SSuper Mod 1

2011/2012
DIPLOMA IN
Ship Superintendency A Qualification for SHIPS’ SUPERINTENDENTS
Module 1 The Shipping Industry and the

Role of the Superintendent
Author: - Ian C Biles
Master Mariner, BEng(Hons), MA, CEng, CMarEng, Eur Ing, DipMarSur,
Yachtmaster (Ocean), FNI, Hon MIIMS, MRINA, MIMarEST, MSNAME, MSCMS,
MHCMM, AMS (SAMS), MEWI, MRIN
The Function of International Shipping

International Regulation of Shipping
Flag States
Classification Societies and the Role of Class
Industry Organisations and Information Sources
Shipping Company Organisation
Role of the Superintendent
Course Administrator Course Organiser

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© Marine Publications International Ltd 2011

Diploma in Ship Superintendency Superintendency Module 1
BIOGRAPHY
Ian Biles
Master Mariner, BEng(Hons), MA, CEng, CMarEng, Eur Ing, DipMarSur, Yachtmaster (Ocean), FNI,
Hon MIIMS, MRINA, MIMarEST, MSNAME, MSCMS, MHCMM, AMS (SAMS), MEWI, MRIN
Ian started sailing with his father at the age of 12 and went to sea upon finishing school. He sailed worldwide
for 13 years on a range of commercial ships spending his leave sailing yachts around the United Kingdom
and in the Mediterranean. Throughout this time, Ian studied for various qualifications passing his Royal Yacht
Association Ocean Yachtmaster Certificate in 1982 and Class 1 Master Mariner Certificate in 1984.
In 1988, Ian was recruited by Shell International Marine who sponsored him to return to university and study
for an honours degree in Naval Architecture. He went on to take a masters degree in Business Management.
Ian began his own marine surveying, consultancy and investigation business, Maritime Services (International)Ltd,
in 1992. MSI offers a complete surveying services for all types of floating vessels and structures. His team of highly
experienced surveyors, marine engineers and naval architects carry out surveys for a number of clients including
insurers, P&I clubs, underwriters, prospective purchasers, pre and post charter clients and financial institutions.
MSI also offer investigation expertise in all areas of marine claims relating to ships, personnel and cargoes.
The investigation of claims undertaken ranges widely from cargo damage and marine accidents through to
personal injuries and fatalities.
Maritime Services (International) Limited

1 Stone Lane, Gosport, PO12 1SS
Tel: +44 (0)2392 524490
Fax: +44 (0)2392 524498
E-mail: info@maritime.uk.com
www.maritime.uk.com
© Ian C Biles - October 2011
Page 1
Superintendency Module 1 Diploma in Ship Superintendency
1. The Function of International Shipping 4

Introduction 4
The Function of Shipping 4
The Shipping Industry 5
2. International Regulation of Shipping 7

International Maritime Organisation (IMO) 7
IMO and Standards of World Shipping 9
IMO Conventions 9
International Convention for the Safety of Life at Sea 1974 11
(with protocols in 1978 and 1988) – SOLAS
International Convention on Standards of Training, Certification and Watchkeeping for 15
Seafarers 1978 Amendments 1995 (STCW)
International Convention for the Prevention of Pollution from Ships 1973 17
(with protocols in 1978 and 1997) - MARPOL
Convention on the International Regulations for Preventing Collisions at Sea, 18
1972 - COLREGs
International Convention on Tonnage Measurement of Ships 22
International Labour Organisation (ILO) 22
The Maritime Labour Convention - MLC 23
3. Flag States 24
Introduction 24
The Role of the Flag State in International Standards 24
Flags of Convenience 25
Port State Control 26
The Hierarchy of Standards 27
The Maritime and Coastguard Agency - MCA 28
The Marine Accident Investigation Branch - MAIB 29
4. Classification Societies and the Role of Class 30

Introduction 30
Background History of Ship Classification Societies 31
International Association of Classification Societies – IACS 32
The Role of a Classification Society 33
Ship Classification Services 33
Statutory Services 33
Research and Development 34
5. Industry Organisations and Information Sources 35

Introduction 35
International Transport Workers Federation - ITF 35
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International Chamber of Shipping - ICS 36

International Shipping Federation - ISF 38
The Baltic and International Maritime Council - BIMCO 40
Oil Companies International Marine Forum - OCIMF 41
Ship Inspection Report - SIRE 42
The International Association of Dry Cargo Ship owners - Intercargo 43
International Ship Management Association - InterManager 44
International Association of Independent Tanker Owners - INTERTANKO 45
Tanker Structures Cooperative Forum - TSCF 46
The International Parcel Tankers Association - IPTA 48
Society of International Gas Tanker and Terminal Operators - SIGTTO 49
Chemical Distribution Institute - CDI 50
Cruise Lines International Association - CLIA 51
Lloyd’s of London 53
The Baltic Exchange 55
International Organisation for Standardization - ISO 58
Ship Builders and Ship Repairers Association - SSA 60
Society of Maritime Industries- SMI 61
Institute of Marine Engineering, Science and Technology - IMarEST 62
The Nautical Institute - NI 62
Royal Institution of Naval Architects - RINA 63
Other Organisations 64
Sources of Information 64
6. Shipping Company Organisation 66

Introduction 66
Ship Owning 66
Ship Management 66
Essential Requirements for Good Ship Management 68
Key Personnel in Management 69
Other Key Positions 71
7. Role of the Superintendent 72

Introduction 72
Roles and Responsibilities 72
Ship Visits 73
Ship Information and Particulars 73
The Working Environment 73
8. sTUDENT Assignment 75
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1. The Function of International Shipping
Learning Outcomes
On completion of this section you will:
• have a general understanding of the different aspect of the shipping industry.
Introduction
The purpose of this module is to introduce the student to the general world of the shipping industry and the
myriad of different authorities and organisations that influence the daily operation of ships and cargoes.
Depending on the reference source and measure used, somewhere between 95 per cent (by weight) and
99 per cent (by volume) of all goods have, at some point, been transported by sea as part of their life history.
Such trade represents a truly huge investment in terms of time and money and global shipping has a major
significance to most countries both in terms of wealth generation and political importance.
As can be imagined, with such a vast amount of trade, competition in the market place can be fierce. Shipping
operations vary from the immensely complex and highly computerised, such as east/west container shipping
with huge ships carrying thousands of containers and millions of dollars worth of goods, to the relatively simple
operations of an owner/operator running a small tug in a local harbour. In all cases, the primary objective for
both parties is to provide a service that delivers what the client needs at an economic price.
In order to regulate this trade and market place there tend to be two types of influence; authorities and
industry organisations. The authorities tend to produce prescriptive, compulsory regulations whilst industry
organisations tend to promulgate information and promote good practice. Both have their role to play in the
world of ship operations and the superintendent needs to know how this all fits together, and where to go for
assistance as and when required.
Ships are governed, in terms of their standards, by the regulations of the flag state - the state under whose laws
the vessel is registered or licensed. Some flag states take the responsibility of setting and maintaining standards
seriously, and some do not. In either event, the international community sets general standards (based on the
lowest common denominator of what is achievable) through the International Maritime Organisation (IMO).
The Function of Shipping

The primary function of shipping is the transportation of goods from a place where their value is relatively low
in comparison to one where the value is higher. Value in this context does not necessarily relate to the actual
dollars per tonne but to the utility of the goods - the purpose for which they are intended. The goods may
consist of basic raw materials carried in bulk or completed commodities (iron ore, coal, wheat, crude oil), or
parts or items (fruit, electronics, cars) transported in purpose built containers or even purpose built ships (e.g.
car carriers). The utility can also include the provision of services to ships and all aspects of the infrastructure
that supports shipping and maritime operation worldwide.
The factors that influence the shipper’s choice of transport include items such as reliability of delivery, frequency
of the service, total cost, transit time, capital in transit, quality of service, packaging, import duty, onward
transportation, insurance and availability of suitable transport.
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The Shipping Industry

The shipping industry is made up of four main groups of people: the users of ships, the owners of ships, the
regulators of ships and the service providers to the shipping industry. These groups are defined as the following:
1. The users of ships, i.e. the cargo owners, transport some sort or type of cargo, whether a commodity or
personnel, or those who use the services of a ship to carry out a particular function, e.g. tugs.
2. The ship owners have control of the ship being used. The owner may be the actual beneficial owner or
it could be a third party manager who operates the ship on behalf of the owner.
3. The regulators are the IMO and the governments of the various flag states that register ships in their
countries, or who allow ships to load or discharge in their countries.
4. The service providers include banks, insurance companies, lawyers, brokers, agents, builders, repairers
and all other suppliers who deal with the ship and/or cargo owners.
The Cargo Owner

Without doubt, it is the cargo owner who is the primary link in the chain of international trade. Without the cargo
owner who wishes to move cargo, there would be no requirement for ships and, therefore, no requirement for
any of the other three groups mentioned above.
The cargo owner’s main aim will be to ship cargo in a condition such that the value of the intended sale can be
maximised. As discussed later, the cargo owner may not be interested in the arrival condition of the cargo as
this will be sold long before the ship reaches its final destination.
The Ship Owner

The ship owner is the person or organisation who directs and controls the use of the ship. The actual
mechanisms of ownership are many and diverse, being influenced by such things as tax and liability. However,
at the most basic level, someone will be there on a day to day basis making the decisions.
The owner will make the ship available for use either as a liner service running a regular timetable on a regular
route (container ships, ferry services, passenger ships, etc.) or on a spot basis (tankers, bulkers etc.) where the
ship is chartered (hired out) on either a time or a voyage basis.
The Regulators
The regulators are the IMO who set the framework for standards at an international level. This in turn is
supported by national governments that embrace the international standards and turn them into law for their
own countries. Finally, there are the governments of countries that cooperate together to police the standards
of shipping on a worldwide basis through the mechanism of port state control.
The Service Providers

A service provider is anyone who assists the ship in its function of transporting cargoes.
Banks and Financial Institutions

It is common for an owner to raise funds by means of a loan to purchase the ship. To do this a bank or other
sources of equity are used. Sometimes the vessel will be mortgaged in much the same way as a house is
mortgaged. The organisation providing the finance will look for certain protections for their investment and this
may take the form of an assignment or a percentage of freight for all fixtures for the ship.
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Insurance
Insurance can be broken down into two main areas; hull and machinery (the fabric of the ship) and
protection and indemnity (P&I) (the liabilities of the ship).
Hull and machinery insurance covers the hull, engines and systems against damage and breakdown. Various
markets exist that will provide insurance, normally calculated as a percentage of the value of the ship. The
insurance policy will set a ‘deductible’ or ‘excess’: any claim made under the policy must be above the amount
set before the insurance will pay out.
P&I insurance has traditionally been provided on a mutual or ’club’ basis. This means that a group of ship owners
cooperate in order to pay for any claim brought against them on a proportional basis.
Brokers
Brokers are used extensively in shipping whether for sale or purchase of the ship itself or for cargo fixture. It is the
role of the broker to bring two parties together; this may be buyer/seller, or ship owner/cargo shipper with the
broker’s payment normally being a percentage of the deal. One of the well-known brokerage markets for cargo
is the Baltic Exchange in London. More information on the Baltic Exchange can be found later in this module.
Agents
Agents are used both by ship owners and by receivers in the various ports that the ship visits. A local agent is
used to facilitate all the necessary paperwork and physical requirements of both ship and cargo. For the ship,
this will involve inward and outward clearances, stores and crew requirements. For the cargo, this will involve
receipt of goods, storage and onward transport.
Builders
Builders supply the ship owner with new ships as the older ones either wear out or no longer fulfil current
regulation. Generally, a ship has a normal working life of about 20 to 25 years. After this time the effect of
continually working at sea together with the constant wear and tear on the engines and other machinery
means that it is no longer cost effective to repair the ship.
Repairers
Repair yards provide dry docking facilities so that ships can periodically be removed from the water and have their
external hull checked. The yards also carry out maintenance that is beyond the ability of the ship’s normal crew.
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2. International Regulation of Shipping
Learning Outcomes
• understand the role and function of the International Maritime Organization (IMO);
• have an appreciation of the main IMO Conventions and what areas they cover;
• understand the role and function of the International Labour Organisation (ILO);
• have an appreciation of the relevance of the Maritime Labour Convention (MLC).
International Maritime Organization (IMO)
www.imo.org
The convention that established the IMO was adopted on 6 March, 1948 at the United Nations Maritime
Conference in Geneva. The convention known as the Convention on the Inter-Governmental Maritime
Consultative Organisation (IMCO) was inaugurated on 6 January, 1959.
The purpose of the IMO was defined in Article 1(a) of the convention. It states: to provide machinery for
co-operation among governments in the field of governmental regulation and practices relating to technical
matters of all kinds affecting shipping engaged in trade; to encourage and facilitate the general adoption
of the highest practicable standards in matters concerning the maritime safety, efficiency of navigation and
prevention and control of marine pollution from ships. The IMO also has the function and power to deal with
the administrative and legal matters related to these purposes.
Structure
The IMO consists of an Assembly, a Council and four main committees. There is also a facilitation committee and
a number of technical subcommittees.
The Assembly is the highest governing body of the organisation. It consists of all member states of the
organisation and it meets once every two years. It is the Assembly that sets the work programme, approves the
budget, executes the function of the IMO and elects members to be represented on the Council.
The Council comprises 40 member states elected by the Assembly for a two-year term. The member states
are split into three categories: 10 states with the largest interest in providing international shipping services;
10 states with the largest interest in international seaborne trade and 20 states which have special interests in
maritime transport or navigation, and whose election to the Council will ensure the representation of all major
geographic areas of the world. The Council carries out the executive function of the Assembly and, in effect,
holds all the powers of the Assembly with the exception of making recommendations to governments on
maritime safety and pollution prevention.
Specifically, the functions of the Council are:
• to co-ordinate the activities of the organisation;
• to consider the draft work programme and budget estimates of the organisation for submission
to the Assembly;
• to receive reports and proposals from the various committees for consideration by the Assembly;
• to appoint the secretary general, subject to the approval of the Assembly;
• to conduct necessary liaison with other relevant organisations.
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The four main committees are:

• Maritime Safety Committee (MSC)
• Marine Environmental Protection Committee (MEPC)
• Legal Committee
• Technical Co-operation Committee (TC)
Maritime Safety Committee (MSC)

The MSC is the highest technical body of the organisation and it consists of representatives from all member
states. The functions of the committee are: to consider any matter within the scope of the organisation
concerned with aids to navigation; construction and equipment of vessels; manning from a safety standpoint;
rules for the prevention of collisions; handling dangerous cargoes; maritime safety procedures and requirements;
hydrographic information; logbooks and navigational records; marine casualty investigation; salvage and rescue
and any other matters directly affecting maritime safety.
Marine Environmental Protection Committee (MEPC)

The MEPC is responsible for all matters with respect to prevention and control of pollution from ships. In
particular it is concerned with the adoption and amendment of conventions and other regulations and
measures to ensure their enforcement.
SUB-Committees
The MSC and MEPC are assisted in their work by nine sub-committees which are also open to all Member States.
They deal with the following subjects
• Bulk Liquids and Gases (BLG)
• Carriage of Dangerous Goods; Solid Cargoes and Containers (DSC)
• Fire Protection (FP)
• Radio-communications and Search and Rescue (COMSAR)
• Safety of Navigation (NAV)
• Ship Design and Equipment (DE)
• Stability and Load Lines and Fishing Vessels Safety (SLF)
• Flag State Implementation (FSI)
Legal Committee
The Legal Committee is responsible for dealing with any legal matter within the scope of the organisation. The
committee consists of all member states and was originally established in 1967 to deal with legal issues arising
from the Torrey Canyon disaster in March that year. (The Torrey Canyon was a supertanker capable of carrying a
cargo of 120,000 tonnes of crude oil, which was shipwrecked off the western coast of Cornwall, England in March
1967 causing an environmental disaster. At that time, the tanker was the largest vessel ever to be wrecked.)
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Technical Co-operation Committee (TC)

This committee is concerned with the implementation of technical cooperation projects for which the
organisation acts as the coordinating agency. It is the role of this committee to help governments implement
the requirements of the various IMO conventions and other instruments. The highest priority is assigned to
maritime training at the basic, specialised and post-graduate levels.
IMO and Standards of World Shipping

