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Members confirm they get value for money
"Sand Fulmar" visits Newcastle
New video stars Mr Good and Mr Bad
Watch out for fatigue
UK amends passenger liability regime
Declaring drugs in Russia
Stowaway news
Filipino crew claims
Bill of lading arbitration clauses - French court position
Fishmeal - still a dangerous cargo
Filipino customs get sticky on sugar
Avoiding cargo claims in the Yemen
Ghana bans old bangers
New standard arbitration clause for charterparties
Limits relegated on forum shopping list
"Aegean Sea" clarifies charterers' liability
Changes to limitation of liability figures waiting in the side lines
Pollution fines in Turkey up 500%
Non-SOLAS flag compliance with ISM
Guidance on beating the Millennium Bug
Definitive guide to ISM Code implications
Loss prevention calendar 1999
Poster highlights dangers of working aloft
Personalised training courses for Members
Maintaining course for MARS
Spreading the word
Loss prevention seminar moves to Greece for 1999
Chamber of Shipping safety competition
Welcome aboard
New extension completed 

Members confirm they get value for money

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Nearly 100 Members and brokers attended the annual North of England seminar which was held in Newcastle on Friday 27 November last year.

Entitled ‘P&I Clubs - What Value?’, the seminar moved away from the usual loss prevention theme to take a look at North of England Club specifically, the International Group generally and whether the Club is still offering its Members what they really want and need.

The Club has witnessed considerable growth since the mid-1980’s with the Membership changing from being predominantly British-based to a very ‘International’ Club. The merger with the Newcastle P&I Club on 20 February 1998 was a further significant change in the structure of the Club.

Furthermore, the whole way in which the International Group Clubs operate has again been under the microscope of DGIV in Brussels during the last few years. Some of the most basic underlying principles on which the P&I Club system has been built have been questioned. At the same time alternative facilities have appeared in the market place perhaps offering shipowners more choice in how they obtain liability insurance.

It therefore had to be recognised that whilst the traditional system seemed to have worked well for the last 130 years or so - with more than 90% of the world’s shipowners continuing to enter their ships in International Group Clubs - it was not necessarily appropriate for the next century. The Association thus decided to raise the issues with the Membership through the seminar by asking the question “What do you want out of your Club?”. 

The event opened with the Club’s Joint Managing Directors and departmental management heads explaining what they believed they were offering the Membership. Four guest speakers were then invited to put forward points of view from the shipowner’s and the broker’s perspectives as the customer and from the P&I correspondent’s and external advisor’s perspectives as additional service providers. Delegates were then encouraged to share their own thoughts, observations, suggestions and proposals to identify the direction in which the Club should perhaps move in the next few years.

Whilst the debate was lively with some very interesting points being made, there appeared to be a consensus of opinion that the formula which the Clubs of the International Group had developed over many years - particularly with the high levels of service being provided - was indeed what the shipowners wanted and there was no need for any major changes to take place.

However, it was also recognised that the situation must be kept under constant review and it would be dangerous for any Club to become complacent. It is therefore important to ensure on regular occasions that Members are getting what they actually want in terms of value for money.

Members will find a CD Rom which contains a video of the presentation by the Managers and a copy of the prepared papers of the guest speakers from the seminar accompanying this issue of Signals.

"Sand Fulmar" visits Newcastle

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The “Sand Fulmar”, the latest addition to the South Coast Shipping Company fleet, made a welcome visit to the Quayside in Newcastle upon Tyne at the end of October 1998.

She was launched at De Merwede Ship Yard on 13 June 1998 and entered service on 17 September 1998.

North of England Member, South Coast Shipping Co Ltd, a subsidiary of the RMC Group, operates a fleet of sophisticated dredging ships, in and around the UK from its offices in Southampton. The company kindly hosted a reception lunch on board for North of England staff and provided a guided tour of the ship.

New video stars Mr Good and Mr Bad

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North of England has long recognised the value of training videos to promote safety and loss prevention in the shipping industry. In the past year the Club has worked with Maritime Training Services (MTS) of Seattle, USA to distribute videos to Members entitled ‘Port State Control’ and ‘Bunker Operations’.

A further video is now in production entitled “Personal Injury Prevention - Safety Needs You”. It is based on the Club’s loss prevention guide “Personal Injury Prevention - A Guide to Good Practice” written by Loss Prevention Executive Richard Bracken.

Richard recently spent two weeks filming in Seattle with MTS and producers Calbom - Davies. The video adopts the now proven North of England style of using the international language of humour to convey the serious safety messages. Actors bring to life the Mr Good and Mr Bad cartoon characters that feature in the Club’s Safe Work Accident Prevention Posters (SWAPP).

Focusing on the importance of good and effective safety management, the video first considers work planning, ISM Code implications and how to develop a safety culture as well as identifying the six basic items of personal protective equipment.

The second part of the video highlights five specific areas:

• tools and machinery
• workshop safety
• working on deck
• lifting equipment
• emergency procedures

It concludes by reminding seafarers that effective shipboard safety regimes require the individual to take responsibility for his or her own safety.

