REEDS 21st CENTURY SHIP MANAGEMENT 9781472900685_txt_app.indd 1 09/01/2014 15:37 Other titles of interest from Reeds Reeds Sea Transport: Operation and Reeds Dictionary of Shipping Economics, 6th edition and Marine Finance Patrick M Alderton Honoré C Paelinck ISBN 978-1-4081-3142-8 ISBN 978-1-4081-2442-0 Reeds Marine Surveying, 2nd edition Reeds Marine Insurance Thomas Ask Barrie Jervis ISBN 978-0-7136-7714-0 ISBN 978-0-7136-7396-8 Reeds Marine Engineering and Technology Series Vol. 1 Mathematics for Marine Engineers Vol. 9 Steam Engineering Knowledge Kevin Corner and William Embleton for Marine Engineers ISBN 978-1-4081-7555-2 Thomas D Morton ISBN 978-0-7136-6736-3 Vol. 2 Applied Mechanics for Marine Engineers Vol.
10 Instrumentation Leslie Jackson and William Embleton and Control Systems ISBN 978-0-7136-7258-9 Gordon Boyd and Leslie Jackson ISBN 978-1-4081-7559-0 Vol. 3 Applied Heat for Engineers William Embleton Vol. 11 Engineering Drawings ISBN 978-0-7136-6733-2 for Marine Engineers H G Beck Vol. 4 Naval Architecture ISBN 978-0-7136-7857-4 for Marine Engineers E A Stokoe Vol.
12 Motor Engineering Knowledge ISBN 978-0-7136-6734-9 for Marine Engineers Paul Russell, Thomas D Morton and Leslie Jackson Vol. 5 Ship Construction ISBN 978-1-4081-7599-6 for Marine Students E A Stokoe Vol. 13 Ship Stability, Powering ISBN 978-0-7136-7178-0 and Resistance Chris J Patterson and Jonathan D Ridley Vol. 6 Basic Electrotechnology ISBN 978-1-4081-7612-2 for Marine Engineers Christopher Lavers, Edmund G R Kraal and Vol.
14 Stealth Warship Technology Stanley Buyers Christopher Lavers ISBN 978-1-4081-7606-1 ISBN 978-1-4081-7525-5 Vol. 7 Advanced Electrotechnology Vol. 15 Electronics, Navigational for Marine Engineers Aids and Radio Theory for Edmund G R Kraal Electrotechnical Officers ISBN 978-0-7136-7684-6 Steve Richards ISBN 978-1-4081-7609-2 Vol. 8 General Engineering Knowledge for Marine Engineers Paul Russell, Leslie Jackson and Thomas D Morton ISBN 978-1-4081-7596-5 9781472900685_txt_app.indd 2 09/01/2014 15:37 REEDS 21st CENTURY SHIP MANAGEMENT CAPTAIN J W DICKIE 9781472900685_txt_app.indd 3 09/01/2014 15:37 Published by Adlard Coles Nautical an imprint of Bloomsbury Publishing Plc 50 Bedford Square, London WC1B 3DP www.com Bloomsbury is a trade mark of Bloomsbury Publishing Plc Copyright © John Waddell Dickie 2014 Published by Adlard Coles Nautical Firstan published imprint of byBloomsbury Adlard ColesPublishing Nautical inPlc 2014 50 Bedford Square, London WC1B 3DP ISBN www.com 978-1-4729-0068-5 ePDF 978-1-4729-0070-8 Bloomsbury is a ePub trade 978-1-4729-0069-2 mark of Bloomsbury Publishing Plc All rights reserved.
Copyright No part of © John this publication Waddell Dickie may 2014 be reproduced in any form or by any means – graphic, electronic or mechanical, including photocopying,Firstrecording, published taping by Adlard or information Coles Nautical storageinand 2014 retrieval systems – without the prior permission in writing of the publishers. ISBN 978-1-4729-0068-5 The right of the author to be identified ePDF 978-1-4729-0070-8 as the author of this work has been asserted by him in accordance withePubthe978-1-4729-0069-2 Copyright, Designs and Patents Act, 1988. A CIP All catalogue rights reserved.record for of No part thisthis book is available publication mayfrom be the British Library. reproduced in any form or by any means – graphic, electronic or mechanical, including This book recording, photocopying, is produced usingorpaper taping that is made information from storage andwood grown retrieval systems in managed, sustainable – without the priorforests.