When a change to standards or a new standard is considered necessary, the work of determining what the
standard should be is done by the relevant subcommittee which produces a draft document detailing the
proposed standard. The proposed standard is circulated to member states for consideration and a conference
is then held at which the standard is debated. Once the standard has been agreed it goes forward to the
governments of member states for ratification.
Historically, ratification has taken a very long time and, therefore, once established, standards have been slow
to change. To overcome this, for some standards agreement of amendments by tacit acceptance has been
introduced. This means that if a member government does not specifically object to a particular amendment
by a given date it is considered that the member state accepts the change. To some extent this has proved
successful for the IMO as changes happen more swiftly than before although to the external observer progress
still seems painfully slow.
IMO Conventions
The work of the IMO is vast and complex. The result of this work is a large range of conventions and other
documents that define the global framework for safety in shipping. Full details of the current work of the IMO,
together with details of the status of any given convention (in terms of ratification and implementation), can
be found on the IMO web site.
A list of some of the main conventions (which is by no means exhaustive as there are well over 100 different
conventions) together with the common abbreviations by which they are known is given below:
1. International Convention for the Safety of Life at Sea 1974 (with protocols in 1978 and 1988). SOLAS
1974;
2. Convention on the International Regulations for Preventing Collisions at Sea 1972. COLREGS 1972;
3. International Convention for the Prevention of Pollution from Ships 1973 (with protocols in 1978 and
1997). MARPOL 1973;
4. International Load Line Convention 1966 (with protocol in 1988). LL1966;
5. International Convention on Tonnage Measurement of Ships 1969. TONNAGE 1969:
6. International Convention Relating to Intervention on the High Seas in Cases of Oil Pollution Casualties
1969 (with protocol in 1973). INTERVENTION 1969;
7. International Convention on Civil Liability for Oil Pollution Damage 1969 (with protocols 1976 and
1992). CLC 1969;
8. International Convention on the Establishment of an International Fund for Compensation for Oil
Pollution Damage 1971 (with protocols in 1976 and 1992), FUND 1971;
9. International Convention for Safe Containers 1972. CSC 1972;
10. Athens Convention relating to the Carriage of Passengers and their Luggage by Sea 1974 (with
protocols in 1976 and 1990). PAL 1974;
11. Convention on International Mobile Satellite Organisation plus Operating Agreement. INMARSAT;
12. Convention on Limitation of Liability for Marine Claim 1976 (with protocol in 1996), LLMC 1976;
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13. International Convention on Standards of Training, Certification and Watchkeeping for Seafarers 1978
Amendments 1995, STCW 95;
14. International Convention on Standards of Training, Certification and Watchkeeping for Fishing Vessel
Personnel 1995, STCW-F 1995;
15. International Convention on Search and Rescue 1979, SAR 1979;
16. Convention for the Suppression of Unlawful Acts against the Safety of Maritime Navigation 1988,
SUA 1988;
17. Protocol relating to Fixed Platforms 1988;
18. International COSPAS-SARSAT Programme Agreement 1988, COS-SAR 1988;
19. International Convention on Salvage 1989, SALVAGE 1989;
20. International Convention on Oil Preparedness, Response and Co-operation 1990, OPRS 1990;
21. Torremolinos International Convention for the Safety of Fishing Vessels 1977 (Protocol 1999), SFV 1977;
22. International Convention on Liability and Compensation for Damage in connection with the Carriage
of Hazardous and Noxious Substances by Sea 1996, HNS 1996;
23. Convention on the Prevention of Marine Pollution by Dumping of Wastes and other Matter (London
Dumping Convention) 1972 (Protocol 1996), LC 1972.
In addition to these specific conventions, the IMO has also published seven codes which are adopted into
international law through either SOLAS (as described below) or MARPOL.
1. International Gas Carrier Code 1983;
2. International Bulk Chemicals Code 1983;
3. International Code for the Safe Carriage of Grain in Bulk 1991;
4. International Safety Management Code 1993;
5. International Code of Safety for High-Speed Craft (HSC Code) 1994;
6. International Code for Safe Unloading of Bulk Carriers 1997;
7. International Ship and Port Facility Security Code 2004.
In addition to these codes, the IMO also publish over 100 other codes and a full list can be found on the IMO
website under ‘Publications’.
The IMO does not have any means of enforcing compliance directly despite the regulations and the work it
conducts. It must rely on each flag state to implement the required conventions.
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International Convention for the Safety of Life at Sea 1974

(with protocols in 1978 and 1988) – SOLAS
The SOLAS convention is one that predates the formations of the IMO, being the first marine convention
adopted by the international community in 1914. The conference and subsequent conventions were born out
of the sinking of the Titanic in 1912 where more than 1,500 people lost their lives. Since the first convention there
have been four revisions: 1929 coming into force in 1933, 1948 coming into force in 1952, 1960 coming into
force in 1965 and the current convention of 1974 which came into force in 1980. With the changes introduced
in 1974, tacit acceptance was introduced to SOLAS and, therefore, it is unlikely that a new convention will be
required in the foreseeable future.
SOLAS 1974 (as amended) is the primary piece of International Regulation that details standards for the Safety
of Life at Sea. The technical details giving specific requirements are contained in the annex to the International
Convention for the Safety of Life at Sea 1974 and the 1988 Protocol relating thereto. As a document, SOLAS is
huge - over 1,000 pages. It is very complex with numerous cross references throughout. The regulations are
divided into the following sections:
Chapter I General provisions
Chapter II-I Construction – structure, subdivision and stability, machinery and electrical installations
Chapter II-2 Construction – fire protection, fire detection and fire extinction
Chapter III Life saving appliances and arrangements
Chapter IV Radio communications
Chapter V Safety of navigation
Chapter VI Carriage of cargoes
Chapter VII Carriage of dangerous cargoes
Chapter VIII Nuclear ships
Chapter IX Management for the safe operation of ships
Chapter X Safety measures for high speed craft
Chapter XI Special measures to enhance maritime safety
Chapter XII Additional safety measures for bulk carriers
As with many regulations, there are specific parts dealing with application and definitions. With reference to
SOLAS Chapter 1, Part A, Regulation 1 – Application, it states: Unless expressly provided otherwise, the present
regulations apply only to ships engaged on international voyages. This clearly means that domestic traffic that
stays solely within the territorial waters of the flag state does NOT have to comply with SOLAS!
In Regulation 3 – Exemptions it states: The present regulations, unless expressly provided otherwise, do not
apply to:
(i) Ships of war and troopships
(ii) Cargo ships of less than 500 gross tonnage
(iii) Ships not propelled by mechanical means
(iv) Wooden ships of primitive build
(v) Pleasure yachts not engaged in trade
(vi) Fishing vessels
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Chapter V – Safety of Navigation

Chapter V of SOLAS is somewhat different to the other chapters and, therefore, deserves a particular mention.
Due to the Application and Exemptions provisions at the beginning of SOLAS, as a generalisation, it is only
certain classes of commercial shipping engaged on international voyages that have to comply with the
requirements. However, Chapter V specifically applies to all vessels and their crews, including yachts and private
craft, on all voyages, including local ones. This chapter requires governments to make sure that all vessels are
sufficiently and efficiently manned from a safety point of view. It places requirements on all vessels regarding
voyage and passage planning, expecting a careful assessment of any proposed voyages by all who put to sea.
Every mariner must take account of all potential dangers to navigation, weather forecasts, tidal predictions, the
competence of the crew, and all other relevant factors. It also adds an obligation for all vessels’ masters to offer
assistance to those in distress and controls the use of lifesaving signals with specific requirements regarding
danger and distress messages.
SOLAS is the principal reference for most safety related matters on ships. It is imperative that a superintendent
has an understanding of the document and would be well advised to make sure one is available.
Chapter IX: Management for the Safe Operation of Ships

The International Safety Management (ISM) Code was adopted by the IMO by resolution A.741(18). 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 the marine environment and property. The Code requires
companies to establish safety objectives as described in section 1.2 of the ISM Code. In addition, companies
must develop, implement and maintain a Safety Management System (SMS) which includes functional
requirements as listed in section 1.4 of the ISM Code.
Compliance with the ISM Code became mandatory with the adoption of SOLAS, Chapter IX - Management for
the Safe Operation of Ships. The IMO provided amplifying guidance on implementation of the requirements
of SOLAS, Chapter IX, and the ISM Code in resolution A.788(19) - Guidelines on the Implementation of the
International Safety Management (ISM) Code by Administrations.
Applicability of the ISM Code

SOLAS, Chapter IX and the ISM Code apply to ships, regardless of the date of construction, as follows:
• passenger ships, including passenger high-speed craft, not later than 1 July 1998;
• oil tankers, chemical tankers, gas carriers, bulk carriers and cargo high-speed craft of 500 gross tonnes or
more, not later than 1 July 1998;
• other cargo ships and mobile offshore drilling units (MODUs) of 500 gross tonnes or more, not later than
1 July 2002.
Background to the International ISM Code

During the late 1980s and the early 1990s there were a significant number of maritime accidents and a higher
than average number of high-profile incidents as shown in the following list:
1987 Herald of Free Enterprise capsized off Zeebrugge with extensive loss of life
1987 Doña Paz ferry collided with a tanker in the Philippines with an estimate of 4,386 people lost
1989 Exxon Valdez ran aground off the coast of Alaska spilling 37,000 tonnes of crude oil
1990 Scandinavian Star Passenger Ferry caught fire with extensive loss of life
1991 Agip Abruzzo with 80,000 tonnes of light crude oil on board collided with the ro-ro ferry Moby Prince
off Livorno. Fire and pollution followed with the loss of 143 lives
1991 Haven tanker explosion off Genoa
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1991 Salem Express - an Egyptian ferry - struck a reef and sank with the loss of 470 people
1992 Aegean Sea broke in two off La Coruña Span causing extensive oil pollution
1993 Braer tanker driven aground on the Shetland Islands causing widespread pollution
1994 Estonia ro-ro passenger ferry sank after the bow door fell off during heavy weather with extensive loss
of life
1996 Sea Empress ran aground off Milford Haven causing extensive pollution
As a result of these incidents, and others that had occurred before, various studies were carried out, all of
which firmly pointed towards human error as the overriding cause of most major incidents. Pressure mounted
within the IMO and during the 18th session of the IMO Assembly on 4 November 1993 resolution A.741(18)
was adopted: the International Management Code for the Safe Operation of Ships and for Pollution Prevention
(International Safety Management (ISM) Code). The convention was incorporated into SOLAS in 1994 and
became effective for all ships above 500 gross tonnes from 1 July 2002.
The Code defined its objective as: to ensure safety at sea, prevention of human injury or loss of life, and
avoidance of damage to the environment, in particular the marine environment and to property.
To some ship operators the Code introduced little that was new, however, for many, the complete approach of
the Code, that of having a system to manage safety, was a new and frightening idea.
In its simplest terms the safety management system can be summed up by the phrases:
Say what you do.
Write down what you say.
Check that you do what you write down.
Prove it.
Improve it.
What this means is that ship operators are required to evaluate and establish a safe method of carrying out the
operations that take place on board ship. Having done this, they are to document the procedures to be adopted
and then put in place a mechanism to record and evaluate what has been done. Implicit in this is the need to
evaluate any problems or deficiencies that arise (known as non-conformities) and to amend the system to take
these into account once they have been evaluated.
Functional Requirement for a SMS

The Code defines the functional requirements that are to be brought into the system as:
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. define levels of authority, and lines of communication between and amongst shore and shipboard
personnel;
4. establish procedures for the reporting of accidents and non-conformities within the provisions
of the code;
5. develop procedures to prepare for, and respond to, emergency situations;
6. develop procedures for internal audits and management reviews.
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Adoption of the ISM Code

In 1989, IMO adopted guidelines on management for the safe operation of ships and for pollution prevention to:
provide those responsible for the operation of ships with a framework for the proper development, implementation
and assessment of safety and pollution prevention management in accordance with good practice.
These guidelines were revised in November 1991 and 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.
It was decided that the best way of achieving this would be through SOLAS (1974). 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. The Code itself is not actually included in the Convention, but is
made mandatory by means of a reference in Chapter IX.
The main purpose of the new chapter is to make the ISM Code mandatory. By adding it to SOLAS it is intended
to provide an international standard for the safe management of ships and for pollution prevention.
The ISM Code establishes safety management objectives which 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.
The Code requires an SMS to be established by the company, 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.
The SMS should include a number of functional requirements:
• a safety and environmental protection policy; instructions and procedures to ensure safety and
environmental protection;
• defined levels of authority and lines of communication between and amongst shore and shipboard
personnel;
• procedures for reporting accidents;
• procedures for responding to emergencies;
• procedures for internal audits and management review.
The company is then required to establish and implement a policy for achieving these objectives. This includes
providing the necessary resources and shore-based support. Every company is expected to: designate a person
or persons ashore having direct access to the highest level of management.
The Code then goes on to outline the responsibility and authority of the master of the ship. It states that the
SMS should make it clear that: the master has the overriding authority and the responsibility to make decisions.
The Code then deals with other seagoing personnel and emphasises the importance of training.
Companies are required to prepare plans and instructions for key shipboard operations and to make preparations
for dealing with any emergencies which might arise. The importance of maintenance is stressed - companies
are required to ensure that regular inspections are held and corrective measures taken where necessary.
The procedures required by the Code should be documented and compiled in a Safety Management Manual; a copy
of which should be kept on board. Regular checks and audits should be held by the company to ensure that the SMS
is being complied with, and the system itself should be reviewed periodically to evaluate its efficiency.
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After outlining the responsibilities of the company, the Code then stresses that the responsibility for ensuring
that it is complied with rests with the government. Companies that comply with the Code should be issued
with a document of compliance; a copy of which should be kept on board. Administrations should also issue a
Safety Management Certificate to indicate that the company operates in accordance with the SMS and periodic
checks should be carried out to verify that the ship’s SMS is functioning properly.
The Convention entered into force under the ‘tacit acceptance’ procedure on 1 July 1998. Tacit acceptance is
now incorporated into most of IMO’s technical Conventions. To keep pace with the rapidly-evolving technology
in the shipping world, it facilitates the quick and simple modification of Conventions. Without tacit acceptance,
it would have proved impossible to keep Conventions up to date and IMO’s role as the international forum for
technical issues involving shipping would have been placed in jeopardy. Tacit acceptance applied to passenger
ships, oil and chemical tankers, bulk carriers, gas carriers and cargo high speed craft of 500 gross tonnage and
above, not later than that date, and to other cargo ships and mobile offshore drilling units of 500 gross tonnage
and above, not later than 1 July 2002.
International Convention on Standards of Training, Certification

and Watchkeeping for Seafarers 1978 Amendments 1995 - STCW
Adopted: 1978. Entered into force: 1995.
This code sets out the minimum qualifications standards for all personnel working at sea on ships. The
Convention was the first time that a unified standard was established for the training and certification of
watchkeepers. The Code also introduced a requirement that ships visiting flag states that had adopted the
Convention had to comply with the requirements even though the flag state of the ship might not have
adopted its requirements. In effect, this was the first step in allowing the policing of an international standard
through port state control (discussed later).
The STCW Convention is divided into four parts:

1. Final Act of the 1995 Conference;
2. International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, 1978;
3. Attachment 1 to the Final Act of the Conference - Resolution 1 - Adoption of the amendments to the annex
to the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers,
1978;
4. Attachment 3 to the Final Act of the Conference – Resolutions.
The STCW Code runs to 255 pages and is Attachment 2 to the Final Act of the Conference.
STCW Code Part A details the standards of competence area which is separated into seven functional areas:
1. navigation;
2. cargo handling and stowage;
3. controlling the operation of the ship and care for persons on board;
4. marine engineering;
5. electrical, electronic and control engineering;
6. maintenance and repair;
7. radio communications.
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Standards of competence are defined as the level of proficiency to be achieved for the proper performance of
functions on board a ship in accordance with the internationally agreed criteria as set forth in the STCW Code.
It incorporates prescribed standards or levels of knowledge, understanding and demonstrated skill.
Responsibilities are divided into three levels:
1. management;
2. operational;
3. support.
Management level is defined as the level of responsibility associated with serving as master, chief mate, chief
engineer officer or 2nd engineer officer on board a seagoing ship and ensuring that all functions within the
designated area of responsibility are properly performed.
Operational level is defined as the level of responsibility associated with: serving as an officer in charge of a
navigational or engineering watch; as designated duty engineer for periodically unmanned machinery spaces;
or as radio operator on board a seagoing ship, maintaining direct control over performance of all functions
within the designated area of responsibility in accordance with proper procedures and under the direction of
an individual serving in the management level for that area of responsibility.
Support level is defined as the level of responsibility associated with performing assigned tasks, duties or
responsibilities on board a seagoing ship under the direction of an individual serving in the operational or
management level.
The Manila Amendments to the STCW Convention and Code

An IMO Conference was held in Manila in the Philippines in June 2011. The Conference was held to review some
major revisions to the 1978 Convention with a view to updating it to reflect technological changes.
The amendments, known as The Manila Amendments, to the STCW Convention and Code are set to enter into
force on 1 January 2012 under the tacit acceptance procedure. They are aimed at bringing the Convention
and Code up to date with technological developments and to enable the Code to address issues that are
anticipated to emerge in the foreseeable future.
Amongst the amendments adopted were a number of important changes to each chapter of the Convention
and Code, including:
• improved measures to prevent fraudulent practices associated with certificates of competency and
strengthen the evaluation process (monitoring of parties’ compliance with the Convention);
• revised requirements on hours of work and rest, and new requirements for the prevention of drug and
alcohol abuse, as well as updated standards relating to medical fitness standards for seafarers;
• new certification requirements for able seafarers;
• new requirements relating to training in modern technology, such as electronic charts and information
systems (ECDIS);
• new requirements for marine environment awareness training and training in leadership and teamwork;
• new training and certification requirements for electro-technical officers;
• updating of competence requirements for personnel serving on board all types of tankers, including new
requirements for personnel serving on liquefied gas tankers;
• new requirements for security training, as well as provisions to ensure that seafarers are properly trained to
cope if their ship comes under attack by pirates;
• introduction of modern training methodology including distance learning and web-based learning;
• new training guidance for personnel serving on board ships operating in polar waters;
• new training guidance for personnel operating Dynamic Positioning Systems.
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International Convention for the Prevention of Pollution from

Ships 1973 (with protocols in 1978 and 1997) - MARPOL
The MARPOL Convention is the main international convention covering prevention of pollution of the marine
environment by ships from operational or accidental causes. It is a combination of two treaties adopted in 1973
and 1978 respectively and also includes the Protocol of 1997 (Annex VI). Over the years it has been updated by
amendments.
MARPOL was adopted on 2 November 1973 at IMO and covered pollution by oil, chemicals, harmful substances
in packaged form, sewage and garbage. The Protocol of 1978 relating to the 1973 International Convention for
the Prevention of Pollution from Ships (1978 MARPOL Protocol) was adopted at a Conference on Tanker Safety
and Pollution Prevention in February 1978, held in response to a spate of tanker accidents in 1976-1977. As
the 1973 MARPOL Convention had not yet entered into force, the 1978 MARPOL Protocol absorbed the parent
Convention. The combined instrument is referred to as the International Convention for the Prevention of
Marine Pollution from Ships, 1973, as modified by the Protocol of 1978 relating thereto (MARPOL 73/78), and it
entered into force on 2 October 1983 (Annexes I and II). In 1997, a Protocol was adopted to add a new Annex VI.
The Convention includes regulations aimed at preventing and minimising pollution from ships - both
accidental pollution and that from routine operations - and includes six technical Annexes. Special Areas with
strict controls on operational discharges (i.e. virtually none) are included in most Annexes.
Annex I- Regulations for the Prevention of Pollution by Oil