The video will be available to Members early in 1999. It is anticipated that it will be despatched to Members with a special edition of ‘Signals’ which will focus on the personal injury prevention material currently available from the loss prevention department. The ‘Signals Special’ will reinforce the practical messages contained in both the personal injury prevention guide book and the SWAPP posters and will give advice to Members as to how the package including the video may be used to reinforce the loss prevention message to seafarers and shipping companies alike.

Non-Members of the Association will be able to obtain copies of the video from Maritime Training Services in Seattle and further details will be provided when the video is released.

Watch out for fatigue

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Many potential accidents on board ship can arise due to crew fatigue, not least when the officer of the watch falls asleep whilst on duty. It is not difficult to imagine the potential horrific consequences of such an occurrence and it is a possibility that must be strictly guarded against.

In order to prevent fatigue, the STCW Code (Standards of Training and Certification of Watchkeepers) of the IMO stipulates that bridge team members must take mandatory rest periods. These should be at least 10 hours in any 24 hour period, but can be reduced to a minimum of six hours in a 48 hour period as long as not less than 70 hours rest is provided each seven day period.

Further, the STCW Code advises governments to prescribe a maximum blood alcohol level of 0.08% for ship’s personnel during watchkeeping and prohibit alcohol consumption for the four hours preceding watch duty.

Port states and flag state administrations may have more stringent policies of which shipowners should be aware. Certainly this is a particular area of shipmanagement where it is most definitely better to be safe than sorry.

UK amends passenger liability regime

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Passenger ferries trading between countries which are signatories to the Athens Convention have long enjoyed the benefits of limitation of liability in respect of passenger claims. The Athens Convention makes liability to passenger claimants very hard to avoid but ensures that passenger ferry operators have some protection from extremely large claims.

The United Kingdom, a signatory to the Athens Convention, has now introduced fresh legislation, effective from 1 January 1999. This increases the present maximum passenger liability for UK-based ferry operators from 100,000 SDRs (approximately US$140,000) to 300,000 SDRs (approximately US$420,000). This will affect ferry operators, travel agents and tour operators whose principle place of business is the UK. It is intended, however, that when a suitable legislative opportunity arises the UK will withdraw from the 1974 Athens Convention altogether and extend the protection more widely, to include all passengers travelling on UK flagged ships, whose port of departure or destination is the UK or who have purchased their passenger ticket within the UK.

The Club will keep Members advised of all further changes, but Members should not hesitate to contact Belinda Ward at the Club, with any further queries.

Declaring drugs in Russia

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Russian customs authorities have introduced more severe requirements in respect of drugs kept on board ship, particularly at the ports of Novorossiisk and Tuapse.

Masters must now present a ship’s drug declaration, after which a special customs representative will board the ship and check the declaration against all drugs in the presence of the master or a person in charge. If no declaration is made, the ship may be detained and, if any drugs are found, the customs authorities can start an action against the master for smuggling.

The Association would therefore make the following recommendations to all ships trading to Russian ports:

• pay special attention to preparing the drug list and general declaration before arrival
• before arrival, carefully check the medicaments in accordance with International Medical Guide for Ships (World Health Organisation or other official guides) and declare them
• keep the process of inward formalities under permanent control
• during the formalities, officially trace the persons of authority and fix the details of the persons to whom the documents were tendered
• clarify any enquiry in connection with the drug declaration with the customs officers during inward formalities
• keep all the controlled medical substances in the master’s safe during the whole period of loading/discharging at the port
• if undeclared drugs are found on board ship by the crew after inward formalities, declare them additionally within 24 hours from time of arrival
• if the customs drugs department officers come on board ship, present the drugs from the ship’s safe for checking upon demand
• ensure the inspection of the ship’s medical locker is performed by the customs officers only in the presence of the master or a person in charge
• if any problem with customs officers arise, immediately contact the P&I correspondent in the port.

If Members require any additional information regarding the above procedures, please contact either the Club or its correspondent in Russia, Nostra Novorossiisk.

Stowaway news

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It is increasingly difficult to arrange repatriation of stowaways, with some categories causing particular problems.

Vietnamese stowaways

Disembarking Vietnamese stowaways can be an extremely frustrating, expensive and time-consuming exercise. The Vietnamese authorities usually require at least six to eight weeks to complete their investigations and satisfy themselves that the individual concerned is a Vietnam national, especially where no identification papers have been found.

It is possible to repatriate a Vietnamese stowaway more promptly if the ship is trading in the South East Asia region and the stowaway possesses official identity documentation. Otherwise shipowners can expect a longer and more laborious process with subsequent higher costs.

Once again therefore, Members are urged to take all possible precautions to prevent stowaways, whatever the nationality, embarking and remaining undetected on board ship.

Children

Members should also take extra caution when a stowaway is found on board who is, or is suspected to be, a minor.

For example, when a ship calls at a French port carrying a stowaway less than 18 years old, the French Prosecutor must be advised, and normally the individual can be expected to be placed under the protection of the judge for children. It is possible that if this formality is not complied with, and repatriation of the minor is arranged through French channels, the shipowner could be sued for complicity and kidnapping a child on behalf of foreign interests and without due reference to the interests and welfare of the child.

