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Chapter – 1


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Alt 04-11-2008, 21:17   #1
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Standart Chapter – 1



1 - 1 Background

International Safety Management (ISM) Code means the International Management Code for the Safe Operation of Ships and for Pollution Prevention as adopted by the Assembly, as may be amended by the organization.

The operation of merchant shipping is specialized and complex, governed by comprehensive rules and conventions developed by national and international authorities. In the final analysis, while the Master clearly responsible for the safety of the ship and her crew, the overall responsibility for the administration and safe operation of each ship rests with the owner, or any other organization or person who has assumed the responsibility for the operation of the ship from the owner.

Although statistical analysis show that around 80% of all shipping s are caused by human error, the real reason of that s are caused by structural or equipment lacks.

The task facing all shipping companies is to minimize the scope for poor human decisions, which contribute directly or indirectly to a casualty or a pollution incident. One aim should be to ensure that staff are properly informed and equipped to fulfil their operational responsibilities safely.

The adaptation by NO of the International Management Code for the Safe Operation of the Ships and for Pollution Prevention is the reflection of this objective on the part of governments. The ISM Codes establishes an international standard for safe management and operation of ships by setting rules for the organization of company management in relation to safety and pollution prevention for the implementation of a safety management system.

The rules and regulations governing safety and environmental protection have progressed over time through interrelated stages, all of which have relevance to today's shipping industry. The earliest and most basic stage concentrates on the consequences of safety failures where, in the aftermath of personal injury cases, damage to ship or cargo or environmental pollution, efforts are made to find someone to blame. This creates a culture of punishment where the essential theme is to identify and then to apportion blame, frequently to the last person in the chain of events. The underlying principle is that the threat of punishment influences company and individual behavior to the extent that safety gains a higher priority. A second stage involves the regulation of safety by prescription, where the industry is given sets of rules and regulations to follow. This stage is an advance on the first stage because it is designed to attack known points of danger before actual harms occurs. This leads to a culture of compliance with external rules. The third and most advance stage is the creation of a culture of self-regulation of safety, where regulation goes beyond the setting of externally imposed compliance criteria as in the second stage. The third stage concentrates on internal management and organization for safety and encourages individual industries and companies to establish targets for safety performance.

The regulation of safety and pollution prevention in a worldwide shipping industry has been characterized by a cultural punishment and a culture of external compliance. IMO’s adoption of the ISM Code and its mandatory application by all member states is an important step towards the creation of a culture of self-regulation in shipping.

1 - 2 Safety Management System

Safety Management System means a structured and documented system enabling company personnel to effectively implement the company safety and environmental protection policy.

The introduction of a safety management system requires a company to develop and implement safety management procedures to ensure that conditions, activities and tasks both ashore and afloat, affecting safety and environmental protection are planned, organized, and executed and checked in accordance with legislative and company requirements, a SMS is developed and maintained by people. It is important to recognize that the responsibilities and authority of the different persons involved in the system, and the lines of communication between persons affected by it, form its basis An effective SMS should enable a company to measure its performance, allowing areas for improvement to be identified. This may be achieved by the application of a documented safety management system.

1 - 3 Advantages of Establishing a SMS

A structured Safety Management System realizes a company to concentrate on the increase of safe practices in ship operations and in emergency situation. A company that succeeds in implementing a suitable SMS should therefore expect to experience a reduction in incidents that may cause harm to people, damage to the environment or damage to property. (Such as ship or cargo)

Experience from within the shipping industry and from other industries has shown that a company may benefit further in terms of:

• An improvement in the safety consciousness and safety management skills of personnel;

• The establishment of a safety culture that encourages continuous improvement in safety and environmental protection;

• Greater confidence on the part of clients; and

• Improved company morale

There is some evidence to suggest that over time commercial benefits may also flow from the general benefits, including:

• Cost savings resulting from improved efficiency and productivity;

• Favorable insurance premiums relative to the market.