Entered into force: 2 October 1983.
This covers prevention of pollution by oil from operational measures as well as from accidental discharges. The
1992 amendments to Annex I made it mandatory for new oil tankers to have double hulls and brought in a
phase-in schedule for existing tankers to fit double hulls, which was subsequently revised in 2001 and 2003.
Annex II - Regulations for the Control of Pollution by Noxious Liquid

Substances in Bulk
Entered into force: 2 October, 1983.
Annex II details the discharge criteria and measures for the control of pollution by noxious liquid substances
carried in bulk.
Approximately 250 substances were evaluated and included in the list appended to the Convention. The
discharge of their residues is allowed only to reception facilities until certain concentrations and conditions
(which vary with the category of substances) are complied with.
In any case, no discharge of residues containing noxious substances is permitted within 12 miles of the nearest
land. More stringent restrictions applied to the Special Areas of the Baltic and Black Sea.
Annex III - Prevention of Pollution by Harmful Substances Carried by Sea

in Packaged Form
Entered into force: 1 July, 1992.
Annex III contains general requirements for the issuing of detailed standards on packing, marking, labelling,
documentation, stowage, quantity limitations, exceptions and notifications for preventing pollution by harmful
substances. The International Maritime Dangerous Goods (IMDG) Code has included marine pollutants since 1991.
Annex IV - Prevention of Pollution by Sewage from Ships

Entered into force: 27 September, 2003.
Annex IV contains requirements to control pollution of the sea by sewage.
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Annex V - Prevention of Pollution by Garbage from Ships

Entered into force: 31 December, 1988.
This deals with different types of garbage and specifies the distances from land and the manner in which they
may be disposed of. The requirements are stricter in a number of special areas but perhaps the most important
feature of the Annex is the complete ban imposed on the dumping into the sea of all forms of plastic.
Annex VI Prevention of Air Pollution from Ships

Entered into force: 19 May, 2005.
The regulations in this Annex set limits on sulphur oxide and nitrogen oxide emissions from ship exhausts as
well as particulate matter and prohibit deliberate emissions of ozone depleting substances. There are a number
of emission control areas where more stringent standards are to be met.
Convention on the International Regulations for Preventing

Collisions at Sea, 1972 - COLREGs

Adoption: 20 October, 1972. Entered into force: 15 July, 1977.
The 1972 Convention was designed to update and replace the Collision Regulations of 1960 which were
adopted at the same time as the 1960 SOLAS Convention.
One of the most important innovations in the 1972 COLREGs was the recognition given to traffic separation
schemes - Rule 10 gives guidance in determining safe speed, the risk of collision and the conduct of vessels
operating in or near traffic separation schemes.
The first such traffic separation scheme was established in the Dover Strait in 1967. It was operated on a
voluntary basis at first, but in 1971 the IMO Assembly adopted a resolution stating that observance of all traffic
separation schemes be made mandatory - and the COLREGs make this obligation clear.
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Technical provisions
The COLREGs include 38 rules divided into five sections: Part A - General; Part B - Steering and Sailing; Part C - Lights
and Shapes; Part D - Sound and Light Signals; and Part E - Exemptions. There are also four Annexes containing technical
requirements concerning lights and shapes and their positioning; sound signalling appliances; additional signals for
fishing vessels when operating in close proximity, and international distress signals.
Part A - General (Rules 1-3)

Rule 1 states that the rules apply to all vessels upon the high seas and all waters connected to the high seas
and navigable by seagoing vessels.
Rule 2 covers the responsibility of the master, owner and crew to comply with the rules.
Rule 3 includes definitions.
Part B- Steering and Sailing (Rules 4-19)

Section 1 - Conduct of vessels in any condition of visibility (Rules 4-10)
Rule 4 says the section applies in any condition of visibility.
Rule 5 requires that: every vessel shall, at all times, maintain a proper look-out by sight and hearing as well as by
all available means appropriate in the prevailing circumstances and conditions so as to make a full appraisal of
the situation and of the risk of collision.
Rule 6 deals with safe speed. It requires that: every vessel shall, at all times, proceed at a safe speed. The Rule
describes the factors which should be taken into account in determining safe speed. Several of these refer
specifically to vessels equipped with radar. The importance of using ‘all available means’ is clearly emphasised.
Rule 7 covers risk of collision, warning that: assumptions shall not be made on the basis of scanty information,
especially scanty radar information.
Rule 8 covers action to be taken to avoid collision.
In Rule 9 a vessel proceeding along the course of a narrow channel or fairway is obliged to: keep as near to the
outer limit of the channel or fairway which lies on her starboard side as is safe and practicable. The same rule
obliges a vessel of less than 20 metres in length or a sailing vessel not to impede the passage of a vessel which:
can safely navigate only within a narrow channel or fairway.
This Rule also forbids ships to cross a narrow channel or fairway if: such crossing impedes the passage of a vessel
which can safely navigate only within such channel or fairway. The term not to impede was classified by an
amendment to Rule 8 in 1987. A new paragraph (f ) was added, stressing that a vessel, which was required not to
impede the passage of another vessel, should take early action to allow sufficient sea room for the safe passage
of the other vessel. Such vessel was obliged to fulfil this obligation when taking avoiding action in accordance
with the steering and sailing rules when risk of collision exists.
Rule 10 of the Collision Regulations deals with the behaviour of vessels in or near traffic separation schemes
adopted by the organisation. By regulation 8 of Chapter V (Safety of Navigation) of SOLAS, IMO is recognised as
being the only organisation competent to deal with international measures concerning the routeing of ships.
The effectiveness of traffic separation schemes can be judged from a study made by the International
Association of Institutes of Navigation (IAIN) in 1981. This showed that between 1956 and 1960 there were 60
collisions in the Strait of Dover; 20 years later, following the introduction of traffic separation schemes, this total
was cut to 16.
In other areas where such schemes did not exist, the number of collisions rose sharply. New traffic separation
schemes are introduced regularly and existing ones are amended when necessary to respond to changed traffic
conditions. To enable this to be done as quickly as possible the MSC has been authorised to adopt and amend
traffic separation schemes on behalf of the organisation.
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Rule 10 states that ships crossing traffic lanes are required to do so as nearly as practicable at right angles to the
general direction of traffic flow. This reduces confusion to other ships as to the crossing vessel’s intentions and
course, whilst enabling that vessel to cross the lane as quickly as possible.
Fishing vessels shall not impede the passage of any vessel following a traffic lane but are not banned from
fishing. This is in line with Rule 9 which states that: a vessel engaged in fishing shall not impede the passage of
any other vessel navigating within a narrow channel or fairway. In 1981, the regulations were amended. Two
new paragraphs were added to Rule 10 to exempt vessels which are restricted in their ability to manoeuvre
when: engaged in an operation for the safety of navigation in a traffic separation scheme or when engaged in
cable laying.
In 1987, the regulations were amended again. It was stressed that Rule 10 applied to traffic separation schemes
adopted by the IMO and does not relieve any vessel of her obligation under any other rule. It was also to clarify
that if a vessel is obliged to cross traffic lanes it should do so as nearly as practicable at right angles to the
general direction of the traffic flow. In 1989, Rule 10 was further amended to clarify the vessels which may use
the ‘inshore traffic zone’.
Section II - Conduct of vessels in sight of one another (Rules 11-18)
Rule 11 says the section applies to vessels in sight of one another.
Rule 12 states action to be taken when two sailing vessels are approaching one another.
Rule 13 covers overtaking - the overtaking vessel should keep out of the way of the vessel being overtaken.
Rule 14 deals with head-on situations. Crossing situations are covered by Rule 15 and action to be taken by the
give-way vessel is laid down in Rule 16.
Rule 17 deals with the action of the stand-on vessel, including the provision that the stand-on vessel may: take
action to avoid collision by her manoeuvre alone as soon as it becomes apparent to her that the vessel required
to keep out of the way is not taking appropriate action.
Rule 18 deals with responsibilities between vessels and includes requirements for vessels which must keep out
of the way of others.
Section III - Conduct of vessels in restricted visibility (Rule 19)
Rule 19 states every vessel should proceed at a safe speed adapted to prevailing circumstances and restricted
visibility. A vessel detecting another vessel by radar should determine if there is risk of collision and, if so, take
avoiding action. A vessel hearing a fog signal of another vessel should reduce speed to a minimum.
Part C Lights and Shapes (Rules 20-31)

Rule 20 states rules concerning lights apply from sunset to sunrise.
Rule 21 gives definitions.
Rule 22 covers visibility of lights - lights should be visible at minimum ranges (in nautical miles) determined
according to the type of vessel.
Rule 23 covers lights to be carried by power-driven vessels underway.
Rule 24 covers lights for vessels towing and pushing.
Rule 25 covers light requirements for sailing vessels underway and vessels under oars.
Rule 26 covers light requirements for fishing vessels.
Rule 27 covers light requirements for vessels not under command or restricted in their ability to manoeuvre.
Rule 28 covers light requirements for vessels constrained by their draught.
Rule 29 covers light requirements for pilot vessels.
Rule 30 covers light requirements for vessels anchored and aground.
Rule 31 covers light requirements for seaplanes.
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Part D - Sound and Light Signals (Rules 32-37)

Rule 32 gives definitions of whistle, short blast and prolonged blast.
Rule 33 says vessels 12 metres or more in length should carry a whistle and a bell, and vessels 100 metres or
more in length should carry, in addition, a gong.
Rule 34 covers manoeuvring and warning signals, using whistle or lights.
Rule 35 covers sound signals to be used in restricted visibility.
Rule 36 covers signals to be used to attract attention.
Rule 37 covers distress signals.
Part E - Exemptions (Rule 38)

Rule 38 states that ships that comply with the 1960 Collision Regulations, and were built or already under
construction when the 1972 Collision Regulations entered into force, may be exempt from some requirements
for light and sound signals for specified periods.
Annexes
The COLREGs include four annexes:
Annex I - Positioning and technical details of lights and shapes.
Annex II - Additional signals for fishing vessels fishing in close proximity.
Annex III - Technical details of sounds signal appliances.
Annex IV - Distress signals, which lists the signals indicating distress and need of assistance.
Important amendments include the 2001 amendments, which entered into force in 2003, including new rules
relating to wing-in ground (WIG) craft. The following were amended:
• General Definitions (Rule 3) - to provide the definition of WIG craft;
• Action to avoid collision (Rule 8 (a)) - to make it clear that any action to avoid collision should be taken in
accordance with the relevant rules in the COLREGs and to link Rule 8 with the other steering and sailing
rules;
• Responsibilities between vessels (Rule 18) - to include a requirement that a WIG craft, when taking off,
landing and in flight near the surface, shall keep clear of all other vessels and avoid impeding their
navigation, and also that a WIG craft operating on the water surface shall comply with the Rules as for a
power-driven vessel;
• Power-driven vessels underway (Rule 23) - to include a requirement that WIG craft shall, in addition to the
lights prescribed in paragraph 23 (a) of the Rule, exhibit a high-intensity all-round flashing red light when
taking off, landing and in-flight near the surface;
• Seaplanes (Rule 31) - to include a provision for WIG craft;
• Equipment for sound signals and sound signals in restricted visibility (Rules 33 and 35) - to cater for small
vessels;
• Positioning and technical details of lights and shapes (Annex I) - amendments with respect to high-speed
craft (relating to the vertical separation of masthead lights);
• Technical details of sound signal appliances (Annex III) - amendments with respect to whistles and bell or
gong to cater for small vessels.
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International Convention on Tonnage Measurement of Ships

Adoption: 23 June, 1969. Entry into force: 18 July, 1982.
The Convention, adopted by IMO in 1969, was the first successful attempt to introduce a universal tonnage
measurement system.
Previously, various systems were used to calculate the tonnage of merchant ships. Although all went back to the
method devised by George Moorsom of the British Board of Trade in 1854, there were considerable differences
between them and it was recognised that there was a great need for one single international system.
The Convention provides for gross and net tonnages, both of which are calculated independently.
The rules apply to all ships built on or after 18 July 1982 - the date of entry into force - while ships built before
that date were allowed to retain their existing tonnage for 12 years after entry into force, or until 18 July 1994.
This phase-in period was intended to ensure that ships were given reasonable economic safeguards, since port
and other dues are charged according to ship tonnage. At the same time, and as far as possible, the Convention
was drafted to ensure that gross and net tonnages calculated under the new system did not differ too greatly
from those calculated under previous methods.
Gross tonnes and net tonnes

The Convention meant a transition from the traditionally used terms gross register tonnes (grt) and net register
tonnes (nrt) to gross tonnes (gt) and net tonnes (nt).
Gross tonnage forms the basis for manning regulations, safety rules and registration fees. Both gross and net
tonnages are used to calculate port dues.
The gross tonnage is a function of the moulded volume of all enclosed spaces of the ship. The net tonnage
is produced by a formula which is a function of the moulded volume of all cargo spaces of the ship. The net
tonnage shall not be taken as less than 30 per cent of the gross tonnage.
International Labour Organization (ILO)
www.ilo.org
The ILO is the oldest body in United Nations having been established in 1919 as part of the Treaty of Versailles
following the First World War. ILO became the first specialised agency of the UN in 1946. It is also the only UN
organisation that operates on a tripartite basis with governments, employers and unions. In relation to marine
labour matters, the three parties are:
1. member states (flag state and/or the labour supply state);
2. ship owners (International Shipping Federation - ISF);
3. social partners/seafarers (International Transport Workers Federation – ITF).
The reason for the existence of this organisation is best summarised by quoting directly from the ILO:
The driving forces for ILO’s creation arose from security, humanitarian, political and economic considerations.
Summarizing them, the ILO Constitution’s Preamble says the High Contracting Parties were ‘moved by
sentiments of justice and humanity as well as by the desire to secure the permanent peace of the world...’
There was keen appreciation of the importance of social justice in securing peace, against a background of
exploitation of workers in the industrialising nations of that time. There was also an increasing understanding of
the world’s economic interdependence and the need for cooperation to obtain similarity of working conditions
in countries competing for markets. Reflecting these ideas, the Preamble states:
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1. Whereas universal and lasting peace can be established only if it is based upon social justice;
2. And whereas conditions of labour exist involving such injustice hardship and privation to large numbers
of people as to produce unrest so great that the peace and harmony of the world are imperilled; and
an improvement of those conditions is urgently required;
3. Whereas also the failure of any nation to adopt humane conditions of labour is an obstacle in the way
of other nations which desire to improve the conditions in their own countries.
The areas of improvement listed in the Preamble remain relevant today, for example:
1. Regulation of the hours of work including the establishment of a maximum working day and week;
2. Regulation of labour supply, prevention of unemployment and provision of an adequate living wage;
3. Protection of the worker against sickness, disease and injury arising out of his employment;
4. Protection of children, young persons and women;
5. Provision for old age and injury, protection of the interests of workers when employed in countries
other than their own;
6. Recognition of the principle of equal remuneration for work of equal value;
7. Recognition of the principle of freedom of association;
8. Organisation of vocational and technical education, and other measures.
The Maritime Labour Convention - MLC

www.ilo.org/global/standards/maritime-labour-convention/WCMS_090250/lang--en/index.htm
Within the marine sector there were 40 maritime Conventions and 29 Resolutions that date back as far as 1922.
Conventions can only be amended by a full Diplomatic Conference and these only occur at 10-yearly intervals,
therefore, change to the ILO Conventions was very slow and some would argue that many of the provisions of
older Conventions and Resolutions were out of date.
In 2001, the social partners within the ILO suggested to governments that it was time to consolidate and
rationalise all of the maritime Conventions and Resolutions and to bring them together in one up to date
document. Work commenced and went very well such that at the Diplomatic Conference in February 2006, the
Consolidated Maritime Convention was born.
The Convention seeks to put in place a range of protections for all seafarers both in terms of fair competition
(wages) and adequacy of the living environment. The text of the Conventions runs to 110 pages and is divided
into two main sections:
1. articles;
2. titles.
The titles section is broken down into five sections:
1. minimum requirements for seafarers to work on a ship;
2. conditions of employment;
3. accommodation, recreational facilities, food and catering;
4. health protections, medical care, welfare and social security protection;
5. compliance and enforcement.
At the time of writing this module, the MLC is yet to come into force as it has not been ratified (accepted) by
sufficient governments. However, it is anticipated that it will come into force either late in 2011 or early 2012.
As with IMO, the ILO has no means of enforcing or policing the Convention and this task will fall to flag states.
It is anticipated that inspection will be carried out either directly by flag state inspectors or will be delegated
to a recognised organisation such as an approved classification society. The inspection regime itself is similar to
that of both the ISM Code and the ISPS Code with an initial inspection, five-yearly renewal and an intermediate
inspection between the 2nd and 3rd anniversary date of issue.
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Chapter 3 – Flag States
Learning Outcomes
• understand the role of the flag state in enforcing shipping standards.
Introduction
The flag state is the country in which a ship is registered. The flag state exercises regulatory control over the
owners and operators of the ship in accordance with international law as interpreted by national legislation.
The Role of the Flag State in International Standards
Sierra Leone Ensign South Korean Ensign Japanese Ensign
Liberian Ensign
Russian Federation Ensign Maltese Ensign
Singapore Ensign
Norwegian Ensign United Kingdom Ensign
Once an International Maritime Organization (IMO)/ International Labour Organisation (ILO) treaty goes
forward for ratification by the member states, it becomes the responsibility of the member states’ governments
to introduce appropriate regulations to implement the standard being introduced. Depending upon many
factors, the time taken for a member state to approve any given convention can be long. Once a given number
of member states have accepted the proposed standard (the number required being part of the convention
proposed) the IMO/ILO convention is then considered to be in force.
For a member state to ratify a convention it is necessary that it makes sure that the national laws of the country
conform to that of the convention. Therefore, often member states will need to introduce new legislation in
order to adopt the convention. The member states are, for marine purposes, the flag states. That is to say that
marine craft that fly the flag of the member state are the craft to which the convention applies (subject to
certain exemptions).
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After the appropriate conditions have been fulfilled there is normally a period of grace before the convention
actually comes into force.
With a convention adopted by the IMO/ILO and appropriate legislation adopted by the flag state it then
becomes necessary for the flag state to implement the convention. As stated earlier, implementation,
interpretation and enforcement of any particular standard can vary enormously from flag state to flag state.
In the United Kingdom (UK), IMO/ILO conventions are adopted through Acts of Parliament. The Acts generally
do not deal with issues of major substance (in terms of technical detail) but they refer to either Statutory
Instruments or Codes of Practice effectively giving the force of law to specific technical documents.
Flags of Convenience
Cambodian Ensign St Vincent and the Grenadines Cypriot Ensign
Cayman Islands Ensign

