Ship safety continues upward trend but potential troubles ahead

According to AGCS' Safety and Shipping Review 2013, these figures show that the maritime industry continues to improve its risk management and safety standards. However, it warns that current cutbacks due to the global economic downturn could impinge upon safety levels going forward. The reported worldwide loss figure of 106 for the 12-month period to 25 November, 2012 was up from 91 in 2011. The year was marked by two high profile passenger ship accidents with the loss of the Costa Concordia off Italy on 13 January, the largest loss in terms of ship size at 114,137 gross tons.hideThis was followed by the loss of ferry Rabaul Queen off Papua New Guinea on 2 February. Both caused multiple fatalities. But the majority of losses were cargo (51) and fishery vessels (12) that made up 61% of losses, despite making up approximately 45% of the average world fleet over this period. Due to the concentration of commercial shipping in geographical areas, nearly two out of three of those total losses (58%) occurred in one of four maritime regions: South China, Indo China, Indonesia and the Philippines (with 30 vessels lost, twice as many as any other area); East Mediterranean and the Black Sea; Japan, Korea and North China; and the British Isles, North Sea, English Channel, and the Bay of Biscay. The most common cause of loss was foundering (sinking or submerging) that was responsible for nearly half of losses (49%). This was followed by wrecking/running aground (22%). Collisions involving vessels accounted for a relatively small number of losses (6%), even allowing for late reporting of losses that may still come to light. The 2102 loss figures 'illustrate that the maritime industry has continued its commitment to improving maritime safety, developing safety initiatives and regulations throughout the year, both reactively and proactively," said AGCS in its review. "The industry is well served by safety-related regulations," it continued, "but with tighter operating budgets in light of the global economic downturn there are concerns that cuts to maintenance and training funding will impact safety." Compounding the problem, the difficult operating environment has also led to low freight rates for some operators, sometimes below break-even. "For some commercial ship-owners, especially in the hard-pressed bulk cargo and tanker sectors, there is little money for maintenance and little money for training," said Dr Sven Gerhard, AGCS's Global Product Leader: Hull & Marine Liabilities. "This shortage of money and funds might cause or contribute to machinery loss or collision," he added. This is a growing safety concern for the industry in the short to medium term commented AGCS. Although there has been a long-term downward trend in losses-driven by technology, training and regulation and a proactive response from the shipping industry to safety improvement-human error remains the core challenge, said the insurer. New maritime regulation is focused on this critical weakness. The Maritime Labor Convention (2006), which comes into force later in 2013, will help improve safety by addressing the welfare and working conditions of seafarers. In general, passenger vessels have been the focus of attention throughout the year with both the International Maritime Organisation (IMO) and the cruise ship industry taking action to tighten regulation and continuously improve operational practices, noted AGCS. Major shipping companies have initiated self-regulation initiatives post-Costa Concordia, with the Cruise Lines International Association and the European Cruise Council partnering up to lead the industry-wide voluntary adoption of policies that go beyond international regulatory requirements. In addition, moves previously pioneered in other industries, such as airlines, or by leading ship owners, are gathering force. For example, greater adoption across the industry of the 'function-based bridge' concept whereby the bridge command structure changes from the traditional captain's sole command towards a 'check and balance' approach. "We see such self-regulation of the industry as the core driver of safety," said Dr Gerhard, who believes that such concepts will soon trickle down to other sectors where passenger safety is paramount. In addition, technological improvements such as the introduction of mandatory Electronic Chart Display and Information Systems (ECDIS) in July 2012 are expected to reduce accidents, but only where properly applied with effective training and management oversight. "Technology is only as useful as the training behind it-and we don't always see this human element keeping up with other advances. What we do see with the best ship owners is a proactive safety management culture, going beyond the minimum standards and running from top to bottom of the organisation. This can really make an impact in improving safety," Dr Gerhard said.

Ship safety continues upward trend but potential troubles ahead

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