1 - 4 Definition of Terms Used

Accidents means incidents involving injury or damage to life the environment the ship or its cargo.

Administration means the government of the state whose flag the ship is entitled to fly.

Bulk carrier means a ship which is constructed generally with single deck, top-side tanks and hopper side tanks in cargo spaces, and is intended primarily to carry dry cargo in bulk and includes such types as are carriers and combined carriers.

Chemical Tanker means a cargo ship constructed and used for the carriage in bulk of any hazardous products.

Company means the owner of the ship or any other organization or person such as the manager or the bareboat charterer who as assumed responsibility for operation of the ship.

Agent means a person having the expertise or implied authority to represent or act on behalf of the owner/manager when the vessel in port.

Disbursement means a careful and accurate account of all moneys expended on behalf of the ship whilst in port together with all receipts or vouchers kept by the Master.

Quality means the totality of features and characteristics of an entity that bear on its ability to satisfy stated or implied needs.

Quality Assurance means all the planned and systematic activities implemented within the quality system and demonstrated as needed, to provide adequate confidence that an entity will fulfil requirements for quality.

Quality System means the organizational structure, responsibilities, procedures, processes and resources for implementing quality management.

Quality Surveillance means continual monitoring and verification of the status of an entity and analysis of records to ensure that specified requirements are being fulfilled.

Internal SMS Audit means a systematic and independent verification process carried out by the company as port of its management function to determine whether the SMS activities and related results are in compliance with the SMS.

International Safety Management Code means the international Management Code for the Safe Operation of ships and for pollution prevention.

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

Non-Conformity means a deviation from the requirement specified in the SMS, or an error or any identified lack of a plan or instruction for a key shipboard operation, which could endanger the safety of people, the ship, its cargo, and the environment.

Mobile Offshore Drilling Unit means a vessel capable of engaging in drilling operations for the exploration of the resources beneath the seabed such as liquid or gaseous hydrocarbons, sulphur, or salt.

Designated Person Ashore (DPA) means a person or persons ashore with direct access to highest level of management and who has the responsibility and authority to monitor the SMS.

Safety Management System (SMS) means the policy, procedures and instructions, the responsibilities and authorities, lies of communication between ship and shore and audit systems, all written down to ensure conformity with the Code.

Safety Management Audit means a systematic and independent examination to determine whether the SMS activities and related results comply with planned arrangements and whether these arrangements are implemented effectively and are suitable to achieve objectives.

Safety Management Certificate (SMC) means certificate issued by or on behalf of the Administration to a ship certifying conformity with the Code.

Document of Compliance means document issued to the company by, or on behalf of, the Administration certifying conformity with the code.

Verify means to investigate and confirm that an activity or operation is in accordance with a specified requirement.

1 - 5 The Concept of the ISM Code

International Safety Management (ISM) Code is a worldwide management code that takes up safe operations and pollution prevention and places new rules and regulations about safety and environment pollution.

ISM Code can be grouped under four headings;

a) Management
b) People
c) Ship and Equipment
d) Procedures

a) Management

The duties of company management related with the ISM Code are to develop, implement and maintain an Efficient Safety Management System both onshore and onboard their ships.

There are some aspects of ISM Code related with management. These are;

• The development of the company policy in relation to safety and protection of the environment,

• The written definitions of the responsibilities and authority of each person ashore and onboard ship, with regard to safety and environmental policy,

• The preparation, distribution and periodic updating of a documentary system, in the form of procedures, plans and instructions,

• The periodic review of the effective operation of the implemented system,

• The monitoring of the actions implemented in order to improve safety in the company, on the basis of actual experiences.

b) People

The aspects of ISM Code related with people are;

• Providing communication between crew members,

• Motivation of personnel,

• Providing training of personnel (both crew and onshore employees) to prevent errors and non-conformities,

• Giving necessary information to crew members about work distribution and responsibilities of personnel.

c) Ship and Equipment

The main points of the ISM Code related with the ship and equipment are;

• Development of a preventative maintenance program to minimize risks of breakdowns and s, but also to give the seafarer the possibility of controlling his work environment.