Panamanian Ensign
Gibraltar Ensign Bermuda Ensign
A flag of convenience ship is one that flies the flag of a country other than the country of ownership.
Generally speaking, the term is derogatory and used to imply low standards; however, this is not universally
correct. Some countries that have established national registers have set up second registers as a means of
encouraging national ownership by introducing tax incentives. Such registers are more properly described as
national or closed registers rather than flags of convenience.
For genuine flags of convenience vessels, cheap registration fees, low or no taxes and freedom to employ cheap
labour are the primary motivating factors behind a ship owner’s decision to ‘flag out’ with the consequent knock
on impact to standards. The use of flags of convenience lowers registration costs and allows for a reduction in
maintenance costs, which in turn reduces overall transportation costs: the accumulated advantages of which
can be significant to an owner.
In theory there is meant to be a genuine link between a ship’s owners and the flag state. This requirement
dates back to 1958, when Article 5 (1) of the Geneva Convention of the High Seas required that: the state
must effectively exercise its jurisdiction and control in administrative, technical and social matters over ships
flying its flag. The principle was subsequently repeated in Article 91 of the 1982 treaty called the United
Nations Convention on the Law of the Sea (UNCLOS). In 1986, the United Nations Conference on Trade and
Development sought to introduce a genuine link in the United Nations Convention for Registration of Ships
Page 25
requiring that a flag state be linked to its ships either by having an economic stake in the ownership of its
ships or by providing mariners to crew the ships. To come into force, the treaty requires 40 signatories whose
combined tonnage exceeds 25 per cent of the world total. To date the convention has not been ratified.
In 1978, the environmental disaster caused by the sinking of the Amoco Cadiz, which flew the Liberian flag of
convenience, caused a political and public outcry - the outcome was the creation of a new type of maritime
enforcement (port state control) seeking to eliminate substandard ships.
Port State Control

As discussed above, the IMO/ILO have established a number of conventions to assist in achieving basic standards
of safety, but the responsibility for compliance rests with the flag state. It has long been recognised, however,
that some flag states pay more attention to some conventions than to others and, therefore, inspections by port
states can make a very useful contribution towards ensuring that the aims of all the conventions are realised.
The application of port state control inspections is achieved through regional groupings. In Europe, the Paris
Memorandum of Understanding (MOU) came into operation in 1982 covering the coastal states of Europe,
Russia and the Atlantic Coast of North America (www.parismou.org).
The various port state memoranda of understanding are:
1. Europe and the North Atlantic (Paris MoU*): www.parismou.org
2. Asia and the Pacific (Tokyo MoU): www.tokyo-mou.org
3. Latin America (Acuerdo de Vina del Mar): www.acuerdolatino.int.ar
4. Caribbean (Caribbean MoU): www.caribbeanmou.org
5. West and Central Africa (Abuja MoU): www.abujamou.org
6. The Black Sea Region (Black Sea MoU): www.bsmou.org
7. Mediterranean (Mediterranean MoU): www.medmou.org
8. Indian Ocean (Indian Ocean MoU): www.iomou.org
9. Riyadh MoU: www.riyadhmou.org
In order for port state inspections to be effective it is necessary that they are targeted towards ships that are
most likely to be in breach of international standards. To do this, the various organisations maintain listings
of problem ships together with different means of determining whether or not a particular ship should be
inspected.
For port states operating under the Paris MOU, a target factor is used to ranks ships and takes the following
into account:
• flag (targeted);
• EU recognised classification society;
• ship type (targeted);
• ship’s age (more than 12 years old);
• flag state ratification record;
• classification deficiency ratio;
• entering the region for the first time in 12 months;
• detained during the past 12 months;
• number of deficiencies per inspection;
• outstanding deficiencies from the last inspection.
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During a port state control inspection, the port state control officer (PSCO) will initially concentrate on the ship’s
documentation and certificates. The PSCO will also carry out a general inspection of different areas to check that
the certificates do, in fact, accurately reflect the state of the ship.
In determining whether or not the certificates and state of the ship are to a suitable standard, the PSCO will take
into account whether or not the ship and her crew can:
• navigate safely;
• safely handle, carry and monitor the condition of the cargo;
• operate the engine room safely;
• maintain proper propulsion and steering;
• fight fires effectively in any part of the ship, if necessary;
• abandon ship rapidly and safely and effect rescue, if necessary;
• prevent pollution of the environment;
• maintain adequate stability;
• maintain adequate watertight integrity;
• communicate in distress situations;
• provide safe and healthy conditions on board.
In the event that the certificates are incorrect or there are clear grounds to believe that the condition of the ship,
its equipment or its crew do not meet the requirements of the relevant convention, a more detailed inspection
will be conducted.
If deficiencies are found, the flag state administration is notified and the Paris MOU database of ships is updated.
Depending upon the precise nature of the deficiency, it is possible for the ship to be detained in port until such
time as the defect has been rectified.
Of all the tools available for the checking and enforcement of international standards, port state control has
proved to be the most effective although the actual standard achieved remains relatively low and the standards
enforced by different port state control groups have yet to be unified.
The Hierarchy of Standards

As stated earlier, the standards set by the IMO/ILO are the lowest common denominator upon which politicians
and their technical advisers can reach agreement. Such standards fall a long way below what can be called
‘good practice’. The hierarchy of standards that applies to a ship can be well represented by means of a pyramid,
with the laws and regulations forming the pinnacle of the pyramid and the owner’s approach determining the
base or foundation. Clearly, with ethical owners maintaining high standards in all areas, the pyramid will have
a substantial and solid base leading to a good and safe operation. On the other hand, for those owners who
are unscrupulous, the base of the pyramid is undermined, leading to the pyramid becoming unstable and the
operation becoming poor and dangerous.
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Hierarchy of standards
As already mentioned, most flag states have an organisation which acts as the controller of the standards of
ships and small craft in their territorial waters and/or registered in their country. In the UK, this function falls to
the Maritime and Coastguard Agency (MCA).
The Maritime and Coastguard Agency - MCA
www.dft.gov.uk/mca/
The MCA is an executive agency of the Department of Transport, Local Government and the Regions (DTLR).
As an executive agency, it operates in many ways like an independent company; however, the MCA is, in effect,
the maritime police force for the UK.
The MCA is responsible for:
• developing, promoting and enforcing high standards of marine safety;
• minimising loss of life amongst seafarers and coastal users;
• responding to maritime emergencies 24 hours a day;
• minimising the risk of pollution of the marine environment from ships, and where pollution occurs,
minimising the impact on UK interests.
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The MCA sets appropriate safety standards for the inspections and surveys of UK flag vessels in order to
ensure they meet high safety standards. The MCA carries out port state control of non-UK ships, investigates
and prosecutes breaches of merchant shipping legislation, and develops and sets ship and seafarer standards
through legislation, marine notices and codes of practice.
In the event of an accident involving loss of life or environmental pollution, the MCA may at some stage
become involved. However, there is one other government organisation that is involved in marine survey work,
specifically for the investigation of accidents - Marine Accident Investigation Branch (MAIB).
The Marine Accident Investigation Branch - MAIB
www.maib.gov.uk
The MAIB is a UK Government organisation that investigates marine accidents within the UK and abroad for
accidents involving UK-registered vessels. It is the role of the MAIB to investigate and report, not to prosecute.
Inspectors are drawn from the nautical, marine engineering, naval architecture and fishing disciplines and are
appointed under the Merchant Shipping Act 1995. An administrative staff deals with records, data analysis and
publications, and provides general support to inspectors at all stages of an investigation.
The powers of MAIB inspectors and the framework for reporting and investigating accidents are set out in the
Merchant Shipping Act 1995. The Merchant Shipping (Accident Reporting and Investigation) Regulations 1999
put this framework into effect.
These regulations are the foundation of the MAIB’s work. They apply to merchant ships, fishing vessels and (with
some exceptions) yachts and small craft. They define accidents, set out the purpose of investigations and lay
down the requirements for reporting accidents. The regulations make provision for the ordering, notification
and conduct of investigations, but allow inspectors a good deal of discretion. In carrying out their investigation,
the MAIB has extremely wide powers and failing to assist can be a criminal offence. Following the investigation,
the MAIB reports its findings to the Secretary of State and subsequently will publish a report on the accident. If
there are breaches of regulations identified in this report the MCA or other relevant government departments
(such as Health and Safety) may then take over and prosecute.
The MAIB publishes the results of every investigation. The MAIB also produces a Safety Digest: a collection
of short reports on the lessons learned from investigations in order to reduce the future potential of such
accidents recurring.
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Chapter 4 - Classification Societies and the Role of Class
Learning Outcomes
• understand the role and function of classification societies.
Introduction
One type of organisation that is frequently mentioned and frequently misunderstood is the classification society
- amongst the better known are Lloyd’s Register, Det Norske Veritas and the American Bureau of Shipping.
Frequently, classification societies are regarded as a standard that has to be achieved (and maintained) and all
too frequently people misunderstand that the standard only applies to certain aspects of a ship.
Classification societies all work to sets of published rules that define the minimum acceptable standard for
certain aspects of different types of vessel considered relevant by the particular society.
When a ship is built to class it means that the design and construction of the ship has followed the specific rule
requirements of the classification society. It does not mean that every aspect of the ship has been considered
and evaluated by the classification society. The only way to determine what is or is not included is to refer to
the society’s rules as applicable to the particular ship.
Of particular importance to note is that classification societies’ rules do not detail the minimum level of
firefighting equipment or lifesaving equipment that a ship needs to carry.
One final area of misunderstanding is the role classification societies play in flag state surveying. Some flag states
delegate some or all of their statutory survey functions to classification societies. In such cases a classification
surveyor can survey the vessel and issue a certificate on behalf of the flag state (provided the vessel complies
with the flag state regulations). There are two distinct roles in which the class surveyor may act: a statutory
role where certification IS compulsory (and the certificate that is issued is statutory), and a classification role
where certification is NOT mandatory (and, therefore, the certificate is voluntary). Confusion sometimes arises
when a vessel is issued with a safety equipment certificate by a class surveyor. In this case, the certificate means
the vessel complies with the relevant flag state regulations. It does not mean that the classification society
has approved the safety equipment. As already stated, classification society rules do not normally cover the
minimum requirements for firefighting and lifesaving equipment that need to be carried.
One further complication to this arrangement is where classification societies issue type-approval certificates
for equipment. In this case the classification society tests an item of equipment to verify that it complies with a
particular standard. The standard tested against may or may not be statutory.
To quote from Lloyd’s Register of Shipping in their Rules they explain the role of classification as:
Ship classification may be regarded as the development and world-wide implementation of published rules
and regulations which, in conjunction with proper care and conduct on the part of the Owner and operator,
will provide for:
• the structural strength of (and where necessary the watertight integrity of ) all essential parts of the hull
and its appendages;
• the safety and reliability of the propulsion and steering;
• the effectiveness of those other features and auxiliary systems which have been built into the ship in order
to establish and maintain basic conditions on board whereby appropriate cargoes and personnel can be
safely carried whilst the ship is at sea, at anchor, or moored in harbour.
Such a definition is as good as any that the author has come across and clearly summarises the crucially
important features of any reputable Class Society, not just Lloyd’s Register.
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Background History of Ship Classification Societies

In the 17th and 18th Century, coffee houses were popular centres for London businessmen to meet and
conduct their business. Prior to the Great Fire of London, marine insurers had met at the Royal Exchange,
however, after the fire they moved to a new location at Lloyds in Lombard Street.
The proprietor, Edward Lloyd, provided information on ships in the London Docks by means of a newspaper
that gave a description of the ships. However, at this time, there was no uniform standard by which to judge
the ships.
To attempt to overcome this, a Committee was formed in 1760, which detailed vessel ownership, the master,
characteristics of the ship and an assessment of her condition. However, the condition assessment was
subjective – it was based on the opinion of the earliest surveyors.
Subsequently, an attempt was made to judge the ship’s condition on a annual basis. The designations A, E, I,
O and U were used to define the construction and ongoing upkeep of the ship with ship’s equipment being
described as either good, middling or bad (G, M or B). Subsequently these designations were changed to 1, 2
and 3 and the concept of the Lloyd’s A1 vessel was born.
The first classification society was formed in 1834 and called itself Lloyd’s Register of British and Foreign
Shipping. The first set of rules for iron ships were produced by Lloyd’s in 1855.
Other countries followed the idea:
1828 Bureau Veritas (BV) being founded in Antwerp but based in Paris from 1832
1861 Registro Italiano Navale (RINA)
1862 American Bureau of Shipping (ABS)
1864 Det Norske Veritas (DNV)
1867 Germanischer Lloyd (GL)
1899 Nippon Kaiji Koyokai (ClassNK)
1913 The Russian Maritime Register of Shipping
1949 Hrvatcki Register Brodova or Croatian Register of Shipping (CRS)
1956 China Classification Society (CCS)
1960 Korean Register of Shipping (KR)
1975 Indian Register of Shipping (IRS)
In addition to the above, there are in the region of 60 different organisations that call themselves classification
societies, however, the standards to which they aspire varies tremendously. Today, there is an industry
grouping of what is considered by some to be the ‘better’ classification societies - these co-operate through an
organisation called the International Association of Classification Societies (IACS).
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International Association of Classification Societies – IACS
www.iacs.org.uk
More than 90 per cent of the world’s cargo carrying tonnage is covered by the classification design, construction,
and through-life compliance rules and standards set by the Member Societies of IACS.
The origins of the organisation come from the International Load Line Convention of 1930. The Convention
recommended collaboration between classification societies to secure as much uniformity as possible in the
application of the standards of strength upon which freeboard is based.
Following the Convention, The Royal Institute of Naval Architects (RINA) hosted the first conference of major
societies in 1939. This was attended by ABS, BV, DNV, GL, LR and NK and it was agreed to establish a mechanism
for co-operation.
With the formation of the International Maritime Consultative Organisation in 1948, another conference was
held between the classification societies in 1955. Cooperation continued and in 1968, IACS was officially formed.
The main areas of IACS Members’ activities are:
• ship classification services;
• statutory services on behalf of flag states;
• research and development;
• technical advisory services.
Today, IACS consists of 13 member classification societies. These are:

ABS www.eagle.org
BV www.veristar.com
CCS www.ccs.org.cn
CRS www.crs.hr
DNV www.dnv.com
GL www.gl-group.com
IRS www.irclass.org
KR www.krs.co.kr
LR www.lr.org
NK www.classnk.or.jp
PRS www.prs.pl
RINA www.rina.org
RS www.rs-head.spb.ru
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The Role of a Classification Society

To quote from the IACS definition of ship classification:
Ship classification, as a minimum, is to be regarded as the development and worldwide implementation of
published rules and/or regulations which will provide for:
1) the structural strength of (and where necessary the watertight integrity of ) all essential parts of the
hull and its appendages;
2) the safety and reliability of the propulsion and steering systems, and those other features and auxiliary
systems which have been built into the ship in order to establish and maintain basic conditions on
board:
thereby enabling the ship to operate in its intended service.
As can be seen, this is not dissimilar to the definition used by Lloyd’s Register of Shipping.
The achievement of these goals requires continued compliance with the rules and/or regulations of the Society
and proper care and conduct on the part of the owner and operator.
Ship Classification Services

Ship classification essentially sets a standard for the construction, maintenance, repair and ongoing inspection
for ships.
With a ship built and maintained to class it is generally accepted that the ship is adequate in terms of:
• the structural strength of all essential parts of the hull and its appendages;
• the safety and reliability of the propulsion and steering systems;
• the effectiveness of those other features and auxiliary systems which have been built into the ship
in order to establish and maintain basic conditions on board whereby appropriate cargoes and
personnel can be safely carried whilst the ship is at sea, at anchor, or moored in harbour.
Ongoing assessment of condition is achieved by means of a survey and inspection regime at regular periods.
Classification societies maintain surveyors in the main shipping centres throughout the world in order to survey
an owner’s ship as and when required.
Subject to passing the survey, the ship is issued with a classification certificate that evidences the ongoing
compliance of the ship with the rules of the classification society.
To maintain its class while in service, a ship must be surveyed annually, with major surveys every five years.
Surveys become increasingly stringent as ships get older.
Failure to meet the relevant standards or non-compliance with recommendations issued as a result of a
classification survey may result in the suspension or withdrawal of class, known as disclassing.
Statutory Services
Classification societies may also be required or requested to carry out statutory surveys on behalf of flag state
administrations - this can sometime lead to confusion. Classification societies conduct their business according
to their own class rules. These rules are voluntary. When a classification society carries out a survey for a flag state
(and IACS members are authorised to do this for over 100 flag states) the standards that are used are statutory
(because they are the flag state’s standards adopted by law) even though the actual standard used may be
those of the classification society.
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Research and Development