Members should thus be aware of the need to consider the relevant law when arranging for the disembarkation and repatriation of a stowaway who could be the subject of additional regulations because of their perceived vulnerability - due not only to age but also to sex, mental agility or physical condition.

Filipino crew claims

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In recent years Filipino crew members have made great efforts to pursue their claims against shipowners in Panama, with both the assistance and encouragement of local plaintiff lawyers.

Typical of such cases is the “MV Arteman”. The plaintiff, a Filipino seaman, claimed compensation of US$700,000 from the shipowner due to disability resulting from an illness while on board ship. However, in 1996, the Panamanian Court decided in the owner’s favour.

The case was appealed and, earlier this year, the Panama Supreme Court finally gave its decision. It found that:

• the crew member had every access to, and the defences necessary for, a fair trial at home
• Philippine laws include certain measures aimed at protecting the financially weaker part of the labour relation
• the Philippine Labour Conciliation and Arbitration Court can take certain measures in order for the financially stronger part, the shipowner, not to use its economic power to obstruct or hinder the Filipino  workers’ access to the legal processes.

Unfortunately we still receive notice of many similar cases which have been decided against shipowners and it should be noted therefore that it is still up to the Panamanian Maritime Judge to decide whether the jurisdiction of the Maritime Court of Panama is declined in favour of a foreign forum in any given case.

Bill of lading arbitration clauses - French court position

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Members should be aware that French courts are ignoring arbitration clauses in bills of lading when the claimant is a French company or national.

The situation is particularly likely to arise in West African ports, where discharged cargoes are frequently underwritten by French insurers. When claims are brought by cargo interests for shortage or damage to the goods, the insurers threaten to commence proceedings before the French court ignoring the express incorporation of any arbitration clause from the charterparty into the bill of lading. The clause often refers to English arbitration.

Cargo interests maintain that the arbitration clause is not enforceable and, on the basis of recent cases, the French courts appear to support this. The reasoning is that the receiver must have specifically expressed his acceptance of the arbitration clause for it to be binding. The mere fact that he takes delivery of the goods does not prove that he had accepted the insertion of the arbitration clause into the bill of lading.

Additionally, French legislation permits French receivers to summon foreign shipowners to proceedings in France. Only shipowners which belong to the EEC can reject such summons under the terms of the Brussels Convention 1968.

Members should contact the Association or its French correspondents for more specific advice.

Fishmeal - still a dangerous cargo

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On a number of occasions the Association has highlighted in ‘Signals’ the dangers of inadequately treated fishmeal cargoes - particularly from Peru (eg Issue 22 in January 1996 and Issue 30 in January 1998).

A recent decision in the Appeal Court in London relating to a cargo of Peruvian fishmeal carried on board the ship “Nour” drew attention again to the need for fishmeal to be adequately treated.

A cargo of 40,000 bags of Peruvian fishmeal was loaded at Callao, Peru after which the ship proceeded to Chilean ports where bagged Chilean fishmeal was loaded for delivery in Indonesia. The voyage was originally expected to last two months but, in the event, three months passed before the last cargo was discharged.

On the ship’s arrival at Jakarta it was found that the Peruvian cargo had suffered extensive damage as a result of self-heating. It was shown in evidence that the Peruvian cargo had been inadequately treated with the necessary anti-oxidant on shipment which resulted in the over-heating of cargo.

Although the fishmeal exporter admitted inadequate anti-oxidisation, it also argued that the loss was caused by the extended length of the voyage. However, the Appeal Court agreed with the Commercial Judge who held that the sole cause of the cargo self-combusting was inadequate anti-oxidant treatment.

The Appeal Court once again stressed the important need for regulation of fishmeal because improperly treated cargo results in uncontrolled over-heating which could jeopardise the ship and the crew. Members are again warned to be extra vigilant when loading Peruvian fishmeal. 

Filipino customs get sticky on sugar

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Sugar, whether raw or refined, has become a controversial commodity in the Philippines. Shortages caused by El Niño’s effect on local sugar crops have led to high prices and unscrupulous persons have been taking advantage of this by attempting to smuggle the commodity into the country in commercial quantities. The Philippine authorities have seized a number of ships carrying sugar on the slightest suspicion of smuggling.

If Members’ ships are carrying sugar bound for the Philippines, all the pertinent documents, especially the cargo manifest and the bills of lading, must be complete and in order from the time they leave the port of loading. The Philippine authorities will seize any ship and its cargo at the slightest error in the documentation, even if this is only a clerical error. The seizure proceedings are long and tedious and, because of the controversy with sugar cargo, port officials are usually over-cautious.

ships should be ready to provide the customs boarding officer at the port of destination with complete and accurate documents. Insufficient or inaccurate documents will lead to seizure of the ship in the first instance. A belated compliance or amendment, whilst allowed under normal circumstances for non-controversial cargo, will not mean automatic release of ships carrying sugar.

Any Members having difficulties in respect of sugar cargoes into the Philippines should contact the Association as a matter of urgency.