• Identification and periodical inspection of all the equipment and systems considered as critical for the safe and effective operations of the ship.

• Necessary inspection and control of instruments and materials which provide information on the operational condition of the ship.

d) Procedures

The important point of the ISM Code relating to procedure are;

• Preparing all the operational and organizational procedures for ships to implement its mission within the context of company's safety and environmental protection policy.

• Maintenance analysis and handling of non-conformities observed during controls.

• Maintenance of operational action plans which enable personnel to manage all predictable situations.

1 - 6 ISM Code Requirements

ISM Code requirements are summarized below:

Objectives of the Code:

The objectives of the code are to guarantee the safety at sea by avoiding s and loss of human life, and to prevent pollution in the marine environment

Safety and Environmental Protection Policy:

Company should control and continue this policy by personnel working both ashore and onboard.

Company has to make a safety and environment protection policy by using these aims;

• providing safety at sea,

• preventing injuries and loss of human life,

• preventing environmental and physical harms that cause especially environment pollution.

Company Responsibilities and Authority

The company should define and document the responsibility, authority and interrelation of all personnel who manage, perform and verify work relating to and affecting safety and pollution prevention. The company is responsible for insuring that adequate resources and shore-based support are provided to enable designated person or persons to carry out their functions.

Designated Person(s)

For the purpose of managing ships safely and providing connections between ships and company, the company should assign an ashore personnel that get in touch with Company management. Responsibilities of Designated Person or Persons should cover safe ship management and prevention environment pollution, and responsibilities of Designated Person(s) should also cover all directions that can be controlled ashore.

Master's Responsibilities and Authority

Company must be clearly defined the duties and responsibilities of the Master:

• Implementing the company's safety and environment protection policy,

• Encouragement of crew in the observation of this policy,

• Controlling the adaptation of special requests,

• Giving necessary order and instructions clearly,

• Inspecting the Safety Management System (SM'S) and reporting lack to company headquarter,

When required, company should enhance the responsibilities of the Master.

Resources and Personnel

• Master should know everything related with the Safety Management System and every kind of support should be given to the Master.

• Competence of national and international regulations of every ship should be provided.

• Necessary instructions should be determined, registered and giving authorized person before voyage. New personnel should be informed about safety and environment protection.

• Necessary education courses should be determined and continuity of training about Safety Management System should be provided, such training should be given to all personnel.

• Information about Safety Management Systems should be given in understandable and clear way by company to all ship personnel.

Development of Plans for Shipboard Operations

Company should prepare safety of ship and prevention pollution practices. The duties about this subject should be identified related personnel.

Company should establish procedures for the preparation of plans and instructions including checklists for key shipboard operations concerning the safety of the ship and the prevention of pollution.

Emergency Preparedness

The company should establish procedures to identify, describe and respond to potential emergency shipboard situations and should establish programs for drills and exercises to prepare for emergency actions.

Fighting fire and related methods should be determined, identified and described. Necessary measures should be taken in ships by thinking of probable situations.

Reports and Analysis of Non-Conformities, and Hazardous Occurrences

a) Reports

The SMS should require the Master to report the following to the designated person(s) ashore:

• Accidents

• Hazardous occurrences

• Non-conformities within the SMS

• Suggested modifications and improvements to the SMS

When these reports are received by the designated person(s) ashore, they should be reviewed and evaluated by the appropriate level of management to determine corrective action and to ensure that recurrences are avoided.

• Amendment to existing SMS procedures and instructions

• The development of the new SMS procedures

b) Analysis

The company should have a system for recording, investigating, evaluating, reviewing and analyzing reports and for taking action as appropriate.

The evaluation of reports may result in:

• Corrective action being taken

Distribution of experiences throughout the company

Maintenance of the Ship

Procedures should be established which ensure that maintenance; repairs and relevant surveys are carried out in a planned, safe and timely manner.