It is natural, permission renewable in writing and recyclable. of the publishers. The logging and manufacturing processes conform to the environmental The right of the author regulations to be identified as theof author the country of thisofwork origin. has been asserted by him in accordance with the Copyright, Designs and Patents Act, 1988.
Typeset in Myriad Pro by seagulls.net Printed A CIP and catalogue boundrecord in Great forBritain this bookby CPI is available Group (UK) fromLtd, theCroydon British Library. CR0 4YY Note: This book while is produced all reasonable usingcare paper hasthat beenis made taken in from thewood publication grown in managed, of this book, sustainable the publisher forests.takes It is natural, no responsibility renewablefor and the recyclable. use Theof logging the methods and manufacturing or products described processesin conform the book. to the environmental regulations of the country of origin.
10 9 8 7 6 5 4 3 2 1 Typeset in Myriad Pro by seagulls.net Printed and bound in Great Britain by CPI Group (UK) Ltd, Croydon CR0 4YY Note: while all reasonable care has been taken in the publication of this book, the publisher takes no responsibility for the use of the methods or products described in the book.indd 4 16/01/2014 12:34 Preface When starting to write this book, it was important to try to change the layout and content of the subject matter. Key to this was not to make this book the same as others but to engage readers and ask them questions so that they evaluate how their company operates and compare it with the contents of the book. This is not to say that this book gives a perfect answer to all questions, but it aims to encourage ship managers or potential ship managers to question how their company’s safety management system (SMS) operates and see if there is room for improvement. How others perceive the proposed improvement may not always be as expected.
There may be opposition to the proposal, it may be discarded or it may be supported. The way that it is presented will have a major impact of whether it is accepted or rejected. The most important part of the ship management process is the personnel who perform the work of ship managers. They need to be fully aware of all aspects of the ship management model that the company operates and apply them.
A key component of this is the company’s SMS, which is required by the International Safety Management (ISM) Code. This code is made mandatory by the Convention for Safety of Life at Sea (SOLAS), 1974, as amended; the particular chapter to be consulted is Chapter IX (Management for the safe operation of ships). What must never be forgotten is that for every company it is people who are its most important asset and resource, whether it is the personnel on board ship or those that work in the offices. The existence of the best SMS in the world means nothing if the people who have to use it do not comprehend it.
Also, information technology is wonderful, but it still requires people to use it and operate the systems in its support. Without people, an SMS becomes another set of books lying unread or a set of folders and files in a computer hard drive that lie dormant until someone activates them. The shipping industry is very demanding and it operates 24/7 without breaks. People come and go, but the ships keep operating – if there are no ships there is no company.
The people on board ship depend on those ashore to support them, and one of the key personnel and first point of contact can be the ship manager. That is why ship management depends on the interaction of people and not the completion of files and forms. Welcome to the world of ship management and all of its demands. Captain J W Dickie v 9781472900685_txt_app.indd 5 09/01/2014 15:37 Acknowledgements I would like to express my thanks and appreciation to everyone who assisted me in this venture.