• The Association is grateful for the assistance in preparing this article provided by the Law Office of Del Rosario & Del Rosario.

Avoiding cargo claims in the Yemen

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Shipowners discharging either bulk or bagged cargoes in the Yemen frequently encounter allegations of shortage or damage on completion of discharge.

Although it appears to be extremely difficult to avoid damage and loss claims in the Yemen, there are some steps which can be taken to minimise Members’ exposure.

One of the causes of the increasing number of claims appears to be the charterer’s choice of local agent. The appointed agent is frequently a very small business which is owned by the receiver, and also acts as the stevedoring company. There are obvious conflicts of interest in such circumstances. If owners refuse to accept agents/stevedores nominated by receivers, it may well result in a dramatic reduction of spurious claims.

Break bulk claims in the Yemen also tend to be grossly exaggerated in relation to damaged cargo. Such claims can be controlled and reduced to a reasonable level with the help of a reliable attending surveyor. However, if there is a real claim at the end of discharge and the receiver files a case in the Yemen courts, it is much more difficult to negotiate. Additional legal fees, which are relatively high, will also be added to the amount claimed from the carriers.

• Any Members fixing for the Yemen may wish to contact the Association to discuss the situation.

Ghana bans old bangers

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As from 1 June 1998, Ghana has prohibited the import of motor vehicles over ten years of age. Any ship found contravening the prohibition by carrying such vehicles into Ghana will be subject to a fine of Cedis 25 million (approx $10,000) per vehicle and such vehicles will be forfeited.

Unfortunately, the carrier does not have any means of avoiding the fine and therefore, when asked to carry vehicles to Ghana, Members should obtain a written declaration from the shippers that no vehicle is over ten years old.

To protect the carrier’s position, the declaration should also contain an indemnity fiom the shipper to cover the possibility that any one of the vehicles is in fact more than ten years old and the carriers are fined as a result of this.

New standard arbitration clause for charterparties

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BIMCO and the LMAA have joined forces to produce a new Standard Law & Arbitration Agreement for use in charterparties and other shipping contracts.

The clause is divided into three parts, the first dealing with London Arbitration English law, the second with New York arbitration US law and the third provides for an alternative forum to be agreed between the parties. If the parties do not specifically select one of the three alternatives, there is a presumption that the English law London Arbitration part of the clause will prevail.

It is to the English law part of the new clause that most changes have been made. The changes were made necessary in part by the coming into force on 31 January 1997 of the Arbitration Act 1996.

For London arbitrations the new clause provides that the reference will be conducted before a tribunal of three arbitrators. Each party appoints their own and the third is then appointed by the two so chosen. This format avoids difficulties that may arise where the reference is to a sole arbitrator, the parties then fail to agree the identity of the judicial appointment.

The clause also provides that for small claims (where neither the claim nor counterclaim exceeds US$50,000), the LMAA Small Claims Procedure in force at the time arbitration proceedings were commenced shall apply.

The English law part of the clause represents a significant departure from the format adopted by the previous BIMCO Clause. For the first time, it incorporates the current LMAA terms. As most users of London arbitration will know, the London Maritime Arbitrators Association terms are the most common procedures adopted for maritime arbitrations and deal in considerable detail with the powers of the arbitrators and the procedures to be adopted by the parties.

The clause also recognises the need to speed up the appointment procedure to deprive the parties of the ability to delay the progress of the reference. The time limits proposed by the Arbitration Act 1996 are expressly amended by an agreement contained in the new clause. This has the effect that the tribunal will be constituted by the appointment of each side’s arbitrator within 14 days of the first party sending notice of his intention to arbitrate a particular dispute.

The US law part of the clause has been updated so that the reference to the award being made a “rule of court” is deleted and replaced by a reference to a court of competent jurisdiction. In keeping with the format adopted by the English law part, the Society of Maritime Arbitrators’ Shortened Arbitration Procedure is incorporated for claims less than US$50,000.

All in all, the new clause represents a significant advance on the old. Further, and for the first time, BIMCO and the LMAA have drafted a single clause providing for London Maritime arbitration. The clause will be used in most new BIMCO contracts and can be incorporated as a free-standing clause into charterparties and other maritime contracts.

Limits relegated on forum shopping list

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A recent decision of the UK Court of Appeal has fundamentally changed the factors to be taken into account in choosing the most appropriate jurisdiction in which to bring an action.

As a result of the decision, it is clear that forum shopping should not necessarily be based on the limitation regimes that apply.

The case involved actions following a collision between the “Ming Galaxy” and “Herceg Novi” in the Straits of Singapore. The owner of the “Ming Galaxy” brought an action in Singapore against the “Herceg Novi” after which the owner of the “Herceg Novi” subsequently started proceedings against “Ming Galaxy” in England. The owner of the “Ming Galaxy” then tried to stop the English proceedings on the basis that Singapore was the more appropriate jurisdiction.

The Court of Appeal agreed that England was neither the natural nor appropriate forum for the action so that the English proceedings should be stayed. A stay would however not be granted if it deprived the owner of the “Herceg Novi” of some legitimate juridical advantage.

