD'S LIST, 20 June 1997, p 1

42) 'Singapore pushes for ISM compliance'. (Only 20 per cent of the 990
Singapore-registered ships have obtained the safety management certificates that
will be required under the new ISM Code) - TRADEWINDS, 20 June 1997, p 19

43) 'Underwriters in Norway start ISM Code list'. (Norwegian marine underwriters
will start developing statistics on the ISM code status of all ships and companies
underwritten in the Norwegian market) - LLOYD'S LIST, 23 June 1997, p 3

44) 'ISM raises P&I cover questions'. (Shipowners may find their protection and
indemnity cover in jeopardy if they do not take speedy action to comply with the
ISM Code) - TRADEWINDS, 27 June 1997, p 14

45) 'Maritime lawyer warns that ISM Code requirements could hurt shipowners in
court'. (The extensive records that shipowners will requires to keep under the ISM
Code after the code enters into force next year could be used as evidence against
the shipowners in US courts, particularly in any litigation arising from oil spills,
according to Bruce Paulsen) - GOLOB'S OIL POLLUTION BULLETIN, 20 June
1997, pp 5-6

103
46) 'Germany ahead on ISM'. (Germany's shipowners are well ahead of schedule
implementing the ISM Code, according to the association of German shipowners
Verband Deutscher Reeder) - LLOYD'S LIST, 2 July
47) 1997, p 12

48) 'Letters to the Editor: ISM Code "black hole" on arrested ships' - LLOYD'S
LIST, 4 July 1997, p 5

49) 'ISM code will not be a UK Club cover condition' - LLOYD'S LIST, 18 July
1997, p 1

50) 'Non-compliance with ISM code may cause business losses for shipowners' -
LLOYD'S CASUALTY WEEK, 27 June 1997, p ii

51) 'Ukmar earns ISM Code certificate'. (Ukrainian shipmanagement company Ukmar
is the first in its country to obtain the ISM Code document of compliance for part
of the fleet it manages) - LLOYD'S LIST, 24 July
52) 1997, p 3

53) 'Gloomy statistics may hide a rosier ISM picture'. (The ISM Code, less than a year
to come into force, is not being taken seriously enough and may be heading for a
crisis) - TRADEWINDS, 25 July 1997, pp 16-17

54) 'Certification delays cast doubt on ISM'. (Slow response sparks fears over IMO
deadline. Only around one in 10 of the 19,000 ships obliged to comply with the
ISM Code by next July have so far been certified by leading classification
societies, it emerged this week) - LLOYD'S LIST, 31 July 1997, p. 1

55) 'Editorial : Storm waiting'. (The Implementation of ISM Code) - LLOYD'S LIST,
1 August 1997, p. 5

56) 'ISM stays in the slow lane'. (Shipowners continue to show little sense of urgency
over the introduction of the International Ship Management (ISM) Code, despite
repeated warnings emanating from research and key sources that the process of
implementing is going far too slowly) - TRADEWINDS, 1 August 1997, p. 2

57) 'Certification delays spark IMO warning'. (IMO Secretary-General warns : "It is
impossible under Solas to extend the deadline. There should be absolutely no
doubt in people's minds that ships do not carry ISM documentation from July 1st
next year will violate the Solas Convention) - LLOYD'S LIST, 2 August 1997, p.
1

58) 'Template giving pattern for the future'. (Survey by UK P & I Club indicates that a
fair number of ships obliged to comply the ISM by Next July will not met the
deadline) - LLOYD'S LIST, 4 August 1997, p.5

104
59) 'Hungry ghosts'. (Chen Tze Penn, director general of the Maritime Port Authority
of Singapore, reminded the participants of the seminar on the safety of crew and
ships at sea, that the adoption of the ISM Code signifies the dawn of a new culture
in the shipping industry) - FAIRPLAY, 7 August 1997, p 4

60) 'Class highlights transfer loophole to ISM deadline'. (Shipping companies in

danger of failing to comply with the ISM Code by the July 1 1998 deadline could
gain an extra year's grace period by transferring the management of their ships to
a newly formed company) - TRADEWINDS, 8 August 1997, p 19

61) 'Ships face warning at ports'. (Vessels calling at port in Europe, Russia and
Canada are to be served warning notices if it found that they are ignoring the new
ISM Code) - TRADEWINDS, 8 August 1997, p 19

