Pelorus Maritime Education

The structure of the ISM Code outlines the steps of a safety management system. Paragraph 1.2.3 of the code is significant as it states the following:

The Company’s safety management objectives should, inter alia, continuously improve the safety management skills of personnel ashore and aboard ships, including preparation for emergencies related to both safety and environmental protection.

Someone may argue that the above paragraph is not legally binding concerning the Company’s other management or commercial activities, such as those of a ship management company. However, this is a misleading perception, since in a high-risk industry, commercial decisions are likely to affect the safety of a ship, its crew, and/or the marine environment.

Paragraph 2 states that senior managers sign a safety policy as evidence of their commitment to ensuring a safe environment on their ships. As a common practice, this policy is to be posted both ashore and onboard as a notice to all personnel.

Paragraph 3 of the code outlines the Company’s responsibilities and authority. This constitutes an essential component of any management system, as it provides each employee with a clear job description. Paragraph 3.3 of the code contains the following text:

3.3 The Company is responsible for ensuring that adequate resources and shore-based support are provided to enable the designated person or persons to carry out their functions.

This statement links the company’s responsibility to provide resources to DPA, Master, and other Personnel as required in the other three requirements (4, 5, and 6, respectively).

Furthermore, Paragraph 4 of the code introduces the role of a Designated Person Ashore (DPA). This person is responsible for ensuring that adequate resources are provided onboard the ship(s) under their responsibility. It is the first time that a maritime regulation describes the position of an employee within a ship management company ashore. Similarly, Paragraph 5 of the code describes the management authorities and responsibilities that a shipmaster must have and is authorised to exercise.

In Paragraph 6.2, the following text can be read:

The Company should ensure that each ship is manned with qualified, certified, and medically fit seafarers in accordance with national and international requirements.

Therefore, it describes elements of a human resource management system for the administration of seafarers onboard ships.

In Paragraph 7 there is a requirement for the Development of Plans for Shipboard Operations. This is the most extensively documented requirement in SMS, as operations encompass several tasks, including navigation, cargo handling, and bunkering. The key element to avoid unnecessary documentation for a company is to integrate the SMS with existing industry publications and codes. For instance, a direct reference to the IMBC code for bulk carriers could be used instead of repeating the full text in SMS.

Essential is Paragraph 8 about Emergency Preparedness. This statement is associated with human resource management since shore-based support should include knowledge availability from individuals ashore. Although such individuals may be consultants bound by contracts, it is often argued that in the event of an emergency, the best option for a ship management company would be to have those individuals as employees.

Paragraph 9 is titled Reports and Analysis of Non-conformities, Accidents and Hazardous Occurrences. The purpose of this paragraph is twofold: self-monitoring and self-correction. Like any management system, SMS is prone to errors in design and execution. That is acceptable, as an effective information flow system has been established, allowing for proper monitoring and corrective actions. The essential issue is the timely delivery of an effective solution from the Company.

The maintenance of the Ship and Equipment is a requirement to be documented in Paragraph 10. This paragraph is analysed in a different section of this book. However, it should be noted that the numerous pieces of machinery onboard can be efficiently managed with streamlined documentation procedures.

Paragraph 11 is about Documentation. The requirement should comply with flag state requirements and best practices adopted by the maritime industry. Excessive documentation may result in an inefficient and counterproductive paper exercise.

Eventually, Paragraph 12 is titled “Company Verification, Review, and Evaluation”. It describes the most effective management tools, including audit and management review, that should be carried out at least annually. These are internal actions, thereby providing the Company with an opportunity for continuous improvement. Limitations may include a lack of auditor authority or inadequate review processes.

Part B Certification of the ISM Code describes the certification process of a ship management company. An externally approved organisation, such as a classification society, designated by the flag state of a ship, should conduct audits at specific intervals. Upon successful results of a shipboard audit, a Safety Management Certificate (SMC) will be issued to the ship. Similarly, a Document of Compliance (DOC) will be issued for each type of ship and/or flag to the ship management company.

By design, the ISM Code supports and encourages the development of a safety culture in shipping. The content of an SMS will therefore be influenced by the Company’s commitment, values, and beliefs, which often cannot be mandated through formal regulatory procedures. The Company should write the SMS from scratch; however, it may tend to adopt overly prescriptive solutions that fail to reflect the Company’s actual structure and practice. Such a prescriptive approach may contradict the spirit of the ISM Code, which emphasises the need for systems tailored to the unique structure and operations of each Company.