Page 71: of Maritime Reporter Magazine (June 1996)

QUALITY PROPELLERS

Preparing For Code Compliance

The ISM Code will become mandatory for all RoRo pas- senger ferries on July 1, 1997. This will be followed by chemical, gas and bulk carriers; oil tankers; high speed cargo craft over 500-gt; passenger vessels and high-speed passenger craft compliance by July 1, 1998; and confor- mance to ISM standards by all other cargo ships and mobile offshore drillling units by July 1, 2001.

Lloyd's Register has announced that eighteen ships owned or managed by three Dutch companies — Jo

Tankers, Wagenborg Shipping and North Sea Ferries — have become the first vessels to receive ISM Code certifi- cates from the Netherlands Shipping Inspectorate (NIS), the arm of the Directorate-General of Shipping and

Maritime Affairs that issues certification after a classifica- tion society completes mandated audits.

The American Bureau of Shipping (ABS) has announced that it will offer shipowners and operators free ISM two-day seminars worldwide. The first day of the seminar sessions cover Code requirements, similarities to ISO 9000 and the certification process. The second day offers a workshop in which participants learn to flow-chart processes, write procedures and understand document-control issues; fol- lowed by afternoon workshop covering requirements for implementing a management system based on the ISM

Code and ISO 9000. For more information on seminar dates and locations, write to ABS at 16855 Northcase

Drive, Houston, Texas 77060-6008, or call (713) 873- 0700; fax: (713) 874-9551.

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Responsive

Service

Clou Societies Rally To The Task

With classification societies tasked with exe- cuting three chief functions under the ISM process, the question of conflicting interests within these organizations comes to mind. But according to ABS' Mr. Leitzell, no conflict aris- es within his organization because employees who assist companies in the implementation of safety plans are not at all involved in the audit- ing procedures. In fact, the American Bureau of

Shipping maintains separate departments for each process. "Lloyd's and DNV are doing the same thing we're doing ... It's a different form of business, a different form of expertise, and we've all taken appropriate action," he said.

While this lends credibility to the ISM process, the key involvement of classification interests in this process calls attention to the fact that they may soon be competing for busi- ness on this level. According to Mr. Leitzell, the implementation of a company's safety sys- tem takes approximately three days. ABS issues a report based on initial knowledge of company safety policy. If requested, the society returns and performs a mock audit on shoreside operations and vessels. If the company passes the audit, it proceeds to the certification stage. "We've had some companies use us for this and then go to Lloyd's for certification. It hasn't been a problem," said the ABS rep.

In an effort to promote greater understanding of the Code, Mr. Leitzell offered definitions of safety management (the overall management activities that determine safety policy) and safety management systems (the application and documentation of common sense). He stressed that ISM exists to "establish safe- guards against identifiable risks," such as fires, explosions, groundings and collisions, and not to penalize owners for missing difficult techni- cal diagnoses. The ABS rep also stated that the

U.S. Coast Guard (USCG) has not planned spe- cial ISM boardings, and that in order for the agency to detain vessels for Code violations, there must be clear grounds.

Dodging liability Loopholes

According to Richard Jarashow, partner in the legal firm of Watson, Farley & Williams, in order to protect against personal liability under

ISM, it is necessary to examine your specific job function in order to become aware of your responsibilities under the safety code. He explained that the "company" is the person who has assumed responsibility for shipboard oper- ations, and has agreed to take over duties imposed by the Code — a role that doesn't nee-

Timothy R. Leitzell, president, ABS Marine Services, Inc., is pic- tured during a recent discussion of the IMO's new safety code. essarily coincide with vessel ownership. Mr.

Jarashow said that "because of aggressive dis- covery rules, combined with the broad scope of who is liable," ISM lawsuits will not be dis- missed. He added that ISM encourages the cre- ation of a huge, paper-driven organization for even a modest fleet of ships. "You can fairly conclude that ISM will be a huge litigation headache in the United States," said the attor- ney.

The legal expert espoused several guidelines for "surviving ISM," which included: accepting that the Code is here to stay; recognizing the seriousness of liability designations; using the transitional time to prepare for Code compli- ance; and mobilizing all resources to fulfill safe- ty mandates. Mr. Jarashow advised those pre- sent to "remember that it is an industry chang- ing event," and that performances will be judged against this criteria. He also added that

June, 1996

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