The potential advantage in this case was that Singapore applies the 1957 Limitation Convention whereas England applies the 1976 Limitation Convention. The limits of liability are higher under the 1976 Convention, so the owner of the “Herceg Novi” stood to be awarded higher damages in England than in Singapore.

The Court of Appeal declined to accept the potential advantage as sufficient reason for the English proceedings to continue. The 1976 Convention has not received universal acceptance and is not applied by all states. It is thus no more “just” than the 1957 Convention and the law of countries that apply only the 1957 Convention cannot simply be ignored, according to the court.

It therefore remains the case that the most appropriate jurisdiction is still likely to be the one that has the closest and most natural connection with the action in question. The fact that one jurisdiction may apply higher limits of liability than another will not necessarily be a relevant consideration.

"Aegean Sea" clarifies charterers' liability

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There has been another recent decision of the English Courts that relates to the issue of limitation. In the case of the “Aegean Sea”, the Commercial Court decided that for claims by an owner against a charterer for breach of the charterparty, the charterer cannot rely on the 1976 Limitation Convention or any other applicable convention relating to limitation of liability.

The “Aegean Sea” ran aground off La Coruna in December 1992 and caused a major oil spill. Claims were made against the owner for pollution and salvage, which the owner sought to pass on to the charterer. The owner’s claim was based on the allegation that the charterer’s nomination of La Coruna was a breach of charterparty as it was an unsafe port.

The charterer tried to limit its liability but the court held that it was not entitled to do so. All claims arising from a distinct incident are subject to one limit and one limitation fund. There is no provision in the convention, and no indication otherwise of any intention, that the charterer could limit its liability separately.

As a result it is clear that where a limitation fund has been established in the normal way following an incident, the charterer will not be able to limit its liability for any recourse claims that the owner may have against it arising out of the incident.

Changes to limitation of liability figures waiting in the side lines

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The 1976 Convention on Limitation of Liability for Maritime Claims is currently in force in the UK and over 30 other states. In 1996 an inter-governmental conference produced a Protocol to that convention which will have the effect of increasing the limits of liability substantially (see table).

Legislation is now being passed in the UK that will bring the Protocol and the new limits into effect once the Protocol enters into force internationally. This will happen 90 days after ratification by 10 states.

The UK was the first country to ratify the Protocol but, so far, sufficient other countries have not followed suit. It is therefore not clear at the moment when the Protocol will come into force.

Pollution fines in Turkey up 500%

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From 1 August 1998, pollution fines in Turkey have increased five-fold on previous figures. The new pollution fines are as follows.

Dirty ballast discharged by tankers:

• Up to 1,000 (inclusive) GT - 5,700 million Turkish Lira
• Between 1,000 and 5,000 (inclusive) GT - 11,400 million Turkish Lira
• Over 5,000 GT - 11,400 million Turkish Lira

In cases where dirty ballast and every kind of residue in liquid or solid form are discharged from the ship, including the tankers and dirty ballast from ships which are not tankers:

• Up to 18 (excluding) GT - 342 million Turkish Lira
• Between 18 (inclusive) and 1,000 (inclusive) GT - 5,700 million Turkish Lira
• Above 1,000 GT - 11,400 million Turkish Lira

If Members require any further information with regard to the fines or the rules and regulations enacted by Turkey regarding sea pollution, please contact the Association.

Non-SOLAS flag compliance with ISM

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A Member recently asked the Association for advice on the situation where a ship flies the flag of a country which was not a signatory to the SOLAS Convention and what the implications would be with regard to ISM documentation.

Members will of course already be very familiar with SOLAS 1974 and subsequent amendments, and in particular chapter IX which introduced the ISM Code.

Almost 140 countries are party to the SOLAS 1974 Convention but there are a number of maritime states that are not signatories. Questions therefore arise about how ships from these non-SOLAS states can demonstrate compliance with the ISM Code - introduced by Chapter IX of the Convention - and indeed whether they actually need to demonstrate compliance when trading to countries that are signatories to SOLAS.

All ships flying flags of countries that are party to SOLAS, must comply with the Code. Documents of Compliance and Safety Management Certificates are issued by flag state authorities or other bodies authorised by them, such as classification societies. For ships of non-SOLAS states it is not possible to obtain such documents.

What then can the owner of a non-SOLAS flagged ship do? Unfortunately there is no clear or wholly reliable solution. One approach may be for the owner to apply to an IACS classification society and demonstrate compliance with the ISM Code, as if it applied in the normal way. The classification society may then be able to issue an equivalent certificate.

Though certificates issued in this way will not be valid SOLAS Certificates, they may still be valuable documentary evidence of compliance that can be produced to port state control authorities. It is these authorities which have the final say on compliance until this particular loop-hole can be closed officially, but it remains to be seen whether a strict or practical approach to the problem will be adopted.

Guidance on beating the Millennium Bug

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The Association has received a number of enquiries from Members seeking advice and guidance on how they can resolve the problems that are likely to be posed to their computer systems and other equipment that may contain date-sensitive embedded chips, both in the office and on board ships, caused by year 2000 - the so-called “Millennium Bug”.