Ship should be controlled and evaluated according to related rules and laws. So that:

• Necessary inspections should be implemented in specified periods,

• If known, abnormal situations and its reason should be reported,

• Proper amendment exercises should be done,

• Indexes related with this exercises should be registered.


Company should provide all documents and their continuity related with the Safety Management System.

Company should do such things related with documentation:

• Validity documents should be found in necessary places.

• Changes in documents should be inspected and these changes should be approved by Designated Person(s)

• Null documents should be canceled.

• Documents related with ships should be placed in ships.

Company Verification, Review and Evaluation

• Competence of the Safety Management System should be appraised and if necessary, rearranged, according to company's rules and laws. These evaluations should be done in specified periods.

• Audits and corrector studies should be done according to specified methods.

• Personnel who makes audits, should be selected out of controller persons.

• Results of audit and control should be said and reported to all related personnel.

• Corrector studies related with deficiencies should be implemented in right times.

Certification, Verification and Control

The ship should be operated by a company, which is issued a document of compliance relevant to that ship. A document of compliance should be issued for every company complying with the requirements of the ISM Code by the Administration, by an organization recognized by the Administration or by the government of the country. This document should be accepted as evidence that the company is capable of complying with the requirements of the code. A certificate, called a Safety Management Certificate, should be issued to a ship by the administration or organization recognized by the Administration.



2 - 1 The Implications of the ISM Code and STCW for the Ship Manager

The purpose of this article is to explore the impact of the code and STCW in relation to the ship manager in particular.

2 – 1 - 1 Shipman and crewman

Ship owners and ship managers might face increased responsibilities as a result of the ISM Code, the code was perceived to have no significant bearing on the balance of liabilities as between the two parties. Therefore in the absence of clear and justified need for a change as a result of the ISM Code. It was agreed to make no changes in respect of liabilities as between the parties.

However, it was considered important to clarify which party should assume direct responsibilities under the ISM Code. Therefore, in line with the ISM Code, when the managers undertake the vessel's technical management they shall be considered “the company” as defined in the Code and thus assume these duties and responsibilities.

In other words, the significance of those amendments relating to the ISM Code that have been made to both contracts are that they clarify the fundamental issues that arise under the Code, namely which company has taken over the duties and responsibilities that it imposes. It is of critical importance that this is clearly identified, for obvious reasons. Whilst a technical ship manager may assume these responsibilities, a crew manager would not. However, he will be equally concerned to identify the company responsible for implementing the Code because it is that company's safety management system that the crew manager's crew will have to operate.

For instance, a key aspect of both the Code and STCW is that there should be effective procedures in place to ensure that new crew members are properly familiarized with their duties prior to sailing. Depending on the terms of his contract, a failure on the port of a crew manager to ensure that the relevant familiarization process is completed could well result in delay to the vessel and potential exposure of his pail to liability to the owner.

One of the principal concerns of ship managers when considering the potential impact of the Code was that their exposure could be increased to a greater extent than that of the owners, by virtue of the potential operation of the Code in particular in the context of limitation of liability and especially under the 1976 Limitation Convention. The concern (which merits careful consideration) arises in the following way.

The 1976 Convention provides that 'a person liable shall not be entitled to limit his liability if it is proved that the loss resulted from his personal act or omission, committed with the intent to cause such loss or recklessly and with knowledge that such loss would probably result.

This has become standard wording in a number of contracts, for example the responsibility clause in the BIMCO SHIPMAN and CREWMAN management contracts. If, therefore, a manager has been sufficiently reckless to enable a third-party claimant to break the right the limit the same conduct will have the effect of barring his indemnity claim against owner under the management contract. (This would not necessarily happen if the relevant limitation regime were that of the 1957 Limitation Convention- it is possible to envisage circumstances where a ship manager's conduct could give rise to a third party being able to break limit without jeopardizing the ship manager's right of indemnity against the owner.)