Shipping is a developing business and improvements in both safety and efficiency are constantly sought.
Research and development is expensive so it makes great sense if the different classification societies
collaborate thus sharing costs and improved standards are promulgated.
At the time of writing, IACS are involved in over 100 different research and development projects covering ship
structures, shipboard engineering systems, ship construction, maintenance, operation, communications and
navigation.
The results of the research coupled with experience from the worldwide shipping fleets feeds back into the
classification process and the respective societies amend their rules on a regular basis to reflect good practice.
This continuous process of development, together with essential feedback from service experience, results
in a rolling update of classification rules to meet new demands in sea transport and marine technology thus
keeping classification at the forefront of technical standards.
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5. Industry Organisations and Information Sources
Learning Outcomes
• have an appreciation of some of the numerous different information sources available to you in
your work as a superintendent;
• understand the value of excellent internet searching skills.
Introduction
In addition to the regulators, there are a wide range of industry-based groupings that represent different aspects
of the shipping industry. Some of these are trade unions, some are ship owner’s representatives, some are cargo
type representatives and some are professional organisations together with many others. The following section
gives a brief overview of some of the better known organisations in no particular order.
For the student, the value of an awareness of these different organisations comes from knowing where to go
when more information and/or assistance is required in a particular area.
Throughout this section, where a hyperlink appears at the beginning of the narrative for each individual organisation -
the information presented comes from the organisation’s website and has been edited for the purposes of this module.
Full acknowledgement is given to each organisation as the reference source of the information.
International Transport Workers’ Federation - ITF
www.itfglobal.org
The ITF is essentially an international trade union movement with member organisations in most countries
throughout the world
The following is an extract from the ITF web site detailing their role with respect to shipping and the seafarer:
The ITF has been helping seafarers since 1896 and today represents the interests of seafarers worldwide, of
whom over 600,000 are members of ITF affiliated unions. The ITF is working to improve conditions for seafarers
of all nationalities and to ensure adequate regulation of the shipping industry to protect the interests and rights
of the workers. The ITF helps crews regardless of their nationality or the flag of their ship.
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International Chamber of Shipping - ICS
www.marisec.org
The ICS is the principal international trade association for the shipping industry representing all sectors and
trades. Membership comprises national ship owner associations whose members own and operate ships and
shipping companies on a worldwide basis.
The ICS publishes a Statement of Purpose which says:
The aim of ICS is to promote the interests of ship owners and operators in all matters of shipping policy and
ship operations.
In defining what this means, the ICS state that they will:
• encourage high standards of operation and the provision of high quality and efficient shipping services;
• strive for a regulatory environment which supports safe shipping operations, protection of the environment
and adherence to internationally adopted standards and procedures;
• promote properly considered international regulation of shipping and oppose unilateral land regional
action by governments;
• press for recognition of the commercial realities of shipping and the need for quality to be rewarded by a
proper commercial return;
• remain committed to the promotion of industry guidance on best operating practices;
• co-operate with other organisations, both inter-governmental and non-governmental in the pursuit of
these objectives;
• anticipate whenever possible and respond whenever appropriate to policies and actions which conflict
with the above.
The ICS has membership organisations from the following 32 countries:
Australia Bahamas Belgium Bulgaria Canada

Chile Croatia Cyprus Denmark Finland
France Germany Greece Hong Kong India
Ireland Italy Japan Korea Kuwait
Liberia Mexico Netherlands Norway Singapore
Spain Sweden Switzerland Turkey UAE (Abu Dhabi)
United Kingdom United States
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Areas of interest for the ICS include:

• atmospheric pollution prevention;
• ballast water management;
• cargo safety;
• classification standards;
• competition regulation;
• flag state performance;
• facilitation and customs;
• insurance and liability;
• ISM code implementation;
• maritime law;
• maritime security and International Ship and Port Facility Security (ISPS);
• navigation;
• oil pollution compensation;
• ship construction standards;
• tanker, chemical and gas carrier safety;
• ship recycling;
• shipping and trade policy.
As a resource the ICS publishes a number of influential books and guides including:
• ICS Bridge Procedures Guide;
• ICS/OCIMF/IAPH International Safety Guide, for Oil Tankers and Terminals (ISGOTT);
• ICS Tanker Safety Guide (Chemicals);
• ICS Tanker Safety Guide (Liquefied Gas).
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International Shipping Federation - ISF
The ISF is the principal international employers’ organisation for the shipping industry, representing all sectors
and trades. ISF membership comprises national ship owners’ associations whose member shipping companies
together operate two thirds of the world’s merchant tonnage and employ a commensurate proportion of the
world’s 1.25 million seafarers.
Established in 1909, ISF is concerned with all labour affairs, manpower and training, and seafarers’ health and
welfare issues that may have an impact on international shipping.
ISF is actively engaged with the following international bodies:
• International Labour Organisation (ILO);
• International Maritime Organisation (IMO)
• World Health Organisation (WHO);
• International Committee on Seafarers’ Welfare (ICSW)
• International Organisation of Employers (IOE).
ISF also enjoys a close relationship with national maritime authorities throughout the world. The national
associations that form the membership of ISF appoint representatives to its expert committees, which are
responsible for developing the international labour policy of maritime employers. This includes positions to be
adopted on international maritime regulatory questions, industrial relations and training issues that may have
an impact on the global shipping industry.
What areas does ISF cover?

For the past 80 years, ISF has played an influential role in the development, implementation and subsequent
revision of all ILO maritime labour instruments. It was responsible for coordinating the position of maritime
employers throughout the development and adoption of the ILO Maritime Labour Convention, 2006.
For the last 30 years, ISF has also played a similar role in the development and subsequent amendment of the
IMO Standards of Training, Certification and Watchkeeping Convention (STCW) and other IMO regulations that
may have a direct impact on maritime employers, including discussions relevant to the role of the ‘human
element’ in maritime safety.
Through its institutional role as an ILO ‘social partner’, ISF is the opposite member of the International Transport
Workers’ Federation (ITF) with whose affiliates ISF member ship owners’ associations make up the membership
of the ILO Joint Maritime Commission, responsible for recommending the ILO minimum wage for Able Seafarers.
ISF also works very closely with its sister organisation, the ICS, and the other partners in the round table of
international shipping associations - The Baltic and International Maritime Council (BIMCO), The International
Association of Dry Cargo Shipowners (Intercargo) and International Association of Independent Tanker Owners
(INTERTANKO). Further information on these associations can be found later in this chapter.
ISF is centrally involved in the co-ordination and representation of the global shipping industry’s views on most
issues affecting maritime employers, including:
• employment standards;
• industrial relations;
• health, safety and accident prevention;
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• living and working conditions;

• manning agency standards;
• manpower supply;
• maritime labour convention implementation;
• port welfare;
• safety culture;
• seafarers’ rights;
• training and certification standards;
• wage cost information;
• work hour regulations.
Publications
The International Shipping Federation publishes a number of books and some software as listed below:
• Guidelines on Good Employment Practice;
• ILO MLC: a Guide for the Shipping Industry;
• personal training and service record books;
• Training record books (for deck/engine cadets and ratings);
• ISF Marlins English Language Test (PC-based);
• ISF Watchkeeper (work hour records) software.
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The Baltic and International Maritime Council - BIMCO
www.bimco.org
BIMCO is an independent international shipping association founded in 1905, with a membership composed
of ship owners, managers, brokers, agents and many other stakeholders with vested interests in the shipping
industry.
The Associaton acts on behalf of its membership to promote higher standards and greater harmony in regulatory
matters. It is a catalyst for the development and promotion of fair and equitable international shipping policy.
BIMCO is accredited as a non-governmental organisation (NGO), holds observer status with a number of United
Nations organisations and maintains a close dialogue with maritime administrations, regulatory institutions
and other stakeholders within the EU, the USA and Asia. The association provides a comprehensive source of
practical shipping information and a broad range of advisory and consulting services to its members.
Membership consists of nearly 1,000 owner-members, 1,600 brokers, and 100 protection and indemnity clubs
and other shipping-related companies. Owner-members represent approximately 450 million deadweight
tonnage (dwt) – 60 per cent of the total worldwide cargo carrying capacity.
Information services include:

• charter party interpretation;
• laytime calculations;
• port-related advice;
• freight taxes;
• ice situation;
• company backgrounds;
• holidays;
• security.
Publications include:
• BIMCO standard contracts;
• Forms of Approved Documents;
• The Ship Master’s Security Manual;
• BIMCO Bulletin;
• BIMCO Weekly News;
• Agency tariffs;
• BIMCO Holiday Calendar;
• Freight taxes.
The development of standard shipping contracts is perhaps the most widely recognised of BIMCO’s activities.
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Oil Companies International Marine Forum - OCIMF
www.ocimf.com
OCIMF was formed at a meeting in London on 8 April, 1970. It was initially the oil industry’s response to
increasing public awareness of marine pollution, particularly by oil, after the Torrey Canyon incident.
Governments had reacted to this incident by debating the development of international conventions and
national legislation, and the oil industry sought to play its part by making its professional expertise available and
its views known to governmental and inter-governmental bodies.
OCIMF was incorporated in Bermuda in 1977 and a branch office was established in London, primarily to
maintain contact with the IMO.
At the time of writing, membership of OCIMF comprises 83 companies worldwide.
The officers of OCIMF comprise a chairman and three vice-chairmen, all of whom are elected at the Annual
General Meeting of OCIMF member companies. A committee structure with the Executive Committee at its
head and three senior standing committees reporting to it. The senior standing committees may establish
subcommittees or forums as necessary.
A full time director is in charge of a small permanent secretariat located in London. This secretariat comprises
full-time employees and technical staff seconded from member companies.
The work of OCIMF is carried out through the committees, sub-committees, forums, work groups and task forces
composed of members’ representatives and assisted by the secretariat.
Objectives
The primary objectives of OCIMF are the promotion of safety and prevention of pollution from tankers and
at oil terminals. OCIMF was granted consultative status in 1971 at the IMO and is organised to co-ordinate oil
industry views at IMO meetings, to review technical proposals circulated by IMO and to advise its membership
on legislative activities as they develop.
OCIMF also has consultative status with the UN Economic and Social Council and with the International
Organisation for Standardisation (ISO). As well as participating in the work of IMO, OCIMF presents its members’
views before individual national governmental authorities and maintains a close liaison with other industry
bodies and associations.
An important contribution to the safety of the industry is the role that OCIMF plays in producing technical and
operational guidelines, either by itself or in co-operation with other industry associations. OCIMF has produced
in excess of 50 of these guidelines and many are now taken as the industry standard in their particular field.
OCIMF provides the means for joint research projects to be undertaken and co-ordinated on behalf of its
members. Many of these projects, for example, studies on tanker drift and towage, mooring hawser strength
and so on, have resulted in technical guidelines being published for the wider benefit of the industry.
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Ship Inspection Report - SIRE

One of the significant safety initiatives introduced by OCIMF is the SIRE. This programme was originally launched
in 1993 to specifically address concerns about sub-standard shipping. The SIRE Programme is a tanker risk-
assessment tool for charterers, ship operators, terminal operators and government bodies concerned with ship
safety.
The SIRE system is a very large database of up to date information about tankers and tank barges. Essentially,
SIRE focuses awareness on the importance of meeting satisfactory tanker quality and ship safety standards.
Since its introduction, the SIRE Programme has gained acceptance and participation by OCIMF members and
ship operators. The expansion of barges and small vessels into SIRE was inaugurated in late 2004.
The SIRE programme uses the following uniform inspection procedure:
• Vessel Inspection Questionnaire (VIQ);
• Barges Inspection Questionnaire (BIQ);
• Uniform SIRE Inspection Report;
• Vessels’ Particulars Questionnaire (VPQ);
• Barge Particulars Questionnaire (BPQ);
• SIRE Enhanced Report Manager (WebSERM).
The system has been established to maintain a degree of uniformity in assessment and reporting, and provide
some transparency of standards within the marine oil transportation industry.
SIRE is a major source of technical and operational information to prospective charterers and other programme
users. Its use is consistent with oil industry efforts to better ascertain whether vessels are well managed and
maintained, assisting in the drive for safer ships and cleaner seas.
Inspection reports are maintained on the index for a period of 12 months from the date of receipt and are
maintained on the database for two years. SIRE access is available to: OCIMF members; bulk oil terminal
operators; port authorities; canal authorities; and oil, power, industrial or oil trader companies which charter
tankers/barges as a normal part of their business. It is also available, free of charge, to governmental bodies
which supervise safety and/or pollution prevention in respect of oil tankers/barges, for example, port state
control authorities, Memorandum of Understanding (MoU), etc.
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The International Association of Dry Cargo Shipowners -

Intercargo
www.intercargo.org
Intercargo members operate predominantly bulk carriers in the international dry bulk trades, including coal,
grain, iron ore and other bulk commodities. Its main role is to work with its members, the regulators and other
shipping associations to ensure that shipping operates safely, efficiently, environmentally and profitably within
its market segment. To help achieve its objectives, the organisation participates in the development of global
legislation through the IMO and other regulatory bodies.
The main areas of active concern for Intercargo are:
• air emissions;
• cargoes;
• casualties and transparency;
• design standards;
• criminalisation;
• environmental legislation;
• loading rates;
• piracy;
• port state control performance;
• reception facilities;
• training and manpower.
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International Ship Management Association - InterManager
www.intermanager.org
InterManager was founded originally under the name ISMA - International Ship Management Association.
When ISMA was founded in 1991, it was to improve standards in ship management and achieve a safer, more
environmentally conscious, more reliable, and more controllable ship management industry. These underlying
values continue to be the aim of the association today.
The ISMA Code contributed to a quality movement within shipping which culminated in the IMO adopting the
ISM Code for mandatory implementation by flag states as Chapter IX of the SOLAS Convention.
At the time of its development, the ISMA Code of Ship Management Standards aimed to reflect the highest
standards of ship management practice. It was drafted by established ship managers drawing on the experience
gained through their involvement in day to day ship management operations.
Today, membership requirements recognise that ISO9001:2000 encompass the ISMA code elements such that
an additional ISMA audit to ascertain members’ quality levels is no longer required. Instead the organisation
publishes the ISMA Guidelines on the interpretation of the ISO9001: 2000 code as it applies for ship and crew
managers.
The work of the association is performed by members through their participation in the activities of the various
committees:
• Criminalisation of the Seafarers;
• Piracy;
• Key Performance Indicators;
• EU/IMO;
• ICT.
InterManager obtained consultative status with IMO at its 19th Assembly in November, 1995.
The day to day activities of InterManager are entrusted to the secretary general and executive committee
(Excom). Excom meets some three times a year and guides the policy of the organisation between annual
meetings.
Responsibility for ensuring that the InterManager Best Practice Guidelines remain up to date and reflect the
highest quality standard rests with the Best Practice Committee. It considers revisions to the guidelines as part
of the process of keeping it fully in tune with the changes in the ship management industry, and developing
performance standards for managers. All major changes are agreed by Excom and its members.
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International Association of Independent Tanker Owners -

INTERTANKO
www.intertanko.com
INTERTANKO has been the voice of independent tanker owners since 1970. The organisation’s objective is to
ensure that the oil is shipped safely, responsibly and competitively.
Membership is open to independent tanker owners and operators of oil and chemical tankers, for example,
non-oil companies and non-state controlled tanker owners, who fulfil the association’s membership
criteria. Independent owners operate some 80 per cent of the world’s tanker fleet and the vast majority are
INTERTANKO members. In January 2010, the organisation had 250 members, whose combined fleet comprised
of approximately 3,050 tankers, totalling 260 million dwt. INTERTANKO’s associate membership includes
approximately 330 companies with an interest in shipping of oil and chemicals.
INTERTANKO is a forum where the industry meets, policies are discussed and statements are created. It is a
valuable source of first-hand information, opinions and guidance. INTERTANKO has a vision of a professional,
efficient and respected industry that is dedicated to achieving safe transport, cleaner seas and free competition.
INTERTANKO information service

INTERTANKO is involved in a wide range of topics, which include commercial, technical, legal and operational
matters.
INTERTANKO’s information and advisory services include:
• weekly news;
• courses and seminars;
• access to a range of web-based services.
INTERTANKO produces publications specialising in technical, operational, environmental, documentary and

market issues.
Members and associate members are entitled to direct expert opinions from experienced lawyers, mariners,
naval architects, marine engineers, economists and other specialists within the INTERTANKO organisation.
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Tanker Structure Cooperative Forum - TSCF

The following information on the TSCF is taken from a paper titled: An Overview of the Tanker Structure
Cooperative Forum, by Peter F Weber, published in 2007.
Since its formation in the early 1980s, the TSCF has provided a venue for technical dialogue on structural aspects
of tankers.
Composed of naval architects and engineers from major oil companies, independent tanker operators, and
classification societies, the TSCF encourages its members to share experiences and resolve technical issues
common to all. Through various work group activities and the publication of a series of manuals and periodic
meetings with shipbuilders, it has achieved a respected position in the tanker industry.
Background to Forum Activities