The Association is unfortunately not in a position to guide or advise Members in detail on the technical issues involved in ensuring that their computers and other relevant systems and equipment will be year 2000 compliant. It does not have the technical capability or resources to do this. What it can do, however, is generally raise awareness of the problems and offer a few basic pointers.

As a starting point, Members should seek to identify and create an inventory of all of their computers and other equipment, both in their offices and on board their ships, that may be date-sensitive, have embedded chips and, generally, may be affected by the change of date as we move into the year 2000. Having identified all such equipment, enquiries will need to be made to the manufacturers and suppliers about the ability of that equipment to continue to function properly despite the date change. A programme for replacing or upgrading equipment as may be necessary to make sure that it is year 2000 compliant will then need to be put in hand, together with a programme of verification testing.

It would also be sensible for Members to draw up contingency plans, in case any equipment still fails or malfunctions. The plans should ensure that essential systems can still function or can be replaced with others that are not vulnerable to the change of date. Personnel should also be fully drilled in such contingency plans.

A modern, fully equipped ship is likely to have hundreds of pieces of equipment that may be affected by the Millennium Bug. The scope and possible difficulty of the task cannot be understated. In order to assist Members initiate the necessary processes and procedures for ensuring year 2000 compliance, the Association is making available to Members a computer programme called “Ship 2000 Toolkit”. This is a simple application contained in 4 floppy disks that provides more detailed guidance and suggestions for compiling inventories and databases of potentially affected equipment and as well as more general guidance and assistance on how to approach the problems.

“Ship 2000 Toolkit” has been produced with the support of all of the Clubs in the International Group. It should run on any Windows-based computer and is available from the Association at the cost price of £20 per kit.

Members who wish to obtain copies of the “Ship 2000 Toolkit” should contact the Loss Prevention Department.

Definitive guide to ISM Code implications

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Of concern to almost everyone in the shipping and related industries is what the legal and insurance implications of the ISM Code are likely to be. There has already been much speculation around the world on this subject and many articles have appeared in various publications written primarily by lawyers and journalists. They have addressed different aspects of the Code, suggesting how it may impact upon different activities involved in operating commercial ships.

The head of loss prevention at North of England, Captain Phil Anderson, was commissioned a year ago by Lloyd’s of London Press (LLP) to prepare a more detailed guide to review the potential legal and insurance implications of the ISM Code - but to approach the subject from a practical rather than an academic legal perspective.

The original intention was to publish the book by the 1 July 1998 compliance deadline date, but that proved to be impractical for a number of reasons. The most important of these was that by the end of June 1998, even the most proactive governments around the world had still not completed the drafting of the legislation which was to enact the Code into their domestic law. Indeed, it was not until after the deadline had passed that the full potential implications started to become clear.

That realisation is still taking place and is likely to continue for some considerable time to come - particularly with regard to the way in which different flag state administrations will deal with certification and respond to serious non-compliances, how port state control will police the system and deal with violators and how the courts will interpret the Code.

Perhaps more importantly, is the issue of whether the courts will understand the philosophy behind the Code, which expects open reporting of not only accidents but also hazardous occurrences and so-called near misses. The courts must ensure that shipowners that are properly implementing the Code by producing this evidence are not penalised as a consequence.

Although there are many questions still pending, the book has now been completed and has been released for sale through LLP. Although it is hoped that the book will be of interest to lawyers it is certainly not a legal text book. It is written primarily for those working within the shipping and related industries who need to consider what the legal and insurance implications might be with regard to their own involvement in ships and in their operations, whether they be the master or officers on board ship, the ship manager, operations manager or insurance manager in the office ashore, staff in the P&I Club or H&M insurers, port state control officers or of the multitude of others who may be involved and affected.

In addition to providing a critical analysis of many aspects of the Code, Phil Anderson has also included detailed case studies of the “Star Sea”, “Apostolis”, “Toledo” and the “Marion”. These cases have all been considered by the English courts and the book reflects upon what implications of the ISM Code might have been if it had applied to those cases.

The book also includes four valuable appendices: the text of the ISM Code itself, the text of Chapter IX of the SOLAS 1974 (1994 Amendments), IMO Resolution A.788(19) and the UK Statutory Instrument 1998 No 1561 which enacted the ISM Code in UK domestic legislation.

Copies of “The Legal and Insurance Implications of the ISM Code - From a Practical Point of View” (ISBN 1859786219) can be obtained from Lloyd’s of London Press and all good nautical book sellers, price £28.

An order form accompanies this issue of ‘Signals’.

Loss prevention calendar 1999

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There is nothing funny about accidents and claims. They often lead to personal suffering for the individuals involved and to their family and friends, and also involve shipowners and insurers having to pay out substantial sums of money.

However, humour can be used as a valuable and effective tool to communicate important accident and loss prevention messages. Visual humour in particular can overcome most language and cultural barriers and can be equally effective in the boardroom of the largest shipping company and in the mess room of a small tramping ship.

Since 1993 North of England has produced a humorous loss prevention calendar illustrated by the well known cartoonist ‘Tugg’, who combines his artistic skill and wit with his extensive knowledge of the shipping industry to highlight areas where accidents and claims can occur. The 1999 calendars were distributed in December 1998.