On reflection, the concern may be less significant for the following reasons. Firstly, it is important to remember that the test is one of almost deliberate culpability. The alter ago, or head man of the company, must be shown to have actively intended the loss or to have acted recklessly and with knowledge that the loss would probably result.

Secondly, provided that the designated person is not himself the head man of the company, the fact that he has knowledge, through the reporting and monitoring systems required by the Code, will not of itself affect matters.

Thirdly, the Designated person's reporting obligations do not necessarily mean that every defect will actually be reported to the highest level of management. All that required is that he should have access to it. The claimant would still, therefore, have to establish that the highest level of management had actual knowledge of the relevant defects.

Fourthly, even then the claimant will have to show that the headman had knowledge, that the loss would probably result; and the word 'probably' does not just mean the possibility of damage. Probability means that something is likely to happen. This test also has to be considered subjectively; in other words the knowledge must be that of the particular person concerned, not, for instance, a normally prudent owner.

Viewed in that light, the ship manager may be able to rest more easily in his bed provided, of course, that he has proper systems in place and does indeed ensure that the reports and recommendations of the designated person are not ignored.

2 – 1 - 2 Commercial Conflict

This however, throws up another problem, namely the practical question of commercial conflict of interest. Where the manager is operating the safety management system and carries the responsibility for the implementation of the Code, a failure on his part could result in, for instance, SMC being withdrawn and potential liability on his part to the owner under his contract.

To the extent that the owner has distanced himself from the management, there is the risk that he will have divested himself of responsibility, whilst retaining control through the budgeting process, thus potentially leaving the manager in a very difficult position.

The opposite situation is equally difficult. In theory, the manager would have to be given unlimited hinds to carry out whatever he or more particularly his designated person considered to be necessary without regard to the commercial realities of operating the ship profitably. Of course, in practice that conflict has always been there and is resolved by means of the manager's having to bear in mind the need to keep his owner happy and a continuing customer. By sharpening the focus on these issues, however, the Code will not make the management of this relationship any easier. The positive spin on this, from a manager's point of view, is that the more effective and successful he is at balancing the need to comply hilly with the Code with financial pragmatism, the more business he will get.

The standard of management introduced in 1988 with the first SHIPMAN contract was one of sound ship management practice. Whether that is the case or not, the introduction of the ISM Code and STCW has now provided a benchmark by which this standard can be assessed. Remember, however, that the Code only sets out a minimum, not maximum, standard, and in many ways it does little more than outline systems and practices that first-class ship managers already have in place.

Perhaps it is for this reason that the extension of the application of the Code in July 1998 proved less dramatic than had been anticipated. The good ship manager will have implemented the systems long ago and will have been operating his ships accordingly whilst the bad ship manager will not have. At least the Code should make it easier to distinguish between the good and the bad.

2 – 2 The ISM Code - Impact an European Bulk Ship Owners

The entry into force of the ISM Code marks a significant change in emphasis for maritime regulations. Since 1 July 1998, passenger ships, tankers, bulk carriers and high-speed passenger ships have to comply with the ISM Code.

Given the current emphasis on bulk carrier safety the ISM Code will have a significant impact for European bulk ship owners. Port State Control in Europe as well as in most other is two additional elements that will reduce or eliminate sub-standard shipping at least in Europe.

Responsibilities are clearly defined , operating procedures have been developed and implemented and the overall documentation of safety critical processes has resulted in better preparedness for s and a greater transparency of the shipping operation.

2 – 2 - 1 Bulk Carrier Shipping

The inclusion of bulk carriers in phase one of ISM compliance (July 1, 1998) clearly shows the importance placed on bulk carrier safety and expectations from ISM.

In the time 1983 and 1997, a total of 73 bulk carriers was lost due to know or suspected structural failure. At least 40 more ships suffered serious structural damage. 40% of these s are known to have been connected with water ingress to the foremost hold of the vessel.

Particularly disturbing is the fact that many of these s involved the loss of the ship together with the total crew.

In the aftermath of this large number of bulk carrier casualties a series of corrective and preventive measures has been adopted, both regarding the ship and the ship operation.