The TSCF was established in 1983 when Shell International Marine invited a group of owners and classification
societies to meet in order to share experiences and hold technical dialogues on structural aspects of tankers.
From an initial membership of 12, the Forum has grown to 27 members today. The Forum maintains two bodies,
the Steering Committee and the Work Group. The Steering Committee is responsible for oversight and direction
of the Forum. It approves the work plans and product of the Work Group, and typically meets once per year. The
Work Group develops and stewards the work program of the Forum, which typically consists of three to five
topics of interest to the members. The Work Group meets at least once a year, sometimes more often. Smaller
sub-work groups may meet more frequently.
Membership in the Forum is voluntary and anyone can ask to join. There are no membership fees. Members
must be willing to share structural experiences with other members and actively participate in meetings and
work activities. Meetings are hosted by members at their home locations around the globe, with a general
rotation between Europe, the Americas and Asia.
Role of the TSCF

The role of the Forum is to share knowledge and experience in order to gain a better technical understanding
of the performance of tanker structures in service. Specific topic areas of interest include corrosion, structural
defects, inspection procedures, and acceptance criteria for determining renewal of damaged or corroded
structure.
Membership
The membership of the TSCF is composed of classification societies, oil majors and independent tanker
operators with about equal representation from all three groups. Typically, the member representatives are
naval architects and engineers involved in the structural design and maintenance of tankers. The membership
of the Forum is as follows:
Class Members
American Bureau of Shipping (ABS)
Bureau Veritas (BV)
Det Norske Veritas (DNV)
Germanischer Lloyd AG (GL)
Korean Register of Shipping
Lloyd’s Register Shipping (LR)
Nippon Kaiji Kyokai (ClassNK)
RINA S.P.A.
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Oil Majors
BP Shipping Limited
Chevron Shipping Company LLC
ConocoPhillips
ExxonMobil affiliates (IMT and SeaRiver)
Petrobras
Shell Shipping Technology
Total Trading and Shipping
Vela International Marine Ltd
Independent Companies
A.P. Moller-Maersk
Euronav Ship Management SAS
Hellespont Steamship Corp
Keystone Shipping Company
Mitsui OSK Lines Ltd
NYK Line
OSG Ship Management
Stena Rederi AB
Sun Enterprises Ltd
Teekay Marine Services
Thenamaris Ships Management Inc
Over the years the TSCF has published five technical manuals intended to share knowledge and experience of
tanker structures with the industry. These are as follows:
1. Guidance Manual for the Inspection and Condition Assessment of Tanker Structures – 1986;
2. Condition Evaluation and Maintenance of Tanker Structures – 1992;
3. Guidelines for the Inspection and Maintenance of Double Hull Tanker Structures – 1995;
4. Guidance Manual for Tanker Structures – 1997;
5. Guidelines for Ballast Tank Coating Systems and Surface Preparation – 2002.
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The International Parcel Tankers Association - IPTA
www.ipta.org.uk
IPTA was formed in 1987 by a number of independent parcel tanker operators who felt that the time had come
for this sector of the shipping industry to have specialist representation in the various forums that influence
their business. IPTA has since developed into an established representative body for ship owners operating IMO
classified chemical and product tankers and is recognised as a focal point through which regulatory authorities,
charterers and trade organisations may liaise with such owners.
IPTA was granted consultative status as a NGO to the IMO in 1997. As such, IPTA is wholly supportive of IMO as
the only organisation to determine the need for, introduce and monitor compliance with international maritime
legislation.
IPTA members have equal status within the association irrespective of the size of their fleets.
IPTA members are committed to the enhancement of maritime safety, the protection of the marine environment
and the reduction of atmospheric pollution from shipping.
IPTA serves as an industry representative on the main IMO committees and working groups dealing with issues
which affect the chemical and product tanker industries. IPTA was a significant contributor to the revision
process of MARPOL Annex II and remains actively involved in conveying an understanding of the revised
legislation and overseeing the implementation process.
IPTA liaises regularly with the United States Coastguard and representatives of the EU on issues related to the
chemical and product tanker industries.
IPTA serves on the Editorial Board of Equasis, a tool aimed at reducing substandard shipping.
IPTA cooperates with representatives of both the Oils and Fats and Chemical Industries, dealing with issues such
as shipping terms, ship inspections and trade regulatory matters.
IPTA is a shipping industry representative on the FOSFA International Oils and Fats and Technical Committees,
and acts as spokesperson for the Oils and Fats Committee’s Logistics Working Group.
IPTA deals with both the Chemical Distribution Institute (CDI) and the Oil Companies International Marine
Forum (OCIMF) on issues related to ship vetting. IPTA has participated in CDI-related matters since the inception
of the system, and continues to represent the rights of ship owners on the CDI Marine Executive Board, Training
and Accreditation Committee and Technical Committee.
IPTA provides regular speakers and panellists at trade and industry conferences and seminars on issues relating
to the chemical and product tanker trades.
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Society of International Gas Tanker and Terminal Operators -

SIGTTO
http://sigtto.re-invent.net/
The purpose of SIGTTO is to promote shipping and terminal operations for liquefied gases which are safe,
environmentally responsible and reliable. To fulfil this mission it will:
• proactively develop best operating practices and guidelines;
• sustain a learning environment by sharing lessons learned;
• promote training and development within the industry;
• foster mutually beneficial relationships with regulatory authorities and other stakeholders;
• conduct its business with professionalism and integrity.
The Birth of SIGTTO

Loss of confidence in the industry in one part of the world will undermine confidence elsewhere and threaten
the reputation of the industry as a whole. SIGTTO actively seeks to avoid this. In 1978, a number of prominent
companies in the field, recognising this common interest, set out to establish a framework of standards and best
practice for the then emerging liquefied natural gas (LNG) businesses. Realising no established industry body
fully encompassed the scope of their shared interests, they resolved to create one specifically for that purpose
- SIGTTO was formed as an international organisation through which all industry participants might share
experiences, address common problems and derive agreed criteria for best practices and acceptable standards.
SIGTTO Today
SIGTTO was incorporated as a non-profit making company, registered in Bermuda in October 1979. Formed
originally with 13 members, the Society has continued to grow and now has more than 150 members.
Collectively, SIGTTO’s membership represents nearly all the world’s LNG businesses and more than half of the
global LPG business. Granted observer status by the IMO in 1982, the society is now acknowledged as the
authoritative voice of the liquefied gas shipping and terminals industries. This position rests on its reputation
for impartiality and integrity in addressing operational and safety matters. The society remains engaged in
its original purpose: to specify and promote high standards and best practices among all industry members
throughout the world, and hence to maintain confidence in the safety of the liquefied gas industries and
maintain their acceptance, by society at large, as responsible industrial partners. The society does not seek to
promote the sectional interests of any of its members, nor will it compromise technical standards to secure
commercial advantage for any one party.
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Chemical Distribution Institute - CDI
www.cdi.org.uk
The CDI is a chemical industry organisation, incorporated under the law of the Netherlands as the Stichting
Chemical Distribution Institute (CDI) and operates as a non-profit making foundation.
CDI is managed by a board of directors consisting of seven individuals nominated by the participating chemical
companies. The board of directors establishes policy and is responsible for overall affairs of the foundation.
Individual executive boards are elected to oversee and direct the staff managing day to day activities for the
Marine, Terminals and Marine Packed Cargo Schemes.
Objectives
• To constantly improve the safety, security and quality performance of marine transportation and storage
for the chemical industry.
• Through cooperation with industry and centres of education, drive the development of industry best
practice in marine transportation and storage of chemical products.
• To provide information and advice on industry best practice and international legislation for marine
transportation and storage of chemical products to customers and stakeholders.
• To monitor current and future international legislation and provide experience, knowledge and advice
from the chemical industry to the legislators.
• To provide chemical companies with cost effective systems for risk assessment, thus assisting their
commitment to Responsible Care and the Code of Distribution Management Practice.
• To provide a single set of reliable and consistent inspection data which chemical companies can use with
confidence.
• To provide the chemical industry with an independent organisation for:
• training, qualification and accreditation of inspectors;
• development and maintenance of databases on which inspection and risk assessment information
can be promulgated.
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Cruise Lines International Association - CLIA
www.cruising.org
CLIA is the world’s largest cruise association and is dedicated to the promotion and growth of the cruise
industry. CLIA is composed of 26 of the major cruise lines serving North America and is an organisation that
operates pursuant to an agreement filed with the Federal Maritime Commission under the Shipping Act of 1984
and serves as a non-governmental consultative organisation to the IMO.
CLIA was formed in 1975 in response to a need for an association to promote the special benefits of cruising, and
in 2006 it merged with the International Council of Cruise Lines (ICCL), a sister entity created in 1990 dedicated
to participating in the regulatory and policy development process of the cruise industry. CLIA exists to promote
all measures that foster a safe, secure and healthy cruise ship environment; educate and train its travel agent
members; promote and explain the value, desirability and affordability of the cruise vacation experience.
Prior to its 2006 merger with ICCL, CLIA became the principal external marketing organisation for its member
lines in 1984 following the consolidation of several other industry organisations into CLIA. At the time of writing,
more than 16,000 travel agencies are affiliated with CLIA and display the CLIA seal (which identifies them as
authorities on selling cruise vacations). In addition, nearly 100 of the most innovative suppliers of goods and
services to the cruise industry make up CLIA’s Executive Partner program.
Travel Agency Support

CLIA is consistently rated the most effective travel association in terms of overall support of the travel agency
community, the value for the money, and the quality of its training programs. For example, CLIA’s most
comprehensive training is the Cruise Counsellor Certification Program, which requires agents to successfully
complete a number of compulsory training courses and exams, attend cruise conferences and conduct ship
inspections, among other things. CLIA also offers Management and Sales Institutes, classroom training and
training videos.
Industry Responsibility
CLIA is committed to focusing on industry issues relating to safety, public health, environmental responsibility,
security, medical facilities, passenger protection and legislative activities.
CLIA is dedicated to:
• ensuring that the cruise industry provides a safe, healthy, secure shipboard environment for both
passengers and crew;
• minimizing the environmental impact of its vessel operations on the ocean, marine life and destinations;
• adhering to regulatory initiatives and leading the effort to improve maritime policies and procedures;
• creating a regulatory environment that will foster the continued growth of the industry;
• delivering a reliable, affordable and enjoyable cruise experience.
Policy and Regulation

CLIA participates in the regulatory and policy development process, promoting all measures that foster a safe,
secure and healthy cruise ship environment and serves as a non-governmental consultative organisation to
the IMO.
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Under the direction of the chief executives of its member lines, CLIA advocates industry positions to key
domestic and international regulatory organisations, policymakers and other industry partners. CLIA actively
monitors international shipping policy and develops recommendations to its membership on a wide variety
of issues.
Economic Benefits
In 2009, the cruise industry continued to experience growth and its contribution to the U.S. economy. Direct
purchases by the cruise lines and their passengers totalled $17.15 billion. This spending resulted in $35.11 billion
in total impact. Spending generated 314,000 jobs paying $14.2 billion in wages to American workers.
In 2008, 13.05 million people worldwide took cruise vacations, a four per cent increase over the previous year.
It had the following impact on the economy:
• total economic benefit of the cruise industry in the United States: $35.11 billion;
• direct spending of the cruise lines and passengers on U.S. goods and services: $17.15 billion;
• total jobs generated by these expenditures: 314,000;
• total wages generated for U.S. employees: $14.2 billion.
Administration
CLIA is administered by a Ft. Lauderdale-based headquarters staff and dedicated professionals in a Washington
DC satellite office, as well as a training team positioned throughout the United States. This group collectively
carries out the objectives and activities of the collective member lines. Principals from the member lines
make up the board of directors, headed by an elected chairman who serves a two-year term. A number of
subcommittees serve as steering committees and liaison with CLIA staff on topics such as marketing, safety,
environment, public relations, human resource issues and technical advancements – among many others.
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Lloyd’s of London
The Underwriting Floor at Lloyd’s of London – www.lloyds.com/Lloyds/About-Lloyds
What is Lloyd’s?
Unlike most other insurance brands, Lloyd’s is not a company; it’s a market where members join together as
syndicates to insure and reinsure risk.
Lloyd’s is the world’s leading specialist insurance market, conducting business in over 200 countries and
territories worldwide – and is often the first to insure new, unusual or complex risks. Lloyd’s bring together an
outstanding concentration of specialist expertise and talent, backed by excellent financial ratings which cover
the whole market.
The Lloyd’s market

Lloyd’s is the world’s leading specialist insurance market, which offers an unrivalled concentration of specialist
underwriting expertise and talent.
The market is home to over 50 managing agents and over 80 syndicates, which offer an unrivalled concentration
of specialist underwriting expertise and talent.
Lloyd’s is the world’s best known - but probably least understood - insurance brand. This is because Lloyd’s
is not an insurance company but a society of members, both corporate and individual, who underwrite in
syndicates on whose behalf professional underwriters accept risk. Supporting capital is provided by investment
institutions, specialist investors, international insurance companies and individuals.
Lloyd’s brokers bring business to the market. The risks placed with underwriters originate from clients and other
brokers and intermediaries all over the world. Together, the syndicates underwriting at Lloyd’s form one of the
world’s largest commercial insurers and a leading reinsurer.
The market structure encourages innovation, speed and better value, making it attractive to policyholders and
participants alike. Immediate access to decision-makers means that decisions on whether a risk can be placed
are made quickly, enabling the broker to provide fast, good value solutions.
The Corporation
The Corporation of Lloyd’s oversees the market, establishing standards and providing services to support its
activities.
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It also manages Lloyd’s worldwide licences. The Corporation’s Executive Team exercises the day-to-day powers
and functions of the Council and the Franchise Board. The Corporation (including its subsidiaries) had 886
employees worldwide, as at 31 December, 2009.
As well as providing cost-effective services to aid the smooth running of the market, the Corporation strives to
raise the standards and improve performance. The Corporation’s work is split into two main areas:
1. Overall risk and performance management of the market.
Setting the level of capital Lloyd’s members must provide to support their proposed underwriting.
Overseeing the market’s business activities by operating a minimum standards framework and monitoring
the performance of syndicates in areas such as exposure management, cycle management, claims
management and operational risk management.
Working with the managing agents of underperforming syndicates to improve performance, intervening
if stronger action is required.
Managing financial and regulatory reporting for the market, including the production of its results and the
Financial Services Authority (FSA) return.
2. Maintaining and developing the attractiveness of the market’s capital providers, distributors
and clients while preserving Lloyd’s diversity and London based business model.
Managing and developing Lloyd’s global network of licences and the Lloyd’s brand.
Taking action in the long-term interests of the market.
Insurance
Insurance is the main way that businesses and individuals reduce the financial impact of a risk occurring.
The Basics of Insurance

While an insurance policy does not remove a risk, it does provide the policyholder with some security should
the worst happen.
A business that provides insurance – known as the ‘insurer’ – agrees to take on the risk on behalf of the business
or individual concerned – known as the ‘insured’. It does this by providing the insured with an insurance
contract, sometimes called a ‘policy’. In this contract, the insurer will state what risks it has agreed to insure
against and how much it will pay if the risk happens so that the insured is put back into the same position as if
the risk had not happened.
The policy may also include a list of things that are not insured against, known as ‘exclusions’. So, for example,
if someone buys insurance in case their car is stolen, the insurance may have an exclusion if the insured was
careless and left the keys in the car, making it easy for the car to be stolen. In return, the insurer receives a fee
from the insured - the insurance ‘premium’.
The insurer will collect premiums on a number of policies and pool these funds, which it then invests to make
the ‘pot of money’ grow. Should any insured person make a claim on a policy, the insurer will pay out on
that claim from the pool of funds. The insurer is in business to make a profit and will be hoping that the total
premiums it receives in any one year, together with any money it can make by investing the money, will exceed
the total claims it has to pay out.
Insurers in the UK and in most countries are very closely supervised to make sure that they keep enough
money to pay all their claims. To be included in an insurance policy, a risk must be capable of being measured
in monetary terms. It must also be something that is not certain to happen. So, to take a very simple example,
you cannot insure against the risk that the sun is going to set. That is a certainly going to happen and it is not
something for which you can buy insurance. Also, the insured person must have a direct interest in any loss –
you cannot take out life insurance on the life of a complete stranger, for example.
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The insurer will look at all the circumstances surrounding a risk before deciding whether or not to provide
insurance cover against it, and this whole process is called ‘underwriting’. Underwriters are the specialists
employed by the insurer to carry out this task and they will want to understand a number of things about
the risk such as how likely it is to happen, steps already being taken to reduce the risk and the financial
consequences of it happening.
The underwriters at Lloyd’s are among the best in the world. The risks that they cover are usually brought into
the Lloyd’s market by brokers, and the underwriters and brokers together will use their considerable knowledge
and expertise to agree the right insurance cover, at the right price and on the right terms.
What is Risk? How Should It Be Managed?