The Association is sure that the latest edition will help to raise a smile throughout 1999 and hopefully make a very real contribution to raising awareness of accident and loss prevention issues throughout the year.

The Association would also like to take this opportunity of wishing all readers of ‘Signals’ a happy, safe and accident free 1999.

A limited number of calendars are still available and can be obtained from the Loss Prevention Department whilst stocks last.

Poster highlights dangers of working aloft

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The dangers of working aloft are highlighted in the latest Safe Work Accident Prevention Poster (SWAPP 12) which is distributed with this issue of Signals.

Industry statistics indicate that some 45% of personal injuries occur as a result of slips and falls and a further 20% as a result of falling objects. A large number of claims are related to working high above the deck.

Many tasks undertaken by ship staff involve working high up in areas with awkward access and this may require personnel carrying equipment aloft with them. Like all shipboard duties it is essential that all tasks involving personnel working in such situations are correctly and carefully planned.

Any person working more than 2 m above the deck should wear a safety harness which should be secured to arrest any fall. They should also give their full attention to the task ahead and fully consider the personal safety implications. Personnel involved in working aloft or over the ship’s side should be aware that this is potentially very dangerous, particularly if the appropriate precautions are not taken.

Tools should be raised and lowered by line and not carried by people as they climb to their place of work. Once at the work place, persons involved must ensure that tools are not dropped where they will cause injury. A tool belt can be particularly useful at this time as it avoids personnel carrying tools in boiler suit pockets, which is one of the primary factors leading to falling objects.

When work aloft is undertaken, warning notices should be placed below to warn others of the potential dangers. It is recommended that areas are sectioned off to avoid personnel walking underneath.

Particular care should be taken when working close to radar and radio masts. Radio transmissions and radar operations should be suspended as necessary and “danger: men working” notices should also be placed on relevant equipment.

Seafarers should take particular care to ensure that any ropes or equipment used whilst working aloft are inspected and tested by a competent person prior to use. If portable ladders are used to facilitate access to working positions, the ladders should be suitably secured. Strict guidelines relating to the specification of portable ladders should be followed.

Think safety when working aloft and don’t be one of those seafarers injured every year from slips, falls and falling objects. Remember also that the potential dangers are made worse by the fact that a ship is invariably never still. It is by following good safety practices and industry-accepted procedures that the number of people injured whilst working aloft can be reduced. The poster attempts to use the international language of humour to convey this important message.

Personalised training courses for Members

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For a number of years now North of England P&I Club has organised a wide range of training courses in P&I insurance and loss prevention. Some of these courses, such as the Distance Learning Course and the Residential Course, are available to Members as well as other interested parties.

However, a number of courses are only available to Members. They are purposely exclusive because they often involve intensive one-to-one training. These courses are the ‘In-Office’ training courses which take place in the Association’s Newcastle and Hong Kong offices and the ‘On-Site’ training courses which are organised at the Member’s own location.

The courses are arranged in response to specific requests from individual Members. Every effort is made to respond positively to all requests from Members though there may be physical limitations on how many such training courses can be run each year.

The Association is now preparing its programme of training courses for 1999 and Members are urged to contact the Loss Prevention Department as soon as possible with individual requests.

Full details of the ‘In-Office’ and ‘On-Site’ training courses can be found on pages 6 and 7 of the brochure ‘Loss Prevention - The Profitable Course’ which was distributed to Members with the July 1998 issue of ‘Signals’. Further copies can be obtained from the Loss Prevention Department.

Maintaining course for MARS

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In 1995 North of England became a financial sponsor of the Marine Accident Reporting Scheme (MARS) launched by the Nautical Institute.

The aims of the scheme are very close to North of England’s approach to loss prevention in that it raises awareness of accidents, incidents and claims by disseminating details of losses which have been suffered by others in order that we can all learn from those mistakes.

MARS is compiled and published monthly by Captain R Beedel FNI of the Nautical Institute and comprises a series of factual reports which have been submitted anonymously, mainly by serving seafarers, highlighting a wide range of accidents and near misses.

The Association understands that some Members may still not be aware of the MARS project and this opportunity is therefore being taken to bring the matter to the attention of the Membership generally. Copies of the MARS Reports can be accessed through the Nautical Institute Internet Web Site on www.nautinst.org or as a link through North of England Web Site on www.nepia.com.

Captain Beedel invites people to send him their experiences, in confidence, at: 17 Estuary Drive, Felixstowe, Suffolk, IP11 9TL, UK, or e-mail address - mars@nautinst.org, or fax to Fax Bureau +44 (0) 1394 282435.

Spreading the word

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The Association has been very active over the last few months with various seminars, conferences and training courses and a very busy programme lies ahead. Through these events the Association tries to spread the loss prevention word as far and wide as possible. Below are set out some brief details of recent events and the 1999 programme. Additional details of any of these events can be obtained from the loss prevention department.