These cover all areas of the bulk ship trade- from modifications to the ship structure, the maintenance programs, procedural requirements for the loading and discharging all the way to the early implementation of a Safety Management System (SMS) within the ISM Code and training requirements for officers and ratings in the amended STCW Convention areas makes ISM compliance a condition of port entry and will specifically verily the implementation of the ISM Code requirements. One of the positive effects is, that the likely pressure on sub-standard operators will improve the competitiveness of European bulk ship owners.

The entry into force of the ISM Code has a number of implications besides compliance that are likely to have a significant impact for bulk ship owners. The continuous development and improvement of a safety culture, the clear definition of responsibilities, the additional communication and documentation requirements as well as the concept of an increased self-regulation are the primary factors in this development.

The pre-requisites and the likely results of these new developments are addressed and existing problem areas are identified leading to a prognosis of the impact of the ISM Code in the future.

The complexity of shipboard technology and operations has increased considerably in recent years. The intricate interrelations between ship design, construction, maintenance, ship management and ship operations makes it difficult to achieve improvements in safety by addressing anyone of these areas separately.

The majority of s and incidents in shipping can be attributed to human and organizational failures. The importance of the human element in ship operations has resulted in a number of initiatives by the IMO, maritime administrations, classification societies and shipping companies.

The implementation of the ISM Code and the 1995 amendments to the International Convention on Standards for Training, Certification and Watchkeeping for Seafarer (STCW 95) are probably the most significant regulatory changes that address operational, management and qualification issues in the maritime industry.

Concurrently, the strong emphasis of the European Commission on safer seas and the increased enforcement of maritime regulations through regional Port State Control initiatives classification societies have adopted class rules for new and existing bulk carriers which include the mandatory strengthening of bulkheads for possible al floating of cargo holds. These new requirements for existing bulk carriers are the first case where retroactive increases in strength standards have been introduced by IACS.

Mechanical damage, fatigue damage as well as deformations and ing of structural components of the holds have been attributed to a large part to improper loading and unloading procedures as well as neglected maintenance, IAOS research has shown that there are serious cargo handling risks from such factors as:

• Poor ship to shore communication

• Lack of pre-planning,

• Ignoring loading plans,

• Improper load distribution,

• Overloading by high capacity systems,

• Physical damage from heavy grabs during discharging.

Eliminating sub-standard shipping will be the primary goal of joint efforts of Classification Societies, ports and terminals, Port State Control and charterers. The increased focus on the enforcement of regulatory requirements together with the ISM Compliance for bulk carriers starting from l July 1998 is expected to bring about a substantial further improvement in safety for bulker shipping.

2 – 2 - 2 European Maritime Policy

Maritime safety and pollution prevention has been given a distinct priority within the policies of the European Community.

Particularly the issue of sub-standard operators, who undermine safety at sea and obtain an unfair competitive advantage is being addressed. In this drive the European Community are focusing their attention on Port State Control one the one hand and Classification Societies on the other.

Port State Control with their unannounced spot checks directly affects ship operators. A targeting system similar to the one set up by the US Coast Guard will be directed specifically to problem ships and problem operators.

Compliance with the ISM Code will be enforced by the Port States of the European Community in close cooperation with the USA, Canada, Australia, and several Asian countries detaining or banning non-ISM complying ships from their ports.

The ISM Code is very similar in structure and underlying principles to the requirements for the certification of quality systems as defined in the ISO 9000 series, expected that it provide safety and environmental protection criteria, whereas ISO allows the company or operator to set its own standards.

The ISM Codes contains a set of formal auditing and certification requirements. A Document of Compliance (DOC) is issued to shipping companies and a Safety Management Certificate (SMC) issued for each ship following a review of the Safety Management Handbook and a successful implementation audit in the company offices and onboard. An ongoing functioning of the SMS is ensured through annual and renewal audits.