Running a business of any kind involves a certain amount of risk. There is a risk that your premises will be
damaged in a fire. There is a risk that one of your employees will trip and have an accident. There is a risk that
the goods you export will be left stuck on a dockside somewhere due to a dock workers’ strike.
Should any of these risks happen, they will have a financial impact on your business but they could also have
wider implications. Take a factory fire, for instance. Not only would there be the cost of repairing any damage
done by the fire, but what has happened to your orders while the repairs were being made? Perhaps one of your
competitors has taken advantage of the situation and stolen some of your regular customers.
Risks are inevitable but they are also manageable. Any business owner takes steps to manage the impact of a
risk. In the example of fire risk, this means installing smoke alarms and sprinkler systems as well as training staff
to spot and prevent fire hazards.
Business owners will also look to reduce the financial consequences of a risk happening, and this is where
insurance comes in. A good insurance policy will cover the business for many of the costs they have to meet
as a result of the risk occurring. In effect, the business is looking to transfer the risk away from themselves and
onto someone else for the payment of a fee.
And the need to transfer risk is not only relevant to businesses. It is also relevant to individuals. For example, as
individuals, there is a risk that we may damage our cars in an accident. There is also a risk that we will become unwell
and need medical treatment, or that our houses will get damaged in a storm. Of course, we hope these things will
never happen and, fortunately, most of the time it never does. But when things go wrong it can be expensive and so
for many of these eventualities insurance is there to take the financial risk on our behalf.
This transfer of risk is the basis of all insurance, and is something that Lloyd’s has been doing for more than 300 years.
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The Baltic Exchange
www.balticexchange.com
The history of the Baltic Exchange spans more than 250 years and traces its origins back to a humble coffee
house - the traditional meeting place of merchants and sea captains - in the City of London.
The Baltic Market

Baltic Exchange members are at the heart of world trade, arranging for the ocean transportation of industrial
bulk commodities from producer to end user. The bulk freight market relies on the co-operation of shipbrokers,
ship owners and charterers to ensure the free flow of trade.
Baltic Exchange shipbrokers undertake to abide by a code of business conduct based on the motto - Our Word
Our Bond. Those who breach the code are disciplined or expelled.
With a total membership of nearly 600 companies and over 2000 individuals (October 2010), approximately
400 Baltic member companies are based in the UK. The Baltic also has a growing membership base in the USA,
Europe and the Far East. The Baltic Exchange is headquartered in London with a regional office in Singapore.
Membership of the Baltic Exchange is not just limited to shipbrokers, charterers and ship owners, but also
includes financial institutions, maritime lawyers, educators, insurers and related associations.
The Baltic Exchange is a company limited by shares and owned by its shareholders, most of whom are member
companies. The Baltic is governed by a board of between 12 and 15 directors, with up to 12 elected by
shareholders and up to three elected by non-shareholding members.
The Freight Market

The freight market is huge and complex with ship owners, operators and charterers at the mercy of fluctuating
freight rates. Thousands of events can have an impact on the cost of sea transport and anyone moving bulk
commodities operates in an extremely volatile environment.
Seaborne trade is vital in enabling the global economy to function. The world relies on the merchant fleet to
carry every conceivable type of product. From grain to crude oil, iron ore to chemicals, the latest UN figures
show that more than 8.17 billion tonnes of trade was transported by sea in 2008 (Source UNCTAD).
World trade is dependent upon the availability of adequate shipping capacity. At the beginning of 2009, the
global merchant fleet size stood at 1.19 billion dwt.
The Cargoes
Vast amounts of fuels, foodstuffs and fertilisers, construction materials and other raw goods are moved by sea. Half
of these cargoes are energy related – oil, coal and gas. Dry cargo accounts for around two thirds of seaborne trade
volumes. Container traffic is just over 10 per cent by weight, but much higher in terms of value.
The growth of the world economy has seen a huge growth in the volume of seaborne cargo over the past 30 years.
• 5.4 billion tonnes of dry cargo was moved by sea in 2008.

• The Baltic Dry Index hit a record high of 11,793 points on 20 May 2008.
• By 5 December 2008 the Baltic Dry Index had collapsed to 663 points.
• Japan, Greece, Germany, China and Norway control over 50 per cent of the world’s merchant fleet.
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Why Freight Rates Fluctuate

The freight market is subject to a wide range of external variables, but it is fundamentally driven by the following
factors:
• Fleet supply: how many different types of ships are available? How many vessels are being delivered and
how many are being scrapped?
• Commodity demand: what are the levels of industrial production? Has the grain harvest been successful?
Are the power stations importing more coal? How is the steel industry performing?
• Seasonal pressures: the weather has a big impact on the shipping markets from the size of harvests to ice
in ports and river levels.
• Bunker prices: with bunker fuel accounting for between one quarter and one third of the cost of running
a vessel, oil price movements directly affect ship owners.
• Choke points: this factor can particularly affect tankers with almost half of the world’s oil passing through
a handful of relatively narrow shipping lanes. These points include the straits of Hormuz and Malacca, the
Suez and Panama canals, the Bosporus and other important channels whose closure – either from conflict,
terrorist attack or a collision in the overcrowded shipping lanes - would change the entire world’s supply
patterns.
• Market sentiment: because perhaps as little as half of the demand side is known in a timely fashion, market
opinion affects the freight market just as much as the actual supply and demand of ships and cargoes.
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International Organization for Standardization - ISO
www.iso.org
About ISO
ISO is the world’s largest developer and publisher of international standards. It is a network of the national
standards institutes of 162 countries, one member per country, with a Central Secretariat that coordinates the
system in Geneva, Switzerland,.
ISO is an NGO that forms a bridge between the public and private sectors. On one hand, many of its member
institutes are part of the governmental structure of their countries, or are mandated by their government. On
the other hand, other members have their roots uniquely in the private sector, having been set up by national
partnerships of industry associations.
Therefore, ISO enables a consensus to be reached on solutions that meet both the requirements of business
and the broader needs of society.
ISO’s name
ISO would have different acronyms in different languages (IOS in English, OIN in French for Organisation
internationale de normalisation), so its founders decided to give it a short, all-purpose name. They chose ISO,
derived from the Greek isos, meaning ‘equal’. Whatever the country, whatever the language, the short form of
the organisation’s name is always ISO
Why Standards Matter

Standards make an enormous and positive contribution to most aspects of our lives.
Standards ensure desirable characteristics of products and services such as quality, environmental friendliness,
safety, reliability, efficiency and interchangeability - and at an economical cost.
When products and services meet our expectations, we tend to take this for granted and be unaware of the
role of standards. However, when standards are absent, we soon notice. We soon care when products turn out
to be of poor quality, do not fit, are incompatible with equipment that we already have, or are unreliable or
dangerous.
When products, systems, machinery and devices work well and safely, it is often because they meet standards
and the organisation responsible for many thousands of the standards which benefit the world is ISO.
When standards are absent, we soon notice.
What Standards Do
ISO standards:
• make the development, manufacturing and supply of products and services more efficient, safer and
cleaner;
• facilitate trade between countries and make it fairer;
• provide governments with a technical base for health, safety and environmental legislation, and
conformity assessment;
• share technological advances and good management practice;
• disseminate innovation;
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• safeguard consumers, and users in general, of products and services;

• make life simpler by providing solutions to common problems.
The Difference between ISO 9001 and ISO 14001

The vast majority of ISO standards are highly specific to a particular product, material, or process. However, ISO
9001 (quality) and ISO 14001 (environment) are generic management system standards. ‘Generic’ means that
the same standard can be applied to any organisation, large or small, whatever its product or service, in any
sector of activity, and whether it is a business enterprise, a public administration, or a government department.
ISO 9001 contains a generic set of requirements for implementing a quality management system and ISO 14001
for an environmental management system.
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Shipbuilders and Shiprepairers Association - SSA
www.ssa.org.uk
SSA provides support to the marine industry across the spectrum of business issues from policy on best
practice, and regulation affecting defence, renewables, offshore wind energy, repair, innovation, market
research, training, health, safety and environmental issues.
The association supports the UK marine industry through five key services referred to as the SSA Pillars:
SSA, the fastest growing marine trade association, with membership from across the UK, includes manufacturers
with a 99 per cent share of UK ship production, plus equipment suppliers, research institutes, developers,
contractors, finance and insurance companies and consultants. This combined strength of our membership
makes SSA a significant and influential marine network.
SSA supports the marine industry with the aim of improving business opportunity and performance, providing
access to innovation and research grants, industry-relevant events and exhibitions, creating valuable networking
opportunities and raising company profiles.
SSA is informed about, and where needed seeks to influence, national, EU and international policy and provides
a comprehensive set of services to support members’ requirements. SSA also organises high-profile industry
events that members can attend. SSA exists to:
• promote the marine industry;
• Liaise with government, authorities and agencies;
• provide technical and engineering support;.
• provide strategy, advice and support on health, safety and environmental issues.
• assist with training and recruitment;
• foster business development;
• weekly update on industry matters;
• improve sourcing.
In addition, the lobbying activities undertaken by SSA help create a suitable legal framework within which
members can successfully develop their businesses.
The Association works alongside the Ministry of Defence (MOD) dealing with their naval procurement and
research programmes, the Department of Energy and Climate Change (DECC), which is taking forward the UK
Renewable Energy Strategy and the Department for Business Innovation and Skills (BIS), which influences the
sector’s development through its facilitation of the Marine Industries Leadership Council (MILC), and innovation,
through its funding of the Technology Strategy Board (TSB) and Research Councils.
SSA is a member of the Community of European Shipyard Association (CESA), European Wind Energy
Association (EWEA), marine partners with the Institute of Marine Engineers (IMarEST), and corporate partners
with the Royal Institution of Naval Architects (RINA).
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Society of Maritime Industries- SMI
SMI is the voice of the UK’s maritime engineering and business sector promoting and supporting companies
which build, refit and modernise ships, supplying equipment and services for all types of commercial and naval
ships, ports and terminals infrastructure, offshore oil and gas, maritime security and safety, marine science, and
technology and marine renewable energy.
Its vision is to be the trade association of choice for UK companies engaged in the maritime industries.
Companies in the Society’s membership have world-class capabilities enabling them to compete in global
markets. Many companies enjoy the technological synergies which come from links with the aerospace and
electronics industries thereby ensuring innovative solutions are available to the sector’s customers to meet the
evermore stringent environmental and safety regime in which the modern industry operates.
The Society is owned by its members and works to represent their interests in four significant ways:
• promoting and supporting the domestic and export business of members;
• improving the business environment for members both in the UK and Europe;
• facilitating communication and networking across all our five sectors;
• providing marketing and other services to member companies.
SMI delivers its services through six constituent associations under the Society’s umbrella:
• Association of British Offshore Industries (ABOI);
• Association of Marine Scientific Industries (AMSI);
• British Marine Equipment Association (BMEA);
• British Naval Equipment Association (BNEA);
• Maritime Security and Safety Group (MSSG);
• Ports and Terminals Group (PTG).
SMI undertakes a wide range of activities all of which provide extensive and unparalleled business networking
opportunities for member companies of all sizes through international, national and regional events, acting
as a recognised source of information on the sector for government and the City Members receive a regular
newsletter providing them with up to the minute information on a variety of issues together with a weekly alert
from this web site on all new material added in the previous seven days. Examples of SMI’s activities include:
• organisation of national pavilions at overseas trade fairs including those associated with UK Trade and
Investment;
• briefing overseas customers on member company capability through seminars, trade missions and ‘meet
the buyer’ events;.
• regular seminars on market opportunities and regulatory matters;
• training workshops imparting best practice on a wide range of topics;
• providing the basis for collaborative R&D projects for funding from the European Commission, including
Framework 7 through Waterborne.
Society’s Board and Management

SMI is governed by a representative Board elected from across its membership. To ensure the full interests of
members are reflected in depth, the individual associations elect their own Councils from companies within
their specific sectors. The board and councils direct policy on a wide range of issues and initiate a programme
of activities designed to benefit all members.
The Society is managed by a chief executive and a dedicated team consisting of the association directors, who
are experts in their particular sectors, and supporting staff.
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Institute of Marine Engineering, Science and Technology -
IMarEST
www.imarest.org
Our vision is a world where marine resources and activities are sustained, managed and developed for the
benefit of humanity.
Established in London in 1889, IMarEST is the leading international membership body and learned society for
marine professionals, with over 15,000 members worldwide.
The IMarEST has a strong international presence with an extensive marine network of 50 international
branches, affiliations with major marine societies around the world, representation on the key marine technical
committees and non-governmental status at the IMO.
The Nautical Institute - NI
www.nautinst.org
NI is the international professional body for maritime professionals providing a wide range of services to enhance the
professional standing and knowledge of members who are drawn from all sectors of the maritime world.
The work of the Institute is available to the whole industry to help improve the safety and efficiency of shipping.
The monthly journal Seaways, books, web services and projects help to provide real solutions to problems
facing the industry and provide mariners’ input to decision makers internationally and nationally.
NI aim is to provide the strongest possible professional focus, dedicated to improving standards of those in
control of seagoing craft, while maintaining the Institute as an international centre of nautical excellence.
The formation of NI branches and other groupings is actively encouraged.
The Institute is a thriving international professional body for qualified mariners – over 40 branches worldwide
and more than 7,000 members in over 110 countries.
NI membership is open to all nationalities - in grades appropriate to qualifications. The benefits of joining the
Institute are many and include professional recognition, receipt of regular and up to date information and,
through Seaways, discounts are available on NI publications, conferences, and seminars.
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Royal Institution of Naval Architects - RINA
www.rina.org.uk
RINA is an internationally renowned professional institution whose members are involved at all levels in the
design, construction, maintenance and operation of marine vessels and structures. Members of RINA are widely
represented in industry, universities and colleges, and maritime organisations in over 90 countries
Founded in 1860 in London to advance the art and science of ship design, the Royal Institution of Naval
Architects (RINA) is a world renowned and highly respected international professional institution and learned
society whose members are involved at all levels in the design, construction, maintenance and operation of all
marine vessels and structures. RINA has members in over 90 countries, and is widely represented in industry,
universities and colleges, and maritime organisations worldwide.
Membership
Membership of RINA and the right to use the letters FRINA, MRINA AMRINA or Assoc(RINA) after a member’s
name demonstrates the achievement of internationally recognised standards of professional competence, and
the commitment to professional integrity and high standards of practice governed by the Institution’s Code
of Professional Conduct. There are classes of RINA membership to suit all those involved or interested in the
design, construction, maintenance and operation of all types of marine vessels and structures. The classes of
membership reflect the education, training, experience and professional responsibility achieved.
Membership of RINA is international, reflecting the global nature of the maritime industry, and provides access
to a wide range of benefits and services. ...
Divisions and Branches

RINA has divisions and branches worldwide, which organise professional, technical and social events for
the benefit of local members and provide an opportunity to meet and exchange views with other industry
professionals. Members of the Institution are automatically members of their national division and local branch,
and are kept informed of events, many of which are open to non-members.
Publications
RINA publishes a wide range of technical journals, conference proceedings, transactions, and books, covering all
aspects of naval architecture and the maritime industry. Members receive RINA publications free or at a reduced rate.
Events
RINA organises an extensive programme of international conferences, workshops and training courses, covering
a broad range of experience and opinion on research, development and operation on all aspects of the design,
construction, maintenance and operation of all marine vessels and structures. Members enjoy preferential rates
to all RINA events.
Technical Forum
The discussion section of the Technical Forum provide an online opportunity for all members of the international
maritime community to seek information, exchanges views and discuss matters of common technical and
professional interest in a wide range of sector and activity topics.
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Careers
The Institution provides guidance and advice on careers in naval architecture, academic and technical
courses, initial professional development leading to corporate membership of the Institution, and continuing
professional development. Details of appointments and work experience, both wanted and provided, are also
posted on the RINA website.
International Links
Through its international membership, links with other national professional societies and membership of
international organisations, RINA is at the hub of a worldwide network of professionals in the global maritime industry.
Other Organisations
In this section we have looked at 23 different organisations - all provide some assistance to the superintendent in
his or her day to day role. However, the list is by no means exhaustive and there are a myriad of other organisations,
both maritime and more general, that the superintendent needs to consider when seeking information.
Sources of Information
As a superintendent you will be paid for your knowledge and skills.
Your knowledge will be that proportion of what you have learnt throughout your life that you can remember
at the time you need it.
Skills (otherwise known as ‘expertise’) are normally built up over the years, but there is no reason why a new skill
cannot be learnt in order for you to provide a particular service to an owner.
You may not have that particular skill at the time but it is perfectly feasible for you to research the requirement
one day and practice it the next, before demonstrating it to the owner on the third day. The result will be an
increase in your knowledge and skills.
Until recently, access to information to build up knowledge and skills was primarily provided by:
• books – purchased, and from libraries;
• magazines and periodicals relevant to the subject to be studied;
• academic and technically-focused training courses;
• wisdom available from others. as well as fellow workers, supervisors, etc.;
• television and radio.
With the exception of television and radio, these same information sources would have been available to our
superintendent in ancient Athens.
In the late 20th Century, the arrival of the internet totally changed our access to knowledge. Now there is the
infinite source of information available from the internet. The word infinite is used intentionally. The amount of
information available is increasing at an ever-increasing rate and knows no bounds.
In this infinite pool of data, there are three general categories of information:
• data that is correct but irrelevant to the question you need answering;
• data that is rubbish or wrong;
• data that is correct and applicable to your particular needs.
The greatest single skill you need to develop for success in your role as a superintendent is how to separate the
information you need from the morass of other wrong or irrelevant data available on the internet.
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Google
By the time you are working on this module it could be assumed that you actually know how to search the
web for information, but there are still a number of us who are uncomfortable with accessing the internet and
filtering the results.
This module has been written in the middle of 2011. At the time of writing, there are well over one hundred search
engines listed in Wikipedia. Many are dedicated to specific purposes such as house finding, job finding etc. For general
purposes, there is a hierarchy of search engines of which Google is currently top of the pile (first released in 1998).
To reach Google in the simplest way, simply type ‘google’ into the URL bar and then ‘enter’.
From then on you need to get the maximum practice you can to refine your search capabilities within Google.
Probably the best place to go next is www.googleguide.com. This is an on-line tutorial that will help you to
develop your Google skills.
A powerful little technique in Google is to start big and then search inside the list.
By playing with the order of the words and searching within longer lists you can refine the search to give you a
meaningful list of links to look into.
Metasearch and Other Engines