Out and about

ISM in the USA
Claims Executive Pat Bond was invited to present a most topical paper at this year’s American Propeller Club annual convention on exploring the impact of the ISM Code following its introduction on 1 July 1998. His presentation generated much debate among the delegates, who reflected that the compliance date appears to have passed without any major problems. The event was hosted by Kim Jefferies who is an attorney with the Association’s Portland Oregon correspondents Wood Tatum.

• Cyprus in September
  Loss Prevention Manager Phil Anderson was able to combine two invitations to present papers in Limassol last September. As well as acting as a conference chairman he also presented a paper entitled “What does the future hold for P&I Clubs? What lessons have been learned in the last 130 years” at the Mediterranean Marine Insurance Conference ‘98. He was then joined by Katherine Birchall, a lawyer with the FD&D Department, to address a distinguished gathering at the monthly meeting of the Cyprus Shipping Council where a number of loss prevention issues were explored.
• Marine simulators and loss prevention
  A major international conference on marine simulator training was held in Newcastle last October by Kongsberg Norcontrol Systems in conjunction with South Tyneside College. Phil Anderson was invited to present a paper considering the value of marine simulators as loss prevention tools.
• Bunker claims and loss prevention
  The Association’s Loss Prevention Executive Richard Bracken was invited to present a paper on bunker claims and loss prevention at a major international seminar organised by Det Norske Academy, the International Bunker Industry Association and the Port of Rotterdam which was held in London last October.
• INMARCO ’98
  The Institute of Marine Engineers in India organised its four yearly International Maritime Conference (INMARCO ‘98) in November at Mumbai, India. The theme of the event was “Shipping Trends for the Next Millennium”. Capt Savraj Mehta, Assistant Underwriting Manager with the Association, gave a paper to the 400 strong audience on what the future holds for P&I Clubs in the millennium.

Coming soon

• Training course in Cyprus
  North of England P&I will be running a four day training course in P&I insurance and loss prevention for the Cyprus Shipping Council in Limassol from 12 to 15 May. The administration of the course is being handled by the Secretariat of The Cyprus Shipping Council. Contact details are: City Chambers, 1st Floor, 6 Regas Fereos Street, PO Box 6607, 3309 Limassol, Cyprus. Telephone +357 5 360717, Fax +357 5 358642.
• Residential Training Course
  The 1999 Residential Training Course will again be held at Lumley Castle Hotel. This is a five-day training course in P&I insurance and loss prevention and will be held during the week 7 to 11 June. A brochure setting out details of the course accompanies this issue of Signals.
• The number of delegates allowed on the course is limited to 25 and many of those places have already been taken. Early enrolment is therefore strongly recommended.

Loss prevention seminar moves to Greece for 1999

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Traditionally North of England P&I Club and its associated hull and machinery mutual - MSMI - have held biennial one day loss prevention seminars on alternate years in Newcastle for their respective Members, brokers and special guests.

However, as the Membership of North of England P&I has grown substantially over recent years it has become apparent that there is a need to hold its loss prevention seminar on a more regular basis. The Club has also become much more international in nature and it is recognised that an increasing number of the Members not based in the UK cannot justify time out of their busy schedules to participate in a one-day seminar with the additional travel involved. It has thus been decided to hold North of England loss prevention seminar every year with the venue alternating between Newcastle and a centre outside of the UK.

The 1999 North of England loss prevention seminar will be held in Greece. All Members will be invited but it is hoped that the event will receive special support from not only the Greek Members but also from the many other Members in and around the shores of the Mediterranean. The seminar will be held in late September at a venue in the Piraeus/Athens area. Full details along with a programme and invitations will be sent to Members, brokers and specially invited guests closer to the date of the event.

Chamber of Shipping safety competition

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The Association will once again be a co-sponsor of the 1999 Chamber of Shipping safety competition. The competition which received some 400 entries last year, will be divided into two sections. The first part of the competition requires entrants to identify eight hazards in a shipboard scene and the second part seeks an appropriate ten word safety slogan. The closing date for entries is 31 January 1999.

Welcome aboard

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Tony Allen
We are pleased to announce that Tony Allen has recently joined the P&I department where he will primarily be dealing with cargo claims. He is a qualified solicitor who was previously with City law firm Norton Rose in their piraeus office where his workload included FD&D matters as well as P&I work.

Adrian Durkin
Adrian, a solicitor, has joined the Association from the Newcastle law firm Rayfield Mills. He joined the shipping department of Eversheds in 1991 before transferring to Rayfield Mills in 1993. He has broad experience in shipping and marine insurance litigation. Adrian also spent three months working at the Association’s office during 1998 providing sick leave cover for a claims executive. He has an LL.B (Hons) degree and will be primarily involved with cargo claims.

New extension completed

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The Association’s purpose-built office on the Quayside in Newcastle upon Tyne was officially opened on 25 November 1994. Four years later the growth of the Association - particularly as a result of the merger in 1998 - meant that additional office space became necessary.

A decision was thus made last year to build an extension which would increase office space by about 40%. The building work was completed on schedule and the internal reorganisation went smoothly mid-December.

The management and staff of the Association now look forward to having the opportunity of welcoming Members and other friends to the extended office during 1999.