Next to provisions that ensure the proper functioning of the SMS, all areas that are instrumental to safety and environmental protection have to be addressed. These include:

• Role and responsibility of the Master,

• Resources and personnel,

• Key shipboard operations,

• Emergency procedures

• Maintenance.

Although these requirements represent for the most part common practice in shipping, experience gathered so far clearly indicates that significant efforts have to be made by the companies to successfully implement a SMS.

The ISM Code has a number of undeilying concepts and intentions that are likely to have strong implications for shipping in the fliture. Some of these aspects will be discussed in more detail;

The ISM Code As a Mandatory Requirement:

The Doe and SMC are mandatory certificates required under the SOLAS Convention. As with all other certificates, such as the International Cargo Ship Safety Equipment Certificate, International Oil Pollution Prevention Certificate, valid DOC and SMC have to be available for the company and for the ship.

Technically speaking, a ship is not fit to proceed to sea when one of these certificates is not onboard. Primarily port authorities will enforce this. Such a vessel may or won’t be permitted to leave port.

Additionally it does affect the insurance cover. A vessel technically looses all insurance coverage when it becomes clear that she wasn't fit to proceed to sea at the time of an given the mandatory nature of the ISM Code, these considerations therefore also apply to the DOC and the SMC. This will provide a strong incentive to always carry the necessary ISM Code Certificates.

Consideration of Published Guidelines

For bulk carriers there are a number of published guidelines such as the IACS publications. This includes the interface between the ship, the port and the terminal operators as well as maintenance operations. Insufficient maintenance has been attributed to a large number of bulk carrier losses.

The most discussed impact of the ISM Code is the concept of the Safety Culture in shipping. The ISM Code is intended to initiate a change in attitude and behavior.

An improvement in Safety Culture does not follow automatically from the ISM implementation. it requires a significant and continuous effort by everyone in the company. It requires change in the behavior of individuals as well as clearly defined values for the company. This can be done in three steps:

• Development of greater awareness

• Specification of desired behavior

• Practice of the new behavior

Definition of responsibilities, documentation and communication:

The ISM Code contains detailed and specific regulations concerning communication and documentation concerning all safety relevant activities. This includes communication between the ship and the shore-based office. Although this may be viewed as a source of additional work, it nevertheless brings a significant change to the working practices in the maritime industry.

The system under which risks are insured, and responsibilities for loss or damage to a vessel or its cargo are fixed, has for many years been based on due diligence. This means that the owners or operators were not held liable, if it was shown that the owner or its agent exercise due diligence at the beginning of the voyage to make the vessel seaworthy.

Through the definitions of the communication links and responsibility chains up to the highest level of management the owners and operators will from now on find it harder to provide this due diligence. A working SMS should in fact ensure that the management is informed of all safety related problems and should thus be in the position to take preventive action whenever necessary. This required level of knowledge and awareness can also make it more difficult for an owner to limit liability.

The ship is therefore no longer a separate entity once she has sailed, but has to be viewed as one link in the transport chain, with the company assuming responsibility for all aspect of the operation at all times.

Industry self-regulation

The ISM Code relies on industry initiative for an effective functioning. The true management of a safety management system can largely be establish through the use of internal audits and defined procedures.

Self-regulation does offer several advantages. The implementation and monitoring of the individual requirements is left to the company. Solutions can therefore be tailored to the specific needs of a company based on defined safety and quality standards. Only the functioning of the overall system is monitored through a third party either on a voluntary or mandatory basis.

Successfully industry wide implementation of the ISM Code and the safety culture it promotes, may ultimately allow greater flexibility than is possible under the regulatory compliance regime used to certify ships today.

2 – 2 - 3 Conclusion

In conclusion, the different effects and implications of the ISM Code as discussed are more or less linked to a change in culture.

The concept of a safety culture can therefore be placed at the center of imminent changes to shipping scene introduced with the ISM Code.

Ship Classification Societies have been aware of the importance of quality and safety system for ship and ship operations for many years.

Owners, operators and the ships' crews will have to go through a substantive change in attitude and in the understanding of the role of the individuals on board.