62) 'ISM Code will "increase legal burden"'. (A legal conference held in Kuala
Lumpur has found that while the ISM Code may drive standards higher for those
who participate, there may also be an operational and legal burden) - LLOYD'S
LIST, 11 August 1997, p 8

63) 'On course for ISM'. (The ISM Code has inspired a host of training courses,
software packages and guidance literature to help owners prepare for certification)
- THE MOTOR SHIP, August 1997, p 43

64) 'Maritime safety - An update'. (ISM Code) - PARLIAMENTARY MARITIME

REVIEW, No 29, 1997, pp 1-2

65) 'Is Solas now optional?'. (A UK shipping newspaper stated that the UK Club
would not insist on compliance with the ISM Code as a condition of cover) -
FAIRPLAY, 14 August 1997, p 3

66) 'US warns over ISM evasion'. (The US has warned the world's shipowners and
operators that it will crack down hard on any vessels that try to enter the country's
waters after July 1, 1998, without valid ISM Code certification) - LLOYD'S
CASUALTY WEEK, 15 August 1997, p iii

67) 'P & I Clubs facing a difficult decision over the ISM Code' - LLOYD'S LIST, 27
August 1997, p. 8

68) 'Time wasters : O'Neil attacks ISM sloths'. (With less than a year to go before the
ISM Code becomes mandatory, the secretary-general of the IMO, Bill O'Neil, has
warned shipowners that missing the implementation date could have disastrous
consequences for their companies) - FAIRPLAY, 28 August 1997, p. 3

69) 'Calamity beckons in ISM : Owners set steady course for disaster'. (Peering into
the nebulous mists, James Bell, permanent secretary of the International

105
 Association of Classification Societies, predicts that many shipowners will not
have accreditation by the deadline) - FAIRPLAY, 28 August 1997, p. 21

70) 'O'Neil in ISM warning'. (Slow implementation of safety code "will hurt shipping
lines") - LLOYD'S LIST, 4 September 1997, p 3

71) 'ISM Compliance'. (Special Report) - LLOYD'S LIST, 10 September 1997, pp

8-11

72) 'Slow progress causes concern at IMO'. (Rear Admiral Efthimios Mitropoulos,
director of IMO's Maritime Safety Division, "expects" the ISM Code to become
mandatory on July 1, 1998) - LLOYD'S LIST, 10
73) September 1997, p 11

74) 'International Safety Management (ISM) Code' - PARLIAMENTARY

MARITIME REVIEW, No 30, 1997, pp 4-6

75) 'Comment: Hands-on review of ISM'. (It will be a poor reflection on the shipping
industry if the ISM deadline cannot be met) - LLOYD'S SHIP MANAGER
October 1997 , p 3

76) 'The whole picture'. (As the deadline for ISM compliance looms, sectors from all
areas of the shipping industry are endeavouring to ensure they meet the target
date. Special Report). - LLOYD'S SHIP MANAGER October 1997 , pp 53-62

77) 'Numast warning on ISM deadline'. (Numast is urging the UK government to take
a tough line with shipowners who fail to comply with the ISM code) -
TELEGRAPH October 1997 , p 2

78) 'Impose ISM calls to insurers'. (Amid continuing concerns over shipping safety,
underwriters have been urged to boycott flags of bad repute) - TELEGRAPH
October 1997 , p 10

79) 'IUMI misses ISM chance'. (At its annual conference in Paris last month, the
International Union of Marine Insurance failed to put down a specific motion for
its members stating that it would support the ISM Code by expressly not insuring
those ships that, by next July, do not conform) - FAIRPLAY 16 October 1997 ,
pp 24-25

80) 'Intertanko claims 60 per cent ISM Code compliance'. - LLOYD'S LIST 17
October 1997 , p 1

81) 'MSA (Australia's Maritime Safety Authority) gets tough with ISM Code
compliance'. - LLOYD'S CASUALTY WEEK 3 October 1997 , p i

106
82) 'Intertanko in ISM warning'. (Intertanko chairman Richard Du Moulin, speaking
at the Bermuda International Shipping Association annual conference, said a
substantial proportion of the world's fleet set to miss the ISM code's first-phase
compliance deadline of July, 1998) - LLOYD'S CASUALTY WEEK 17 October
1997 , p iii

83) 'Standard warns on ISM criteria compliance'. (The Standard P&I Club has issued
a stiff warning to its members about the need to comply with the statutory
requirements of the ISM Code) - LLOYD'S LIST 23 October 1997 , p 6