Without their help I would not have been able to write this book and make it into what I hope to be an aide to ship managers and would-be ship managers. A particular thank-you must be made to the Liberian Ship Registry which so kindly supplied me with copies of a certain number of certificates and allowed me their reproduction. In these times of fraudulent certificates being procured and used, this provides valuable assistance to readers who can compare the model format of the certificates as presented by the International Maritime Organization (IMO) and individual flag administrations. vi 9781472900685_txt_app.indd 6 09/01/2014 15:37 Contents List of abbreviations xv 1 A brief history of ship management 1 The history of managing ships 1 The three main management models 2 ● Traditional management model 2 ● Outsourcing management model 2 ● Hybrid management system model 3 ● Why outsource the management of ships? 3 Relationship between owner and ISM Code 3 Ship management contracts 4 Shipping trade and global economics 4 Specialisation by ship management companies 6 ● Ship types 7 The complexity of shipping and the ship manager 8 Computing and information management systems 9 2Legislation: the four pillars – SOLAS, MARPOL, STCW and MLC 11 Structure of maritime legislation 12 ● United Nations Convention on the Law of the Sea (UNCLOS) 12 ● International Maritime Organization (IMO) 13 SOLAS Convention 14 ● Structure 14 ● Using the SOLAS 2009 consolidated edition 15 ● Chapter I, regulation 11: maintenance of conditions after survey 17 MARPOL Convention 17 ● Structure 17 ● Contents 18 ● Certificates and documents 19 STCW Convention 20 ● STCW and the demands of shipping 22 ● Additional certification 22 ● STCW and ship security 23 ● STCW and MLC 2006 23 ● STCW in the future 23 vii 9781472900685_txt_app.indd 7 09/01/2014 15:37 MLC Convention 23 ● Contents 25 ● MLC and other conventions 27 ● Potential detainable items in respect of PSC and MLC 27 ● Certification process 28 ● Audit process 29 ● MLC and the future 30 3Ship certificates and documents 31 Certificates and documents 31 Ship certificate file 33 Non-mandatory certificates and documents 33 ● Tanker inspection programmes 33 ● Tanker Management and Self-Assessment 2 34 ● Offshore Vessel Inspection Database (OVID) 35 Other certificates and documents 36 ● Different documents for different organisations 36 ● Navigation publications 36 Retention of certificates and documents 37 Appendix 3.1: Permanent Certificate of Registry 39 Appendix 3.2: Interim Document of Compliance 40 Appendix 3.3: Full-term Document of Compliance 41 Appendix 3.4: Interim Safety Management Certificate 43 Appendix 3.5: Full-term Safety Management Certificate 45 Appendix 3.6: Interim International Ship Security Certificate 48 Appendix 3.7: Full-term International Ship Security Certificate 49 Appendix 3.8: Declaration of Maritime Labour Compliance – Part II 52 4What is required of a ship manager? Relationships and other factors 55 How organisations are structured 56 Tools of management 56 ● Hierarchy 57 The ship manager and the management process 58 Activities and principles of management 58 Strategic and operational management 60 Planning 60 Management control 61 The ship manager and management principles 61 5ISM Code 63 Relationship with SOLAS 74, Chapter IX 64 ● Relevant SOLAS excerpts 64 ● Relevant ISM Code excerpts 65 ● SOLAS IX contents, compared with the ISM Code 66 viii 9781472900685_txt_app.indd 8 09/01/2014 15:37 Effect of the ISM Code on the maritime industry 68 ● History 68 ● Post 1 July, 1998 68 The organisation’s safety management system 69 ● Structure 70 ● Use of quality assurance 71 Constructing a safety management system 72 ● Design 72 ● Development 74 ● Implementation 74 Audit schedule and compliance 75 ● Depth, scope and types of audits 76 ISM Code certificates 78 ISM Code audits for certification 79 Interim certification 82 Special note 83 Maintaining certification 83 Multinational fleets 84 Dealing with non-conformities 85 ● Types of non-conformities 85 Summary 87 Appendix 5.1: Interim Document of Compliance 88 Appendix 5.2: Interim Safety Management Certificate 89 Appendix 5.3: Document of Compliance 90 Appendix 5.4: Safety Management Certificate 92 6ISPS Code 95 Security personnel 97 Safety versus security: same or different? 98 The company security officer and the ship manager 98 The ship security plan 99 ● Methodology of certification 99 ● Maintenance of certification 100 Implementing the ISPS Code into a company 100 ● Step 1: Identify team members 101 ● Step 2: Identify the CSO 102 ● Step 3: Send CSO on course 102 ● Step 4: Identify the SSO 102 ● Step 5: Send the SSO on course 103 ● Step 6: Identify flag administration and ROs 103 ● Step 7: Discuss the options 103 ● Step 8: Choose an option 104 ● Step 9: Decide on RSO consultancy or own system 104 ● Step 10: Organise SSA 104 ix 9781472900685_txt_app.