Metasearch engines will use a number of different search engines to look for your results. At the time of writing
this module Wikipedia lists 20 different metasearch engines. These search engines use different algorithms and
present the information in different ways to the traditional Google listing and they are worth some investigation
to find the one that works best for you in a given situation.
In the future Google may give way to another search engine as the one pre-eminent in the business. For the
moment you should concentrate on getting it to ‘sing’ for you. If you can master Google there is very little of
interest in the web that you cannot find.
Broken Links
Regularly you will find that a Google search produces results where the page may be missing or the link to it
broken. In this case, you should see whether the word Cached is included in the result on the Google page.
Clicking on the word Cached will take you to the last page Google got for this site that it stored in memory. It
may be out of date, but will let you know what was on the internet before it was removed or the link was broken.
Mobile Phones
Most mobile phones now give you access to Google search. Once you have mastered the techniques, it is
very useful to have the ability to search the web on the move. The shipping forecast is a good example of a
mandatory mobile phone link (however suspect is the information displayed!).
Wikipedia
A recent academic project investigated the accuracy of Wikipedia. Despite rumours in the press as to accuracy
of data, they found that the results were as accurate as any other sources of equivalent data (in this case they
were looking at effects and side effects of prescription drugs). In simple terms, they could not find major errors
in the data contained in Wikipedia. However they did find significant examples of omission of data. Whether this
was intentional or unintentional they were not able to determine.
This result accords with the experience of the author. Much of the information you find in Wikipedia will almost
certainly be correct. It will give you a very good overview of the topic you are researching, but bear in mind
it will certainly not be complete and may be missing significant relevant data. Use the results as part of your
answer but search wider to ensure you have a complete picture.
Remember that when making a decision in order to make the right decision, you need the truth, the whole
truth and nothing but the truth!.
The information you need is out there somewhere - the challenge is finding it!
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6. Shipping Company Organisation
Learning Outcomes
• have a reasonable overview of the structure of a typical ship management operation;
• understand the roles and functions of the different individuals within the organisation.
Introduction
There is not really any such thing as a typical shipping company. There are numerous companies that operate on what
the West would consider traditional shipping company lines, however, this does not mean that they have a monopoly
on this being the only way. Some companies are huge multi-national organisations that trade world-wide with
hundreds of ships and yet some are owner operated singletons working in relatively contained areas.
In considering this part of the module we will look at what might be considered a traditional Western Europe
management structure.
Ship Owning
In traditional shipping circles, an owner would start with a small single vessel, probably tramping (picking up
any type of cargo that could reasonably be carried). In this way the owner would have direct knowledge and
control of both cost and, to some extent, income. Today, it is very difficult to identify exactly whom an owner
might be. Whilst an individual ship will have a Certificate of Registry which will give the name of the owning
entity, this in turn might be owned by other entities and ultimately the beneficial owner(s) might be impossible
to identify.
As fleets have become larger, the financial markets have kept pace offering ever more complex financing
arrangements meaning that the actual ‘ownership’ might ultimately end up with a bank somewhere.
However, at the simplest level, the owner is usually a person, company or state organisation (national fleet).
Ship Management
Just owning a ship does not mean that the owning entity wishes to operate or run that ship. Indeed in a world
where liability culture prevails it can be important for an owner to be divorced from the day to day management
of the ship, exposing a need for ship management whether as an owning entity or as a third party.
Traditional management of any company can essentially be broken down into just three main functions:
1. finance;
2. operations (including technical);
3. marketing.
These three functions are equally important within the overall command and control structure of any company
- ship management companies are no different. Frequently, there is a dynamic tension between the three
main departmental groupings. Operations are frustrated because marketing keeps on generating business
and yet finance will not provide adequate resources to adequately satisfy the demand. Finance is frustrated by
marketing because they are generating business with slim margins and because operations are not adequately
controlling costs. Marketing is frustrated because operations do not deliver to the client that which marketing
sells and because finance will not give them the budget to promote their services in areas where the margins
are higher.
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Balancing all of these internal conflicts becomes the role of the chief executive/chairman/managing director,
for example, the person at the very top of the day to day organisational tree, balancing the conflicting interests
such that the company remain profitable, efficient and accident free.
Each of the three functions can be broken down into discrete elements that are applicable to the management
of ships. An example of this is as follows:
Finance
Capital raising
Capital investment
Cash control
Foreign exchange
Management accounting
Financial accounting
Ship accounting
Voyage accounting
Owner’s accounting
Credit control
Corporate legal
Insurance
Payroll
Budgeting
Purchasing
Taxation
Operations
Personnel
o Recruitment
o Training
o Personnel development
o Unions
o Welfare
o Employee contracts
Technical
o Stores
o Spares
o Repairs
o Dry docking
o Classification
o Bunkers
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Marketing
Strategy
Market Research
Public relations
Advertising and promotion
Freight sales
• Bulk markets
• Chartering
• Brokers
• Voyage fixtures
• Post fixture
• Liner sales
• Sales agents
In addition to these different functions there will also be aspects such as IT and buildings/business premises that
will also form part of the ship management operation and which might fall under one or more of the above
departments.
The above list is by no means exhaustive but it serves to give an indication as to the degree of complexity of a
ship management operation.
Essential Requirements for Good Ship Management

In order to put in place an organisation as briefly described above and to operate successfully, it is necessary for
the company to have developed systems, together with logistical support, in order to adequately deliver quality
ship management services. Some of the obviously desirable characteristics are:
• good physical communications with easy access to a well connected airport;
• located in a country with a stable political and economic base;
• strong English language base (English being the international language of the sea);
• excellent telecommunications facilities at reasonable cost;
• skilled and relatively available work force with a bias toward marine and computer skills;
• developed marine support infrastructure for finance, insurance and legal assistance;
• acceptable corporate tax regime;
• established, comprehensible and reliable legal system with reasonable employment legislation;
• positive government support, both national and local, for shipping;
• adequate office space with good internal travel connections;
• good religious and racial tolerance;
• reasonable standard of living (housing, schools, local tax, cost of living, climate, health service).
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Key Personnel in Management
Chief Executive/Managing Director/Chairman

Irrespective of title, there has to be somebody in charge. This person’s primary role will be to:
• control the companies direction and profitability;
• develop the company’s strategic plan;
• lead the company forwards towards achieving that plan;
• be accountable to the owners/board for the performance of the company against the plan.
Key responsibilities will include:
• primary focus for leadership and direction;
• implementation of agreed strategies and policies;
• preparation and implementation of a business plan;
• monitoring of performance against the business plan;
• reporting to the owners/board on progress against the strategic plan and business plan;
• day to day oversight of the operations of the organisation;
• motivate the management team to identify with, and support, the strategic and business plans;
• monitor the use of resources and adapt the business plan as necessary;
• monitor compliance of the management team and the company with all relevant legal and ethical
directives;
• develop the companies culture and values to fit and complement the strategic and business plans;
• manage company risk.
In achieving this it can sometime appear that the upper most levels of management are somewhat detached
from those below. Whilst sometimes this might actually be the case, often at this level the chief executive is
attempting to balance numerous conflicting issues and, in doing so, it is important a degree of impartiality is
maintained. Equally the chief executive is often privy to sensitive information and needs to be careful about
how this information is used.
Finance Director
The finance director is responsible for maintaining the financial health of the operation. Often this role will also
include relationship management with shareholders/investors and banks. Frequently, as one would expect, the
role is taken by someone from an accounting background.
The role will involve management of resources to achieve: objectives set within the company business plan;
oversight of budgets; management of investments and associated risk; cash management and cash flow;
procurement of both funds and capital assets; and settlement of all company financial obligations such as
marine mortgages, insurance, and payroll.
Depending upon the exact company structure, the finance director may be responsible for personnel/human
resources departments and training.
Technical Director
As the title suggests, the technical director will provide technical input to the business plan and take
responsibility for all technical aspects of the ship management operation operation. This will include:
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responsibility for all technical budgets; operational efficiency; routine and contingency maintenance; spare
parts inventory; ordering and purchasing of technical equipment (including ships themselves); major supplier
and contract negotiation; and primary resource for technical expertise in the event of emergencies or disasters.
Reporting to the technical director will be the technical manager. This role, whilst similar in many ways to that
of the technical director, will be more directly in contact with the daily technical issues affecting the managed
vessels. Normally by delegation to the technical superintendents, the technical manager will control such
matters as:
• maintenance of the hull structure, machinery, systems, mooring equipment, navigational and radio
equipment, and safety equipment;
• keeping all necessary technical records and analysis of same for performance;
• preparation of insurance claims;
• ship repair and docking specifications;
Often the technical director and technical manager are individuals who have progressed in management from
technical superintendents.
Marketing Director
This is the primary role is the development, promotion and maintenance of the company image (or brand) in
the market place. It will normally involve representing the company to both existing and potential clients. The
role will include market research, customer relationship management (CRM), sales targets and budgets, press
and media relations, preparation and presentation of marketing material, and monitoring competitor activity.
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Other Key Positions
Personnel Director/Manager
Even with modern day technical innovation, shipping remains a relatively labour intensive operation requiring
competent ship’s crew for all operational ships. Regulation stimulates a minimum manning level and, if crewing
levels are not met the ship will not (should not) sail.
The main activities of the senior personnel individual will include:
• recruitment and retention of appropriate crew;
• compliance with international and flag state employment and welfare regulations;
• employee performance evaluation and records;
• industrial and employee relations;
• employee motivation and morale;
• salary management;
• disciplinary matters.
Training Director/Manager
Shipping is also a relatively technically-biased occupation, particularly at officer level. In larger organisations, it is
often necessary to have an individual responsible for the training and competence of the ships’ crews.
The main activities of this role will include:
• keeping training programs current;
• development of appropriate training programs;
• evaluation of training programs;
• maintain awareness of current industry issues and their impact on training needs;
• maintenance and evaluation of training records;
• input to budgets in respect of training needs.
Safety Manager/Designated Person Ashore

The key role of the safety director/manager is to ensure that all personnel understand the need for, and comply
with, the desire for safe operations. This includes health, safety and environmental protection.
One very specific function can be that of the Designated Person Ashore (DPA) in compliance with the ISM.
This requires that there is a very clear and direct line of communication between ships at the highest level of
management. The detailed roles and responsibilities of the DPA are covered later in the course under the ISM.
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7. Role of the Superintendent
Learning Outcomes
• understand the role of the superintendent;
• appreciate the main roles and responsibilities of a superintendent.
Introduction
Within either a shipping company or a ship management company, superintendents are generally divided into
two groups:
1. engineering superintendents;
2. marine superintendents (sometime referred to as nautical superintendents).
This division is primarily a function of history where ships have divided along traditional deck and engineering
departmental lines. These days there is tremendous crossover between the different disciplines and it is not
unusual for there to be only one superintendent for the ship covering all duties.
The traditional recruitment route for superintendents in shipping was for experienced captains and chief
engineers to come ashore and move into a management role. However, as a result of a number of policy choices
in the late 1970’s, and throughout most of the 1980’s, the traditional route has dried up and companies have had
to adapt in order to maintain appropriate skill levels. This has meant a shift away from bringing seafarers ashore
and more in line with other industries where capable young graduates are taken on as part of a management
training program and brought through a system of training in order to fulfil the role of superintendent.
Roles and Responsibilities

Irrespective of the departmental discipline, the superintendent has a job function to fulfil and generally this will
involve some, or all of the following:
• performance monitoring of the ship and systems in terms of maintenance and operational efficiency;
• performance monitoring of consumption for spares, bunkers, lubricating oil, water and vitals;
• performance monitoring of the crew, both in terms of competence and morale;
• preparation of operational budgets and evaluation of actual expenditure against budget;
• routine reporting both to and from the ship, including reporting to management on performance and
budgets;
• oversight of the survey and inspection requirements including flag, classification and port state;
• maintenance of up to date technical and operational knowledge generally;
• maintenance of knowledge of own ship’s status as the company shore-based focal point of particular ship
knowledge;
• communication with the crew and acting as the primary interface between crew on board and
management ashore;
• evaluation and reporting on crew performance;
• preparation of routine docking specifications;
• internal audits and preparation for external audits;
• compliance with all class, flag state or any other standards and requirements;
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• keep down costs and optimize the efficiency of the ships;

• sourcing, and possibly ordering, spare parts and making sure that they arrive when needed;
• plan all maintenance activities and liaise with all operational staff and sub-contractors in regards to
planning and implementation of all required tasks;
• supervise work that needs to be carried out;
• proper documentation and reporting;
• preparation of management information.
Ship Visits
Often a superintendent will be assigned to more than one vessel to look after. Depending upon the size of
company and the management ethos, the usual number of vessels any one superintendent will look after is
between four and six.
In fulfilling the job role, extensive travel is usually necessary. The superintendent is in effect the face of the
company on board, often being the only company representative that most of the ship’s crew will ever meet.
This brings with it challenges of its own. On one hand, the superintendent is present on board to make
certain that everything is happening as it should but on the other, some crew members will use the person’s
presence to advance their own agenda (whether good or bad for the company). It is at this time when the
superintendent’s ‘soft skills’ will come into play - understanding human interactions.
As a superintendent, it is probable that you will spend much of your life short of time. Shipping is a pressurised
business and the superintendent is at the sharp end of that pressure. Despite this, it is important to remember to
take time with the people on the ship. The crew are there 24 hours a day and know in detail what the problems
and issues are. As a visitor, whilst you might know the ship well, the chances are you do not know it as well as
the crew. Therefore, notwithstanding the earlier comment about different agendas, take time to listen to the
crew’s issues. If necessary make of note of the issues raised and come away to take time to investigate before
committing yourself to a course of action and/or a comment that you might later regret.
Ship Information and Particulars

As the superintendent in charge of a ship or group of ships, the organisation you work for will expect you to
be the primary reference source for all information, technical and otherwise, relating to that ship. Given the
degree of complexity of today’s ships it is virtually impossible for a superintendent to remember everything and,
therefore, it is necessary to develop and maintain up to date accurate records of the ship.
Some organisations will have computerised systems already in operation, some may not. In the absence of an existing
system, the superintendent will need to start to build records from the ground up. In the first instance, collecting
standard information for the ship in terms of a Vessel Particulars Questionnaire (used in the SIRE system) can form the
basis from which to start. The author tends to prefer using a spreadsheet for capture of such information as these tend
to be more flexible than word processing documents, however, this is personal preference.
The Working Environment

Working ashore is somewhat different to working on board ship. If you are making the move from sea staff to
shore staff this can prove a challenge because of the different way things work ashore. If coming to shipping from
a shore-based environment it can be difficult to appreciate the different way of life that seafarers lead. Therefore,
the following section will identify the main differences between working on board and working ashore.
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Shipboard working environment

• Small contained area.
• Everybody knows everybody.
• People of the same general background (seafaring).
• General willingness to get the job done (no realistic alternative).
• Clearly defined command and control structure.
• Good internal communications.
• Few external pressures.
• As captain or chief engineer you are your own boss.
Shore-based working environment

• Large (or possibly very large) organisation with hundreds of people.
• Not even possible to meet, let alone know, everyone.
• People who have never been to sea have a completely different outlook on life.
• An office environment can lead to demarcation of boundaries and a ‘not my job’ mentality.
• Command and control structure might not be readily apparent.
• Internal communication can be poor.
• Frequent external pressure (primarily the telephone).
• Your boss is close by and you will tend to interface with him/her on a daily basis
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8. STUDENT Assignment
Using the Internet and your preferred choice of search engine identify 10 different organisations (that have not
already been considered in this module) which might be useful in providing you with information in your role
as a superintendent.
Prepare a brief summary of who they are, which area of the industry they represent and what information
sources they provide. Include a hyperlink to the relevant web site with each organisation.
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Ship Superintendency A Qualification for SHIPS’ SUPERINTENDENTS

Module 1 The Shipping Industry and the

The Function of International Shipping

Course Administrator Course Organiser

© Marine Publications International Ltd 2011

Maritime Services (International) Limited

© Ian C Biles - October 2011

1. The Function of International Shipping 4

2. International Regulation of Shipping 7

4. Classification Societies and the Role of Class 30

5. Industry Organisations and Information Sources 35

International Chamber of Shipping - ICS 36

6. Shipping Company Organisation 66

7. Role of the Superintendent 72

1. The Function of International Shipping

The Function of Shipping

The Shipping Industry

The Cargo Owner

The Ship Owner

The Service Providers

Banks and Financial Institutions

2. International Regulation of Shipping

International Maritime Organization (IMO)

The four main committees are:

Maritime Safety Committee (MSC)

Marine Environmental Protection Committee (MEPC)

Technical Co-operation Committee (TC)

IMO and Standards of World Shipping

International Convention for the Safety of Life at Sea 1974

Chapter V – Safety of Navigation

Chapter IX: Management for the Safe Operation of Ships

Applicability of the ISM Code

Background to the International ISM Code

Functional Requirement for a SMS

Adoption of the ISM Code

International Convention on Standards of Training, Certification

The STCW Convention is divided into four parts:

The Manila Amendments to the STCW Convention and Code

• new training guidance for personnel operating Dynamic Positioning Systems.

International Convention for the Prevention of Pollution from

Annex I- Regulations for the Prevention of Pollution by Oil

Annex II - Regulations for the Control of Pollution by Noxious Liquid

Annex III - Prevention of Pollution by Harmful Substances Carried by Sea

Annex IV - Prevention of Pollution by Sewage from Ships

Annex V - Prevention of Pollution by Garbage from Ships

Annex VI Prevention of Air Pollution from Ships

Convention on the International Regulations for Preventing

Part A - General (Rules 1-3)

Part B- Steering and Sailing (Rules 4-19)

Part C Lights and Shapes (Rules 20-31)

Part D - Sound and Light Signals (Rules 32-37)

Part E - Exemptions (Rule 38)

International Convention on Tonnage Measurement of Ships

Gross tonnes and net tonnes

International Labour Organization (ILO)

The Maritime Labour Convention - MLC

Chapter 3 – Flag States

The Role of the Flag State in International Standards

Sierra Leone Ensign South Korean Ensign Japanese Ensign

Norwegian Ensign United Kingdom Ensign

Cambodian Ensign St Vincent and the Grenadines Cypriot Ensign

Cayman Islands Ensign

Gibraltar Ensign Bermuda Ensign