84) 'Greece is warned on US zeal for ISM'. (The London office of the Greek Shipping
Co-operation Committee has issued a letter of warning to members concerning
USCG implementation procedures for the ISM Code) - LLOYD'S LIST 23
October 1997 , p 3

85) 'Intertanko presses on ISM'. (Intertanko chairman Richard Du Moulin has

expressed concern at the current low levels of ISM code compliance and urged
owners not to leave implementation to the last minute) - FAIRPLAY 23 October
1997 , p 9

86) 'ISM "will boost scrapping"'. (Between now and the end of 1998 the dry bulk
market will see a significant number of vessels heading for breakers' yards,
according to Esref Cerrahoglu, chairman of Turkish based Cerrahgil. The
introduction of the ISM Code will be responsible for forcing many nits out of the
market) - FAIRPLAY 23 October 1997 , p 49

87) 'UK Club backing code'. (ISM certification commitment ends months of
speculation) - LLOYD'S LIST 30 October 1997 , p 1

88) 'IMO report set to dispel gloom over ISM code' . (Research findings from the
IMO, due to be released shortly, are set to challenge gloomy industry assumptions
about the rate of compliance with the ISM Code) - LLOYD'S LIST 24 October
1997 , p 1

107
 APPENDIX 1:

DEFINITIONS ON THE ISM CODE

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 Definitions

1. "International Safety Management (ISM) Code" means the International Management

Code for the Safe Operation of Ships and for Pollution Prevention as adopted by the
Organization by resolution A.741(18), as may be amended by the Organization.

2. "Company" means the Owner of the ship or any other organization or person such as
the Manager, or the Bareboat Charterer, who has assumed the responsibility for operation
of the ship from the Shipowner and who on assuming such responsibility has agreed to
take over all the duties and responsibilities imposed by the ISM Code.

3. "Administration" means the Government of the State whose flag the ship is entitled to
fly.

4. "Safety Management System" (SMS) means a structured and documented system

enabling Company personnel to effectively implement the Company Safety and
Environmental Protection Policy.

5. "Document of Compliance" (DOC) means a document issued to a Company which

complies with the requirements of the ISM Code.

6. "Safety Management Certificate" (SMC) means a document issued to a ship which

signifies that the Company and its shipboard management operate in accordance with the
approved SMS.

7. "Safety management audit" means a systematic and independent examination to

determine whether the SMS activities and related results comply with planned
arrangements and whether these arrangements are implemented effectively and are
suitable to achieve objectives.

8. "Observation" means a statement of fact made during a Safety Management Audit and
substantiated by objective evidence.

9. "Objective evidence" means quantitative or qualitative information, records or

statements of fact pertaining to safety or to the existence and implementation of a SMS
element, which is based on observation, measurement or test and which can be verified.

10. "Non conformity" means an observed situation where objective evidence indicates the
non fulfilment of a specified requirement.

11. "Major non conformity" means an identifiable deviation which poses a serious threat
to personnel or ship safety or a serious risk to the environment and requires immediate
corrective action; in addition the lack of effective and systematic implementation of a
requirement of the ISM Code, is also considered as a major non conformity.

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 APPENDIX 2:

ISM CODE CERTIFICATES

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111
112
113
114
115
116
117
 APPENDIX 3:

ISM CODE REQUIREMENTS

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 ISM CODE REQUIREMENTS

Preamble

1 The purpose of this Code is to provide an international standard for the safe
management and operation of ships and for pollution prevention.

2 The Assembly adopted resolution A.443(XI), by which it invited all Governments to

take the necessary steps to safeguard the shipmaster in the proper discharge of his
responsibilities with regard to maritime safety and the protection of the marine
environment.

3 The Assembly also adopted resolution A.680(17), by which it further recognized the
need for appropriate organization of management to enable it to respond to the need of
those on board ships to achieve and maintain high standards of safety and environmental
protection.

4 Recognizing that no two shipping companies or ship owners are the same, and that
ships operate under a wide range of different conditions, the Code is based on general
principles and objectives.

5 The Code is expressed in broad terms so that it can have a widespread application.
Clearly, different levels of management, whether shore-based or at sea, will require
varying levels of knowledge and awareness of the items outlined.

6 The cornerstone of good safety management is commitment from the top. In matters of
safety and pollution prevention it is the commitment, competence, attitudes and
motivation of individuals at all levels that determines the end result.