A double hull design fir a tanker, for example, is useful only when something goes wrong.

The ISM Code will bring a strong focus on safety and quality of bulker shipping operations.

This will finally assists the quality operators and will eventually ensure a competitive advantage for them as compared to their sub-standard competitors.



The Ism Code Application have began in July 1998 for bulk ships and tankers all around the world for the purpose of providing cleaner and more reliable world with less sea s.

Before the application begins, sorrows, expectations, probable distresses and suspicious and uncertain situations of the system, have been tried to argue. When the system is studied carefully, some problems have to be solved, can be showed but solutions of this problems still cannot be solved.

There are institutions that can be directly covered in the ISM Code Contents. These are:

a - Shipowners and managements

b - Crewmen

c - Flag States

d - Port State Institutions

e - Class Institutions

f - Insurance Companies and P&I Clubs

g - Ship Charterers

h - Consultant and Advocacy Institutions

Impacts of ISM Code to these institutions can be summarized below:

a - Shipowners and Management:

This system is established by the main concept of “Good ships exist by the result of good management.” So that shipowners and ship managers should accomplish land management organizations by the people which have enough shipping experiment and should provide them to work coordinately between each other.

After they establish such management, they should equip their ships by qualified and experienced personnel. After this procedures they should provide ships' technical equipment, should support their ships by necessary and enough spare parts and equipments. Among all this procedures they should record indexes for the purpose of controlling the convenience of the system.

Armatures, which cannot adapt these identified standards, cannot take up a position in the sea trade sector. This situation eliminates the sub standard ships from the transportation sector. So that, standardized ships carry their cargoes with increasing freight rates. That is to say expenditures that is done now, will return to armatures.

b - Crewmen:

Unqualified and unstandardized ship personnel cannot find occupation in ships. Because of there are needs qualified and experienced personnel, the remunerations of this personnel will naturally increase.

c - Flag States:

Because of the ISM Code Certification Authorization is given to the flag states, staff that work in the system of related units should be constituted. After that shipowners should be educated about the importance of the system and also shipowners should be provided and forced implementation of the ISM. Code requirement. in conclusion their sub-standard vessels should be taken from voyages, otherwise shipowners will be punished by authorized institutions.

d - Port State Institutions:

The most important responsibilities and authorities are given to the Port State institutions in the ISM Code practices. This situation exists difficult conditions to these institutions. In conclusion there will be some doubts about the practicability of the system.

According to the ISM Code application, sub-standard vessels will be kept until possession of necessary certificates and implementation necessary conditions. But the occupied places of these kept vessels will effect the ports' trade activities negatively, because of this, system won't be carried out as it is planned.

In this situation in European Countries, Port State Control Institutions make necessary controls and then allow them to go voyage, even if there is not ISM Certificates. Allowing the vessels to go voyage without Safety Management Certificate, is to invite the sea s. “If there is an , who will be responsible?” here is the most important problem of the system.

After 1 July 1998, all ships that haven't Safety Management Certificates won’t be allowed to go voyages.

e - Class Institutions:

ISM Code imputes various responsibilities to the class institutions too. Because of land management and the shipowners' vessels are controlled by the Class Institutions, ISM Code gives new responsibilities and duties to the Class Companies.

Because Port State Control Companies are controlled by Class Institutions. Arrested vessels because of being unfavorable to the ISM Code Requirements, their companies terminate their Class Institutions' prestige worldwide. Thus Class institutions that have the authority giving ISM Certificates should be careful by thinking of their own image.

f - Insurance Companies and P&I Clubs

Insurance companies and P&I Clubs started to eliminate the vessels from insurance content without necessary DOC and Safety Management Certificate after July 1998.

g - Ship Charterers:

Ship charterers and shipowners started not to give cargo to vessels that haven't Safety Management Certificates and they add related clauses to their Charter Parties.

h - Consultant and Advocacy Institutions:

They will be in the system related with events, damages, s and indemnity actions.
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