1 GENERAL

1.1 Definitions

1.1.1 International Safety Management (ISM) Code means the Inter""national

Management Code for the Safe Operation of Ships and for Pollution Prevention as
adopted by the Assembly, as may be amended by the Organization.

1.1.2 Company means the owner of the ship or any other organization or person such as
the manager, or the bareboat charterer, who has assumed the responsibility for operation
of the ship from the ship owner and who, on assuming such responsibility, has agreed to
take over all duties and responsibility imposed by the Code.

1.1.3 Administration means the Government of the State whose flag the ship is entitled to
fly.

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1.2 Objectives

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.

1.2.2 Safety-management objectives of the Company should, inter alia:

.1 provide for safe practices in ship operation and a safe working environment;

.2 establish safeguards against all identified risks; and

.3 continuously improve safety-management skills of personnel ashore and aboard ships,

including preparing for emergencies related both to safety and environmental protection.

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.

1.3 Application

The requirements of this Code may be applied to all ships.

1.4 Functional requirements for a safety-management system

Every Company should develop, implement and maintain a safety-management system

(SMS) which includes the following functional requirements:

.1 a safety and environmental-protection policy;

.2 instructions and procedures to ensure safe operation of ships and protection of the
environment in compliance with relevant international and flag State legislation;

.3 defined levels of authority and lines of communication between, and amongst, shore
and shipboard personnel;

.4 procedures for reporting accidents and non-conformities with the provisions of this
Code;

.5 procedures to prepare for and respond to emergency situations; and

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.6 procedures for internal audits and management reviews.

2 SAFETY AND ENVIRONMENTAL-PROTECTION POLICY

2.1 The Company should establish a safety and environmental-protection policy which
describes how the objectives given in paragraph 1.2 will be achieved.

2.2 The Company should ensure that the policy is implemented and maintained at all
levels of the organization both, ship-based and shore-based.

3 COMPANY RESPONSIBILITIES AND AUTHORITY

3.1 If the entity who is responsible for the operation of the ship is other than the owner,
the owner must report the full name and details of such entity to the Administration.

3.2 The Company should define and document the responsibility, authority and
interrelation of all personnel who manage, perform and verify work relating to and
affecting safety and pollution prevention.

3.3 The Company is responsible for ensuring that adequate resources and shore-based
support are provided to enable the designated person or persons to carry out their
functions.

4 DESIGNATED PERSON(S)

To ensure the safe operation of each ship and to provide a link between the Company and
those on board, every Company, as appropriate, should designate a person or persons
ashore having direct access to the highest level of management. The responsibility and
authority of the designated person or persons should include monitoring the safety and
pollution-prevention aspects of the operation of each ship and ensuring that adequate
resources and shore-based support are applied, as required.

5 MASTER'S RESPONSIBILITY AND AUTHORITY

5.1 The Company should clearly define and document the master's responsibility with
regard to:

.1 implementing the safety and environmental-protection policy of the Company;

.2 motivating the crew in the observation of that policy;

.3 issuing appropriate orders and instructions in a clear and simple manner;

.4 verifying that specified requirements are observed; and

.5 reviewing the SMS and reporting its deficiencies to the shore-based management.

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5.2 The Company should ensure that the SMS operating on board the ship contains a
clear statement emphasizing the master's authority. The Company should establish in the
SMS that the master has the overriding authority and the responsibility to make decisions
with respect to safety and pollution prevention and to request the Company's assistance as
may be necessary.

6 RESOURCES AND PERSONNEL

6.1 The Company should ensure that the master is:

.1 properly qualified for command;

.2 fully conversant with the Company's SMS; and

.3 given the necessary support so that the master's duties can be safely performed.

6.2 The Company should ensure that each ship is manned with quali""fied, certificated
and medically fit seafarers in accordance with national and international requirements.

6.3 The Company should establish procedures to ensure that new personnel and
personnel transferred to new assignments related to safety and protection of the
environment are given proper familiarization with their duties. Instructions which are
essential to be provided prior to sailing should be identified, documented and given.

6.4 The Company should ensure that all personnel involved in the Company's SMS have
an adequate understanding of relevant rules, regulations, codes and guidelines.

6.5 The Company should establish and maintain procedures for identifying any training
which may be required in support of the SMS and ensure that such training is provided
for all personnel concerned.

6.6 The Company should establish procedures by which the ship's personnel receive
relevant information on the SMS in a working language or languages understood by
them.

6.7 The Company should ensure that the ship's personnel are able to communicate
effectively in the execution of their duties related to the SMS.

7 DEVELOPMENT OF PLANS FOR SHIPBOARD OPERATIONS

The Company should establish procedures for the preparation of plans and instructions
for key shipboard operations concerning the safety of the ship and the prevention of
pollution. The various tasks involved should be defined and assigned to qualified
personnel.

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8 EMERGENCY PREPAREDNESS

8.1 The Company should establish procedures to identify, describe and respond to
potential emergency shipboard situations.

8.2 The Company should establish programmes for drills and exercises to prepare for
emergency actions

. 8.3 The SMS should provide for measures ensuring that the Company's organization can
respond at any time to hazards, accidents and emergency situations involving its ships.

9 REPORTS AND ANALYSIS OF NON-CONFORMITIES, ACCIDENTS AND

HAZARDOUS OCCURRENCES

9.1 The SMS should include procedures ensuring that non-conformities, accidents and
hazardous situations are reported to the Company, investigated and analysed with the
objective of improving safety and pollution prevention.

9.2 The Company should establish procedures for the implementation of corrective
action.

10 MAINTENANCE OF THE SHIP AND EQUIPMENT

10.1 The Company should establish procedures to ensure that the ship is maintained in
conformity with the provisions of the relevant rules and regulations and with any
additional requirements which may be established by the Company.

10.2 In meeting these requirements the Company should ensure that:

.1 inspections are held at appropriate intervals;

.2 any non-conformity is reported, with its possible cause, if known;

.3 appropriate corrective action is taken; and

.4 records of these activities are maintained.

10.3 The Company should establish procedures in its SMS to identify equipment and
technical systems the sudden operational failure of which may result in hazardous
situations. The SMS should provide for specific measures aimed at promoting the
reliability of such equipment or systems. These measures should include the regular
testing of stand-by arrangements and equipment or technical systems that are not in
continuous use.

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10.4 The inspections mentioned in 10.2 as well as the measures referred to in 10.3 should
be integrated into the ship's operational maintenance routine.

11 DOCUMENTATION

11.1 The Company should establish and maintain procedures to control all documents
and data which are relevant to the SMS.

11.2 The Company should ensure that:

.1 valid documents are available at all relevant locations;

.2 changes to documents are reviewed and approved by authorized personnel; and

.3 obsolete documents are promptly removed.

11.3 The documents used to describe and implement the SMS may be referred to as the
Safety Management Manual. Documentation should be kept in a form that the Company
considers most effective. Each ship should carry on board all documentation relevant to
that ship.

12 COMPANY VERIFICATION, REVIEW AND EVALUATION

12.1 The Company should carry out internal safety audits to verify whether safety and
pollution-prevention activities comply with the SMS.

12.2 The Company should periodically evaluate the efficiency of and, when needed,
review the SMS in accordance with procedures established by the Company.

12.3 The audits and possible corrective actions should be carried out in accordance with
documented procedures.

12.4 Personnel carrying out audits should be independent of the areas being audited
unless this is impracticable due to the size and the nature of the Company.

12.5 The results of the audits and reviews should be brought to the attention of all
personnel having responsibility in the area involved.

12.6 The management personnel responsible for the area involved should take timely
corrective action on deficiencies found.

13 CERTIFICATION, VERIFICATION AND CONTROL

13.1 The ship should be operated by a Company which is issued a document of

compliance relevant to that ship.

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13.2 A document of compliance should be issued for every Company complying with the
requirements of the ISM Code by the Administration, by an organization recognized by
the Administration or by the Government of the country, acting on behalf of the
Administration in which the Company has chosen to conduct its business. This document
should be accepted as evidence that the Company is capable of complying with the
requirements of the Code.

13.3 A copy of such a document should be placed on board in order that the master, if so
asked, may produce it for the verification of the Administration or organizations
recognized by it.

13.4 A certificate, called a Safety Management Certificate, should be issued to a ship by

the Administration or organization recognized by the Administration. The Administration
should, when issuing the certificate, verify that the Company and its shipboard
management operate in accordance with the approved SMS.

13.5 The Administration or an organization recognized by the Administration should

periodically verify the proper functioning of the ship's SMS as approved.

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 APPENDIX 4

INTERVIEWERS

126